Description
With this comprehensive reference, you'll learn how to implement, optimize, and use SAP ERP and SAP APO for effective materials planning. Expert insights help you understand cross-component materials planning with SAP ERP and SAP SCM as well as modern materials planning procedures. Readers discover how to configure and use the different SAP ERP applications and how best to integrate them with an existing SAP system. In addition, the authors show you how to optimize the tools and determine which settings are useful, and how they affect other settings.Basic Principles and Processes of Materials Planning: Learn the tasks and goals of materials planning, along with the impact of various materials planning parameters on stock.
Impact of Materials Planning Parameters in the SAP System: Benefit from a highly-detailed overview of the materials planning parameters in SAP ERP and SAP APO, and learn how to optimize your materials planning processes using these tools.
Materials Planning Optimization: Get an in-depth look at the powerful tools and functions in SAP ERP and SAP APO to optimize your inventory controlling.
Add-On Tools for SAP ERP Materials Planning: Find out about special add-on tools for materials planning that provide targeted support for effective inventory management, including the materials planning monitor, backlog monitor, and many more.
Diagrams and Real-World Examples: Discover how SAP ERP and SAP APO are applied to materials planning with real-life business scenarios and examples throughout.
CONTENTS:
1 ... Basic Principles of Materials Planning ... 25
... 1.1 ... Goals and Tasks of Materials Planning ... 25
... 1.2 ... Core Functions of Materials Planning ... 26
... 1.3 ... Requirements Calculation ... 27
... ... 1.3.1 ... MRP (Deterministic) Determination of Requirements ... 28
... ... 1.3.2 ... Consumption-Oriented (Forecast-Based) Determination of Requirements ... 29
... ... 1.3.3 ... Order-Based Determination of Requirements ... 30
... 1.4 ... Accumulate Balances ... 30
... 1.5 ... Purchase Order Calculation ... 32
... ... 1.5.1 ... Reorder Cycle Method ... 33
... ... 1.5.2 ... Reorder Point Method ... 36
... ... 1.5.3 ... Mixed Procedure ... 38
... ... 1.5.4 ... Overview of Reorder Policies ... 39
... 1.6 ... Impact of Materials Planning on Inventory ... 40
... ... 1.6.1 ... Selecting the Production Type ... 41
... ... 1.6.2 ... Selecting the MRP Strategy/Determining the Stocking Level ... 42
... ... 1.6.3 ... Selecting Consumption Parameters ... 45
... ... 1.6.4 ... Selecting Lot-Sizing Parameters ... 45
... ... 1.6.5 ... Selecting the Safety Stock Procedure ... 46
... ... 1.6.6 ... Selecting the Forecast Strategies ... 47
... ... 1.6.7 ... Item Classification and Product Analysis ... 47
... 1.7 ... Conclusion ... 48
2 ... Strategic versus Operational Materials Planning ... 49
... 2.1 ... Tasks in Materials Planning ... 49
... 2.2 ... Organizational Integration of Materials Planning ... 51
... 2.3 ... Conclusion ... 54
3 ... Item Classification as the Basis for Materials Planning Decisions ... 55
... 3.1 ... Options Provided by Item Classification ... 56
... ... 3.1.1 ... ABC Analysis ... 56
... ... 3.1.2 ... XYZ Analysis ... 61
... 3.2 ... ABC Analysis with SAP ... 63
... ... 3.2.1 ... Outlining the Analysis Process ... 63
... ... 3.2.2 ... Determining the Analysis Goal ... 64
... ... 3.2.3 ... Defining the Area to Analyze ... 64
... ... 3.2.4 ... Calculating the Data Basis ... 67
... ... 3.2.5 ... Defining the ABC Strategy ... 69
... ... 3.2.6 ... Defining Class Limits ... 71
... ... 3.2.7 ... Assigning Classes ... 72
... ... 3.2.8 ... Evaluating ABC Analysis ... 74
... ... 3.2.9 ... Performing an ABC Segmentation ... 75
