Core System Design

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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

3
Agenda
Course introduction SNP concepts Forecast
release Network planning (DRP) Medium Long term
production planning (MPS) Deployment Purchase
finished products Intercompany Subcontracting Tool
s Alert monitor cockpit
4
How APO covers supply chain process
Supply Network Planning (SNP)
Material requirement planning (MRP-R/3)
Demand planning (DP)
1.1 LONG TERM DEMAND
2.1 INDUSTRIAL and LOGISTICS VISION and STRAGTEGY
2.2 MATERIAL CONTRACTS
Strategic 3 years horizon
1.2 MIDDLE-TERM DEMAND
2.3 DISTRIBUTION REQUIREMENT
2.4 MID-TERM MASTER PLANNING
2.5 MATERIAL REQUIREMENT PLANNING
Tactical 1 Year horizon
3.2 SCHEDULING
3.3 MATERIAL RELEASE AND USAGE
3.1 DISTRIBUTION REQUIREMENT PLANNING
1.3 SHORT-TERM DEMAND
Operational 3 weeks
3.4 DEPLOYMENT
Very short-term 3 days
Production planning Detailed scheduling (PPDS)
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SNP CONCEPTS
Course introduction SNP concepts Forecast
release Network planning (DRP) Medium Long term
production planning (MPS) Deployment Purchase
finished products Intercompany Subcontracting Tool
s Alert monitor cockpit
6
Supply Network locationsconcept
external supplier
production site
site with product tranformationcomponents in BOM
sourced from external suppliers
copacking site
site with product transformationcomponents in
BOM could be sourced in other internal sitef.e.
biscuits promo copacking sites
expedition centre
no product transformationno deliveries to the
final customerf.e. water seasonal storage
 greniers 
distribution centre
no product transformationdeliveries to the final
customer
external customer
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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

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FORECAST RELEASE in SNP
Course introduction SNP concepts Forecast
release Network planning (DRP) Medium Long term
production planning (MPS) Deployment Purchase
finished products Intercompany Subcontracting Tool
s Alert monitor cockpit
14
Supply Network Planning release of the demand
plan in SNP
The Supply Planning Flow The starting point of
Supply Planning is the expression of Demand In
our case, almost all demand is based on
Forecast Forecast quantities are transferred as
independent demand and are expressed at item
level in a specific location
SUPPLY NETWORK PLANNING
DEMAND PLANNING
Elaborate Demand Plan
Forecast Sales
Run Distribution Plan (long/medium term)
demand
PlanPromotionsProductintroduction /Life end
Run Production Plan (long/medium term)
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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
  w3) week (up to end m4) month (up to end
  m18)
• only for future (period split 1)

umbrella brand product brand
clientcountry
totalcountryDC
nationalforecastaccount
product variant (PV)
regionalforecast account
forecast unit (FU)
DC
article (SKU)
articlehierarchy
clienthierarchy
logistichierarchy
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Demand release in the network
production site
copacking site
expedition centre
distribution centre
independent demand (forecast) on DC
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Forecast consumption (1)
SUPPLY NETWORK PLANNING
DEMAND PLANNING
Elaborate Demand Plan
Forecast Sales
demand
PlanPromotionsProductintroduction /Life end
APO
shipments
orders

R/3
..
..
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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
• gt stock is reduced when goods issues is executed
• gt forecast is reduced at same moment by the
  shiped quantity
• remark also  production orders  influence
  stock on line
• gt stock is increased when goods are confirmed in
  production
• gt 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 introduction SNP concepts Forecast
release Network planning (DRP) Medium Long term
production planning (MPS) Deployment Purchase
finished products Intercompany Subcontracting Tool
s Alert monitor cockpit
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Master Data Transportation Lanes
factory 0007
DC 0012
DC 0010
TLB profile
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supply plan on a distribution center
production site
copacking site
Receipts requested( distribution receipts SNP)
expedition centre
stock
Demand - forecast- distribution demand-
dependent demand
Requested receipts
distribution centre
independent demand (forecast) on DC
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Network planningconcept
production site
copacking site
expedition centre
Requested receipts
distribution centre
stock
independent demand (forecast) on DC
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SNP networkexample
factory 0007
DC 0012
DC 0010
planning book article 795 on factory 0007
planning book article 795 on DC 0010
Product 795
safety stock in DC 10days
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Supply Planningmanaging projected stocks
Goods Receipt
Stockon-hand
time
Goods Demand
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Supply Planning processSNP heuristic (network
calculation)

