Supply Chain Management with APO: Structures, Modelling Approaches and Implementation Pecularities

346 Pages·2004·13.371 MB·English

by  Dr. Jörg Thomas Dickersbach (auth.)

Supply Chain Management with APO
Springer-Verlag Berlin Heidelberg GmbH
Jo rg Thomas Dickers bach
Supply Chain
Management
withAPO
Structures, Modelling Approaches
and Implementation Pecularities
With 288 Figures
and 53 Tables
i
Springer
Dr. Jorg Thomas Dickersbach
dickersbach@ gmx.de
ISBN 978-3-662-10147-6 ISBN 978-3-662-10145-2 (eBook)
DOI 10.1007/978-3-662-10145-2
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Preface
This book rather addresses the question "how to implement APO" than
"why to implement APO" and is written for people who are involved in
APO implementations. It is based on the APO releases 3.0 and 3.1- differ
ences are pointed out at the according opportunities. The aim of this book
is to provide the reader with the necessary background to start with first
own steps in the system in the right direction by explaining the architecture
and some basic structures of APO and introducing common modelling ap
proaches.
Although there are already several books published about APO and there is
a detailed documentation of the functions in the system, we have experi
enced a distinct need for explanations regarding the structure and the inter
action of systems, modules and entities. The understanding of the possi
bilities and necessities on entity level is the basis for the modelling and the
implementation of the business processes. This book mentions additionally
many issues which have a great relevance in implementations, but are not
mentioned in the literature.
In our experience with APO projects we noticed an ever greater need
(which remains more often than not unaware for much too long) to clarify
the implications of the SCM approach for the implementation projects.
Since SCM projects with APO differ significantly from R/3 projects, there
are some typical traps in which even experienced R/3 project managers are
apt to fall which cause severe problems up to project failure. Especially in
the first chapter common mistakes in SCM projects are pointed out.
The book does not claim to describe all APO functionalities and model
ling possibilities - since the modelling approaches are nearly unlimited
and the product is still evolving, this would be impossible. Instead the fo
cus is set on explaining common approaches especially for the high tech,
the consumer goods and the chemical industries. Not included into the
scope of this book are the scenarios and functionalities especially for
automotive industry and repetitive manufacturing, and some other func
tionalities as characteristic based forecasting, VMI to third party custom
ers, container resources and campaign planning. The module Transport
Planning and Vehicle Scheduling (TPNS) is not covered since it is com-
VI Preface
paratively young and therefore there are only few experiences in its im
plementation.
Since the focus of the book lies on the practical use of APO, SCM the
ory in general as well as in connection with APO is not within the scope of
this book. Therefore instead of the SCM literature the SAP notes of the
online service system (OSS) are quoted. Working with the OSS is anyhow
inevitable for any implementation project and an important source for in
formation.
Finally I would like to thank Jens Drewer and Claus Bosch who helped
me a lot during the whole project (the chapter about transportation and
shipment scheduling was contributed by Jens Drewer) and Dr. Stephan
Kreipl, Anita Leitz, Bernhard Lokowandt, Armin Neff, Stefan Siebert and
Uli Mast for their corrections and comments.
