sap apo - general overview

8/10/2019 SAP APO - General Overview

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2001 Andersen. All rights reserved

SAP APO Overview and

Business Opportunities

Business Consulting

Andersen European SAP Centre of Excellence


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2001 Andersen. All rights reserved 2

Agenda

SCM today. Why APO?

APO functions

APO Integration

APO Market


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The Supply Chain :From Supplier to Consumer

SAP AG 2001

Increase customer responsiveness at least cost

Manufacturer DistributionSupplier

INFORMATION FLOW

Retail Outlet Consumer

Supply Chain Optimization

CASH FLOW

Transfer Transfer Transfer Transfer


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Reasons for the Supply Chain Management I

To reduce the inventory level and the operating capital.

To improve the use of resources and the efficiency of the operations.

To lower the cost of origin of finished products and raw materials.

To obtain a global vision of the resources, the plans, etc.

To optimize the decision making in sorroundings of more and more complex

business.


5/74 2001 Andersen. All rights reserved 5

Reasons for the Supply Chain Management II

Integration with e-marketplaces, allowing a global compare of the vendors ina easy and fast way.

To level the supply and demand through a planning integration tool.

Improve the use of assets and reduce the waste actions.

To reduce the cycles of planning and manufacture.

NEW CONCEPT??????



Todays Supply Chain Pain. Secuencial Supply Chain

SAP AG



Todays Business Reality

SAP AG



Coordination Through Event Management

SAP AG



SAPs Total Supply Chain Solution


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Manual communication

(phone/fax/EDI)

Unsynchronized planning cycles

Assumption-based planning

Excessive inventory buffers

Todays Supply Chains are not online

Tier 3

Supplier

Tier 2

Supplier

Tier 1

Supplier

... to CNO

FAX, e-mail

EDI

Online

(Internet/Extranet)

2002

60%

60%

88%

Today

78%

65%

28%

Forrester Research, 2000

SAP AG


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Why SAP and SCM?

APO as a Planning Advance tool. More than MRP II

The initial strategy of SAP was to certify interfases of external vendors in Advance

planning.

This interfases are still in use.

The market requires for a functionality of advance planning and scheduling:

optimizor

simulation

restriction based

High performance in real time


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SAP Supply Chain Management

R/3ERP

P M S

Vendor

P M S

Customer

Contracts Contracts

Internet

Intranet

Execution

Analysis

Internet

BW

Planning and OptimizationAPO

Procurement Production Distribution

APO integration

SAP AG


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Simul taneousmaterial and capacity planning across multiple levels of the logistics

chain

Consideration of existing bot t lenecks

Increased accuracy inplanning

Optimizat ionof plans in harmony with operative aims

Seamless technical integrat ionbetween APO, BW and R/3

Integrationbetween customers and suppliers (e.g. collaboration)

Synchronizat ionof different activities in the logistics chain

Transparencyacross the complete logistics chain

Direct performance measurement

Reduction of planning t ime, what-if scenarios

APO features I


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Maximize ability to react to customer

Flexibility Ability to supply

Minimize the costs of the complete supply chain

Procurement Production

Transportation

Warehouse management

Optimize use of assets

Raw materials, semi-finished products, finished products, resources for

production, transportation, and storage

APO features II


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Agenda

SCM today. Why APO?

APO functions

Introduction.Business Scenarios

Demand Planning

Supply Network Planning

PP/DS

Global ATP

Transport Planning

APO Integration

APO Market


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APO: Planning Sequence.

R

RecommendedTransport Orders

Forecast

Supply Network

Planning

Demand Planning

Production PlanningDetailed Scheduling

Transport LoadBuilder

Deployment

TransportOrders

Planned Orders

ConfirmedTransport Orders

SAP AG


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APO Areas

Supplier

Partner Partne

Custome

Direct

Procurement

Source Deliver

Order

Fulfillment

Make

Manufacturing

Supply Chain Design

Strategize

Demand and

Supply Planning

Plan

Supply Chain Performance Management

Measure

Supply Chain Event Management

Track

Supply

ChainCollaboratio

n

C

ollaborate

SupplyChainCollab

oration

Collaborate

Supply Chain

Network

Supply Cha

Network

SAP AG

Network Design


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Network Design

Design and redesign of your Supply Chain

Supply Chain Dessign

SAP AG

Assignment of mySAP Applications to Supply Chain


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Decisions about direction of the company

