SAP S/4HANA 1709

Release Highlights
Peter Mravčák
Solution Architect
SAP Slovensko s.r.o.
PUBLIC
 SAP S/4HANA
Evolution
 Oil and Gas with SAP S/4HANA
 Industry to core – Retail
 Consistent SAP Fiori User Experience
 Optimized Portfolio and Project Management
 Embedded Software in Product Development
 Industry to core
- Discrete Industries and Mill Products (DIMP) -  Entire SAP S/4HANA Finance Scope included
 Effective Order Management and Billing  Plan to Produce in ONE System
(Production Planning and Detailed Scheduling – PP/DS)
 Efficient Procurement
 Embedded SAP Extended Warehouse Management
 Accelerated Material Requirements Planning
 Integrated Quality Management
 Real-time Inventory Management and
 advanced Available to Promise (aATP)
Material Valuation
SAP S/4HANA, on-premise edition 1511 SAP S/4HANA 1610
© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC * Key innovations do not reflect licensing
 Industries to Core – SAP Agricultural Contract
Management
 SAP Commercial Project Management with S/4HANA
 Commodity Management
 Sales – Electronic and Digital Payments
 GRC – Legal Control and Export Classification
 Consumer Products – Catch Weight Management
 SAP S/4HANA Central Master Data
 Finance – Machine Learning for automation capability
 QM – Manage usage decisions and Analytics for
Quantitative Results
 EAM – Report and Repair Malfunction
 PLM – Visual Manufacturing Planner and
Recipe Management
 Maximize Fiori Experience with
SAP Fiori Overview Pages
 Predictive Analytics as a system of intelligence
– Contract Consumption in Procurement –
 Embedded Transportation Management
 Demand Driven Manufacturing
 Manufacturing Extension for Complex Assembly
Industries
 Advance Variant Configuration
SAP S/4HANA 1709
2
SAP S/4HANA 1709
Key Innovations

Embedded Transportation Management Manufacturing Manufacturing

- Basic Shipping and Data Harmonization - Demand Driven Manufacturing - Engineering Cockpit
- Integration in extended warehouse mgmt. - Advance Variant Configuration - Extension for Complex Assembly Industries

Consumer Products Industry Finance Quality Management

- Machine Learning with SAP Cash Application - Manage usage decisions
- Catch Weight Management for System
Integration; Financial Planning - Analytics for quantitative results
Conversion

Commodity Management Procurement Extended Warehouse Management

- Extending pricing with the commodity - Centralized purchase requisitions through hub - advanced Labor Management
pricing engine deployment - Pallet Planning
- Machine Learning for Contract Consumption

Industry to Core Enterprise Asset Management PLM

Retail / Wholesale - Report and Repair Malfunction - Visual Enterprise Generator Conversion
- Wholesale Fashion enablement; Order - Breakdown Analysis - Recipe Management and Recipe finder
allocation; Segmentation

Service Core (CRM Add-On)* -

Sales
- Migrate installed base CRM with Maximize SAP Fiori Experience
- Electronic and digital payments with Integration
eliminated middleware, harmonized with Payment Hub - SAP Fiori Overview Pages
data models

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New innovations Existing & enhanced innovations 3
* First delivery planned with SAP S/4HANA 1709 FPS01 in 2018
SAP S/4HANA 1709
User Experience Enhancements

SAP Fiori 2.0

 UX evolution
 New Fiori apps

Additional SAP Fiori Overview Pages:

 sales management
 project profitability
 inventory management
 treasury management

Value Proposition
 Immediate, domain-specific insights on the tasks that need your attention.
 Ability to take quick actions to solve issues.
 Easy forward navigation to related applications.

Capabilities
 Very flexible selection criteria available.
 Drill down on detail KPIs.
 Easy-to-use formats with charts, lists, and tables on a single page.
© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 4
SAP S/4HANA 1709
New release including new technology stack

Active consumption of new SAP HANA 2 features with

SAP S/4HANA 1709
 Active/Active
= offload analytical workload to SAP HANA System Replication
(secondary)
 SAP S/4HANA scale-out
= Run largest S/4HANA systems with application-optimized data
distribution
Free IT to Leverage All Data Discover Insights Develop Solutions
Focus on Innovation to Foster Innovation to Drive Innovation that Power Innovation

Database Management Data Analytical Application

Transformed Management Intelligence Development Transformed
Transformed Transformed
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Vybrané inovácie v oblasti plánovania a riadenia výroby
SAP S/4HANA 1709 OP

PUBLIC
• SAP S/4HANA for Manufacturing planning and scheduling
aka. PP/DS

• Demand-Driven Replenishment
aka. DDMRP

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SAP S/4HANA for Manufacturing planning and scheduling
Comprehensive Plan to Produce in ONE System

