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Transcript of Engineer to Order
Harald VogelSolution Manager SAP for IM&C, SAP AG
Make-to-Order Manufacturing and Engineer-to-Order –Project ManufacturingEnhancements SCM 5.0
SAP for Industrial Machinery & Components
MTO/ETO Manufacturing OverviewMTO/ETO Manufacturing Issues & Pain PointsSAP Solution Overview & PositioningBenefit Areas, KPIs, & BenchmarkingCustomer Success StoriesSummary
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 3
Standard Productsno Product Variants
Multiple Product Variants
Mass-Customization
Customer specific Design/Engineering
MTS, MTO, ETO Manufacturing Models
Make-to-Stock Make-to-Order Engineer-to-Order
Mix of manufacturing models within a company are common
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 4
Market Trends and Industry Needs
Demand for product variety and shorter lead timesNeed to offer multiple product configurations, often also custom specific designHandle changing customer requirementsHighly automated and integrated MTO/ATO processes ETO processes where required with improved project planning
Margin pressure through globalization and increased competitionRequirement of automation for cost reductionAdvanced planning required to achieve high resource utilization
Outsourcing / off shore manufacturingIncreasingly complex supply networkNeed for integration of suppliers into supply network
MTO/ETO Manufacturing OverviewMTO/ETO Manufacturing Issues & Pain PointsSAP Solution Overview & PositioningBenefit Areas, KPIs, & BenchmarkingCustomer Success StoriesSummary
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 6
Key Issues for MTO and ETO-Project Manufacturing
Frequent changes within the processing of orders since parts are not available or capacities are blocked
Expensive short-term corrective action
Frequent disturbances and changes result in long lead times for orders
Long lead times
Low transparency, weakly integrated planning and frequent disturbances and changes result in highly variable lead times and frequent delays
Frequent delays in delivery causing penalty costs
ObservationsKey IssuesNo integrated view on sales orders, projects, production orders purchase orders and stock situation
Too low transparency in the supply chain
Frequent disturbances in production since parts or capacities for the scheduled orders are not available or orders were scheduled in the past and are not updated
High stock levels and low capacity utilization since missing parts and capacity overload are not considered in scheduling
Project planning, engineering and production departments work on different tools without coordination and integrated planning
Weak coordination and integration of project planning, engineering and production
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 7
Why is Advanced Planning for MTO- and ETO - Project Manufacturing important for many industrial manufacturers
Most machinery manufacturers use the MTO and ETO manufacturing model for part of their product mix
MTO- and ETO - Project Manufacturing in SAP R/3 has a large customer base in IM&C, A&D, …
1597 IM&C Customers worldwide
The shortcomings of MRP II and changed business needs require advanced planning and scheduling capabilities
MTO and Project Manufacturing with SAP SCM provides the required improvements for machinery manufacturers
Importance of MTO and ETO-Project Manufacturing
1597 IM&CCustomers
307(15%)
236(11%)
1.477(74%)
APA
EMEAAME
MTO/ETO Manufacturing OverviewMTO/ETO Manufacturing Issues & Pain PointsSAP Solution Overview & PositioningBenefit Areas, KPIs, & BenchmarkingCustomer Success StoriesSummary
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 9
Suppliers & Engineering Partners
Customers & Channels
Design Market & Sell Engineer Procure Manufacture Store & Move Service
Research & Development
Life-Cycle Data Management Sales & Marketing Marketing Management Channel Management
Supply Chain Planning
Manufacturing
Procurement Strategic / Global Sourcing Operational Procurement
Logistics & Distribution Warehouse Management
Transportation Management
Aftermarket Sales & Service
Warranty & Returns Management
Aftermarket Sales & Service
Service Operations Planning and Execution
Service Parts Management
Enterprise Management & Support Analytics Financials
Human Capital Management Enterprise Asset Management
Corporate Services
Supplier Collaboration
Solution Map: Industrial Machinery & Components
New Product Development & Introduction 1
Quote/Sales Cycle Management 2
Demand & Supply Planning 3
5
6
