improved material and production planning with suite on hana

Improved Material and Production Planning withSuite on HANAApril 2014

Andy Macaleer – SAP Solution Management LOB Manufacturing

© 2014 SAP AG or an SAP affiliate company. All rights reserved 2

Improved MRP and PP with Suite on HANAAgenda

Today’s Challenges

MRP Today

MRP on SAP HANA

Smart Business for MRP Demo

Technical Information

Value Proposition

Wrap-Up


Material Planner

Material planner’s questions:

Can I fulfill all the material demands?

If not, which materials are short and when?

Do I have enough supply to meet thedemand?

If not, which materials are most critical?

Which important orders and customers aremost affected?

How do I resolve the most critical materialshortages?

??

Improved MRP and PP with Suite on HANASupply and Demand Evaluation Today




MRP Today

MRP on SAP HANA



Value Proposition

Wrap-Up


Improved MRP and PP with Suite on HANAWhat Is Material Requirements Planning?

5

Supply Situation

Inventory

Stock Transfers

Purchase Orders

Goods Receipts

Demand Requirements

Sales Orders

Forecast Demand

Stock Transfers

MRPMatch Supplyand Demand

IdentifyShortages

Solution Recommendations

Planned Orders

Stock Transfers

Purchase Orders


A material planner is responsiblefor hundreds of materialsChallenged by dozens of exceptions adayTime is limitedFocus on the most important andurgent issuesManually intensive analysis of thestock requirements listAdditional information from multiplesources is required to answer thesequestions

Improved MRP and PP with Suite on HANADetecting the Most Critical Issues

?


MRPPlanning

Run

MRP Planning RunBatch process - resource and data-intensiveLong execution time – runs once a week, every couple ofdays, or nightly

Evaluate MRP Requirements“Snapshot” of material requirements based on MRP runSnapshot immediately outdated after new supply anddemand activity occursEvaluate Stock Requirements2nd most widely used transaction across all of ERPVery slow to execute

• Change Production Order• Change Planned Order• Change Purchase Order• Change Purchase Requisition

Improved MRP and PP with Suite on HANAMRP Today – Batch-Driven Process and Multiple ERP Transactions


Improved MRP and PP with Suite on HANAStep by step process in ERP

Process today

MD01 /RMMRP000

EvaluateMRP Lists(snapshot)

MRP PlanningRun

MD06

Challenges:Long and resource intensive MRP runsmeans a periodic, batch processNew demand and supply changes makeMRP plan immediately out-datedNo real-time, single view of materialinformation and shortages across sitesSingle material, single site, manuallyintensive shortage identificationNavigation to multiple ERP transactionsrequired to evaluate solution alternativesResults in poor decision making

User interaction

Batch Job

EvaluateStockRequirementsList

MD04

Display / ChangeProduction OrderCO02/03

MD12/13Display / ChangePlanned Order

ME22/23NDisplay / ChangePurchase Order

ME52/53NDisplay / ChangePurchase Requisition

…




MRP Today

MRP on SAP HANA



Value Proposition

Wrap-Up


Improved MRP and PP with Suite on HANAMRP on SAP HANA - Improving the Plan to Produce Process

Roles

Sales OrderEntry MRP Live Release to

ProductionConfirm

OperationsInteractivePlanning

ProductionPlanner

ProductionSupervisor

ProductionWorker

Monitor &Control

ProductionPlanner


Improved MRP and PP with Suite on HANAStep by step process in SoH

Benefits:• More frequent MRP runs

• More timely and accurate material info

• Single, real-time view of materialshortage information across sites

• Sales order, inventory and procurementviews

• Simulate solution viability andeffectiveness in real-time

User interaction

Batch Job

MD01N

Real-timeSupply &Demandevaluation

New MRPPlanning Runon HANA

MRPFIORIApps

Smart Business for MRP:• Improved, streamlined UI for

Material Planner

• Based on near-real time MRPinformation

• Improved identification andprioritization of materialshortages issues

• Solution recommendation andpreview capability for improveddecision making

• External procurement – RTC Q12014

• In-House Production – 2014roadmap

~10Xfaster

… and now with Suite on HANA


Improved MRP and PP with Suite on HANAMore Frequent MRP Runs, More Accurate Data, Better Decisions

MRP Live:

Faster MRP run More frequent planningUp-to-date information

Detect and evaluate material shortages withflexible rules

Find critical demands - uncovered salesorder items or missing parts in production

Find critical supplies - late or overduepurchase orders or production orders

Evaluation of consequences - which salesorders are endangered by a late supply

Material Planner


Improved MRP and PP with Suite on HANASmart Business for MRP

Real-time InformationReal-time metrics and KPIs by material,order, inventory, and procurementPersonalized views

