1. APO…SNP & PPDS One Year Later
Steve Basar & Dianne Newton Schering-Plough

2. SPHCP

3. Schering-Plough Business Climate
Mass customization trends
Customer/promotion/security specific SKUs
Market/region specific assortment mix
Collaboration requirements
Need to work closely with suppliers
Ability to get quick response from co-packers/contractors
Increasing competition
Need fast response to changes in marketplace
Short product life-cycles
New products
Graphics changes

4. The SPHCP Supply Chain ~1,500 7-digit SKUs ~200 “Projects” per year
~80% volume to
~20 Customers
Customer
W/Hs & stores
~1,500 7-digit SKUs
Display
Copacker
ADC
6,800
SKU’s
Suppliers
Cleveland
Plants &
Contract Mfr.s
47%
Vendor
Managed
Rx: Kenilworth
Manati
Contract-Mfg:
6 major contractors
28%
25% DC
Memphis CC
Truck
Ship
~200 “Projects” per year

5. Overview APO Structure
Advance Planning Optimizer
Demand Planning
Customer
order
Deployment
Production
Planning and
Scheduling
Supply Network
Planning
Manufacturing
Execution
Inventory
Management

6. APO Master Data Review Assessment of Resources
Understanding of the required data elements
Should you automate?
If manual, when do you maintenance

7. APO SNP – Key Learnings Alerts and Alert Management Capacity Planning
Exporting Planning Books for Collaboration
Dependent Demand – Master Data
Subcontracting in APO
Other Tips

8. APO SNP Alerts Alert jobs run nightly Layouts Settings
Using weekly planning book/data view
DB alerts: Backlog, Target stock level shortfall
Layouts
Created unique layout for each alert
Settings
Using settings to expand alert horizon
Start near term and manage out
Acknowledge alerts as reviewed

9. APO SNP Alerts
Transaction /SAPAPO/AMON1

10. APO SNP Alerts
Can use percentages to prioritize alerts

11. APO SNP Alerts
Select Layout
Create Unique Layouts for each alert

12. APO SNP Alerts
Example of Backlog layout

13. APO SNP Alerts Use settings to expand alert horizon
Start near term and manage out

14. APO SNP – Capacity Planning
Level Capacity in Weekly Buckets
Review plan in APO
Export data for collaboration with Manufacturing
Use excel pivot tables
Problem: Units of Measure
Need base Unit of EA
Must run heuristics to see changes made in SNP

15. APO SNP Capacity Weekly Capacity in Hours
Leveling does not work on PP/DS orders

16. APO SNP - Collaboration
Collaboration: Export Planning Book to Excel
Review plan in APO, refine and save
Export using monthly data view
Edit file and send to supplier
Future: Collaboration on the internet
Need unique planning book/data view

17. APO SNP - Tips Dependent Demand Subcontracting Goods Receipt Time
All items must be APO planned
Subcontracting
Cumbersome process
Master data requirements
Goods Receipt Time
Impacts placement of SNP order in planning book
Order Quantities
Using pallet quantity from DC to Manufacturing plant
Improves visibility of backorders

18. APO PPDS Current Environment
Stable System Environment
Automatic PPM creation
Exception planning/scheduling through alerts
Shared Production Horizons with SNP
Batch Jobs
SNP conversion – nightly/weekly
Automatic planning run – nightly/weekly
Optimization – weekly

19. APO SNP to PPDS Integration
Master Data Setup
PPM Reconciliation between SNP & PPDS
Pegging
Order Placement between SNP & PPDS
Planning/Scheduling Horizon

20. Master Data Setup Symptom
A receipt does not cover a requirement, although the shelf life of the receipt finishes after the required minimum shelf life
Cause and preconditions
The error can occur if the product master is maintained as follows:
o The indicator "Planning with shelf life" has been selected.
o The required maximum lifetime < shelf life.
There are two parameter settings that need to be maintained.
If the shelf life flag is set then 9999 value should be used in the Req.Max.Sh.Life field. This allows pegging to occur for materials whose shelf life occurs within 9999 days.
If the shelf life flag is not selected then the Req.Max.Sh.Life should be left blank and the pegging for shelf will reference the Max late receipt time in the demand tab

