APO SNP Optimizer - Advanced Simulation

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EXPERIENCE YOU CAN TRUST INSIGHTS YOU CAN USE INNOVATION YOU CAN PROFIT FROM

Adaptable Customer Solution

Advanced Simulation

Dr. Mathias Göbelt

SAP Consulting

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Business Drivers and Challenges

Advanced Simulation Approach

Advanced Simulation in Detail

Value Proposition & Key Differentiators

Fact & Figures

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Business Drivers and Challenges

Advanced Simulation Approach

Advanced Simulation in Detail

Value Proposition & Key Differentiators

Fact & Figures

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Typical Customer Challenges

 a highly sophisticated supply chain with the need to

adjust to ever-changing market conditions

 the need to reliably deliver to customers with

diversified demands on a timely basis

 competition that demands you continuously

optimize your supply chain effectiveness

 limited forward visibility into the effects of supply

chain adjustments

Consider implementing a tool to simulate and compare the impacts

of changes to your supply chain.

SAP Advanced Simulation helps

customers facing…

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SAP AG 2006, Advanced Simulation / 5

Value to You

INCREASED CUSTOMER SATISFACTION

Increase your service level by having the right product in the right location at the right time

SOLID

DECISION MAKING

Make business decisions founded on a solid

understanding of your supply chain alternatives and improved forward visibility of their effects

OPTIMIZED

INVENTORY LEVEL Determine the best inventory level by considering _{different inventory strategies and demand scenarios} REDUCED

SUPPLY CHAIN DISRUPTIONS

Reduce disruptions to your supply chain based on comprehensive visibility of future requirements

Resulting in REDUCED OVERALL COST and an INCREASED SERVICE LEVEL for your customers

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Business Drivers and Challenges

Advanced Simulation Approach

Advanced Simulation in Detail

Value Proposition & Key Differentiators

Fact & Figures

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Advanced Simulation Solution Approach

Advanced Simulation enables you to simulate and store multiple

supply chain optimization scenarios and to analyze and compare

their results



Select the supply chain scenario you wish to

use as the basis for simulation



Create simulation scenarios for your supply

chain by changing elements such as your



Forecast and sales order demand



Safety stock requirements



Products, production plants/DCs or

resources



Supply Chain cost



Optimize each scenario to understand the

effects of the changes



Display and compare the optimized scenarios

as a basis for your business decisions

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Business Drivers and Challenges

Advanced Simulation Approach

Advanced Simulation in Detail

Value Proposition & Key Differentiators

Fact & Figures

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Business Drivers and Challenges

Advanced Simulation Approach

Advanced Simulation in Detail

Capabilities & Scenarios

Example: Typical Simulation Process

System Demo / Screen Cam

Value Proposition & Key Differentiators

Fact & Figures

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Advanced Simulation Capability Overview

Advanced Planning enables you to run and store multiple

simulation runs with varying master and transactional data

and to compare and analyze the results

 Simulation functionality includes creation, copy, modification,

deletion and mass-change of master and transaction data

Dependent data is in most cases automatically created, deleted or changed

No restrictions for master data simulation

 Simulation does not affect the active model or any other

simulation in progress

 Simulation can be run for the complete model or parts thereof

 Analysis and comparison of results in the SAP Business

Information Warehouse or APO BW

 Simulation does not cause additional LiveCache load

Simulation scenarios stored in database

 Advanced Simulation is based on Supply Network Planning

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Advanced Simulation Capability Overview (cont’d)

Snapshot

of master data and transaction data

Simulate:

Add, change or delete master data and/or

transaction data Simulate optimization run by considering the simulated changes Transfer to My SAP BW for what-if analysis

Activate the best plan by changing active

master data and transaction data according to the

simulation.

