- 1 - apo 02 - snp 00 supply network planning overview
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APO 02 - SNP 00Supply Network Planning
overview
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Course Objectives
Course objectives
Be aware of how APO covers the Supply Planning requirements within Danone
Understand the SNP concept
Understand the data models and navigation tools
Be able to navigate on your own
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Agenda
Course introductionSNP conceptsForecast releaseNetwork planning (DRP)Medium & Long term production planning (MPS)DeploymentPurchase finished productsIntercompanySubcontractingTools : Alert monitor & cockpit
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1.2 MIDDLE-TERM DEMAND
1.2 MIDDLE-TERM DEMAND
Strategic
3 years horizon
Tactical
1 Year horizon
Operational
3 weeks
Material requirement planning (MRP-R/3)
Supply Network Planning (SNP)
Demand planning (DP)
1.1 LONG TERM DEMAND
1.1 LONG TERM DEMAND
3.1 DISTRIBUTION REQUIREMENT
PLANNING
3.1 DISTRIBUTION REQUIREMENT
PLANNING
2.3 DISTRIBUTION REQUIREMENT
2.3 DISTRIBUTION REQUIREMENT
2.4 MID-TERM MASTER
PLANNING
2.4 MID-TERM MASTER
PLANNING
2.5 MATERIAL REQUIREMENT
PLANNING
2.5 MATERIAL REQUIREMENT
PLANNING
2.1 INDUSTRIAL and LOGISTICS VISION and STRAGTEGY
2.1 INDUSTRIAL and LOGISTICS VISION and STRAGTEGY
2.2 MATERIAL CONTRACTS
2.2 MATERIAL CONTRACTS
Very short-term
3 days
3.4 DEPLOYMENT
3.4 DEPLOYMENT
1.3 SHORT-TERM
DEMAND
1.3 SHORT-TERM
DEMAND3.2
SCHEDULING
3.2 SCHEDULING
3.3 MATERIAL RELEASE AND
USAGE
3.3 MATERIAL RELEASE AND
USAGE
How APO covers supply chain process
Production planning Detailed scheduling
(PPDS)
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SNP CONCEPTS
Course introductionSNP conceptsForecast releaseNetwork planning (DRP)Medium & Long term production planning (MPS)DeploymentPurchase finished productsIntercompanySubcontractingTools : Alert monitor & cockpit
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copacking site
Supply Network & locationsconcept
production site
expedition centre
distribution centre
external customer
no product transformationno deliveries to the final customerf.e. : water seasonal storage « greniers »
site with product tranformationcomponents in BOM sourced from external suppliers
site with product transformationcomponents in BOM could be sourced in other internal sitef.e. : biscuits promo copacking sites
no product transformationdeliveries to the final customer
external supplier
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Master Data Location
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Master Data Product at location
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user environmentSNP planning books
Header (used for drill down)
Selection(available data)
selection profile (predefined data groups)
planning book(defines “lines” in planning book)
- data view (defines “columns” in planning book)
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Unit of measure
All DP environments are based on one UOM :
dairy : TON biscuits : TON water : KBT
this is the one and only available UOM on the aggregated levels
on the lowest (product) level the default UOM could be set per user per planning book (specific development to be switched on) to any UOM defined in the material master (carton, pallet,…)
on the lowest (product) level UOM could be manually changed to any UOM defined in the material master (carton, pallet,…)
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user environment SNP planning book concept
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user environmentSNP planning books
Planning area one planning area common for WBU (all data is stored in same database !) defines the UOM used in the planning books (see later) key figure : what ? Characteristics : what ?
Planning book what ?
Data view what ? Time bucket profile : what ?