21. Master Data Setup
For Materials included in optimization only. The rest stays with a value of zero LIFO
Pegging Strategy 1 First In First Out
Here the system uses the earliest receipt in the pegging interval to cover a requirement, that is, first the first receipt and then the second, and so on. With this strategy excess receipts only become available later
For all materials
The value of 10,000 had been entered in both the max early and max late receipts field. This will allow pegging to occur from the demand requirement date to a receipt forwards and backwards of that demand by 10,000 hours

22. Master Data Setup Pegging strategy for dynamic pegging
Using the pegging strategy you can determine in which time sequence the system should cover requirements for the product with dynamic pegging and which time sequence the system should use the product receipts in the pegging interval to cover requirement. Thus, the pegging strategy controls,
Which requirement the system should cover first
Which receipts the system should use first
If the shelf life flag is not selected then the Req.Max.Sh.Life should be left blank and the pegging for shelf will reference the Max late receipt time in the demand tab
For all materials
The value of 10,000 had been entered in both the max early and max late receipts field. This will allow pegging to occur from the demand requirement date to a receipt forwards and backwards of that demand by 10,000 hours.

23. Master Data Setup Reason 1:
To create SNP planned orders at the beginning of the time bucket during an SNP heuristics run, you must place an “X” in the availability date field.
Reason 2:
OSS Note Suggestion for the symptom: Requirements are not covered in time.
If you want to schedule the requirements within the periods defined by the calendar, you must specify the indicator Availability date = X ( availability date calculated from period duration and period factor) and a period factor.

24. Master Data Setup Period Factor for Determining the Availability Date
Definition
Factor that the system uses to calculate the availability date of a receipt element within a time period (bucket).
Use
The system determines the exact availability date of the receipt element within a bucket by adding a time interval (the result of multiplying the period factor by the bucket length) to the bucket start time. You can enter a factor between 0 and 1 where 0 represents the start of the bucket, 0.5 the middle of the bucket, and 1 the end. When calculating the availability date, the system takes into account all working days, meaning that it does not take into account days that are defined as non-working days in calendars.
In Supply Network Planning (heuristic), the system automatically sets the availability time within daily buckets to 12:00.
Dependencies
In the nearby Availability Date field, you must enter the value X, so that the value entered in the Period Factor field can be taken into consideration by the system. If you do not enter a value in the Availability Date field, the system uses the default value 0.5 for the period factor.

25. Type of Heuristics – SNP to PPDS
Daily View
Weekly View
Placement of SNP Orders

26. APO PPDS Optimization Multi-Mixed resources environment
Harder to optimize with multi-mixed
Different Master Data required for optimization to execute appropriately
Demand Tab
Pegging Strategy
Maximum Earliest/latest receipt
PPDS Tab
Offset Priority
SNP2 Tab
Other Data - Priority

27. APO PPDS Optimization Cont’d
Two entirely different optimizing environment
Suncare/OTC - Seasonal Business
Footcare - Deep BOMS with multiple co-dependencies
Required different optimizing setup criteria
Objective Function
Setup Costs
Delay Costs

28. APO PPDS Optimization Cont’d
Presently optimizing pilot work centers
Suncare
Two work centers – 1 Packaging line, 1 Compounding tank
Footcare
Seven work centers – 1 Packaging line, 6 WIP work centers

29. Summary Great strides in system stability during the last year
APO Improvement Project
Pilot Optimization Implemented
Next Steps
Complete Optimization for all work centers
Assessment of additional training needs
Cross Training
SNP Optimization
Upgrade to 4.0 APO

30. Thank you for attending!
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Session Code: 4804