Engineer to Order

SAP for Industrial Machinery & Components

Mak e- o- rder Manufac uring a n d En En g i n e e r - o - r d e r – r o j e c t M a n uf uf a c u r in g nhanc em ent s S M 5. Harald Vogel Solution Manager SAP for IM&C, SAP AG

MTO/ETO Manufacturing Overview MTO/ETO Manufacturing Issues & Pain Points SAP Solution Overview & Positioning Benefit Areas, KPIs, & Benchmarking Customer Success Stories Summary


M T S, S , M T O, O, ET O M a n u f a c t u r i n g M o d e l s

Make-to-Stock Standard Products no Product Variants

Make-to-Order Multiple Product Variants Mass-Customization

Engineer-to-Order Customer specific Design/Engineering

Mix of manufacturing models within a company are common

©

SAP AG 2005, MTO/ETO Manufacturing, Harald Vogel / 3

M a r k e t T r e n d s a n d I n d u s t r y N e e ds

De m a n d f o r p r o d uc t v a r ie t y a n d s h o rt e r l e a d t i m e s  Need to offer multiple product configurations,

often also custom specific design  Handle changing customer requirements  Highly automated and integrated MTO/ATO processes  ETO processes where required with improved project planning

M a r g i n p r e s s u r e t h r o u g h gl o b a l i za t i o n a n d i n c r e a s e d c o m p e t i t i o n  Requirement of automation for cost reduction  Advanced planning required to achieve high resource utilization

Ou t s o u r c i n g / o f f s h o r e m a n u f a c t u r i n g  Increasingly complex supply network  Need for integration of suppliers into supply network

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K e y I s s u e s f o r M T O a n d ET O-Pr o j e c t M a n u f a c t u r i n g Key Issues

Observations

Too low transparency in the supply chain



No integrated view on sales orders, projects, production orders purchase orders and stock situation

Weak coordination and integration of project planning, engineering and production



Project planning, engineering and production departments work on different tools without coordination and integrated planning

High stock levels and low capacity utilization since missing parts and capacity overload are not considered in scheduling



Frequent disturbances in production since parts or capacities for the scheduled orders are not available or orders were scheduled in the past and are not updated

Expensive short-term corrective action



Frequent changes within the processing of orders since parts are not available or capacities are blocked

Long lead times



Frequent disturbances and changes result in long lead times for orders

Frequent delays in delivery causing penalty costs



Low transparency, weakly integrated planning and frequent disturbances and changes result in highly variable lead times and frequent delays

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I m p o r t a n c e o f M T O a n d ET O-Pr o j e c t M a n u f a c t u r i n g Why is Advanced Planning for MTO- and ETO - Project Manufacturing important for many industrial manufacturers  Most machinery manufacturers use the MTO and ETO

1 5 97 I M & C Customers

manufacturing model for part of their product mix  MTO- and ETO - Project Manufacturing in SAP R/3 has a

large customer base in IM&C, A&D, …

307 (15%)

 1597 IM&C Customers worldwide

APA

 The shortcomings of MRP II and changed business needs

EMEA

require advanced planning and scheduling capabilities  MTO and Project Manufacturing with SAP SCM provides the

required improvements for machinery manufacturers

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1.477 (74%)

AME

236 (11%)


So l u t i o n M ap : I n d u s t r i a l M ac h i n e r y & Co m p o n e n t s Suppliers & Engineering Partners

Design

Market & Sell

Engineer

Procure

Manufacture

Store & Move

Service

R e s ea r c h & D e ve l o p m e n t New Product Development & Introduction Life-Cycle Data Management

1

S al e s & M a r k e t i n g

Marketing Management

2

Channel Management Quote/Sales Cycle Management Supply Chain Planning

3

Demand & Supply Planning

4

Manufacturing

Engineer-To-Order – Project Manufacturing Make-To-Order Manufacturing Make-To-Stock Manufacturing Procurement

Strategic / Global Sourcing Operational Procurement Supplier Collaboration L o g i s t i c s & D i s t r i b ut i o n

Warehouse Management Transportation Management

5 6

A f t e r m a r k e t S al e s & Service Service Operations Planning and Execution

Service Parts Management Warranty & Returns Management

E n t e r p r is e M a n a g e m e n t & S up p o r t Analytics Financials Human Capital Management Enterprise Asset Management Corporate Services ©


A f t e r m a r k e t S al e s & Service Service Operations Planning and Execution Service Parts Management