Planning books used by SNP planners :
core_prod_ST/MT/LT for analysis of production planning on product level core_capacity for analysis of production line capacity
core_purch_ST/MT/LT for planning of purchased finished products
core_depl_xxxx for deployment purpose
core_mass_xxxx : planning books only used by jobs
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FORECAST RELEASE in SNP
Course introductionSNP conceptsForecast releaseNetwork planning (DRP)Medium & Long term production planning (MPS)DeploymentPurchase finished productsIntercompanySubcontractingTools : Alert monitor & cockpit
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Supply Network Planning release of the demand plan in SNP
The Supply Planning Flow
The starting point of Supply Planning is the expression of DemandIn our case, almost all demand is based on ForecastForecast quantities are transferred as independent demand and are expressed at item level in a specific location
Elaborate
Demand
Plan
Run Distribution
Plan (long/medium term)
PlanPromotions
Productintroduction /
Life end
Forecast
Sales
Run Production
Plan (long/medium term)
DEMAND PLANNINGSUPPLY NETWORK
PLANNING
demand
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interface demand planning - supply network planning
Forecast data will be transferred on the level :
article (=SKU) per warehouse (Distribution Center - DC) total for all clients distributed from concerned DC biscuits and water : day (up to end w+3)
week (up to end m+4)month (up to end m+18)
only for future (period split = 1)
articlehierarchy
article (SKU)
product variant (PV)
forecast unit (FU)
umbrella brand
product brand
clienthierarchy
regionalforecast account
nationalforecastaccount
clientcountry
logistichierarchy
DC
totalcountry
DC
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Demand release in the network
copacking site
production site
expedition centre
distribution centre
independent demand (forecast) on DC
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Forecast consumption (1)
Elaborate
Demand
Plan Plan
PromotionsProduct
introduction /Life end
Forecast
Sales
Run Distribution
Plan
Run Production
Plan
DEMAND PLANNINGSUPPLY NETWORK PLANNING
demand
…..
R/3
APO
shipments
…..
orders
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forecast consumption (2)consumption by orders
No Forecast consumption : all planning will be based on forecast, no order impact mostly used for all WBU, because planning cycle is much longer than order cycle
(ex. dairy : orders still arrive on delivery date)
Forecast consumption : orders « consume » forecast for a predefined period when they exceed the forecast
this strategy could occasionally been used for CBU ’s with a long order lead time.
Forecast « replacement » : forecast will be replaced by order book,during predefined horizon. This option will only be used for specific articles.
for biscuits : e.g. export articles produced on orders horizon = 3 weeks for dairy : e.g. : specific private label products horizon = 1 week for water : e.g. : export clients not in VMI horizon = 8-12 weeks
Forecast « corrections » (in DP) : forecast will be corrected based on order book.E.g. : at the end of w-1, order book contains half of the estimated forecast for week w0
this will be managed in DP mainly for articles with low revision frequency
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forecast consumption (3)forecast update by input/output transactions
Goods issue and Production Transactions are real time interfaced with R/3
« goods issues » forecast consumption => stock is reduced when goods issues is executed => forecast is reduced at same moment by the shiped quantity*
remark : also « production orders » influence stock on line => stock is increased when goods are confirmed in production => plan order remaining quantity to be produced is reduced by production
confirmation
* forecast will only be reduced at the current day
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Product master data - forecast consumptiondemand view
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NETWORK PLANNINGDRP
Course introductionSNP conceptsForecast releaseNetwork planning (DRP)Medium & Long term production planning (MPS)DeploymentPurchase finished productsIntercompanySubcontractingTools : Alert monitor & cockpit
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Master Data Transportation Lanes
DC 0010
DC 0012
factory 0007
TLB profile
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supply plan on a distribution center
copacking site
production site
expedition centre
distribution centre
independent demand (forecast) on DC
Requested receipts
Receipts requested(= distribution receipts SNP)
stock
Demand- forecast- distribution demand- dependent demand
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Network planningconcept
copacking site
production site
expedition centre
distribution centre
independent demand (forecast) on DC
Requested receipts
D1 D2 D3 D4 D5 D6 …Total Demand 200 300 200 250 250Total Receipts 250 300 200 250 250Stock 100 150 150 150 150 150
stock
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SNP networkexample
Product : 795
planning book : article 795 on DC 0010
planning book : article 795 on factory 0007
safety stock in DC : 10days
DC 0010
