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Production Planning /Detailed Scheduling

News in SAP APO 4.1

BSG Manufacturing IndustriesSAP AG

February 2005

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© SAP AG 2004, SCM 4.1 News in PP/DS, G. Klinger 2

Agenda

Master Data and Integration- Master Data Strategy- Integration Enhancements- Harmonization of Classification

Systems

New/Improved Planning Processes- Fixed Pegging

- Bucket-oriented CTP- Scheduling Enhancements- Project Manufacturing- Planning with Safety Stock

Usability Improvements

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R/3(Core or DIMP)

Production Process Master Data in APO 4.0

APO 4.0PPM

iPPE

CIF

Bill of Material,Routing, Recipe

PP/DSDP

SNP CTM

iPPE

MMP

Seq

RPM

Recipe

A new master data layer for PP/DS processes ...

The Runtime Object (RTO) as technical step ...

Routing

RTO(Runtime Object)

DIMP1) only:

1) DIMP = Discrete Industries and Mill Products Industry Solution

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Production Process Master Data in APO 4.1

… and further enhanced in 4.1 for all planning applications!

… completed finally by the Production Data Engine (PDE) as unifiedmaster data provider.

R/3(Core or DIMP)

APO 4.1PPM

iPPE

CIF

Bill of Material,Routing, Recipe

PP/DSDP

SNP CTM

iPPE

MMP

Seq

RPM

Recipe

Routing

PDE(Production Data Engine)

DIMP1) only:

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Master data from either R/3 (1) or iPPE (APO) (3) is transferred to the Production Data Engine (PDE)

In combination with a DIMP system it is also possible to transfer master data from iPPE (R/3 DIMP) toiPPE (APO) (2) and then to PDE (3). A direct connection between iPPE (DIMP) and PDE does not existFor APO stand-alone installations, master data can be maintained in APO with iPPE.

The PDE offers basic services like reading, generation & time stamps

The master data is stored in specific Production Data Structures (PDS) (4). The structure and contentis optimized for the planning applications (DP, SNP etc.)

The planning applications read the PDS data to perform the planning (5)

APO

iPPE

CIFR/3(core or DIMP 1))

Production Data Structures + Planning Applications

PDE(Production Data Engine)

Bill of Material,Routing, Recipe,Line

Applications

PP/DS

DPSNP

CTM

...

DIMP only:

iPPE

1

5

3

2

Production Data StructureProduction Data Structure

Production Data Structure

4

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Production Data Structures - Status 4.1

BOM, routing and recipe can be transferred via CIFto create Production Data Structures (PDS)

Available for all planning modules (DP, SNP, CTM, PP/DS)

Many restrictions of 4.0 are lifted (CDP, Block Planning …)

No change of PDS in APO

New PDS display transactionAPO stand-alone: Data Maintenance via iPPE

(Workbench Professional or Workbench Express )

PDS are the Standard Solution as of APO 4.1PDS are the Standard Solution as of APO 4.1PDS are the Standard Solution as of APO 4.1PDS are the Standard Solution as of APO 4.1

How about the PPM?How about the PPM?How about the PPM?How about the PPM?

The PPM is continuously supported!

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Integration to Plant Maintenance (PM)

R/3 PM Maintenance Order integration to APO 4.1Creation, scheduling and capacity planning in R/3Transfer of maintenance order (with activities, material

requirements, relations, maintained resources) from R/3 to APOnew order type ‘Maintenance Order’ in APO

Set production downtime on maintained resources in APOVisualization of maintenance order in PP/DS

Planning and scheduling of maintenance order materialrequirements

Maintenance orders cannot be changed in APO

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Integration of Order BOM and Order Routing

Multi-level configuration inOrder BOM

Edit/Add/Deletecomponents in Order BOM

Copy Order BOM fromexisting Material BOM /Order BOM

Copy Order Routing fromexisting Material Routing /Order Routing

Engineer and insert newassemblies for specificcustomer order

PM-1000

Dynamic BOM

Op. 10

Op. 20

Op. 30

Dynamic Routing

PM-1000

Order BOM

Op. 10

Op. 20

Op. 30

Order Routing

Material PM-1000 Material PM-1000

Material PM-1000Order 8200 Item 10

Material PM-1000Order 8200 Item 10

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Harmonization of Classification Systems

VC Configuration and CDP can be used in one clientDecision for VC Configuration or CDP can be done per product,upon integration of product from R/3