Supply Chain Design

Network Design (ND)

Operational aggregated planning (tactical planning)

Aggregated sales and demand

planning Demand Planning(DP)


(SNP)

Ext. proc. planning Production

planning

Delivery planning

Partner

Assignment of mySAP Applications to Supply Chain

External procurement Production Outbound delivery External

procurement at

customer

Operational detailed planning(operational planning)

Execution

Planning

Cu

stomer

Strategy planning

Tactical planning: strategy realization and infrastructure planning (plan infrastructure)

SNPPP/DS SNP

Deploy,

TP/VS, ATP

PP/DS

for example,

LES, MM

for example,PP for example,LES,

MM, SD

Planning Levels

SAP AG


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Functional Arquitecture.

APOAPOR/3R/3

Global

ATP

SAP -BW

Historical

Data

Key

Perform.

Indicators

External

Data

(e.g. POS)

SAP- BW

Historical

Data

Key

Perform.

Indicators

External

Data

(e.g. POS)

Sales

Orders

Manufacturing

Execution

Inventory

Management

Supply

Network

Planning

Supply Chain Cockpit

Deployment

ProductionPlanning and

Detailed

Scheduling

Demand Planning

Transport

SAP AG


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Agenda

SCM today. Why APO?

APO functions


Demand Planning


PP/DS

Global ATP

Transport Planning

APO Integration

APO Market


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Supply Chain

Network

Supplier

Partner Partne

Custome

Direct

Procurement

Source Deliver

Order

Fulfillment

Make

Manufacturing

Supply Chain Design

Strategize

Demand and

Supply Planning

Plan


Measure


Track

SupplyChainCollaboration

Collaborate

S

upplyChainCollaboration

Collaborate

Supply Cha

Network

Demand Planning What are my expected sales?What is the impact of causal factors?

What is the impact or promotions and competitor

activity?What is the impact of new products?

Does my current forecast support the budget plan for

my key account?

SAP AG


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Planning type:

Manual / Automatic

Historic

Collaboration

Promotion planning

Canibalization

Lifecycle planning

Forecasting Accuracy

Planning levels:

Product

Product Group

Dimensions: Sales area,

client,.

Planning material

Demand Planning functionality


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Planning Book

SAP AG


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Promotion Planning

SAP AG


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Tool to share information and collaborate between 2 or more partners (external and

internal).

Information about demand and forecasting.

Supplying information

Data selection throught selection IDs.

Optional update list.

Display and manage alerts.

Grouped by type.

Filtered by priority

Macros execution. (Possible to link macros and alerts).

Sending mails trought email

Tools (1)


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Tools (2)

Advances Macros technics:

Logic functions: if, else if, ...

Operators and mathematical functions: (), , sin, sqrt, ...

Causal analysis : market campaigns

Forecasting models:

Alisado exponencial, Holt-Winters,...

Authomatic selection of models.

Seasonal linear regression

Forecasting combination:

Pick-the-best.

Promotion planning

Analysis and comparing results.

Releasing the plan to SNP.


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Basic Planning enhancements

High Performance thru Live Cache Architecture

Fixed Values at Aggregated Level

Navigation Attributes for Data Selection

Characteristics Dependent Planning

Distribution Function with distribution patterns

Statistical Methods

Seasonal linear regression (planificacin con variables dependientes)

Manual forecasting

Graphical capabilities

Life cycle

Like modelling

Pase-in/out (ie product introduction)


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SAP AG

Collaborative Demand Planning I


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SAP AG

Collaborative Demand Planning II


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Benefits

Demand visibility

Improve forecasting accuracy

Improve customer service

Reduce inventory levels


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Agenda

SCM today. Why APO?

APO functions


Demand Planning


PP/DS

Global ATP

Transport Planning

APO Integration

APO Market


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Supplier

Partner Partne

Custome

Direct

Procurement

Source Deliver

Order

Fulfillment

Make

Manufacturing

Supply Chain Design

Strategize

Demand and

Supply Planning

Plan


Measure


Track


C

ollaborate

SupplyChainColla

boration

Collaborate

When and where should material be sourced,

produced, moved and stored?

How to satisfy demand at minimal cost?

