APO SNP Optimizer - Advanced Simulation

EXPERIENCE YOU CAN TRUST

INSIGHTS YOU CAN USE

INNOVATION YOU CAN PROFIT FROM

Adaptable Customer Solution

Advanced Simulation

Dr. Mathias Göbelt

SAP Consulting




Business Drivers and Challenges

Advanced Simulation Approach

Advanced Simulation in Detail

Value Proposition & Key Differentiators

Fact & Figures








Fact & Figures

SAP AG 2006, Advanced Simulation / 4

Typical Customer Challenges

a highly sophisticated supply chain with the need to adjust to ever-changing market conditions

the need to reliably deliver to customers with diversified demands on a timely basis

competition that demands you continuously optimize your supply chain effectiveness

limited forward visibility into the effects of supply chain adjustments

Consider implementing a tool to simulate and compare the impacts

of changes to your supply chain.

SAP Advanced Simulation helps

customers facing…


Value to You

INCREASED

CUSTOMER

SATISFACTION

Increase your service level by having the right

product in the right location at the right time

SOLID

DECISION MAKING

Make business decisions founded on a solid

understanding of your supply chain alternatives and

improved forward visibility of their effects

OPTIMIZED

INVENTORY LEVEL

Determine the best inventory level by considering

different inventory strategies and demand scenarios

REDUCED

SUPPLY CHAIN

DISRUPTIONS

Reduce disruptions to your supply chain based on

comprehensive visibility of future requirements

Resulting in REDUCED OVERALL COST and an

INCREASED SERVICE LEVEL for your customers








Fact & Figures


Advanced Simulation Solution Approach

Advanced Simulation enables you to simulate and store multiple

supply chain optimization scenarios and to analyze and compare

their results

Select the supply chain scenario you wish to

use as the basis for simulation

Create simulation scenarios for your supply

chain by changing elements such as your

Forecast and sales order demand

Safety stock requirements

Products, production plants/DCs or

resources

Supply Chain cost

Optimize each scenario to understand the

effects of the changes

Display and compare the optimized scenarios

as a basis for your business decisions








Fact & Figures







Capabilities & Scenarios

Example: Typical Simulation Process

System Demo / Screen Cam


Fact & Figures


Advanced Simulation Capability Overview

Advanced Planning enables you to run and store multiple simulation runs with varying master and transactional data and to compare and analyze the results

Simulation functionality includes creation, copy, modification, deletion and mass-change of master and transaction data

Dependent data is in most cases automatically created, deleted or changed

No restrictions for master data simulation

Simulation does not affect the active model or any other simulation in progress

Simulation can be run for the complete model or parts thereof

Analysis and comparison of results in the SAP Business Information Warehouse or APO BW

Simulation does not cause additional LiveCache load

Simulation scenarios stored in database

Advanced Simulation is based on Supply Network Planning (SNP) Optimization


Advanced Simulation Capability Overview (cont’d)

Snapshot

of master data and

transaction data

Simulate:

Add, change or delete

master data and/or

transaction data

Simulate optimization

run

by considering the

simulated changes

Transfer to

My SAP BW for

what-if analysis

Activate the best plan

by changing active

master data and

transaction data

according to the

simulation.

New Buttons


Capabilities in Detail

Master Data Simulation Capabilities

Add / copy / modify / delete functionality for

Locations (e.g. plants, DCs, customers)

Location copy allows to copy all dependent data (e.g. products, resources,

PDS/PPMs)

Location deletion automatically removes all dependent data

Products

Product copy allow to copy dependent data (e.g. cost, safety stock

requirements, demand)

Product deletion automatically removes all dependent data

Transportation lanes

Transportation lane copy allows to copy assigned lane products

Transportation lane deletion automatically removes all dependent data

Resources (production, transportation, handling, storage)

Resource copy copies resource calendars, capacity variants and profiles

Resource deletion automatically removes all dependent data

Production Data Structures (PDS) / Production Process Models

(PPM)

