Improved Material and Production Planning withSuite on HANAApril 2014
Andy Macaleer – SAP Solution Management LOB Manufacturing
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Improved MRP and PP with Suite on HANAAgenda
Today’s Challenges
MRP Today
MRP on SAP HANA
Smart Business for MRP Demo
Technical Information
Value Proposition
Wrap-Up
© 2014 SAP AG or an SAP affiliate company. All rights reserved 3
Material Planner
Material planner’s questions:
Can I fulfill all the material demands?
If not, which materials are short and when?
Do I have enough supply to meet thedemand?
If not, which materials are most critical?
Which important orders and customers aremost affected?
How do I resolve the most critical materialshortages?
??
Improved MRP and PP with Suite on HANASupply and Demand Evaluation Today
© 2014 SAP AG or an SAP affiliate company. All rights reserved 4
Improved MRP and PP with Suite on HANAAgenda
Today’s Challenges
MRP Today
MRP on SAP HANA
Smart Business for MRP Demo
Technical Information
Value Proposition
Wrap-Up
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Improved MRP and PP with Suite on HANAWhat Is Material Requirements Planning?
5
Supply Situation
Inventory
Stock Transfers
Purchase Orders
Goods Receipts
Demand Requirements
Sales Orders
Forecast Demand
Stock Transfers
MRPMatch Supplyand Demand
IdentifyShortages
Solution Recommendations
Planned Orders
Stock Transfers
Purchase Orders
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A material planner is responsiblefor hundreds of materialsChallenged by dozens of exceptions adayTime is limitedFocus on the most important andurgent issuesManually intensive analysis of thestock requirements listAdditional information from multiplesources is required to answer thesequestions
Improved MRP and PP with Suite on HANADetecting the Most Critical Issues
?
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MRPPlanning
Run
MRP Planning RunBatch process - resource and data-intensiveLong execution time – runs once a week, every couple ofdays, or nightly
Evaluate MRP Requirements“Snapshot” of material requirements based on MRP runSnapshot immediately outdated after new supply anddemand activity occursEvaluate Stock Requirements2nd most widely used transaction across all of ERPVery slow to execute
• Change Production Order• Change Planned Order• Change Purchase Order• Change Purchase Requisition
Improved MRP and PP with Suite on HANAMRP Today – Batch-Driven Process and Multiple ERP Transactions
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Improved MRP and PP with Suite on HANAStep by step process in ERP
Process today
MD01 /RMMRP000
EvaluateMRP Lists(snapshot)
MRP PlanningRun
MD06
Challenges:Long and resource intensive MRP runsmeans a periodic, batch processNew demand and supply changes makeMRP plan immediately out-datedNo real-time, single view of materialinformation and shortages across sitesSingle material, single site, manuallyintensive shortage identificationNavigation to multiple ERP transactionsrequired to evaluate solution alternativesResults in poor decision making
User interaction
Batch Job
EvaluateStockRequirementsList
MD04
Display / ChangeProduction OrderCO02/03
MD12/13Display / ChangePlanned Order
ME22/23NDisplay / ChangePurchase Order
ME52/53NDisplay / ChangePurchase Requisition
…
© 2014 SAP AG or an SAP affiliate company. All rights reserved 9
Improved MRP and PP with Suite on HANAAgenda
Today’s Challenges
MRP Today
MRP on SAP HANA
Smart Business for MRP Demo
Technical Information
Value Proposition
Wrap-Up
© 2014 SAP AG or an SAP affiliate company. All rights reserved 10
Improved MRP and PP with Suite on HANAMRP on SAP HANA - Improving the Plan to Produce Process
Roles
Sales OrderEntry MRP Live Release to
ProductionConfirm
OperationsInteractivePlanning
ProductionPlanner
ProductionSupervisor
ProductionWorker
Monitor &Control
ProductionPlanner
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Improved MRP and PP with Suite on HANAStep by step process in SoH
Benefits:• More frequent MRP runs
• More timely and accurate material info
• Single, real-time view of materialshortage information across sites
• Sales order, inventory and procurementviews
• Simulate solution viability andeffectiveness in real-time
User interaction
Batch Job
MD01N
Real-timeSupply &Demandevaluation
New MRPPlanning Runon HANA
MRPFIORIApps
Smart Business for MRP:• Improved, streamlined UI for
Material Planner
• Based on near-real time MRPinformation
• Improved identification andprioritization of materialshortages issues
• Solution recommendation andpreview capability for improveddecision making
• External procurement – RTC Q12014
• In-House Production – 2014roadmap
~10Xfaster
… and now with Suite on HANA
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Improved MRP and PP with Suite on HANAMore Frequent MRP Runs, More Accurate Data, Better Decisions
MRP Live:
Faster MRP run More frequent planningUp-to-date information
Detect and evaluate material shortages withflexible rules
Find critical demands - uncovered salesorder items or missing parts in production
Find critical supplies - late or overduepurchase orders or production orders