Engineer-To-Order – Project ManufacturingMake-To-Order Manufacturing Make-To-Stock Manufacturing
4
Service Operations Planning and Execution
Service Parts Management
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 10
Project Manufacturing for IM&C and A&D
Integrated project and production scheduling
Constraint-based project and production scheduling
Backlog-free scheduling in feasible plans
Interactive simulation of different planning scenarios
Alerts for early detection of bottlenecks
This scenario for machinery manufacturers integrates SAP ERP Project System (PS) with SAP Advanced Planning and Optimization (SAP APO)
Project ManufacturingSAP APO SAP ERP
Project Scheduling & Capacity Planning
ProjectStructuring
Engineering
Project Execution
Production & Procurement
Execution
Integrated project and materials planning
SAP ERP DP SNP GATP PP/DS TP/VS SNC ICH EM MM SD PP LESSAP SCM
Production Planningand Detailed Scheduling
Production Planningand Control
SAP NetWeaver
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 11
Make-to-Order Manufacturing for IM&C / Discrete
Integration of variant configuration and engineering with order specific bills-of-material between CRM, ERP and SCM
Determination of delivery date considering material and capacity constraints
Constraint based production planning and scheduling – feasible plans
This scenario for industrial machinery & components and discrete manufacturers supports sales, engineering and manufacturing for complex industrial products
SAP ERP DP SNP GATP PP/DS TP/VS SNC ICH EM MM SD PP LESSAP SCM
Production Planningand Detailed Scheduling
Production Planningand Control
SAP NetWeaver
Make-to-Order Manufacturing
SAP SCMSAP ERP
Production Planning & Scheduling
ComponentDemand Planning
Detail Configurationand Engineering -
Order BOM / Routing
Production & Procurement
Execution
Shipping & Assembly
SAP CRM / SAP ERP
Configuration and Sales Cycle
Management
OrderBilling
Sales & Distribution
Determination of Delivery Date
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 12
Make-to-Order & Project Manufacturing for IM&C / Discrete
Business ValueEnhanced multi-level planning and adaptiveness in bottleneck situations order-driven manufacturing
Improved mid- and short-term scheduling and capacity planning
Smooth transition from infinite to finite schedules
Higher flexibility in capacity planning
Better resource utilization, reduced lead times, improved on-time delivery
New Implementation Content / Packages for SCM 5.0New scenario with content in SAP solution manager for accelerated implementation, configuration guide to realize process flow of scenario, required BADI enhancements:
Engineer-to-Order – Project Manufacturing Make-to-Order Manufacturing
Scenario Enhancements in SAP SCM 5.0 (applicable for MTO and ETO)Planning with critical path in a multi-level order network including project orders, sales orders, production orders, planned orders, requisitionsMulti-level scheduling with buffer timesReduction of buffer timesEarliest and latest dates in planned orders and production orders
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 13
ETO, MTO, MTS Manufacturing – mySAP ERP
Enhancements in mySAP ERP:Production supervisor dashboard
task list for release, processing and confirmation of orders on the shop floorKPI key figure monitor
Plant manager, maintenance technician, quality inspector dashboardsManufacturing analytics and performance managementImproved Mobile Asset ManagementShop-Floor Integration
ANSI/ISA S95 complianceManufacturing Partner ProgramxApp MII - Manufacturing Integration & Intelligence (Lighthammer acquisition)
Discrete Industries / Mill Products (DIMP) industry functionality can now be activated in SAP ECC 6.0, no separate SAP ECC DIMP release
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 14
SAP ERP SAP SCM - APO
FIN: WBS-Structure
P-3P-2
P
P-1
PLM: Mat. BOM
6000 Crane6100 Lifting Gear6200 Drive6210 Transmission 6220 Engine6229 Shaft
PLM: Materials
Task A
Task B
Task D
Task C
PLM: Network
6100 Lifting Gear 6200
Drive
Overview Objects and SAP Components
APO: PDS/PPM
6000 Crane6100 Lifting Gear6200 Drive6210 Engine6220 Transmission6229 Shaft
APO: Products
Task A
Task B
Task D
Task C
APO PP/DS: Project Order
6100 Lifting Gear 6200
Drive
PP: Order 6200 Drive 6220
Engine
MM/SRM: Requisition10: 6229 Shaft 1PC
MM-IV: Inventory
PlantStock
OrderStock
ProjectStock
APO PP/DS: Order6200 Drive 6220
Engine
PP/DS: Requisition10: 6229 Shaft 1PC
PP/DS: Inventory
PlantStock
OrderStock
ProjectStock
CIF
CIF
CIF
APO: Focus PDS (WBS)
PDS – Production Data Structure(formerly RTO)
PLM: WBS BOM
Order BOM also possible!
