Page |1

BMO5574: Supply Chain and Logistics Management

SAP-SCM Module with Global Bike Company By Dr. Himanshu Shee Victoria University

Version 1.2

Adapted from SAP-SCM Module with Global Bike Company using ECC and SCM This manual is specifically designed for Supply Chain Management students. It is developed using SAP-ERP Release 6.0 and SAP-SCM Release 5.0 for Global Bike Company as an example. It is expected that the students should have a basic knowledge of SAP-ECC master data. by Marius Talos Marc Savard Amar Ramudhin Version 1.0

Acknowledgement: Many thanks to Mikael Dauzet and Duc PhamAnh for helping in the development of the revised manual.

Page |2

Tutorial 1
Create product group, generate forecast using SOP in ECC and transfer to SCM
The objectives of this module are: To create a product group in ECC system. To create an independent forecast for two products: FG-0010-XXX (Finished Bike) and FG-0011-XXX (Ridge Front) using SOP planning tool over the planning horizon. To use 12 months historical data to create a time-series forecast, display the interactive graphics to compare the historical values to the forecasting values. To disaggregate the forecast values in their proportional factor. To confirm planned independent requirement (PIR) data transfer to SCM.

Glossary SAP ERP: SAP Enterprise Resource Planning offers a bundle of components supporting ERP business processes. SAP ECC: SAP ERP Core Component is the central technical component of SAP ERP system landscape. SAP SCM: SAP Supply Chain Management is a complete solution that covers supply chain networking, supply chain planning, supply chain coordination, and supply chain execution.

Page |3

Table of Contents
1 Create Forecast ...................................................................................................................................... 4 1.1 1.2 Create a forecast for the finished products......................................................................... 4 Product Group ................................................................................................................................. 4 Create Product Group in ECC system ............................................................................ 4

1.2.1 1.3

Create SOP Plan for product group ........................................................................................ 8 Create SOP Plan in ECC system....................................................................................... 8

1.3.1 1.4

Transfer Plan to Demand Management .............................................................................. 17 Check PIRs values in SCM system ................................................................................ 17 Transfer Plan ......................................................................................................................... 19 Verify the transfer results in Demand Management.............................................. 21 Verify data transfer (PIR) in SCM system.................................................................. 25

1.4.1 1.4.2 1.4.3 1.4.4

Appendix ......................................................................................................................................................... 31 Useful SAP transaction codes ............................................................................................................. 31

Page |4

1 Create Forecast
1.1 Create a forecast for the finished products
SAP provides a complete set of forecasting tools that can be used in a number of sales and operations areas. The most flexible set of forecasting tools are provided in the Sales and Operations Planning (SOP) transaction. SOP is a flexible forecasting and planning tool within ECC in which sales, production, and other supply chain objects can be set on the basis of historical, existing, and estimated future data. Rough-cut planning can also be carried out to determine the capacities and resources required to meet these targets. SOP plans are transferred to Demand Management (PP-MP-DEM) in the form of independent requirements. The requirements are used in Master Production Scheduling (PP-MP-MPS) and Material Requirements Planning (PP-MRP) when planning is done in ECC. At the end of this module Planned Independent Requirements will be created on each plant for FG-0010-XXX and FG-0011-XXX over the planning horizon.

1.2 Product Group

Frequently, forecasts and plans are created for a group of products to simplify the planning process. In this exercise, you will create forecasts for a product group. The forecasts for the product group will then be disaggregated to the individual product forecasts using historical percentages. You will use a product group consisting of two products: FG-0010-XXX (Finished Bike) and FG-0011-XXX (Ridge Front). You will assume that, consistent with past sales data, FG-0010-XXX will make up 30% of sales and FG-0011-XXX will make up 70%.

1.2.1 Create Product Group in ECC system

You need to login

E12 (ERP EHP3) system to perform this task.