Product Interchangeability


Capabilities in Detail (cont’d)

Transactional / Time Series Data Simulation Capabilities

Add / copy / modify / delete functionality for

Demand (e.g. forecast, sales orders)

Safety Stock / Safety days’ supply

Procurement limits

Fixed Receipts

Mass Change Functionality for

Products

Transportation lanes

Resources

Production Data Structures / Production Process Models

Demand


Capabilities in Detail (cont’d)

Result Analysis / Comparison Functionality

Result logs and tables in APO

Using enhanced SNP Optimization log transaction (SCM 4.1)

KPI calculation in APO (SCM 5.0)

Transfer of results to BW

Comparison reports and KPI calculation in BW

Standard comparison reports can be enhanced by customer-specific

reports and calculations

Tracking of Data Modification

Change log captures all changes to master and transactional

data


Business Scenario:

Sales and Operations Planning (S&OP)

Demand

Planning

Strategic

Planning

Supply

Planning

Management

Evaluation &

Analytics

Sales & Operations Planning

Supply &

Demand

Balancing

•Market

planning

•New product

planning

•Resource

Planning

•Quantitative

Forecasting

•Sales,

Marketing

Input

•Demand

Balancing

•Capacity

Planning

•Inventory

Planning

•Procurement

Planning

•Logistics

•KPI

Measurement

•Plan vs. Actual

•Forecast error

•Margin

Management

•Root Cause

Analysis

•Product Mix

•Constraint

Management

•Allocation

Demand to

Supply


S&OP: Strategic Planning

Strategic Planning Tasks

Market Planning

Resource Planning

New Product Planning

Advanced Simulation support for Strategic Planning tasks

Add / copy / delete locations (e.g. distribution centers and

plants)

Add / copy / delete resources (and corresponding PPMs/PDS)

Modify resource capacity

Add / copy /delete products

Modify demand

Create interchangeability rules


S&OP: Supply Planning

Supply Planning Tasks

Capacity Planning

Inventory Planning

Procurement Planning

Logistics Planning


Modify resource capacities & calendars

Set resources to finite or infinite capacity

Modify capacity utilization cost

Modify safety stock / safety days’ supply

Modify maximum stock levels

Modify storage cost / safety stock penalty

Enable / disable external procurement

Modify procurement costs and procurement limits

Add / modify means of transport

Modify transportation cost


S&OP: Supply and Demand Balancing

Supply and Demand Balancing Tasks

Product Mix

Constraint Management

Allocation Demand to Supply


Add / copy / delete products

Modify demand and safety stock

Modify production and procurement costs

Activate / deactivate capacity constraints

Modify capacity constraints

Add / modify / delete resources

Modify demand

Modify non-delivery and late delivery penalties


S&OP: S&OP Meeting – Evaluation and Analysis

Evaluation and Analysis Tasks

KPI Measurement

Plan vs. Actual

Forecast error

Margin Management

Root Cause Analysis

Advanced Simulation support for Evaluation and Analysis

tasks

KPI Calculation for simulation scenarios

Comparison reports

Compare margin calculations across simulated scenarios

Result logs and comparison reports





Advanced Simulation Server Approach

Advanced Simulation Server in Detail





Fact & Figures


Run SNP Optimization in active or simulation version to generate

reference data set

Logs generated after

standard optimization run

Advanced Simulation Process – Step 1


Copy reference data set log to advanced simulation scenario

Select reference run

and execute copy

Assign name and

description to

simulation scenario

New scenario with 1:1 copy of

reference input data



Change master / transaction data to create required scenario

Any master/transaction data can be

• created and/or copied

• modified

• deleted

Mass change option available



Data Option

Product a) Create by copying reference product (with all dependent data)

b) Delete location product or entire product (with all dependent data)

c) Mass change of product attributes

d) Modification of product attributes

Location a) Create location

b) Copy existing location (with all dependent data)

c) Delete location (with all dependant data)