CIF
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 15
Project Planning – Project Structuring
Project Planning
AdvanceProcurement Engineering
Engineering Change
Management
Quality Assurance &
Control
ManufacturingExecution
Shipping,Assembly &
Start-Up
Production Planning &
Optimization
Production Scheduling
WBS structure
Networks structure
Jan Feb March Apr May June July
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 16
Project Planning – Project Structuring
Project Planning
AdvanceProcurement Engineering
Engineering Change
Management
Quality Assurance &
Control
ManufacturingExecution
Shipping,Assembly &
Start-Up
Production Planning &
Optimization
Production Scheduling
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 17
Advanced Project Scheduling and Capacity Planning
Schedule infinite / finite Remove Backlog – Feasible PlansOptimization to reach global planning goals for all projectsSimulation to determine feasible project end date in quotation phasePlanning on pool capacities Alert for violation of project end date
Integration SAP ERP and SAP SCMTransfer SAP ERP network to SAP APO project orderTransfer scheduling results back
Advanced Project Scheduling & Capacity Planning
Project Planning
AdvanceProcurement Engineering
Engineering Change
Management
Quality Assurance &
Control
ManufacturingExecution
Shipping,Assembly &
Start-Up
Production Planning &
Optimization
Production Scheduling
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 18
Integration of ERP PS network to APO Project Order
Part of Core Interface (CIF) integration model(Transaction CFM1)
Select networks to be transferred via order type and plant
BADIs available for more specific selection
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 19
Integration of ERP PS network to APO Project Order
After integration model is active networks are transferred from ERP to APO
After scheduling of project order in SAP APO scheduled dates are updated in dispatched dates in SAP R/3 network, status is set to DSEX (date scheduled in external system)
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 20
Rough-Cut Project Planning in SAP APO
“blocked” pool capacity for project,
no dispatching on specific capacity
Project Planning Production PlanningLevel Rough-cut planning (project order) Detailed planning (order routing)
Resources Pool capacities (machine group) Specific capacities (machine)
CapacityReduction
Capacity Consumption through orders in production planning possible (project solution)
Capacity reduction through confirmation
Note 713088required
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 21
Version 000Active Version
Simulative Project Dispatching in SAP APO –Example: Find Delivery Date for Customer Quotation
Version 001Simulation versions
Copy to active Version
Create SimulationVersion
Evaluate Alternatives to reduce Capacity Overload:
Work OvertimeReduce durationExternal processingReschedule orders
Schedule finite
Simulative Project Dispatching and Capacity Levelling
Choose Alternative determining feasible delivery date
Note 730363required
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 22
Engineering: WBS BOM and WBS routing in SAP R/3
Copy WBS BOM from existing material BOM / WBS BOM
Edit/Add/Delete components in WBS BOM
Copy WBS routing from existing material routing / WBS routing
Engineer and insert new assemblies for specific assembly
PM-1000
Material BOM
Op. 10
Op. 20
Op. 30
Material Routing
PM-1000
WBS BOM
Op. 10
Op. 20
Op. 30
WBS Routing
Material PM-1000 Material PM-1000
Material PM-1000WBS-Element P-5000-01
Material PM-1000WBS-Element P-5000-01
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 23
Transfer of WBS BOM/routing to SAP APO Focus PDS
Transaction: CURTO_CREATE_FOCUS
Transfer WBS BOM and WBS Routing to SAP APO Focus PDS (Production Data Structure)
Transfer needs to be triggered manually
Note 711106 required to transfer WBS routing together
with WBS BOM without needing a new production
version in APO
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 24
Project Structure in SAP ERP
Controlling
Schedule
Transfer Network to SAP APO Project Order
Production Planning and Scheduling for Material Components
Engineering in SAP ERP
Release Assemblies for Production and Procurement
Product Structurein WBS BOM
(Project specific)
MaterialComponents
Transfer
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 25
Engineer-to-Order – Project Manufacturing –Sense & Respond Approach for Adaptive Manufacturing
Sense & Respond
Interactive Scheduling to reduce late orders and
capacity overload
Manufacturing & Procurement Execution –
Changes, Exceptions
Production Planning and
Optimization Run
Monitor Alerts on Projects, Main Assemblies
Project Planning
AdvanceProcurement Engineering
Engineering Change
Management
Quality Assurance &
Control
ManufacturingExecution
Shipping,Assembly &
Start-Up
Production Planning &
Optimization
Production Scheduling
Simulate and compare alternative solutions,
execute decision
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 26
Production Planning with Optimization and Backlog Resolution