By explicit setting upon activation of integration model in R/3

By defaults from APO customizingSetting for exclusive usage of VC Configuration or CDP in one APOclient is still availableMixed scenario must be activated in customizing

Block Planning independent of setting for configuration systemPDS explosion with block planning also with VC ConfigurationBlock Planning still uses a resource classification of class type 400.If CDP is not active: Classes are manually created in APO(usually with characteristics transferred from R/3)

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Agenda


Systems

New/Improved Planning Processes- Fixed Pegging

- Bucket-oriented CTP- Scheduling Enhancements- Project Manufacturing- Planning with Safety Stock


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Fixed Pegging

Supply Chain – two BOM levels with raw material purchasing

Cust. Orders

1. BOM Level

2. BOM Level

Raw Material

BanfBst BsEin BanfBst BsEin

Bst BsEin Bst Banf

BstPlauf Fauf PlaufPlauf Fauf

Fauf Bst FaufPlauf

Fauf Bst Fauf

Kdauf LiefKdauf Kdauf Kdauf

Kdauf Kdauf

Bst BstBst Bst

Kdauf

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Fixed Pegging: Planning Objectives

Cust. Orders

1. BOM Level

2. BOM Level

Raw Material

BanfBst BsEin BanfBst BsEin

Bst BsEin Bst Banf

BstPlauf Fauf PlaufPlauf Fauf

Fauf Bst Fauf Plauf

Fauf Bst Fauf

Kdauf LiefKdauf Kdauf Kdauf

Kdauf Kdauf

Bst BstBst Bst

Kdauf

Stable confirmations

Fixed material flow (single and multi level)

Stable integration into execution (to preserve fixed peggingon document changes)

Optimized monitoring and maintenance

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Fixed Pegging: New Developments

heuristics tocreate fixed

pegging

• supports single and multi level

3 methods to create fixed pegging relationships• fix dynamic pegging relationships• fix by batches• fix by user defined criteria

back orderprocessing

(BOP)

ATP• Online ATP and BOP (back order processing),

part of PP/DS ATP

2 methods in PP/DS ATP:• check against fixed pegging only• check against fixed pegging; if no confirmation is

available then check by standard ATP logic

Important:ATP means PP/DS ATP and not standard ATP ontime series!

online ATP

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Purchasing functionsShipping notification/vendor confirmation for purchase orderGoods receipt, purchase order / shipping notificationGoods receipt, inspection lots (QM)

Changes of purchase documents

Sales and Distribution functionsDelivery for sales orderGoods issue based on sales order/deliveryBatch splitOrder changesAvailability check, sales order

Inventory Management functionsGoods movementTransfer posting to reservationReservation changeTransfer inspection lot quantities (QM)

Recurring inspection (QM)

Production control functionsConfirmation for production order/process orderBatch splitGoods receiptGoods receipt, inspection lot (QM)Goods issueChanges of production ordersAvailability check of order components

Conversion of planningresults

Conversion of planned order into productionorder/process order

Conversion of purchase requisition intopurchase order

PlanningKey completion of planned orderKey completion of purchase order

Fixed Pegging: CIF Integration

Preserveexisting fixed

peggingrelationships!

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Fixed Pegging: Processes Overview

2. online ATP/CTP

4. detailedscheduling

3. productionplanning

5. backorderprocessing

1. sales orderinbound

PP/DS planningtime fence ATPcheck horizon PP/DSplanning horizonToday

Before: All relationshipsshould be fixed

Before: Relationshipsbetween ATP and PP/DS

horizon should be defixedAfter: Fix pegging of MRP

should be used

Before: All sales orders should be fix pegged

Before: ATP confirmed demands shouldbe fix pegged only

After: New sales orders should be fixed

SD horizon

… Optional: Adjustment of material flow via fix pegging heuristics

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Process 1 – Fixed Material Flow by ATP


pegging

finite planningrun

infinite planningrun


(BOP)

sales orderinbound


pegging

new sales order in SAP R/3 with online ATP• set confirmation if possible• continuous process

heuristics to peg lastly confirmed sched. lines• single level for finish products to keep allocations stable• periodic process (e.g. hourly)

optimization run (PP/DS)• to create a feasible production plan

infinite MRP run• multi level to create missing receipts for uncovered sales orders• periodic process (e.g. at night)

heuristics to peg multi level• propagate priorities of pegged requirements to dependent requirements• multi level

confirmation of unconfirmed sales orders• confirm new sales orders• ATP update of confirmed sales orders• possibility to confirm against check horizon considering scope of check