DC 0012
factory 0007
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Supply Planningmanaging projected stocks
GoodsReceipt
GoodsDemand
Stockon-hand
time
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Supply Planning processSNP heuristic (network calculation)
R R RTime
Max. level
Safetystock
Stock
Reorderpoint
Processes : lot for lot : supply follows demand (used for all WBU) fixed lot size fixed period reorder point / supply coverage
Constraints used for Danone:lead timemin/max lot sizerounding valuesafety stock
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Distribution requirement planplanning constraints for Danone
no multisourcing : one article/DC combination will be sourced from one location
sourcing network will be considered as static : changes are possible but not planned or « optimised »
minimum rounding profile in regular all inter site shipments will be organised with one pallet minimum for low rotating articles (mainly dairy) a pallet layer is accepted as minimum
(to be specified per article)
multiple rounding profile in regular multiples of full pallets low rotating articles for dairy : also multiples of layers for specific articles
no inventory optimisation is considered in a first phase no warehouse capacity management push/pull strategies are only available on short term deployment
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Product master data lot size view
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Medium & Long term production Planning (MPS)
Course introductionSNP conceptsForecast releaseNetwork planning (DRP)Medium & Long term production planning (MPS)DeploymentPurchase finished productsIntercompanySubcontractingTools : Alert monitor & cockpit
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supply plan on a plant
copacking site
production site
expedition centre
distribution centre
independent demand (forecast) on DC
stock
stock
requested receipts
Planned orders
Demand- forecast- distribution demand- dependent demand
Receipts requested(= distribution receipts SNP)
Demand- forecast- distribution demand- dependent demand
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Master planning (MPS)Resource load
All planned orders are totalised : in the production plant per article from all DC ’s per period
production plan model (PPM):puts the demand on a resource
resource groups receives the load
= total of all the planned orders
300 : Planned order art. A for week 2
production site
100(from DC1 for week 2 )
200(from DC2for week 2 )
production line (resource)
PPM
load
timeweek 2
300
art A
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Resource definitionAPO concept
A resource in APO represents a production line different resource types could be defined, depending on the module :
SNP : bucket resources : manual master data entry PPDS : single and multi resources : automatic upload, based on R/3 master data
Calendar W8 : always open
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ResourceUOM issue
for SNP bucket resources, UOM should be defined : time UOM (Hours) : represents most relevant business approach, but there is no possibility to
totalise two production lines with different output and independent capacity planning :
example : Evian has two production lines, different output (bottles/hour), but they could be independently planned (line 1 : 3 shifts/day , line 2 : 2 shifts/day)
mass UOM (Tons or Kbottles) : is less transparant for planner, and the output should be equal for all products.
example : a biscuit production line, produces 2 types of biscuits : biscuit A is produced at 1Ton/H, biscuit B is produced at 2Ton/H. The output of the production line is defined in Tons ; it should be defined as a weighted average of both products.
EXAMPLE with UOM MASS
line capacity 15 T (5T average/shift - 3
shifts)
prod A 1000 PC = 1T capacityprod B 1000 PC = 2 T capacity
plan order A : 1000 PC1T resource load
EXAMPLE with UOM TIME
line capacity 24H (3 shifts)
prod A 1000 PC = 1 H capacity conso (average output)
prod B 2000 PC = 1 H capacity conso (average output)
plan order A : 1000 PC1 H resource loadZFACTORS transaction
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Resourcecapacity definition
enter the number of shifts you want to plan the system will make the conversion to the capacity of the resource, based on the zfactors table remark 1 : in order to validate the entry, you should leave the transaction remark 2 : the unit SH could be interpreted by the local CBU
Enter number of shifts
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Production process model
Activity : production 2
Activity : production 1
Activity : set up
componentsresources
IN OUT
Production process XYZ
APO PPM concept
PPM application for DANONE
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Production process modelAPO view
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Use of SNP resources and PPM models for Danone
PPM models could be defined for several purpose :
standard resource : resource related to physical production line
general resource : resource related to group of production lines business concept :
situation with multiple production lines with similar products planner prefers to plan them as one general production line each of the underlying production lines could be planned individually