Customers & Channels

Pr o j ec t M a nu f ac t u r i ng f o r I M& C a n d A & D This sc enario for mac hinery m a n u f a c t u r e r s i nt e g r at e s SA P ERP Pr o j e c t Sy s t e m (PS) w i t h SA P A d v a n c e d P l a n n i n g a n d Op t i m i z a t i o n ( SA P A PO)

Project Manufacturing SAP APO

SAP ERP

Project Scheduling & Capacity Planning

Project Structuring

 Integrated project and production

Engineering

scheduling  Constraint-based project and production

Project Execution

Integrated project and materials planning

scheduling

Production & Procurement Execution

 Backlog-free scheduling in feasible plans  Interactive simulation of different planning

scenarios  Alerts for early detection of bottlenecks

Production Planning and Control SAP ERP

SAP SCM

DP

SAP NetWeaver

©


SNP

GATP

PP/DS

TP/VS

SNC

Production Planning and Detailed Scheduling

ICH

EM

MM

SD

PP

LES

M a k e -t o -Or d e r M a n u f a c t u r i n g f o r I M & C / Di s c r e t e Make-to-Order Manufacturing SAP CRM / SAP ERP

SAP ERP

SAP SCM Component Demand Planning

Configuration and Sales Cycle Management

Detail Configuration and Engineering Order BOM / Routing

Determination of Delivery Date

 Integration of variant configuration Production Planning & Scheduling

Production & Procurement Execution Order Billing

This scenario for industrial m a c h i ne r y & c o m p o ne n t s a n d d i s c r e t e m a n u f ac t u r e rs s u p p o r t s s a l e s , e n gi n e e r i n g a n d m a n u f a c t u r i ng f o r c o m p l e x i n d u st r i a l p r o d uc t s and engineering with order specific bills-of-material between CRM, ERP and SCM  Determination of delivery date

considering material and capacity constraints

Shipping & Assembly

 Constraint based production

planning and scheduling – feasible plans Production Planning and Control SAP ERP

SAP SCM

DP

SAP NetWeaver

©


SNP

GATP

PP/DS

TP/VS

SNC

Production Planning and Detailed Scheduling

ICH

EM

MM

SD

Sales & Distribution

PP

LES

M a k e -t o -Or d e r & Pr o j e c t M a n u f a c t u r i n g f o r I M & C / Di s c r e t e New Implementation Content / Packages for SCM 5.0  New scenario with content in SAP solution manager for accelerated implementation,

configuration guide to realize process flow of scenario, required BADI enhancements:  Engineer-to-Order – Project Manufacturing  Make-to-Order Manufacturing

Scenario Enhancements in SAP SCM 5.0 (applicable for MTO and ETO)  Planning with critical path in a multi-level order network

including project orders, sales orders, production orders, planned orders, requisitions  Multi-level scheduling with buffer times  Reduction of buffer times  Earliest and latest dates in planned orders and production orders

Business Value  Enhanced multi-level planning and adaptiveness in bottleneck situations

order-driven manufacturing  Improved mid- and short-term scheduling and capacity planning  Smooth transition from infinite to finite schedules  Higher flexibility in capacity planning  Better resource utilization, reduced lead times, improved on-time delivery ©


ET O, M T O , M T S M a n u f a c t u r i n g – m y SA P ERP

Enhancements in mySAP ERP:  Production supervisor dashboard  task list for release, processing and confirmation of orders on the shop floor  KPI key figure monitor

 Plant manager, maintenance technician, quality inspector dashboards  Manufacturing analytics and performance management  Improved Mobile Asset Management  Shop-Floor Integration  ANSI/ISA S95 compliance  Manufacturing Partner Program  xApp MII - Manufacturing Integration & Intelligence

(Lighthammer acquisition)  Discrete Industries / Mill Products (DIMP) industry functionality can now

be activated in SAP ECC 6.0, no separate SAP ECC DIMP release

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Ov e r v i e w Ob j e c t s a n d SA P Co m p o n e n t s FIN: WBS-Structure

Order BOM also possible! P-1

PLM: WBS BOM

PDS – Production Data Structure (formerly RTO)

P

P-2

P-3

PLM: Network

APO PP/DS: Project Order

Task B

Task B

Task D

Task A

Task C 6100 Lifting Gear

PLM: Mat. BOM

6000 Crane 6100 Lifting Gear 6200 Drive 6210 Transmission 6220 Engine 6229 Shaft

Task C

6200 Drive

APO PP/DS: Order 6220 Engine

MM/SRM: Requisition 10: 6229 Shaft 1PC

MM-IV: Inventory Plant Stock

Task D

Task A

6100 Lifting Gear

PP: Order

Order Stock

SAP ERP ©

CIF CIF

6200 Drive

6200 Drive

PLM: Materials

APO: Focus PDS (WBS)