Evaluation of consequences - which salesorders are endangered by a late supply
Material Planner
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Improved MRP and PP with Suite on HANASmart Business for MRP
Real-time InformationReal-time metrics and KPIs by material,order, inventory, and procurementPersonalized views
Enterprise-Wide VisibilityAcross thousands of materials, hundredsof locations, hundreds of thousands ofstock situations
Consumer-Grade User ExperienceVisually appealing UIsRed, yellow, and green status for simpleissue identification
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Improved MRP and PP with Suite on HANAImproved Solution Identification and Resolution
Highlighted IssuesIdentification and prioritization of mostcritical material shortages based oncurrent information
Time-Critical PerspectiveGraphical stock situation for next 21days
Solution RecommendationPresentation of best solution optionsPreview solution viabilitySimple solution application
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Improved MRP and PP with Suite on HANAFiori Apps for Production Planning
Release Production OrdersReview orders to be released based oncustom user-defined variantsVisibility to missing partsConfirm Production
Streamlined UI for full and partialproduction confirmationGraphical bars and color-coded statusBrowser-based, HTML5 UI for use withdesktop, tablet, and mobile devices
© 2014 SAP AG or an SAP affiliate company. All rights reserved 16
Improved MRP and PP with Suite on HANAAgenda
Today’s Challenges
MRP Today
MRP on SAP HANA
Smart Business for MRP Demo
Technical Information
Value Proposition
Wrap-Up
© 2014 SAP AG or an SAP affiliate company. All rights reserved 17
Improved MRP and PP with Suite on HANAAgenda
Today’s Challenges
MRP Today
MRP on SAP HANA
Smart Business for MRP Demo
Technical Information
Value Proposition
Wrap-Up
© 2014 SAP AG or an SAP affiliate company. All rights reserved 18
Improved MRP and PP with Suite on HANAMRP Performance Optimized on SAP HANA
StorageLocation
ABC
Material
123
MRP MRP DataInventory
Material ReceiptsSales Orders
Purchase OrdersStock Transfers
POs SOs MRs
MRP Live
Now Future
SAPHANA
STs
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Traditional DB
Improved MRP and PP with Suite on HANADeployment Options and Architecture
SAP HANA DBSAP HANA DB
SAP HCM
(EHP7)Payroll
HRRenewal2.0 (UX)
SAPNetWeaver
7.4
Integrated Suite on SAP HANA Scenario Side-by-Side Scenario
SAP HCM
(EHP7)Payroll
HRRenewal2.0 (UX)
SAPNetWeaver
7.4
Exists, but can not be utilized for MRPon SAP HANA
Full deployment as part of Suite onSAP HANARequired for MRP on SAP HANA
‘Declustered’
tables
© 2014 SAP AG or an SAP affiliate company. All rights reserved 20
Improved MRP and PP with Suite on HANAMRP on SAP HANA Roadmap
Usage
FeaturesLong tail
Q1 Q3 Q4
Optimize reading of material receipts and requirements
Plan externally-procured materials in SAP HANAusing demand-driven planning
Plan manufactured non-configurablematerials in SAP HANA; Reorder pointplanning in SAP HANA
2013 2014
© 2014 SAP AG or an SAP affiliate company. All rights reserved 21
Improved MRP and PP with Suite on HANAAgenda
Today’s Challenges
MRP Today
MRP on SAP HANA
Smart Business for MRP Demo
Technical Information
Value Proposition
Wrap-Up
© 2014 SAP AG or an SAP affiliate company. All rights reserved 22
How often do you run MRP ?Do problems in your material flow remainundetected, or are they detected too late?Do you make decisions based on periodic MRPruns that don’t reflect current information?How do you handle open orders at the end of thequarter?
36%Reduction in out of stocks
* KPI improvements are based on benefits of traditional MRP. Improvements based on HANA will need to validated with specific customers
Improved MRP and PP with Suite on HANAReducing Material Shortages Improves Overall Supply Chain Performance
© 2014 SAP AG or an SAP affiliate company. All rights reserved 23
Improved MRP and PP with Suite on HANAAgenda
Today’s Challenges
MRP Today
MRP on SAP HANA
Smart Business for MRP Demo
Technical Information
Value Proposition
Wrap-Up
© 2014 SAP AG or an SAP affiliate company. All rights reserved 24
Improved MRP and PP with Suite on HANAWhere to Find More Information
MRP on SAP HANA Factbook:www.saphana.com/docs/DOC-4214
SAP ERP Production Planning Infohttp://scn.sap.com/community/erp/manufacturing-pp
SCN Manufacturing Communityhttp://scn.sap.com/community/manufacturing
© 2014 SAP AG or an SAP affiliate company. All rights reserved 25
Improved MRP and PP with Suite on HANAKey Points to Take Home
MRP Live delivers faster and more frequentmaterial planning runsSmart Business for MRP provides real-timevisibility to material information, facilitatingimproved issue resolution and decision makingSAP Fiori for Production Planning delivers visuallyappealing and improved UIAll of which improve the efficiency of the materialplannerReduced material shortages contribute toimproved supply chain metrics and KPIs acrossthe enterprise
© 2014 SAP AG or an SAP affiliate company. All rights reserved 27
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