SAP APO Overview Vijay Job,SCM Lead Consultant. Contents Supply Chain Management Why SCM over and...
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Transcript of SAP APO Overview Vijay Job,SCM Lead Consultant. Contents Supply Chain Management Why SCM over and...
SAP APO Overview
Vijay Job,SCM Lead Consultant
ContentsSupply Chain Management Why SCM over and above ERP Advantages of APO APO Architecture APO Components What is live Cache Data Mart Configuration InfoObjects Data Storage in APO Planning Architecture Master Planning Object Structure
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The Supply Chain: from Original Supply to Final Consumption
Increase Customer Responsiveness at Least Cost
Manufacturing DistributionSupplier
INFORMATION FLOW
Retail Outlet Consumer
Supply Chain Optimization
CASH FLOW
Transfer Transfer Transfer Transfer
Confidential © Copyright 2008 Wipro Ltd
Supply chain management (SCM) is the process of - planning, implementing and controlling the operations of the supply chain with the purpose to satisfy customer requirements as efficiently as possible.
Begins and ends with the customer.
SCM spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point-of-origin to point-of-consumption.
Coined by consultant Keith Oliver, of strategy consulting firm Booz Allen Hamilton in 1982.
Confidential © Copyright 2008 Wipro Ltd
Supply chain management (SCM) is the process of planning, implementing, and controlling the operations of the supply chain with the purpose to satisfy customer requirements as efficiently as possible.
Supply Chain Management encompasses the planning and management of all activities involved in sourcing, procurement, conversion, and logistics management activities. It includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers.
Supply Chain Management integrates supply and demand management within and across companies.
Innovation….Companies today are being forced to adapt to changes in the marketplace in order to preserve profitability Changing consumer buying patterns
Increased number of SKUs Evolving trade channel complexity
Polarization of markets Shortened cycle times Shift in balance of power
Changing brand loyalty / retailer exerting greater influence
Increased demand for value added programs VMI / custom packs
Dramatically lower inventory levels and reduce working capital
Improved customer service More accurate forecasting Lower cost sourcing of finished goods
and raw materials Optimizing decisions in an increasingly
complex business environment Reduce manufacturing cycle time Deliver reliability Responsiveness/ flexibility
Supply chain activities can be grouped into:
Strategic – Network optimization, partnerships, product design, IT infrastructure, Make or Buy decisions.
Tactical – Sourcing, production & inventory decisions, Transportation strategy, benchmarking with competition
Operational level – Daily production & distribution planning, master planning, production scheduling, forecasting and demand management.
Confidential © Copyright 2008 Wipro Ltd
APO Advanced Planning and Optimization is the planning component within the mySAP SCM solution. APO is an acronym for advanced planner and optimizer. This is a large component of sap's new dimension products.
APO is an entire suite of supply chain planner applications that increase overall knowledge of the supply chain and provide forecasting, planning and optimization.
APO is not a standalone application and requires a backend erp system such as SAP R/3 for the execution. SAP R/3 communicate with APO using the Core interface Functionality (CIF) which supplies SAP APO with the master and the transaction data in the real time
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High performance using liveCache technology Global server: integrates multiple OLTP systems Collaborative planning via the internet Simultaneous material and finite capacity
requirements planning Cross-plant optimization of the resource load Sequence and setup time optimization of orders Transportation optimization with route planning Evaluation and analysis of orders Seamless integration between APO and R/3
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First Demand Planning - Of course R/3 provides Demand Management and also Statistical Forecasting tools. However the architecture in APO-DP is totally different and based on characteristic value combinations with liveCache for very fast data access. This allows easy aggregation and disaggregation. Moreover once you create the CVCs they can be modified easily with the associates transaction data using Realignment. The macro functionality in DP provides quick and user-friendly computations on the transaction data. Moreover the Statistical Forecasting toolset in APO-DP is more comprehensive to that in R/3. Not sure if MLR is possible in R/3. Promotion planning and Life-cycle planning are some nice features in APO-DP.