6200 Drive

CIF

CIF

APO: PDS/PPM 6220 Engine

PP/DS: Requisition 10: 6229 Shaft 1PC

PP/DS: Inventory Project Stock

Plant Stock

Order Stock

SAP SCM - APO

Project Stock

APO: Products 6000 Crane 6100 Lifting Gear 6200 Drive 6210 Engine 6220 Transmission 6229 Shaft

Pr o j ec t Pl a n ni n g – Pr o j ec t St r u c t u r i ng Project Planning

Advance Procurement

Engineering

Production Planning & Optimization

Jan

WBS structure

Networks structure

©

Production Scheduling


Feb

Manufacturing Execution

March

Apr

Engineering Change Management

May

Quality Assurance & Control

June

Shipping, Assembly & Start-Up

July

Pr o j ec t Pl a n ni n g – Pr o j ec t St r u c t u r i ng Project Planning

©

Advance Procurement

Engineering








A d v a n c e d Pr o j e c t Sc h e d u l i n g & Ca p a c i t y Pl a n n i n g Project Planning

Advance Procurement

Engineering



A d v a n c e d P r o je c t Sc h e d u l i n g a nd Ca p a c i t y Pl a n n i n g  Schedule infinite / finite  Remove Backlog – Feasible Plans  Optimization to reach global planning

goals for all projects  Simulation to determine feasible

project end date in quotation phase  Planning on pool capacities  Alert for violation of project end date

Int egr at ion SAP ERP and SAP SCM  Transfer SAP ERP network to

SAP APO project order  Transfer scheduling results back

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I n t e g r a t i o n o f ERP PS n e t w o r k t o A PO Pr o j e c t Or d e r Part of Core Interface (CIF) integration model (Transaction CFM1) Select networks to be transferred via order type and plant BADIs available for more specific selection

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I n t e g r a t i o n o f ERP PS n e t w o r k t o A PO Pr o j e c t Or d e r After integration model is active networks are transferred from ERP to APO After scheduling of project order in SAP APO scheduled dates are updated in dispatched dates in SAP R/3 network, status is set to DSEX (date scheduled in external system)

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Ro u g h -Cu t Pr o j e c t Pl a n n i n g i n SA P A PO Project Planning Level

Rough-cut planning (project order)

Resources

Pool capacities (machine group)

Capacity Reduction

Capacity Consumption through orders in production planning possible (project solution)

Production Planning Detailed planning (order routing) Specific capacities (machine) Capacity reduction through confirmation

“ b lo c k e d” p o o l c a pa c i t y f o r p ro j ec t , n o d i s pa t c h i n g o n s p ec i f i c c a pa c i t y

Note 713088 required

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Si m u l a t i v e Pr o j e c t Di s p a t c h i n g i n SA P A PO Ex a m p l e : Fi n d De l i v e r y Da t e f o r Cu s t o m e r Qu o t a t i o n Version 000 Active Version

Version 001 Simulation versions

Create Simulation Version

Simulative Project Dispatching and Capacity Levelling

Evaluate Alternatives to reduce Capacity Overload:  Work Overtime  Reduce duration

Note 730363 required

 External processing  Reschedule orders  Schedule finite

Choose Alternative determining feasible delivery date Copy to active Version ©


Engi nee ri ng: WBS BOM a nd WBS rout ing in SAP R/3  Copy WBS BOM from

existing material BOM / WBS BOM

Material PM-1000

Material PM-1000

Material BOM

Material Routing

PM-1000

Op. 10

 Edit/Add/Delete

Op. 20

components in WBS BOM

Op. 30

 Copy WBS routing from

existing material routing / WBS routing  Engineer and insert new

assemblies for specific assembly

Material PM-1000 WBS-Element P-5000-01

Material PM-1000 WBS-Element P-5000-01

WBS BOM

WBS Routing

PM-1000

Op. 10

Op. 20

Op. 30

©


Tra ns fer of WBS BOM/rou t ing t o SAP APO Foc us PDS Transaction: CURTO_CREATE_FOCUS Transfer WBS BOM and WBS Routing to SAP APO Focus PDS (Production Data Structure) Transfer needs to be triggered manually Note 711106 required to transfer WBS routing together with WBS BOM without needing a new production version in APO