see next slide for APO concept
family resource : resource related to families business concept :
planner wants to group SKU’s in same family planner plans families in specific time buckets (w)
see next slide for APO concept
labor resource : resource for labor planning business concept : labor pool (f.e. pool of packaging labor) is planned per week consider “labor pool” as a standard resource ; define consumption in man.h./unit in PPM
Family 1 :vanilla
Family 2 :chocolate
production line 1
production line 2
SKU1(line 1, fam 1)
SKU2(line 1, fam 2)
SKU3(line 2, fam 1)
SKU4(line 2, fam 2)
general resource(line 1 + line 2)
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general resourceconcept
business concept : situation with multiple production lines with similar products planner prefers to plan them as one general production line each of the underlying production lines could be planned individually
example : 3 actimel filling machines, all of them could produce 100g format in different perfumes Prince Fourré production lines : line 7 (standard rolls) line 8 (standard rolls & pocket) 2 EVIAN PET lines in Evian factory, able to produce all 1,5 l SKU’s
APO concept : define UOM (TON is recommended) for each line enter capacity in planning book CORE_CAPACITY level on general resource
production line 1
production line 2
general resource(line 1 + line 2)
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general resourceexample
In plant 0031 two production lines produce the same type of products and are considered as one resource for medium & long term planning :
0006_WROAL1314
these resource is defined in tons, because output is different on each of the production lines :
0006_WROAL1314 - line 1 (WROAL13) : 35,640 T/H 0006_WROAL1314 - line 2 (WROAL 14) : 36,564 T/H
Total capacity is calculated based on :- number of shifts- output rate in zfactors
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family resourceconcept
business concept : planner wants to group SKU’s in same family planner wants to plan family in specific time buckets (weeks)
example f.e. : 3 dairy yohourt filling lines : all 3 lines can fill 100g packs, only one can fill 400g family pack f.e. : Petit ecolier lines : 2 lines can produce milk & fondant chocolate, one can produce other
perfumes f.e : 2 PET lines in Riardo : can produce the same products but at a different capacity rate
APO concept : define each family as a resource define in PPM :
consumption of concerned physical production line consumption of concerned family resource
plan capacity on each of the resource assure manually consistency : total capacity of the families = capacity of physical resource
level each of the family resource individually ; analyse afterwards total on physical resource
Family 1:vanilla
Family 2:choc
SKU1(line1,fam 1)
SKU2(line1, fam2)
SKU3(line2, fam1)
SKU4(line2, fam2)
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family resourceexample
In plant 0007 one specific family on the production line WP1 : Products on this production line should be grouped and planned together (f.e. 1x/2weeks) For this purpose an extra resource has been defined : 0007_WP1_POLOMACENE
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Family resource PPMexample
The PPM for Article 867 has 2 activities standard production activity on resource 0007_WP_1 “calendar” activity, representing the family on 0007_WP1_POLOMACENE
Capacity consumption is defined on 2 resources :
WP1 : production lineWP1_POLOMACENE : family
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Master planning (MPS)Resource load
All planned orders are totalised : in the production plant per article from all DC ’s per period
production plan model (PPM):puts the demand on a resource
resource groups receives the load
= total of all the planned orders
300 : Planned order art. A for week 2
production site
100(from DC1 for week 2 )
200(from DC2for week 2 )
production line (resource)
PPM
load
timeweek 2
300
art A
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MPS Planning Capacity evaluation
Cap
acit
y lo
ad
Time
Resource capacity
time bucket
Resource x(production line)
Over Capacity
Resource load
Backward leveling
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Capacity planningdairy
Check if total capacity matches with resource load.
Modify eventually capacity on one of the production lines in the general resource
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Capacity planningbiscuits / water
Check if total capacity matches with resource load.
Launch eventually automatic capacity leveler as a first planning optimisation, before manual plan modifications
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Product planningbiscuits
Planning book :Core_Global_stock
Selection :all articles on one line / all locations
analyse the proposal of SNP plan run and the leveler. Enter new or modify existing plan orders with continuous check of the constraints :
- total load of the line. Check also total load in the capacity planning book (see former slide)
- stock coverage of the product
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Family planning
Products 854 and 855 belong to a family with low volume, planning for these SKU’s is grouped every 3 weeks.