Can all demand be satisfied while respecting all

constraints?

What is my profit- or cost-optimal product mix

given supply constraints?

What are the consequences of raising my

service level?

Supply Chain

Network

Supply Cha

Network


SAP AG


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Graphical Output of results

SAP AG


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Basic Functionality

Automatic creation of feasible plans

using heuristics models.

Optimization based in costs/ profits

Control capacity at the vendor site.

Distribution calcul rule based.

Deployment


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APO-SNP: Strategies

SNP Heuristics:

Distribution by quotes

Taking into account delivery times

Check of production capacity

Automatic capacity leveling.

SNP Optimization: Cost - Based

Selection of most suitable production plant.

Optimization of costs for production, transportation and storage

Mixed Integer Linear Programming / meta heuristics

Feasible plans

SNP Capable to match

Assignnment of requirements to quotations by means of priorities

Supplier WH

Manufacurer

DC

Customer DC

Production Model

Manufacturer Plant

Supplier Plant

Capable-to-Match


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1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

Capable-to-Match

Cross-plant capacity check and check of

transportation possibilities

Prioritized

requirements

Categorized

receipts

SAP AG

APO-SNP: Capable-to-Match


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Supply Network Planning- Capacity Leveling

SAP AG


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SNP Sourcing

Make or Buy decission

Time depending sourcing

Lot Size depending sourcing

Quotation only necessary for multi sourcing

Interactive Sourcing like in Purchasing Workbench

Purchasing Contracts and Info Records

considered for External Procurement

Scheduling Agreements can be used for SNP


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Costs Transportation costs

Production costs

Inventory costs

Handling costs

Procurement costs

Location costs / subsidies

Fixed costs of maintenance

Costs of opening / closing down of locations

Public subsidies

Penalty costs (e.g. unfulfilled demand)

Costs


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Deployment

Model with restriccions: capacities, calendars

Distribution logic PULL

Distribution logic PUSH

Fair Share Logic

One Step Deployment

Deployment Run without Heuristic

Considers most actual information

Allows multiple Deployment Runs per day

Integrated with Allocation module

Demand Prioritization possible

Cost optimization

Philadelphia

New Orleans

Montreal

Chicago

Winnipeg

Calgary

CustomerPhiladelphia

Montreal

SAPCO


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Benefits

Satisfy supply with demand dynamically

To model the distribution network and the existent restrictions.

Balance and optimize the distribution network

Reduce the inventory levels


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Agenda

SCM today. Why APO?

APO functions


Demand Planning

Supply Network Planning PP/DS

Global ATP

Transport Planning

APO Integration

APO Market


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Production Planning and Detailed Scheduling

Supplier

Partner Partne

Custome

Direct

Procurement

Source Deliver

Order

Fulfillment

Make

Manufacturing

Supply Chain Design

Strategize

Demand and

Supply Planning

Plan


Measure


Track

SupplyC

hainCollaboration

Co

llaborate


Collabor

ate

What is the optimal production plan in relation to

customer service and total costs?

Which material, resources and capacity is needed

and when?

What is the optimal production sequence to

minimize set-up, cost, work-in-process, delays ...?

Supply Chain

Network

Supply Cha

Network

SAP AG

Production Planning & Detailed Scheduling in APO:


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Advantages

Simultaneous material and capacity requirements planning for in-house production, external

procurement, and stock transfers in a production plant at operation level: Fast generation offeasible plans

Immediate and automatic planning (for example, to trigger production from the plant) - close

integration with plant

Planning with exact times, even for dependent requirements (for example, a prerequisite for

material staging by shift)

Dynamic exception messages in real-time and based on order linking (pegging) across the wholesupply chain

Multi-level capacity requirements planning possible: automatic, multi-level, bi-directional

propagation of order changes

Planning of alternative resources

Available capacity: time, volumn, length ...

Consideration of restrictions in planning (for example, supplier capacity)

Schedule optimization (order sequencing, lead time, etc.)

Simulation and What If

PP / DS Features


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Example.

t

Capacity 1

Capacity 2

Capacity 3

Sales OrderDesired date

and quantity

Available

Occupied

Today

1st loading attempt

Confirmed date

and quantity

Final loading

SAP AG

Wh APO PP/DS ?


