1. SAP APO Overview
Vijay Job,SCM Lead Consultant

2. APO Overview Contents Supply Chain Management
Why SCM over and above ERP
Advantages of APO
APO Architecture
APO Components
What is live Cache
Data Mart Configuration
InfoObjects
Data Storage in APO
Planning Architecture
Master Planning Object Structure

3. Supply Chain Overview

4. Supply Chain Management
Coined by consultant Keith Oliver, of strategy consulting firm Booz Allen Hamilton in 1982.
Supply chain management (SCM) is the process of - planning, implementing and controlling the operations of the supply chain with the purpose to satisfy customer requirements as efficiently as possible.
Begins and ends with the customer.
SCM spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point-of-origin to point-of-consumption.
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5. SCM defined
Supply chain management (SCM) is the process of planning, implementing, and controlling the operations of the supply chain with the purpose to satisfy customer requirements as efficiently as possible.
Supply Chain Management encompasses the planning and management of all activities involved in sourcing, procurement, conversion, and logistics management activities. It includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers.
Supply Chain Management integrates supply and demand management within and across companies.
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6. Reasons for Supply Chain Management
Innovation….Companies today are being forced to adapt to changes in the marketplace in order to preserve profitability
Changing consumer buying patterns
Increased number of SKUs
Evolving trade channel complexity
Polarization of markets
Shortened cycle times
Shift in balance of power
Changing brand loyalty / retailer exerting greater influence
Increased demand for value added programs
VMI / custom packs

7. Why Manage Your Supply Chain ?
Dramatically lower inventory levels and reduce working capital
Improved customer service
More accurate forecasting
Lower cost sourcing of finished goods and raw materials
Optimizing decisions in an increasingly complex business environment
Reduce manufacturing cycle time
Deliver reliability
Responsiveness/ flexibility

8. The SCM Goals are straightforward
Supply chain activities can be grouped into:
Strategic – Network optimization, partnerships, product design, IT infrastructure, Make or Buy decisions.
Tactical – Sourcing, production & inventory decisions, Transportation strategy, benchmarking with competition
Operational level – Daily production & distribution planning, master planning, production scheduling, forecasting and demand management.
Confidential © Copyright 2008 Wipro Ltd

9. Supply Chain Management

10. Advantages of apo
APO Advanced Planning and Optimization is the planning component within the mySAP SCM solution. APO is an acronym for advanced planner and optimizer. This is a large component of sap's new dimension products.
APO is an entire suite of supply chain planner applications that increase overall knowledge of the supply chain and provide forecasting, planning and optimization.
APO is not a standalone application and requires a backend erp system such as SAP R/3 for the execution. SAP R/3 communicate with APO using the Core interface Functionality (CIF) which supplies SAP APO with the master and the transaction data in the real time

11. Advantages of apo High performance using liveCache technology
Global server: integrates multiple OLTP systems
Collaborative planning via the internet
Simultaneous material and finite capacity requirements
planning
Cross-plant optimization of the resource load
Sequence and setup time optimization of orders
Transportation optimization with route planning
Evaluation and analysis of orders
Seamless integration between APO and R/3

12. Why APO - DP
First Demand Planning - Of course R/3 provides Demand Management and also Statistical Forecasting tools. However the architecture in APO-DP is totally different and based on characteristic value combinations with liveCache for very fast data access. This allows easy aggregation and disaggregation. Moreover once you create the CVCs they can be modified easily with the associates transaction data using Realignment. The macro functionality in DP provides quick and user-friendly computations on the transaction data. Moreover the Statistical Forecasting toolset in APO-DP is more comprehensive to that in R/3. Not sure if MLR is possible in R/3. Promotion planning and Life-cycle planning are some nice features in APO-DP.

13. Why APO - SNP
Supply Network Planning in APO can be mapped to DRP in R/3. But then APO offers planning cross-plant for a complete supply chain network. SNP in APO offers basic Heuristic-based planning (quite similar to R/3 DRP) along with advanced planning features like Optimization and Capable- to-Match (order-based planning for prioritized demand matching). Moreover Deployment and Transport Load Builder functionalities provides automatic planning in case of short supply followed by consolidation of deliveries according to transportation capacities.