Supply Network Planning in APO can be mapped to DRP in R/3. But then APO offers planning cross-plant for a complete supply chain network. SNP in APO offers basic Heuristic-based planning (quite similar to R/3 DRP) along with advanced planning features like Optimization and Capable-to-Match (order-based planning for prioritized demand matching). Moreover Deployment and Transport Load Builder functionalities provides automatic planning in case of short supply followed by consolidation of deliveries according to transportation capacities.
Simultaneous material planning and finite capacity planning of production, storage and transportation.
Planning of critical components that use bottleneck resources.
Cross plant optimization of resource utilization.
Prioritization of requirements and receipts .Detailed distribution planning.Collective conversion of stock transfer
requisitions.Decision support with What-If.Optimizes plan in line with business goalsSeamless integration between APO and R/3
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APO PPDS is very close to R/3 Production Planning functionalities and relies on the same set of master data transferred from R/3 to APO via CIF. However the multitude of Heuristics (both Production Planning and Scheduling) provides automation and gives more time to the Planners and Schedulers in focusing on more important tasks. The Detailed Scheduling functionality especially Planning Board in APO is a rich graphical and intuitive application for carrying out sequencing of activities. Likewise the Product Planning Table and Product Overview features of APO provides a cockpit view of the Production Plan and allows drilling down to exceptions.
Cross plant planning: Production locations are connected, Products und Assemblies planned together
Simultaneous material and capacity requirements planning
Multi level capacity requirements planning; bi-directional propagation of order changes.
Extensive detailed scheduling and optimization possibilities
Global multi-site real time ATP. For production, ATP utilizes PP/DS
functionality to check against the actual order network, thereby including all capacity constraints.
Applying rules-based ATP is the basis for checking for alternative products in alternative locations as well as for considering production across all product levels.
Integration with legacy system.
OLTP
R/3 R/3Legacy
OLTP
Non R\3
OLTP
Non R\3
OLTP
Application Link Enabling
Model Generator, Mapping, Connectivity
BW
APO
Solvers
APO
liveCacheliveCache
Demand
Planning
Detailed
Scheduling
ProductionPlanning
SupplyNetworkPlannin
g
AvailableTo
Promise
SC Cockpit
BWLIS
SC Manufacturing / Procurement
APOAPO
R/3R/3
Flexible Planning
Standard SOP
Demand Planning(DP)
Sales Global Available-to-Promise (Global ATP)
Supply NetworkPlanning (SNP)
Production Planningand Detailed
Scheduling (PP/DS)
Material RequirementsPlanning (MRP)
Demand Management
CapacityRequirements
Planning (CRP)Transportation
Planning & VehicleScheduling (TP/VS)
Demand Planning (DP) The Demand Planning component is a toolkit of
statistical and collaborative forecasting techniques that helps you create accurate forecasts and plans
Supply Network Planning (SNP) Using the Supply Network Planning and
Deployment component you can develop a model of your entire supply network and plan based on all its constraints
Production Planning / Detailed Scheduling (PP/DS) This component can generate production plans
and schedules that optimize resources
Global Available To Promise (GATP) The Global Available To Promise component uses
a rules based strategy to ensure you can deliver what you promise to your customers
Transportation Planning / Vehicle Scheduling (TP/VS) This component helps you to select the optimum
transportation route and schedules vehicle resources
Supply Chain Cockpit (SCC) The Supply Chain Cockpit is a graphical
instrument panel for modeling, navigating, and controlling all the links in the supply chain.
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Demand PlanningPlanner’s KnowledgeTask-specific planning tools Flexible views Graphics Promotional planning Life cycle management Cannibalization Accuracy reporting
Statistical MethodsMulti-model approach Average models Exponential smoothing Causal factors Trend dampening Model combination Pick best
Demand Planning Data Mart
Anticipation ofFuture Demand
Information
Collaborative forecasts
Order & shipmentactuals & history
Cost
POS data
Nielsen / IRI data
...
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S u p p l i e r s
C u s t o m e r s
D i s t r i b u t i o n C e n t e r s
M a n u f a c t u r I n g U n i t s
Key Processes - Distribution Planning
Supply and Distribution Network Planning
Supply Network Planning and Optimization
Supply/Demand balancing
Vendor Managed Inventory (VMI)
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SNP Distribution NetworkCustomerdemands
DistributionCenters
Plants
Transport Order Production Order
Suppliers
Available to PromiseGlobalRules Based
Product Allocation Material Substitution Vendor Managed Inventory
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What is liveliveCache ?Cache ?
