presentation
TRANSCRIPT
APO 3.0Integration
Optimization & Planning
Douglas Godinez Microsoft Corporation
Agenda
Integration with SAP R/3Integration with SAP R/3
Supply Network Planning & OptimizationSupply Network Planning & Optimization
Planning ResultsPlanning Results
Master DataMaster Data
Where we are atWhere we are at
Where we are goingWhere we are going
QuestionsQuestions
Integration with R/3
Integration
What is Integration?What is Integration?
Integration
APO R/3
Random House Definition:Random House Definition:
To bring together into a unified or interrelated whole.To bring together into a unified or interrelated whole.
Integration
The important objects in SAP R/3 and APO that play a role in The important objects in SAP R/3 and APO that play a role in Integration include:Integration include:
•Vendors (MTV)Vendors (MTV)
•Plants (DTV)Plants (DTV)
•MaterialsMaterials
•Transactional ActivityTransactional Activity
•Sales OrdersSales Orders
•Purchase OrdersPurchase Orders
•DeliveriesDeliveries
•Material MovementsMaterial Movements
•InventoryInventory
Integration
In SAP R/3 we have modeled a basic supply chain:In SAP R/3 we have modeled a basic supply chain:
Vendor building & shipping productVendor building & shipping product
DTV storing productDTV storing product
Customers orderingCustomers ordering
productproduct DTV shipping DTV shipping productproduct
Integration
Plants -or- DTV’s are the central hubs of activity.Plants -or- DTV’s are the central hubs of activity.
These locations (MTV and DTV) and activities These locations (MTV and DTV) and activities (transactional data – from previous slide) are (transactional data – from previous slide) are communicated to APO for planningcommunicated to APO for planning
This communication to APO is done via the Core This communication to APO is done via the Core Interface (CIF)Interface (CIF)
CoreInterface
R/3APO
Integration
The Core Interface (CIF) is the software application that The Core Interface (CIF) is the software application that communicates information between APO and R/3.communicates information between APO and R/3.
Communication can be setup in a batch or real-time environment.Communication can be setup in a batch or real-time environment.
Both Master Data and Transactional data can be sent via the CIF Both Master Data and Transactional data can be sent via the CIF interfaceinterface
Master Data could include:Master Data could include:
New Vendors, New Plants, New Customers (if used), New New Vendors, New Plants, New Customers (if used), New ProductsProducts
The Object that is setup for this communication between APO and The Object that is setup for this communication between APO and R/3 is called an R/3 is called an Integration ModelIntegration Model
Integration
Integration
Not all materials may be needed or wanted to come over the Not all materials may be needed or wanted to come over the Integration Model via the CIF interface into APO. Integration Model via the CIF interface into APO.
A filter is required to identify only those products and subsequent A filter is required to identify only those products and subsequent transactions that are desired to come into APOtransactions that are desired to come into APO
Integration
Main Filter Main Filter
MRP ControllerMRP Controller
OnOn
Material MasterMaterial Master
Integration
Integration Models are broken up into separate objects:Integration Models are broken up into separate objects:
• Locations (Plants and Vendors), Materials & TransactionsLocations (Plants and Vendors), Materials & Transactions
Why?Why?
• Locations MUST be transferred before materialsLocations MUST be transferred before materials• Materials MUST be transferred before transactionsMaterials MUST be transferred before transactions
• Transactions are transferred lastTransactions are transferred last
Model Maintenance/RegenerationModel Maintenance/Regeneration
• Locations tend to be one time transfer. Not regenerated on a periodic basisLocations tend to be one time transfer. Not regenerated on a periodic basis• Materials integration and Transaction modelsMaterials integration and Transaction models are regenerated on a weekly are regenerated on a weekly
basisbasis
Integration
Theoretically you could setup one Integration Theoretically you could setup one Integration model for all data between the two systems.model for all data between the two systems.
But….But….