14. Advantages of APO SNP
Simultaneous material planning and finite capacity planning of production, storage and transportation.
Planning of critical components that use bottleneck resources.
Cross plant optimization of resource utilization.
Prioritization of requirements and receipts .
Detailed distribution planning.
Collective conversion of stock transfer requisitions.
Decision support with What-If.
Optimizes plan in line with business goals
Seamless integration between APO and R/3

15. Why APO - PPDS
APO PPDS is very close to R/3 Production Planning functionalities and relies on the same set of master data transferred from R/3 to APO via CIF. However the multitude of Heuristics (both Production Planning and Scheduling) provides automation and gives more time to the Planners and Schedulers in focusing on more important tasks. The Detailed Scheduling functionality especially Planning Board in APO is a rich graphical and intuitive application for carrying out sequencing of activities. Likewise the Product Planning Table and Product Overview features of APO provides a cockpit view of the Production Plan and allows drilling down to exceptions.
Cross plant planning: Production locations are connected, Products und Assemblies planned together
Simultaneous material and capacity requirements planning
Multi level capacity requirements planning; bi-directional propagation of order changes.
Extensive detailed scheduling and optimization possibilities

16. Why APO - GATP Global multi-site real time ATP.
For production, ATP utilizes PP/DS functionality to check against the actual order network, thereby including all capacity constraints.
Applying rules-based ATP is the basis for checking for alternative products in alternative locations as well as for considering production across all product levels.
Integration with legacy system.

17. Supply Network Planning Application Link Enabling
APO Architecture
Demand
Planning
Production Planning
Detailed
Scheduling
Supply Network Planning
Available To Promise BW
SC Cockpit
APO
Solvers
liveCache
APO
Application Link Enabling
Model Generator, Mapping, Connectivity
OLTP
R/3
R/3
Legacy
OLTP
Non R\3
OLTP
Non R\3
OLTP

18. APO Components
Supply Chain Cockpit: A graphical tool for evaluating and controlling the supply chain.
Network Design: Strategic planning for analyzing, optimizing and reorganizing the supply chain.
Long-term sourcing, production and distribution decisions are supported here.
Demand Planning: Aggregrated and detailed Demand Planning with various forecasting techniques.
Supply Network Planning: Finite, cross-location, mid- to long-term production and procurement
planning. Deployment executes short-term replenishment planning.
Purchasing Workbench: Procurement planning. Is used in SNP and PP/DS.
Production Planning & Detailed Scheduling: Finite, detailed production planning. PP/DS uses
pegging and optimization techniques to generate feasible sequence and setup time optimized plans.
Transportation Planning/Vehicle Scheduling: Optimizes use of transportation methods and the
selection of carriers. Generates deliveries and transportation orders.
Global Available-to-Promise (ATP): Rules-based availability check with integration with
production planning and product allocation.

19. Supply Chain Planning at a Glance
R/3
APO
R/3
APO
LIS BW
Flexible Planning
Demand Planning
(DP)
Standard SOP
Sales
Global Available-to-
Promise (Global ATP)
Demand Management
Supply Network
Material Requirements
Planning (SNP)
Generally speaking, supply chain planning is divided into many steps, some of which can be executed by components in SAP R/3 and others, which can be executed in SAP APO. It is possible and advisable to integrate these two systems and use both together when planning. The SAP APO Core Interface (CIF) is used to integrate the systems.
Demand planning, where past sales figures are used to derive a future program of production, can be executed both within flexible planning in SAP R/3 (using standard Sales & Operations Planning [SOP]), or within Demand Planning (DP) in SAP APO.
Demand Management in its true sense takes place in SAP R/3. It is also possible, however, to derive planned independent requirements from SAP APO DP.
In principle, sales orders are created in SAP R/3. The ATP check of a sales order can take place globally in SAP APO (integration with PP/DS is also possible).
Cross-plant planning is possible using Supply Network Planning in SAP APO.
Material Requirements Planning can be executed in either SAP R/3 or SAP APO. While, in SAP R/3, capacity requirements planning is executed separately in a second step, in SAP APO PP/DS (Production Planning/Detailed Scheduling), quantities and capacities can be planned simultaneously.
Execution of production, in other words, the processing of manufacturing orders (production or process orders), takes place in the area of Supply Chain Manufacturing.
Planning (MRP)
Production Planning
Capacity
and Detailed
Requirements
Scheduling (PP/DS)
Planning
(CRP)
Transportation
Planning & Vehicle
Scheduling (TP/VS )
SC Manufacturing / Procurement