- define calendar open every 3 weeks for the family resource 0007_WP_Prince_ovoce
- level on this family resource
- orders for the concerned products are automatically put on the open weeks
Products 854 and 855 belong to a family with low volume, planning for these SKU’s is grouped every 3 weeks.
- define calendar open every 3 weeks for the family resource 0007_WP_Prince_ovoce
- level on this family resource
- orders for the concerned products are automatically put on the open weeks
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Multilevel supply plan process
external customer
external supplier
3° stepaggregation of demand to production sites
2
4
1
3
2° stepproduction planning on dependent copacking sites
4° stepproduction planning on production plants
1° stepaggregation of demand to copacking and production sites
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Planning processsummary (biscuits/water)
Run network SNP heuristic Run factory SNP heuristic (outside offset period)
evaluate product plan in core_prod_MT evaluate capacity load in core_capacity ==> make capacity modifications
==> run leveler
make manual modifications (for next period, entering in offset) analysing : stock per product in core_global_stock plan per product in core_global_stock capacity load of the line in core_capacity
convert w+1 to PPDS (Wednesday morning)
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SNP <-> PPDS
SNP = long/medium term planning , PPDS = short term planning SNP : until end of M+6 => one order per week
until end of M+18 => one order per month
PPDS : 16 days rolling for dairy => correct start/end timeend of next week for biscuits
PPDS : finite capacity planning
Cap
acit
y lo
ad
Time
Resource capacity
time bucket
Over CapacityBackward
leveling )
Resource load
SNP : bucket planning
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DEPLOYMENT
Course introductionSNP conceptsForecast releaseNetwork planning (DRP)Medium & Long term production planning (MPS)DeploymentPurchase finished productsIntercompanySubcontractingTools : Alert monitor & cockpit
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Deployment concept
copacking site
production site
expedition centre
distribution centre
DC1
plant A
independent demand (forecast) on DC
stock
Demand from plant ADemand from DC1
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Deployment master data
Push strategy (define push strategy = X) define push horizon on factory = max horizon where (expected) stock will be included for
deployment (if also included in deployment horizon*)
Pull strategy horizon (define push strategy= blank) define push horizon on factory = max horizon where (expected) stock will be included for
deployment (if also included in deployment horizon) define pull horizon on factory = max horizon where demand will be fulfilled at due date
(if in deployment horizon* and supply is available)
Combined Push/Pull horizon (define push strategy = P) define push horizon on factory = max horizon where (expected) stock will be included for
deployment (if also included in deployment horizon) define pull horizon on factory = max horizon where demand will be fulfilled immediately
(if in deployment horizon* and once supply is available)
* deployment horizon = horizon used by job for daily deployment plan calculation
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Deployment master dataproduct master - SNP2 view
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Deployment process Available to deploy =stock and plan orders
D+1
Demand from DC
on factoryresult of SNP run =
plan distrib. receipts
* D+1 is depending on local situation
D+0
Available to deploy at D+1
STOCKD+0
PRODUCTIONORDERS
PLANORDERS
Deployment calculation for D+1*based on “available to deploy quantity”
Deployment based on
daily buckets !
Deployment based on
daily buckets !
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shortage managementfair share rules (1)
Fair share A: percentage repartition by requirements
base concept used by all BU
Fair share B: percentage of target stock
not used
Fair share C: percentage repartition by quota arrangement
used for manual shortage mgmt
Fair share D: repartition by priority
not used
Fair share A: percentage repartition by requirements
base concept used by all BU
Fair share B: percentage of target stock
not used
Fair share C: percentage repartition by quota arrangement
used for manual shortage mgmt
Fair share D: repartition by priority
not used
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Fair share rules (2)
Fair share on two levels : - National level (between CBU’s)
- Between CBU’s clients (not in APO)
Total demand 100available : 60 ======> all DC’s receive 60% of their demand
DC 1demand : 40
DC 2demand : 60
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Fair share rules (3)
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Deployment process
Requirement plan calculated in network planning
Deployment runcheck demand vs availability
apply fair share
TLB runtransport truck building
R/3 Execution
Planned demand
Confirmed demand
TLB Confirmed demand
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Deployment run
DC
factory
independent demand (forecast) on DC
distribution receipts(purchase requisition)
Distribution demand
stock
Plan order
stock
forecast
Production order
Confirmed distribution demand (=> TLB)
confirmed distribution receipts (=> TLB)
forecaststock
stock
deployment run
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Deployment in APO
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Deployment in APOTLB view
The result of the deployment run (overnightjob), is the input of the TLB view. Here the deployment planner will built the trucks. He could launch the automatic TLB run (eventually with deployment anticipation for truck completion)*
Example:- truck capacity = 10 pallets- transport lead time 0007->0010 = 1 day
*an investigation is currently made on truck optimisation in function of multiple constraints as : min and max stock coverage in DC, min lot size per layer or per pallet,…..
