Advanced Planning & Scheduling (APS)

The acronym APS or Advanced Planning & Scheduling originated with the
Advanced Manufacturing Research (AMR) in the early 1990s.
It was created because a new breed of software was becoming available that
failed the traditional ERP & MES litmus test.
A few hallmarks of an APS system usually include:

Fewer internal users than ERP systems

The use of memory resident models in addition to traditional data base

management systems.

Advanced planning & scheduling functionality

Advanced optimization algorithms such as linear programming and

other heuristics.

Planning at a finer time increment

Ability to do rapid what-if simulation

Advanced problem notification

APS Software Solution Providers

There are only a few significant companies providing APS software solution.
However, this number is expected to grow in the future.
Major APS software providers are:

SAP

i2 Technologies

Manugistics

Oracle (up and coming)

Plus others

SAP APO
The SAP APO application is SAPs version of Advanced Planning & Scheduling.
APO is bundled with several other advanced planning applications into mySAP
SCM 5.0.

Advanced Planning & Optimization (APO)

Forecasting and Replenishment Retail

Inventory Collaboration Hub

Event Manager

Extended Warehouse Management

MySAP SCM

APO Architecture

APO Architecture

Legend:
BW=Business
Warehouse
ATP=Global
Available-ToPromise
DP=Demand
Planning
LC=Live Cache
OB=Master
Data Objects
SNP=Supply
Network
Planning
RDB=Relational
Data Base
CIF=Core
Interface
System Definition (provided by UCC)

YOU WILL NEEDTO CREATE A NEW ENTRY INTO YOUR SAP GUI

System Definition (provided by UCC)

Data Flows

APO Demand Planning (DP)

APO Demand Planning (DP) is used to create a forecast of market demand for
your company's products.
DP allows you to take into consideration the many different causal factors
that affect demand.
DP contains a large library of statistical forecasting models.
Customers may also develop unique forecasting models using a powerful
macro tool.
Forecasts created by APO DP may be released to APO Supply Network
Planning or passed to R/3 for MRP planning.
APO Supply Network Planning (SNP)
APO Supply Network Planning (SNP) integrates purchasing, manufacturing,
distribution, and transportation so that a comprehensive tactical planning and
sourcing decisions can be simulated and implemented on the basis of a
single, global consistent model.
Starting from a demand plan, Supply Network Planning creates a mediumterm, rough-cut plan for fulfilling the estimated sales volumes.
Supply Network Planning uses advanced optimization techniques, based on
constraints and penalties, to plan product flow along the supply chain
APO Production Planning/Detail Scheduling (PP/DS)
APO Production Planning/Detailed Scheduling (PP/DS) is intended to be a
short-term (1-6 weeks), detailed planning and scheduling tool.
The PP portion of PP/DS is capable of creating finite supply chain plans taking
capacities into consideration.
The DS portion of PP/DS is capable of creating optimized scheduling
sequences
PP/DS accomplishes it primary mission by using various advanced heuristic
and linear programming algorithyms.
APO Global Available To Promise (GATP)
Global Available To Promise (GATP) is an advanced order promising tool.
It extends the Available-To-Promise capability currently in SAP R/3 to include:

Multiple plant planning

Simulation of orders (Capable-To-Promise)

Rule-based order promising

APO Transportation Planning/Vehicle Scheduling (TP/VS)

Transportation Planning/Vehicle Scheduling is intended to optimize the
planning and schedule inbound and outbound freight.
The Transportation Planning portion of TP/VS enables you to make optimal
use of the available capacity of trucks, trains, ships, and airplanes.
The Vehicle Scheduling component of TP/VS will optimize the delivery routes.
TP/VS utilizes advanced linear programming algorithms to accomplish its
mission.
APO Alert Monitor
The Alert Monitor is an advanced monitoring system to detect supply chain
problems at the earliest possible time.
The Alert Monitor is capable of operating within all the APO sub-modules (DP,
SNP, PPS/DS, TP/VS).
Alert conditions may customized by company or individual user.
APO Alert Monitor

