ETOvsMTO.pdf

Harald VogelSolution Manager SAP for IM&C, SAP AG

Make-to-Order Manufacturing and Engineer-to-Order –Project ManufacturingEnhancements SCM 5.0

SAP for Industrial Machinery & Components

MTO/ETO Manufacturing OverviewMTO/ETO Manufacturing Issues & Pain PointsSAP Solution Overview & PositioningBenefit Areas, KPIs, & BenchmarkingCustomer Success StoriesSummary

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

Standard Productsno Product Variants

Multiple Product Variants

Mass-Customization

Customer specific Design/Engineering

MTS, MTO, ETO Manufacturing Models

Make-to-Stock Make-to-Order Engineer-to-Order

Mix of manufacturing models within a company are common


Market Trends and Industry Needs

Demand for product variety and shorter lead timesNeed to offer multiple product configurations, often also custom specific designHandle changing customer requirementsHighly automated and integrated MTO/ATO processes ETO processes where required with improved project planning

Margin pressure through globalization and increased competitionRequirement of automation for cost reductionAdvanced planning required to achieve high resource utilization

Outsourcing / off shore manufacturingIncreasingly complex supply networkNeed for integration of suppliers into supply network



Key Issues for MTO and ETO-Project Manufacturing

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

Expensive short-term corrective action

Frequent disturbances and changes result in long lead times for orders

Long lead times

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

Frequent delays in delivery causing penalty costs

ObservationsKey IssuesNo integrated view on sales orders, projects, production orders purchase orders and stock situation

Too low transparency in the supply chain

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

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

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

Weak coordination and integration of project planning, engineering and production


Why is Advanced Planning for MTO- and ETO - Project Manufacturing important for many industrial manufacturers

Most machinery manufacturers use the MTO and ETO 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, …

1597 IM&C Customers worldwide

The shortcomings of MRP II and changed business needs require advanced planning and scheduling capabilities

MTO and Project Manufacturing with SAP SCM provides the required improvements for machinery manufacturers

Importance of MTO and ETO-Project Manufacturing

1597 IM&CCustomers

307(15%)

236(11%)

1.477(74%)

APA

EMEAAME



Suppliers & Engineering Partners

Customers & Channels

Design Market & Sell Engineer Procure Manufacture Store & Move Service

Research & Development

Life-Cycle Data Management Sales & Marketing Marketing Management Channel Management

Supply Chain Planning

Manufacturing

Procurement Strategic / Global Sourcing Operational Procurement

Logistics & Distribution Warehouse Management

Transportation Management

Aftermarket Sales & Service

Warranty & Returns Management

Aftermarket Sales & Service

Service Operations Planning and Execution

Service Parts Management

Enterprise Management & Support Analytics Financials

Human Capital Management Enterprise Asset Management

Corporate Services

Supplier Collaboration

Solution Map: Industrial Machinery & Components

New Product Development & Introduction 1

Quote/Sales Cycle Management 2

Demand & Supply Planning 3

5

6

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

4

Service Operations Planning and Execution

Service Parts Management


Project Manufacturing for IM&C and A&D

Integrated project and production scheduling

Constraint-based project and production scheduling

Backlog-free scheduling in feasible plans

Interactive simulation of different planning scenarios

Alerts for early detection of bottlenecks

This scenario for machinery manufacturers integrates SAP ERP Project System (PS) with SAP Advanced Planning and Optimization (SAP APO)

Project ManufacturingSAP APO SAP ERP

Project Scheduling & Capacity Planning

ProjectStructuring

Engineering

Project Execution

Production & Procurement

Execution

Integrated project and materials planning

SAP ERP DP SNP GATP PP/DS TP/VS SNC ICH EM MM SD PP LESSAP SCM

Production Planningand Detailed Scheduling

Production Planningand Control

SAP NetWeaver


Make-to-Order Manufacturing for IM&C / Discrete

Integration of variant configuration and engineering with order specific bills-of-material between CRM, ERP and SCM

Determination of delivery date considering material and capacity constraints

Constraint based production planning and scheduling – feasible plans

This scenario for industrial machinery & components and discrete manufacturers supports sales, engineering and manufacturing for complex industrial products

