Characteristics Based Cross-Location Planning –

DP and CTM Enhancements

 Overview

„ Motivation for CBCL Planning

„ Increasing customization of products leads to increasing requirement of planning
with characteristics.

„ Globalization leads to planning across locations and visibility of the entire supply
network.

© SAP 2008 / Page 2

 Overview

„ Motivation for CBCL Planning

„ Increasing customization of products leads to increasing requirement of planning
with characteristics.

„ Globalization leads to planning across locations and visibility of the entire supply
network.

„ Objective
„ To enhance the cross location planning functionalities for the industries that are using
characteristics (e.g. Industries: Mill, Machinery & Components)
„ To enable the industries, using cross location planning, to use characteristics
(e.g. Industries: High Tech, Chemicals, Life Sciences)

© SAP 2008 / Page 3

 Release and Consumption of Forecasts for VC

Characteristics Based Planning with CTM

© SAP 2008 / Page 4

 Release of Forecasts With Configuration for VC

Demand Planning Sales Distribution Production

Sales Order Creation
Forecasting
Sales Order
with Rqmt. Class Det.

Forecast Release
Assignment of
Characteristic Values

Forecast Consumption ATP Check

Integrated Distribution & Production Planning

Distribution Planning Production Planning

Detailed Scheduling

Deployment Production Execution

Transport Load Building

Delivery Transport Execution

© SAP 2008 / Page 5

 Release and Consumption of Forecasts With
Configuration for VC

„ Objective
„ Enable the planner to release forecasts with their own configuration for the VC scheme
„ These released forecasts can be consumed by the sales orders subsequently in case
of identical configuration

„ Features
„ Check box enables the planner to release forecasts with configuration or not for VC
Schema (Class type: 300)

APO Customizing Integration Model Activation R/3

© SAP 2008 / Page 6

 Product Configuration Schema in APO

CDP VC Configuration on Product Level

APO
Customizing

CIF R/3
CDP CDP VC CDP

VC CDP VC VC

With APO Default Settings CDP VC Default for Configuration at APO

© SAP 2008 / Page 7

 Variant Configuration

„ Usage of Variant Configuration

„ Variant Configuration helps to manufacture complex products with large number of
components dependent on customer specification.
„ One configurable material (KMAT) can be used to cover all variants. The configuration
(Char-Value Combination) of the KMAT material will be determined during Sales Order
creation or Forecast Release.
„

© SAP 2008 / Page 8

 Configurable Product KMAT

Sales Configuration View

Configurable Product
Class Characteristic Colour Value RED
(KMAT)
Value
GREEN

Non Variant
Component A

BOM Characteristic Quality Value ABC

Non Variant
Components Component B

Variant Component
RED

Variant Component
Green

Variant Component
ABC

© SAP 2008 / Page 9

 Characteristics Based Forecasting Process

„ CBF Objective
„ To forecast products with different attributes, and manufacture them using modern
forecasting methods and production techniques
„ CBF Pre-Process Steps:
„ In R/3, create the characteristics, the class (optional) and a configurable material
„ Transfer the configurable material, the characteristics, the class and the plant from
R/3 to APO using APO-CIF.
„ In APO, create a master planning object structure for use in CBF.
„ In APO, create a planning area. Set up the key figures so that data is saved to
liveCache time series.
„ In APO, create and maintain CBF tables to contain the characteristics and/or
characteristic combinations of a product.
„ In APO, create a CBF profile for a product that contains the CBF-Table
„ In APO, create the DP master data by choosing Maintain characteristic values

© SAP 2008 / Page 10

 Characteristics Based Forecasting Process

„ CBF and Post-Processing:

„ Demand Planner triggers the forecast process:
„ KMAT Material (Class type: 300) and Characteristics level
„ Demand Planner initiates the Release of the forecasts with configuration to
liveCache for Planning.
„ Production planner receives the forecast
„ Production planner run the CTM/PPDS Heuristics
„ Planned Orders are created with configuration
„ Demand for Components generated
„ Production planner plans for the components

© SAP 2008 / Page 11

 Characteristics Based Forecasting

„ Forecasting done using the CBF (Characteristics Based Forecasting) technique

© SAP 2008 / Page 12

 Release of Forecasts With Configuration

„ Forecasts are released to liveCache

for planning (using transaction:
/SAPAPO/MC90)
„ Configurations are created according
to the values in the CBF profile for
the characteristics restricted by the
consumption group.
„ Requirement Strategy group chosen:
35 (Planning Without Final Assembly
For Configuration

