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SAP CVN Supply Network Planning - Supply Planning Engine Selection
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SAP CVN Supply Network Planning - Supply Planning Engine Selection

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866.P4D.INFO | Plan4Demand.com | Info@plan4demand.com

866.P4D.INFO | Plan4Demand.com | Info@plan4demand.com
SAP CVN Supply Chain Management Summit Chicago 6-19-12

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    SAP CVN Supply Network Planning - Supply Planning Engine Selection SAP CVN Supply Network Planning - Supply Planning Engine Selection Presentation Transcript

    • © Plan4Demand Solutions, Inc. 2012 SAP CVN SUPPLY CHAIN MANAGEMENT SUMMIT APO Supply Network Planning Session June 19th, 2012 Welcome!
    • © Plan4Demand Solutions, Inc. 2012 2  Introduction to Plan4Demand  Supply Planning Business Challenges  Tools & Accelerators for Optimization  Q&A
    • © Plan4Demand Solutions, Inc. 2012 3Supply Chain Planning Consulting Firm specializing in:• Sales and Operations Planning(S&OP)•Demand Sensing/Planning/Forecasting•Supply Replenishment Planning•Enterprise Inventory Optimization•Production Planning/Finite Scheduling•Supply Chain Response Management•Change Management/ End User Adoption &SustainabilityServices:•SAP SCM Optimization to Maximize Benefit of Investment•Package Fit Validation/Selection Services•Operational Strategy and Road Mapping•Business Case Development and Prioritization•Assessments/Blueprinting•Process and Technology Implementation•Customized End User Training and Education Selected as “Pros-to-Know” for the past 4 years in a rowWhy Partner with Plan4Demand? Named to Supply & Demand Chain Executive’s Top 100 List•Experts in Supply Chain Process SAP and Technology•Strong References We Celebrate•Deep Resources: Minimum 10+ years Supply Chain Process and Technology Experience Business Results•Business Case Development to Support Investment in SAP 3•Rapid, High Value Optimization Techniques Not “Go-lives”•Proven Change Management for User Community
    • © Plan4Demand Solutions, Inc. 2012 4  Positioning for Success  Supply Planning Engine Selection  The Black Box Challenge: SNP results & Master Data
    • © Plan4Demand Solutions, Inc. 2012 5 Road Map to Optimization Business Master Data Solver Process Plan for Robust Standalone Reporting & Road Map Governance Strategy Selection Transform Role Technical Training Alerts to SNP in Place Operational Made ation Changes Environment Environment Strategy Decisions Change Management Many Places to Stumble – All Connected – Neglect 1 & Progress Slows
    • © Plan4Demand Solutions, Inc. 2012 6 Enterprise Program Office Process Owners Users Users Users User conference and (Any knowledge sharing (ECC) (SCM) application) Help Desk Continuous Education Logistics DP/ SNP BI - report BPC Other Software configuration and support Management Control and Production Change Integration Management (functional and technical) Custom Application
    • © Plan4Demand Solutions, Inc. 2012 PEOPLE PROCESS TECHNOLOGY  Managing Change  Adult Learning Theory – Adults must learn specifically through repetition in tasks  Make content specific to the audiences role and responsibility in the process and how it fits in into the company strategy  User adoption and active participation can drive significant bottom line results – studies have shown a bottom line increase on average of 19%
    • © Plan4Demand Solutions, Inc. 2012 8  Positioning for Success  Supply Planning Engine Selection  The Black Box Challenge: SNP results & Master Data
    • © Plan4Demand Solutions, Inc. 2012 9 User Input 9 Simulation Optimizer Output Lot size, rounding value Process Logic Multidimensional binary Total Cost Unit Storage cost or golden section search Material flow Optimal Storage Run conditions Internal Space or Change in Storage Capacities Capabilities Return product Number of time periods location Logic Disposable parts Number of compatibles External Storage used Test for improvements Repairable parts Number of components when necessary & cost New parts efficient Results used as Starting Finished parts External/Internal or conditions in next iteration Remanufactured product both Calculation of total cost Cost breakdown Demand rates & performance Repeated iterative Internal Storage cost Yield measures process until improvement Reconfigured cost External Storage cost Control We Can Fine Tune Space Optimization
    • © Plan4Demand Solutions, Inc. 2012 10  Heuristic (unconstrained)  Capacity leveling (Constraint)  Capable to Match (CTM) Constraint)  Optimizer (Constraint)
    • © Plan4Demand Solutions, Inc. 2012 11  Heuristics Plans with a Macro approach stepping through the Network  Groups all demands for a given product at a location into one demand bucket  Processes each planning location sequentially to determine sourcing requirements End user Effort  Infinite capacity or the medium to High Medium Low long-term horizon High Set up Effort Medium X Low