SAP ERP DP SNP GATP PP/DS TP/VS SNC ICH EM MM SD PP LESSAP SCM

Production Planningand Detailed Scheduling

Production Planningand Control

SAP NetWeaver

Make-to-Order Manufacturing

SAP SCMSAP ERP

Production Planning & Scheduling

ComponentDemand Planning

Detail Configurationand Engineering -

Order BOM / Routing

Production & Procurement

Execution

Shipping & Assembly

SAP CRM / SAP ERP

Configuration and Sales Cycle

Management

OrderBilling

Sales & Distribution

Determination of Delivery Date


Make-to-Order & Project Manufacturing for IM&C / Discrete

Business ValueEnhanced 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

New Implementation Content / Packages for SCM 5.0New 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, requisitionsMulti-level scheduling with buffer timesReduction of buffer timesEarliest and latest dates in planned orders and production orders


ETO, MTO, MTS Manufacturing – mySAP ERP

Enhancements in mySAP ERP:Production supervisor dashboard

task list for release, processing and confirmation of orders on the shop floorKPI key figure monitor

Plant manager, maintenance technician, quality inspector dashboardsManufacturing analytics and performance managementImproved Mobile Asset ManagementShop-Floor Integration

ANSI/ISA S95 complianceManufacturing Partner ProgramxApp 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


SAP ERP SAP SCM - APO

FIN: WBS-Structure

P-3P-2

P

P-1

PLM: Mat. BOM

6000 Crane6100 Lifting Gear6200 Drive6210 Transmission 6220 Engine6229 Shaft

PLM: Materials

Task A

Task B

Task D

Task C

PLM: Network

6100 Lifting Gear 6200

Drive

Overview Objects and SAP Components

APO: PDS/PPM

6000 Crane6100 Lifting Gear6200 Drive6210 Engine6220 Transmission6229 Shaft

APO: Products

Task A

Task B

Task D

Task C

APO PP/DS: Project Order

6100 Lifting Gear 6200

Drive

PP: Order 6200 Drive 6220

Engine

MM/SRM: Requisition10: 6229 Shaft 1PC

MM-IV: Inventory

PlantStock

OrderStock

ProjectStock

APO PP/DS: Order6200 Drive 6220

Engine

PP/DS: Requisition10: 6229 Shaft 1PC

PP/DS: Inventory

PlantStock

OrderStock

ProjectStock

CIF

CIF

CIF

APO: Focus PDS (WBS)

PDS – Production Data Structure(formerly RTO)

PLM: WBS BOM

Order BOM also possible!

CIF


Project Planning – Project Structuring

Project Planning

AdvanceProcurement Engineering

Engineering Change

Management

Quality Assurance &

Control

ManufacturingExecution

Shipping,Assembly &

Start-Up

Production Planning &

Optimization

Production Scheduling

WBS structure

Networks structure

Jan Feb March Apr May June July


Project Planning – Project Structuring

Project Planning


Engineering Change

Management

Quality Assurance &

Control


Shipping,Assembly &

Start-Up


Optimization



Advanced Project Scheduling and Capacity Planning

Schedule infinite / finite Remove Backlog – Feasible PlansOptimization to reach global planning goals for all projectsSimulation to determine feasible project end date in quotation phasePlanning on pool capacities Alert for violation of project end date

Integration SAP ERP and SAP SCMTransfer SAP ERP network to SAP APO project orderTransfer scheduling results back

Advanced Project Scheduling & Capacity Planning

Project Planning


Engineering Change

Management

Quality Assurance &

Control


Shipping,Assembly &

Start-Up


Optimization



Integration of ERP PS network to APO Project Order

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


Integration of ERP PS network to APO Project Order

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)


Rough-Cut Project Planning in SAP APO

“blocked” pool capacity for project,

no dispatching on specific capacity

Project Planning Production PlanningLevel Rough-cut planning (project order) Detailed planning (order routing)

Resources Pool capacities (machine group) Specific capacities (machine)

CapacityReduction

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

Capacity reduction through confirmation

Note 713088required


Version 000Active Version

Simulative Project Dispatching in SAP APO –Example: Find Delivery Date for Customer Quotation

Version 001Simulation versions

Copy to active Version

Create SimulationVersion

Evaluate Alternatives to reduce Capacity Overload:

Work OvertimeReduce durationExternal processingReschedule orders

Schedule finite

Simulative Project Dispatching and Capacity Levelling

Choose Alternative determining feasible delivery date

Note 730363required


Engineering: WBS BOM and WBS routing in SAP R/3

Copy WBS BOM from existing material BOM / WBS BOM

Edit/Add/Delete components in WBS BOM

Copy WBS routing from existing material routing / WBS routing

Engineer and insert new assemblies for specific assembly

PM-1000

Material BOM

Op. 10

Op. 20

Op. 30

Material Routing

PM-1000

WBS BOM

Op. 10

Op. 20

Op. 30

WBS Routing

Material PM-1000 Material PM-1000

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

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


Transfer of WBS BOM/routing to SAP APO Focus 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


Project Structure in SAP ERP

Controlling

Schedule

Transfer Network to SAP APO Project Order

Production Planning and Scheduling for Material Components

Engineering in SAP ERP

Release Assemblies for Production and Procurement

Product Structurein WBS BOM

(Project specific)

MaterialComponents

Transfer


Engineer-to-Order – Project Manufacturing –Sense & Respond Approach for Adaptive Manufacturing

Sense & Respond

Interactive Scheduling to reduce late orders and

capacity overload

Manufacturing & Procurement Execution –

Changes, Exceptions

Production Planning and

Optimization Run

Monitor Alerts on Projects, Main Assemblies

Project Planning


Engineering Change

Management

Quality Assurance &

Control


Shipping,Assembly &

Start-Up


Optimization


Simulate and compare alternative solutions,

execute decision


Production Planning with Optimization and Backlog Resolution

Material requirements planning batch run for project order components multi-levelBacklog resolution run considering capacity constraints for stable sequence of orders in the current weekOptimization run considering capacity constraints in the short term Infinite optimization in the mid/long term

Business BenefitsCapacity feasible plan and stable sequence of orders in current weekCapacity optimized plan in the short termInfinite plan with least delay and orders with buffers for flexibility in mid-term, where it is easy to shift/extend capacity

Production Planning with Optimization and Backlog Resolution

Project Planning


Engineering Change

Management

Quality Assurance &

Control


Shipping,Assembly &

Start-Up


Optimization


Project Planning

Manufacturing

Procurement / Warehouse


Step Function

Production Planning with Optimization and Backlog Resolution – Batch Run

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

Plan VersionSimulation Versions


Material Requirements Planning – BOM Explosion

Assembly Order

Production Orders

Requisition/PurchaseOrders

Project Order

10

1

1

1

1

10

1

30

20

1

10

20

10 1

10

1

1

Project specific

Non project specificExternalProcurement


Material Requirement Planning with Project specific BOM and Routing

Planning Run – Source Determination

Requirement for Individual WBS/project segmentMaterial PM-1000, WBS-El. P-5000-01

Use Focus PDSwhen existing

1

Otherwise use Material PDS

2Material BOM Material Routing

Production Data Structure (PDS)

Focus Production Data Structure (PDS) –Project Specific

PM-1000WBS BOM

Op. 10

Op. 20

Op. 30

WBS Routing

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

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

Material PM-1000 Material PM-1000


Optimization

OptimizationGenetic Algorithms / Constraint PropagationMulti-Criteria Optimization -Delay, Lead Time, Setup Time/CostConstraints –Due Date, Activity/Order relations, Material availability, Capacity Availability, …

Finite optimization in the short termInfinite optimization (bottom up) in the mid/long term – planning with buffers to increase flexibility

Business BenefitsFeasible, capacity optimized plan in the short termDelivery date optimized infinite plan in the mid/long term

Project Planning


Engineering Change

Management

Quality Assurance &

Control


Shipping,Assembly &

Start-Up


Optimization




Project Planning


Engineering Change

Management

Quality Assurance &

Control


Shipping,Assembly &

Start-Up


Optimization


Monitor alerts on projects / main assembliesPegging – automatic matching of demand and supply Visualization of complete order context 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 Detect critical path for order contextReduce buffers on critical pathReduce duration of project order operationsMulti-level forwards/backwards scheduling

Interactive scheduling to reduce capacity overloadEvaluate resource utilization, filter on overloadAlternative work centers, sequences, production versionsSwitch to external procurement, subcontractingWork overtime, run additional shifts