Main objective = higher performance:
Performance critical routines (in C++) are running in address space of liveliveCache Management System Cache Management System
=> no heavy data transfer between application and data storage
> 1 ms
Application
Data Storage
< 10 µs
liveliveCacheCache
ApplicationApplication
Data StorageData Storage
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Application Server
ABAP-Application Programexec sql.
Execute procedure “Schedule_order”( OUT : var1,
IN : table1,IN : var2)
endexec.
liveCacheliveCache
Optimized Method CodingSchedule_order
Optimized Data Structures
liveCache Technology
Avoid disk I/O through shared, buffered data
Hold all application data in memory
Address large memories
Ready to run on 64-bit systems
Optimized data structures
Support application-specific data structures (e.g. store BOM as a tree rather than a relational table)
Built-in business functionality
Run application logic where the data is stored
Aggregate OLTP database information in main memory
Confidential © Copyright 2008 Wipro Ltd
Live cacheTime series objects
Live cacheOrders
Info Cube
•Data Stored in Bucket with no reference to
order
•Storage method suitable for tactical planning
•Usual method for saving current DP data
•Data Stored with reference to the orders
•Storage method suitable for operative
planning
•The data is stored in an Info cube
•This storage method is suitable for data
backups, old planning data and actual sales
history
Info Object within BW
Business evaluation objects are referred to as the Info objects in the BW
Info objects are divided into :-- Characteristics
- Key figures - Units - Time Characteristics
Info objects have three basic functions Component of an Info source, as a field of a structure Formation of an Info cube by representing key figures and
characteristics Complete an info source with Master data and Hierarchies
Planning objects are called as characteristics
Characteristics are discrete names Standard characteristics are predefined
in APO Custom characteristics can be created
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Data is represented as a numerical value either a quantity or monetary value (Forecast, Safety Stock, etc..)
Different data storage can be used to store key figure
Standard key figures are predefined in APO
Custom key figures can be created
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Star Schema Properties
1. One business process is modeled at a time
2. Data storage optimized for reporting by “Star Schema”
3. Related Characteristics structured together in
Dimensions
4. The Key Figures, KPI’s and other calculations form the Facts
5. This structure is the same for all Application Areas
Example: Sales Data Model
Queries that can be addressed are:
• Who did we sell to?
• What did we sell?
• Who sold it?
• Sales quantity?
• Who is our competitor?
• When did we sell?
• Sales comparison
• Trends
• Reasons for Rejection
Info Objects
Source SystemR/3 Excel
Info Source
Update Rules
Metadata
Transfer Rules
BWLegacy
Info Area
Info Cubes
Catalogs Key Figures
Characteristics
OLTP System 1
InfoCubes
Communication structure
Transfer Structure
Extract Source Structure
Transfer Structure
Transfer Structure
Extract Source Structure
Transfer Structure
Transformation rules
Update Rules
APO Server
Staging Engine
OLTP System 2
InfoSource
Master Planning Object Structure
Planning Area 1 Planning Area 2 Planning Area n
Planning Book 1 Planning Book 2…
Data View 1
Data View 2….
Contains plannable characteristics for one or more planning area
Specific characteristics are required for Supply Network Planning
Structure on which all other planning object structures are based.
Prerequisite for being able to create planning area
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Pre-defined InfoObject can automatically be added
Map existing InfoObjects to Planning Object Structure
Central data structure Groups together parameters that define
the scope of planning activities Determines where and how planning
results are saved Contains Characteristics and Key Figures Maps where key figures for the planning
area are stored (InfoCube, Orders in liveCache, Time Series in liveCache
Planning Areas can be relevant for DP and SNP at the same time
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Planning Area Administration
Central point of control:
Planning Area configuration
Key Figure Characteristic Attribute Master Planning Object
Structure Aggregate Storage Buckets Profile Planning Area