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Re l e a s e A s s e m b l i e s f o r Pr o d u c t i o n a n d Pr o c u r e m e n t Engineering in SAP ERP

Project Structure in SAP ERP

Product Structure in WBS BOM (Project specific)

Controlling

Schedule Transfer Material Components

Transfer Network to SAP APO Project Order  Production Planning and

Scheduling for Material Components

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En g i n e e r -t o -Or d e r – Pr o j e c t M a n u f a c t u r i n g – Se n s e & Re s p o n d A pp r o a c h f o r A d a p t i v e M a n u fa c t u r i n g Project Planning

Advance Procurement

Engineering


Production Planning and Optimization Run



©



Monitor Alerts on Projects, Main Assemblies

Se n s e & Respond Manufacturing & Procurement Execution – Changes, Exceptions


Interactive Scheduling to reduce late orders and capacity overload

Simulate and compare alternative solutions, execute decision


Pr o d u c t i o n Pl a n n i n g w i t h Op t i m i za t i o n a n d B a c k l o g Re s o l u t i o n Project Planning

Advance Procurement

Engineering



Pr o d uc t i o n Pl a n ni n g w i t h Op t i m i za t i o n a n d B a c k l o g Re s o l u t i o n  Material requirements planning batch run for

project order components multi-level





Project Planning

Manufacturing

 Backlog resolution run considering capacity

constraints for stable sequence of orders in the current week  Optimization run considering capacity

constraints in the short term  Infinite optimization in the mid/long term

B u s i n e s s B e ne f i t s  Capacity feasible plan and stable sequence

of orders in current week  Capacity optimized plan in the short term  Infinite plan with least delay and orders with

buffers for flexibility in mid-term, where it is easy to shift/extend capacity ©


Procurement / Warehouse

Pr o d u c t i o n Pl a n n i n g w i t h Op t i m i za t i o n a n d B a c k l o g Re s ol u t i o n – B a t c h Ru n

Plan Version Simulation Versions Step Function 1

Material Requirements Planning (BOM Explosion)

2

Finite Backlog Resolution on bottleneck resources (current week)

3

Finite Optimization on bottleneck resources (short term)

4

Infinite Optimization (Bottom Up) in mid/long term

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M a t e r i a l Re q u i r e m e n t s Pl a n n i n g – B OM Ex p l o s i o n

Project Order 1 1 1

Assembly Order 30 20 20

Production Orders

1

10

1

10

1

10

1

10

Requisition/ Purchase Orders

1

10

1

Project specific Non project specific ©


External Procurement

M a t e r i a l Re q u i r e m e n t Pl a n n i n g w i t h Pr o j e c t s p e c i f i c B OM a n d Ro u t i n g Planning Run – Source Determination Requirement for Individual WBS/project segment Material PM-1000, WBS-El. P-5000-01

Focus Production Data Structure (PDS) – Project Specific Material PM-1000 WBS-El. P-5000-01

Material PM-1000 WBS-El. P-5000-01

WBS BOM

WBS Routing

PM-1000

Op. 10

1

Op. 20 Op. 30

Use Focus PDS when existing

Production Data Structure (PDS)

2 Otherwise use Material PDS

©


Material PM-1000

Material PM-1000

Material BOM

Material Routing

Optimization Project Planning

Advance Procurement

Engineering



Optimization  Genetic Algorithms / Constraint Propagation  Multi-Criteria Optimization -

Delay, Lead Time, Setup Time/Cost  Constraints –

Due Date, Activity/Order relations, Material availability, Capacity Availability, …  Finite optimization in the short term  Infinite optimization (bottom up) in the

mid/long term – planning with buffers to increase flexibility

B u s i n e s s B e ne f i t s  Feasible, capacity optimized plan in the

short term  Delivery date optimized infinite plan in the

mid/long term ©






Pr o d u c t i o n Sc h e d u l i n g Project Planning

Advance Procurement

Engineering




Monitor alerts on projects / main assemblies




Project Planning

 Pegging – automatic matching of demand and supply  Visualization of complete order context Manufacturing

 Alerts - Early warning system late orders, bottlenecks

Interactive scheduling to reduce late projects, orders  Filter on alerts in order context, sort late orders by delay Procurement / Warehouse

 Detect critical path for order context  Reduce buffers on critical path  Reduce duration of project order operations  Multi-level forwards/backwards scheduling

New in SCM 5.0

Interactive scheduling to reduce capacity overload  Evaluate resource utilization, filter on overload  Alternative work centers, sequences, production versions  Switch to external procurement, subcontracting  Work overtime, run additional shifts