• 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 time min/max
lot size rounding value safety stock
Stock
Max. level
Reorderpoint
Safetystock
Time
R
R
R
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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 introduction SNP concepts Forecast
release Network planning (DRP) Medium Long term
production planning (MPS) Deployment Purchase
finished products Intercompany Subcontracting Tool
s Alert monitor cockpit
31
supply plan on a plant
Planned orders
production site
stock
Demand - forecast- distribution demand-
dependent demand
copacking site
Receipts requested( distribution receipts SNP)
expedition centre
stock
Demand - forecast- distribution demand-
dependent demand
requested receipts
distribution centre
independent demand (forecast) on DC
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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

100(from DC1 for week 2 )
200(from DC2for week 2 )
production site
300 Planned order art. A for week 2
PPM
production line (resource)
load
300
art A
time
week 2
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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
capacity prod B 1000 PC 2 T capacity plan
order A 1000 PC 1T 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 PC 1 H resource
load
ZFACTORS transaction
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Resourcecapacity definition
Enter number of shifts

• 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

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Production process model
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 SKUs 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

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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 SKUs
• 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 SKUs 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

SKU2(line1, fam2)
SKU1(line1,fam 1)
SKU4(line2, fam2)
SKU3(line2, fam1)
Family 2choc
Family 1vanilla
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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

100(from DC1 for week 2 )
200(from DC2for week 2 )
production site
300 Planned order art. A for week 2
PPM
production line (resource)
load
300
art A
time
week 2
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MPS Planning Capacity evaluation
Resource x(production line)
Backward leveling
Over Capacity
Capacity load
Resource capacity
Resource load
Time
time bucket
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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 SKUs 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
4 stepproduction planning on production plants
3 stepaggregation of demand to production sites
3
2
2 stepproduction planning on dependent
copacking sites
1
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 gt make
  capacity modifications gt 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 w1 to PPDS (Wednesday morning)

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SNP lt-gt PPDS

• SNP long/medium term planning , PPDS short
  term planning
• SNP until end of M6 gt one order per
  week until end of M18 gt one order per month
• PPDS 16 days rolling for dairy gt correct
  start/end time end of next week for biscuits

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DEPLOYMENT
Course introduction SNP concepts Forecast
release Network planning (DRP) Medium Long term
production planning (MPS) Deployment Purchase
finished products Intercompany Subcontracting Tool
s Alert monitor cockpit
54
Deployment concept
production site
stock
Demand from plant A
Demand from DC1
copacking site
plant A
expedition centre
DC1
distribution centre
independent demand (forecast) on DC
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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
Demand from DC on factoryresult of SNP run
plan distrib. receipts
D1
D0
Available to deploy at D1
PLANORDERS
STOCKD0
PRODUCTIONORDERS
Deployment based on daily buckets !
Deployment calculation for D1based on
available to deploy quantity
D1 is depending on local situation
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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
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Fair share rules (2)
Total demand 100available 60 gt all DCs
receive 60 of their demand
DC 2demand 60
DC 1demand 40
- National level (between CBUs) - Between CBUs
clients (not in APO)
Fair share on two levels
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Fair share rules (3)
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Deployment process
Requirement plan calculated in network planning
Planned demand
Deployment run check demand vs availability apply
fair share
Confirmed demand
TLB runtransport truck building
TLB Confirmed demand
R/3 Execution
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Deployment run
independent demand (forecast) on DC
forecast
forecast
stock
factory
stock
confirmed distribution receipts (gt TLB)
distribution receipts (purchase requisition)
deployment run
Confirmed distribution demand (gt TLB)
Distribution demand
stock
stock
DC
Plan order
Production order
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Deployment in APO
64
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-gt0010 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
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.
Evaluation stock in DCcore_storage_ST
Evaluation stock in plantcore_depl_ST
66
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 scenarios
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,.)
67
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.
68
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
  productsunder 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 quarentaine
Available stock
Hard quarentaine
business
R/3
Available stock
Stock in quality inspection
Available stock
Stock in quality inspection (CF)
APO
different status from blocked stock (status
CI in APO)
69
Deployment process with quarantineavailable to
deploy stock
Demand from DC on factory
D1
D0

ATD total stock (in out Q)
stock in hard quarentine
Soft Q
In production
available
Soft Q
In production
available
stock in hard quarentine
Deployment based on daily buckets !
Deployment calculation for D1based on
available to deploy quantity
70
Deployment including quarentineexample (1)
71
Deployment including quarentineexample (2)