... ... 3.2.10 ... Case Scenario: ABC Analysis for Warehouse Optimization ... 77
... ... 3.2.11 ... Case Scenario: ABC Quantity Flow Analysis ... 79
... 3.3 ... XYZ Analysis in the SAP System ... 81
... ... 3.3.1 ... Running Analyses in SAP ERP ... 81
... 3.4 ... Combining ABC and XYZ Analyses ... 83
... ... 3.4.1 ... Optimization Using the ABC/XYZ Matrix ... 83
... ... 3.4.2 ... Using SAP ERP to Create an ABC/XYZ Matrix ... 90
... 3.5 ... Conclusion ... 96
4 ... Materials Planning Process in SAP ... 97
... 4.1 ... Business Overview ... 97
... ... 4.1.1 ... Program Planning ... 98
... ... 4.1.2 ... Quantity Planning ... 100
... ... 4.1.3 ... Scheduling and Capacity Requirements Planning ... 101
... ... 4.1.4 ... Order Conversion and Monitoring ... 102
... 4.2 ... Overview of the Materials Planning Process in the SAP System ... 102
... 4.3 ... Materials Planning Process in SAP ERP ... 104
... ... 4.3.1 ... Program Planning ... 104
... ... 4.3.2 ... Quantity Planning ... 108
... ... 4.3.3 ... Scheduling and Capacity Requirements Planning ... 110
... ... 4.3.4 ... Order Conversion and Monitoring ... 112
... 4.4 ... Materials Planning Process in SAP APO ... 114
... ... 4.4.1 ... Demand Planning ... 115
... ... 4.4.2 ... Supply Network Planning (SNP ... 117
... ... 4.4.3 ... Production Planning and Detailed Scheduling ... 119
... 4.5 ... Conclusion ... 124
5 ... General Materials Planning Master Data ... 127
... 5.1 ... Differences Between SAP ERP and SAP APO ... 127
... 5.2 ... Mass Maintenance of MRP Master Data ... 131
... ... 5.2.1 ... MRP Group ... 131
... ... 5.2.2 ... MRP Profile ... 132
... ... 5.2.3 ... Transaction MASSD ... 133
... 5.3 ... Special Materials ... 133
... 5.4 ... Conclusion ... 134
6 ... Planning Strategies and Requirements Consumption ... 135
... 6.1 ... System Settings in SAP ERP ... 135
... ... 6.1.1 ... Relationship Between the Strategy and Requirements Class ... 136
... ... 6.1.2 ... Assigning a Planning Strategy to a Material ... 139
... ... 6.1.3 ... Consumption Parameter ... 141
... 6.2 ... Planning Strategies in SAP ERP ... 142
... ... 6.2.1 ... Strategies for Make-to-Stock Production ... 143
... ... 6.2.2 ... Final Assembly by Sales Order ... 145
... ... 6.2.3 ... Make-to-Order Production ... 151
... ... 6.2.4 ... Planning with a Planning Material ... 152
... ... 6.2.5 ... Assembly Processing ... 155
... ... 6.2.6 ... Strategies for Configurable Materials ... 156
... ... 6.2.7 ... Reducing Planned Independent Requirements ... 159
... ... 6.2.8 ... Adjusting and Reorganizing Planned Independent Requirements ... 160
... ... 6.2.9 ... Table Summary of Planning Strategies ... 161
... 6.3 ... Planning Strategies in SAP APO ... 168
... ... 6.3.1 ... Requirements Class and Check Mode ... 168
... ... 6.3.2 ... Customizing of Planning Strategies ... 169
... ... 6.3.3 ... Planning Parameters in the Product Master ... 170
... ... 6.3.4 ... Planning Strategy Names in SAP ERP and SAP APO ... 170
... 6.4 ... Conclusion ... 171
7 ... Determination of Requirements Through Planning and Forecasts ... 173
... 7.1 ... Forecasts in SAP ERP and SAP APO ... 173
... ... 7.1.1 ... Forecast Methods ... 175
... ... 7.1.2 ... Forecast Parameters ... 187
... 7.2 ... Forecasting Accuracy ... 192
... ... 7.2.1 ... Error Total (ET ... 192
... ... 7.2.2 ... Mean Absolute Deviation (MAD) ... 193
... ... 7.2.3 ... Mean Square Error (MSE ... 193
... ... 7.2.4 ... Root of the Mean Square Error (RMSE) ... 194
... ... 7.2.5 ... Absolute Percentage Error (APE ... 194
... ... 7.2.6 ... Mean Absolute Percentage Error (MAPE ... 195
... ... 7.2.7 ... Median of the Absolute Percentage Error (MdAPE ... 196
... ... 7.2.8 ... Relative Absolute Error (RAE ... 196
... 7.3 ... Forecast Results and Demand Management ... 197