    • © Plan4Demand Solutions, Inc. 2012 12  Capable to Match (CTM) Matches demand to available supply via production capacity and transportation capability checks  Executes a multi-level, finite planning of the demands in your supply chain using prioritization  Considers constraints on production capacities, transportation capacities, storage capacities  Takes into account alternative production locations and sources of supply (locations, production End user Effort process models, and external High Medium Low Set up Effort High procurement relationships) Medium X Low
    • © Plan4Demand Solutions, Inc. 2012 13  Optimizer Plans at the lowest level of detail  Optimizer offers cost-based planning  Searches through ALL feasible plans in an attempt to find the most total cost-effective solution  Many different methods of optimization o Linear o Discrete o Aggregated Plan – Vertical / Horizontal End user Effort High Medium Low o Prioritization High X o Incremental Setup / Data Effort Medium o Decomposition Low
    • © Plan4Demand Solutions, Inc. 2012 14 Sprint Run Solver Capabilities Optimizer • Best in Class Jog Capable to Match • High customization • Feasible solution • Short Product Lifecycles / Shelf life • Matches demand to Heuristics supply via production • Thin Margins and transportation • High demand volatility • Un-constrained capability • MRP Like • Capacity leveling
    • © Plan4Demand Solutions, Inc. 2012 15 Industry Champions • Hi-Tech • CPG Industry Champions • Process Industry • Aerospace
    • © Plan4Demand Solutions, Inc. 2012 16 Strengths Considerations  Optimizer:  Optimizer:  Fully Mathematical Model based on LP  Very time consuming and CPU intensive techniques using cost and time variables for Production, Storage, Transportation and  Analyzing of results is tedious Procurement  Extremely useful for bottle neck optimization  CTM:  CTM:  Sequential approach to allocation  Excellent solver resource constrained and prioritization  Variant configuration products have challenges  Heuristic:  Heuristic:  Excellent solver for entire network (i.e. MRP like) unconstrained modeling  Less precision  Exceptionally constructive for new  Calculates discrete node and requires Multi implementation to optimize entire network step planning process  Need to do subsequent resource leveling using constraint modeling
    • © Plan4Demand Solutions, Inc. 2012 17  Positioning for Success  Supply Planning Engine Selection  The Black Box Challenge: SNP results & Master Data
    • © Plan4Demand Solutions, Inc. 2012 18 The Problem - Your business migrated from a legacy system to a SNP solution and data settings appear not to be aligned  Inventories are not in line with targets  CTM solver works well with alternative products, however it is not considering alternate locations  Resource Balancing is not being leveraged
    • © Plan4Demand Solutions, Inc. 2012 19 Locations Products (Planning Data) T-Lanes Production Data Structures (PDS) Quota Arrang. Resources (Capacities) Forecast Sales Orders Inventory Process Orders Stock Transfer Ord. Purchase Orders
    • © Plan4Demand Solutions, Inc. 2012 20 Global Product Planning Data Product: 200000003885 CKY CLSSC CKN NDL-EZO 18.60 oz 12 CA Shelf life: 730 Days Min Rem.Shelf life: 90 Days Transactional Data Master Data Plant Prod. Planning Data On Hand Process Stck Trnfr. Canada Safety Stock Rounding Min. Lot Inventory Orders Orders Value Size Canada 0 0 Canada 14 D 0 Mexico 0 60 Mexico 7D 20 40 US 0 20 US 7D 20 60 DP Forecast US W1 W2 W3 W4 W5 W6 W7 W8 W9 W10 Canada 8 9 10 12 11 10 11 9 12 11 Mexico 1 2 4 120 110 100 110 90 120 110 US 10 4 30 36 33 30 33 27 36 33 Mexico SNP Plan W1 W2 W3 W4 W5 W6 W7 W8 W9 W10 Canada 8 9 10 12 11 10 11 9 12 11 Mexico 40 40 80 240 110 100 110 90 120 110 US 60 60 120 720 33 30 33 27 36 33
    • © Plan4Demand Solutions, Inc. 2012 21 T-Lane Minimum Lot size  Works as a validity field for requirements greater than or equal to Product Master Minimum Lot Size  SNP Heuristics internally will create planned orders, applying Product Master Min.Lot Size (MLS) and Rounding Value (RV).  Looks for valid T-Lane Sourcing and try to create Stock.Transf. Requisitions and checks T-lane Min LotSize  Examples:  T-Lane Min Lot Size = 300, Product Master: MLS = 100, RV = 50 W2 W3 W4 W5 W6 W7 W8 W9 This line represents an Demand 50 50 150 50 100 50 170 80 150 internal Plan.Order (internal) 100 0 150 100 100 0 200 100 100 Calculation, Plnd.Orders will Stck.Tranf.Req 0 0 0 350 0 0 300 0 0 never get created Projected Stock -50 -100 -250 50 -50 -100 30 -50 -200 for this. 350 0,0
    • © Plan4Demand Solutions, Inc. 2012 22 For More Information… www.Plan4Demand.com Contact Join our Supply Planning  Lisa Kustra, CEO Leadership Exchange lisa.kustra@plan4demand.com on LinkedIn O: 412.733.5050 to continue the discussion and for more C: 412.996.7090 learning opportunities!  Jaime Reints jaime.reints@plan4demand.com O: 412.733.5011