SCM Master Data - 2 Master Data for Distribution - PowerPoint PPT Presentation

Loading...

PPT – SCM Master Data - 2 Master Data for Distribution PowerPoint presentation | free to download - id: 5045b8-ZGZiN



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

SCM Master Data - 2 Master Data for Distribution

Description:

Master Data and Application in Distribution Planning and PP ... as companies reduce inventory by changing their logistics processes to global inventory management, ... – PowerPoint PPT presentation

Number of Views:143
Avg rating:3.0/5.0
Slides: 52
Provided by: Autho220
Learn more at: http://web.eng.fiu.edu
Category:

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: SCM Master Data - 2 Master Data for Distribution


1
SCM Master Data - 2Master Data for
Distribution Production Processes EGN 5623
Enterprise Systems OptimizationFall, 2013
2
SCM Master Data - 2Theories
Concepts EGN 5623 Enterprise Systems
OptimizationFall, 2013
3
Distribution Planning in SCM (review)
THEORY AND PRACTICE OF ADVANCED PLANNER AND
OPTIMIZER IN SUPPLY CHAIN DOMAIN by Sam Bansal
4
Time Horizons for Distribution and Production
Planning in SCM (review)
5
Level of Detail and Time Horizon of Distribution
and PP in APO Modules (review)
6
Distribution Planning and Production Planning
Processes in APO Modules (review)
7
Distribution and PP Modules in APO System
Structure and Integration with ERP (review)
8
Master Data and Application in (DP) distribution
planning and PP (review)
9
Master Data and Application in Distribution
Planning and PP (overview)
  • Master Data for Distribution Planning
  • Location, Product, Resource, Transportation lane,
    Quota arrangement, and Interchangeability group.
  • Master data for Production Planning
  • Location, Product, Resource, PPM/PDS , Quota
    arrangement, Set up Group matrix, and
    Interchangeability group.

10
Master Data and Application in Distribution
Planning and PP (Overview)
  • Transportation lanes
  • Transportation lanes are required from plant and
    distribution center to the transportation zone
    and have to be created manually.
  • The allowed carriers have to be assigned per
    means of transport and transportation lane
    explicitly.
  • Quota arrangement (vendorss quota)
  • Quota arrangement must be used, if it is intended
    to source from multiple locations on a regular
    basis.
  • The concerned products are assigned to the quota
    arrangement, and the ratio of the resources is
    defined per product.

11
SCM Master Data - 2Master Data for
Distribution Planning EGN 5623 Enterprise
Systems OptimizationFall, 2013
12
Distribution (and Supply Chain) Planning
  • Distribution planning between the manufacturing
    plants and warehouses is important, as companies
    reduce inventory by changing their logistics
    processes to global inventory management, from
    non-coordinated local inventory management.
  • Distribution (and supply chain) planning focuses
    on make-to-stock production.

13
Distribution ( Supply Chain) Planning, and
Replenishment
14
Process Chain for Distribution and Supply Chain
Planning
15
Distribution and Supply Chain Planning
  • Distribution planning is performed based on
    demand and stock information with the result of
    planned stock transfers.
  • The most important issues are usually the netting
    of the local stocks, safety stock levels,
    sourcing options, transportation times and lot
    sizes for the planned stock transfers.
  • If required, restrictions are considered
    regarding storage capacity and handling capacity
    for goods issue and goods receipt.

16
Distribution and Supply Chain Planning
  • Replenishment involves two processes
  • Deployment, and
  • Deployment is concerned with the fair share of
    quantities to the requesting parties in case of
    shortage or surplus. The constraints are
    available quantities.
  • Transport load building.
  • Transport load building is one step closer to
    execution and focuses on the creation of truck
    loads, where the task is to adjust the planned
    stock transports to the available
    trucks/transport means and take their capacity
    restrictions into account.

17
Distribution and Supply Chain Planning
  • SAP APO supports distribution and production
    planning, with the following 4 applications
  • For distribution
  • SNP heuristic
  • PP/DS heuristics
  • For SCP
  • SNP optimizer
  • CTM (with SNP or PP/DS master data)

18
Applications for Distribution and Supply Chain
Planning
19
Features of the Application for Distribution
20
Distribution and Supply Chain Planning
  • Distribution planning with SNP heuristic is often
    used in the environments where multiple sourcing
    is not an issue and production is usually able to
    meet the demands, so that the main task for SNP
    heuristic is to calculate the demands for
    production planning based on local inventories,
    transportation times, safety stocks and lot
    sizes.
  • SNP optimization allows a complete consideration
    of the supply chain determinants (i.e., sources
    and cost, production capacity, transport, storage
    and handling). The aim of SNP optimizer is to
    find a global optimum for supply chain based on
    cost and penalty cost.
  • CTM pursues a priority based simple rules such as
    FIFS.