... ... 7.3.1 ... Adjusting Historical and Forecast Data and Other Influences ... 197
... ... 7.3.2 ... Guidelines for Materials with a High Forecast Error ... 199
... ... 7.3.3 ... Results Evaluation ... 200
... 7.4 ... Conclusion ... 201
8 ... Materials Planning Procedures ... 203
... 8.1 ... Materials Planning Procedures in SAP ERP ... 203
... ... 8.1.1 ... Consumption-Based Planning ... 204
... ... 8.1.2 ... Deterministic MRP ... 212
... 8.2 ... Materials Planning Procedures in SAP APO ... 214
... ... 8.2.1 ... PP Procedure ... 215
... ... 8.2.2 ... Heuristics ... 217
... 8.3 ... Conclusion ... 227
9 ... Procurement Quantity Calculation ... 229
... 9.1 ... Business Background ... 229
... 9.2 ... Procurement Quantity Calculation in SAP ERP ... 233
... ... 9.2.1 ... Static Lot-Sizing Procedures ... 234
... ... 9.2.2 ... Periodic Lot-Sizing Procedures ... 234
... ... 9.2.3 ... Optimum Lot-Sizing Procedures ... 235
... ... 9.2.4 ... Lot-Size Restrictions ... 237
... ... 9.2.5 ... Additional Lot-Size Options ... 238
... ... 9.2.6 ... Scrap Quantity Calculation ... 241
... 9.3 ... Procurement Quantity Calculation in SAP APO ... 242
... ... 9.3.1 ... Static Lot-Sizing Procedures ... 243
... ... 9.3.2 ... Periodic Lot-Sizing Procedures ... 244
... ... 9.3.3 ... Optimum Lot-Sizing Procedures ... 245
... ... 9.3.4 ... Lot-Size Restrictions ... 248
... ... 9.3.5 ... Additional Lot-Size Options ... 248
... ... 9.3.6 ... Origin of the Lot-Size Settings ... 248
... ... 9.3.7 ... Scrap Quantity Calculation ... 250
... 9.4 ... Conclusion ... 252
10 ... Safety Stock Planning ... 253
... 10.1 ... The Purpose of Safety Stock ... 253
... 10.2 ... Uncertainties in Materials Planning ... 254
... 10.3 ... Selecting and Defining the Service Level ... 255
... ... 10.3.1 ... Alpha Service Level ... 255
... ... 10.3.2 ... Beta Service Level ... 256
... ... 10.3.3 ... Defining the Service Level ... 257
... 10.4 ... Safety Stocks and Multilevel BOMs ... 258
... 10.5 ... Safety Stock Planning in SAP ERP ... 259
... ... 10.5.1 ... Manually Maintained Safety Stock ... 259
... ... 10.5.2 ... Automatically Calculated Safety Stock ... 260
... ... 10.5.3 ... Safety Time ... 263
... ... 10.5.4 ... Dynamic Safety Stock ... 265
... 10.6 ... Safety Stock Planning in SAP APO ... 268
... ... 10.6.1 ... Static Standard Methods ... 268
... ... 10.6.2 ... Dynamic Standard Methods and Extended Methods ... 271
... ... 10.6.3 ... Extended Methods ... 276
... 10.7 ... Conclusion ... 285
11 ... Determining Sources of Supply ... 287
... 11.1 ... Source Determination in SAP ERP ... 287
... ... 11.1.1 ... Overview of Procurement Types in SAP ERP ... 287
... ... 11.1.2 ... Types of Special Procurement ... 289
... ... 11.1.3 ... Sources of Supply for In-House Production ... 297
... ... 11.1.4 ... Sources of Supply for External Procurement ... 299
... 11.2 ... Source Determination in SAP APO ... 307
... ... 11.2.1 ... Overview of Procurement Types ... 307
... ... 11.2.2 ... Sources of Supply for In-House Production ... 308
... ... 11.2.3 ... Sources of Supply for External Procurement ... 311
... ... 11.2.4 ... Validity of Sources of Supply ... 313
... ... 11.2.5 ... The Source Determination Process ... 314
... 11.3 ... Conclusion ... 322
12 ... Scheduling Parameters ... 323
... 12.1 ... Scheduling in SAP ERP ... 324
... ... 12.1.1 ... Basic Date Scheduling for In-House Production ... 324
... ... 12.1.2 ... Lead-Time Scheduling ... 330
... 12.2 ... Scheduling in SAP APO ... 339
... ... 12.2.1 ... SAP APO Scheduling for In-House Production ... 339
... ... 12.2.2 ... SAP APO Scheduling for External Procurement ... 345
... 12.3 ... Conclusion ... 348
13 ... Interactions ... 349
... 13.1 ... Parameter Dependencies ... 349
