ibp300 : sap integrated business planning - advanced configuration - ibp 5.0
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IBP300SAP Integrated Business Planning - Advanced Configuration
PARTIC IPANT HANDBOOKINSTRUCTOR-LED TRAINING
Course Version: 10 Course Duration: 5 Day(s) Material Number: 50132867
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Contents
ix Course Overview
1 Unit 1: Overview of SAP Integrated Business Planning
2
7
Lesson: Describing SAP Integrated Business Planning
Lesson: Describing SAP Integrated Business Planning Applications
19 Unit 2: Planning Area Copy and Merge
20 Lesson: Performing a Simple Copy of a Planning Area
22 Lesson: Performing an Advanced Copy of a Planning Area
23 Exercise 1: Perform an Advanced Copy
31 Lesson: Performing a Planning Area Merge
33 Lesson: Describing SAP Integrated Business Planning Architecture
39 Unit 3: Key Figure Functions
40 Lesson: Implementing Disaggregation
43 Exercise 2: Incorporate Disaggregation Methods in SAP
Integrated Business Planning
49 Lesson: Troubleshooting Activation Errors
55 Exercise 3: Activate a Planning Area
59 Lesson: Using Helper Key Figures
61 Exercise 4: Create a Helper Key Figure
68 Lesson: Configuring Change History
71 Exercise 5: Configure and Use Change History
75 Lesson: Creating Snapshot Key Figures
77 Exercise 6: Create a Snapshot Key Figure
84 Lesson: Positioning SAP Integrated Business Planning in a System
Landscape
95 Unit 4: Currency Conversion
96 Lesson: Converting Currency
97 Exercise 7: Configure Currency Conversion
114 Lesson: Implementing SAP Integrated Business Planning
121 Unit 5: UOM Conversion, Implementation Blueprints, and Price Conversion
122 Lesson: Creating Time Independent Key Figures
124 Lesson: Converting Units of Measure (UOM)
127 Exercise 8: Configure UOM Conversion
145 Lesson: Developing a Blueprint
153 Lesson: Converting Price
155 Exercise 9: Configure Price Conversion
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Unit 6:
Lesson: Setting Up SAP Jam User Onboarding
SAP Jam User Onboarding
Unit 7: Attribute Transformations
Lesson: Performing Attribute Transformations
Exercise 10: Perform Attribute Transformations
Lesson: Describing Performance and Sizing
Unit 8: Advanced Attribute Transformations
Lesson: Configuring Last Period Aggregation
Exercise 11: Configure Last Period Aggregation for Inventory
Target Quantity
Lesson: Creating and Comparing Scenarios
Lesson: Using Time as a Dimension for Key Figures
Lesson: Exporting and Importing Planning Areas
Lesson: Configuring Split Factor Calculations
Exercise 12: Configure a Split Factor Calculation with UOM
Conversion
Unit 9: Planning Operators
Lesson: Purging Change History (PCH)
Lesson: Purging Key Figure Data (PURGE)
Exercise 13: Purge Key Figure Data
Lesson: Creating Copy Operators
Exercise 14: Create a Copy Operator
Lesson: Creating Advanced Simulation Operators
Exercise 15: Create an Advanced Simulation Operator
Lesson: Creating Group Operators
Exercise 16: Create a Group Operator
Lesson: Managing Global Configuration Parameters
Lesson: Creating an ABC Classification
Exercise 17: Set Up ABC Classification
Unit 10: Planning View Formatting
Lesson: Formatting Reports
Exercise 18: Use EPM Formatting
Lesson: Linking the IDs and Descriptions of Attributes
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Course Overview
TARGET AUDIENCEThis course is intended for the following audiences:
• Application Consultant
• Business Process Architect
• Business Process Owner/Team Lead/Power User
• Program/Project Manager
• Solution Architect
• Technology Consultant
• User
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UNIT 1 Overview of SAP IntegratedBusiness Planning
Lesson 1
Describing SAP Integrated Business Planning 2
Lesson 2
Describing SAP Integrated Business Planning Applications 7
UNIT OBJECTIVES
• Describe supply chain trends and challenges
• Describe SAP Integrated Business Planning
• Describe SAP Integrated Business Planning for sales and operations
• Describe SAP Supply Chain Control Tower
• Describe SAP Integrated Business Planning for inventory
• Describe SAP Integrated Business Planning for demand
• Describe SAP Integrated Business Planning for supply
SAR40
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Unit 1 Lesson 1
Describing SAP Integrated Business Planning
LESSON OVERVIEWThis lesson describes supply chain trends and challenges, and provides an overview of SAP Integrated Business Planning.
