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SAP AG 2001, SCM Optimization Infodays, Dr. Heinrich Braun 1 Roundup: Optimizing on the Basis of Hierarchical Planning Principles mySAP Supply Chain Management PD. Dr. Heinrich Braun Dr. Dirk Meier-Barthold GBU SCM

Roundup: Optimizing on the Basis of Hierarchical Planning ...extras.springer.com/2005/978-0-387-22198-4/.../sap/... · Roundup: Optimizing on the Basis of Hierarchical Planning Principles

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Page 1: Roundup: Optimizing on the Basis of Hierarchical Planning ...extras.springer.com/2005/978-0-387-22198-4/.../sap/... · Roundup: Optimizing on the Basis of Hierarchical Planning Principles

SAP AG 2001, SCM Optimization Infodays, Dr. Heinrich Braun 1

Roundup: Optimizing on the Basis of Hierarchical Planning Principles

mySAP Supply Chain Management

PD. Dr. Heinrich BraunDr. Dirk Meier-Barthold

GBU SCM

Page 2: Roundup: Optimizing on the Basis of Hierarchical Planning ...extras.springer.com/2005/978-0-387-22198-4/.../sap/... · Roundup: Optimizing on the Basis of Hierarchical Planning Principles

SAP AG 2001, SCM Optimization Infodays, Dr. Heinrich Braun 2

Agenda

111 Integration of SNP and PP/ DS

222 Example: Integrated campaign optimization

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SAP AG 2001, SCM Optimization Infodays, Dr. Heinrich Braun 3

Integrating SNP and PP/DS planning

SNP

Respects PP/DS orders as fixed " Capacity reduction" Material flow

Planning SNP orders only in SNP Horizon

PP/DS

Respects pegged SNP demands as due dates" No capacity reduction" But material flow

No restriction for schedulingPP/DS orders

But release SNP orders only in PP/DS Horizon

PP/DS HorizonSNP Horizon

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SAP AG 2001, SCM Optimization Infodays, Dr. Heinrich Braun 4

SNP considers setup in PP/DS

Setup for each bucket

Enhancing PP/DS orders by SNP orders

Bucket 1 Bucket 2

SNP

PP/DS

PP/DS-orders

PP/DSorders

Bucket 1 Bucket 2

SNP

PP/DS

A

BASNP-

orders

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SAP AG 2001, SCM Optimization Infodays, Dr. Heinrich Braun 5

SNP considers setup in PP/DS

Setup for each bucket

Enhancing PP/DS orders by SNP orders

Bucket 1 Bucket 2

SNP

PP/DS

PP/DS-orders

PP/DSorders

Bucket 1 Bucket 2

SNP

PP/DS

B

ASNP-orders

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SAP AG 2001, SCM Optimization Infodays, Dr. Heinrich Braun 6

Lotsize/campaigns spanning several buckets

Setup for each bucket

Setup for each lotsize/ campaign

SNP

SNP

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SAP AG 2001, SCM Optimization Infodays, Dr. Heinrich Braun 7

Enhance campaigns

SNP

released SNP-order

PP/DS

SNP

PP/DS

PP/DS-orders

SNP-order

1. SNP plans order in the bucket at the end of the campaign, if capacity is available

2. PP release order in this bucket

3. Campaign optimizer tries to enhance the campaign, if allowed in optimizer profile

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SAP AG 2001, SCM Optimization Infodays, Dr. Heinrich Braun 8

Sourcing of SNP to alternative Production Process Model orders

Can be respected for release to PP/DS orders

PP/DS need not create orders

SNP selects alternative PPMs (sourcing)

150

50

150

250

150

100

150

250

150

400

PPM1

PPM2

400

200

300

500

PPM1

PPM2

SNP-Orders

PPDS-Orders

Fix Lotsize: 150

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SAP AG 2001, SCM Optimization Infodays, Dr. Heinrich Braun 9

Supply network wide campaign planning

1. Enhance plan horizon and actualize demands

2. Optimize supply chain plan

3. Release SNP-orders in PP/ DS-orders in PP/ DS-horizon

4. Campaign optimization in PP/ DS

5. Reoptimize supply chain plan (considering PP/DS optimization)

time

stages

Packaging

Bulk

Active Ingredient

Rolling planning schema

t t+1

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SAP AG 2001, SCM Optimization Infodays, Dr. Heinrich Braun 10

Agenda

111 Integration of SNP and PP/ DS

222 Example: Integrated campaign optimization

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SAP AG 2001, SCM Optimization Infodays, Dr. Heinrich Braun 11

Concept of integrated campaign optimization

SNP PP/DS

Supply Network Optimization

SNP-production orders

DP

Demand Planning withBill of Material

Release SNP-orders to PP/DS

PP/PI

Campaign planning for bottleneck resource

Trigger forreleasing to R/3

Release DP-forecastto SNP

PP/DS-production orders

R/3-production orders

Production ordersassigned to campaign

APO R/3

PP/PI-production ordersassigned to campaign

R/3-production ordersassigned to campaign

Deleting of PP/ DS production orders (optional)

PI-CIF

SNP-confirmed forecasts

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SAP AG 2001, SCM Optimization Infodays, Dr. Heinrich Braun 12

An Example of integrated campaign optimization

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SAP AG 2001, SCM Optimization Infodays, Dr. Heinrich Braun 13

Concept of Demand Planning with dependent demand

(Product 4711,Customer A, ...) (Product 4711,Customer B, ...)