ƒ Limitations:
Multi-level configuration is not
supported

© SAP 2008 / Page 13

 Forecasts With Configuration for VC

„ Released forecasts are available in a new planning segment –

“Characteristic Based Planning without Final Assembly”
– The segment can contain multiple configurations

© SAP 2008 / Page 14

 Planning for Forecasts With Configuration for
VC

– Forecasts in the segment can be planned with CTM and PP/DS planning run
– Stock transfer demands and dependent demands can also be created in this
segment
– Orders within this planning segment are not integrated with ERP

© SAP 2008 / Page 15

 Consumption of Forecasts With Configuration
for VC

Demand Planning Sales Distribution Production

Sales Order Creation
Forecasting
Sales Order
with Rqmt. Class Det.

Forecast Release
Assignment of
Characteristic Values

Forecast Consumption ATP Check

Integrated Distribution & Production Planning

Distribution Planning Production Planning

Detailed Scheduling

Deployment Production Execution

Transport Load Building

Delivery Transport Execution

© SAP 2008 / Page 16

 Consumption of Forecasts With Configuration
for VC

„ Consumption of the forecasts by the sales orders happen only for matching
configuration

„ Possibility to release back the orders to DP/CBF considering configuration

„ Filter for configuration available in Product View

© SAP 2008 / Page 17

 Release and Consumption of Forecasts for VC

Characteristics Based Planning with CTM

© SAP 2008 / Page 18

 Introduction

Shelf Life with CTM

CDP Scenario and Block Planning

Variant Configuration Scenario

Object Dependencies

© SAP 2008 / Page 19

 Introduction

„ Objective
„ The Multilevel Supply and Demand Matching component Capable-To-Match (CTM)
considers characteristics during planning.
„ PP/DS master data (PDS) is used for this purpose
„ CTM considers
– Shelf life
– Block planning for scheduling*
– Object dependencies for order generation
– Selection Conditions
– Procedures with/without reference characteristics
– Activity Valuation
– Variant tables

* For both CDP and VC configuration scheme

© SAP 2008 / Page 20

 Process Overview for
Characteristics Based Cross Location Planning

Demand Planning Sales Distribution Production

Sales Order Creation
Forecasting
Sales Order
with Rqmt. Class Det.

Forecast Release
Assignment of
Characteristic Values

Forecast Consumption ATP Check

Integrated Distribution & Production Planning

Distribution Planning Production Planning

Detailed Scheduling

Deployment Production Execution

Transport Load Building

Delivery Transport Execution

© SAP 2008 / Page 21

 Introduction

„ Fault Tolerant generation of CTM-PDS

– Inclusion of Configurable Products
– Consideration of object dependencies
– Linearization of parallel sequences
(in case of parallel operations, the one with longest duration is considered)
Op 1 Op 2 Op 3

Parallel
Parallel Op2
Op2

Op 1 Parallel
Parallel Op2
Op2 Op 3
„ Limitations
– Continuous I/O ignored
– Complex functions not supported in Obj. Dependency

* For both CDP and VC configuration scheme

© SAP 2008 / Page 22

 Introduction

Shelf Life with CTM

CDP Scenario and Block Planning

Variant Configuration Scenario

Object Dependencies

© SAP 2008 / Page 23

 Shelf Life Planning With CTM

Min. Shelf Life Max. Shelf Life

Demand
1. 2. 3.
Receipt

Maturation Time Max. Shelf Life

„ Maturation Time: Required period between production of the material and its use
„ Required Minimum Shelf Life: minimum shelf life a stock/receipt element must have to
cover a demand
„ Required Maximum Shelf Life: maximum shelf life a stock/receipt element must have to
cover a demand

Shelf Life restrictions:

1. Maturation Time of Supply before Due Date of Demand
2. Expiration of Supply after minimum required Shelf Life of Demand
3. Expiration of Supply before maximum required Shelf Life of Demand
© SAP 2008 / Page 24
 Shelf Life – Example 1