LESSON OBJECTIVESAfter completing this lesson, you will be able to:
• Describe supply chain trends and challenges
• Describe SAP Integrated Business Planning
Supply Chain Trends
Volatile markets and growing logistical complexity are major trends in the market.
Volatile Markets
The following factors lead to increased volatility, but at the same time they represent extensive growth opportunities for businesses.
• Market power is with the end consumer.
The financial crisis in 2008 and 2009 changed the market significantly with a shift ofmarket power to the end consumer.
• The Millennial generation asks for individualized products.
The Millennial generation is connected, and wants individualized products and servicesthat are delivered immediately.
• Emerging middle class in emerging markets.
An emerging middle class that is growing to 5 billion people is resulting in a globalrebalancing across the world.
Today's end consumers research and purchase products in real-time, and expect them to be delivered quickly.
Growing Logistical Complexity
Growing logistical complexity is a result of volatile markets. Constant changes require flexibility in distribution networks. At the same time, companies are introducing speedy replenishment services as a strategic differentiator compared to their competition.
The following are examples of replenishment services:
• An automotive service parts wholesaler guarantees their dealers and end-customers a 30minute replenishment cycle.
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Lesson: Describing SAP Integrated Business Planning
• Amazon has introduced a new distribution center strategy, which allows it to deliverproducts ordered on its Web site within 2 hours (in California).
• Retailers such as Walmart have introduced processes to deliver directly from the closeststore to their customers, when orders are placed on-line. This requires excellentreplenishment processes between the distribution centers to avoid running out of stock.
Businesses are transforming their supply chains into demand networks, with the focus on the customer's demand and the partners that are involved in fulfilling the demand.
Supply Chain Challenges
Supply chains must be agile to solve complex problems in real time. Planning models are often slow and abstract, and are disconnected from execution systems. The disconnect between planning and execution results in a break in the closed loop process.
The following are some of the complex issues faced by supply chain professionals:
• Gathering the information that they need to make decisions
According to an Aberdeen study, only 20% of supply chain professionals have theinformation they need within a day. Eighty percent say that they either do not have theinformation, or that the information is not available on time. Most decisions are madewithout any support from supply chain management solutions, but based on experienceand intuition of supply chain professionals. Furthermore, the decision-making process isslow and often based on outdated information, which introduces sources of error into theplanning process. Reaction time to major events is also compromised, often drivingorganizations to panic, resulting in error.
• Improving planning results
Short-term forecast accuracy is a huge challenge for companies and forecast errorsdirectly lead to access inventory or stock outs. Traditional forecasting algorithms arechallenged because, while are they are good for mid-term results, they are not accurate forthe short term.
• Aligning operations with planning
How do you make sure that the right inventory is at the right place at the right time tomaintain your customer service levels? Uncertainty about future demand and supplierreliability increases the complexity of modern enterprise supply chains.
To solve these complex issues, businesses must transform their supply chains into demand networks.
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Sales and operations planning is too abstract and infrequent
Supply planning cannot react to end-customer demand
V________________ )
Variability of supply chain is ignored by models
Forecasting misses short term demand
j Figure 1: Supply Chain Challenges
Competitive Advantage
Companies can meet the challenges of complexity and volatility, and gain a competitive advantage.
To differentiate your services, you can do the following:
• Be agile and benefit from changes in demand
• Be responsive to customer expectations
• Capitalize on trends with new products
• Have end-to-end visibility and monitoring
• Enter new markets and capture new customers
• Maintain high customer loyalty
Businesses cannot avoid surprises, but the ability to react quickly and accurately is the true measure of the organization's competitive advantage.
SAP Integrated Business Planning Solution
Integrated business planning is the process of addressing market challenges, risks, and opportunities.