Jorg Thomas Dickersbach April2003
Contents
1 Supply Chain Management Projects with APO .................................... 1
1.1 The Supply Chain Management Approach ..................................... 1
1.2 Supply Chain Management Projects with APO ............................... 4
1.3 APO Project Peculiarities and Project Management ....................... 5
2 SCM Processes and APO Modules ........................................................ 7
3 APO Architecture ............................................................................... 11
3.1 Technical Building Blocks of APO ............................................... 11
3.2 Master Data Overview ................................................................... 13
3.3 Planner ........................................................................................... 16
3.4 Data Locking ................................................................................. 16
3.5 Order Categories ............................................................................ 17
3.6 Pegging .......................................................................................... 17
4 Demand Planning ................................................................................ 21
4.1 Demand Planning Process Overview ............................................. 21
4.2 Basics of Demand Planning ........................................................... 22
4.2.1 Characteristics, Key Figures and Structure Overview .......... 22
4.2.2 Planning Object Structure and Planning Area ...................... 25
4.2.3 Organization of Characteristic Combinations ...................... 31
4.2.4 Planning Book ...................................................................... 33
4.2.5 Macros .................................................................................. 38
4.3 Statistical Forecasting .................................................................... 42
4.3.1 Basics ofForecasting ............................................................ 42
4.3.2 Data History .......................................................................... 42
4.3.3 Univariate Forecast Models .................................................. 43
4.3.4 Multiple Linear Regression (MLR) ...................................... 45
4.3.5 Forecast Execution ............................................................... 45
4.4 Life Cycle Planning ....................................................................... 49
4.5 Promotion Planning ....................................................................... 51
4.6 Collaborative Forecasting .............................................................. 55
4.7 Dependent Demand in Demand Planning ...................................... 56
4.8 Background Planning ..................................................................... 59
VIII Contents
4.9 Release ofthe Demand Plan ........................................................... 61
4.9.1 Release to SNP ...................................................................... 62
4.9.2 Forecast After Constraints ..................................................... 64
4.9.3 Transfer to R/3 ....................................................................... 66
5 Production Strategies & Forecast Consumption ................................... 67
5.1 Make to Stock ................................................................................. 67
5.2 Make to Order ................................................................................. 68
5.3 Planning with Final Assembly ........................................................ 69
5.4 Planning Without Final Assembly & Planning Product.. ............... 71
5.5 Technical Settings for the Planning Strategies ............................... 72
6 Integrated Distribution & Production Planning .................................... 7 5
6.1 Cases for Integrated Planning ......................................................... 75
6.2 Supply Network Planning Optimization ......................................... ??
6.3 Capable to Match ............................................................................ 85
7 Distribution Planning ............................................................................ 95
7.1 Goals for Distribution Planning ...................................................... 95
7.2 Basics of Distribution Planning ...................................................... 96
7 .2.1 Supply Chain and Planning Book. ......................................... 96
7.2.2 Stock Types in APO .............................................................. 98
7 .2.3 Safety Stock ........................................................................ 10 0
7 .2.4 Sourcing ............................................................................... 10 1
7 .2.5 Transport Duration .............................................................. 10 3
7.2.6 Storage & Handling Restrictions ......................................... 107
7 .2. 7 Integration of Stock Transfers to R/3 .................................. 10 8
7.3 Comparison Between the Modelling Approaches ....................... 113
8 Replenishment .................................................................................... 115
8.1 Deployment .................................................................................. 115
8.1.1 Basics ofDeployment... ....................................................... ll5
8.1.2 Deployment Heuristic .......................................................... ll6
8.1.3 Deployment Optimization ................................................... 125
8.2 Transport Load Builder. ................................................................ 127
Contents IX
9 Production Planning ........................................................................... 131
9.1 Modelling Approaches to Production Planning ........................... 131
9 .1.1 Applications for Production Planning and their Properties 131
9 .1.2 Production Planning Scenarios ........................................... 134
9.2 Rough Cut Production Planning .................................................. 136
9.2.1 Basics of Production Planning in SNP ............................... 136
9.2.2 Resource and Production Process Model in SNP ............... 141
9.2.3 SNP Heuristic ..................................................................... 144
9.2.4 Capacity Check & Capacity Levelling ............................... 147
9.2.5 SNP Optimization ............................................................... 148
