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Advanced Planning And Optimization


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Enterprise Resource Planning

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Advanced Planning And Optimization

  1. 1. Master in Computer Application Presentation On “Advanced Planning And Optimization” Presented by Hitesh Kumar Markam(38)
  2. 2. Introduction • Advanced Planning and Optimization(APO) module of SAP. is one of the most important • SAP Advanced Planning and Optimization (SAP APO) offers a fully integrated pallet of functions that you use to plan and execute your supply chain processes. SAP APO supports the following: • Business collaboration on a strategic, tactical, and operational planning level. • Co-operation between partners at all stages of the supply chain process; from order receipt, stock monitoring, through final shipping of the product. • Cultivation of customer and business partner relationships. • Constant optimization and evaluation of the supply chain network’s efficiency.
  3. 3. Modules Of APO The sub modules of Advanced Planning and Optimization are: • Demand Planning. • Supply Network Planning / CIF. • Production Planning / Detailed Scheduling. • Global Available to promise / Deployment. • Transportation Management.
  4. 4. Demand Planning • This is a subset of Demand Management. • It is a business planning process that enables sales teams(and customers) to develop demand forecasts and inputs to feed various planning processes, production, inventory planning, procurement planning and revenue planning. • Based on estimated product demand, a firm can plan for deployment of its resources to meet this demand . • It is a bottom-up process as different from any top-down management process . • It is also seen as a multistep operational SCM process to create reliable demand forecasts. • Effective demand planning helps to improve accuracy of revenue forecasts, align inventory levels in line with demand changes and enhance product-wise/channel-wise profitability. • Its purpose can be seen as to drive the supply chain to meet customer demands thro effective management of company resources.
  5. 5. Product Planning/Detailed Scheduling The Production Planning and Detailed Scheduling (PP/DS) component: • • • To create procurement proposals for in-house production or external procurement to cover product requirements. To optimize and plan the resource schedule and the order dates/times in detail. You can take the resource and component availability into account here. Above all, PP/DS is used to plan critical products, such as products with long replenishment lead times or products that are produced on bottleneck resources. You can use PP/DS to create executable production plans . • Reduce lead times • Increase on-time delivery performance • Increase the throughput of products and reduce the stock costs, through better coordination of resources, production, and procurement
  6. 6. Supply Network Planning(CIF) • Overview of supply planning concept. • Supply planning, interactive supply planning, integration with other SCM components. • Planning methods : Heuristics, optimization and CTM. • Deployment. • Transport load builder. • Releasing supply plans to DP, PPDS. • CIF core interface : Introduction to Architecture of integration. • Monitoring and handling CIF errors. • Comparison and reconciliation. • Initial and change transfers, background jobs.
  7. 7. Global Available To Promise • Overview of availability management in ECC-APO. • Global ATP is a type of availability check. • Global ATP is a business function that provides a response to customer order inquiries, base on resource availability. • Execution of an ATP run generates available quantities of the requested product and delivery due dates. • This helps companies support order promising and fulfillment, aiming to manage demand and match it to production and procurement plans while maximizing on customer service.
  8. 8. Transportation Management o Purpose • Moving goods from one plant to another • Transportation planing o Benefits • Transportation execution monitoring o Key Process Steps • Create Stock Transfer Order • Creating an Outbound Delivery for Purchase Orders • Checking the Generated Outbound Delivery • Generating a Shipment Document • Creating a New Transfer Order Order with the Same Plant • Creating an Outbound Delivery for the New Stock Transfer Order • Adding a New Delivery to the Existing Shipment • Maintaining Delivery Picking and Posting Goods Issue • Goods Receipt with reference to Purchase Order