Balancing demand and supply typically comes to mind for integrated business planning. However, integrated business planning extends across the supply chain, integrating demand and supply planning with financial planning, and linking a strategic plan with operational execution.
A system rich in planning functionality is underserved if the plan cannot be executed. The figure, SAP Integrated Business Planning Solution, shows where the SAP Integrated Business Planning solution fits in the overall business landscape. SAP Integrated Business Planning connects strategy with execution.
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Lesson: Describing SAP Integrated Business Planning
Scenario plans
Constrained revenue Margin projections
Strategic
SAP Integrated Business Planning on
HANA
Opportunities,Promotions
AOP, Finance plan
Scenario plansShort term
Constrained revenue Margin projections
Salesforecast
StrategicPlanning
Sales Force Automation
FinancialPlanning
OperationalPlanning
Strategic
Tactical/
Execution
Figure 2: SAP Integrated Business Planning Solution
SAP Integrated Business Planning Key Areas
SAP Integrated Business Planning balances demand with supply to attain profitability goals.
The following four areas differentiate SAP Integrated Business Planning from other solutions:
1. Includes a complete model that spans demand, finance, and supply chain planning
The model is flexible and easy to access from Microsoft Excel or analytics. It is easy toreconfigure as your requirements evolve over time. It is based on SAP HANA and offers a scalable model that can handle large data volumes and calculations.
2. Makes scenario planning and comparison with multiple planners possible in real-time atdetailed and aggregate levels
‘What-if simulation is available for planners on the entire model, enabled by the SAPHANA in-memory computing platform.
3. Embeds social collaboration
The application addresses the need to engage various business functions and bringstransparency to information sharing and decision making.
4. Displays intuitive user interfaces
Access via the Web, Microsoft Excel, and mobile devices supports real-time visibility andflexible planning.
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Complete Scalable Model
Real-Time What-if Scenario Planning
Collaboration Intuitive User Interfaces
Supply
1 --------.
Demand hirwncet
♦i M B *
V
Demand, supply chain, and financial model at aggregate & detailed
Real-time scenarios and simulation on
entire model
Transparent communication, record
decisions
Access anytime via Web, Excel and Mobile
user interfaceslevels
Consensusdemandplanning
Revenue & profit
impact
Figure 3: SAP Integrated Business Planning Key Areas
SAP Integrated Business Planning Issues
SAP Integrated Business Planning addresses the following issues in the sales and operations planning process:
• Too many spreadsheets and systems involved in the process
• Users not providing input, especially sales, marketing, and executives
• More time spent assembling data than planning
• Outdated demand, supply, and finance plans
• Work at aggregates level only and cannot connect to detailed mix
• Cannot change demand and view impact on supply and financials right away
• Difficulty simulating and comparing planning scenarios
• Planning decisions made without considering supply chain constraints and profitability
• Executive views lack the latest information
• Executive meeting information is hard to share and is disconnected from planning tools
LESSON SUMMARYYou should now be able to:
• Describe supply chain trends and challenges
• Describe SAP Integrated Business Planning
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Unit 1 Lesson 2
Describing SAP Integrated Business Planning Applications
LESSON OVERVIEWThis lesson describes SAP Supply Chain Control Tower. You also learn about SAP Integrated Business Planning for sales and operations, inventory, demand, and supply.
LESSON OBJECTIVESAfter completing this lesson, you will be able to:
• Describe SAP Integrated Business Planning for sales and operations
• Describe SAP Supply Chain Control Tower
• Describe SAP Integrated Business Planning for inventory
• Describe SAP Integrated Business Planning for demand
• Describe SAP Integrated Business Planning for supply
SAP Integrated Business Planning for Sales and Operations
Sales and operations planning is the core of SAP Integrated Business Planning. Several maturity models have been developed by industry analyst companies to determine the different stages of sales and operations planning, as follows:
• Create a feasible plan
• Match demand with supply
• Drive the most profitable response
• Build demand-driven supply chain capabilities
• Orchestrate through market driven value networks
Key Principles for SAP Integrated Business Planning for Sales and Operations
SAP Integrated Business Planning provides solutions to cover all five stages of sales and operations planning, based on the following five key principles:
1. Planning is about communication between people, as well as the collaboration of data. Theoption to comment on the plan eliminates miscommunication and speeds up the process.