Adaptiveness and Simulation  What-if simulation, compare alternatives

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Advance Procurement

Engineering








Project Planning





New in SCM 5.0



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T r a n s p a r e n c y , V i s u a l i za t i o n a n d Co o r d i n a t i o n o f t h e c o m p l e t e Su p p l y Ch a i n Networks

Customer Orders Order 4711 Robot & Control Cabinet

Bill-of-material project/order specific

Planned Orders

Supply Chain in SAP APO Project Planning

Routings

Production Capacities

Production Orders

Purchase Order / Requisition PO 4711 Shaft Drive

Vendors, Customers, Plants

©

Stock


D a V i t a s u E a x l c i z h a a t i n o g n e

Manufacturing

Procurement / Warehouse

T r a n s p a re n c y i n t h e Su p p l y Ch a i n t h r o u g h „ Pe g g i n g “ Transparency and Visualization of the complete Order Context  Integrated visualization of project planning and manufacturing  Automatic match of demand and supply down to non customer specific parts  Visualization of status and progress for project and production orders Procurement

Project Planning and Execution

Manufacturing Mechanical

Assembly Mechanical

Manufacturing Electrical

Assembly Electrical

Engineering

Shipping

Installation & Start-Up

Mechanical Manufacturing

Customer specific Non customer specific

Electrical Manufacturing

External Procurement In-House Assembly

©


T r a n s p ar e n c y t h r o u g h Pe g g i n g a n d A l e r t s i n Re a l -t i m e

Project Order 1 1

Delay 1

Assembly Order 1

30 20 20

Production Orders

20

10

1 (+10)

1

Excess 20 2 10

Purchase Orders ©

10


2 (-10) Shortage

2

T r a n s p a re n c y t h r o u g h Pe g g i n g a nd A l e r t s Visualization of disturbances on project / order level  Use of network alerts to aggregate disturbances to assembly / project level  Problems in the order structure can be visualized on project level


Procurement Manufacturing Mechanical

Assembly Mechanical


Assembly Electrical

Engineering

Problem in project order

Shipping



Problem in assembly Customer specific Non customer specific

Delay Electrical Manufacturing

External Procurement In-House Assembly

©


M o n i t o r Pr o j e c t s / M a i n A s s e m b l i e s w i t h De l a y Production Planner

Alert Alert monitor monitor –– projects projects // main main assemblies assemblies sorted sorted by by delay delay

Identify most c r i t i c a l p ro j ec t s / orders

©


M o n i t o r Pr o j e c t s / M a i n A s s e m b l i e s w i t h De l a y Production Planner

Alert Alert monitor monitor –– projects projects // main main assemblies assemblies sorted sorted by by delay delay

Identify most c r i t i c a l p ro j ec t s / orders

N a v i ga t e t o o r d e r p r o c e s s i n g fo r detailed analysis

©



Advance Procurement

Engineering








Project Planning





New in SCM 5.0



©


Ex a m i n e A l e r t s f o r Pr o j e c t Or d e r Production Planner

Enhanced in SCM 5.0

Project Project order order –– alerts alerts on on project project order, order, operations, operations, main main assemblies assemblies

Ov e r v i ew o n p r o b l em s i n p r o j e c t o r d e r fo r WB S e l e m e n t , operations, components

©


Ex a m i n e A l e r t s f o r Pr o j e c t Or d e r Production Planner

Project Project order order –– alerts alerts on on project project order, order, operations, operations, main main assemblies assemblies

Ov e r v i ew o n p r o b le m s i n project order

Alerts for assemblies in p r o j ec t o r d e r, s o r t e d b y de l a y

©


Or d e r Co n t e x t f o r Pr o j ec t – So r t e d b y De l a y Production Planner

New in SCM 5.0

Order Order context context for for project project order

So r t e d b y d e l a y t o identify most c r i t i c a l as s e m b l i e s in the structure

©


Or d e r Co n t e x t f o r Pr o j ec t – Fi l t e r b y a l e rt t y p e Production Planner


Fi l t e r o r d e r c o n t e x t b y al e rt types

©


New in SCM 5.0

Or d e r Co n t e x t f o r Pr o j ec t – Fi l t e r b y a l e rt t y p e Production Planner


Or d e r c o n t e x t w i t h fi l t e r – o nl y e r r o r a l e rt s

©


New in SCM 5.0

Or d e r Co n t e x t f o r Pr o j e c t – N a v i g a t e t o Pl a n n i n g B o a r d Production Planner