21
Order Cycle for Stock Transfer
22
Order Cycle for Stock Transfers
The stock transfer order has two aspects as a
demand in the source location and as a supply in
the target location. The documents differ in SAP
ERP and SAP APO. The creation of the planned
stock transfer, deployment and transport load
building (TLB) is performed in SAP APO. The
execution part from the creation of the outbound
delivery in the source location until the goods
receipt in the target location is performed in
SAP ERP, and the information is displayed in SAP
APO.
23
Order Cycle for Stock Transfers
  • Three order types in SAP APO
  • Planned stock transfer,
  • Deployment confirmed stock transfer and
  • TLB-confirmed stock transfer
  • They are matched to
  • the stock transfer requisition and
  • the stock transfer order in SAP ERP, according to
    the setting for SNP transfer.

24
Order Flow for Stock Transfer on SAP ERP side
25
Stock Transfer Order
Stock transfer order is first scheduled in SAP
APO, then transferred to SAP ERP and scheduled
again in SAP ERP according to the delivery date.
The scheduled dates in SAP ERP are not
transferred back to SAP APO. Stock transfers
are executed according to the order dates in SAP
ERP, therefore it is important to keep the
scheduling in SAP APO and SAP ERP consistent.
The transport duration in SAP APO is calculated
using the entry from the transportation lane,
whereas SAP ERP uses the planned delivery time of
the material master of the target location.
26
Stock Transfer Scheduling
for transportation
for transportation
27
Setting for Stock Transfer within and across
Company Codes in SAP ERP
Since SAP APO does not know any company codes,
there is no difference in SAP APO whether stock
transfers are planned within one company code or
across company codes. On SAP ERP side,
cross-company stock transfers require the
additional settings. The assignment of the sales
area and the customer to the plant is made with
maintenance view V_001W_IV.
28
Setting for Stock Transfer within and across
Company Codes in SAP ERP
29
Setting for Stock Transfer Across Systems
Stock transfer across two SAP ERP systems is
modelled by a purchase order in the target plant
and a sales order in the source plant.
30
Setting for Stock Transfer Across Systems
31
SCM Master Data - 2Master Data for Production
Planning Process EGN 5623 Enterprise Systems
OptimizationFall, 2013
32
Production Master Data Overview
  • The relevant master data for production planning
  • Location
  • Product
  • Resources
  • PPM and PDS
  • Quota arrangement,
  • Set up Group matrix, and
  • Interchangeability group.
  • Note on resources
  • SNP and PP/DS have a different view of the
    capacity.
  • SNP in buckets
  • PP/DS time-continuous capacity

33
Resources for SNP
The idea of SNP is to perform an aggregated
planning. Since SNP is an application for
bucket-oriented planning, the resources for SNP
offer a certain capacity per time bucket
usually per day. The bucket resources provide the
capacity e.g. the amount of working hours per
day of the resource which is used for the
capacity consumption of the orders. For the
scheduling of the production orders, the factory
calendar is assigned to the resources. The
standard capacity is defined in the resource
master. Figure 13.13 shows these setting for the
bucket resource. Another way to define the
capacity is the use of a reference resource to
save time.
34
Resources for PP/DS
In PP/DS, scheduling and capacity consumption are
not separate steps, but the capacity is consumed
by the scheduled operation. The basic resource
property in PP/DS is the working time, which
depends on the standard working hours, the break
time, and factory calendar. Usually the
available working time is modelled per shift, and
the shifts are assigned to a shift sequence to
model circumstances.
35
Production Master Data Overview
PPM The Production Process Model (PPM) defines
the detailed information required for
manufacturing a product. The PPM combines routing
and the bill of materials (BOM) into one master
data object. Each PPM includes one or more
operations. Each operation, in turn, includes one
or more activities, for which materials,
relationships and resources are maintained. The
activities and resources defined in the PPM are
assigned to costs that are used by the SNP
Optimizer and for finite scheduling by Production
Planning and Detailed Scheduling (PP/DS).
36
Production Master Data Overview
Supply Network Planning (SNP) is a long term,
rough cut planning tool. SNP requires a PPM with
less information than the one used for production
planning and detailed scheduling
(PP/DS).   During a planning run, SNP can
schedule resources down to the day. In order to
perform scheduling at the day level, the PPMs and
resources must be simplified. Additionally, when
using optimization technologies, it is important
to limit the number of inputs (materials) to find
a proper solution in a reasonable runtime.   SAP
SCM allows you to generate SNP production process
models (PPMs) based on existing PP/DS PPMs.
Restriction to a specific lot size is required to
determine the exact production consumption or
mode duration.
37
Production Master Data Overview
PDS (production data structure) SAP initially
developed the Production Process Model (PPM) to
model manufacturing master data. It was replaced
in SCM 4.1 by PDS. However PPMs are still
supported. In some industries modeling the
production and evolution of a certain product can
be very complicated. When a product has many
variations due to customers choosing a
combination of features and options they
typically used the variant configuration solution
in standard SAP ERP.
38
Production Master Data Overview
The main motivation to develop the PDS was to
have an integration of the Engineering Change
Management (ECM) and the Variant Configuration
between SAP ERP and APO. From SCM 4.1 on, the
Production Data Structure (PDS) is the key master
data for all kinds of production planning related
processes. The PDS is supported by the
applications of PP/DS, SNP, CTM and DP. Like the
PPM, the PDS corresponds to the production
version on SAP ERP system. Though both PPM and
PDS are still available as alternatives, there is
no further development for the PPM since SCM
4.0.
39
Structure of PDS and PPM
40
Production Process Overview
  • Objectives for Production Planning
  • to meet the demand
  • to consider the resource capacities and the
    material availabilities
  • to improve utilisation of the resources
  • to low set up time
  • to minimise the stock, and
  • to minimise the work in process (WIP)
  • to improve stability of the plan