20. MySAP applications in SCM processes

23. APO Components Demand Planning (DP) Supply Network Planning (SNP)
The Demand Planning component is a toolkit of statistical and collaborative forecasting techniques that helps you create accurate forecasts and plans
Supply Network Planning (SNP)
Using the Supply Network Planning and Deployment component you can develop a model of your entire supply network and plan based on all its constraints
Production Planning / Detailed Scheduling (PP/DS)
This component can generate production plans and schedules that optimize resources

24. APO Components Global Available To Promise (GATP)
The Global Available To Promise component uses a rules based strategy to ensure you can deliver what you promise to your customers
Transportation Planning / Vehicle Scheduling (TP/VS)
This component helps you to select the optimum transportation route and schedules vehicle resources
Supply Chain Cockpit (SCC)
The Supply Chain Cockpit is a graphical instrument panel for modeling, navigating, and controlling all the links in the supply chain.

25. Demand Planning

26. Supply Network Planning

27. SNP Distribution Network

28. Global Available To Promise
Rules Based
Product Allocation
Material Substitution
Vendor Managed Inventory

29. What is liveCache ?

30. liveCache Technology

31. Data storage in SNP & DP Live cache Time series objects Live cache
Orders
Info Cube
Data Stored in Bucket with no reference to order
Storage method suitable for tactical planning
Usual method for saving current DP data
Data Stored with reference to the orders
Storage method suitable for operative planning
The data is stored in an Info cube
This storage method is suitable for data backups, old planning data and actual sales history
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32. Info Object within BW
Business evaluation objects are referred to as the Info objects in the BW
Info objects are divided into :-
- Characteristics
- Key figures
- Units
- Time Characteristics
Info objects have three basic functions
Component of an Info source, as a field of a structure
Formation of an Info cube by representing key figures and characteristics
Complete an info source with Master data and Hierarchies

33. Characteristics Planning objects are called as characteristics
Characteristics are discrete names
Standard characteristics are predefined in APO
Custom characteristics can be created

34. Key Figures
Data is represented as a numerical value either a quantity or monetary value (Forecast, Safety Stock, etc..)
Different data storage can be used to store key figure
Standard key figures are predefined in APO
Custom key figures can be created

35. Star Schema Properties
One business process is modeled at a time
Data storage optimized for reporting by “Star Schema”
Related Characteristics structured together in Dimensions
The Key Figures, KPI’s and other calculations form the Facts
This structure is the same for all Application Areas

36. Example: Sales Data Model Queries that can be addressed are:
Who did we sell to?
What did we sell?
Who sold it?
Sales quantity?
Who is our competitor?
When did we sell?
Sales comparison
Trends
Reasons for Rejection

37. Data Mart Configuration
Info Area
Info Cubes
Info Objects
Catalogs
Key Figures
Characteristics
Update Rules
Info Source
Metadata
Transfer Rules
Source System
R/3
Excel
Legacy BW

38. Data Staging in SAP OLTP
InfoCubes
Communication structure
Transfer Structure
Extract Source Structure
Transformation rules
Update Rules
APO Server
Staging Engine
OLTP System 2
InfoSource
OLTP System 1

39. Planning Architecture

40. Master Planning Object Structure
Contains plannable characteristics for one or more planning area
Specific characteristics are required for Supply Network Planning
Structure on which all other planning object structures are based.
Prerequisite for being able to create planning area

41. Master Planning Object Structure
Pre-defined InfoObject can automatically be added
Map existing InfoObjects to Planning Object Structure

42. Planning Area Central data structure
Groups together parameters that define the scope of planning activities
Determines where and how planning results are saved
Contains Characteristics and Key Figures
Maps where key figures for the planning area are stored (InfoCube, Orders in liveCache, Time Series in liveCache
Planning Areas can be relevant for DP and SNP at the same time

43. Planning Area Administration
Central point of control:
Planning Area configuration
Key Figure
Characteristic
Attribute
Master Planning Object Structure
Aggregate
Storage Buckets Profile
Planning Area

44. Thank You and Have a good day Vijay