Enterprise-Wide VisibilityAcross thousands of materials, hundredsof locations, hundreds of thousands ofstock situations

Consumer-Grade User ExperienceVisually appealing UIsRed, yellow, and green status for simpleissue identification


Improved MRP and PP with Suite on HANAImproved Solution Identification and Resolution

Highlighted IssuesIdentification and prioritization of mostcritical material shortages based oncurrent information

Time-Critical PerspectiveGraphical stock situation for next 21days

Solution RecommendationPresentation of best solution optionsPreview solution viabilitySimple solution application


Improved MRP and PP with Suite on HANAFiori Apps for Production Planning

Release Production OrdersReview orders to be released based oncustom user-defined variantsVisibility to missing partsConfirm Production

Streamlined UI for full and partialproduction confirmationGraphical bars and color-coded statusBrowser-based, HTML5 UI for use withdesktop, tablet, and mobile devices




MRP Today

MRP on SAP HANA



Value Proposition

Wrap-Up


Improved MRP and PP with Suite on HANAMRP Performance Optimized on SAP HANA

StorageLocation

ABC

Material

123

MRP MRP DataInventory

Material ReceiptsSales Orders

Purchase OrdersStock Transfers

POs SOs MRs

MRP Live

Now Future

SAPHANA

STs


Traditional DB

Improved MRP and PP with Suite on HANADeployment Options and Architecture

SAP HANA DBSAP HANA DB

SAP HCM

(EHP7)Payroll

HRRenewal2.0 (UX)

SAPNetWeaver

7.4

Integrated Suite on SAP HANA Scenario Side-by-Side Scenario

SAP HCM

(EHP7)Payroll

HRRenewal2.0 (UX)

SAPNetWeaver

7.4

Exists, but can not be utilized for MRPon SAP HANA

Full deployment as part of Suite onSAP HANARequired for MRP on SAP HANA

‘Declustered’

tables


Improved MRP and PP with Suite on HANAMRP on SAP HANA Roadmap

Usage

FeaturesLong tail

Q1 Q3 Q4

Optimize reading of material receipts and requirements

Plan externally-procured materials in SAP HANAusing demand-driven planning

Plan manufactured non-configurablematerials in SAP HANA; Reorder pointplanning in SAP HANA

2013 2014




MRP Today

MRP on SAP HANA



Value Proposition

Wrap-Up


How often do you run MRP ?Do problems in your material flow remainundetected, or are they detected too late?Do you make decisions based on periodic MRPruns that don’t reflect current information?How do you handle open orders at the end of thequarter?

36%Reduction in out of stocks

* KPI improvements are based on benefits of traditional MRP. Improvements based on HANA will need to validated with specific customers

Improved MRP and PP with Suite on HANAReducing Material Shortages Improves Overall Supply Chain Performance




MRP Today

MRP on SAP HANA



Value Proposition

Wrap-Up


Improved MRP and PP with Suite on HANAWhere to Find More Information

MRP on SAP HANA Factbook:www.saphana.com/docs/DOC-4214

SAP ERP Production Planning Infohttp://scn.sap.com/community/erp/manufacturing-pp

SCN Manufacturing Communityhttp://scn.sap.com/community/manufacturing


Improved MRP and PP with Suite on HANAKey Points to Take Home

MRP Live delivers faster and more frequentmaterial planning runsSmart Business for MRP provides real-timevisibility to material information, facilitatingimproved issue resolution and decision makingSAP Fiori for Production Planning delivers visuallyappealing and improved UIAll of which improve the efficiency of the materialplannerReduced material shortages contribute toimproved supply chain metrics and KPIs acrossthe enterprise

Contact information:

Andy Macaleer – [email protected]

Thank you


© 2014 SAP AG or an SAP affiliate company.All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG or anSAP affiliate company.

SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG(or an SAP affiliate company) in Germany and other countries. Please see http://global12.sap.com/corporate-en/legal/copyright/index.epx for additionaltrademark information and notices.

Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.

National product specifications may vary.

These materials are provided by SAP AG or an SAP affiliate company for informational purposes only, without representation or warranty of any kind,and SAP AG or its affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP AG orSAP affiliate company products and services are those that are set forth in the express warranty statements accompanying such products andservices, if any. Nothing herein should be construed as constituting an additional warranty.

In particular, SAP AG or its affiliated companies have no obligation to pursue any course of business outlined in this document or any relatedpresentation, or to develop or release any functionality mentioned therein. This document, or any related presentation, and SAP AG’s or its affiliatedcompanies’ strategy and possible future developments, products, and/or platform directions and functionality are all subject to change and may bechanged by SAP AG or its affiliated companies at any time for any reason without notice. The information in this document is not a commitment,promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various risks and uncertaintiesthat could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-lookingstatements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.

improved material and production planning with suite on hana

Documents