Material requirements planning batch run for project order components multi-levelBacklog resolution run considering capacity constraints for stable sequence of orders in the current weekOptimization run considering capacity constraints in the short term Infinite optimization in the mid/long term
Business BenefitsCapacity feasible plan and stable sequence of orders in current weekCapacity optimized plan in the short termInfinite plan with least delay and orders with buffers for flexibility in mid-term, where it is easy to shift/extend capacity
Production Planning with Optimization and Backlog Resolution
Project Planning
AdvanceProcurement Engineering
Engineering Change
Management
Quality Assurance &
Control
ManufacturingExecution
Shipping,Assembly &
Start-Up
Production Planning &
Optimization
Production Scheduling
Project Planning
Manufacturing
Procurement / Warehouse
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 27
Step Function
Production Planning with Optimization and Backlog Resolution – Batch Run
1 Material Requirements Planning(BOM Explosion)
2 Finite Backlog Resolution on bottleneck resources (current week)
3 Finite Optimization on bottleneck resources (short term)
4 Infinite Optimization (Bottom Up) in mid/long term
Plan VersionSimulation Versions
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 28
Material Requirements Planning – BOM Explosion
Assembly Order
Production Orders
Requisition/PurchaseOrders
Project Order
10
1
1
1
1
10
1
30
20
1
10
20
10 1
10
1
1
Project specific
Non project specificExternalProcurement
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 29
Material Requirement Planning with Project specific BOM and Routing
Planning Run – Source Determination
Requirement for Individual WBS/project segmentMaterial PM-1000, WBS-El. P-5000-01
Use Focus PDSwhen existing
1
Otherwise use Material PDS
2Material BOM Material Routing
Production Data Structure (PDS)
Focus Production Data Structure (PDS) –Project Specific
PM-1000WBS BOM
Op. 10
Op. 20
Op. 30
WBS Routing
Material PM-1000WBS-El. P-5000-01
Material PM-1000WBS-El. P-5000-01
Material PM-1000 Material PM-1000
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 30
Optimization
OptimizationGenetic Algorithms / Constraint PropagationMulti-Criteria Optimization -Delay, Lead Time, Setup Time/CostConstraints –Due Date, Activity/Order relations, Material availability, Capacity Availability, …
Finite optimization in the short termInfinite optimization (bottom up) in the mid/long term – planning with buffers to increase flexibility
Business BenefitsFeasible, capacity optimized plan in the short termDelivery date optimized infinite plan in the mid/long term
Project Planning
AdvanceProcurement Engineering
Engineering Change
Management
Quality Assurance &
Control
ManufacturingExecution
Shipping,Assembly &
Start-Up
Production Planning &
Optimization
Production Scheduling
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 31
Production Scheduling
Project Planning
AdvanceProcurement Engineering
Engineering Change
Management
Quality Assurance &
Control
ManufacturingExecution
Shipping,Assembly &
Start-Up
Production Planning &
Optimization
Production Scheduling
Monitor alerts on projects / main assembliesPegging – automatic matching of demand and supply Visualization of complete order context Alerts - Early warning system late orders, bottlenecks
Interactive scheduling to reduce late projects, orders Filter on alerts in order context, sort late orders by delay Detect critical path for order contextReduce buffers on critical pathReduce duration of project order operationsMulti-level forwards/backwards scheduling
Interactive scheduling to reduce capacity overloadEvaluate resource utilization, filter on overloadAlternative work centers, sequences, production versionsSwitch to external procurement, subcontractingWork overtime, run additional shifts
Adaptiveness and SimulationWhat-if simulation, compare alternatives
Project Planning
Manufacturing
Procurement / Warehouse
New inSCM 5.0
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 32
Production Scheduling
Project Planning
AdvanceProcurement Engineering
Engineering Change
Management
Quality Assurance &
Control
ManufacturingExecution
Shipping,Assembly &
Start-Up
Production Planning &
Optimization
Production Scheduling
Monitor alerts on projects / main assembliesPegging – automatic matching of demand and supply Visualization of complete order context Alerts - Early warning system late orders, bottlenecks
Interactive scheduling to reduce late projects, orders Filter on alerts in order context, sort late orders by delay Detect critical path for order contextReduce buffers on critical pathReduce duration of project order operationsMulti-level forwards/backwards scheduling
Interactive scheduling to reduce capacity overloadEvaluate resource utilization, filter on overloadAlternative work centers, sequences, production versionsSwitch to external procurement, subcontractingWork overtime, run additional shifts
Adaptiveness and SimulationWhat-if simulation, compare alternatives