Introduction To CIF
The APO Core Interface framework (CIF) is used for the data exchange
between SAP APO and SAP R/3 Systems.
The CIF will transfer both master data and transaction data from SAP R/3 to
SAP APO and also from SAP APO to SAP R/3.
Data passing between SAP R/3 and SAP APO may be either real-time or
batched.
The IT technology used for the interface is the Remote Function Call (RFC).
The passing of data is enabled by the creation and maintenance of
Integration Models.
All Integration Models are defined in SAP R/3 (host system)
CIF Architecture

Integration With Multiple R/3 Systems

Master Data Transfer Through CIF

Transaction Data Transfer Through CIF

Integration Models
Multiple integration models will be used in connecting SAP R/3 to APO. Each
model will transfer different data.

Example an integration model will be defined for transferring the

organizational data elements (plant, storage locations, etc) to APO.

Integration models are always defined in the SAP R/3 system.

Various definitions must be made in configuration in both R/3 and APO.
R/3 and APO contain various tools for monitoring and handling integration
errors.
Integration Model Example

Master Data Maintenance

Master data that was originated in SAP R/3 IS MAINTAINED IN R/3
Master data that is unique to APO IS MAINTAINED IN APO.

Selecting APO Planned Materials

Models In APO
All Master Data transferred using the CIF is automatically assigned to model
000 (Active model) in live cache.
Therefore models in APO contain master data.
Since APO may be used for simulation or what-if planning, other models may
be created that contain master data different from the model 000 (active
model).
Versions In APO
All transaction data that is transferred to APO through the CIF is stored in
Version 000 (Active Version).
Examples of transaction data would be forecasts, sales orders, etc.
Since APO may be used for simulation or what-if purposes, other versions
may be created that contain transaction data different from Version 000
(active version).

 All transaction data transferring from APO to R/3 must be stored in Version
000.
Models & Versions In APO

Models & Versions In APO

Aaa

Models contain
Master data
What-If
Model

Versions contain
The University of Texas at Dallas

Transaction data

13

APO Master Data

APO Master Data

The Master Data Objects in SAP APO have different names from their SAP R/3
counterparts. For example, the Material Master in R/3 is named Product
Master in APO.
Many of the APO master data fields originate in R/3 and are transferred
through the Core Interface (CIF).
APO has many other master data fields that do not have counterparts in R/3.
These master data fields are needed to perform the APS functionality that
does not exist in R/3.
APO also has one master data objects that does not have a R/3 counterpart.
Master data is maintained in its system of origin. R/3 fields in R/3 and APO
fields in APO.

APO Master Data

Purchasing Info Record

Transportation Lane

Scheduling Agreement

Quota Arrangement

The University of Texas at Dallas

Procurement

Location Master
The Location Master is a common master data object used to house the
following R/3 objects:

Plant

Customer

Supplier

Plus others

The location master is crucial to supply chain management because it is the

building block for so many other relationships.

Location Master

Location Master Example

Transportation Lane
The APO Transportation Lane (TL) does not have a R/3 counterpart.
The TL defines all valid transportation method between two locations.
TLs may be defined for all products moved between two locations or may be
specific by product.
If no TL exists between two locations then one location cannot be a source of
supply to the other.
The TL may define multiple valid transportation means (truck, rail, air) along
with the transportation time and cost for each.
APO sourcing algorithms will examine the TL for cost and time data to
determine the optimum method.

Transportation Lane Example

Quota Arrangement
The quota arrangement determines the source and quantity demanded when
several possible suppliers (i.e. locations) are available.
Quota arrangements exist in R/3 BUT ARE NOT USED IN APO.
Quota arrangements may be defined for all products sourced from a location
or it may be product specific.
Product splits may be defined as:

Fixed split

Determined by a heuristic algorithm

Determined optimally and then remain fixed.

If there is only 1 source of supply than no quota arrangement is needed.

Quota Arrangement Example

Product Master
The APO Product Master is the direct equivalent of the R/3 Material Master.
Most of the data from the MRP data views will pass through the Core Interface
to create the Product Master.
The Product Master will also contain data elements that do not exist in R/3. A
few examples are:

Penalty costs these reflect the relative cost of missing an order due
date.