... 13.2 ... Relationship Model of Parameter Optimization ... 353
... 13.3 ... Conclusion ... 356
14 ... Processing Materials Planning Results ... 359
... 14.1 ... Tasks of the MRP Controller and SAP System Support ... 359
... ... 14.1.1 ... Master Data Maintenance ... 360
... ... 14.1.2 ... Qualitative Versus Quantitative Materials Planning ... 360
... 14.2 ... Materials Planning Controlling ... 361
... ... 14.2.1 ... MRP List and Stock/Requirements List ... 362
... ... 14.2.2 ... Standard Analyses ... 363
... 14.3 ... Personal Settings ... 367
... ... 14.3.1 ... Filters ... 367
... ... 14.3.2 ... Navigation Profiles and Favorites ... 368
... 14.4 ... Exception Messages and Troubleshooting (Alert Monitoring ... 369
... 14.5 ... Conclusion ... 371
15 ... Availability Check ... 373
... 15.1 ... Availability Check in SAP ERP ... 373
... ... 15.1.1 ... Availability Check Against ATP Logic ... 373
... ... 15.1.2 ... Availability Check Against Planned Independent Requirements ... 379
... ... 15.1.3 ... Availability Check Against Product Allocations ... 380
... ... 15.1.4 ... Availability Check Against Capacity ... 380
... 15.2 ... Availability Check in SAP APO ... 381
... ... 15.2.1 ... Combination of Basic Methods ... 381
... ... 15.2.2 ... Rules-Based ATP Check ... 382
... ... 15.2.3 ... Capable to Promise (CTP ... 382
... ... 15.2.4 ... Multilevel ATP Check ... 384
... 15.3 ... Conclusion ... 385
16 ... Collaborative Materials Planning Procedures ... 387
... 16.1 ... Vendor-Managed Inventory (VMI) ... 388
... ... 16.1.1 ... The Traditional VMI Process with SAP ERP ... 391
... ... 16.1.2 ... The Extended VMI Process with SAP APO ... 392
... ... 16.1.3 ... The VMI Process with SAP SNC (Responsive Replenishment ... 394
... ... 16.1.4 ... Evaluation of VMI ... 397
... 16.2 ... Supplier-Managed Inventory (SMI ... 399
... ... 16.2.1 ... SMI with Scheduling Agreement Delivery Schedule Lines ... 399
... ... 16.2.2 ... SMI with Purchase Order Processing ... 401
... ... 16.2.3 ... Evaluation of SMI ... 403
... 16.3 ... Conclusion ... 404
17 ... Materials Planning with Kanban Control ... 405
... 17.1 ... The Pull Principle ... 405
... 17.2 ... Elements of Kanban Control ... 407
... ... 17.2.1 ... Kanban Control Cycle ... 408
... ... 17.2.2 ... Kanban Card ... 408
... ... 17.2.3 ... Kanban Board ... 409
... ... 17.2.4 ... Control Charts ... 409
... ... 17.2.5 ... Determining Priorities in the Working System ... 409
... A Comparison of Kanban Control and Conventional Production Planning ... 409
... 17.4 ... Kanban Procedures ... 410
... ... 17.4.1 ... Classic Kanban ... 410
... ... 17.4.2 ... Event-Controlled Kanban ... 411
... ... 17.4.3 ... One-Card Kanban ... 411
... ... 17.4.4 ... Kanban with Quantity Signal ... 412
... 17.5 ... The Kanban Process ... 413
... 17.6 ... Automatic Kanban Calculation ... 416
... 17.7 ... Procedure for Selecting Products Suitable for Kanban ... 420
... 17.8 ... Conclusion ... 424
18 ... Inventory Controlling ... 425
... 18.1 ... Why Inventory Monitoring ... 425
... 18.2 ... Introduction to Logistics Controlling ... 426
... ... 18.2.1 ... Statistical Differentiation of Key Figures ... 427
... ... 18.2.2 ... Business-Related Differentiation of Key Figures ... 428
... ... 18.2.3 ... Logistics Costs and Costs of Materials Planning ... 431
... 18.3 ... Problems with Data Collection ... 434
... 18.4 ... Important Inventory Key Figures ... 435
... ... 18.4.1 ... Range of Coverage Key Figure ... 436
... ... 18.4.2 ... Inventory Turnover Key Figure ... 441
... ... 18.4.3 ... Slow-Moving Items Key Figure ... 442
... ... 18.4.4 ... Stock Value Key Figure ... 443
... ... 18.4.5 ... Dead Stock Key Figure ... 444
... ... 18.4.6 ... Average Stock, Consumption, and Range of Coverage Key Figures ... 445