APO R/3
CIF
Integration
Data that is sent over to APO is stored in two places:Data that is sent over to APO is stored in two places:
Tables – Static DataTables – Static Data
Live Cache – Transactional DataLive Cache – Transactional Data
This leads us into Supply Network Planning (SNP) in APO 3.0This leads us into Supply Network Planning (SNP) in APO 3.0
Supply Network Planning & Optimization
Supply Network Planning & Optimization
WebGUIs SAPGUIs
LiveCache
OptimizationTechniques
Planning ViewGenerator
AlertHandler
CoreInterface
Model &VersionMgmt
HeuristicTechniques
R/3
Supply Network Planning & Optimization
APO
Supply Network Planning & Optimization
Forecasts,Customers orders
Sourcing Production &Purchasing
Requirements,Inventory levels,
Inventory policies
APO
Liste
Constraint Definition Supplier capacities Production capacities Transportation capacities Storage capacities
Supply Chain Model
Supply Network Planning & Optimization
SNP integrates purchasing, manufacturing, distribution, SNP integrates purchasing, manufacturing, distribution, and transportationand transportation
SNP uses optimization and/ or Heuristic techniques, SNP uses optimization and/ or Heuristic techniques, based on constraints and penalties, to plan product flow based on constraints and penalties, to plan product flow along the supply chainalong the supply chain
Optimal purchasing, production, and distribution Optimal purchasing, production, and distribution decisions based on cost settingsdecisions based on cost settings
Supply Network Planning & Optimization
A simple Optimization exampleA simple Optimization example
Cost to store product (MTV)
$0.70
Cost to store product (DTV)
$0.50
Supply Network Planning & Optimization
A simple Optimization exampleA simple Optimization example
$0.70$0.70 $0.50$0.50
Inventory 1000 units –Sku AInventory 1000 units –Sku A
Demand 2000 units – Sku ADemand 2000 units – Sku A
Run Optimizer and…Run Optimizer and…
Supply Network Planning & Optimization
A simple Optimization exampleA simple Optimization example
$0.70 $0.50
Inventory 1000 unit –Sku A
Demand 2000 units – Sku A
Purchase Requisition (PR) created for entire 1000 units
PR 1000 units
Supply Network Planning & Optimization
Reverse these costs and…Reverse these costs and…
$0.50 $0.70
Inventory 1000 unit –Sku AInventory 1000 unit –Sku A
Demand 2000 units – Sku ADemand 2000 units – Sku A
Lower cost to store product than to ship it to Lower cost to store product than to ship it to DTV!DTV!
No PR generated!!No PR generated!!
PR 1000 units
Supply Network Planning & Optimization
Several costs can be added to the model to drive Several costs can be added to the model to drive desired behavior:desired behavior:
Storage cost (as before)Storage cost (as before)
Production costProduction cost
Delay cost for sales ordersDelay cost for sales orders
Delay cost for forecastsDelay cost for forecasts
Transportation costTransportation cost
Safety stock costSafety stock cost
No delivery costNo delivery cost
The Window to the planning results of an Optimization run is the:The Window to the planning results of an Optimization run is the:Supply Network Planning BookSupply Network Planning Book
These costs These costs are relative are relative in that they in that they are not the are not the true costs true costs used in the used in the supply chain.supply chain.
Planning Results
Planning Results
Planning Results
The Main objects used in reviewing Planning results are:The Main objects used in reviewing Planning results are:
Supply Network Planning BookSupply Network Planning Book
Optimizer LogOptimizer Log
Alert MonitorAlert Monitor
Planning Results
Planning Results
The Optimizer log provides feedback and details on a The Optimizer log provides feedback and details on a particular Optimization run.particular Optimization run.