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Process 2 – Fixed Material Flow by MRP


pegging

finite planningrun



(BOP)

sales orderinbound

new sales order in SAP R/3 without online ATP• no confirmations• continuous process

heuristics to peg by fixed pegging relationships• multi level to peg results of infinite MRP• periodic process (e.g. at night)


infinite MRP run• multi level to create missing receipts for new sales orders

• periodic process (e.g. at night)

confirmation of unconfirmed sales orders• confirm new sales orders• ATP update of confirmed sales orders

• possibility to confirm against check horizon considering scope of check

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Process 2 - Example

Finished Goods

Sub-Assembly

Procurement

Finished Goods

Sub-Assembly

Procurement

fixed pegging dynamic peggingmaterial supply (existing/new)

customer order (existing/new)

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Process 2 – Example

Finished Goods

Sub-Assembly

Procurement

Finished Goods

Sub-Assembly

Procurement

fixed pegging dynamic peggingmaterial supply (existing/new)

customer order (existing/new)

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Process 4 – Assistance to CTP


pegging

finite planningrun



(BOP)

sales orderinbound


pegging

new sales order in SAP R/3 with CTP• set confirmation or create planned order• continuous process

heuristics to peg lastly confirmed sched. lines• single level for finish products to keep allocations stable• periodic process (e.g. hourly)


infinite MRP run• multi level to create missing receipts for uncovered sales orders• periodic process (e.g. at night)

heuristics to peg lower levels• propagate priorities of pegged requirements to dependent requirements• multi level

confirmation of unconfirmed sales orders• confirm new sales orders• ATP update of confirmed sales orders• possibility to confirm against check horizon considering scope of check

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The Problem

The main shortcoming of the existing CTP solution is theunsatisfactory capacity utilization due to fragmented load

assignment.

Sequence-dependent setup activities lead to poor capacityutilization as no setup-time optimization is done during the CTPrun.

Applying finite CTP on different BOM levels lengthens the lead-time, aggravates the above mentioned problems and impairs thesystem performance.

Bucket-Oriented Capacity Checks (CTP)

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The Solution: PP/DS bucket-based capacity checks

Bucket Capacity

Desired DatePlanning Direction

Time-Continuous Capacity

today


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Benefits Speedy generation of roughly feasible production plans bymaximum capacity utilization.High degree of responsiveness and improved information qualityregarding customer’s orders.The sales representative is able to offer delivery commitments onbucket level without relying on the production planner.The production planner can perform scheduling/optimization withinthe buckets.CTP can apply bucket-oriented capacity checks on more than oneresource and at different BOM levels without risking performance orcapacity utilization.No more deterioration of the capacity utilization due to sequence-dependent setups.Performance enhancements through simplified capacity checksduring the CTP run.


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•

Horizon fordetailed

scheduling Horizon for bucket-oriented capacity planning

Planning Horizon

Hierarchical Planning with “detailed” and “bucketed” Horizon


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Multi-Level Scheduling: Long-Term and Short-Term

Short-termadjustments

Resolve BacklogResolve Emergencies

Correct Relations

Few manualactions

In backgroundFor whole plantFull scheduling

horizon

Semi-automaticInteractive(rapid response)Local focus

Near-term horizon

Long-term

planningMaterial PlanningCapacity Optimization

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Multi-Level Scheduling

Before SAP APO 4.1

Only one BOM level with one finite resource can be planed withinteractive scheduling and scheduling heuristics (except for theoptimizer)

Coordination of different BOM levels has to be done by serviceheuristics (Bottom-Up und Top-Down)

As of SAP APO 4.1: Multi-Level Scheduling with Heuristics Forward planning, resolve backlog

Late operations will be planned to the future in the same sequenceUsing the same resourceExisting operations on the resources will be moved to the futureRelations and material constraints will be consideredCustomer demands can be violated

Multi Level Scheduling: Forward planning resolve

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Multi-Level Scheduling: Forward planning, resolvebacklog

4.1Res. 4

Res. 3

Res. 2

Res. 1

2.1

4.2 4.3 4.4

2.4

3.2

2.2

1.21.1

3.3

2.3

1.3

3.4

1.4

Problem 2: Backlog operations

Problem 3: violated

relationships orbackward pegging

Problem 1: capacityoverloads

3.1

today

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Forward planning, resolve backlog