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Deploymentmodifications
Evaluation stock in DCcore_storage_ST
Evaluation stock in plantcore_depl_ST
Eventually modifications could be made in the TLB view (manually modifying or creating STO order lines, manual truck creation). After saving, the results could be analysed on the plants in two available planning books.
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Deployment processindicative deployment
Deployment calculation is based on result of SNP plan. If you do not exactly ship what is required by the DC (pure pull scenario), two scenario’s are possible :
- push : enlarge the deployment horizon and the deployment run will give an indication of the volumes to be shipped in the near and eventually long future
- pull with modifications : if these modified volumes have to be known in advance (because f.e. they are important or this plan is the indication for a just-in-time deployment), the result of the SNP heuristic could be modified in an offset horizon (that will not be recalculated by the heuristic)* The deployment run will deploy, following the modified planned distribution receipts. * an investigation is currently made to analyse how the distribution demand could be automatically optimised in
function of a list of constraints in the network (f.e. warehouse capacity, costs, min/max stock coverage,….)
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Deployment processindicative deployment plan
Make modifications in distribution demand and check stock in all locations.
The offset should be set that this period will not be recalculated, but managed by alerts.
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Deployment processQuarantaine management : definitions
Definition hard quarantine : goods could not leave the factory for the DC
before hard quarantine is cleared (also for Slovakia deliveries)
soft quarantine : goods could not leave for client delivery before soft quarantine is cleared.
Constraint for APO : Hard quarantine is fixed in APO at xx h for all products (no exceptions) Business principle will be designed that there is no possibility in APO planning to send products
under hard quarantine to a DC
it will only be possible to break this rule in R/3 (manual non planned shipment)
soft quarantine is not managed in APO
Soft quarentaineAvailable stock Hard quarentaine
Available stock Stock in quality inspection*
Available stock Stock in quality inspection (CF)*
R/3
APO
business
*different status from “blocked stock” (status CI in APO)
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Deployment process with quarantineavailable to deploy = stock
D+1
Demand from DC
on factory
D+0
stock in hard quarentine
ATD = total stock (in & out Q)
Soft Q
Soft Qstock in hard quarentine
Deployment calculation for D+1*based on “available to deploy quantity”
In production
In production
Deployment based on
daily buckets !
Deployment based on
daily buckets !
available
available
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Deployment including quarentineexample (1)
D-1 D+0 D+16h 8h 10h12h14h16h18h20h22h0h 2h 4h 6h 8h 10h12h14h16h18h20h22h0h 2h 4h 6h 8h
SEDLEC
Client deliverySedlec client goods issue 13h 5hSedlec client delivery preparation
Sedlec reciept 8h 17hBenesov goods issue to Sedlec 22h
production order + quarentaine 8h
<-- 8h : deployment run for D+2
D-1 D+0 D+1 D+20h 6h 8h 10h12h14h16h18h20h22h0h 2h 4h 6h 8h 10h12h14h16h18h20h22h0h 2h 4h 6h 8h 10h12h14h16h18h20h22h0h 2h 4h 6h 8h 10h12h14h16h18h20h
BRNO <-- 0h : forecast
Client deliveryBrno client goods issue 13hBrno client delivery preparation
<-- 12h : distribution receiptBrno reciept 8h 17hBenesov goods issue to Brno 20h
<-- 12h : distribution demand
production order + quarentaine 8h
deployment plan calculation <-- 8h : deployment run for D+0
demand calculation for DC delivery <--5h-13h : demand calculation
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Deployment including quarentineexample (2)
HARD QUARENTAINE : Deployment run will be launched at D+0 8:00
!! prerequisite : quarantine is for all products fixed at 12h (no possibility to differentiate between products)
==> consequence : no product will leave factory before hard quarantine is cleared
!! prerequisite : production after 8:00 will stay in the factory until D+1 20:00
==> consequence : there could be 36 hours stock due to quarantine
If shortage appearsthen fair shareanalysis is applied.