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Capabilities in Detail

Master Data Simulation Capabilities

 Add / copy / modify / delete functionality for

Locations (e.g. plants, DCs, customers)

 Location copy allows to copy all dependent data (e.g. products, resources, PDS/PPMs)

 Location deletion automatically removes all dependent data Products

 Product copy allow to copy dependent data (e.g. cost, safety stock requirements, demand)

 Product deletion automatically removes all dependent data Transportation lanes

 Transportation lane copy allows to copy assigned lane products

 Transportation lane deletion automatically removes all dependent data Resources (production, transportation, handling, storage)

 Resource copy copies resource calendars, capacity variants and profiles

 Resource deletion automatically removes all dependent data

Production Data Structures (PDS) / Production Process Models (PPM)

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Capabilities in Detail (cont’d)

Transactional / Time Series Data Simulation Capabilities

 Add / copy / modify / delete functionality for

Demand (e.g. forecast, sales orders)

Safety Stock / Safety days’ supply Procurement limits

Fixed Receipts

Mass Change Functionality for

 Products

 Transportation lanes

 Resources

 Production Data Structures / Production Process Models

 Demand

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Capabilities in Detail (cont’d)

Result Analysis / Comparison Functionality

 Result logs and tables in APO

Using enhanced SNP Optimization log transaction (SCM 4.1)

 KPI calculation in APO (SCM 5.0)

 Transfer of results to BW

 Comparison reports and KPI calculation in BW

Standard comparison reports can be enhanced by customer-specific reports and calculations

Tracking of Data Modification

 Change log captures all changes to master and transactional

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Business Scenario:

Sales and Operations Planning (S&OP)

Demand

Planning

Strategic

Planning

Supply

Planning

Management

Evaluation &

Analytics

Sales & Operations Planning

Supply &

Demand

Balancing

•Market planning •New product planning •Resource Planning •Quantitative Forecasting •Sales, Marketing Input •Demand Balancing •Capacity Planning •Inventory Planning •Procurement Planning •Logistics •KPI Measurement •Plan vs. Actual •Forecast error •Margin Management •Root Cause Analysis •Product Mix •Constraint Management •Allocation Demand to Supply

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S&OP: Strategic Planning

Strategic Planning Tasks

 Market Planning

 Resource Planning

 New Product Planning

Advanced Simulation support for Strategic Planning tasks

 Add / copy / delete locations (e.g. distribution centers and

plants)

 Add / copy / delete resources (and corresponding PPMs/PDS)

 Modify resource capacity

 Add / copy /delete products

 Modify demand

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S&OP: Supply Planning

Supply Planning Tasks

 Capacity Planning  Inventory Planning  Procurement Planning  Logistics Planning

Advanced Simulation support for Strategic Planning tasks

 Modify resource capacities & calendars  Set resources to finite or infinite capacity  Modify capacity utilization cost

 Modify safety stock / safety days’ supply

 Modify maximum stock levels

 Modify storage cost / safety stock penalty  Enable / disable external procurement

 Modify procurement costs and procurement limits  Add / modify means of transport

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S&OP: Supply and Demand Balancing

Supply and Demand Balancing Tasks

 Product Mix

 Constraint Management

 Allocation Demand to Supply

Advanced Simulation support for Strategic Planning tasks

 Add / copy / delete products

 Modify demand and safety stock

 Modify production and procurement costs

 Activate / deactivate capacity constraints

 Modify capacity constraints

 Add / modify / delete resources

 Modify demand

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S&OP: S&OP Meeting – Evaluation and Analysis

Evaluation and Analysis Tasks

 KPI Measurement

 Plan vs. Actual

 Forecast error

 Margin Management

 Root Cause Analysis

Advanced Simulation support for Evaluation and Analysis

tasks

 KPI Calculation for simulation scenarios

 Comparison reports

 Compare margin calculations across simulated scenarios

 Result logs and comparison reports

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Business Drivers and Challenges

Advanced Simulation Server Approach

Advanced Simulation Server in Detail

Capabilities & Scenarios

Example: Typical Simulation Process

System Demo / Screen Cam

Value Proposition & Key Differentiators

Fact & Figures

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Run SNP Optimization in active or simulation version to generate

reference data set

Logs generated after

standard optimization run

Advanced Simulation Process – Step 1

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Copy reference data set log to advanced simulation scenario

