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Master Data for SCM (1) Theories & Concepts PowerPoint Presentation
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Master Data for SCM (1) Theories & Concepts

Master Data for SCM (1) Theories & Concepts

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Master Data for SCM (1) Theories & Concepts

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  1. Master Data for SCM (1)Master Data in Demand Planning & Fulfillment Processes EGN 5346 Logistics Engineering(MSEM, Professional)Fall, 2013

  2. Master Data for SCM (1)Theories & Concepts

  3. Master Data for SCM (1)Master Data in Demand Planning

  4. Like in ERP, master data plays an important role in APO and control many processes. • Some master data objects in APO have analogies in ERP like product (Material in ERP), and most of these are transferred from ERP. Others have to be maintained in APO. • Most organisational entities from ERP are not needed for APO, which is only concerned with logistics and not accounting and costing; so organizational entities such as company codes, or cost centers have no significance in APO. Master Data Overview

  5. Most master data such as materials are transferred from the ERP to APO. • Locations is the main organisational entity in APO. In addition, different planners are created for each location and each of the following modules (DP, SNP, PP/DS, and TP/VS). • The planners are assigned to the material master (i.e., product in APO); thus they are not transferred from ERP. Master Data Overview

  6. Master Data Objects in SAP APO and SAP ERP (review)

  7. APO uses only one object for a location; it may have different location types. For example, 1001 – production plant, 1002 – distribution center. • APO uses only the location name as the key, not the location type. • Additional location information such as calendars, storage and handling resources and planning relevant categories (i.e., stock categories for SNP and receipt and issues for deployment) are defined in APO. • Make sure no code crashes due to plants, suppliers or customers with the same names. Location Types in SAP APO

  8. Location Types in SAP APO


  10. Time Horizons for DP and Sales in SCM (review)

  11. Level of Detail and Time Horizon of DP in APO Modules (review)

  12. DP and Sales Processes in APO Modules (review)

  13. DP Module in APO System Structure and Integration with ERP (review)

  14. Master Data for Demand Planning: • CVC, Product, Interchangeability group. • Note: CVC can be generated from historical data that is transferred from ERP. If no historical data is available, e.g. for new products, CVC can be maintained in APO as well. • Master data for Sales: • Location, Product, Rules, and Interchangeability group. Overview Master Data and Application in DP and Sales (review)

  15. Overview Master Data and Application in DP and Sales

  16. Process for Demand Planning

  17. The result of the demand planning process is the establishment of independent requirements which will trigger the planning activities ofdistribution, production and procurement planning. The sales forecast is consolidated and checked regarding plausibility, probably checked against a statistical forecast and corrected according to the experience of the planner before releasing it for the subsequent planning steps. The monitoring of the forecast accuracy and a feasibility check against the planning constraints (e.g. capacity) are further common process steps Demand Planning Process

  18. The most primitive questions in DP are: • on which levels (product, product group, …) to plan? • in which granularity of time (weeks, months) to plan? • which data is required? • In APO, planning levels are represented by characteristics (CVC), the granularity of timer corresponds to the time (i.e., time bucket), and the data (linked to “key figures” such as revenue and sold quantity). • Both characteristics and key figures are technically represented by “info objects”. Planning Levels and Consistent Planning

  19. Data Structure for Demand Planning

  20. Planning shall take place on the levels of sales organization, location, product and product group. Each product belongs to only one product group Key figures are sales forecast and demand plan. Planning Levels and Consistent Planning

  21. Planning on Aggregated Level

  22. Automatic Disaggregation

  23. Demand Planning Structure Overview

  24. The display of the data and the planning is performed in Planning book. • A planning book is always linked to a planning area which contains the key figures. For the defined characteristic value combinations (CVC) time series are created for each key figure of the planning area. • The time series contain the actual data, so that the planning book serves to display the time series of the planning area. The planning area itself is connected to a basic planning object structure, where the relevant characteristics are defined. • Historical data is stored in an info cube (which contains both characteristics and key figures). Demand Planning Structure Overview

  25. Planning Object Structure and Planning Area /SAPAPO/MSDP_ADMIN

  26. It is recommended that not to change planning object structure and planning area after initialization. Planning Object Structure and Planning Area

  27. In DP there are two kinds of time bucket profiles: • the storage bucket profile and • the planning bucket profile. • The data of planning area is always stored in the storage bucket profile, while the planning bucket profile is used to display the data in the planning book. • In the planning bucket profile only those period types (month, week, …) can be used that are also defined in the storage bucket profile. • If the time buckets do not match as with months and weeks, the periods are divided as shown below, in Figure 4.7. Time Buckets

  28. Data Storage Bucket Profiles

  29. Active Characteristic Value Combinations (CVC)

  30. Entities for Life Cycle Modelling

  31. Settings for Life Cycle Planning Example

  32. Promotion

  33. CVC for the Use of DP-BOMs

  34. Release of the Demand Plan

  35. Process for Forecast after Constraints

  36. Structure of the Transfer to SAP ERP

  37. Master Data for SCM (1)Master Data in Sales Process

  38. Process for Order Fulfillment

  39. Order fulfillment contains the processes related to the customer from order taking, availability check and confirmation to the shipment to the customer. The sales order entry is performed in ERP either manually or via EDI, but ATP check is carried out in APO during the sales order entry. The transportation planning is performed in APO based on the deliveries and sends shipments back to ERP. There is an alternative way to perform transaction planning first based on sales orders and trigger the delivery creation from APO, but this has disadvantages in the flexibility if ATO check turns out to be unsuccessful. Order Fulfillment Overview

  40. Order Life Cycle

  41. Tasks during Sales Order Entry

  42. Business Events

  43. Default Assignment of Strategy to Requirement Class

  44. Location Substitution with /Without Stock Requisition

  45. Transaction for Condition Technique

  46. Master Data for SCM (1)Master Data in Demand Planning & Fulfillment Processes SAP Implementation

  47. Master Data, Model, and Version

  48. SAP ERP Transactions for Independent Demand Configuration

  49. Strategy Overview

  50. Requirement Type