The following are the newly designed process in APO in comparisons with R/3 :
1. Existing Processes in SAP R/3
Forecasting
- Forecasting enables companies to run statistical forecasting
model, aggregate and disaggregate forecasts, as well as the capability
to modify forecasting numbers manually.
Newly-Designed Processes
Demand Planning DP (SAP APO)
- Demand Planning adds to forecasting capabilities to
manage promotions, product introductions and phase outs, as well as the
impact o causal factors, like weather or macro economic data.
Additional forecasting techniques are available like
Linear Regression (Causal Factors), Croston Method (Slow Moving Items)
and Weighted Average
Consensus based Planning enables Marketing, Sales, Logistics
to share and collaborate on their forecast and create a final consensus
forecast
Forecasting based on characteristics instead of SKU for
configured products.
2. Existing Processes in SAP R/3
Sales & Operations Planning
- SOP allows to consolidate forecast based on supply
capabilities, through reporting and interactive planning capabilities.
Newly-Designed Processes
Supply Network Planning SNP (SAP APO)
- Demand and Supply Plans can be intelligently balanced
leveraging cost or/and revenue based optimization techniques.
Trade-off Analysis to determine product-mix, inventory
build ups for seasonal demand, capacity allocations for alternative manufacturing
locations etc.
Web based information sharing and collaborative interactive
planning environment.
- KPI Reporting.
3. Existing Processes in SAP R/3
Distribution Requirements Planning
- Traditional DRP logic allows to calculate requirements
for a single stage distribution network.
Newly-Designed Processes
Supply Network Planning SNP (SAP APO)
- Supply Network Heuristic enables to run DRP across
the complete supply network generating requirements (production and purchasing)
at each node.
The planner can easily navigate through the network to
view and modify demands and supply’s in their different categories.
Demand Planning Units and Stock Keeping Units mapping
can be done on quotations.
4. Existing Processes in SAP R/3
Not available
Newly-Designed Processes
Deployment SNP (SAP APO)
- The ability to deploy products through the supply network
based on pull or push concepts. Different heuristics like fair share logics
are supported.
Transport Load Building allows to combine different products
to a single load, interactive, as well as via heuristic to create full
truck loads.
5. Existing Processes in SAP R/3
Master Planning
- Master Planning allows to plan production at an aggregated
level including rough cut capacity planning.
Newly-Designed Processes
Supply Network Planning SNP (SAP APO)
- Supply Network Planning allows to consider distribution,
production and transportation constraints concurrently.
In addition to a generic SNP Optimizer based on Linear
Programming and capacity leveling algorithms, industry specific optimization
is available for
- Campaign Optimization
- Capable to Match
6. Existing Processes in SAP R/3
Material Requirements Planning
- MRP calculates material requirements based on BOM structures,
lead times, lot sizes etc.
Capacity Planning
- CRP in a second step looks at the capacity requirements
Newly-Designed Processes
Production Planning PP/DS (SAP APO)
- Production Planning allows to consider material and
capacity constraints simultaneously to derive material, capacity requirements
and dynamic lead times. BOMs and lot sizing will be also considered.
- Pegging relationships between customer order, production
orders, purchase orders will be stored and enable bi-directional propagation
if changes occur on the demand or supply side
7. Existing Processes in SAP R/3
Transportation Planning
- Manual Planning of shipments, including predefined
master routes.
Newly-Designed Processes
Transportation Planning TP/VS (SAP APO)
- Transportation Planning enables companies to determine
the right shipment mode and route based on demand and supply situation,
considering transportation constraints and costs.
8. Existing Processes in SAP R/3
Shop Floor Scheduling and Assembly Processing
- Planning Table to view in a Gant Chart the schedule.
Heuristics like forward/backward scheduling (infinite)
- Manual scheduling
Newly-Designed Processes
Detailed Scheduling PP/DS (SAP APO)
- Finite and infinite scheduling, considering material,
capacity, time and market constraints.
Manual scheduling
- Scheduling optimization via optimization algorithms,
like
Genetic Algorithm
- Constraint based Propagation
