Apable o Atch: Dr. Joachim Altmeyer Ralph Schneider

Capable
To
Match
Dr. Joachim Altmeyer
Ralph Schneider
SAP AG
SAP AG CTM / Dr. Joachim Altmeyer 3/5/99 Slide no. 1
The Input
prioritized
demands
categorized
supplies
1.
attributes
attributes
product
2.
product
availability date
available quantity
3.
due date
required quantity
origin location
5.
4.
6.
priority
7.
category
8.
(e.g. near
obsolete,
normal, ...)
9.
10.
11.
Page 1
destination location
priority
The Application Model

prioritized
demands
categorized
supplies
Supply Chain Network
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Production Master Data
11.
The Solution
categorized
supplies
Capable-to-Match
prioritized
demands
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
multi-site capacity check

and check of transportation capabilities
Page 2
11.
CTM Engine: Capacity / Supply Constraints
demand
no capacity
t
no supply
success
CTM Engine: Determination of the Solution Tree

z
Search
by tree exploration
using backtracking
Constraint Propagation
truncation of the
search tree to
reduce the search space
Page 3
Data
APO Production Process Model (PPM)

z
z
z
processes
PPM summarizes routing and BOM

Time-Phased and Lot-Phased
Alternative Input Components
co-products
R
alternatives in time
product procurement
(production / external procurement)
Co-Products
Resources
possibility to model bin splits

R
time-continuos (single-activity/multi-activity)
bucket resources
Yield
for production lines (sequences of process steps )
Page 4
Time-Dependent Process Parameter

z
Time-dependent process parameters for
process
yield
duration of an activity
yield 100%
capacity consumption of an activity

quantities of input / output components
yield 50%
yield 70%
yield 100%
100 %
50 %
0%
yield (learning curve)
Multi-Site Planning
z
Transport Lanes
directed
between two locations
time-phased
product-dependent
transport time
transport calendar
May 1999
3
10
17
23
30
Page 5
1 2
4 5 6 7 8 9
11 12 13 14 15 16
18 19 20 21 22 23
25 26 27 28 29 30
31
CTM
Process
Demand Prioritization
z
prioritized
demands
Demands from liveCache

forecasts
1.
(from APO Demand Planning)
2.
sales orders
3.
Prioritization
4.
5.
based on
6.
demand type
7.
customer priority
8.
product priority
9.
due date
10.
11.
Pre-processing step
Page 6
demands
Supply Categorization
z
Supplies from liveCache

inventory
procurement orders
supplies
categorized
supplies
purchase orders/
requisition
excess
manufacturing orders
production orders
normal
planned orders
Categorization based on
supply limits
for each location
target
for each product
Pre-processing step
CTM Engine: Constraint Programming

z
Huge amount of data and large

search space
dedicated server
each demand is treated separately
strategies
strategies
pull approach
z
z
constraint
constraintmodel
model
basic
search
basic searchgoals
goals
based on customer needs

downstream
Approach
constraint programming
goal-oriented programming
Based on ILOGs C++ Optimization

Libraries
Page 7
CTM
CTMApplication
Application
Model
Model
CTM Engine: Search Strategies

search
z
z
Search Strategies
for each supply category
supplies
Usage of
Categorized Supply
before production
safety
stock
excess
(production)
after production
target
normal
before
production
production
after
production
CTM Engine: Partial Shipment/Partial Satisfaction

z
partial shipment
Partial shipment
a demand can be partially
satisfied (shipped)
in time (rest: late demand)
time frame can be specified
max: 3 days
Partial satisfaction
partial satisfaction
a demand can only be partially

satisfied
minimum and maximum
min: 50% max: 110%
percentage can be specified
Page 8
CTM Engine: Late Demand Strategies

z
domino effect
Domino effect
1.
planning immediately with
2.
postponed due date
3.
possible result:
4.
each postponed demand can

influence the due date of the next
demand
airline reservation
Airline reservation
1.
shift to the end of the demand list
2.
3.
4.
5.
CTM Engine: APO Decision Cube

z
decisions
Three different decisions being

applied recursively ...
consume supply
production
transport
supply
direct
assignment
virtual
demand
... build the

APO Decision Cube
BOM explosion versus
consuming supply
plant B
demand
plant A
APO Decision Cube
alternative products
alternative plants
Page 9
demand
production
virtual
demand
transport
demand
Outlook 99
Selection of the Process Flow

z
Alternatives for
processes
production plants
transport lanes
In many business scenarios, a complex

Supply Chain Network of alternative flows
is built out of the huge amount of decision
alternatives ...
Restricted Supply Chain Network
Supply Network
Constraints
restrictions of
production sites
(determination of
qualified sites)
... but can be reduced by