d) Modification of location attributes

PPM a) Create PPM (with resource consumption and material flow data)

b) Copy existing PPM (with all dependent data)

c) Delete PPM (with all dependent data)

d) Mass change of PPM attributes

e) Modification of PPM attributes

Master Data Simulation Options

Advanced Simulation Process – Step 3 – Details 1


Data Option

Resource a) Create a resource (production resource, storage resource,

transportation resource and handling resource)

b) Copy resource (production and transportation resource)

c) Delete resource (with all dependent data)

d) Modification of resource

Transportation

lane

a) Copy existing transportation lane (with all dependent data

including lane products)

b) Delete lane product or entire transportation lane (with all

dependent data)

c) Mass change of lane attributes

d) Modification of transportation lane attributes

Product

Interchangeability

a) Create product interchangeability rule

b) Delete product interchangeability rule


Master Data Simulation Options


Data Option

Demand a) Create/Mass Create demand

b) Delete demand

c) Mass change of demand

d) Modification of demand attributes

Location material a) Delete location material data

b) Mass change of location material data

c) Modification of location material attributes

Procurement limits a) Create procurement data

b) Delete procurement data

c) Modification of procurement data attributes

Transactional Data Simulation Options



Master Data : Product Delete Location product or the

entire product

Copy product to particular

location or to all locations

Product attributes like

Procurement cost, Safety stock,

Penalty, etc can be changed

Mass change

allows to change

attributes for

range of Products

which can be

restricted using

selection criteria



Perform Advanced Optimization Simulation Run

Select modified scenario and run

advanced simulation run



Analyse advanced optimization results using optimization

result log display in APO


Additional Result Log Tables

• Product view

• Capacity view

Repeat steps 2 – 5 to create additional scenarios (as required)


Transfer advanced optimizer run to BW


Select advanced optimizer

run and transfer to BW


7: Compare selected advanced simulation runs in BW

Scheduled transfer of selected advanced optimization runs possible

Avoid additional load on APO / BW servers during working hours

Comparison reports for

Product view

Capacity view

8: Select most suitable scenario

9: Implement changes to actual master/transaction data

Supported by change log which captures all changes

Advanced Simulation Process – Step 7 - 9











Fact & Figures


Demo

Demo








Fact & Figures


Benefits of SAP Advanced Simulation

COMPREHENSIVE

SIMULATION

CAPABILITIES

Enables simulation for all master data objects,

including planning version- and model-independent

data, and all transactional data

REDUCES

LIVECACHE LOAD

Simulation scenarios stored in database, no

additional LiveCache load

‘AUTONOMOUS’

SIMULATION DATA

Simulation data fully independent of active model

data and other simulation data sets

ANALYSIS AND

COMPARISON

OPTIONS

Analysis and comparison of results in APO, Business

Information Warehouse or APO BW

BASED ON SNP

OPTIMIZATION

SNP Optimization offers comprehensive functionality

to generate feasible plans for a multitude of supply

chain scenarios


Success at Kimberly-Clark

“ With Advanced Simulation, we are able to easily

simulate possible bottlenecks in our overall

logistics planning; allowing for quicker and more

strategic decisions on potential investments, new

or improved processes, and resource

alternatives.

SAP’s Advanced Simulation solution provided us

with the right tools to easily compare alternate

planning scenarios and choose the best solution.

Greg Schroeder

Project Manager








Fact & Figures


SAP SCM system:

SCM 4.1 or higher

SCM 4.0 implementations possible with

additional effort

SNP Optimization used a planning engine

Use of internal APO BW or external BIW

No other prerequisites

System Landscape of SAP Advanced Simulation

Technical Prerequisites for SAP Advanced Simulation


To Learn More

To find us on the web:

SAP Service Marketplace: http://service.sap.com/customdev

To contact us personally:

Arnold Heinz

Mail: [email protected]

For quick access to the product brochure:

http://service.sap.com/customdev

mailto:[email protected]

Documents

APO SNP Optimizer - Advanced Simulation