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Author's profile photo Jyoti Chalikar

Integration Scenario for APO modules

Integration Scenario for APO modules

                SCM APO is a planning tool which is used to plan and optimize supply chain processes in different business processes such as Demand Planning (DP), Supply Network Planning (SNP), Production Planning and Detailed Scheduling (PPDS), Global Available to Promise (GATP) and Transportation Planning & Vehicle Scheduling (TPVS). APO DP is a set of functionalities around Demand Management, Statistical Forecasting, Promotion and Life-cycle Planning processes. It is an integral part of any organizations Sales & Operations Planning Process. APO SNP is a set of functionalities around Distribution Requirement Planning, Deployment, Demand and Supply Matching and Optimization. APO PPDS is a set of functionalities around In-house Production Planning, External Procurement Planning, Resource Scheduling and Sequence Optimization. APO GATP is a set of functions around Order Promising and Fulfilment checking across the whole supply chain. APO TPVS is used to plan, optimize, and execute the complete transportation process between companies in a detailed manner.


We started the integration scenario which consists of all the modules of SCM APO which are the DP, SNP, PPDS, GATP, and TPVS. Some specific scenarios were picked up in each module to demonstrate the end to end scenario. A team of 5, each module’s experts were chosen for the task. We got together and came up with a real time scenario for which the master data was created in ERP system. To set up a proper master data the team took help of one of the Partners. The core master data was built by the PPDS expert which would be used across modules. Accordingly the relevant master data was either built or some customizing changes were made to the existing master data. We took the example of a biscuit manufacturing company.

We had to spend time initially to choose a proper product and then to identify various requirements. Many trial and error methods were done while creating the master data which would be used across the modules. We used to have a short sync up meeting for half an hour every alternative day to check the status on the progress. We got to know the requirements of each module and also what used to happen in each module. For example DP, it used to take the DFUs and then get the forecasted data ready to be used for SNP. We had faced many issues while we were setting up the data. Initially we started with some set of master data and then we had to change a certain data due to which some of them had to bear the changes and adopt them in their respective module. Though there were so many issues all of them handled them in a smooth way and were successful in executing the scenario.

The key ingredients for the production of biscuit are flour, refined oil and sugar.  We also have packets of different sizes to pack the biscuits finally when they were ready. We have two plants located in Bangalore and Chennai. Each plant has three work centers for mixing, baking and packing. We have two distribution centers and two Regional distribution centers each located in Bangalore and Chennai and one customer. First of all the materials were built which were followed by creation of work centers, Bill of materials and routings. Work centers were given with some estimated duration according to the type of work center used. The mixing work center did the job of mixing the flour, refined oil and sugar in proper proportions as specified in the PDS which is the Production data structure. Then the mixture is baked to a certain time and under certain temperature with the help of ‘baking’ work centre. Once the biscuits are ready these are packed in different sized packets with the help of ‘packing’ work center.

  1. Once the set up for the production of biscuit was ready, the manufacturer has to get to know how many packets of biscuits should be produced. So, demand planning (DP) was taken for this purpose wherein the historical data was extracted from the BW (Business Warehouse) system and a forecast data would be created with the help of Interactive planning. This forecast data is then released to SNP where a rough cut planning is performed with the help of some heuristic run. These SNP planned orders would be then picked up by PPDS and converted to PPDS planned orders which have all the details of the operations, activities, quantities and available dates. The orders are now re-scheduled using the DS planning board where a proper placement of orders is obtained. Simultaneously the sales orders (if any) from the customers are handled by GATP for which additional planning is performed. Once the plan is ready, the orders are sent for execution to the ERP system and the production takes place. Finally tasty biscuits are ready to eat

The whole Idea of building this integration scenario was to have a sanity check of all the modules and also test the integration points. An ecatt test script can be developed for this integration scenario and can be used for smoke test during the test phases so that it would save time and also the basic integration of all the modules would be tested.

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      Author's profile photo Former Member
      Former Member

      Hi Jyoti

      Good example of Biscuit manufacturing 🙂

      Author's profile photo Former Member
      Former Member

      It is great to see how APO is used by different businesses... Keep on sharing 🙂