Supply Network Constraints
Page 10
Preferences Based on Quotas

North
NorthAmerica
AmericaRoute
Route
Possibility to
use quotas
South
SouthAmerica
AmericaRoute
Route
80 % North America Route
80 %
20 %
20 % South America Route
Product / Plant Substitution by Rules
especially
especiallyfor
for
customer
customerAA
product substitution
plant substitution
z
z
z
Product substitution
1.
sequences of substitutions
demand dependent
1.
Plant substitution
sequences of substitutions
demand dependent
2.
2.
Combination of Product /
Plant Substitution
3.
3.
Page 11
Solution Constraints
z
Supply Network Constraints

restrict the set of possible
supply network
supply network constraints
production sites
z
z
customer constraints
based on customer
rules
Customer Constraints
influence the demand handling
based on customer
Rules
define production/plan
substitutions
based on demand
Business
Process
Page 12
solutions
CTM Complements SNP

z
z
z
CTM writes SNP orders

Use of SNP PPMs
Complements the
SNP with PP/DS features
demand tracking
time-dependent process parameter
Application
generation of constraint forecasts
release DP to SNP
CTM planning run
release SNP to DP
re-planning and incremental planning
CTM as Mid-Term PP/DS

z
z
z
CTM writes PP/DS orders

Use of PP/DS (restricted) PPMs
Complements the
APO Supply Network Planning with
PP/DS enhancements
focus on production planning
with capacity check on activity level
Application
use of PP/DS resources
CTM solution can be used as an initial genome
for the genetic algorithm of the APO PP/DS
optimizer
Page 13
CTM Customer Profile

z
CTM focus on grading and assembly

production processes
small set of components
High-Tech industries
(e.g. semiconductor companies, wafer)
steel and paper

laptop and PC
Solution for companies

which want high customer satisfaction
with many constraints
finite capacity planning
focus on production
Demo
Page 14
CTM Demo: Standard Example

Phone
CTM1
Frankfurt
Core
Ship
CTM3
Austin
Die
CTM Demo: Standard Example

z
z
z
z
z
Master Data
CTM Screen
Supply Categorization
CTM Run
Master Data Checker
Supply Coordination
CTM Engine
CTM Messages
CTM Result
Page 15
CTM2
Madrid
CTM4
Palo
Alto

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Capable

SAP AG CTM / Dr. Joachim Altmeyer 3/5/99 Slide no. 1

SAP AG CTM / Dr. Joachim Altmeyer 3/5/99 Slide no. 2

The Application Model

Production Master Data

SAP AG CTM / Dr. Joachim Altmeyer 3/5/99 Slide no. 3

multi-site capacity check

SAP AG CTM / Dr. Joachim Altmeyer 3/5/99 Slide no. 4

CTM Engine: Capacity / Supply Constraints

SAP AG CTM / Dr. Joachim Altmeyer 3/5/99 Slide no. 5

CTM Engine: Determination of the Solution Tree

SAP AG CTM / Dr. Joachim Altmeyer 3/5/99 Slide no. 6

SAP AG CTM / Dr. Joachim Altmeyer 3/5/99 Slide no. 7

APO Production Process Model (PPM)

PPM summarizes routing and BOM

(production / external procurement)

possibility to model bin splits

SAP AG CTM / Dr. Joachim Altmeyer 3/5/99 Slide no. 8

Time-Dependent Process Parameter

Time-dependent process parameters for

capacity consumption of an activity

yield (learning curve)

SAP AG CTM / Dr. Joachim Altmeyer 3/5/99 Slide no. 9

SAP AG CTM / Dr. Joachim Altmeyer 3/5/99 Slide no. 10

Demands from liveCache

(from APO Demand Planning)

SAP AG CTM / Dr. Joachim Altmeyer 3/5/99 Slide no. 12

Supplies from liveCache

for each product

SAP AG CTM / Dr. Joachim Altmeyer 3/5/99 Slide no. 13

CTM Engine: Constraint Programming

Huge amount of data and large

based on customer needs

Based on ILOGs C++ Optimization

SAP AG CTM / Dr. Joachim Altmeyer 3/5/99 Slide no. 14

CTM Engine: Search Strategies

SAP AG CTM / Dr. Joachim Altmeyer 3/5/99 Slide no. 15

CTM Engine: Partial Shipment/Partial Satisfaction

time frame can be specified

a demand can only be partially

minimum and maximum

min: 50% max: 110%

percentage can be specified

SAP AG CTM / Dr. Joachim Altmeyer 3/5/99 Slide no. 16

CTM Engine: Late Demand Strategies

planning immediately with

postponed due date

each postponed demand can

shift to the end of the demand list

SAP AG CTM / Dr. Joachim Altmeyer 3/5/99 Slide no. 17

CTM Engine: APO Decision Cube

Three different decisions being

... build the

APO Decision Cube

SAP AG CTM / Dr. Joachim Altmeyer 3/5/99 Slide no. 18

SAP AG CTM / Dr. Joachim Altmeyer 3/5/99 Slide no. 19

Selection of the Process Flow

In many business scenarios, a complex

Restricted Supply Chain Network

... but can be reduced by

SAP AG CTM / Dr. Joachim Altmeyer 3/5/99 Slide no. 20

Preferences Based on Quotas

80 % North America Route