Select reference run and execute copy

Assign name and description to

simulation scenario

New scenario with 1:1 copy of reference input data

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Change master / transaction data to create required scenario

Any master/transaction data can be

• created and/or copied • modified

• deleted

Mass change option available

Advanced Simulation Process – Step 3

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Data

Option

Product

a) Create by copying reference product (with all dependent data) b) Delete location product or entire product (with all dependent data) c) Mass change of product attributes

d) Modification of product attributes

Location

a) Create location

b) Copy existing location (with all dependent data) c) Delete location (with all dependant data)

d) Modification of location attributes

PPM

a) Create PPM (with resource consumption and material flow data) b) Copy existing PPM (with all dependent data)

c) Delete PPM (with all dependent data) d) Mass change of PPM attributes

e) Modification of PPM attributes

Master Data Simulation Options

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Data

Option

Resource

a) Create a resource (production resource, storage resource, transportation resource and handling resource)

b) Copy resource (production and transportation resource) c) Delete resource (with all dependent data)

d) Modification of resource

Transportation

lane

a) Copy existing transportation lane (with all dependent data including lane products)

b) Delete lane product or entire transportation lane (with all dependent data)

c) Mass change of lane attributes

d) Modification of transportation lane attributes

Product

Interchangeability

a) Create product interchangeability rule b) Delete product interchangeability rule

Advanced Simulation Process – Step 3 – Details 2

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Data

Option

Demand

a) Create/Mass Create demand b) Delete demand

c) Mass change of demand

d) Modification of demand attributes

Location material

a) Delete location material data

b) Mass change of location material data c) Modification of location material attributes

Procurement limits

a) Create procurement data b) Delete procurement data

c) Modification of procurement data attributes

Transactional Data Simulation Options

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Master Data : Product

Delete Location product or the entire product

Copy product to particular location or to all locations

Product attributes like

Procurement cost, Safety stock, Penalty, etc can be changed Mass change allows to change attributes for range of Products which can be restricted using selection criteria

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Perform Advanced Optimization Simulation Run

Select modified scenario and run advanced simulation run

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Analyse advanced optimization results using optimization

result log display in APO

Advanced Simulation Process – Step 5

Additional Result Log Tables

• Product view • Capacity view

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Transfer advanced optimizer run to BW

Advanced Simulation Process – Step 6

Select advanced optimizer run and transfer to BW

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7: Compare selected advanced simulation runs in BW

 Scheduled transfer of selected advanced optimization runs possible

Avoid additional load on APO / BW servers during working hours

 Comparison reports for

Product view

Capacity view

8: Select most suitable scenario

9: Implement changes to actual master/transaction data

 Supported by change log which captures all changes

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Business Drivers and Challenges

Advanced Simulation Approach

Advanced Simulation in Detail

Capabilities & Scenarios

Example: Typical Simulation Process

System Demo / Screen Cam

Value Proposition & Key Differentiators

Fact & Figures

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Demo

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Business Drivers and Challenges

Advanced Simulation Approach

Advanced Simulation in Detail

Value Proposition & Key Differentiators

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Benefits of SAP Advanced Simulation

COMPREHENSIVE SIMULATION CAPABILITIES

Enables simulation for all master data objects,

including planning version- and model-independent data, and all transactional data

REDUCES

LIVECACHE LOAD Simulation scenarios stored in database, no _{additional LiveCache load}

‘AUTONOMOUS’

SIMULATION DATA Simulation data fully independent of active model _{data and other simulation data sets} ANALYSIS AND

COMPARISON OPTIONS

Analysis and comparison of results in APO, Business Information Warehouse or APO BW

BASED ON SNP OPTIMIZATION

SNP Optimization offers comprehensive functionality to generate feasible plans for a multitude of supply chain scenarios

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Success at Kimberly-Clark

“

With Advanced Simulation, we are able to easily simulate possible bottlenecks in our overall

logistics planning; allowing for quicker and more strategic decisions on potential investments, new or improved processes, and resource

alternatives.

SAP’s Advanced Simulation solution provided us with the right tools to easily compare alternate planning scenarios and choose the best solution.