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Planning critical products (for example, products with longreplenishment times or products that are produced at bottleneck

resources)

Planning in a short-term time horizon with scheduling to the

second while taking order sequences into account

Generating a feasible production plan which includes thefollowing improvements:

Reduced lead times and an increase of deliveries that are on time,

leading to greater customer satisfaction

Increased throughput of products based on a better coordination of

resources Reduced stock costs since the work-in-process stocks are limited due to

better coordination of product release

When APO PP/DS ?

Production Planning & Detailed Scheduling in APO:

I t ti ith R/3 (1)


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Integration with R/3 (1)

PP/DS is a planning tool. Execution functions such as

confirmations and goods receipts are performed in R/3.

R/3 supplies APO with data relevant for planning (such as

master data, sales orders).

Planning results are transferred from APO back to R/3. If

required, planning is completed in R/3 (for example, if all of theproducts of a BOM structure are not planned in APO).

If you plan a component in R/3, you must also plan all related

subcomponents in R/3

Recommendation:

Wrong Right

Key

Planned in APO

Planned in R/3

When APO PP/DS ? II

B fit


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Benefits

Improve the material flow

Reduce stocking levels

Less non-planned hours

Improve resource utilization

A d


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Agenda

SCM today. Why APO?

APO functions


Demand Planning


Global ATP

Transport Planning

APO Integration

APO Market


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Order Fulfillment

Supplier

Partner Partne

Custome

Direct

Procurement

Source Deliver

Order

Fulfillment

Make

Manufacturing

Supply Chain Design

Strategize

Demand and

Supply Planning

Plan


Measure


Track

SupplyC

hainCollaboration

Co

llaborate


Collabor

ate

Can we fulfill this customer order from stock

or planned orders?

Can we fulfill this customer order by new

production order and when do we have

material and capacity available?

Can this order be fulfilled through substitute

products or alternative locations?

Supply Chain

Network

Supply Cha

Network

SAP AG

Global Availability Check

Gl b l ATP B i F ti lit


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Availability check

product availability

product substitution

location substitution

Product allocation

check against planning

check against production

check of production versions

capacity check

component availability

SAP AG

Global ATP. Basic Functionality

Gl b l ATP R3 d APO I


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SAP AG

Global ATP. R3 and APO I

Gl b l ATP R3 d APO II


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Sales order

Sales order

R/3 APO

Sales (SD) ATP checkATP request

Production Planning/Detailed Scheduling

For non-availability Produce

Planned order

MRP

Confirmation

Update time series

Save sales order

Planned order

SAP AG

Global ATP. R3 and APO II

Benefits


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Benefits

Improve the service level

High performance even with great volum of data.

Greater visibility of the requirements

Agenda


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Agenda

SCM today. Why APO?

APO functions


Demand Planning


Global ATP

Transport Planning

APO Integration

APO Market

Transport Planning


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Supplier

Partner Partne

Custome

Direct

Procurement

Source Deliver

Order

Fulfillment

Make

Manufacturing

Supply Chain Design

Strategize

Demand and

Supply Planning

Plan


Measure


Track


C

ollaborate

SupplyChainColla

boration

Collaborate

Which transport orders can be combined?Which mode of transport should be used?

Which delivery route should be taken?

What are the minimal transportation costs?

Supply Chain

Network

Supply Cha

Network

SAP AG

Transport Planning

Transportation planning using SAP-APO

Transport Planning


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medium-term and bucket planning

compressed view of requirements for one period (e.g. week, month, year)

Transportation planning

Vehicle scheduling

short-term and order planning (usually next couple of days)

planning for actual and virtual orders

link to the SAP Logistics Execution System (LES) to support the plannedbusiness processes

SAP AG

Transport Planning

Transportation planning using SAP-APO

Transport Planning (in the next release APO 3.1 1stQ-2002)


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Real and fictitious vehicle planning. First planning based in fictitious

resources and later on substitution by real resources when confirmed

transports.

VSO: Vehicle Space Optimizer. Load optimization

Route planning at street level.