Menu path: SAP Menu Logistics Production SOP - Product Group - Create Transaction code: MC84

Page |5 Enter this following information: 1. Product group: Product Group XXX 2. Description: Finished Bike and Ridge Front Products 3. Plant: XXX1 4. Base Unit: ST 5. And then click Enter .

Hint: Replace XXX with your unique login ID number. Do not use 100 because it
is used as an example throughout the entire manual.

Enter this following information: Member number 1st member 2nd member FG-0010-XXX FG-0011-XXX Plnt XXX1 XXX1 Aggr. Fact. 1 1 Proportion 30 70

Page |6

Click Enter button

to confirm. Accept this information by pressing Enter

button.

The aggregation factor specifies how the material consumption quantities of the planning object are weighted in the planning level's consumption series. When running forecast, the system determines the consumption series of the planning level from the individual consumptions of its members. The system will complete the data of the materials with a description and material type.

Page |7

Question 1: What is Proportional factor? What is the sum total of the proportional
factors? Consider a product family having four products, what will be the proportional factor (in percentage) given equal weights to each product? Click on the Product grp. graphic button.

A graphic view of the product group is displayed. Navigation helps to focus on certain section of the graphical view.

Can you imagine the graphical view for a product group with 4 product types (e.g FG-10, FG-11, FG-12 and FG-13)?

Click on Quit

button.

Click on Save

button to save your product group. When you click on the save icon, .

you will get a confirmation message

Click on Back

until you reach the SAP Menu.

Using the same transaction code (MC84), repeat step 1.2.1 to create the product group in the plant XXX4 in Germany. Use the same values.

Page |8

When are you done click Back

to reach the SAP menu.

1.3 Create SOP Plan for product group

You will input historical sales data for the two products that make up this group to generate a forecast.

1.3.1 Create SOP Plan in ECC system

You need to login

E12 (ERP EHP3) system to perform this task.

Menu path: SAP Menu Logistics Production SOP Planning - For Product Group - Create Transaction code: MC81

Page |9 Enter this information: 1. Product group: Product Group XXX 2. Plant: XXX1 3. And click Enter .

On the popup Define Version, ignore proposed values and enter the following information: 1. Version: XXX + 100 For example, if your ID is 100, version is 200.

2. Version description: Product XXX, Plant 1001 3. And then click Enter .

The Create Rough Cut Plan window will appear. To create a forecast in SOP, follow the pull-down menu path: Edit - Create Sales Plan - Forecast.

P a g e | 10

In the pop-up window, choose Season trend models in the Forecast execution section and click on the Historical button.

The SAP system will create a forecast for 13 months starting this month (current).

If available, the system will use 5 years (60 months) of historical data.

Check the Seasonal trend models radio button.

The default forecast profile for SOP (SAP Profile) determines the default forecast.

Click on Historical button to create the historical data.

Question 2: What is seasonal trend model? How does it differ from Seasonal models and
trend models? Explore other models in the forecast execution section.

P a g e | 11

Accept this message by clicking Enter

if it appears.

Enter in the fields Corr.value the following 12 values. Scroll down to enter all values. The first value of historical data is for last month. T refers to current month. T-1 T-2 T-3 T-4 T-5 T-6 T-7 T-8 338 419 524 422 308 403 490 357 T-9 T-10 T-11 T-12 280 364 427 328

P a g e | 12 Click on the interactive Graphics graphs are displayed: To look at historical data chose the graphic Historical overview. icon to display graphs of historical sales data. Two

In the Interactive graphics window, click Historical (corr.) tab.

Click on Quit button

to return the screen Forecast Historical Values.

P a g e | 13 Click on the Forecasting button to display the forecast.

Forecasting procedure will test for Trend and Seasonal components. Change the value for Periods, from 12 to 4. Click on the Forecasting button.

P a g e | 14 The forecasting results are displayed. Click on the interactive Graphics .

This window shows the forecast values in tabular format. The SAP static graph provides a good comparison of the forecast to the historical data. Click on the Legend button to view the legend. Click on Cancel button to close the graphics.