Adaptiveness and SimulationWhat-if simulation, compare alternatives

Project Planning

Manufacturing


New inSCM 5.0



Project Planning


Engineering Change

Management

Quality Assurance &

Control


Shipping,Assembly &

Start-Up


Optimization






Project Planning

Manufacturing


New inSCM 5.0


Transparency, Visualization and Coordination of the complete Supply Chain

VisualizationD

ata Exchange

Routings

Bill-of-materialproject/order specific

Networks

Stock

Customer OrdersOrder 4711Robot & Control Cabinet

Production Orders

Planned Orders

Purchase Order / Requisition

PO 4711Shaft Drive

Project Planning

Manufacturing


Supply Chain in SAP APO

Vendors, Customers, Plants

Production Capacities


Transparency in the Supply Chain through „Pegging“

Engineering Shipping

Project Planning and Execution

Installation& Start-Up

Procurement

AssemblyMechanical

Assembly Electrical

ManufacturingMechanical

ManufacturingElectrical

Mechanical Manufacturing

Electrical Manufacturing

Transparency and Visualization of the complete Order ContextIntegrated visualization of project planning and manufacturingAutomatic match of demand and supply down to non customer specific partsVisualization of status and progress for project and production orders

Customerspecific

Non customerspecific

ExternalProcurement

In-HouseAssembly


Transparency through Pegging and Alerts in Real-time

Assembly Order

Production Orders

PurchaseOrders

Project Order

20

20

20 1

10

1

1

1

2

2

110

1

(+10)

(-10)

Excess

Delay

Shortage

30

20

210


Transparency through Pegging and Alerts




Procurement

AssemblyMechanical

Assembly Electrical




Electrical Manufacturing

Visualization of disturbances on project / order levelUse of network alerts to aggregate disturbances to assembly / project levelProblems in the order structure can be visualized on project level

Customerspecific

Non customerspecific

ExternalProcurement

In-HouseAssembly

Delay

Problem in project order

Problem in assembly


Monitor Projects / Main Assemblies with Delay

ProductionPlanner

Alert monitor – projects / main assemblies sorted by delay


Identify most critical projects /

orders


Monitor Projects / Main Assemblies with Delay

ProductionPlanner



Navigate to order processing for

detailed analysis

Identify most critical projects /

orders



Project Planning


Engineering Change

Management

Quality Assurance &

Control


Shipping,Assembly &

Start-Up


Optimization






Project Planning

Manufacturing


New inSCM 5.0


Examine Alerts for Project Order

ProductionPlanner

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


Overview on problems in

project order for WBS element,

operations, components

Enhancedin SCM 5.0


Overview on problems in

project order

Examine Alerts for Project Order

ProductionPlanner



Alerts for assemblies in project order,

sorted by delay


Order Context for Project – Sorted by Delay

ProductionPlanner Order context for project orderOrder context for project order

Sorted by delay to identify most

critical assemblies in the structure

New in SCM 5.0


Order Context for Project – Filter by alert type

ProductionPlanner

Filter order context by alert

types

Order context for project orderOrder context for project order

New in SCM 5.0


Order Context for Project – Filter by alert type

ProductionPlanner

Order context with filter – only

error alerts


New in SCM 5.0


Order Context for Project – Navigate to Planning Board

ProductionPlanner

Navigate to planning board for order

context



Planning Board – Order Context for Project Order

ProductionPlanner Detailed Scheduling Planning BoardDetailed Scheduling Planning Board

Operations sorted by project

and date

Filtered to the activities in the order context of the project:

•Mark project order•Button single/multi-level up/down•Button Invert selection•Button Hide selection

Filter on order context of the project


Planning Board – Critical Path Heuristic


Determine critical path (heuristic)

New in SCM 5.0


Planning Board – Critical Path Heuristic


Critical path is highlighted(list display

also possible)

New in SCM 5.0


Planning Board – Reduce planning-related Minimum Intervals (Buffers)


Call maintenance of planning related

minimum intervals (buffers)

New in SCM 5.0



ProductionPlanner Maintenance of-planning related

minimum intervalsMaintenance of-planning related

minimum intervals

Reduce minimum interval between

orders or between operations manually

Call mass maintenance

New in SCM 5.0



ProductionPlanner Maintenance of planning related

minimum intervalsMaintenance of planning related

minimum intervals

Mass maintenance to reduce or increase by

absolute value, %, set to fixed value,

set to process-related minimum interval (+ x%)

