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APO Overview

Frank Weber
Active Global Support – Logistics (SCM)
SAP AG
St. Leon-Rot / Germany

08.10.2003

 SAP AG 2003 APO Overview Frank Weber


Why Have Supply Chain Management?

Innovation … Companies today are being forced to adapt to


changes in the marketplace in order to stay profitable.

Changing Consumer Buying Patterns


• More products
• Alternative ways to shop
Shortened Cycle
Collaborative Times
Planning • Improved
• Sales customer service
• Purchasing • Flexible reaction
to service
requests

More Effective Planning


• More accurate forecasting Increased Demand for
• Feasible plans Value-Added Programs
• Lower inventory levels • Custom packs/displays

 SAP AG 2003 APO Overview Frank Weber


APO as a Planning Tool <--> Execution in R/3

R/3 or non-SAP system APO


Sales & Distribution (SD)
Sales Demand Planning (DP)

Billing

Production Planning (PP) Supply Network Planning (SNP)


Shop Floor Control

Materials Management (MM) Production Planning & Detailed


Scheduling (PP/DS)
Purchasing

Inventory Management
Transportation Planning & Vehicle
Scheduling (TP/VS)
Logistics Execution System (LES)
Shipping
Global Available-To-Promise (GATP)
Transportation

 SAP AG 2003 APO Overview Frank Weber


Demand Planning Concept

Location
Aggregated actual data Future demand
Product hierarchy forecast
Sold-to party

Sales organization

Region

 Incoming order
value
 Statistical forecasting
 Quantities BW
 Collaborative forecasting
 Values R/3
 Promotions
 Invoice Excel
 Quantities Non-SAP system
 Values
 …

 SAP AG 2003 APO Overview Frank Weber


Business process example: Demand Planning in APO

R/3 System APO


Demand Planning

Load data into APO

Perform Material
Requirements Planning
(MRP) Execute forecast run

Macro: Perform forecast


accuracy reporting
Manufacturing /
Purchasing
Interactive Modification of
Forecast

Copy consensus Forecast to


Final Forecast Key Figure

Release forecast to R/3


or SNP

 SAP AG 2003 APO Overview Frank Weber


Supply Network Planning Scenario

Demand Plan

Supplier Plant DC
Customer

 SNP plans the material flow along the supply chain


 Mid- to long-term, finite, cross-plant planning
 Prioritization of demands; supply optimization
 Result: Feasible plans
 SAP AG 2003 APO Overview Frank Weber
SNP Planning Functionality

 Mid- to Long-Term Planning Methods


 Heuristic
 Capable-to-Match (CTM)
 Optimization
 Propagation
 Deployment (short-term Replenishment Planning)
 Heuristic
 Optimization
 Transport Load Builder
 Grouping of Stock Transfers

 SAP AG 2003 APO Overview Frank Weber


Functions of Production Planning / Detailed Scheduling
(PP/DS)

 Plans production, external


Customer
procurement, and stock transfer
within the production plant to-the-
second
 Plans simultaneous material
requirements and schedules finite
capacity at operation level for the
short-term horizon
Resource 2  Takes order sequences into
Resource 1 Resource 3 account
 Optimizes machine schedules
30 (sequences, lead times)
Resource 3
 Transfers the planning results to
20 an execution system (such as the
Resource 2
R/3 Shop Floor Control)
10
Resource 1 Time

 SAP AG 2003 APO Overview Frank Weber


Manufacturing: Production Order Processing using R/3 and APO

R/3 System APO

Create planned orders


Production Planning

Change planned orders Release from SNP to


PP/DS
Create production orders
Perform PP Planning
Release production Run
orders
Interactive Planning via
Print shop floor control Product View
documents

Issue material Detailed Scheduling


components Interactive Planning via
DS Planning Board
Confirm Order
processing
Convert planned orders
into production orders
Receive produced goods
into stock
Global availability check
(GATP)
Settle Prod. Order

 SAP AG 2003 APO Overview Frank Weber


Comparison of Mid- and Short-Term Planning

Sales orders Forecasts Sales orders Forecasts

Production Planning/Detailed Scheduling Supply Network Planning

 PP/DS planned orders  SNP planned orders


 Purchase requisitions  Purchase requisitions
 Stock transfers  Stock transfers

 PP/DS BOM and routing  SNP BOM and routing


 Finite, detailed planning per location  Cross-plant finite planning
 Sequences and setup times  Distribution and procurement
 Continuous and order-related  Quantity and bucket-oriented
 Pegging  No pegging