Order Order context context for for project project order N a v i ga t e t o p l a n ni n g board for order context

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Pl a n n i n g B o a r d – Or d e r Co n t e x t f o r Pr o j e c t Or d e r Production Planner

Operations s o r t e d b y p r o j ec t a n d d at e

©


Detailed Detailed Scheduling Scheduling Planning Planning Board Board

Fi l t e r e d t o t h e a c t i v i t i e s i n t h e o r de r c o n t e x t o f t h e p r oj e c t : • Mark project order • Button single/multi-level up/down • Button Invert selection • Button Hide selection  Filter on order context of the project

Pl a n ni n g B o ar d – Cr i t i c a l Pa t h H e u r is t i c Production Planner

New in SCM 5.0

Detailed Detailed Scheduling Scheduling Planning Planning Board Board Determine crit ical path (heuristic)

©


Pl a n ni n g B o ar d – Cr i t i c a l Pa t h H e u r is t i c Production Planner

New in SCM 5.0


Cr i t i c a l p a t h i s highlighted (l i s t d i s p l a y also possible)

©


Pl a n n i n g B o a r d – Re d u c e p l a n n i n g -r e l a t e d M i n i m u m I n t e r v a l s (B u f f e r s ) Production Planner

New in SCM 5.0


Ca l l m a i n t e n a nc e o f planning related m i n i m u m i n t e r va l s (buffers)

©



New in SCM 5.0

Maintenance Maintenance of-planning of-planning related related minimum minimum intervals intervals

Re d u c e m i n i m u m i n t e r v al b e t w e e n o r d e rs o r be t w e e n o p e r at i o n s m a n u a l l y

Ca l l m a s s maintenance

©



More c omplex logic for m a s s m a i nt e n a nc e p o s s i b l e b y B A DI

©


New in SCM 5.0

Maintenance Maintenance of of planning planning related related minimum minimum intervals intervals M a s s m a i n t e n a nc e t o reduce or increase by absolute value, %, s e t t o f i x e d v a l ue , s e t t o p r o c e s s -r e l a t e d m i n i m u m i n t e r v a l (+ x % )


New in SCM 5.0

Maintenance Maintenance of of planning planning related related minimum minimum intervals intervals

Ex a m p l e : A l l p l a n n i n g r e l a t e d i nt e r v a ls b et w e e n orders and operations on t h e c r i t i c a l p at h w e re r e d u c e d t o t h e pr o c e s s related value t o reduce o v e r al l l e a d t i m e

©


Pl a n n i n g B o a r d – M u l t i -l e v e l b a c k w a r d s Sc h e d u l i n g H e u ri s t i c (i n f i n i t e ) Production Planner

New in SCM 5.0


Re s c h e d u l e o r d e r c o n t e x t m u l t i -l e v e l backwards (heuristic)

©


Pl a n n i n g B o a r d – M u l t i -l e v e l b a c k w a r d s Sc h e d u l i n g H e u ri s t i c (i n f i n i t e ) Production Planner

New in SCM 5.0


N o m o r e pr o bl e m w i t h o r d e rs i n t h e p a s t o n p r e v io u s l y c r i t i c a l path De t e c t n e w crit ical path

©


Pl a n n i n g b o a r d – Re d u c e p l a n n i n g -r e l a t e d M i n i m u m I n t e r v a l s (B u f f e r s ) Production Planner

New in SCM 5.0


New critic al path

Ca l l m a i n t e n a nc e o f p l a n ne d m i n i m u m i n t e r v a l s (b u f f e r s )

©


Pl a n n i n g b o a r d – Re d u c e p l a n n i n g -r e l a t e d M i n i m u m I n t e r v a l s (B u f f e r s ) Production Planner

New in SCM 5.0


Ex a m p l e : N o f ur t h e r reduc t ion possible, all planning-related v a l u es w e r e a l r e ad y reduced to processr e l a t e d v a l u es

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Pl a n n i n g B oa r d – M u l t i -l e v e l f o rw a r d s Sc h e d u l i n g H e u ri s t i c (i n f i n i t e ) Production Planner

New in SCM 5.0


Re s c h e d u l e o r d e r c o n t e x t m u l t i -l e v e l f o rw a r ds t o d e t e r m i n e n ew r e a l i st i c e n d d at e (heuristic)

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Pl a n n i n g B oa r d – M u l t i -l e v e l f o rw a r d s Sc h e d u l i n g H e u ri s t i c (i n f i n i t e ) Production Planner