Storage costs the relative cost of storing a product.

Good receipt/issue costs.

 These costs are used to influence the Optimizer program in Supply Network
Planning.
Product Master

Product Master

Resource Master
The APO Resource Master is the direct equivalent of the R/3 Work Center
(discrete) or Resource (process).
The APO Resource Master is considerably more flexible than its R/3
counterparts. For example, in R/3 a work center may have multiple
capacities (labor and machine).
When used in a APO environment, each capacity will create a separate and
distinct resource. This allows for capacity planning for both resources.
Finally, the APO Resource may be used to model transportation and material
handling resources.
Resources in APO may be Model/Version dependent for what-if simulation
purposes.

Resource Master

Resource Master

Resource Master Example

Production Process Model (PPM)

The APO PPM is a complicated and sophisticated object that combines the
major components of the R/3 BOM and Routing.

 There the PPM will contain all the materials required and all the process
steps, resources and processing times.
Additionally the PPM may also contain production cost data. This allows for
PPMs to be created for various locations (plants) with different production
costs. A linear programming sourcing model may then determine the
optimum quantity to source from each location.
Two Types of PPMs

PPM Example

Procurement Relationship
The APO Procurement Relationship object is the direct equivalent of the R/3
Purchasing Information Record, Contract or Scheduling Agreement.
Since all of these R/3 objects define a valid relationship between a supplier
and a trading partner the Core Interface will automatically create a
Transportation Lane.
Procurement Relationship Example

Forecasting Basics
A forecast is a prediction of a variable of interest for a future time period.
The three absolutes of forecasting are:

Forecasts are always wrong

Forecasts are more accurate in groups rather than individuals

Forecasts are more accurate in the near term

Forecasting techniques in SAP are:

Manual

Sales & Operations Planning (SOP)

Flexible Planning (R/3)

APO Demand Planning

Forecast Generation Methods

Forecast are almost always generated at a product family level as a
background job that runs automatically.
Various organizations may make independent forecasts. Examples may
include: sales, marketing, finance, and operations management.

 The frequency of running the forecast will vary from company and industry.
However, a monthly update frequency is the most common.
For each forecast cycle some time periods will be re-forecasted and some
time periods will be forecasted for the 1st time. The overall horizon of the
forecast is dependent upon several factors including:

1. Purpose of forecast

2. Cumulative product lead time

The forecast cycle may terminate with a consensus forecast as part of a Sales
& Operations Planning (S&OP) meeting.
When the automatic forecast is completed, any alert conditions are noted and
sent to customers.
Adjustments to automatic forecast are usually performed manually.

Typical Industry Forecasting Process

Approaches to Forecasting
Qualitative Method subjective inputs

Subjective inputs

Soft information
(human factors, personal opinion, hunch)

Hard to quantify

Quantitative Method objective, or hard, data

Projection of historical data

Associative models utilizing explanatory variables

Types of Forecasts

Qualitative
Judgmental - uses subjective inputs
(consumer surveys, sales staff, managers/executives, expert panels)
Quantitative
Time series - uses historical data assuming the future will be like
the past
Associative models - uses explanatory variables to predict
the future
Time Series Forecasts
Time series time-ordered sequence of observations taken at regular intervals

Assume future can be estimated by past

Identify underlying behavior without identifying causes

Time Series Forecasts

Trend long-term upward/downward movement in data
Seasonality short-term regular variations in data
Cycle wavelike variations of more than one years duration
Irregular variations caused by unusual circumstances
Random variations caused by chancewhats left
Forecast Variations
trend, seasonality, cycle, irregular variation, randomness
Techniques for Averaging
Historical data has white noise or variation
Averages smooth variations
3 Techniques

Moving average

Weighted moving average

Exponential smoothing

Moving Averages
Technique that averages a number of recent actual values, updated as new values
become available

Simple Moving Average

Weighted Moving Averages

Weighted moving average more recent values in a series are given more weight in
computing the forecast

