Business Process Procedure

On
Lifecycle Planning

Setup Lifecycle Planning - like Profle setup / Assignment
Life Cycle of any product consists of different phases i.e., Launch, Growth, Maturity, Decline and
Death. In SAP SCM APO Demand Planning !e can use phase in and phase out profiles to
represent the launch gro!th decline and death phases.
"ith the use of li#e profiles demand forecast can $e created for a ne! product using historical
data of a product or products !hose demand $eha%ior is similar to the ne! product.
Li#e profiles can also $e used for products !ith short lifecycles or for products !ith insufficient
historical data.
Lifecycle Planning in SAP APO consists of t!o functions
&. Li#e modeling
'. Phase In(Out modeling.
)ach of these functions is a%aila$le for forecasting $oth at detail le%el and aggregate le%el.
Like Modeling
Li#e Modeling is done $y creating a *Li#e Profile+ for forecasting ne! product $y utili,ing the
historical data of old products !ith similar sales $eha%ior. It is ideal to use li#e profiles for ne!
products and products !ith short life cycle.
Li#e cycle planning can $e set for specific characteristics. "e need to specify the characteristics
to the planning area. -he follo!ing restriction applies
&. "e can !or# !ith ma.imum of / characteristics
'. "e cannot use Compound Characteristics
0. "e cannot use Characteristics Based 1orecasting 2CB13 Characteristics.
Creating Like Profile
-ransaction code /SAPAPO/MSDP_FCST1
Path
Ad%anced Planning and Optimi,ation 45 Demand Planning 45
)n%ironment 45 Lifecycle Planning.
Step &4 "hen you e.ecute the -ransaction (SAPAPO(MSDP61CS-&. 7ou !ill reach to the
Lifecycle Planning Screen.
8ere under the *Setting for Lifecycle Planning+
7ou need to select the *Basic Settings+ 9adio $utton.
Select the Planning Area :D)6PA and clic# on ).ecute. -o do the $asic setting for the
Lifecycle
Step ' Define Basic Setting for LifeCycle.
"e can !or# !ith Ma.imum of / Characteristics. 8ere I ha%e entered Product Characteristic
ZCDEPRODU for !hich li#e profiles needs to $e maintained.
Clic# on Adopt.
After Clic#ing the Adopt $utton you !ill reach to the Main Lifecycle planning screen.
Please use your
Product
Characteristic or
9AMATNR
Step 0 4 Define Li#e Profiles.
After Clic#ing on *Li#e Profile+ you !ill reach to the *Define li#e Profile+ Screen
&. 8ere you need to select the characteristic on !hich you !ant to create a li#e profile. But in the
Basic settings !e had maintained only Product 2:CD)P9OD;3 so you can get here Product
characteristic only.
'. Define a Li#e Profile. ;nder li#e profile field. )g ZDELP001 and gi%e the description.
0. ;nder the li#e profile Definition Ref!al"e# <i%e the reference product 29eference
product you are using this product profile as reference to the ne! product.3
=. Cilc# on Sa%e $utton to sa%e the profile. All sa%ed profile are displayed in the ne.t ta$le.
>. Clic# on Adopt ?alues. After clic#ing this $utton you !ill reach to the main screen. "ith this you
ha%e completed the creation of li#e profile.
Creating P$a#e in and P$a#e o"t
"e define phase in and phase out profile to model the life cycle of Old and @e! Products.
If the phase out profile period is !ith in the history hori,on specified in the master forecast profile.
the system adAust the corrected history. If the phase in profile period is !ith in the future hori,on
specified in the master forecast profile the system directly adAusts the 1orecast Bey 1igure. "e
must set the Lifecycle planning Acti%e indicator in the Master 1orecast profile
P$a#e%&n 'rofile
;sing phase4in profile in Demand Planning !e can simulate the launch phase of any product life
cycle. A phase4in profile changes the demand history or demand forecast of a product $y gi%en
percentages during a specified period or periods.
In Demand Planning !e can also use li#e profile to generate forecast for a ne! product $ased on
e.isting product. In this #ind of scenarios !e can adAust the historical data of the *li#e+ product
up!ards to correct the do!n!ard trend in demand during the *li#e+ productCs discontinuation
phase.
Step &
).ecute the transaction (SAPAPO(MSDP61CS-&4 you !ill reach to the follo!ing screen.
After clic#ing on the Phase In(out $utton you !ill reach to the *-ime Series Maintenance+ screen.
Step ' Create -ime Series Maintenance
&. Create the -ime Series ID 2Phase In3 ZDEP(_&)_001 and Description.