Res. 4

Res. 3

Res. 2

Res. 1

4.3 4.4

3.3

2.3

1.3

3.4

1.4

4.1

3.1

2.1

4.2

3.2

2.2

1.21.1

2.4

No morecapacityoverloads

No violatedrelationships and

no backwardpegging

No backlog

Top level demandcan be violated

today

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Error-tolerant Scheduling: Old Behavior (4.0)

21 3

41 5 22

1

4

5

“All or nothing” – principleViolation of constraints can lead to termination of scheduling

Example

Sched. Mode:Insert Operation

l h d l h ( )

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Error-tolerant Scheduling: New Behavior (4.1)

21 3

4

41 52

1

Sched. Mode:Insert Operation

5

2

3

Error-tolerant scheduling loads as many activities as possiblewith the normal strategy and the activities that can’t be scheduledwith the normal strategy with an error-tolerant strategy

Error-tolerant Mode:Schedule Deallocated

Example

7 error-tolerantmodes available in strategy profile

Optimization: Capacity Adjustment - Production

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Optimization: Capacity Adjustment ProductionPlans without Lateness

The Problem: Capacity problems If production capacity is not sufficient, orders get scheduled late.

The Goal: Decision support Provide an indicator for the production scheduler where toincrease capacity (e.g. via extra shifts) to produce all orders intime.

The Solution

PP/DS Optimizer deallocates late operations. The deallocatedoperations indicate to the production scheduler where capacitybottlenecks are.

Now, the scheduler can take actions to resolve the bottlenecks.

Optimization: Capacity Adjustment - Production

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p p y jPlans without Lateness

B

A

C

week 5 week 6week 4

C

B

A

week 5 week 6week 4

Late order...

... deallocation indicatescapacity bottleneck inweek 4 ...

A

week 5 week 6week 4

... capacity increase inweek 4 solves theproblem!

Example

Project Manufacturing Business Pain Points

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Sales Cycle

Management

Project Manufacturing – Business Pain Points

Too low transparency in the supply chain

Weak coordination and integration ofproject planning, engineering andproduction

Missing parts and capacity overload

not considered in scheduling causingproduction disturbances resulting in highstock levels and low capacity utilization

Expensive short-term corrective action

Long lead times

Frequent delays in deliverycausing penalty costs

Manufacturing:

Engineer-To-Order

Concept & Product

Development

Production &ProcurementCoordination

Shipping, Assembly

& Project Billing

Project DrivenProduction &Procurement

Project Planning &

Engineering

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Advanced Planning for Project Manufacturing

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with SAP APO - Benefits Advanced Planning and Optimization

Constraint Based PlanningFlexible Scheduling HeuristicsOptimization to reach global planning goals

Coordination across the completesupply chain

Integrated project and production planningMulti-level scheduling(bottom-up, top-down)Backlog-free planning – feasible plans

Transparency and VisualizationPegging – automatic matching ofdemand and supplyVisualization of complete flow(project, production, procurement)Alerts - Early warning system for lateorders, bottlenecks, missing parts

Adaptiveness and SimulationWhat-if simulationSolve bottlenecks using alternative workcenters or production versions, overtime,external procurement, stock transfer, …

Project Planning

Production

Procurement /Warehouse

Business BenefitsReduce lead timesReduce inventoryIncrease throughputDeliver on time

Enhancements in Planning with Safety Stock

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Enhancements in Planning with Safety Stock

Two different types of safety stock planning proceduresVirtual safety stock demands within heuristic calculationReal safety stock demands with order priority

New Alert TypesSafety Stock ShortfallTarget Stock ShortfallTarget Stock Level Exceeded

Availability of Safety StockSafety stock should be available to smooth production, small demandsshould not trigger productionTarget stock level methods used to model availability

BenefitsAlert based monitoring of stock levelSmooth production

Agenda

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Agenda


Systems

New/Improved Planning Processes- Fixed Pegging- Bucket-oriented CTP- Scheduling Enhancements- Project Manufacturing- Planning with Safety Stock


Usability Enhancements: Product View

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Usability Enhancements: Product View

Selection Rules

Pegging Overview & Maintenance

Usability Enhancements: DS Planning Board

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Usability Enhancements: DS Planning Board

Simulation Version: Save as ... / Copy Graphical Enhancements

PP/DS HorizonPlanning Time FenceOrder from PP-PI: Setup and Produce in one line

Enhanced Search FunctionOrder Number

Product IDProduct DescriptionSetup GroupSetup Key

Order-Copy / Create with Template

Order-Split (available on request)

Copyright 2005 SAP AG. All Rights Reserved

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