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dvanced Planning & Optimization , Demand planning , Manufacturing , Production Orders , SAP ERP , SAPtWeaver BW , Supply network planning

mprove Runs for Products with Recurring TimeConstraints Using SAP APO SNP

Srinivas Gudipati, Director, SAP Solutions, Falcon Prime, Inc. • February 25, 2011

You can configure the SAP Advanced Planning & Optimization (SAP APO) Supply Network Planning

(SNP) module to create a real-time shop floor plan based on production frequency. This approach

is useful if a company has dedicated manufacturing lines and manufacturing weeks in a month for

different product groups, and wants to generate the production plan by looking at factors such as

time schedules and manufacturing resources. SAP APO SNP can generate a production plan that

the shop floor can execute.

Key Concept

A planning receipt is a request created during the planning run for a plant to trigger the procurementr production of material of a certain quantity for a specific date. Using SAP Advanced Planning &

Optimization Supply Network Planning, you can place planning receipt quantities into recurring timeuckets, which is helpful when shops dedicate machine capacity to specific products during certain

weeks

mpanies sometimes want to perform long-term capacity planning in a tight production schedule withferent production lines allocated to product groups. This kind of situation occurs in the consumer

oducts industry where companies manufacture products or product groups on dedicated production linesspecific time periods during a month or quarter.

sed on the sales volume, they manufacture the products frequently— for example once a month orarterly — by accumulating the demand. One of my clients has a typical production schedule driven byoduct groups (based on their sales volume) on dedicated production lines in specific time periods. Thisent wanted to implement SAP Advanced Planning & Optimization (SAP APO) Supply Network PlanningNP) and integrate its existing SAP ERP production planning into SAP APO.

e client wanted to create a production schedule based on the actual shop floor schedules, review theng-term capacity plan with SAP NetWeaver BW metrics, fine tune its capacities, and, finally, generate aasible production schedule for manufacturing plants. I assume that the reader has some priorowledge about SAP APO master data, SAP ERP-APO core interface (CIF), the setup for new SNPanning areas, SNP planning books, and macro elements.

etails Abo ut Business Needs

y client, a global company, performs forecasting in SAP APO Demand Planning (DP). The forecasttput feeds into SAP APO SNP for supply planning. Demand from the client’s 10 involved countries isgregated and fed into manufacturing plants. The manufacturing lines are dedicated to different productoups only in certain weeks in the plant calendar, based on sales volume. For more detail, see my SCM pert article, “Quick Tip: Use SAP APO SNP to Improve Runs for Products with Recurring Timenstraints.” That article explains the process we followed to select this option and the functionality weplemented for this client.

gure 1 shows the business process flow of the solution I discuss, including the sequence of macros andeir inputs and outputs.

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7/21/2019 Improve Runs for Products With Recurring Time Constraints Using SAP APO SNP

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Figure 1 Business process flow of the SAP APO solutions discussed in this article

lements for Configu ration

low is a detailed explanation of the configuration we implemented in the system.

apping Time-Stream IDs to the Product Master

ep 1. Map the shop-floor, product-group-based planning calendars into different time streams in SAPPO. All the time horizons have been divided by naming them weekly, biweekly, and monthly time-eam stamps. Every week has been allocated to the time-stream ID as shown in the spreadsheet ingure 2 , which lists all the weekly time buckets in a year and groups them based on time stream withX in the buckets.

Figure 2 Weeks mapping to the different time-stream-based calendars

ep 2. Create detailed time-stream IDs with the relevant weekly or biweekly time windows in the SAPPO planning system ( Figures 3 and 4 ). Use transaction code S_AP9_75000138 (Maintain Planninglendar [Time Stream]) or follow menu path SAP Menu > Advanced Planning & Optimization > Supplytwork Planning > Environment > Current Settings > S_AP9_75000138 - Maintain Planning Calendar

ime Stream). Enter the name of the time-stream ID in the transaction, enter years in the past andure in the header data, and enter the time buckets manually in the From-date and To Date fields, and

en save the time stream.

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Figure 3 Weekly time-stream calendars created in SAP APO as time-stream IDs

Figure 4 Biweekly time-stream calendars created in SAP APO as time-stream IDs

e intent is to have only the periods that you entered in the time-stream ID as active periods foroduction.

ep 3. Enter the time-stream IDs that you just created into the SAP APO product master by usingnsaction /SAPAPO/MAT1 – Product ( Figure 5 ). These time-stream IDs have been stored in the product

aster as additional fields so that they are easily accessible to the SNP planning book macros. Enter thepective product and location, and enter the time-stream ID under the Production Frequency field near

e bottom of the screen. The macro logic is to read the time-stream ID from the product master,termine the planning periods based on the active time buckets, and create the production planning timeriods. Then, based on these time periods, SNP heuristics creates the production planning receipts inese time buckets.

