SAP SCM rapid-deployment solution

Implementation of SCM CTP at

Plansee Electrograph

Matthias Lob, Plansee Group IT

Plansee Group 2

SAP SCM rapid-deployment solution

Agenda

• Plansee Group

• Project Electrograph

• SAP SCM rapid-deployment solution

• Approach to the implementation of SAP SCM CTP

• Lessons learned und success factors

Plansee Group 3

Lake Plansee

Plansee Group 4

Plansee Group

90 years

of excellence in

powder metallurgy

1921 – 2011

Plansee Group 5

29 production companies worldwide

Hardmetals

& Tools

High Performance

Materials

Tungsten

& Powders

Kolkata

Tianjin

Vista

Franklin

Towanda

Warren

Gabrovo

Hitzacker

Lechbruck

Liezen

Reutte

Alserio Seon

St. Pierre en Faucigny

Biel

Niederkorn

Empfingen

Livange

Mamer

Bruntál

Esashi

Sakura

Sales companies

and sales partners

in 50 countries

Mysore

Shanghai

Tamsui

Wugu Zhangzhou Xiamen

Seoul

Plansee Group 6

Plansee Group value chain

Customer-specific

solutions

Semi finished parts

Refractory metal

powder production

Molybdenum powders

Blanks

Tungsten powders

Semiconductor industry

Aerospace

Construction industry

Power engineering

Medical technology

Consumer electronics

Mechanical engineering

Automotive industry

Customer-specific

solutions

Cobalt

Rare earths,

rhenium,

other alloys

Recycling

Hard metal

powder production

Plansee Group 7

Plansee Group

Components for

ion implanter sources

Product

Central processing unit

Application

Ion implantation

Process

Semiconductor industry

Plansee Group 8

Plansee Group

Production and sales of Ion Implanter parts

Classical job-shop production on CNC machines

Article range from single parts to entire assemblies

Market requirements: short delivery time, adherence to high delivery date

and flexibility

Existing ERP application includes finite capacity planning

Real-time sales order confirmation based on the availability of material

and capacity (ATP + CTP)

Company Electrograph

Plansee Group 9

Project Electrograph

Demands on Plansee Group IT

Replacement of existing ERP application at Electrograph

Integration of the Plansee HPM logistic processes

Finite capacity planning

Real-time sales order confirmation based on checked availability of

material and capacity (ATP + CTP)

-> Decision to implement ECC6 and SCM with APO CTP

(globalATP) functionality simultaneously

-> Decision to implement APO CTP functionality as SAP SCM

rapid-deployment solution

Plansee Group 10

Reasons for the simultaneous implementation of ERP and APO:

Holistic process view

Reduced training effort by one-time implementation of the final process for

sales order processing

Finite capacity planning feasible with SAP APO

Migration of production master data considering the requirements of APO

Risks

No experience with APO within the Plansee Group IT

Higher complexity by the simultaneous implementation of the APO

Arising of “unsolved” issues during the project

Possible violation of time schedule and budget

Project Electrograph

Plansee Group 11

Reasons for the decision to implement APO ATP/CTP as rapid-

deployment solution

Clearly defined functional scope

Fixed price

Proven and tested approach

Risks

Risk of poor adaptability

to possible new requirements

Project Electrograph

Plansee Group 12

Rapid-Deployment of SAP-SCM CTP

What is „Capable to promise“ CTP?

CTP enables sales order confirmation in case of an unsuccessful

„Available to promise“ ATP check

CTP creates missing supplies (planned orders) along the entire product

structure automatically.

These elements are checked according capacity and material availability

and are “feasible” in terms of production and procurement.

During ATP the sales orders are only checked against existing stock and production orders. If the CTP function is used and the ATP check is unsuccessful, a check against the production capacity is carried out immediately during the sales order availability check. If capacity is available, a planned order is created in order to meet the requirement from the sales order and the production capacity will be reserved. The sales order will be confirmed by this planned order.

Plansee Group 13

Capable to Promise (CTP)

• Based on the customer order, planned orders are created on the finished good level

• Depending on the system setup, planned orders to cover the dependent requirements are created on multiple levels as well

Level 1 Finished part

Sales Order

Request

date + quantity Today Confirmed

date + quantity

Level 2 Semi Finished part

Level 3 Raw Material Lead time

capacity

Plansee Group 14

Rapid Deployment of SAP-SCM CTP

What does CTP mean for production planning?

Production planning is carried out immediately at sales order

confirmation

A “classical” MRP planning run is not required

The planned orders are created to cover the requirements from the sales

orders by considering the available capacity. Sales orders are confirmed

by these planned orders. Therefore a feasible production plan that

adheres the delivery date is always given.

The master data that are required for the CTP process in APO are provided by SAP ERP:

Materials (named products in APO)

Work center with available capacity (named resource in APO)

Production versions with routings and BOMs (named PDS in APO)

Plansee Group 15

Rapid Deployment of SAP-SCM CTP

Even if the rapid-deployment solution is preconfigured, individual

enhancements to the SCM CTP scenario are absolutely possible

(to a limited extent).

Basically, the following enhancements were made by Plansee:

Usage of the CTP functionality also for MTS with planned independent

requirements.

Considering of external procurement during CTP .

Plansee Group 16

Approach for the implementation

Three step Approach

A blueprint was not prepared because the functional scope of the rapid-

deployment solution for CTP was already known and accepted.

Phase 1 „Set-up of the system landscape“:

Installation of APO and establish interconnection to ERP-System (RFC)

Set-up of APO Core Interface (CIF) for real-time data exchange between

ERP and SCM-APO.

Phase 2 „Set-up of the key processes“:

• Configure Sales order processing with CTP

• Configure finite capacity planning with PP/DS

• Configure profiles for scheduling planning board, Alert monitoring etc.

Plansee Group 17

Phase 3 „Realization of Plansee individual topics“ :

Planning with safety stock

Considering planned order for external procurement

Planning with forecasting

Each phase started with a workshop to determine the settings (customizing,

profile, etc.)

Afterwards the results were implemented by the SAP consultant with

simultaneous functional testing by Plansee

Besides there was still enough time for workshops to develop workarounds for

topics that were not covered within the scope of the rapid-deployment solution,

e.g.: the usage of MRP-Areas

Approach for the implementation

Plansee Group 18

Lessons learned und success factors

Lessons learned:

It works! We are live since February 1, 2011

We were able to complete the entire project and the CTP

subproject (40 m/d) in time and budget

The interdependency with the simultaneous ERP

implementation caused continually delays

Changing to a new system during the implementation caused

partially duplication of work

Training effort, especially for IT, was underestimated

Plansee Group 19

Lessons learned and success factors

Our experiences – the success factors:

The CTP process philosophy was already established.

Therefore a high acceptance of the new solution was achieved.

Strong partners. The deployment was carried out on site in close

collaboration with SAP consulting. In this way a high level of

“mutual learning” was possible.

Exact knowledge of the key requirements. Rigorous adherence

to the scenarios of the SCM rapid-deployment solution.

Plansee Group 20

Thank you

Plansee:

Contact Matthias Lob Project Manager ITA

Plansee Group Service GmbH

Großfeldstr. 10 - 6600 Reutte – Austria

matthias.lob@plansee.com

www.plansee.com