Setup Lifecycle Planning - like Profile setup / Assignment

Life Cycle of any product consists of different phases i.e., Launch, Growth, Maturity, Decline and
Death. In SAP SCM APO Demand Planning, we can use phase in and phase out profiles to
represent the launch, growth, decline and death phases.

With the use of like profiles, demand forecast can be created for a new product using historical
data of a product or products whose demand behavior is similar to the new product.

Like profiles can also be used for products with short lifecycles or for products with insufficient
historical data.

Lifecycle Planning in SAP APO consists of two functions,

1. Like modeling
2. Phase In/Out modeling.
Each of these functions is available for forecasting both at detail level and aggregate level.

Like Modeling
Like Modeling is done by creating a Like Profile for forecasting new product by utilizing the
historical data of old products with similar sales behavior. It is ideal to use like profiles for new
products and products with short life cycle.

Like cycle planning can be set for specific characteristics. We need to specify the characteristics
to the planning area. The following restriction applies

1. We can work with maximum of 6 characteristics

2. We cannot use Compound Characteristics
3. We cannot use Characteristics Based Forecasting (CBF) Characteristics.

Creating Like Profile

Transaction code /SAPAPO/MSDP_FCST1
Advanced Planning and Optimization -> Demand Planning ->
Path
Environment -> Lifecycle Planning.

Step 1- When you execute the Transaction /SAPAPO/MSDP_FCST1. You will reach to the
Lifecycle Planning Screen.

Here, under the Setting for Lifecycle Planning

You need to select the Basic Settings Radio button.
Select the Planning Area ZDE_PA and click on Execute. To do the basic setting for the
Lifecycle

Step 2 Define Basic Setting for LifeCycle.

We can work with Maximum of 6 Characteristics. Here I have entered Product Characteristic
ZCDEPRODU for which like profiles needs to be maintained.
Click on Adopt.

After Clicking the Adopt button you will reach to the Main Lifecycle planning screen.
Step 3 - Define Like Profiles.
After Clicking on Like Profile you will reach to the Define like Profile Screen

1. Here you need to select the characteristic on which you want to create a like profile. But in the
Basic settings we had maintained only Product (ZCDEPRODU) so you can get here Product
characteristic only.

2. Define a Like Profile. Under like profile field. Eg ZDELP001 and give the description.

3. Under the like profile Definition Ref.Values Give the reference product, (Reference
product you are using this product profile as reference to the new product.)

4. Cilck on Save button, to save the profile. All saved profile are displayed in the next table.
5. Click on Adopt Values. After clicking this button you will reach to the main screen. With this you
have completed the creation of like profile.

Creating Phase in and Phase out

We define phase in and phase out profile to model the life cycle of Old and New Products.

If the phase out profile period is with in the history horizon specified in the master forecast profile.
the system adjust the corrected history. If the phase in profile period is with in the future horizon
specified in the master forecast profile, the system directly adjusts the Forecast Key Figure. We
must set the Lifecycle planning Active indicator in the Master Forecast profile

Phase-In profile
Using phase-in profile in Demand Planning, we can simulate the launch phase of any product life
cycle. A phase-in profile changes the demand history or demand forecast of a product by given
percentages during a specified period or periods.

In Demand Planning, we can also use like profile to generate forecast for a new product based on
existing product. In this kind of scenarios we can adjust the historical data of the like product
upwards to correct the downward trend in demand during the like products discontinuation
phase.

Step 1
Execute the transaction /SAPAPO/MSDP_FCST1- you will reach to the following screen.

After clicking on the Phase In/out button, you will reach to the Time Series Maintenance screen.

Step 2 Create Time Series Maintenance

1. Create the Time Series ID (Phase In) ZDEPH_IN_001 and Description.

2. Give the Phase in Start date and End date and the Period Indicotor
If we are launching a new product from 1st Aug, 2011 and that will end by 31st Dec, 2011 and the
period Indicator is M

3.Select the flag Before Start date, apply constant factor 0 (its not showing the above
screen shot.) you use a constant factor before the start date with a value of 0 in a phase-in
profile. You can also enter other values.
And After end date, apply constant factor 100%

4. For newly launching products it takes a ramp up time to reach the targeted sales. So we give
an increasing % values to attain the targeted sales by the phase in end date.
Here, Phase in Start date is 1st Aug, 2011 and End Date is 31st Dec, 2011. so there are 5 months
of time to reach the targeted (100%) sales.

5. Click on Save Time Series

6. Click on Adopt Values.

After clicking the Adopt button you will reach to the main screen. With this you have completed
the creating Phase in Profile.

Phase-Out profile
Using phase-out profile in Demand Planning. We can simulate the discontinuation phase of a
product life cycle. In phase-out profile, user can enter the Percentages to mimic the downward
sales curve of the product based on their judgment.

A phase-out profile changes the demand history or demand forecast of a product by given
percentages during a specified periods. If the time ranges lies within the historical time horizon,
the demand history is adjusted. If the time range lies within the future horizon, the demand
forecast is adjusted.

Step 1
Execute the transaction /SAPAPO/MSDP_FCST1- you will reach to the following screen.

After clicking on the Phase In/out button, you will reach to the Time Series Maintenance screen

Step 2 - Create Time Series Maintenance

1. Create the Time Series ID (Phase In) ZDEPH_OUT_001 and Description.

2. Give the Phase Out Start date and End date and the Period Indicotor
If we are Discontinuation of a old product from 1st Jan, 2012 and that will end by 31st May, 2012
and the period Indicator is M

3.Select the flag Before Start date, apply constant factor 100%
And After end date, apply constant factor 0% (its not showing the above screen shot) you
use a constant factor after the end date with a value of 0 in a phase-out profile. You can also
enter other values..

4. For Discontinuation products that products mimics downward sales curve. s. So we give a
decreasing % values to attain the targeted sales by the phase out end date.
Here, Phase-out Start date is 1st Jan, 2012 and End Date is 31st May, 2012. So there are 5
months of time to discontinue the product..

5. Click on Save Time Series

6. Click on Adopt Values.

After clicking the Adopt button you will reach to the main screen. With this you have completed
the creating Phase-Out Profile.
Lifecycle Assignments
Like profile, phase-in and phase-out profiles created earlier, can be assigned to the CVC
combination at aggregate level. So as statistical forecast run will consider the setting defined in
this table.

Dates maintained in this table will override the validity date of Phase in & Phase out profiles.
Once a product has become stable and accumulated its own history, manually demand planners
can delete the entry from this assignment table.

Step 1 Execute the transaction /SAPAPO/MSDP_FCST1- you will reach to the following screen

Here, under the Setting for Lifecycle Planning

You need to select the Assignment Radio button.
Select the Planning Area ZDE_PA and click on Execute. To reach Assignment table.

After clicking on the Execute button you will reach to the following screen

Here, Under the Profile assignment for Life Cycle.

I have taken a new product i.e CPK_2, for this product I have assigned a like profile ZDELP001
(which has a reference product i.e 500181)

And for this new product CPK_2 I have assigned a Phase In profile. ZDEPH_IN_001 and that is
start from 1st Aug, 2011 and End by 31st Dec, 2011.

When you execute the Statistical forecast. The forecast profile incorporates the lifecycle profile
and run the life cycle profile and phase-in profile for the product CPK_2

Here , I have taken an Old product 500181 for Phase out profile ZDEPH_OUT_001, and the
phase out is start from 1st Jan, 2012 and end by 31st May, 2012.

When you executes the Statistical forecast. The forecast profile incorporates the phase-out profile
(ZDEPH_OUT_001) for the product 500181.