Professional Documents
Culture Documents
Manufacturing Strategies
Introduction to Manufacturing Strategies
Configure-To-Order (CTO)/ Variant Configuration Overview
Cameron complex manufacturing scenarios
Wrap Up
Key Take Away
Question
In This Session
Optimize forecasting and supply planning by leveraging SAP ECC & APO-
Characteristic Based Planning (CBP)
Cameron International - Facts
Refining/
Offshore Drilling Offshore Production Topsides Processing Petrochemical/LNG
Customer Order-
Forecast-Driven Driven
Key:
SAP CTO/Variant Configuration Overview
6 IN
Constraint - Invalid Combination
150 PSI
Ball Valves Pressure Class 300 PSI Operation (Machining = 24 Hrs, Workcenter = M1)
GB1
Yield Strength
GB3
Object Dependencies identify rules for :
Configured Products Characteristics are Characteristic Values Defaults/ Constraints
are assigned to a used to define product identify options within Pricing
Class. features. product features. BOM Components
Routing Operations
Cameron Manufacturing Scenarios/Requirements
Lack of collaborative planning. Master plans, production plans and production schedules change
frequently.
Configured products have a very large number of features and options.
Sales history is not always a good predictor of future demand.
The same product lines are using a mix of Configurable Materials, Product Variants and one-off
finished products (ETO).
Lack of clear visibility on capacity utilization, forecast accuracy, obsolete inventory, product-to-market
time and transportation costs
New products regularly miss their launch dates.
Infinite planning & cumbersome capacity leveling.
Lack of long term visibility to the suppliers.
Product phase-outs are costly.
Inaccurate Financial Plans.
Case for an Improved S&OP Process at Cameron
Market Indicators
Demand Planning CRM- solid
Manual forecast No simulations for available but not Forecast Models
on spreadsheets or forecast data not
to suppliers supply capacity identified for all built only for 2
non- existent available.
Products Product Lines
Step 4: Step 3:
Executive Pre- S&OP - How much?
- Time horizon: quarterly or monthly
S&OP Meeting Tactical - Forecast driven
Meeting - Sample output: monthly production plan
- Do it
- Time horizon: real time
- Order driven (internal/external)
Executional - Sample output: execution
Why S&OP is important in MTO Environment
MTS products are sold from inventory; MTO products are sold
from capacity
Product Loc Size Pressure End Conn May Jun Jul Aug Sep Oct
Generate
Baseline
Forecast
Demand Planner
Demand Planner
Develop
Release Consensus
Unconstrained
Demand Plan
Sales Forecast
Backup Transfer
7a
APO BI History Cube Cube
Cube 7b
3b 3c
Adjustments to Sales Generate Dependent 5b
CTM Finite Capacity Planning
Forecast Demand
(Simulation Vers)
(PKMAT+Char) (Simulation Vers)
Manage History
3a
(PKMAT+Char) 5a
1c
Statistical Fcst
DP 1d (PKMAT+Char)
1b 4
2
Opportunity Fcst Sales Fcst Consensus Fcst
(PKMAT+Char) (PKMAT+Char) (PKMAT+Char)
Manual Fcst
1f (PKMAT+Char)
5c 5d
1a Sales Order CTO
MRP Forecast Consumption Component Planned /
ECC Planned Order PIR Components
Sales Order FIN Production Order
6b 6c
6a
Sales Order PV 1e
CRM Opportunity
Deloitte Solution Highlight-Configurable Planning
Material
Sellable KMAT (SKMAT) Planning KMAT (PKMAT)
Size Size
2, 4.. 2, 4,
6, 10, 12..
XXX
Pressure Class
150 psi,
300 psi..