P a g e | 15 You are back to the Forecast Results screen. Click Enter .

Click Save

to save your SOP plan for XXX1.

You will receive a confirmation message.

Record plan of plant XXX1 version number

.....................................

P a g e | 16 Repeat step 1.3.1 to create a forecast for the Product Group XXX in the Germany plant XXX4. Use the same forecasting settings.

Note:

for the pop up, Define Version when creating a forecast for the Product

Group XXX in the Germany plant XXX4, enter the following information: 1. Version: XXX + 200 For example, if your ID is 100, version is 300.

2. Version description: Product XXX, Plant 1004

Record plan of plant XXX4 version number

.....................................

The historical values for the Product Group XXX in the Germany plant XXX4 are: T-1 T-2 T-3 T-4 T-5 T-6 T-7 T-8 136 116 120 134 140 106 100 120 T-9 T-10 T-11 T-12 110 110 114 128

P a g e | 17

You should have forecast values in the Rough Cut Plan table.

When you are done, click Back

to return the main SAP menu.

1.4 Transfer Plan to Demand Management

The Sales plan created in SOP has to be transferred to Demand Management to create the Planned Independent Requirements.

1.4.1 Check PIRs values in SCM system Before transferring Sales Plan to Demand Management, we will check data (PIR) in SCM system. First, you have to login SCMPRD system. Once you log in, follow the transaction:

P a g e | 18 Menu path: SAP Menu - Advanced Planning and Optimization - Production Planning - Interactive Production Planning - Product view Transaction code: /N/SAPAPO/RRP3

Enter the following information: 1. Planning version: 000 (Active Model) 2. Product: FG-0010-XXX 3. Location: XXX1 4. And click Enter .

There are no PIRs for product FG-0010-XXX are displayed because the SOP Plan for FG-0010-XXX has not been transferred to SCM system from Demand Management.

P a g e | 19

To switch the product, enter FG-0011-XXX in the product field and XXX1 in the location field then click on the Refresh button.

There are no PIRs for product FG-0010-XXX at plant XXX1 as well.

Similarly, you can also check PIR values for product FG-0010-XXX and FG-0011-XXX at plant XXX4.

1.4.2 Transfer Plan Now we will transfer Sales Plan to Demand Management to create the Planned Independent Requirements.

You need to login

E12 (ERP EHP3) system to perform this task.

P a g e | 20 Menu path: SAP Menu Logistics Production SOP Planning - For Product Group - Transfer Product Group to Planning Transaction code: MC75 Enter this following information: 1. Product group: Product Group XXX 2. Plant: XXX1 3. Version: <your version number recorded above for plant XXX1> 4. Select the radio button Sales plan for material or PG members as proportion of PG. 5. And click button Transfer now. 6. Click Enter (maybe twice) to confirm if you receive the following messages or

P a g e | 21 In the same transaction MC75, you will transfer the SOP plan to Demand Management for plant Germany plant XXX4 using this following information: 1. Product group: Product Group XXX 2. Plant: XXX4 3. Version: <your version number recorded above for plant XXX4> 4. Select the radio button Sales plan for material or PG members as proportion of PG. 5. And click on Transfer now. 6. Click Enter (maybe twice) to confirm if you receive the following messages or

1.4.3 Verify the transfer results in Demand Management

You need to login

E12 (ERP EHP3) system to perform this task.

Menu path: SAP Menu Logistics Production - Production Planning - Demand Management - Planned Independent Requirement - Change

P a g e | 22 Transaction code: MD62 Enter this following information: 1. Select the radio button Product group 2. Product Group: Product Group XXX 3. Plant: XXX1 4. Select the radio button All active/inactive versions 5. And click Enter .