• HARD QUARENTAINE Deployment run will be
  launched at D0 800
• !! prerequisite quarantine is for all products
  fixed at 12h (no possibility to differentiate
  between products)gt consequence no product
  will leave factory before hard quarantine is
  cleared
• !! prerequisite production after 800 will stay
  in the factory until D1 2000
• gt consequence there could be 36 hours stock
  due to quarantine

• analysis of actual stock in DC
  (incl. soft quarantine) confirmed planned
  dist.reciepts
• analysis of forecast for D0 and D1

• calculation of overnight transferrequirements
  (APO Plan DistReciepts)
• analysis of total stock available for deployment
  (at 2000) in Benesov ( total
  physical stock at 800)

Deployment run at 800
If shortage appearsthen fair shareanalysis is
applied.
SNP demand run at 500
72
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 gt stock is staying max for one day in
  factory
• only possible if full push scenario is applicable

recommended scenarios
73
PURCHASEFINISHED PRODUCTS
Course introduction SNP concepts Forecast
release Network planning (DRP) Medium Long term
production planning (MPS) Deployment Purchase
finished products Intercompany Subcontracting Tool
s Alert monitor cockpit
74
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

Supplier 210004329
R/3 contract will create transportation lane
DC 0012
DC 0010
75
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
The Purchase requisitions have to be converted
into purchase orders in R3 with the transactions
ME58 and ME59
76
INTERCOMPANY
Course introduction SNP concepts Forecast
release Network planning (DRP) Medium Long term
production planning (MPS) Deployment Purchase
finished products Intercompany Subcontracting Tool
s Alert monitor cockpit
77
APO will become the leverage to optimise an
integrated European supply chain
APO biscuits, water or dairyenvironment
Manufacturer DC
Manufacturer Plant
Supplier Plant
Customer DC
All products, factories, warehouses,. will be in
one system ! APO ignores boundaries and companies
!
78
Intercompany process version 1 traditional
process managed by client
1. Forecast calculation 2. Requirement
calculation. including transportation
constraints
requirements
3. Production planning 4. Production execution.
5. Shortage management
7. Execution
6. Transportation
requirements
79
Intercompany process version 2 optimised
supply chain management VMI based
1. Forecast calculation 2. Requirement
calculation. including transportation
constraints
requirements
3. Production planning 4. Production execution 5.
Shortage management.
Shortage information
5. Transportation 6. Execution
Delivery confirmation
80
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 scenarios
• only client in APO
• scenario purchasing finished products process
• only supplier in APO
• client sends forecast to supplier, uploaded in
  suppliers 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

81
SUBCONTRACTING
Course introduction SNP concepts Forecast
release Network planning (DRP) Medium Long term
production planning (MPS) Deployment Purchase
finished products Intercompany Subcontracting Tool
s Alert monitor cockpit
82
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)

Purchase order

10 .....................
20 .....................
30 .....................
Production order
83
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.

1
3
Components transfer posting
2
Virtual plant
Finished product tranfer posting
5
Finished product tranfer
4
SNP
PP/DS
84
TOOLS
Course introduction SNP concepts Forecast
release Network planning (DRP) Medium Long term
production planning (MPS) Deployment Purchase
finished products Intercompany Subcontracting Tool
s Alert monitor cockpit
85
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

86
Alert monitorset user settings
87
Alerts in planning book
88
Alerts inAlert Monitor
89
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

90
Supply chain cockpit
91
Models and Planning versions
Master Data for
R/3
PP/DS
Master data in APO
Simulation
Simulation
model N
model 1
Active model 000
Resources
Resources
Locations
Resources
PPM
PPM
PPM
Products
Active
planning version
000
Planning version N
Planning version 1
Active
planning version
000
Planning version 1
Planning version N
version-dependent master
version-dependent master
version-dependent master
version-dependent master
version-dependent master
version-dependent master
data and transaction data
data and transaction data
data and transaction data
data and transaction data
data and transaction data
data and transaction data
92
Model/versions
Plants
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 model 000.Only one
version is LIVE in the systemAll other versions
are for simulation purposes
DCs
Resources
Products
PPMs
Model 1
Model 2
93
Planning book tricks tips

• display note display details
• drill down and dependent data
• header
• user settings
• hide
• decimals
• UOM
• user dependent selection list
• how to define selection profiles

See training document on navigation tools
94
Course conclusion
QUESTIONS?