Min. Shelf Life Max. Shelf Life

Demand

Receipt

23.05
21.05. 25.05. 30.05.
Maturation Time Max. Shelf Life

Receipt cannot be used, maturation time after due date

© SAP 2008 / Page 25

 Shelf Life – Example 2

Min. Shelf Life Max. Shelf Life

Demand

Receipt

01.06
21.05. 25.05. 30.05.
Maturation Time Max. Shelf Life

Receipt cannot be used, expiration before minimum requested shelf life

© SAP 2008 / Page 26

 Shelf Life – Example 3

Min. Shelf Life Max. Shelf Life

Demand

Receipt

27.05.
21.05. 25.05. 30.05.
Maturation Time Max. Shelf Life

Receipt cannot be used, expiration before maximum requested shelf life

© SAP 2008 / Page 27

 Shelf Life – Example 4

Min. Shelf Life Max. Shelf Life

Demand

Receipt

27.05
21.05. 25.05. 30.05.
Maturation Time Max. Shelf Life

Receipt can be used for pegging

© SAP 2008 / Page 28

 Introduction

Shelf Life with CTM

CDP Scenario and Block Planning

Variant Configuration Scenario

Object Dependencies

© SAP 2008 / Page 29

 CDP Scenario and Block Planning

„ Block Planning with CTM

21.04. 01.05. 10.05 30.05

Block definition on resource

„ CTM Profile -> Strategies ->

Planning Strategies

© SAP 2008 / Page 30

 CDP Scenario and Block Planning

„ Block Planning with CTM (contd..)

Forecast- 07.05 (on time fulfillment)

Sales Order – 28.04. (late fulfillment)

Forecast – 02.05. (early fulfillment)

Forecast – 03.05. -> cannot be fulfilled

21.04. 01.05. 10.05 30.05

© SAP 2008 / Page 31

 Introduction

Shelf Life with CTM

CDP Scenario and Block Planning

Variant Configuration Scenario

Object Dependencies

© SAP 2008 / Page 32

 Variant Configuration (VC) Scenario

Forecast (C) – 07.05.

Sales Order (A) – 28.04.

Forecast (B) – 02.05.

Sales order (A) – 14.05.

Planned Planned Planned Planned

Order Order Order Order
(Green; A) (Blue; B) (Red; C) (Red; A)

‰ The planned orders have the same configuration as the corresponding sales
orders and forecasts

© SAP 2008 / Page 33

 Introduction

Shelf Life with CTM

CDP Scenario and Block Planning

Variant Configuration Scenario

Object Dependencies

© SAP 2008 / Page 34

 Object Dependencies in CTM

„ Select Conditions respected while CTM Planning

Configurable Product: ConfMat Select Conditions on Component Level

Component Blue if color = BLUE

Component Green if color = GREEN

Component Red if color = RED

Component
Common

© SAP 2008 / Page 35

 Object Dependencies- Select Conditions

„ Dependent demands are determined based on the Select Conditions

Sales Order (Blue; B) Forecast (Red; A) Forecast (Green; A)

Planned Planned Planned

Order Order Order
(Blue; B) (Red; A) (Green; C)
Dependent Demand: Dependent Demand: Dependent Demand:
Component Blue Component Red Component Green

Component Component Component

Common Common Common

© SAP 2008 / Page 36

 Object Dependencies - Procedures

„ Procedures on Component Level with reference characteristics respected in CTM

„ 2 pieces of Component Common if one item of configurable product with color

RED is ordered

Component
Common Qty = 2 if color is RED

„ 1 piece of Component Common for all other colors

© SAP 2008 / Page 37

 Object Dependencies - Procedures

Sales Order (Blue; B) Forecast (Red; A) Forecast (Green; A)

(quantity: 5) (quantity: 10) (quantity: 10)

Planned Planned Planned

Order (Blue; B) Order (Red; A) Order (Green; C)
(quantity: 5) (quantity: 10) (quantity: 10)
Dependent Demand: Dependent Demand: Dependent Demand:
Component Common Component Common Component Common
Qty = 5 Qty = 20 Qty = 10

„ The quantity at the component level will be changed according to the

reference characteristics maintained at the component level.

© SAP 2008 / Page 38

 Object Dependencies – Activity Valuation for
Block Planing

„ CTM respects Activity valuation for Block Planning

Procedure on Activity Level

„ Quality A -> Color = RED
„ Quality B or C -> Color = BLUE

Forecast (Red, A) – 07.05.

Sales Order (Yellow, B) – 28.04.
Forecast (Yellow, B) – 02.05.
Block definition on resource:

today 01.05. 10.05 30.05

© SAP 2008 / Page 39
 Object Dependencies – Activity Valuation for
Block Planing
Procedure on Activity Level
„ Quality A -> Color RED
„ Quality B or C -> Color BLUE

Block definition on resource:

today 01.05. 10.05 30.05

Forecast (Red, A) – 07.05.

Sales Order (Yellow, B) – 28.04.

Forecast (Yellow, B) – 02.05.