2. Analytical capabilities are embedded into the process, so that users can directly see andanalyze the impact of different demand and supply scenarios without jumping betweensystems.
3. A simple user interface, leveraging Microsoft Excel, is embedded into the solution, insteadof using uploads and downloads or a different spreadsheet technology.
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4. Real-time scenario planning has been natively built-in on SAP HANA.
5. Data integration between SAP tools and third party tools.
Sales and Operations Application
SAP Integrated Business Planning for sales and operations delivers a cross departmental plan, balancing the impact on inventory, service levels, and profitability.
You can achieve the following using the application:
• Create the optimal business plan to drive revenue growth and increase market share
• Balance demand and supply and attain financial targets
• Increase speed and agility of planning and drive most profitable responses
• Improve forecast accuracy and on-time delivery
• Engage key stakeholders in an efficient process that aligns demand and supply
• See immediate results for real-time analysis and simulation
• Respond quickly to unexpected events
Home
Process: Global IBP 05/09/2013
Product Review Demand Review
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519/13 5/11/13 5/12/13 - 5/14/13
Dashboard: 2. Demand Review
Forecast vs Actuals by Family zT»w*t
Supply Review
Completed ✓
5/ 15/13 5/16/13
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Figure 4: Sales and Operations * •
SAP Integrated Business Planning Applications
SAP Integrated Business Planning builds on sales and operations planning with the following applications. The applications are all based on the same data model, powered by SAP HANA, so no data transfer is necessary between them.
The following solutions are provided in the cloud for easy and fast adoption:
• The SAP Supply Chain Control Tower is a Big Data analytics application, which allows youto acquire, cleanse, and harmonize data from the entire demand network in real time. You
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Lesson: Describing SAP Integrated Business Planning Applications
can leverage predictive analytics methods to provide real time what-if simulations in an open environment that can connect to third-party tools.
• SAP Integrated Business Planning for inventory allows you to optimize service levels bycreating multitier inventory targets. The reduction of inventory has a major impact onachieving profitability goals.
• SAP Integrated Business Planning for demand creates full demand transparency for allproducts and timeframes. The application includes predictive analytics capabilities fordemand sensing and statistical forecasting methods to increase forecast accuracy.
• SAP Integrated Business Planning for supply can be used as an extension of the sales andoperations planning process. It can show visibility in the supply network across locationsand through levels of the bill of material (BOM). It can provide a constrained demand planas an output for further supply processing in another planning system like SAP AdvancedPlanning and Optimization (APO) or SAP Enterprise Central Component (ECO).
SAP Supply Chain Control Tower
Supply chain professionals can navigate, analyze, and profitably manage the end-to-endsupply chain in real time. Using the SAP Supply Chain Control Tower, you can do thefollowing:
• Increase end-to-end visibility
• Increase on-time delivery performance to customer
• Decrease overall inventory levels while reducing risk
• Increase supply chain agility and reduce supply chain cost
Figure 5: SAP Supply Chain Control Tower
SAP Supply Chain Control Tower provides you with an up-to-date view of what is happening in your supply chain. It allows true end-to-end visibility from your suppliers to your customers. You can monitor production and all ongoing transportation and handling activities at a granular level, for example, a specific shipment. Deviations are analyzed and related to the
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end customer. Smart alerts include financial metrics and calculations like the expected cost of lost sales, and indications of what to prioritize.
SAP Supply Chain Control Tower Benefits
The following are the main benefits of the SAP Supply Chain Control Tower:
• Increase end-to-end visibility by bringing external information from planning and executionsystems into one view, near to real-time
• Increase supply chain agility and reduce supply chain cost with earlier issue detection andresolution
• Increase on-time delivery performance to customer by aligning all operations towards highcustomer service with the highest degree of visibility
• Decrease overall inventory levels while reducing risk by working with one system instead ofmany systems with unsynchronized data
SAP Supply Chain Control Tower is a solution for supply chain visibility that bridges supply chain planning and execution domains.
