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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.

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

Page 1

„ destination location
„ priority

4. 5. 6. 9.The Application Model prioritized demands categorized supplies Supply Chain Network 1. 7. 2. 10. 3 The Solution categorized supplies Capable-to-Match prioritized demands 1. 10. 9. 7. 4. 6. 8. 3. Production Master Data 11. 2. 8. 5.  SAP AG CTM / Dr. 4 Page 2 11. Joachim Altmeyer 3/5/99 Slide no. Joachim Altmeyer 3/5/99 Slide no. multi-site capacity check and check of transportation capabilities  SAP AG CTM / Dr. 3. .

Joachim Altmeyer 3/5/99 Slide no.CTM Engine: Capacity / Supply Constraints demand no capacity t no supply success  SAP AG CTM / Dr. Joachim Altmeyer 3/5/99 Slide no. 6 Page 3 . 5 CTM Engine: Determination of the Solution Tree z Search „ by tree exploration „ using backtracking z Constraint Propagation „ truncation of the search tree to reduce the search space t  SAP AG CTM / Dr.

Data  SAP AG CTM / Dr. 7 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 R (production / external procurement) z Co-Products z Resources z „ possibility to model bin splits R „ time-continuos (single-activity/multi-activity) „ bucket resources Yield „ for production lines (sequences of process steps )  SAP AG CTM / Dr. 8 Page 4 R . Joachim Altmeyer 3/5/99 Slide no. Joachim Altmeyer 3/5/99 Slide no.

10 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 . Joachim Altmeyer 3/5/99 Slide no. Joachim Altmeyer 3/5/99 Slide no.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) t  SAP AG CTM / Dr. 9 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  SAP AG CTM / Dr.

due date 10. product priority 9. demand type 7. Joachim Altmeyer 3/5/99 Slide no. 12 Page 6 demands . „ based on z Š Š Š Š 6. Prioritization 4. 11. Pre-processing step  SAP AG CTM / Dr. (from APO Demand Planning) z 2. 5. 11 Demand Prioritization z prioritized demands Demands from liveCache „ forecasts 1. customer priority 8. Joachim Altmeyer 3/5/99 Slide no.CTM Process  SAP AG CTM / Dr. „ sales orders 3.

13 CTM Engine: Constraint Programming z Huge amount of data and large search space „ dedicated server „ each demand is treated separately strategies strategies „ pull approach Š z z constraint constraintmodel model basic search basic searchgoals goals based on customer needs downstream Approach „ constraint programming „ goal-oriented programming Based on ILOG’s C++ Optimization Libraries  SAP AG CTM / Dr. Joachim Altmeyer 3/5/99 Slide no. Joachim Altmeyer 3/5/99 Slide no. 14 Page 7 CTM CTMApplication Application Model Model .Supply Categorization z Supplies from liveCache „ inventory „ procurement orders Š supplies categorized supplies purchase orders/ requisition “excess” „ manufacturing orders z Š Š production orders “normal” planned orders Categorization based on „ supply limits „ for each location z “target” „ for each product Pre-processing step  SAP AG CTM / Dr.

Joachim Altmeyer 3/5/99 Slide no. 15 CTM Engine: Partial Shipment/Partial Satisfaction z partial shipment Partial shipment „ a demand can be partially satisfied (shipped) in time (rest: late demand) t „ time frame can be specified z 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 t  SAP AG CTM / Dr.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  SAP AG CTM / Dr. 16 Page 8 . Joachim Altmeyer 3/5/99 Slide no.

. 18 Page 9 demand production “virtual” demand transport z demand .CTM Engine: Late Demand Strategies z domino effect Domino effect 1. 3. each postponed demand can influence the due date of the next demand z t airline reservation Airline reservation 1... „ planning immediately with 2. postponed due date 3. „ shift to the end of the demand list 2. Joachim Altmeyer 3/5/99 Slide no. t  SAP AG CTM / Dr. „ possible result: 4. „ consume supply „ production „ transport supply direct assignment “virtual” demand .. 5. 17 CTM Engine: APO Decision Cube z decisions Three different decisions being applied recursively . Joachim Altmeyer 3/5/99 Slide no. build the APO Decision Cube „ BOM explosion versus consuming supply plant B demand plant A APO Decision Cube „ alternative products „ alternative plants  SAP AG CTM / Dr. 4.

a complex Supply Chain Network of alternative flows is built out of the huge amount of decision alternatives . 19 Selection of the Process Flow z Alternatives for „ processes „ production plants z „ transport lanes In many business scenarios... Restricted Supply Chain Network Supply Network Constraints „ restrictions of production sites (determination of qualified sites) . Joachim Altmeyer 3/5/99 Slide no...Outlook ‘99  SAP AG CTM / Dr. 20 Page 10 . but can be reduced by Supply Network Constraints  SAP AG CTM / Dr. Joachim Altmeyer 3/5/99 Slide no.

Combination of Product / Plant Substitution 3. „ sequences of substitutions „ demand dependent 1.Preferences Based on Quotas North NorthAmerica AmericaRoute Route z Possibility to use quotas South SouthAmerica AmericaRoute Route 80 % North America Route 80 % 20 % 20 % South America Route  SAP AG CTM / Dr.  SAP AG CTM / Dr. 22 Page 11 . 3. Joachim Altmeyer 3/5/99 Slide no. Plant substitution „ sequences of substitutions „ demand dependent 2. Joachim Altmeyer 3/5/99 Slide no. 21 Product / Plant Substitution by Rules especially especiallyfor for customer customerAA product substitution plant substitution z z z Product substitution 1. 2.

23 Business Process  SAP AG CTM / Dr. 24 Page 12 solutions . Joachim Altmeyer 3/5/99 Slide no. Joachim Altmeyer 3/5/99 Slide no.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  SAP AG CTM / Dr.

Joachim Altmeyer 3/5/99 Slide no. Joachim Altmeyer 3/5/99 Slide no. 26 Page 13 . 25 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 z 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  SAP AG CTM / Dr.CTM Complements SNP z 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 Š Š Š release DP to SNP CTM planning run release SNP to DP „ re-planning and incremental planning  SAP AG CTM / Dr.

semiconductor companies. 28 Page 14 . wafer) z „ steel and paper „ laptop and PC Solution for companies „ which want high customer satisfaction „ with many constraints „ finite capacity planning „ focus on production  SAP AG CTM / Dr.g. 27 Demo  SAP AG CTM / Dr.CTM Customer Profile z CTM focus on grading and assembly production processes „ small set of components „ High-Tech industries (e. Joachim Altmeyer 3/5/99 Slide no. Joachim Altmeyer 3/5/99 Slide no.

CTM Demo: Standard Example Phone CTM1 Frankfurt Core Ship CTM3 Austin Die  SAP AG CTM / Dr. 30 Page 15 CTM2 Madrid CTM4 Palo Alto . Joachim Altmeyer 3/5/99 Slide no. 29 CTM Demo: Standard Example z z z z z Master Data CTM Screen Demand Prioritization Supply Categorization CTM Run „ Master Data Checker „ Demand Prioritization „ Supply Coordination „ CTM Engine „ CTM Messages „ CTM Result  SAP AG CTM / Dr. Joachim Altmeyer 3/5/99 Slide no.