7/21/2019 Improve Runs for Products With Recurring Time Constraints Using SAP APO SNP

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Figure 5 Time-stream ID calendars are attached to the product based on the product group

NP Planning A rea and Planning Bo ok Changes

the client wanted to implement the entire solution within SNP and to use SNP heuristics as thegorithm for planning, I had to change the SNP planning area and SNP planning books to get the rightults from SNP heuristics planning.

e copied standard SNP planning area 9ASNP02 into a new planning area. Using transaction RSA1 BW, Ieated new key figures: Y_EXTRA1, Y_EXTRA2, Y_EXTRA3, Y_FREQNCY, Y_PDEMAND, and Y_PLNPERD. Ided the new key figures to the planning area so that production frequency logic could be built in thew SNP planning area and planning books. To do this, use transaction /SAPAPO/MSDP_ADMIN –dministration of Demand Planning and Supply Network Planning or follow menu path SAP Menu >dvanced planning and Optimization > Supply Network Planning > Environment > Current Settings >APAPO/MSDP_ADMIN – Administration of Demand Planning and Supply Network Planning. Right- clickur SNP planning area and choose the option to change the planning area, which then leads to theeen in Figure 6 . The primary purpose of adding these extra key figures is to use them in the different

oduction frequency-based planning receipts generation logic. For example, a macro reads the productaster time-stream field and designates the time periods as active or not active in the Y_FREQUENCY keyure so that SNP heuristics knows where to create the planning receipts.

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Figure 6 SNP planning area copy with new key figures added

view the data, I created separate SNP planning books by using the standard APO planning bookseation transaction /SAPAPO/SDP8B — Define Planning Book. This step allows you to create the planningults based on production frequency and to view the resource capacity information in the planning bookthe resource available capacity versus resource capacity consumed by the planning results.

gure 7 shows a sample view of the planning book and the different key figures. I made provisions toter the buffer stock requirements in the planning books key figures, such as production planninganges (PPC). The PPC key figures can accommodate regular production planning changes or allow fortra buffer stocks to accommodate any future sales order spikes. Safety-stock-related demand, such as

C, rolls up into the total demand for further calculation purposes in the planning book.

Figure 7 SNP planning book view

igging Into the Macros

e SNP planning book and macros have been configured so that the system considers the productionanning frequency ( Figure 8 ). As shown earlier, the product master has the time stream saved in itsaster data fields. The macro’s logic arranges the demand so that SNP heuristics looks at the totalmand and total receipts together with the production frequency active periods, and then SNP heuristicseates the production planning proposals to match the production frequency.

7/21/2019 Improve Runs for Products With Recurring Time Constraints Using SAP APO SNP

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Figure 8 Flow process of SNP macros logic

acro 1 — Layout Attributes

acro 1, shown in Figure 9 , locks the planned key figures at an aggregated level and leaves them open input only at the Product/Location level. In this first macro, all the related key figures — including PPC

anges, Production (Planned), and Distribution Receipt (Planned) — are locked when they are not at theoduct/Location detailed level. They are open for editing only when they are at Product/Location level.y using these key figures, the later macros formulate the logic for the planned receipts time bucketseation.

Figure 9 Unlocking key figures at the Product/Location level and locking them at all otherlevels

acro 2 — Work Day Determination

acro 2 determines how many work days there are in each period based on the location calendar byading the location master. The macro calculates the bucket week days in a particular time bucket in theanning book ( Figure 10 ).

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Figure 10 Determining the work days by calendar/period

Macro 3 — Production Frequency

Macro 3, the step for Time Steam Definition: TS reads the production time frequency from the productaster and determines the planning period, and the step Minimum Lot Size: ML determines the minimum

size for planning purposes ( Figure 11 ). The macro is only executed at the Product/Location level.

Figure 11 The first step determines calculation-dependent variables

acro 3 reads the time stream from the SAP APO product master and evaluates the time stream. Theention of reading the time stream is to determine whether a period can be planned, as the clientnted to produce certain product groups only in certain periods. Based on this time stream, the systemtermines which periods can be planned and which periods cannot.

Figure 11 , under Definition Set the dependent variables, the system determines the time stream,cation type, and product lot size information for further processing in the dynamic memory tables andriables. If there is no lot size found for a particular product and location, then a default value of 1 ised for the lot size.

sed on the product master field that I stored earlier, the second step in macro 3 (Process Buckets)ads the time stream and determines the bucket week days for the processing week period ( Figure 12 ).

sed on the time-stream configuration, if the system determines the number of working days as morean zero in that particular week, the system stamps that week as a work week for that product/locationmbination.

e macro allows SNP heuristics to create further planning receipts in that particular weekly time bucket.the step Row: Production Frequency, the logic system populates the production frequency row with thenimum lot size so that the particular period is marked for planning.

7/21/2019 Improve Runs for Products With Recurring Time Constraints Using SAP APO SNP

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Figure 12 Determine the production periods based on the time-stream calendars

acro 4 — Demand Calculation

acro 4 adds the different demands and plans based on the production frequency time periods ( Figure). As an output from this macro, the consolidated demand feeds into SNP heuristics so that heuristics

eates the planned orders based on the planning periods.