The messages are divided into three status groups:The messages are divided into three status groups:
Green – No issues Green – No issues
Yellow – Warning may or may not require actionYellow – Warning may or may not require action
Red – Failure. Issue must be correctedRed – Failure. Issue must be corrected
Master data
Planning Results
Alerts show areas in the supply network that may need attention. Alerts show areas in the supply network that may need attention. Some Alerts are:Some Alerts are:
Target Stock Level ExceededTarget Stock Level Exceeded
Shortfall of Target StockShortfall of Target Stock
BacklogBacklog
Alerts can be custom designed to meet a particular needAlerts can be custom designed to meet a particular need
Planning Results
Masterdata
Planning Results
Planning Results
Once Planning results are complete then next steps can Once Planning results are complete then next steps can occur:occur:
Purchase Order CreationPurchase Order Creation
Build PlansBuild Plans
Planning Results
Purchase ordersPurchase orders
Created in R/3Created in R/3
Can be created automatically from Purchase Requisition Can be created automatically from Purchase Requisition sent over Integration Model into “Create Purchase Order” sent over Integration Model into “Create Purchase Order” function in R/3 (ME21)function in R/3 (ME21)
Purchase Requisitions can be extracted from R/3 to feed Purchase Requisitions can be extracted from R/3 to feed other Purchase order creation processesother Purchase order creation processes
Build PlansBuild Plans
Sent to Vendors to determine short, medium and long Sent to Vendors to determine short, medium and long term schedule term schedule
Derived from Purchase Requisition dataDerived from Purchase Requisition data
Master Data
Master Data
Master Data
In order for these processes to work properly Master Data In order for these processes to work properly Master Data must be maintained properly to get reliable and accurate must be maintained properly to get reliable and accurate results.results.
In short…APO is Master Data Intensive!In short…APO is Master Data Intensive!
Master Data
A list of Master Data elements:A list of Master Data elements:
LocationsLocations
Materials (Product Master)Materials (Product Master)
Transportation LanesTransportation Lanes
Transportation Methods Transportation Methods
Production Process Models (PPM)Production Process Models (PPM)
All relevant costsAll relevant costs
Resources (if needed)Resources (if needed)
Optimizer profilesOptimizer profiles
Supply and Demand profilesSupply and Demand profiles
Etc…Etc…
Master Data
If there are only a few materials then Master Data If there are only a few materials then Master Data maintenance can be done manually in APO.maintenance can be done manually in APO.
If materials are prolific then a systematic and reliable If materials are prolific then a systematic and reliable method of maintaining Master Data should be developed.method of maintaining Master Data should be developed.
We built…We built…
A Web interface to load critical repetitive data elements A Web interface to load critical repetitive data elements while providing an easy method of performing these taskswhile providing an easy method of performing these tasks
Master Data
What have we done
SAP R/3 4.5 WorldwideSAP R/3 4.5 Worldwide
FI,MM,SD,HRFI,MM,SD,HR
APO 3.0 WorldwideAPO 3.0 Worldwide
Supply Network Planning (SNP)Supply Network Planning (SNP)
Demand Planning (DP)Demand Planning (DP)
Transport Load Builder (TLB)Transport Load Builder (TLB)
Where We Are At
Adding Xbox component planning to APOAdding Xbox component planning to APO
Scenario planning in APO to determine the optimal time to Scenario planning in APO to determine the optimal time to phase out and phase in components phase out and phase in components
Adding Product Costing module to R/3 Adding Product Costing module to R/3
Adding Supply Chain Event Manager (SCEM)Adding Supply Chain Event Manager (SCEM)
Where We Are Going
WW SAP R/3 Upgrade to 4.7 WW SAP R/3 Upgrade to 4.7 - - August 2003August 2003
Capable to Match (CTM) in APO 3.0 - August 2003Capable to Match (CTM) in APO 3.0 - August 2003
No plans to upgrade to APO 4.0 at this timeNo plans to upgrade to APO 4.0 at this time
No plans to move to 64-bit Windows Servers at this timeNo plans to move to 64-bit Windows Servers at this time
Questions
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Session Code: [4805]