Exponential Smoothing
Weighted averaging method based on previous forecast plus a percentage of the
forecast error

WHERE ALPHA (SMOOTHING FACTOR) IS GREATER THAN OR EQUAL TO

ZERO BUT LESS THAN OR
EQUAL TO 1
Example: Exponential Smoothing

Picking a Smoothing Constant

Forecast Evaluation

Forecast Errors

All error measures compare the forecast model to the actual data for the ExPost
Forecast region

Errors Measure

All error measures are based on the comparison of forecast values to actual values
in the ExPost Forecast regiondo not include data from initialization.
Bias and MAD

Bias

F (t ) A(t ) 13 1.08

MAD

F (t ) A(t )
n

12

365
30.42
12

Bias and MAD

Bias tells us whether we have a tendency to over- or under-forecast. If our
forecasts are in the middle of the data, then the errors should be equally
positive and negative, and should sum to zero
MAD (Mean Absolute Deviation) is the average error, ignoring whether the
error is positive or negative.
Errors are bad, and the closer to zero an error is, the better the forecast is
likely to be.

 Error measures tell how well the method worked in the ExPost forecast
region. How well the forecast will work in the future is uncertain
Practice

MAD

Bias

F (t ) A(t )
n

23.6
4.73 MAD
5

F (t ) A(t )
n

17.69
3.54
5

F (t ) A(t ) 5.6 1.12 Bias F (t ) A(t ) 6.83 1.37

n

MPE and MAPE

When the numbers in a data set are larger in magnitude, then the error
measures are likely to be large as well, even though the fit might not be as
good
Mean Percentage Error (MPE) and Mean Absolute Percentage Error (MAPE) are
relative forms of the Bias and MAD, respectively.

 MPE and MAPE can be used to compare forecasts for different sets of data

MPE and MAPE

Mean Percentage Error (MPE)

MPE

F (t ) A(t )
A(t )
n

Mean Absolute Percentage Error (MAPE)

MAPE

F (t ) A(t )
A(t )
n

*100

MPE and MAPE

MPE

0.446
1.774
0.037 MAPE
x100 14.8%
12
12

Demand Planning in SAP

APO DP Functionality
Global server with a BW infrastructure
Exception handling is integrated and you can define your own alerts
Planning is based on a main memory
Flexible navigation in the planning table, variable drill-down
Wide range of forecasting techniques
Promotion planning and evaluation, like modeling
Enables collaborative planning over the Internet
Demand Planning BOM
Forecasting Process

What influences the forecast?

Characteristic A Definition
The term characteristic is a common term in the SAP vocabulary and has
different definitions depending upon the circumstance.
For APO DP, a characteristic is a organizational or master data field. For
example, material (product) or plant , customer, or sales organization.
Characteristics are used to determine the level at which you are forecasting.
For example, a sales rep may need to create a forecast at the sales-orgproduct-customer level. Product, Sales Org. and Customer are all
characteristics.
APO DP has a built-in library containing many commonly used characteristics.
However, customer unique characteristics may also be created
Characteristic Value Combinations (CVC)
Historical data is stored in the APO BW info cube and is organized by
dimensions (characteristics).
Once historical data is stored, it may be analyzed to create historical facts of
characteristic combinations
Example

Info cube contains the following dimensions (characteristics): Product,

Location, Customer, Sales organization, Date

Performing an analysis of the historical data yields the combination:

Product P-101 was sold to customer 12345 by sales org ABCD and
shipped at location 1000.

CVCs represent the master data for APO DP

CVCs are stored in a Planning Object Structure (POS).

APO Business Warehouse (BW)

Info Cubes

Forecasting Methods Available

 APO DP supports the following types of forecasting methods.

Univariate (statistical)

Multiple Linear Regression (MLR)

Composite

Key Figure A Definition

Key Figures are numeric or quantitative data that are useful for forecasting
purposes.
APO DP has a built-in library containing many commonly used key figures.
However, customer unique key figures may also be created.
Key figures usually appear as rows in spreadsheet looking screens.