New in SCM 5.0


N e w r e al i st i c e n d da t e for assembly determined by forw ard scheduling

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Advance Procurement

Engineering








Project Planning





New in SCM 5.0



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I n t e r a c t i v e Sc h e d u l i n g t o r e du c e Ca p a c i t y Ov e r l o a d Consideration of Capacity Constraints  Display capacity utilization  Detect capacity overload situations  Consider capacity constraints in interactive scheduling Procurement


Manufacturing Mechanical

Assembly Mechanical


Assembly Electrical


Shipping

Engineering

Manufacturing

Capacity Load

t

t

t

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Engineering

Lathe working

Assembly

Wh a t -i f Si m u l a t i o n o f A l t e r n a t i v e s t o r e d u c e Ca p a c i t y Overload Goal: Reduce Capacity Overload or Delay  Simulation of different planning alternatives – no changes to active planning version  Compare different alternatives  Copy chosen alternative to active planning version


A l t e r n a t i v e Wo r k C e n t e r / Ex c e s s Wo r k Alternative Pr o d u c t i o n V e r s i o n Ex t e r n a l Pr o c u r e m e n t / Subcontracting St o c k T r a n sf e r

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M a nu f a c t u r i ng Ex e c u t i o n Project Planning

Advance Procurement

Engineering




Cl o s e t h e l o o p b et w e e n t h e f ac t o r y a nd t h e e n t e r p r i s e

M a n u fa c t u r i n g i nt e g r a t i o n  Leverages SAP NetWeaver to integrate manufacturing on the shop floor with enterprise and supply chain business processes

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Manufacturing Intelligence Dashboards

M a n u fa c t u r i n g i n t e l l i g e n c e d a s h bo a r d s  Role-based, configurable, dashboards deliver decision support to production personnel M a n u fa c t u r i n g o p e r a t i o n s  Manufacturing planning, execution, quality, maintenance, and environment, health, and safety processes


SA P SCM

SA P ERP

M ES

XI SAP NETWEAVER A u t o m a t i o n L a y er

M a nu f a c t u r i ng Ex e c u t i o n Project Planning

Advance Procurement

Engineering







Re s o u rc e B r e ak d o w n & Re s o lu t i o n Manufacturing Intelligence Dashboards

 Work center breakdown on shop floor  The MES System sends an alert to SAP

ERP and updates the work center status  Production Planner sees the alert on his

dashboard  He drills down into the alert to view

the machines operating status – on the MES integrated into the dashboard

SA P SCM

SA P ERP

M ES

 He invokes his planning and scheduling

solution in SAP SCM and finds alternative capacity

B u s i n e s s B e n e fi t s  “Real-word awareness” actively

communicated via dashboards and alerts allowing to respond quickly and resolve the exception ©


XI SAP NETWEAVER A u t o m a t i o n L a y er

M T O /ET O M a n u f a c t u r i n g En a b l e d b y S A P N e t We a v e r Examples Sales Order Processing

Engineering

Production Planning & Scheduling


M a n u fa c t u r i n g A n a l yt i c s e.g. capacity utilization and equipment efficiency reporting for mid- and short term decision support SA P N e t We a v e r – B u s i n es s I n t e l l i g e n c e enables to integrate and analyze relevant and timely information

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Shipping

Assembly & Start-Up

Billing

M a n u f a c t u r i n g Da s h b o a r d s Decision support for plant manager, production supervisor, quality inspector, including partner applications SA P N e t We a v e r – En t e r p r i s e Po r t a l role based web access to applications in different systems including partners

M a n u fa c t u r i n g I nt e g r a t i o n integrates manufacturing documents from the shop floor through partner systems to the ERP system SA P N e t We a v e r – Ex c h a n ge I n fr a s t r u c t u r e technology basis for the integration

M T O /ET O M a n u f a c t u r i n g En a b l e d b y S A P N e t We a v e r Examples Sales Order Processing

Engineering

Production Planning & Scheduling


Or d e r /Pr o j e c t A n a l y t i c s provides information on past delivery performance and order confirmation status SA P N e t We a v e r – B u s i n es s I n t e l l i g e n c e enables to integrate and analyze relevant and timely information

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Shipping

Assembly & Start-Up

Billing

Wa r e h o u s i n g & R FI D automates the logistics process flow and improves visibility SA P N e t We a v e r – M u l t i -Ch a n n e l A c c e s s Auto-ID Infrastructure as the technology basis