Project Planning
Manufacturing
Procurement / Warehouse
New inSCM 5.0
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 33
Transparency, Visualization and Coordination of the complete Supply Chain
VisualizationD
ata Exchange
Routings
Bill-of-materialproject/order specific
Networks
Stock
Customer OrdersOrder 4711Robot & Control Cabinet
Production Orders
Planned Orders
Purchase Order / Requisition
PO 4711Shaft Drive
Project Planning
Manufacturing
Procurement / Warehouse
Supply Chain in SAP APO
Vendors, Customers, Plants
Production Capacities
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 34
Transparency in the Supply Chain through „Pegging“
Engineering Shipping
Project Planning and Execution
Installation& Start-Up
Procurement
AssemblyMechanical
Assembly Electrical
ManufacturingMechanical
ManufacturingElectrical
Mechanical Manufacturing
Electrical Manufacturing
Transparency and Visualization of the complete Order ContextIntegrated visualization of project planning and manufacturingAutomatic match of demand and supply down to non customer specific partsVisualization of status and progress for project and production orders
Customerspecific
Non customerspecific
ExternalProcurement
In-HouseAssembly
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 35
Transparency through Pegging and Alerts in Real-time
Assembly Order
Production Orders
PurchaseOrders
Project Order
20
20
20 1
10
1
1
1
2
2
110
1
(+10)
(-10)
Excess
Delay
Shortage
30
20
210
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 36
Transparency through Pegging and Alerts
Engineering Shipping
Project Planning and Execution
Installation& Start-Up
Procurement
AssemblyMechanical
Assembly Electrical
ManufacturingMechanical
ManufacturingElectrical
Mechanical Manufacturing
Electrical Manufacturing
Visualization of disturbances on project / order levelUse of network alerts to aggregate disturbances to assembly / project levelProblems in the order structure can be visualized on project level
Customerspecific
Non customerspecific
ExternalProcurement
In-HouseAssembly
Delay
Problem in project order
Problem in assembly
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 37
Monitor Projects / Main Assemblies with Delay
ProductionPlanner
Alert monitor – projects / main assemblies sorted by delay
Alert monitor – projects / main assemblies sorted by delay
Identify most critical projects /
orders
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 38
Monitor Projects / Main Assemblies with Delay
ProductionPlanner
Alert monitor – projects / main assemblies sorted by delay
Alert monitor – projects / main assemblies sorted by delay
Navigate to order processing for
detailed analysis
Identify most critical projects /
orders
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 39
Production Scheduling
Project Planning
AdvanceProcurement Engineering
Engineering Change
Management
Quality Assurance &
Control
ManufacturingExecution
Shipping,Assembly &
Start-Up
Production Planning &
Optimization
Production Scheduling
Monitor alerts on projects / main assembliesPegging – automatic matching of demand and supply Visualization of complete order context Alerts - Early warning system late orders, bottlenecks
Interactive scheduling to reduce late projects, orders Filter on alerts in order context, sort late orders by delay Detect critical path for order contextReduce buffers on critical pathReduce duration of project order operationsMulti-level forwards/backwards scheduling
Interactive scheduling to reduce capacity overloadEvaluate resource utilization, filter on overloadAlternative work centers, sequences, production versionsSwitch to external procurement, subcontractingWork overtime, run additional shifts
Adaptiveness and SimulationWhat-if simulation, compare alternatives
Project Planning
Manufacturing
Procurement / Warehouse
New inSCM 5.0
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 40
Examine Alerts for Project Order
ProductionPlanner
Project order – alerts on project order, operations, main assemblies
Project order – alerts on project order, operations, main assemblies
Overview on problems in
project order for WBS element,
operations, components
Enhancedin SCM 5.0
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 41
Overview on problems in
project order
Examine Alerts for Project Order
ProductionPlanner
Project order – alerts on project order, operations, main assemblies
Project order – alerts on project order, operations, main assemblies
Alerts for assemblies in project order,
sorted by delay
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 42
Order Context for Project – Sorted by Delay
ProductionPlanner Order context for project orderOrder context for project order
Sorted by delay to identify most
critical assemblies in the structure
New in SCM 5.0
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 43
Order Context for Project – Filter by alert type
ProductionPlanner
Filter order context by alert
types
Order context for project orderOrder context for project order
New in SCM 5.0
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 44