© SAP 2008 / Page 40

 Summary

„ Objective
„ While Planning, CTM considers
– shelf life
– block planning for scheduling
– object dependencies for order generation
– selection conditions,
– Procedures with/without reference characteristics
– Activity Valuation
– variant tables
„ Characteristics based CTM works with PP/DS PDS

© SAP 2008 / Page 41

 Copyright 2008 SAP AG
All rights reserved
No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed
without prior notice.
Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.
SAP, R/3, xApps, xApp, SAP NetWeaver, Duet, SAP Business ByDesign, ByDesign, PartnerEdge and other SAP products and services mentioned herein as well as their respective logos are
trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned and associated logos displayed
are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary.
The information in this document is proprietary to SAP. This document is a preliminary version and not subject to your license agreement or any other agreement with SAP. This document
contains only intended strategies, developments, and functionalities of the SAP® product and is not intended to be binding upon SAP to any particular course of business, product strategy,
and/or development. SAP assumes no responsibility for errors or omissions in this document. SAP does not warrant the accuracy or completeness of the information, text, graphics, links, or
other items contained within this material. This document is provided without a warranty of any kind, either express or implied, including but not limited to the implied warranties of
merchantability, fitness for a particular purpose, or non-infringement.
SAP shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. This limitation
shall not apply in cases of intent or gross negligence.
The statutory liability for personal injury and defective products is not affected. SAP has no control over the information that you may access through the use of hot links contained in these
materials and does not endorse your use of third-party Web pages nor provide any warranty whatsoever relating to third-party Web pages

Weitergabe und Vervielfältigung dieser Publikation oder von Teilen daraus sind, zu welchem Zweck und in welcher Form auch immer, ohne die ausdrückliche schriftliche Genehmigung durch
SAP AG nicht gestattet. In dieser Publikation enthaltene Informationen können ohne vorherige Ankündigung geändert werden.
Einige von der SAP AG und deren Vertriebspartnern vertriebene Softwareprodukte können Softwarekomponenten umfassen, die Eigentum anderer Softwarehersteller sind.
SAP, R/3, xApps, xApp, SAP NetWeaver, Duet, SAP Business ByDesign, ByDesign, PartnerEdge und andere in diesem Dokument erwähnte SAP-Produkte und Services sowie die
dazugehörigen Logos sind Marken oder eingetragene Marken der SAP AG in Deutschland und in mehreren anderen Ländern weltweit. Alle anderen in diesem Dokument erwähnten Namen
von Produkten und Services sowie die damit verbundenen Firmenlogos sind Marken der jeweiligen Unternehmen. Die Angaben im Text sind unverbindlich und dienen lediglich zu
Informationszwecken. Produkte können länderspezifische Unterschiede aufweisen.
Die in diesem Dokument enthaltenen Informationen sind Eigentum von SAP. Dieses Dokument ist eine Vorabversion und unterliegt nicht Ihrer Lizenzvereinbarung oder einer anderen
Vereinbarung mit SAP. Dieses Dokument enthält nur vorgesehene Strategien, Entwicklungen und Funktionen des SAP®-Produkts und ist für SAP nicht bindend, einen bestimmten
Geschäftsweg, eine Produktstrategie bzw. -entwicklung einzuschlagen. SAP übernimmt keine Verantwortung für Fehler oder Auslassungen in diesen Materialien. SAP garantiert nicht die
Richtigkeit oder Vollständigkeit der Informationen, Texte, Grafiken, Links oder anderer in diesen Materialien enthaltenen Elemente. Diese Publikation wird ohne jegliche Gewähr, weder
ausdrücklich noch stillschweigend, bereitgestellt. Dies gilt u. a., aber nicht ausschließlich, hinsichtlich der Gewährleistung der Marktgängigkeit und der Eignung für einen bestimmten Zweck
sowie für die Gewährleistung der Nichtverletzung geltenden Rechts.
SAP übernimmt keine Haftung für Schäden jeglicher Art, einschließlich und ohne Einschränkung für direkte, spezielle, indirekte oder Folgeschäden im Zusammenhang mit der Verwendung
dieser Unterlagen. Diese Einschränkung gilt nicht bei Vorsatz oder grober Fahrlässigkeit.
Die gesetzliche Haftung bei Personenschäden oder die Produkthaftung bleibt unberührt. Die Informationen, auf die Sie möglicherweise über die in diesem Material enthaltenen Hotlinks
zugreifen, unterliegen nicht dem Einfluss von SAP, und SAP unterstützt nicht die Nutzung von Internetseiten Dritter durch Sie und gibt keinerlei Gewährleistungen oder Zusagen über
Internetseiten Dritter ab.
Alle Rechte vorbehalten.

© SAP 2008 / Page 42