Production Time
horizon
 SAP AG 2003 APO Overview Frank Weber
Planning Process

Planning Horizon

Demand Planning Forecast

Recommended
Supply Network stock transport
Planned orders
Planning requisitions

Production Planning /
Detailed Scheduling

Confirmed
stock transport
Deployment requisitions

Transport Load Stock transport


Builder order

 SAP AG 2003 APO Overview Frank Weber


Transportation planning & Vehicle Scheduling (TP/VS)

Sales orders,
stock transfer orders,
purchase orders
Objective:

Deliveries and
shipments in R/3

Simultaneous route
planning and transportation Optimizer
consolidation

Vehicle
resources

Selection of
transportation provider

 SAP AG 2003 APO Overview Frank Weber


Global ATP

R/3 APO GATP


 Global ATP: multi-site, real-time
Article  Product availability check (check against
structure ATP)

40 pieces  Check against product allocation


Customer
 Check against planning
ATP request
Sales  Rules-based, multi-level ATP
orders  Alternative locations
Confirmation  Alternative products
 Integrated with PP/DS (CTP – Capable to
Promise)
Is it possible to deliver  High performance (time series)
the product in the
required quantity, and on
the required date?  Backorder Processing (BOP)

 SAP AG 2003 APO Overview Frank Weber


Issues & Receipts

Receipts

Production Purchase Planned


Stock
order requisition order

Further sales- Time


related Reservation
requirements

Issues

 SAP AG 2003 APO Overview Frank Weber


ATP Integration with PP/DS and R/3

Capable-To-Promise (CTP)
Sales order

R/3 Confirmation APO


ATP request
SD ATP
No ATP Make
Planned
Planned orders orders
Production Planning/
Detailed Scheduling

Update time series

 SAP AG 2003 APO Overview Frank Weber


APO Planning Sequence with R/3 Integration

R/3 or non-SAP system APO


Flexible Planning Demand Planning (DP)

Demand Planned ind.reqmts Planned ind.reqmts


management Consumption
Sales & Sales order Sales order
Distribution (SD)
Production Planning (PP) Supply Network Planning (SNP)
Prod. Plng & Det. Schedlng (PP/DS)
Planned order Planned order
Release,
Confirmations Production order Production order
Conversion

Purchasing Purchase requisition Purchase requisition


(MM) Purchase order Purchase order
Stock transport Stock transport requisition
Deploy
requisition Stock transport order
-ment

Logistics Execution System Transp. Plng & Veh. Schedlng (TP/VS)


(LES) Planned delivery
Delivery Delivery
Execution
Transfer order Planned shipment / Shipment
 SAP AG 2003 APO Overview Frank Weber
APO Integration: CIF (Core Interface)

SAP R/3
SD
LO Non-
R/3 System
HR

BAPI
CIF
(Core Interface) BAPI BAPIs

SAP APO BAPI

 SAP AG 2003 APO Overview Frank Weber


APO Integration: Master Data and Documents

R/3 APO live


Cache
Sales order
Planned order
Production order
CIF
Real-time
Order
• Production
• Procurement
• Replenishment
Order
...

Plant, Customer,... Location


Material master Product
Capacity
Routing and
CIF Resource
Production
bill of material process model (PPM)

 SAP AG 2003 APO Overview Frank Weber


R/3 Plug-In Technology

BBP CRM BW SEM

R/3
Plug-in

R/3 CIF APO


(from Release 3.1I)

Information on R/3 Plug-in: SAPNet/R/3 Plug-in

 SAP AG 2003 APO Overview Frank Weber


What is liveCache ?

 Main objective = higher performance:


 Performance-critical routines (in C++) are running in address
space of the liveCache management system
 => no heavy data transfer between application and data storage
 liveCache Data Browser: transaction /SAPAPO/OM16

Application Application

> 1 ms < 10 µs

Data Storage Data Storage


liveCache

 SAP AG 2003 APO Overview Frank Weber

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