'. <i%e the Phase in Start date and )nd date and the Period Indicotor
If !e are launching a ne! product from &
st
Aug 'D&& and that !ill end $y 0&
st
Dec 'D&& and the
period Indicator is *M+
0.Select the flag *Before Start date apply constant factor+ *D+ 2its not sho!ing the a$o%e
screen shot.3 you use a constant factor $efore the start date !ith a %alue of D in a phase4in
profile. 7ou can also enter other %alues.
And *After end date apply constant factor+ &DDE
=. 1or ne!ly launching products it ta#es a ramp up time to reach the targeted sales. So !e gi%e
an increasing E %alues to attain the targeted sales $y the phase in end date.
8ere Phase in Start date is &
st
Aug 'D&& and )nd Date is 0&
st
Dec 'D&&. so there are > months
of time to reach the targeted 2&DDE3 sales.
>. Clic# on *Sa%e -ime Series+
/. Clic# on Adopt ?alues.
After clic#ing the Adopt $utton you !ill reach to the main screen. "ith this you ha%e completed
the creating Phase in Profile.
P$a#e%O"t 'rofile
;sing phase4out profile in Demand Planning. "e can simulate the discontinuation phase of a
product life cycle. In phase4out profile user can enter the Percentages to mimic the do!n!ard
sales cur%e of the product $ased on their Audgment.
A phase4out profile changes the demand history or demand forecast of a product $y gi%en
percentages during a specified periods. If the time ranges lies !ithin the historical time hori,on
the demand history is adAusted. If the time range lies !ithin the future hori,on the demand
forecast is adAusted.
Step &
).ecute the transaction (SAPAPO(MSDP61CS-&4 you !ill reach to the follo!ing screen.
After clic#ing on the Phase In(out $utton you !ill reach to the *-ime Series Maintenance+ screen
Step ' 4 Create -ime Series Maintenance
&. Create the -ime Series ID 2Phase In3 ZDEP(_OUT_001 and Description.
'. <i%e the Phase Out Start date and )nd date and the Period Indicotor
If !e are Discontinuation of a old product from &
st
Fan 'D&' and that !ill end $y 0&
st
May 'D&'
and the period Indicator is *M+
0.Select the flag *Before Start date apply constant factor+ *&DDE+
And *After end date apply constant factor+ GDCE 2its not sho!ing the a$o%e screen shot3 you
use a constant factor after the end date !ith a %alue of D in a phase4out profile. 7ou can also
enter other %alues..
=. 1or Discontinuation products that products mimics do!n!ard sales cur%e. s. So !e gi%e a
decreasing E %alues to attain the targeted sales $y the phase out end date.
8ere Phase4out Start date is &
st
Fan 'D&' and )nd Date is 0&
st
May 'D&'. So there are >
months of time to discontinue the product..
>. Clic# on *Sa%e -ime Series+
/. Clic# on Adopt ?alues.
After clic#ing the Adopt $utton you !ill reach to the main screen. "ith this you ha%e completed
the creating Phase4Out Profile.
Life*+*le A##ign,ent#
Li#e profile phase4in and phase4out profiles created earlier can $e assigned to the C?C
com$ination at aggregate le%el. So as statistical forecast run !ill consider the setting defined in
this ta$le.
Dates maintained in this ta$le !ill o%erride the %alidity date of Phase in H Phase out profiles.
Once a product has $ecome sta$le and accumulated its o!n history manually demand planners
can delete the entry from this assignment ta$le.
Step & ).ecute the transaction (SAPAPO(MSDP61CS-&4 you !ill reach to the follo!ing screen
8ere under the *Setting for Lifecycle Planning+
7ou need to select the *Assignment+ 9adio $utton.
Select the Planning Area :D)6PA and clic# on ).ecute. -o reach Assignment ta$le.
After clic#ing on the *).ecute+ $utton you !ill reach to the follo!ing screen
8ere ;nder the Profile assignment for Life Cycle.
I ha%e ta#en a ne! product i.e CP-_./ for this product I ha%e assigned a li#e profile ZDELP001
2!hich has a reference product i.e 0001113
And for this ne! product CP-_. I ha%e assigned a Phase In profile. ZDEP(_&)_001 and that is
start from &
st
Aug 'D&& and )nd $y 0&
st
Dec 'D&&.
"hen you e.ecute the Statistical forecast. -he forecast profile incorporates the lifecycle profile
and run the life cycle profile and phase4in profile for the product CP-_.
8ere I ha%e ta#en an Old product 000111 for Phase out profile ZDEP(_OUT_001/ and the
phase out is start from &
st
Fan 'D&' and end $y 0&
st
May 'D&'.
"hen you e.ecutes the Statistical forecast. -he forecast profile incorporates the phase4out profile
2ZDEP(_OUT_0013 for the product 000111