Order Context for Project – Filter by alert type
ProductionPlanner
Order context with filter – only
error alerts
Order context for project orderOrder context for project order
New in SCM 5.0
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 45
Order Context for Project – Navigate to Planning Board
ProductionPlanner
Navigate to planning board for order
context
Order context for project orderOrder context for project order
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 46
Planning Board – Order Context for Project Order
ProductionPlanner Detailed Scheduling Planning BoardDetailed Scheduling Planning Board
Operations sorted by project
and date
Filtered to the activities in the order context of the project:
•Mark project order•Button single/multi-level up/down•Button Invert selection•Button Hide selection
Filter on order context of the project
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 47
Planning Board – Critical Path Heuristic
ProductionPlanner Detailed Scheduling Planning BoardDetailed Scheduling Planning Board
Determine critical path (heuristic)
New in SCM 5.0
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 48
Planning Board – Critical Path Heuristic
ProductionPlanner Detailed Scheduling Planning BoardDetailed Scheduling Planning Board
Critical path is highlighted(list display
also possible)
New in SCM 5.0
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 49
Planning Board – Reduce planning-related Minimum Intervals (Buffers)
ProductionPlanner Detailed Scheduling Planning BoardDetailed Scheduling Planning Board
Call maintenance of planning related
minimum intervals (buffers)
New in SCM 5.0
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 50
Planning Board – Reduce planning-related Minimum Intervals (Buffers)
ProductionPlanner Maintenance of-planning related
minimum intervalsMaintenance of-planning related
minimum intervals
Reduce minimum interval between
orders or between operations manually
Call mass maintenance
New in SCM 5.0
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 51
Planning Board – Reduce planning-related Minimum Intervals (Buffers)
ProductionPlanner Maintenance of planning related
minimum intervalsMaintenance of planning related
minimum intervals
Mass maintenance to reduce or increase by
absolute value, %, set to fixed value,
set to process-related minimum interval (+ x%)
More complex logic for mass maintenance possible by BADI
New in SCM 5.0
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 52
Planning Board – Reduce planning-related Minimum Intervals (Buffers)
ProductionPlanner Maintenance of planning related
minimum intervalsMaintenance of planning related
minimum intervals
Example: All planning related intervals between orders and operations on
the critical path were reduced to the process-related value to reduce
overall lead time
New in SCM 5.0
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 53
Planning Board – Multi-level backwards Scheduling Heuristic (infinite)
ProductionPlanner Detailed Scheduling Planning BoardDetailed Scheduling Planning Board
Reschedule order context multi-level
backwards (heuristic)
New in SCM 5.0
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 54
Planning Board – Multi-level backwards Scheduling Heuristic (infinite)
ProductionPlanner Detailed Scheduling Planning BoardDetailed Scheduling Planning Board
No more problem with orders in the past on
previously critical path
Detect new critical path
New in SCM 5.0
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 55
Planning board – Reduce planning-related Minimum Intervals (Buffers)
ProductionPlanner Detailed Scheduling Planning BoardDetailed Scheduling Planning Board
New critical path
Call maintenance of planned minimum intervals (buffers)
New in SCM 5.0
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 56
Planning board – Reduce planning-related Minimum Intervals (Buffers)
ProductionPlanner Detailed Scheduling Planning BoardDetailed Scheduling Planning Board
Example: No further reduction possible, all
planning-related values were already reduced to process-
related values
New in SCM 5.0
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 57
Planning Board – Multi-level forwards Scheduling Heuristic (infinite)
ProductionPlanner Detailed Scheduling Planning BoardDetailed Scheduling Planning Board
Reschedule order context multi-level
forwards to determine new
realistic end date (heuristic)
New in SCM 5.0
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 58
Planning Board – Multi-level forwards Scheduling Heuristic (infinite)
ProductionPlanner Detailed Scheduling Planning BoardDetailed Scheduling Planning Board
New realistic end date for assembly
determined by forward scheduling
New in SCM 5.0
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 59
Production Scheduling
Project Planning
AdvanceProcurement Engineering
Engineering Change
Management
Quality Assurance &
Control
ManufacturingExecution
Shipping,Assembly &
Start-Up
Production Planning &
Optimization
Production Scheduling