Planning Areas

Planning Book/Data View Example

Creating The Selection ID

Drilling Down To Lower Details

Aggregating & Disaggregating

Aggregation is the automatic function by which key figure values on the
lowest level of detail are summed at run time and displayed or planned on a
high level
Disaggregation is the automatic function by which a key figure value on a
high level is broken down to the detailed level.
Proportional Factors
Proportional factors are used to disaggregate the forecast.
They are derived from historical data and represent ratios or percentage.
For example, if a sales for product T-F200 in a certain time period was 1000.
T-F200 was sold from 3 locations:

Location 1000 sold 230 units

Location 2400 - sold 450 units

Location 2500 sold 320 units

Therefore, the proportional factor for location 1000 is 230/1000 or 23%. That
is, 23% of the sales for this time period occurred at location 1000.
Forecasting Pre-requisites
To generate a forecast in APO DP the following are hard pre-requisites:

Master data in the form of characteristic-value-combinations (CVC)

A selection ID What to forecast

A forecast profile How to forecast?

Univariate Forecasting Techniques

Is a statistical forecast
Examples include:

Moving average

Constant models, trend models, seasonal models

Exponential smoothing

Seasonal linear regression

The Holt-Winter.s method

Croston.s method (for sporadic demand)

Automatic selection

Master Forecast Profile

Master Forecast Profile Example

Multiple Linear Regression (MLR)

APO DP supports Multiple Linear Regression as a forecasting technique.
You use MLR to determine how a dependent variable, such as sales, is
connected with independent variables called casual variables, such as prices,
advertising, and seasonal factors.
MLR uses historical data as a basis to calculate the regression coefficients, b,
for causal analysis.
The demand planner has the task to identify and quantify the most important
independent variables and to model the causal connection
MLR Example

The Composite Forecast

Collaborative Forecasting

 You collaborate with your customers over an internet connection.

Customers will view your statistical forecast and can give feedback on
whether it is too high or too low.
The result can be improved forecast accuracy
Collaborative planning requires a strong business relationship between
trading partners and most of TRUST.
Consensus Based Forecasting
APO DP supports consensus based forecasting.
Consensus based forecasting may be performed various ways including:

Different planning books for different forecasting organizations

Consensus forecasting business meetings where all parties participate in arriving at

the best possible forecast
The Alert Monitor
The APO Alert Monitor may be used to send alerts regarding important
abnormal situations.
For Demand Planning the important abnormality is a forecast error that
exceed a pre-defined threshold level.
For example,

You wish to be alerted if a MAPE calculated forecast error exceeds 15%.

If a given forecast has a MAPE of 22% an alert will be created.

Alerts may be delivered via several media including email.

Product Life Cycle (PLM)
Forecasting the demand for new products can be difficult since they have not
previous historical data.
Additionally, forecasting the end-of-life for products being phased out is
important from an inventory management point of view.
Product Life Cycle (PLM)

Product Life Cycle (PLM)

Promotion Planning
Promotions can be created to apply patterns to the demand forecast.
The patterns can be stored in the promotion pattern library and used, as
required (multiple times).
The function is also available to detect promotion patterns in historical data
and to create promotion patterns based on them
Promotion Planning

The Release Process

After the demand plan has been approved for it must be released for
operations planning.
Various potential paths exist for releasing the demand plan. See the graphic
on the next slide.
After the release process, the forecast requirements will be classified as
planned independent requirements (PIR).
The forecast release almost always will contain four basic parameters: 1)
product, 2) location, 3) quantity, and 4) time.

 MRP in R/3 or SNP in APO may act on PIRs to create replenishment planned
orders.