• analysis of actual stock in DC (incl. soft quarantine)
+ confirmed planned dist.reciepts
•analysis of forecast for D+0 and D+1
•calculation of overnight transferrequirements (=APO Plan DistReciepts)
•analysis of total stock available for deployment (at 20:00) in Benesov (= total physical stock at 8:00)
Deployment run at 8:00
SNP demand run at 5:00
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Summary : Deployment for Danone application in function of business case
calculate transport only based on available stock. Suitable for :
pull/push dairy
with quarantine
with immediate execution (very short lead time between calculation and execution)
pull biscuits with (almost) immediate execution or possibility to stock in factory
with indicative deployment plan (auto/manual) and/or manual modifications in TLB
push biscuits with (almost) immediate execution
depending on factory stock capacity, if time delay is acceptable
remark : there is no indicative deployment plan available based on the push deployment run
include prod/plan orders in extrapolated situation. Suitable for :
pull/push dairy for WE (or other situation with longer lead time between calculation and execution)
remark : quarantine is not included in prod/plan order)
pull biscuits for WE (or other situation with longer lead time between calculation and execution)
with indicative deployment plan (auto/manual) and/or manual modifications in TLB
push biscuits if indicative deployment plan is required on LT
remark : SNP calculation could only be made once a day => stock is staying max for one day in factory
only possible if full push scenario is applicable
recommended scenario’s
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PURCHASEFINISHED PRODUCTS
Course introductionSNP conceptsForecast releaseNetwork planning (DRP)Medium & Long term production planning (MPS)DeploymentPurchase finished productsIntercompanySubcontractingTools : Alert monitor & cockpit
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Purchasing FPmaster data
Supplier will exist as a location in APO, product/loc should manually created transportation lane will automatically be created, based on the contract lead time of the contract will be applied on the transportation lane the SNP heuristic will create purchase requisitions these purchase requisitions could be manually modified during an offset horizon (where
the SNP heuristic will not recalculate) the purchase requisitions have to be converted manually in R/3* APO and R/3 are integrated with purch.req. and purch.orders
* an investigation will be made if the conversion could be done automatically for a predefined horizon
DC 0010
DC 0012
Supplier 210004329
R/3 contract will create transportation lane
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Purchasing FPAPO
Make modifications in distribution demand and check stock.
The offset should be set that this period will not be recalculated, but managed by alerts.
EXPORT TO EXCEL FILE and send to supplier
EXPORT TO EXCEL FILE and send to supplier
The Purchase requisitions have to be converted into purchase orders in R3 with the transactions ME58 and ME59
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INTERCOMPANY
Course introductionSNP conceptsForecast releaseNetwork planning (DRP)Medium & Long term production planning (MPS)DeploymentPurchase finished productsIntercompanySubcontractingTools : Alert monitor & cockpit
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APO will become the leverage to optimise an integrated European supply chain
All products, factories, warehouses,…. will be in one system ! APO ignores boundaries and companies !
Manufacturer DC
Manufacturer Plant
Customer DC
Supplier Plant
APO biscuits, water or dairyenvironment
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Intercompany process : version 1 traditional process managed by client
requirements1. Forecast calculation2. Requirement calculation. including transportation constraints
3. Production planning4. Production execution.
6. Transportation7. Execution requirements
5. Shortage management
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Intercompany process : version 2 optimised supply chain management : VMI based
requirements1. Forecast calculation2. Requirement calculation. including transportation constraints
3. Production planning4. Production execution5. Shortage management.
5. Transportation6. Execution
Delivery confirmation
Shortage information
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Intercompany process constraints
Intercompany process should always be based on a pull processor combination push/pull
a distribution plan optimisation, based on min/max stock levels of the client DC is recommendable. This optimisation could actually only be executed manually.
