Supply chain is the effective way of managing the flow of demand and supply to maximize the customer value and achieve a sustainable competitive advantage. APICS Dictionary States Supply Chain Management as “the design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand, and measuring performance globally.” In recent years, we have seen a drastic change in the way that supply chain system works with SAP and there are many misconception or assumptions around the Integration of different supply chain systems like APO, IBP, and CIF Architectures. Below picture depicts how SAP has re-defined its architecture.
In the Year of 2014, a new system called IBP is invented which works on cloud and traditional systems like SAP EIS, SAP SCIC, DP, and SNP have moved into IBP throughout the time it has seen drastic changes until its latest release 1811. Similarly, from the Year of 2016, Planning and Warehouse modules like PP/DS, TM, EWM is embedded to S/4 HANA On-Premise system and has seen a drastic change. In this blog we will cover the Architectural, Functional and Technical Changes done with Advanced Planning in S/4 HANA.
Introduction to Advanced Planning
“Production Planning is setting the overall level of manufacturing output… and other activities to best satisfy the current planned level of sales… while meeting general business objectives of profitability, productivity…etc. as expressed in overall business plan”
SAP PP/DS also known as Production Planning and detailed scheduling is popular in industries wherever it requires complex manufacturing and scheduling. Until the release of SAP S/4 HANA 1610 Production Planning and Detailed Scheduling is carried out in a separate supply chain box also known as SAP APO which is integrated to SAP ECC or S/4 HANA via Core Interface. S/4 HANA on PP/DS has overcome some of the below challenges faced in classic APO-PP/DS.
- Master data Redundancy.
- Continuous CIF Monitoring is required to Fix inconsistent data
- Huge Impact in Planning, In-case of MRP dependency between APO, ECC, S/4 HANA.
Advanced Planning Architecture
Advanced Planning has seen a significant change when it comes to architecture from SAP S/4 HANA1610 Release and considerable process improvements have been brought until the latest release SAP S/4 HANA 1809. The below picture depicts the change in the Architecture in context to Advanced planning.
|Note: People assume that CIF and live cache has been completely eliminated in PP/DS on S/4 HANA. But the true fact is that CIF is still required for few master data transfers that include production data structures, vendor master, location master, setup groups etc as on 1809 release.|
But CIF is now eliminated for Transactional data transfers, and hence no more active integration model is required for Transactional data.
To Size Live cache memory requirements, the HANA version of Quick Sizer can be used in SAP S/4 HANA PP/DS. And S/4 HANA Embedded Advanced Planning supports Optimizer for complex scheduling. The Optimizer Installation requires separate Hardware for Installation.
To use Advanced Planning in SAP S/4 HANA, activation is required in the configuration node, this requires a separate license “Manufacturing for Planning and Scheduling”.
|Note: The Functionalities of PP/DS are still built around with live cache.|
Advanced Planning Integration
S/4 HANA is integrated with different Supply Chain Systems within S/4 HANA and as well as with other Supply chain SAP Systems. In this Blog, let us see Integrations that are relevant for Advanced Planning and Scheduling.
Advanced Planning and APO Integration with S/4 HANA
To Integrate S/4 HANA with Advanced planning system and as well as APO system the CIF Settings for data transfer Logical System, Logical System assignment to Client, Define RFC Destination, RFC Destination Assignment to various Application Cases, Business System Groups, Assign the Logical System and Queue Type to the Business System Group still needs to be defined.
The Application Specific Settings and Enhancements can be defined in the below node path for any Application specific data integration.
For Migrating APO with any of its successor products (S/4 HANA for PP/DS & GATP, IBP for DP and SNP), an automated approach is not possible as suggested by SAP (Refer Note: 2456834).
|Note: APO and Advanced Planning can be used together with same S/4 HANA system side by side with different data set.However data can not be exchanged with each other (i.e APO-SNP order cannot be continued as input for Advanced Planning PP/DS)|
Advanced Planning and IBP Integration with S/4 HANA
IBP and Advanced Planning in S/4 HANA can be used together, considering that there is no data dependency. Similarly, Integration of Orders generated out of IBP to Advanced Planning is not supported.