Forecast Data Flows

APO Release Architecture

DP Release Example

APO Release Architecture

Introduction To Supply Network Planning (SNP)

APO Supply Network Planning (SNP) is an intermediate time frame planning
function.
Its primary purpose is to create a good rough-cut supply plan across the
entire supply chain.
SNP may be used for either infinite or finite capacity planning.
Three separate and unique replenishment planning engines are bundled into
SNP:

Heuristic

Capable-To-Match (CTM)

Optimizer

In addition to supply and demand matching, SNP is capable of performing two

additional supply chain management functions:

Deployment

Transportation Load Builder

APO Planning Horizons

SNP Process Flow

SNP Planning Engines

SNP Architecture

Order Based Live Cache

Interactive Supply Network Planning

The SNP Heuristic

The role of Heuristic planning to is to plan the supply to meet demand
throughout the entire supply chain.
Heuristic planning is quantity-based planning. This means it will create a
supply quantity for a specific time period regardless of the actual order
quantities.
The SNP Heuristic plans in a level-by-level planning method similar to MRP in
SAP R/3.
Heuristic planning assumes infinite capacity when planning.
Sourcing decisions (that is, what locations should be used as supplies) is
driven primarily by Quota Arrangements.

Heuristic Example

The SNP Heuristic Scenario

Quota Arrangements In Heuristic

Other APO Master Data Used In Heuristic

SNP Capacity Balancing

SNP Heuristic planning is based on the assumption that resources have an
infinite capacity.
After the SNP Heuristic run is complete, the planner can make a capacity
check, which allows the planner to see the impact that planned orders will
have on
resources and to quickly determine whether or not the plan is feasible.
If there is a capacity overload, an alert is displayed.
The planner can decide how to modify the production plan to meet demand
before actually going into production.
Capacity Balancing Alternatives
Increase capacity through overtime or additional resources
Move work backward in time where capacity is available (subject to material
availability)

 Move work forward in time where capacity is availability (subject to material

availability)
Move work to an alternate resource
Split the order (i.e. sub-divide) into quantities that will meet available
capacity.
SNP Capacity Balance Example

SNP Capacity Leveling Example

Capacity Leveling Example

SNP Review
APO SNP is an intermediate range planning tool.
It will plan supplies to match demands using several potential software
algorithms:

Heuristic infinite capacity planning only

Optimizer finite capacity planning

Capable-To-Match (CTM) infinite or finite capacity planning.

This lesson will focus on the use of the Optimizer and Capable-To-Match techniques
Linear Programming
Linear programming (LP) traces it history to the 1940s as a method of
solving complex planning problems with war time implications.

 George Dantzig is considered the primary inventory of LP but John von

Neumann is also considered by many as a co-inventor.
LP is a special class of mathematical problems in which a linear function
(called the objective function) is either minimized (like costs) or maximized
(like profits).
The other two components of a linear programming problem besides the
objective function are:

Decision variables

Constraints

Linear Programming
Decision variables are used to model the various decisions that may be
required in supply chain planning. Examples of decision variables are:

What products should be produced?

How much of each product should be produced?

Where should the products be produced?

How should the products be transported?

Constraints

Constraints represent realities that essentially bound the solution

options to that the result is feasible.

Examples include:

Demands must be met

Cannot exceed capacity

Storage capacity is limited

Non-Linear Programming
In many cases, the objective function may be non-linear. In this case other
solution techniques must be employed. A few optimization techniques are:

Non-linear programming (NLP)

Mixed-Integer linear programming (MILP)

Mixed integer non-linear programming (MINLP)

 SAP APO supports LP and MILP problems.

APO SNP Optimizer

The Optimizer or solver in APO SNP uses linear programming to consider all
relevant factors simultaneously.
SAP has embedded a 3rd party solver ILOG CPLEX into the APO system.
The optimizer compares alternative solutions using costs that would be
incurred. It determines the most cost-effective solution based on the
constraints and objective function defined in the system.
You use penalty costs to prioritize demands. If a product brings high sales
revenues, you set high penalty costs.
The result of the optimization run might be that due dates are violated or that
safety stocks are not replenished
Optimizer

Capable To Match (CTM)

CTM is an order-based planning method, which means that every single sales
order or Planned Independent Requirement PIR is planned separately.
CTM uses demand priorities as the primary basis performing supply network
planning.
Demand priorities may be defined using multiple methods consistent with
corporate policy or culture.
For example, demand priorities may be defined as:

Preferred customer

Due date

Revenue

CTM is capable of panning with either finite or infinite capacity assumption.

