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Overview of SAP APO
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SAP APO
OVERVIEW.
By Naveen T K Email: naveenkrishna_tarur
Goal of Presentation
Gain a fundamental understanding of • APO and R/3 Comparison.• APO components, Functionality,• Integration with OLTP environments.• Case Study – SAP APO Implementation at
M&M.
APO and R/3 Comparison• SCP • Data structure.• Planned Independent requirements generation from
DP.• Promotion planning• Life cycle planning• Various special forecasting models• Stock transport requisitions generation from Supply
network planning
APO and R/3 Comparison
Strategic Decisions
Tactical Decisions
Operational Decisions
Transactional Decisions
Supply Network designUnconstrained Demand Plan
Constrained Plans like MPS, DRP,
Production Plans Purchase requisitions
CRM..
BusinessInformation
Ware-house
Non R/3 systems
‘B2B’ElectronicCommerce
AdvancedPlanner &Optimizer
APO Within SAP SCOPE
AdvancedPlanner andOptimizer
to enable real timedecision support,advanced constraint based planning and optimization.
Core levelDb,
Interfaces etc
R/3
Advantages of APO
• Simultaneous material and capacity requirements planning.
• Collaborative planning via internet.
• Cross Plant optimisation of resource load.
• Transportation optimisation with route planning.
• Seamless integration with OLTP(R/3)
• Decision support with what if analysis
• Consider real world constraint while taking decisions.
• Optimize plans in concert with business goals.
Location Time Level of Detail
The Supply Chain Planning Problem
Market DataTier 1Supplier
Customer Demand
POS DataTier 2Supplier
Manufact.Plant
APO Product Map
APO ContentsComplete toolset needed to plan and optimize supply chain processes at the strategic, tactical and
operational planning levels.
APO has following components:
DP: Demand planning SNPD: Supply network planning Deployment PPDS: Production planning & Detailed scheduling GATP: Global available to promise. TPVS: Transport Planning and Vehicle scheduling
Besides these, following supply chain features are available: Supply network design Supply chain monitoring using supply chain cockpit Tight integration between APO and SAP R/3
APO Architecture
OLTP
R/3 R/3 LegacyOLTP
Non R\3OLTP
Non R\3OLTP
Application Link EnablingModel Generator, Mapping, Connectivity
BW
APOSolvers
APO
liveCache
DemandPlanning
Detailed Scheduling
ProductionPlanning
SupplyNetworkPlanning
AvailableTo
Promise
SC Cockpit
Supply Chain Cockpit Applications
Alert Handling
Navigation and Information Retrieval
Modeling
Alert Monitor Cockpit Engineer
Non-R/3 R/3
Continous Improvement Using Standardized Key Performance Indicatorss
SAP Business Information Warehouse
SAP Advanced Planner &Optimizer
R/3R/3 Non R/3
Execution ofdecisions
Simu- lation & Optimi- zation
Bench-mark
Key PerformanceIndicators
according to
APO Applications DP
DemandPlanning
Demand PlanningPlanner’s KnowledgeTask-specific planning toolsFlexible viewsGraphicsPromotional planningLife cycle managementCannibalizationAccuracy reporting
Statistical MethodsMulti-model approachAverage modelsExponential smoothingCausal factorsTrend dampeningModel combinationPick best
Demand Planning Data Mart
Anticipation ofFuture Demand
InformationCollaborative
forecasts
Order & shipmentactuals & history
CostPOS dataNielsen / IRI data ...
APO Applications SNP
Supply Network Planning
Minimize total costsMaximize margins
Supply Network Planning
ForecastsCustomers orders
Sourcing Production &purchasing
requirementsInventory levels
Inventory policies
APO
Liste
Flexible Constraint Definition Supplier capacities Production capacities Transportation capacities Storage capacities ….
Optimization
Supply Chain Model
Supply Feedbackfor Demand
Planning
Deployment
• Demand priorities
• Multi sourcing
• Minimum cost flow optimization
• Heuristics
– Fair Share– Push– Pull-Push
• Transport load planning APO
Liste
Deployment
Supply Network Planning
Production Planning &Detailed Scheduling
APO Applications PPDS
Production Planning & Detailed Scheduling
Customers OrdersAnonymous
Requirements
ExecutableOptimal Production
Plan / Schedule
Optimization
APO Order NetworkDemandSupply
Supply DemandSituation
Production situation
Flexible Constraint Definition Machine capacities Labor pools Shift plans Component availability, ...
Multi plant / single plant Finite and infinite planning Conflict resolution Multi level forward / backward
propagation Pegging Simulation and what-if
Computational SolversAPO Solvers
Distribution Planning
Deployment
A wide variety of computational solversapplied to specific planning functions with
industry-specific variations
ProductionPlanning &Scheduling
DemandPlanning
Heuristic Methods
Linear Programming /Mixed Integer Linear
Programming
Genetic Algorithms, Simul. Annealing
Flow Algorithms
Branch & Bound Algorithm
Exponential SmoothingHolt WintersMultiple Linear Regression
Master and Transactional Data Transmission
R/3 APO
Initial/Incremental
Transfer
liveCache:::::::::::::::::::::
:::::::::::::::::::::
:::::::::::::::::::::
Real Time
Initial/Incremental
Transfer
MasterMasterDataData
Planning Results Transmission
R/3 APO
liveCache
Data Transmission
Request
Real Time
Key processes Demand Planning
1. Statistical Forecasting2. Causal Forecasting.3. Consensus Based Planning4. Collaborative Forecasting5. Life Cycle Planning6. Promotional Planning
Key processes - Distribution Planning.
• Supply network planning and optimization
• Supply/demand balancing• VMI
Knowledge of
• Forecasting• Operations Research• Optimization• Heuristics.
Will be an added advantage.
SAP APO Case Study
Implementation at M&M.
Direct advantages
• Planning: Where to produce when what how much for which market?
• Shift from push based model to pull based model• Reduced cost - Improved Margin.• 65% reduction in Inventory in its supply chain• Replenishment lead time reduced to 19 days from
52 days.
M&M’s Supply Chain and market environment
• Strategically located 2 main plants and 5 assembly plants.
• 23 Area Stock yards.• 400 Dealers.• 800 Suppliers.• Complex supply chain.• Competitive market. Stable selling price.• Investment for product development.• Promotional budget increasing.
Case Learning
Complex Supply Chains
Reduce Supply Chain Cost, mySAP SCM(APO)
Handles Complexity Effectively.
SAP APO Documentation
is available at
\\blrkecfps32\ESSCM\07-SAP APO Documentation
THANK
YOU