IBP for Supply and Demand are integrated with S/4 HANA through CPI-DS and IBP for Response is integrated via SDI.
Innovations in Advanced Planning
Advanced Planning in SAP S/4 HANA PP/DS has addressed Key challenges faced with SAP APO. Some of the Key Innovations to mitigate the challenges are listed below.
- CIF Simplification for Master and Transactional data.
- Planning and Scheduling Applications can utilize on one single HANA Database, Live cache is now the part of SAP HANA Database.
- BI Component of APO available – Functionality of Process Chains.
- Integrated Material Requirements Planning and Unified Execution Log in MRP Live.
- Single Mass Order Conversion report for both S/4 HANA and APO Relevant materials.
- Performance Improvement for Order Publication to PP.
- New Fiori APPS Introduced with Enhanced UI (Monitor Capacity Utilization, Production Scheduling Board, Optimal Orders for Shipment).
Comparison with APO – PP/DS & Advanced Planning & Production Planning (Integration / Key Benefits)
Things to consider with Advanced Planning
There are few things to consider when using Advanced planning with PP/DS that includes.
- When using multiple systems like Embedded EWM, TM, Advanced Planning consideration must be done when defining Logical Systems.
- S/4 HANA Material Master is Key master data now for all embedded Modules, so configuration of MM-view changes will impact Advanced Planning view.
- MRP Type “X0” is not mandatory for Advanced Planning Relevant Materials.
- Free Attributes of Product and Location Master of Advanced Planning is not standard unlike APO-PP/DS. An Enhancement is required to activate New attributes.
- All Advanced Planning Transactions and Tables are starting with /sapapo/xxx like APO-PP/DS except few changes
- Resource creation is no longer supported in Advanced Planning transaction.
- Forecast is either entered Manually in Advanced Planning or Maintain PIR in MD61 of S/4 HANA
- Consideration must be done whether to go with Characteristic Dependent Planning or Variant Configuration, any change in the later could lead to huge data loss.
- Capacity Utilization can be used only for Production Resources.
- Automatic creation of Transportation lanes is not supported and must be maintained manually.
- Class Types (23/300) will get integrated to Advanced Planning Class Type (230/400) by maintaining an active integration model for Organizational Area.
- A separate activation in the configuration node is required to use Fiori Apps for Advanced Planning (Production Scheduling Board, Capacity Utilization App, Optimal Order Shipments)
- Orders created with Classic MRP (MD01, MD02) are not supported in Fiori apps
S/4 HANA Embedded PP/DS (Advanced Planning) have significantly reduced cost with less administration and maintenance work, covering all native functionalities of APO – PP/DS though there is a separate licensing involved. Now it will be beneficial to customers who is not using APO before but looking for PP/DS functionality and for customer who is already using APO – PP/DS.
Links and References
https://launchpad.support.sap.com/#/notes/2712349– PP/DS cookbook -1809/1709
https://launchpad.support.sap.com/#/notes/2647972– Simplification list:PP/DS on S/4HANA 1809
https://launchpad.support.sap.com/#/notes/2674488– Release Information note:1809
https://launchpad.support.sap.com/#/notes/2666947– Restrictions and Implementation recommendation PP/DS on S/4 HANA 1809
https://launchpad.support.sap.com/#/notes/2674523– Release Information Fiori apps-1809
https://launchpad.support.sap.com/#/notes/2393581– Extensibility features for SCM related Fields-1610
https://launchpad.support.sap.com/#/notes/2456834 – Transition guide for SAP APO
https://www.sap-press.com/production-planning-with-sap-apo_3927/ Production Planning with SAP APO-Jochen Balla/Frank Layer
https://www.youtube.com/watch?v=MWP2zvwupoA -SAP S/4 HANA in PP/DS