4 scenario’s : only client in APO
scenario = purchasing finished products process
only supplier in APO client sends forecast to supplier, uploaded in supplier’s DP orders, entered in R/3, replace forecast on fixed horizon
supplier and client in APO, deployment organised by client scenario = pull with indicative deployment plan
supplier and client in APO, deployment organised by supplier scenario = standard scenario for internal planning
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SUBCONTRACTING
Course introductionSNP conceptsForecast releaseNetwork planning (DRP)Medium & Long term production planning (MPS)DeploymentPurchase finished productsIntercompanySubcontractingTools : Alert monitor & cockpit
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Subcontractingscenario 1
Subcontracting is considered as an activity in the plant that will be supplied by the subcontractor : in this plant both a purchase order (for a subcontracting service) and a production order will be defined.
This process can only be managed in PPDS : for this reason the production horizon for subcontracted products will be defined at 999 days. (see PPDS training)
Plant Subcontracto
r
Purchase order
10 .....................20 .....................30 .....................
Item CategoriesItem Categories
L Subcontracting
Components
delivery
Finished product delivery
Production order
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Subcontractingscenario 2
In some situations it might be recommendable to define a representing “virtual” plant for the subcontractor:
if deployment has to be organised if stock in subcontracted plant has to be managed in APO if subcontractor receives or ships goods from/to different plants of the CBU if the subcontractor does direct client deliveries
in this situation the PPDS plan run calculation will be followed by a SNP heuristic run, in order to calculate the requirements of the components of the subcontractor on the DC.
Plant 1Subcontractor
PPM
Virtual
plant
Stock Transport order10 .....................20 .....................30 ..................... Components
delivery2
Purchase order 10 .....................20 .....................30 .....................Item CategoriesItem Categories
L Subcontracting
Components transfer posting
Finished product tranfer posting
4
3
1
SNP PP/DS
Finished product tranfer
5
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TOOLS
Course introductionSNP conceptsForecast releaseNetwork planning (DRP)Medium & Long term production planning (MPS)DeploymentPurchase finished productsIntercompanySubcontractingTools : Alert monitor & cockpit
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Alertsconcept
Alerts are available : in planning books in alert monitor
several alert types are defined. They are calculated in background and could be presented in alert monitor.
The alerts in the planning book are interactively calculated. The alerts in the alert monitor are calculated in background and could be presented in alert monitor or the supply chain cockpit.
every user could define an alert profile for his personal use
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Alert monitorset user settings
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Alerts in planning book
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Alerts inAlert Monitor
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Details on SNP Alertson products and resources
Alert on safety stock shortfall
alert will appear when stock gets below safety stock
Alert on shortage (backlog)
alert will appear when shortage occurs
resource overload alert will appear when resource overload is over 5%
insufficient resource utilisation
alert will appear when resource is utilisation is lower than 70%
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Supply chain cockpit
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Models and Planning versions
PPM
Resources
PPM
Resources
Master Data for
PP/DS
Master data in APO
Active model 000
Locations
Simulation
model 1
R/3
Planning version 1
version-dependent master
data and transaction data
Planning version 1
version-dependent master
data and transaction data
Simulation
model N
PPM
Resources
Active planning version 000
version-dependent master
data and transaction data
Active planning version 000
version-dependent master
data and transaction data
Planning version N
version-dependent master
data and transaction data
Planning version N
version-dependent master
data and transaction data
Products
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Model/versions
Plants
DCs
Resources
Products
PPMsModel 1
A version is always related to amodel.
A model may havemore than one planning versions,for simulation purpose
A planning version will use themaster data of the model towhich it is associated and alsothe related transactional data
Master Data transferred from R/3 is automatically assigned to model000.Only one version is LIVE in the systemAll other versions are for simulation purposes Model 2
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Planning book tricks & tips
display note & display detailsdrill down and dependent dataheaderuser settings
hide decimals UOM
user dependent selection list
how to define selection profiles See training document on
navigation tools
See training document on
navigation tools
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Course conclusion
QUESTIONS?