More complex logic for mass maintenance possible by BADI

New in SCM 5.0



ProductionPlanner Maintenance of planning related

minimum intervalsMaintenance of planning related

minimum intervals

Example: All planning related intervals between orders and operations on

the critical path were reduced to the process-related value to reduce

overall lead time

New in SCM 5.0


Planning Board – Multi-level backwards Scheduling Heuristic (infinite)


Reschedule order context multi-level

backwards (heuristic)

New in SCM 5.0


Planning Board – Multi-level backwards Scheduling Heuristic (infinite)


No more problem with orders in the past on

previously critical path

Detect new critical path

New in SCM 5.0


Planning board – Reduce planning-related Minimum Intervals (Buffers)


New critical path

Call maintenance of planned minimum intervals (buffers)

New in SCM 5.0


Planning board – Reduce planning-related Minimum Intervals (Buffers)


Example: No further reduction possible, all

planning-related values were already reduced to process-

related values

New in SCM 5.0


Planning Board – Multi-level forwards Scheduling Heuristic (infinite)


Reschedule order context multi-level

forwards to determine new

realistic end date (heuristic)

New in SCM 5.0


Planning Board – Multi-level forwards Scheduling Heuristic (infinite)


New realistic end date for assembly

determined by forward scheduling

New in SCM 5.0



Project Planning


Engineering Change

Management

Quality Assurance &

Control


Shipping,Assembly &

Start-Up


Optimization






Project Planning

Manufacturing


New inSCM 5.0


Interactive Scheduling to reduce Capacity Overload




Procurement

AssemblyMechanical

Assembly Electrical



Manufacturing

Consideration of Capacity ConstraintsDisplay capacity utilizationDetect capacity overload situationsConsider capacity constraints in interactive scheduling

t

t

t

Capacity Load

Engineering

Lathe working

Assembly


What-if Simulation of Alternatives to reduce Capacity Overload


Goal: Reduce Capacity Overload or Delay Simulation of different planning alternatives – no changes to active planning versionCompare different alternativesCopy chosen alternative to active planning version

Alternative Work Center / Excess Work

AlternativeProduction Version

External Procurement / Subcontracting

Stock Transfer


Manufacturing Execution

Project Planning


Engineering Change

Management

Quality Assurance &

Control


Shipping,Assembly &

Start-Up


Optimization


XI

SAPERP

SAP NETWEAVER

SAPSCM

Automation Layer

ManufacturingIntelligenceDashboards

MES

Manufacturing integrationLeverages SAP NetWeaver to integrate manufacturing on the shop floor with enterprise and supply chain business processes

Manufacturing operationsManufacturing planning, execution, quality, maintenance, and environment, health, and safety processes

Manufacturing intelligence dashboardsRole-based, configurable, dashboards deliver decision support to production personnel

Close the loop betweenthe factory and the enterprise


Manufacturing Execution

Project Planning


Engineering Change

Management

Quality Assurance &

Control


Shipping,Assembly &

Start-Up


Optimization


Resource Breakdown & ResolutionWork center breakdown on shop floorThe MES System sends an alert to SAP ERP and updates the work center status Production Planner sees the alert on his dashboardHe drills down into the alert to view the machines operating status –on the MES integrated into the dashboardHe invokes his planning and scheduling solution in SAP SCM and finds alternative capacity

Business Benefits“Real-word awareness” actively communicated via dashboards and alerts allowing to respond quickly and resolve the exception

XI

SAPERP

SAP NETWEAVER

SAPSCM

Automation Layer

ManufacturingIntelligenceDashboards

MES


MTO/ETO Manufacturing Enabled by SAP NetWeaver -Examples

Sales OrderProcessing Engineering


Engineering Change

Management

Quality Assurance &

Control Billing Manufacturing

Execution Shipping Assembly & Start-Up

Manufacturing Integrationintegrates manufacturing documents from the shop floor through partner systems to the ERP system SAP NetWeaver –Exchange Infrastructuretechnology basis for the integration

Manufacturing DashboardsDecision support for plant manager, production supervisor, quality inspector, including partner applications SAP NetWeaver –Enterprise Portalrole based web access to applications in different systems including partnersManufacturing Analytics

e.g. capacity utilization and equipment efficiency reporting for mid- and short term decision support SAP NetWeaver –Business Intelligenceenables to integrate and analyze relevant and timely information