(Component F,Product 4711,Customer A, ...) (Component F,Product 4711,Customer B,...)

DP-Relationships∑ ∑

*q *s

SNP-Relationships

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SAP AG 2001, SCM Optimization Infodays, Dr. Heinrich Braun 14

Demand Planning with dependent demand (1)

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SAP AG 2001, SCM Optimization Infodays, Dr. Heinrich Braun 15

Demand Planning with dependent demand (2)

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SAP AG 2001, SCM Optimization Infodays, Dr. Heinrich Braun 16

Result of the Demand Planning

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SAP AG 2001, SCM Optimization Infodays, Dr. Heinrich Braun 17

Release of Demand Planning forecast to SNP

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SAP AG 2001, SCM Optimization Infodays, Dr. Heinrich Braun 18

Forecast im SNP

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SAP AG 2001, SCM Optimization Infodays, Dr. Heinrich Braun 19

Strategy of the SNP-Optimizer

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SAP AG 2001, SCM Optimization Infodays, Dr. Heinrich Braun 20

SNP-Optimizer result

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SAP AG 2001, SCM Optimization Infodays, Dr. Heinrich Braun 21

SNP-Optimizer result for endproduct

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SAP AG 2001, SCM Optimization Infodays, Dr. Heinrich Braun 22

Release of SNP-confirmed forecast to Demand Planning

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SAP AG 2001, SCM Optimization Infodays, Dr. Heinrich Braun 23

SNP-confirmed forecast in Demand Planning

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SAP AG 2001, SCM Optimization Infodays, Dr. Heinrich Braun 24

SNP-Optimizer result for bottled product (1)

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SAP AG 2001, SCM Optimization Infodays, Dr. Heinrich Braun 25

SNP-Optimizer result for packaged product (2)

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SAP AG 2001, SCM Optimization Infodays, Dr. Heinrich Braun 26

SNP-Optimizer result for bulk product

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SAP AG 2001, SCM Optimization Infodays, Dr. Heinrich Braun 27

SNP-Optimizer result for active ingredient

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SAP AG 2001, SCM Optimization Infodays, Dr. Heinrich Braun 28

SNP-Optimizer result for raw material

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SAP AG 2001, SCM Optimization Infodays, Dr. Heinrich Braun 29

SNP-Optimizer result in PP/ DS planning table

Page 30: Roundup: Optimizing on the Basis of Hierarchical Planning ...extras.springer.com/2005/978-0-387-22198-4/.../sap/... · Roundup: Optimizing on the Basis of Hierarchical Planning Principles

SAP AG 2001, SCM Optimization Infodays, Dr. Heinrich Braun 30

Packaging

Bulk

Active Ingredients

SNP

PP/DS

SNP

PP/DS

SNP

PP/DS

Campaign Optimization

Campaign Optimization

Campaign Optimization

X

X XRounding value!!!

Production time of PP/DS orderSet up time of PP/ DS order between different campaignsSet up time of PP/DS order within a campaign

Demand

Production time of SNP order

Production horizon

Concept of SNP-order and PP/DS-order integration

Set up time of SNP order

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SAP AG 2001, SCM Optimization Infodays, Dr. Heinrich Braun 31

Result of the release in the product view

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SAP AG 2001, SCM Optimization Infodays, Dr. Heinrich Braun 32

Result of the release in the PP/DS planningtable

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SAP AG 2001, SCM Optimization Infodays, Dr. Heinrich Braun 33

Strategy of the campaign optimizer

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SAP AG 2001, SCM Optimization Infodays, Dr. Heinrich Braun 34

Result of the campaign planning for the active ingredients

Page 35: Roundup: Optimizing on the Basis of Hierarchical Planning ...extras.springer.com/2005/978-0-387-22198-4/.../sap/... · Roundup: Optimizing on the Basis of Hierarchical Planning Principles

SAP AG 2001, SCM Optimization Infodays, Dr. Heinrich Braun 35

Result of the campaign planning for the bulk product

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SAP AG 2001, SCM Optimization Infodays, Dr. Heinrich Braun 36

Result of the campaign planning for the packaged product

Page 37: Roundup: Optimizing on the Basis of Hierarchical Planning ...extras.springer.com/2005/978-0-387-22198-4/.../sap/... · Roundup: Optimizing on the Basis of Hierarchical Planning Principles

SAP AG 2001, SCM Optimization Infodays, Dr. Heinrich Braun 37

Result of the campaign planning for the end product

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SAP AG 2001, SCM Optimization Infodays, Dr. Heinrich Braun 38

Strategy of the Generic Algorithm

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SAP AG 2001, SCM Optimization Infodays, Dr. Heinrich Braun 39

Result of the integrated campaign optimization