SCM 100Unit 1: overview of supply chain planning

Lesson: overview:

The mySAP Business Suite offers both cross-industry and industry-specificsolutions.

mySAP Business Suite is based on SAP NetWeaver, an open-ended, scalableinfrastructure that allows the integration of heterogeneous environments(SAP and non-SAP components). SAP NetWeaver incorporates SAP WebApplication Server, the portal infrastructure, SAP Exchange Infrastructure andInformation Integration. The SAP Web Application Server supports nativeInternet technologies (HTTP, XML), JAVA and ABAP.

The SAP Customer Service Network incorporates the following components:Business Solutions Consulting (Business Solution Design: Creating businesssolutions, project management, Continuous Business Improvement); SolutionsOperations Services (technical implementation and continuous optimization);training; support (24x7 support, EarlyWatch, GoingLive).

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The mySAP SCM (Supply Chain Management) solution is divided into the areasof SC Planning, SC Execution, SC Coordination and SC Collaboration.

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Lesson SummaryYou should now be able to:. Put the SAP ECC and SAP APO supply chain planning components intoPerspective

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Lesson: supply chain planning overview

You use postponement strategies to specify to what extent the sales order influencesthe supply chain; that is, the point at which make-to-stock production (pushstrategies) becomes separated from make-to-order production (pull strategies).

The process of demand planning, which is used to derive a future demand programfrom the demand figures in the past, can either be executed in ECC within flexibleplanning (with the special case of standard SOP (SOP: Sales and OperationsPlanning) or in demand planning in APO.Demand management in the true sense of the word takes place in ECC. However,

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it is also possible to derive planned independent requirements from APO-DP.Sales orders are always entered in the ECC system. The ATP check for a salesorder can be carried out globally in APO (integration with PP/DS is also possible).You can use Supply Network Planning in APO to perform cross-plant planning.Material requirements planning can be performed in ECC or in APO.

SAP ECC offers Flexible Planning, The result of the forecast typically takes the form of demand forecasts at the level of distribution centers (DCs) or directly in the production plants.

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Demand Planning can be performed in SAP ECC as part of flexible planningor in Sales and Operations Planning. Within this context, Sales and OperationsPlanning can be regarded as a special form of flexible planning.

The behavior of independent requirements in material requirements planning is determined by their requirements type or by the planning strategy.

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Sales orders (customer independent requirements) are entered from Sales andDistribution. Depending on the requirements type that you have set, customerrequirements can go directly into material requirements planning. This is alwaysdesirable if you want to plan for specific customers.

Sales orders can act as the sole sources of the requirement, for which procurementis then specifically triggered (make-to-order production). Alternatively, they canbe combined with planned independent requirements to form the total requirement.Planned independent requirements can also be consumed.

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Long-term planning can be executed using operative master data: BOMs, tasklists, work centers and material masters. However, you can choose between creating BOMs or task lists for long-term planning, to simulate the effects of data changes on operative planning.

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Material requirements planning represents the first step in Production Planningand Detailed Scheduling.the order dates of thecomponents are determined in backward scheduling using the in-house productiontime or the planned delivery time.

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Capacity planning is usually work center-specific. The role of capacity planning isto schedule all operations from the planned or manufacturing orders so that theproduction plan can be fulfilled.

Test Your Knowledge1. Supply chain planning is an area of the _____________solution and you can perform it by using the SAP ECC mySAP component.Fill in the blanks to complete the sentence.

2. At what level does operative planning along the supply chain occur?

3. Production planning is completed when the planned orders areconverted into___________ or__________________..Fill in the blanks to complete the sentence.

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Unit 2: master data

Lesson: general master data in supply chain:

You can use special procurement types to define transportation lanes between theindividual locations (that is, the plants, vendors and so on) in the supply chain.These transportation lanes define the flow of materials along the supply chain.The supply relationship between a vendor and the plant is stored in ECC in theform of a purchasing info record or an outline agreement.

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For a plant, you must specify an address, a language, a country assignment and a plant calendar.The only functional difference between distribution centers and plants is determined by acorresponding entry in ECC Customizing.

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Customers and vendors are stored in the ECC system as business partners.

Before products can be transferred between two locations in the same supply chain, that is, from a production plant to a distribution center, a corresponding .transportation lane. must exist. In ECC, the information relating to a transportation lane is stored using special procurement keys in the material master.

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The strategy group controls how the independent requirements behave. Moreover,control of the ATP check takes place on the basis of the availability check group.

Lesson: additional master data for in-house production:

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Test Your Knowledge1. Supply chain planning reverts to the locations ________,__________, and________.Fill in the blanks to complete the sentence.2. Supply chain planning is based on materials. Material masters contain______________and __________data.

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Fill in the blanks to complete the sentence.3. The flow of materials in the supply chain is determined using_____________. For example, a material for a production plant can use ____________to______________procure for a distribution center.Fill in the blanks to complete the sentence.4. The production of a material in a plant is described by_____________and_________ . The individual work steps are executed at________________ .Fill in the blanks to complete the sentence.

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Unit 3: demand planning

Lesson: Demand planning

The purpose of Demand Planning is to forecast future demand. It can thereforebe performed at the level of a distribution center,SAP ECC offers Flexible Planning, which is a complex, powerful and flexibletool that supports your company's demand planning and production planningprocesses. The result of the forecast typically takes the form of demand forecastsat the level of distribution centers (DCs) or directly in the production plants.

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The planning levels are defined using characteristics in the information structuresof the Logistics Information System (LIS) on which the planning is based.Therefore, characteristic values are the objects for which you aggregate,disaggregate and evaluate business data.Planning data is stored as key figures. Key figures contain numerical values thatrepresent either a quantity or a value.Time characteristics define the buckets in which you view, plan and store data.

Sales and Operations Planning, SOP comprises two core elements: Flexible planning and Standard SOP.Demand Planning can be performed either as part of flexible planning or in Sales and Operations Planning. In this case, Sales and Operations Planning can be regarded as a special form of flexible planning.In addition to the usual forecasting techniques, flexible planning also allows you to use dedicated macros, which you can then use to define dedicated algorithms for processing the key figures.

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Lesson: executing demand planning

Both consistent planning and level-by-level planning can be executed as part offlexible planning. Consistent planning means that planning data on all planninglevels can be maintained consistently (automatic aggregation and disaggregation).Consistent planning throughout the entire enterprise allows detailed plans to beautomatically consolidated. Level-by-level planning means that the planning datacan only be disaggregated from the higher-level stage into the detail levels.

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