MTO/ETO Manufacturing Enabled by SAP NetWeaver -Examples

Sales OrderProcessing Engineering


Engineering Change

Management

Quality Assurance &

Control Billing Manufacturing

Execution Shipping Assembly & Start-Up

Warehousing & RFIDautomates the logistics process flow and improves visibilitySAP NetWeaver –Multi-Channel AccessAuto-ID Infrastructure as the technology basis

Order/Project Analyticsprovides information on past delivery performance and order confirmation status SAP NetWeaver –Business Intelligenceenables to integrate and analyze relevant and timely information


SAP Analytics - Example Capacity Utilization



Tangible Benefits of Advanced Manufacturing Planning

Feasible scheduling and capacity planning

Improved planning, less disturbances and changes in manufacturing

Working capital

Reduction in inventory levels

Improved capacity utilization

Revenue

Less disturbances and short-term corrective actionReduced costs for production planning

Operating cost

Better customer service through on-time-delivery

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

Increased sales by better on-time delivery

Increased sales by shorter time-to-market for customer specific machinery

EnablersTangible Benefits*


Benefits of Advanced Manufacturing Planning –Customer Experiences

3.1% Reduction in inventory level

Working capital

Revenue

-68%

-27%

Reduced backlogged production orders

Reduced Express Costs

Operating cost

+9,1%

-15%

Better delivery punctuality

Reduced average lead time

% impactBenefits at Leybold Vaccum*

Operating cost+5%-10%Expected increased Machine Utilization

% impactBenefits at Ortlinghaus*

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


Strategic Benefits of Advanced Manufacturing Planning

Reduced operating costs and working capital by using advanced planning and schedulingBetter transparency, coordination and simulation for improved decision supportDifferentiation and improved customer loyalty by higher service levels, better on-time delivery and reduced delivery lead times



Successful Customers Using mySAP SCM for Advanced Manufacturing Planning (Examples)

Project Manufacturing,Demand PlanningMulti-level ATP

Project Manufacturing

Project Manufacturing

Projects Manufacturingin New Product Development

MTO Manufacturing Order BOM in Implement.

MTO ManufacturingVariant Configuration

Demand Planning (DP/SNP)Production Planning

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

Demand PlanningAvailable-to-Promise (ATP)

Live Pre-Solution

Live Pre-Solution

In Implementation SCM 4.0/4.1

Live Pre-Solution

Live SCM 4.1 in impl.

Live

Live

Live

Live

Presentation (D)

Press Release

Presentation (D)Quote in SAP Info

Success Story

Presentation (D)Success Story planned

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

Success Story (D), Presentation, Webcast E / DSAP Info Article E / DSuccess SlideCase Study E / D

Success Slide


Make-to-Order & Project Manufacturing – Demag

Project Objective / ChallengesAssemble-to-order scenario with multiple product variantsShort assembly lead times requires demand forecasting for components and ATP check on componentsIn parallel project manufacturing scenario with customer specific engineering and long lead times

Implementation HighlightsDemand forecasting on componentsMulti-level ATP check against componentsAdvanced Manufacturing Planning for Assemble-to-Order- and Project Manufacturing

Advantages Service level > 95%Constant, high capacity utilizationFast reaction by interactive re-schedulingLow TCO, hardware savings

ComponentsSAP SCM (APO), SAP R/3


Successful Customers using mySAP SCM Advanced Planning & Optimization (APO) - partial list



Advanced Planning for MTO and ETO – Project Manufacturing - Summary

Improvements in SCM 5.0New 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 weekFinite Optimization in short termInfinite Optimization in mid/long term

Improved interactive scheduling for complex structuresCritical Path heuristic (infinite)Reduction of buffers between operations and ordersMulti-level backward/forward heuristics (infinite)

Further improvementsEarliest and latest dates calculation for ordersSelection in planning board: single/multi level up/down, invert selection and hide to filter on order contextSort by delay or other fields in order contextFilter in order context for different alert types


Questions?

Thank you for your attention.


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ETOvsMTO.pdf

Documents

positioning benefit areas

party web pages

subcontracting work overtime

related minimum intervals

long lead times

run additional shifts

production versions switch

realistic end date