Figure 13 Steps to calculate the total demand and total receipts and accumulate the demandbased on production periods

e system takes the following steps automatically as shown in Figure 13 :

ep 1. The lines Total demand and Row: Total Demand add the related demand key figures from theNP planning book so that the system can determine total demand numbers.

ep 2. The lines Total receipts and Row: Total Receipts add the related supply key figures from the SNPanning book so that the system can determine total supply numbers.

ep 3. The line Initialize variable NET_DE initializes the net cumulative demand variables andcumulates the demand backwards to each planning period based on the production periods that thestem determined earlier.

ep 4 and Step 5: The lines Calculate and shift periodic demand and RESHIFT REMAINING DEMAND adde cumulative demands in each period based on the active planning periods determined by productionquency. These steps make the demands in nonactive planning periods added cumulatively to active

anning periods. With these steps, the system determines the demand in each active planning period.

t’s continue the review of automatic steps for macro 4 in Figure 14 :

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ep 6 and Step 7: CALCULATE STOCKS INITIAL determines the initial stock in the system and, basedon the total demand, CALCULATE STOCKS FUTURE projects the stock which has to be on hand in futureriods.

ote how the subrows under CALCULATE STOCKS INITIAL and CALCULATE STOCKS FUTURE determinee stock on hand projection calculations for initial and future periods so that SNP heuristics can read thismand and create the related planned receipts in the future.

Figure 14 Calculate the stock on hand and the projection for initial and future periods

gure 15 shows the desired output of macro 4 in the interactive SNP planning screen. Use transactionAPAPO/SNP94 – Interactive Supply Network Planning or follow menu path SAP Menu > Advancedanning and Optimization > Supply Network Planning > /SAPAPO/SNP94 - Interactive Supply Networkanning. In the SNP planning book, when the planner displays the product location from the SNP macros,e logic system displays the planning time periods in the Planning Period Calculation and Productionequency key figures near the bottom of the screen in Figure 15 . Based on the data from these keyures, SNP heuristics creates planning receipts in the planning book.

Figure 15 SNP planning book results from the SNP macros

NP Heuristics Output Results

hen a user invokes the location heuristics functionality, SNP heuristics creates the planned receiptoposals as indicated by the SNAP macro logic ( Figure 16 ). For example, based on a biweekly time-eam calendar, SNP heuristics creates production proposals in week 38 (designated as W 38/2009 ingure 16 ), skips week 39, and creates production proposals again in week 40.

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Figure 16 SNP heuristics compiles production time frequency for a biweekly production time-stream calendar

e SNP heuristics also uses the lot size definitions as defined in the product master as well as theanned safety stock.

AP ERP-APO CIF Integrati on

part from the above changes in the product master additional attributes, all other master data followsndard integration between SAP ERP and SAP APO. All SAP ERP work centers have been created as SAPPO resources. Standard SAP ERP-APO CIF integration maps out multiple routings and alternative bills of aterial as production process models in SAP APO for planning purposes. SAP ERP Material Requirementsanning (MRP) performs component planning, and only finished goods planning is done in SAP APO. Ase scope of this article is primarily to explain the production frequency-based configuration in SNPanning, I did not go into much detail in the SAP APO resource/PPM setup. Most of the SAP APO masterta follows the standard SAP APO route. The planned orders have been directly integrated with SAP ERPd have been converted to production orders for execution by following standard CIF integrationethods.

AP NetWeaver BW Query

ter the client completed the SNP planning run, I developed an SAP NetWeaver BW query planningults analysis by using the remote cube on the SNP planning area. Based on this query, users cannduct both macro- and micro-level planning run analyses. Figure 17 offers a sample view of thisetrics-based analysis. It gives the available capacity and capacity consumption on each resource so thaters have a clear understanding of how much production quantity has been planned and where theources have been overloaded or underloaded. Users then can make any necessary adjustments.

Figure 17 SAP NetWeaver BW query-based analysis of SNP planning results

u can run these queries in simulated and active versions so that planners can perform necessaryustments. In SAP APO, you can create multiple planning versions to run SNP. Planning version 000 is

e active version, which updates directly in real time from SAP ERP. Other copied versions do not receivetomatic updates from SAP ERP. My client wanted to have a simulated copy of planning version 000 soat the company could plan offline without SAP ERP updating the copied version.

nivas Gudipati is director of SAP solutions at Falcon Prime, Inc., at which he leads SAP SCM solutionscluding SAP ERP Logistics, SAP APO, and RFID). He implements large-scale corporate supply chain

ojects and deploys end-to-end supply chain process solutions. Falcon Prime, Inc., specializes in SAPoducts and solutions across the enterprise domain, and provides business and technology consultingvices, software implementation, and development. Srinivas has 12 years of SAP experience and more

an eight years of experience implementing SAP supply chain solutions. You may contact Srinivas bymail at srinivas.gudipati@falconprime.com .

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