... ... 18.4.7 ... Receipt Value of Valuated Stock Key Figure ... 447
... ... 18.4.8 ... Safety Stock Buffer Key Figure ... 447
... ... 18.4.9 ... Safety Stock Key Figure ... 448
... ... 18.4.10 ... Service Level Key Figure ... 450
... ... 18.4.11 ... Stock at Receipt Key Figure ... 456
... ... 18.4.12 ... Lot Size Key Figure ... 456
... 18.5 ... Tools for Inventory Analysis ... 457
... ... 18.5.1 ... LMN Analysis ... 457
... ... 18.5.2 ... Flowcharts for Material Flow Analysis ... 458
... ... 18.5.3 ... Procurement and Consumption Cycles ... 460
... 18.6 ... Inventory Monitoring in SAP ERP ... 461
... 18.7 ... Inventory Controlling with SAP APO and SAP NetWeaver BW ... 464
... ... 18.7.1 ... Options for Evaluating Inventory Information ... 465
... ... 18.7.2 ... Overview of SAP NetWeaver BW ... 467
... ... 18.7.3 ... Using Business Content ... 469
... 18.8 ... Conclusion ... 479
19 ... Materials Planning Optimization ... 481
... 19.1 ... Classic Problems and Optimization Potential ... 481
... ... 19.1.1 ... Lack of Knowledge and Insufficient Use of the Standard SAP System ... 481
... ... 19.1.2 ... Stock Problems Caused by Incorrect Order Progress Messages ... 482
... ... 19.1.3 ... Stock Problems Caused by Backlogs ... 484
... ... 19.1.4 ... Weaknesses of Parameterization in SAP ERP ... 485
... 19.2 ... Example of the Process Flow of an Optimization Project ... 486
... ... 19.2.1 ... Step 1: Master Data and Process Analysis According to ABC/XYZ ... 486
... ... 19.2.2 ... Step 2: MRP Training ... 487
... ... 19.2.3 ... Step 3: Classifying and Creating the Set of Rules ... 487
... ... 19.2.4 ... Step 4: Migration and Continuous Optimization ... 489
... 19.3 ... Product Classification ... 491
... ... 19.3.1 ... Decision-Making Support for MRP Controllers ... 491
... ... 19.3.2 ... MRP Matrix ... 504
... ... 19.3.3 ... Effects of Classification on Planning ... 508
... 19.4 ... Optimization Tools from SAP Consulting ... 510
... ... 19.4.1 ... MRP Monitor ... 510
... ... 19.4.2 ... Replenishment Lead Time Monitor (RLT Monitor ... 514
... ... 19.4.3 ... MRP Optimization Expert Tool ... 515
... ... 19.4.4 ... Forecast Monitor ... 517
... 19.5 ... Conclusion ... 519
20 ... Outlook ... 521
A ... Literature ... 527
B ... Materials Planning Parameters and Influencing Factors ... 529
... B.1 ... Planning Strategy ... 529
... ... B.1.1 ... Parameters Affected by the Planning Strategy ... 532
... B.2 ... Materials Planning Type ... 534
... ... B.2.1 ... Parameters Affected by the Materials Planning Type ... 535
... B.3 ... Forecast Method ... 536
... ... B.3.1 ... Parameters Affected by the Forecast Method ... 537
... B.4 ... Lot-Size Procedure ... 540
... ... B.4.1 ... Parameters Affected by the Forecast Method ... 542
... B.5 ... Safety Stock ... 543
... ... B.5.1 ... Parameters Affected by the Safety Stock ... 544
C ... Materials Planning Optimization - Four Steps for Implementation with the Support of SAP Consulting ... 547
... C.1 ... Introduction ... 547
... C.2 ... Materials Planning Optimization Service Offering ... 547
... C.3 ... Objectives of the Materials Planning Optimization Service Offering ... 549
... C.4 ... Contents During the Implementation ... 549
... C.5 ... Procedure When Implementing the Ser - vice Offering ... 550
... C.6 ... Results of Service Offering ... 550
D ... Add-Ons for SAP ERP ... 551
... D.1 ... Forecast Monitor ... 551
... D.2 ... MRP Monitor ... 551
... D.3 ... Replenishment Lead Time Monitor ... 551
... D.4 ... Simulating Safety Stocks ... 551
... D.5 ... Service Level Monitor ... 551
E ... The Authors ... 553
Published
30 Aug 2009
Publisher
SAP PRESS/GALILEO PRESS
ISBN
9781592292592
Pages
564
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