SAP Supply Chain Control Tower Key Features
The following are the key features of the SAP Supply Chain Control Tower:
• Smart alerts
• Analytics
• ‘What i f simulation capabilities
• Task and case management, engaging people to solve issues in a structured and alignedway
SAP Integrated Business Planning for Inventory
The following issues arise when planning inventory:
• How do you and your planning system manage uncertainty and complexity in youravailability or customer service level? •
• Where in your inventory planning do you consider that the forecast will be rarely, if ever,100% accurate?
• Are the lead times and supply quantities of your supply plan correct all of the time?
The SAP Integrated Business Planning for inventory app assists with supply chain uncertainty in the highly complex real-world supply chain. Using the app, you can optimize multi-stage inventory targets to meet or exceed customer service expectations, fully considering uncertainties like forecast error or supply uncertainty. You can set forward looking inventory targets across your complex supply chain so that inventory is deployed most efficiently.
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Lesson: Describing SAP Integrated Business Planning Applications
/*v Figure 6: Inventory
Benefits of SAP Integrated Business Planning
SAP Integrated Business Planning for Inventory provides the following benefits:
• Improves customer service levels
• Maximizes the efficiency of inventory and working capital
• Standardizes planning processes
• Standardizes the inventory target-setting process at each tier within the supply chain tofeed operational plans
• Reduces production and distribution costs
SAP Integrated Business Planning Demand
Using SAP Integrated Business Planning for demand, you gain full demand transparency for short, mid, and long-term forecasting, by leveraging demand sensing and statistical forecasting methods.
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Figure 7: Demand
The following are the benefits of SAP Integrated Business Planning for demand:
• Develop more accurate mid-term statistical forecasts
• React faster to short-term demand changes with pattern recognition based algorithms
• Drive more accurate deployment of product based on short-term demand
• Manage multiple demand signals
• Collaborate to ensure the most accurate forecast
Mid-Term Forecasting
Traditional mid-term forecasting relies heavily on statistical methods, but also on collaboration, and business input into the forecast. SAP Integrated Business Planning for demand includes robust statistical models for your initial forecast, and includes collaborative tools to collect information about your demand. You can use the app for demand with SAP Integrated Business Planning for sales and operations to generate a consensus forecast at any level.
Short-Term Forecasting
In the short term, SAP Integrated Business Planning for demand uses state-of-the-art pattern recognition algorithms to react to the changes in your demand. This accurate short-term forecast enables more accurate deployment of products, as well as changes to production, if your company has an agile production process. You can use multiple demand signals such as POS data, distributor withdrawals, and your orders, or shipments to drive the short-term forecast.
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Lesson: Describing SAP Integrated Business Planning Applications
SAP Integrated Business Planning for Supply
Using SAP Integrated Business Planning for supply, you can create advanced supply planning simulations based on forecasts, orders, and inventory or safety stock targets.
| Figure 8: Supply
The following are the benefits of SAP Integrated Business Planning for supply:
• Simulate a constrained or unconstrained production and distribution plan, using heuristicsor optimization based algorithms
• Determine multi-level sourcing for distribution and bills of material (BOM)
• Develop a draft capacity plan in a time series bucketed supply plan
• Use simulation capabilities for scenario planning
• Take advantage of visibility in the supply network across locations and through levels ofthe BOM
• Produce a constrained demand plan as an output for further supply processing in anotherplanning system like APO or ECO
LESSON SUMMARYYou should now be able to:
• Describe SAP Integrated Business Planning for sales and operations
• Describe SAP Supply Chain Control Tower
• Describe SAP Integrated Business Planning for inventory
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• Describe SAP Integrated Business Planning for demand
• Describe SAP Integrated Business Planning for supply
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Unit 1
Learning Assessment
1. Name two major trends in the market.
2. What are the four key areas of SAP Integrated Business Planning?
3. Which of the following are stages of sales and operations planning?
Choose the correct answers.
I A Create a feasible plan.
B Match demand with supply.
| C Drive the most profitable response.
D Build demand-driven supply chain capabilities.
E Build demand-driven supply chain capabilities.
F Orchestrate through market-driven value networks.
I G Eliminate data integration from third-party tools.
4. SAP Supply Chain Control Tower enables you to get an up to date overview of what ishappening in your supply chain.
Determine whether this statement is true or false.
| True
False
SAR40
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