SKMAT
Make-To-Order PKMAT
10
10
20
Make-To-
Stock
A11 A12 A13 A21 A22 A23 B1 B2 B3 A12 A23
VS = 16 VS = 16 VS = 16 VS = 16 VS = 16 VS = 16
VS = 16 VS = 16
PR = 600 PR = 600 PR = 600 PR = 600 PR = 600 PR = 600
PR = 600 PR = 600
EC = WE EC = WE EC = WE EC = WE EC = WE EC = WE
EC = WE EC = WE
TR = T31 TR = T30 TR = T3 TR = T31 TR = T30 TR = T3
YS = x60 YS = x61
YS = x60 YS = x60 YS = x60 YS = x61 YS = x61 YS = x61
30 50 70 120 140 160
40 60 80 130 150 170 90 100 110 Representative
critical sub-
P1 P1 P1 P2 P2 P2 P3 P3 P3 assemblies
Product
For VC scenario, sales order configuration is used. Variant
For FIN type materials, Engineering classification
(Class Type = 001) is used.
For Material Variants, material/plant level
classification linked to configurable material is used.
Sales from distribution centers is consolidated into
Consolidated Sales History @ PKMAT Level
manufacturing plant.
Sales history is not always a good predictor of future demand in MTO environments.
Therefore, potential order pipeline (the sales funnel) visibility is key to Demand Planning.
Sales Funnel
The total of opportunity quantities is reflected in the Opportunity Key Figure in the
Planning Book leveraging the same custom functionality developed to upload order history
from ECC into APO.
Deloitte Solution Highlights - Forecast Consumption
Standard SAP Forecast Consumption could not be used because Forecast and
Sales Orders are for different materials.
This avoids doubling of demand in CTM Actual demand from Sales Orders will
come from Production Orders/ Planned Orders for the Sellable KMAT.
Forward 1 bucket/ Backward 1 Bucket consumption -
M1 M2 M3 M4 M5 M6 M7
Forecast 10 15 5 10 5 0 10
Sales Order 15 5 10 0 10 0 0
Net Forecast -5 10 -5 10 -5 0 10 Step1 (Without backward consumption)
CTM used for capacity validation and finite capacity planning. CTM explodes
PDS of Planning KMAT based on object dependencies.
CTM cant run on the Sellable KMAT (as CTM cannot evaluate complex object
dependencies). Instead Planned Orders and Production Orders from ECC
(generated by MRP) are CIFed to APO to generate work center load.
Review Demand
requirement dates Vs
Supply Receipt dates
Review aggregated
and also details @
product level
Deloitte Solution Highlight- Sales Forecast
Adjustments
When CTM is run based on Unconstrained Sales Forecast, it may push out Planned Orders if
capacity is not available
Pegging Overview shows forecast pegged to planned orders. This helps planners identify
which forecast cannot be met.
Deloitte Solution Highlights Forecast Transfer to
ECC
Demand Plan at characteristic level cant be released to ECC directly. Instead consensus
demand plan is exploded using CTM to determine component requirements (in a separate
simulation version without considering resource constraints.)
Deloitte Solution Highlights Forecast Accuracy
Forecast (Statistical/ Opportunity/ Sales/ Consensus) + History transferred to BI
(different version every month).
Lagged Forecast Accuracy report developed at Product Line + Characteristic Level in BI.
Metrics include - Forecast Error/ MSE/ MAPE, etc.
Since BI cannot handle an indefinite number of characteristics, update rules are used to translate classification characteristics
(different for every product line) into 4 generic InfoObject characteristic name value pairs.
Deloitte Solution Highlight- Tool Limitation
Ref: SAP Note- 1284461
There is no possibility to release any planning data from DP to SNP with the intention to
use in SNP heuristic (Location; Multilevel; Network); SNP Optimizer. CBF planning results
can only be used in CTM and PP/DS scenario.
Complex select conditions are not supported. Multi-value characteristics are not
supported.
PDS must come from an ERP system. The supply chain should not mix VC and CDP
scenarios.
Multilevel Phantom and component duplication under phantom are not supported.
Camerons Improved S&OP-Business Benefits
bit.ly/ASUG14
Appendix
APO CBP before & after SCM 7.0