9.2.6 Capable To Match (with SNP Master Data) ....................... 150
9.2.7 Integration to PP/DS & R/3 ................................................ 151
9.3 Production Planning on Detailed Level.. ..................................... 154
9.3.1 Basics ofPP/DS .................................................................. 154
9.3.2 Resources and Production Process Models ........................ 162
9.3.3 Production Planning ........................................................... 178
9.3.4 Product View and Product Planning Table ......................... 190
9.3.5 Capable To Match (with PP/DS Master Data) ................... 195
9.3.6 Detailed Scheduling ............................................................ 196
9.3.7 Sequence Dependent Set Up ............................................... 205
9.3.8 Sequence Optimization ....................................................... 208
9.3.9 Feasible Plans ..................................................................... 218
9.4 Production Execution ................................................................... 220
9.4.1 Planned Order Conversion .................................................. 220
9.4.2 Production Order Handling ................................................ 222
9.5 Reporting ..................................................................................... 225
9.6 Characteristic Dependent Planning .............................................. 228
9.7 Shelf Life ..................................................................................... 232
10 Procurement ..................................................................................... 235
10.1 Basics of Procurement ............................................................... 235
10 .1.1 Order Life Cycle and Integration to R/3 ........................... 235
10 .1.2 Suppliers and Procurement Relationships ........................ 239
10 .1.3 Quota Arrangements ......................................................... 240
10.2 Scheduling Agreements ............................................................. 241
10.3 Subcontracting ........................................................................... 244
10.4 Supplier Capacity ....................................................................... 247
10.5 Collaborative Procurement ........................................................ 249
X Contents
11 Order Fulfillment .............................................................................. 251
11.1 Basics of the ATP Check in APO ............................................... 251
11.1.1 Product Check and Prerequisites ...................................... .251
11.1.2 ATP Check Integration to R/3 ........................................... 251
11.1.3 Product Check ................................................................... 253
11.1.4 Check Parameters ............................................................. .25 5
11.1.5 Overview of ATP Entities ................................................. 258
11.1.6 ATP Check for Non Sales Order Types ............................ 260
11.1. 7 Temporary Quantity Assignments ..................................... 260
11.2 Allocations .................................................................................. 261
11.3 Rules Based A TP ........................................................................ 268
11.4 Capable to Promise ..................................................................... 277
11.5 Multi-level ATP .......................................................................... 282
11.6 Transportation and Shipment Scheduling ................................... 285
11.7 Backorder Processing ................................................................. 287
12 Exception Reporting ......................................................................... 295
12.1 Basics of Alert Monitoring ......................................................... 295
12.2 Alert Types ................................................................................. 297
12.3 Alert Handling ............................................................................ 302
12.4 Supply Chain Cockpit. ................................................................ 304
13 System Integration via Core Interface ............................................. .307
13.1 Technical Basics ofthe Core Interface ....................................... 307
13.1.1 Transfer Concept ............................................................... 307
13.1.2 System Connection ........................................................... .307
13 .1.3 Integration Models ............................................................ .309
13.1.4 Queued RFC ...................................................................... 313
13.2 Master Data Integration .............................................................. 318
13.2.1 Master Data Maintenance Strategy for APO .................... .318
13.2.2 Change Transfer ................................................................ 319
13.2.3 Effectivity and Engineering Change Management.. ......... .321
13.2.4 Organization of the Master Data Transfer ......................... 322
13.3 Transactional Data Integration ................................................... 323
13.4 Organization oflntegration Models ............................................ 325
13.5 Data Consistency ........................................................................ 327
Contents XI
14 System Integration to APO-DP ........................................................ 329
14.1 Data Storage in Info Cubes ........................................................ 329
14.2 Data Loading Structures ............................................................ 331
14.2.1 Structure Overview ........................................................... 331
14.2.2 Source System .................................................................. 332
14.2.3 Info Sources and Transfer Rules ...................................... 332
14.2.4 Update Rules .................................................................... 333
14.2.5 Info Package ..................................................................... 333
14.3 System Integration ..................................................................... 334
14.3.1 R/3 Info Structures ........................................................... 334
14.3.2 BW Info Cubes ................................................................. 335
14.3.3 Flat File ............................................................................. 336