CTM does not perform optimization. It terminates when it find the 1 st feasible
solution to the problem.
CTM Process

CTM Scenario

First Feasible Solution Example

Prioritizing Demands In CTM

Prioritizing Supplies In CTM

Safety Stock Planning

The following uncertainties occur during planning:

Demand uncertainty (forecast)

Replenishment lead time

To safeguard against these uncertainties, you can plan safety stock (SStk) as
follows:

Maintaining the safety stock manually in the product master

Calculate the time-dependent safety stock in an SNP key figure in the

Interactive Planning Table.

Create a model dependent safety stock to achieve a certain customer

service level.

APO SNP provides more sophisticated safety stock planning than R/3.
Model-Dependent Safety Stock

Deployment

 At the time of actually executing the distribution plan, the stock levels, stock
receipts and sales orders are not at the same levels as when the planning run
was run last.
For example, SNP created a planned order for 500 during a planning run 3
months ago. The order due date is next week. However, there were
production problems and the order qty is now 450.
This means that we can only distribute (that is, deploy) 450 instead of the
500 originally expected.
The SNP Deployment process will determine how the remaining 450 will be
deployed to their respective destinations. It uses various fair-share rules.
Actual deployment orders are created in R/3
Deployment Fair Share Example

Transportation Load Builder (TLB)

Once the question of deployment has been determined, then we can begin to
do some transportation planning.
Transportation Load Builder is a lite-transportation load builder that will
optimize the use of the transportation fleet of vehicles.
TLB only creates full loads
TLB does not perform any route planning.

 Actual transportation orders are created in R/3.

Transportation Load Builder (TLB)

Executing The Supply Plan

Supply Chain Engineer

The APO Supply Chain Engineer (SCE) is a convenient graphical tool that
allows customers to graphically view and edit their APO master data objects.
With literally thousands of master data elements in a supply chain the
management of master date can be become overwhelming.
The SCE allows a customer to create a filter containing those master data
objects that are under his responsibility.
The resulting filtered master data objects is called a work area.
Model/Version

Supply Chain Engineer

SC Engineer

Defining Work Areas

Sample Supply Chain Engineer

The Risks Of Software Implementations

Software implementations can be a high risk, high cost and potentially
disastrous process for a company.
Rarely are software implementations a slam dunk success!
Many factors influence the overall success of a software implementation
including:

Project manager

Top management support

Technical issue

End user issues

End user training

Software implementation methodologies reduce the risk and cost of a

software implementation.
Software Implementation Methodologies

 A methodology is a structured, proven process of accomplishing a task.

Software implementation methodologies have existed for many years. They
are usually defined by major phases.
The SAP software implementation methodology consists of the following
phases:

Project preparation

Business blueprint

Realization

Final preparation

Go live & support

Project Preparation
The project preparation phase will define the general conditions for
implementing the project successfully. It will include:

Defining the goals and objectives of the project.

Establishing the project organization

Creating the project plan

Determining the project standard procedures

Training the project team

Setting up the SAP 3-system landscape

Creating a communication plan for the project

Take certain benchmark measurements

Business Blueprint
The business blueprint phase is a critical phase in the methodology. Failure
to take adequate time to lack of forward thinking in this phase will
significantly increase the risk of the overall project.
Each major department being affected by the scope of the software will
undertake an analysis of their current processes.
The resulting analysis will document the functional requirements that the new
software implementation.

Example the SAP system should capable of automatically

determining a source of supply for a requirement.

Realization
This phase will begin the implementation of the functional requirements
defined in the Business Blueprint phase. This phase will include the following
activities:

Configuring the SAP system

Setting up the test environment

Setting up the security/administration settings

Setting up any workflow processes

Writing test scripts

Final Preparation
This phase will include the following activities:

Loading master data

Unit, function and integration testing

End user training

Customer sign-off

Go Live & Support

This phase will launch the new application and provide the necessary support
for a period of time required to achieve institutionalization.
Activities include:

End user re-training

Software trouble call support

Software de-bug support

Configuration re-setting