Transportation planning / Vehicle scheduling

SAP AG

Transport Planning (in the next release APO 3.1 1stQ 2002)

Transport Planning


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Transport Planning


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Space Reserved

forFotograph or icon

(OPTIONAL)

Service line descriptor - OPTIONAL - in case there isnt any, cancel grey line

Andersen 2001. Todos los derechos reservados

Logo del

Cliente (opcional)

Alerts

Alerts


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Supplier

Partner Partne

Custome

Direct

Procurement

Source Deliver

Order

Fulfillment

Make

Manufacturing

Supply Chain Design

Strategize

Demand and

Supply Planning

Plan


Measure


Track


C

ollaborate

SupplyChainColla

boration

Collaborate

Supply Chain

Network

Supply Cha

NetworkHow can I stay in control in view of an increasing need for

business velocity?

How can I effectively coordinate processes both internally

and throughout the extended supply chain?

How can I automate response to unplanned events?

Supply Chain Cockpit.


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Tool to modelize and monitor the Supply Chain

APO

Planung Stammdaten Material AuftragPlanung Material Auftrag Stammdaten System Hilfe

Liste

SAP AG

Supply Chain Cockpit.


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APO

Planung Stammdaten Material

AuftragPlanung Material Auftrag Stammdaten System

Hilfe

Liste

Alerts

Several views to monitor

Modelizing

APO

Alert Monitor Cockpit Engineer

pp y p

SAP AG

Supply Chain Cockpit / Alert Monitor


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Basic Functionality

Supply Chain Modelizor

Global visibility

Managing exceptions.

APO integration with R3 and BW.

Supply Network Design.

KPIs.

Queries.

Alert Monitor

Cockpit

Engineer

SAP AG

Agenda


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SCM today. Why APO?APO functions


Demand Planning


Global ATP

Transport Planning

APO Integration

APO Market

APO - R3 integrationIn Technology


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R/3

R/3 Plug-

in

BBP

CRM

BW

APO

SEM

CIF

Integration - Upgrades - Future development

SAP AG

The components and technology ofmy.SAP SCM

APO Arquitecture


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Demand Planning

BW ERP R/3 R/2 Marketplace

liveCache

InfoCube

Solver

Optimization

Cartridge

Production

Planning

Transportation

Planning

Global

ATP

Collaborative

Planning

SAP AG

Agenda


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SCM today. Why APO?

APO functions


Demand Planning


Global ATP

Transport Planning

APO Integration

APO Market

SAP Competitors Provide Parts of the Puzzle


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Planning

Networking

Coordination

Execution

SAP AG

APO - European Andersen Projects
http://localhost/var/www/apps/conversion/tmp/scratch_6/http://igwp3-pcs.wdf.sap-ag.de:1080/scripts/wgate/sapwp/!http://localhost/var/www/apps/conversion/tmp/scratch_6/http://localhost/var/www/apps/conversion/tmp/scratch_6/http://www.manugistics.com/default.asphttp://www.i2.com/quickfind/rw_press.cfmhttp://www.i2.com/quickfind/rw_press.cfmhttp://www.manugistics.com/default.asp


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Data mart (BW)set up

integration with R/3

forecast models

collaborative planning

extensive use of planningbooks and macro's

BW reporting

Metal Products

Consumer Goods. Industrial Baker

Metal Products. camshaft mechanism

DP in live

Currently, rest of APO modules in progress

implementation

- material planning and resource detailed scheduling- supplier scheduling

- Available To Promise

Colombo Filippetti

APO Examples: Non Andersen Projects


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Colgate

Supplier Performance Measurement,

Vendoranalysis

Hewlett Packard

Supply Chain KPIs:Inventory,

Orders,

Delivery,

Profitability,

Customer information

Novo Nordisk A/S

Centralized management of

production, shipment and

stock information;

valued stock, on-time delivery,

lead time for purchasing,

average stock

Owens Corning

Inventory levels, DOS, productionconfirmation levels,

shipment levels

Roche Diagnostics

Stock analysis,

Batch controlling,

Backorder analysis,

Forecast accuracy by plant, product

Non Andersen implementation SAP AG

Industry and financial analysts


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SAPs Advanced Planner & Optimizer version 3.0 (APO

3.0) is ready to compete head on with even niche vendorsproducts, meeting most of the needs of any company

looking to add supply chain planning to i ts technology

roster.

AMR, Robert Ferrari

SAP has made significant headway with its mySAP.com

solution. In particular, based on our discussions with

prospective customers, we believe the supply chain product

is now very competitive.

GOLDMANN SACHS, N.N.

END


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