The planned requirements are shown in the table below. On the first period the values for FG-0010-XXX is 131 ST and for FG-0011-XXX is 305 EA. The product group forecasting for the first period (e.g. 436) was disaggregated in function of the defined proportion factors (30% for FG-0010-XXX and 70% for FG-0011-XXX). That is 30% of 436 = 130.8, rounded of to 131; 70% of 436 = 305. You can check other disaggregated values accordingly. Click on the Items tab.

Question 3: What is the value AA in the column V? and why is the box ticked against
each one?

P a g e | 23 The total quantity for FG-0010-XXX is 2195 ST and for FG-0011-XXX the quantity is 5120 EA over the planning period. Click on the blank square XXX to select the first line and click on the Sched.lines tab. next to FG-0010-

The planned quantity and value per month for the material selected are displayed. Click Back to the initial screen.

Question 4: Can you find out the total requirements value of FG-0010-XXX?

P a g e | 24 Repeat the step 1.4.2 to display Planned Independent Requirements for Germany plant XXX4 by using this following information: 1. Select the radio button Product group 2. Product Group - Product Group XXX 3. Plant - XXX4 4. Select the radio button All active/inactive versions 5. And click Enter .

The planned requirements are shown in the table below. After disaggregation, for the first period the value for FG-0010-XXX is 40 ST and for FG-0011-XXX the value is 95 EA. Check the others tab (Items and Schd.lines). When you are done click on the Back button to return to SAP Menu.

P a g e | 25

1.4.4 Verify data transfer (PIR) in SCM system

You need to login

SCMPRD system to perform this task.

An integration model has been activated to help you to transfer the Planned Independent Requirements (PIR) that was previously defined in ECC system to SCM system. Now you need to confirm PIR data in SCM system.

P a g e | 26 Menu path: SAP Menu - Advanced Planning and Optimization - Production Planning - Interactive Production Planning - Product view Transaction code: /N/SAPAPO/RRP3

Enter the following information: 5. Planning version: 000 (Active Model) 6. Product: FG-0010-XXX 7. Location: XXX1 8. And click Enter .

P a g e | 27 The PIRs for product FG-0010-XXX are displayed.

Do you see the quantities under column Rec/ReqQty (i.e. 131, 175, 142 and so on) having any relation with the quantities you had in section 1.4.2: Check ve signs? the transfer results in Demand Management. Why do the make-to-stock production quantities have

Review the PIR values for product FG-0011-XXX for plant XXX1. To switch the product, enter FG-0011-XXX in the product field and then click on the Refresh button.

P a g e | 28 The system displays the forecasting values for the second finished product FG-0011XXX for plant XXX1.

Where did you see before these values under the column Rec/ReqQty (i.e. 305, 408, 332 and so on)?

In order to review the PIR data for product FG-0010-XXX and FG-0011-XXX in plant XXX4, enter either FG-0010-XXX or FG-0011-XXX in the product field and XXX4 in the location field and press Refresh button.

P a g e | 29

Match the product FG-0010-XXX make-to-stock quantities in column Rec/ReqQty with the previously obtained PIR values in section 1.4.2.

Match the product FG-0011-XXX make-to-stock quantities in column Rec/ReqQty with the previously obtained PIR values in section 1.4.2.

P a g e | 30

Question 5: This is optional exercise. Try to check Make-to-Stock Production of the

semi-finished product SF-0010-XXX and the raw material RM-0010-XXX in plants XXX1 and XXX4. Do they have any planned independent requirements?

When you are done, click Back

to the main SAP menu.

End of Tutorial 1

P a g e | 31

Appendix
Useful SAP transaction codes
(SAP Transaction code is a short cut key attached to a screen. Instead of using SAP easy access menu we can also navigate to a particular screen in SAP by entering the transaction code (T-code for short) in the command field of the standard toolbar.)

TCODE MC84 MC85 MC86 MC81 MC75 MD62 /N/SAPAPO/RRP3

Purpose Create Product Group Display Product Group Change Product Group Create SOP Plan Transfer Planning Data to Demand Management Verify the transfer results in Demand Management Verify data transfer (PIR) in SCM system