Monitor alerts on projects / main assembliesPegging – automatic matching of demand and supply Visualization of complete order context Alerts - Early warning system late orders, bottlenecks
Interactive scheduling to reduce late projects, orders Filter on alerts in order context, sort late orders by delay Detect critical path for order contextReduce buffers on critical pathReduce duration of project order operationsMulti-level forwards/backwards scheduling
Interactive scheduling to reduce capacity overloadEvaluate resource utilization, filter on overloadAlternative work centers, sequences, production versionsSwitch to external procurement, subcontractingWork overtime, run additional shifts
Adaptiveness and SimulationWhat-if simulation, compare alternatives
Project Planning
Manufacturing
Procurement / Warehouse
New inSCM 5.0
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 60
Interactive Scheduling to reduce Capacity Overload
Engineering Shipping
Project Planning and Execution
Installation& Start-Up
Procurement
AssemblyMechanical
Assembly Electrical
ManufacturingMechanical
ManufacturingElectrical
Manufacturing
Consideration of Capacity ConstraintsDisplay capacity utilizationDetect capacity overload situationsConsider capacity constraints in interactive scheduling
t
t
t
Capacity Load
Engineering
Lathe working
Assembly
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 61
What-if Simulation of Alternatives to reduce Capacity Overload
Mechanical Manufacturing
Goal: Reduce Capacity Overload or Delay Simulation of different planning alternatives – no changes to active planning versionCompare different alternativesCopy chosen alternative to active planning version
Alternative Work Center / Excess Work
AlternativeProduction Version
External Procurement / Subcontracting
Stock Transfer
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 62
Manufacturing Execution
Project Planning
AdvanceProcurement Engineering
Engineering Change
Management
Quality Assurance &
Control
ManufacturingExecution
Shipping,Assembly &
Start-Up
Production Planning &
Optimization
Production Scheduling
XI
SAPERP
SAP NETWEAVER
SAPSCM
Automation Layer
ManufacturingIntelligenceDashboards
MES
Manufacturing integrationLeverages SAP NetWeaver to integrate manufacturing on the shop floor with enterprise and supply chain business processes
Manufacturing operationsManufacturing planning, execution, quality, maintenance, and environment, health, and safety processes
Manufacturing intelligence dashboardsRole-based, configurable, dashboards deliver decision support to production personnel
Close the loop betweenthe factory and the enterprise
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 63
Manufacturing Execution
Project Planning
AdvanceProcurement Engineering
Engineering Change
Management
Quality Assurance &
Control
ManufacturingExecution
Shipping,Assembly &
Start-Up
Production Planning &
Optimization
Production Scheduling
Resource Breakdown & ResolutionWork center breakdown on shop floorThe MES System sends an alert to SAP ERP and updates the work center status Production Planner sees the alert on his dashboardHe drills down into the alert to view the machines operating status –on the MES integrated into the dashboardHe invokes his planning and scheduling solution in SAP SCM and finds alternative capacity
Business Benefits“Real-word awareness” actively communicated via dashboards and alerts allowing to respond quickly and resolve the exception
XI
SAPERP
SAP NETWEAVER
SAPSCM
Automation Layer
ManufacturingIntelligenceDashboards
MES
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 64
MTO/ETO Manufacturing Enabled by SAP NetWeaver -Examples
Sales OrderProcessing Engineering
Production Planning & Scheduling
Engineering Change
Management
Quality Assurance &
Control Billing Manufacturing
Execution Shipping Assembly & Start-Up
Manufacturing Integrationintegrates manufacturing documents from the shop floor through partner systems to the ERP system SAP NetWeaver –Exchange Infrastructuretechnology basis for the integration
Manufacturing DashboardsDecision support for plant manager, production supervisor, quality inspector, including partner applications SAP NetWeaver –Enterprise Portalrole based web access to applications in different systems including partnersManufacturing Analytics
e.g. capacity utilization and equipment efficiency reporting for mid- and short term decision support SAP NetWeaver –Business Intelligenceenables to integrate and analyze relevant and timely information
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 65
MTO/ETO Manufacturing Enabled by SAP NetWeaver -Examples
Sales OrderProcessing Engineering
Production Planning & Scheduling
Engineering Change
Management
Quality Assurance &
Control Billing Manufacturing
Execution Shipping Assembly & Start-Up
Warehousing & RFIDautomates the logistics process flow and improves visibilitySAP NetWeaver –Multi-Channel AccessAuto-ID Infrastructure as the technology basis
Order/Project Analyticsprovides information on past delivery performance and order confirmation status SAP NetWeaver –Business Intelligenceenables to integrate and analyze relevant and timely information