SA P A na ly t i c s - Ex a m p le Ca p ac i t y U t i l iza t i o n

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T a n g i b le B e n ef i t s o f Ad v a n c e d M a n u f a c t u r i n g Planning Tangible Benefits*

Enablers

Revenue  Increased sales by better on-time

Better customer service through on-time-delivery

delivery  Increased sales by shorter time-to-

market for customer specific machinery

Reduced delivery lead times through better capacity utilization and reduced time buffers

Operating cost  Reduced costs for production planning

Less disturbances and short-term corrective action

Working capital  Reduction in inventory levels

Feasible scheduling and capacity planning

 Improved capacity utilization

Improved planning, less disturbances and changes in manufacturing

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B e n e f i t s o f A d v a n c e d M a n uf a c t u r i n g Pl a n n i n g Cu s t o m e r Ex p e r i e n c e s Benefits at Leybold Vaccum*

% impact

Revenue  Better delivery punctuality

+9,1%

 Reduced average lead time

-15%

Operating cost  Reduced backlogged production orders

-68%

 Reduced Express Costs

-27%

Working capital Reduction in inventory level

3.1%

Benefits at Ortlinghaus*

% impact

Operating cost  Expected increased Machine Utilization

* Source: Success Stories and Customer Presentations of Leybold Vacuum and Ortlinghaus ©


+5%-10%

St r a t e g i c B e ne f i t s o f A d v a n c e d M a n uf a c t u r i ng Planning  Reduced operating costs and working capital by using

advanced planning and scheduling  Better transparency, coordination and simulation for

improved decision support  Differentiation and improved customer loyalty by higher

service levels, better on-time delivery and reduced delivery lead times

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Su c c e s s f u l C u s t o m e r s U s i n g m y SA P SCM f o r A d v a n c e d M a n u f a c t u r i n g Pl a n n i n g (Ex a m p l e s )

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Project Manufacturing, Demand Planning Multi-level ATP

Live Pre-Solution

Project Manufacturing

Live Pre-Solution

Project Manufacturing

In Implementation Presentation (D) Quote in SAP Info SCM 4.0/4.1

Presentation (D) Press Release

Projects Manufacturing Live in New Product Development Pre-Solution

Success Story

MTO Manufacturing Order BOM in Implement.

Live SCM 4.1 in impl.

Presentation (D) Success Story planned

MTO Manufacturing Variant Configuration

Live

Success Story (D), Presentation (E, D) Webcast E / D

Demand Planning (DP/SNP) Production Planning

Live

Success Story (D), Presentation, Webcast E / D SAP Info Article E / D

Demand Planning (DP/SNP) Available-to-Promise

Live

Success Slide Case Study E / D

Demand Planning Available-to-Promise (ATP)

Live

Success Slide


M a k e -t -t o -O -O r d e r & P r o j ec e c t M a n uf u f a c t u r i ng n g – De m a g Project Objective / Challenges  Assemble-to-order scenario with

multiple product variants  Short assembly lead times requires demand

forecasting for components and ATP check on components  In parallel project manufacturing scenario with

customer specific engineering and long lead times

Implementation Highlights  Demand forecasting on components  Multi-level ATP check against components  Advanced Manufacturing Planning for

Assemble-to-OrderAssemble-to-Order- and Project Manufacturing

Advantages  Service level > 95%  Constant, high capacity utilization  Fast reaction by interactive re-scheduling  Low TCO, hardware savings

Components  SAP SCM (APO), SAP R/3 ©


S u c c e s s f u l C u s t o m e r s u s i n g m y SA SA P SC M A d v a n c e d P la l a n n i n g & O p t i m i za z a t i o n (A ( A PO PO) - p a r t i a l l i s t

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A d v a n c e d Pl a n n i n g f o r M T O a n d ET O M a n u f ac t u r in g - Su m m a r y

Pr o j e c t

I m p r o v e m e n t s i n SCM 5 .0  New approach for mixed finite/infinite scheduling for

MTO and ETO manufacturing  Stable, feasible plan in the short term (batch run)  Stable

forwards heuristic in current week  Finite Optimization in short term  Infinite Optimization in mid/long term  Improved interactive scheduling for complex structures  Critical

Path heuristic (infinite)  Reduction of buffers between operations and orders  Multi-level backward/forward heuristics (infinite)  Further improvements  Earliest

and latest dates calculation for orders  Selection in planning board: single/multi level up/down, invert selection and hide to filter on order context  Sort by delay or other fields in order context  Filter in order context for different alert types

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Questions?

T h an k y o u fo r y ou r a t t e n t i o n .

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Engineer to Order

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