41
Production Process Overview
  • The complexity of production planning increases
    with the number of BOM-levels, number of
    operations, and finite resources, the use of
    fixed, or minimized lot sizes and sequence
    dependent set-up.
  • Though APS (Advanced planning and Scheduling)
    systems allow theoretically a one-step approach,
    experience shows it is better and more reliable
    to use a two step approach to create a feasible
    plan (i.e. infinite production planning first and
    finite scheduling on the key resources later),
    and keep the constraints as less as possible in
    modeling and.

42
Order Cycle for Production
43
Order Cycle for Production
  • The result of production planning are planned
    orders which contain the information about the
    dependent demand and the capacity requirement in
    SAP APO.
  • The production orders are reduced by the order
    confirmation and remain in SAP APO until it is
    technically completed.

44
Production Planning Applications
SAP APO offers different applications for
production planning and detailed scheduling.
Production planning is supported by the SNP and
PP/DS modules with two different levels of
details. - rough-cut and bucket-oriented
planning (SNP), and - time-continuous planning
(PP/DS). Detailed scheduling with the purpose of
creating a sequence for order execution is only
supported by PP/DS since SNP is limited to
bucket-oriented planning and there is no sequence
within a bucket.
45
Applications for Production Planning and
Scheduling
46
Lot Size
Lot sizes have a significant impact on the
production planning result and challenges for
scheduling. The fixed, minimum and periodical lot
sizes in material master data increase the
complexity of the planning problem.
47
Lot Size Methods
48
Lot Size

Though CTM supports minimum and fixed lot sizes,
but CTM performs a finite planning and does not
split orders across buckets which might lead to a
very low utilisation.
49
SCM Master Data - 2 Master Data for
Distribution Production Processes SAP
Implementation EGN 5623 Enterprise Systems
OptimizationFall, 2013
50
Order Cycle for Stock Transfers
The outbound delivery for the stock transfer
order is created with transaction VL10B in SAP
ERP, picking and posting of goods issue is done
with the transaction VL02N in the delivery.
Using the message type LAVA, the inbound
delivery in source location can be triggered with
posting of the goods issue (or manually with the
transaction VL31N). For the use of deliveries
it is necessary that a vendor is assigned to the
source location and that an info record exists in
SAP ERP. The inbound delivery is transferred to
SAP APO as a purchase order memo of the stock
transit.
51
Exercises (Due date 9/17/2013)
  • Create integration model for plants in SAP ERP
    system and verify them in SCM system
  • 2. Create integration model for DCs in SAP ERP
    system and verify them in SCM system
  • 3. Create integration model for vendors in SAP
    ERP system and verify them in SCM system
  • 4. Create integration model for customers in SAP
    ERP system and verify them in SCM system
  • 5. Create integration model materials at plants
    in SAP ERP system and verify them in SCM system
  • 6. Create integration model materials at DCs in
    SAP ERP system and verify them in SCM system
  • 7. Create integration model work centers in SAP
    ERP system and verify them in SCM system
  • 8. Create integration model purchasing info
    records in SAP ERP system and verify them in SCM
    system
About PowerShow.com