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 66
SAP Analytics - Example Capacity Utilization
MTO/ETO Manufacturing OverviewMTO/ETO Manufacturing Issues & Pain PointsSAP Solution Overview & PositioningBenefit Areas, KPIs, & BenchmarkingCustomer Success StoriesSummary
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Tangible Benefits of Advanced Manufacturing Planning
Feasible scheduling and capacity planning
Improved planning, less disturbances and changes in manufacturing
Working capital
Reduction in inventory levels
Improved capacity utilization
Revenue
Less disturbances and short-term corrective actionReduced costs for production planning
Operating cost
Better customer service through on-time-delivery
Reduced delivery lead times through better capacity utilization and reduced time buffers
Increased sales by better on-time delivery
Increased sales by shorter time-to-market for customer specific machinery
EnablersTangible Benefits*
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 69
Benefits of Advanced Manufacturing Planning –Customer Experiences
3.1% Reduction in inventory level
Working capital
Revenue
-68%
-27%
Reduced backlogged production orders
Reduced Express Costs
Operating cost
+9,1%
-15%
Better delivery punctuality
Reduced average lead time
% impactBenefits at Leybold Vaccum*
Operating cost+5%-10%Expected increased Machine Utilization
% impactBenefits at Ortlinghaus*
* Source: Success Stories and Customer Presentations of Leybold Vacuum and Ortlinghaus
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 70
Strategic Benefits of Advanced Manufacturing Planning
Reduced operating costs and working capital by using advanced planning and schedulingBetter transparency, coordination and simulation for improved decision supportDifferentiation and improved customer loyalty by higher service levels, better on-time delivery and reduced delivery lead times
MTO/ETO Manufacturing OverviewMTO/ETO Manufacturing Issues & Pain PointsSAP Solution Overview & PositioningBenefit Areas, KPIs, & BenchmarkingCustomer Success StoriesSummary
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Successful Customers Using mySAP SCM for Advanced Manufacturing Planning (Examples)
Project Manufacturing,Demand PlanningMulti-level ATP
Project Manufacturing
Project Manufacturing
Projects Manufacturingin New Product Development
MTO Manufacturing Order BOM in Implement.
MTO ManufacturingVariant Configuration
Demand Planning (DP/SNP)Production Planning
Demand Planning (DP/SNP) Available-to-Promise
Demand PlanningAvailable-to-Promise (ATP)
Live Pre-Solution
Live Pre-Solution
In Implementation SCM 4.0/4.1
Live Pre-Solution
Live SCM 4.1 in impl.
Live
Live
Live
Live
Presentation (D)
Press Release
Presentation (D)Quote in SAP Info
Success Story
Presentation (D)Success Story planned
Success Story (D), Presentation (E, D)Webcast E / D
Success Story (D), Presentation, Webcast E / DSAP Info Article E / DSuccess SlideCase Study E / D
Success Slide
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Make-to-Order & Project Manufacturing – Demag
Project Objective / ChallengesAssemble-to-order scenario with multiple product variantsShort assembly lead times requires demand forecasting for components and ATP check on componentsIn parallel project manufacturing scenario with customer specific engineering and long lead times
Implementation HighlightsDemand forecasting on componentsMulti-level ATP check against componentsAdvanced Manufacturing Planning for Assemble-to-Order- and Project Manufacturing
Advantages Service level > 95%Constant, high capacity utilizationFast reaction by interactive re-schedulingLow TCO, hardware savings
ComponentsSAP SCM (APO), SAP R/3
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 74
Successful Customers using mySAP SCM Advanced Planning & Optimization (APO) - partial list
MTO/ETO Manufacturing OverviewMTO/ETO Manufacturing Issues & Pain PointsSAP Solution Overview & PositioningBenefit Areas, KPIs, & BenchmarkingCustomer Success StoriesSummary
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 76
Advanced Planning for MTO and ETO – Project Manufacturing - Summary
Improvements in SCM 5.0New approach for mixed finite/infinite scheduling for MTO and ETO manufacturing Stable, feasible plan in the short term (batch run)
Stable forwards heuristic in current weekFinite Optimization in short termInfinite Optimization in mid/long term
Improved interactive scheduling for complex structuresCritical Path heuristic (infinite)Reduction of buffers between operations and ordersMulti-level backward/forward heuristics (infinite)
Further improvementsEarliest and latest dates calculation for ordersSelection in planning board: single/multi level up/down, invert selection and hide to filter on order contextSort by delay or other fields in order contextFilter in order context for different alert types
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 77
Questions?
Thank you for your attention.
© SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 78
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