MRP Run +
 PP/DS planning and scheduling features available Demand
Constrained
Interactive Release to Production Monitor &
mngt. Planning Production Execution Control
Planning
in SAP S/4HANA
 Constraint-based capacity planning, scheduling & optimization
 Heuristic framework
 Industry-specific features (RPM, MMP & CBP)
 Simulation versions and transactional simulation
SAP S/4HANA 1610+
 Simplicity and Seamless Integration
Master data
 One coherent application, consistent look at feel, intuitive navigation
One MRP
PP/DS is an integral part of S4/HANA (not an add-on, not a side-by-
side installation) ERP PP/DS
CIF
 Simplified master data and integration model maintenance

 Utilize HANA (HANA only) HANA Platform incl. LiveCache

 Fast MRP [ One MRP for infinite planning ]
 liveCache is integral part of HANA, just one database to manage

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Advanced Production Planning

 Multi-level production planning Demand

MRP Run +
Interactive Release to Production Monitor &
Constrained
mngt. Planning Production Execution Control
 Order Pegging Planning

 Heuristics framework:
 Use delivered advanced planning heuristics
(40+)
 Develop own heuristics
 Industry specific:
 Automotive (RPM, MMP)
 Mill (CDP)
 Process (Res.networks, tanks,
campaigns…)
 Supports various manufacturing models:
 Make to Stock
 Make to Order
 Engineer to Order
…
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Detailed Scheduling & Optimization

 Forward & Backward (multi-level) Constrained

Scheduling
 Constrained scheduling
 Scheduling modes
 Optimal sequencing
 Scheduling Optimizer
 Flexible graphical prod.operations scheduling
 Backlog Resolution
 What-if Analysis & Simulation
 Configurable exception Alert Monitor

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One MRP
One MRP
Part of MRP-Live

MRP Run with S/4 core & PP/DS materials

PP/DS finished DEMO_ERP_FIN ERP finished

DEMO_PPDS_FIN
product

+
product

DEMO_PPDS_SEMI DEMO_ERP_SEMI DEMO_ERP_SEMI1 DEMO_ERP_SEMI1

PP/DS semi finished ERP semi finished ERP semi finished ERP semi finished

Benefits
 One MRP planning run for
 classic MRP planning logic and
 advanced PPDS heuristics
 One low level code calculation

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One MRP cockpit

• All materials (S4 and PP/DS)

• Common list of shortages or uncovered demands
• Special detail views for PP/DS-relevant materials
• simulation capabilities and
• what-if analysis

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Combined Order Support
Order Combination Concept

Business Background
• In the mill industry, different products may go
through common process steps. It is desirable to
group and execute them together. This optimizes
resource usage and reduces order handling for the
user

Solution
• Common operation sequences in different orders
can be combined in one production order
• Combination can be for selected operations (except
process orders) or entire orders
• Operations to be combined must have same base
unit of measure and no gaps in between
• The combination steps are: selection, combination
and scheduling
• With 1709, combined orders can also be planned in
embedded PP/DS
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Capacity Utilization Object Page
Monitor Capacity Utilization
Navigation

Filtered
Variants
List

Detail
Page
Navigation

Navigation to
Resource Plng Table
or Scheduling Board

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Capacity Utilization
Object Page

Change
Views

Overview Section
with Utilization
Chart

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Capacity Utilization
Page Overview

Materials
Chart

Details of a
section

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Capacity Utilization – Page Overview

Order Types
Chart

Details of a
section

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Capacity Utilization
Page Overview

Activities
Chart

Overview Section
Order Type Chart

Details of a
section

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 Capacity Utilization
Shift Table

Shift level
Resource
Utilization

Shift Table
Section

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Capacity Utilization
Shift Table (in Edit mode)

Choose
Shift Details Shift Actions

Change
Number of
Change Capacities
Shift Time

Change
Utilization %
Save/Cancel
Changes

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Production Scheduling Board
 Settings can be saved
in variants

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 Utilization display

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 Side Panel
Opened via context menu or information button

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 Easy view of
Product Number
and Description

Color palette for

Activities

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 Undo option
for some scheduling
actions

Feedback for actions

through messages
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• SAP S/4HANA for Manufacturing planning and scheduling
aka. PP/DS

• Demand-Driven Replenishment
aka. DDMRP

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 30

Demand Driven Replenishment in SAP S/4HANA

PUBLIC
DMRP Philosophy - A New Planning Paradigm
Enable stable material Flow

Core principles of FLOW:

 Dampening the effect of variation by decoupling
lead-times through buffers & identifying placement and
size of buffer(s) to ensure
– the shortest possible lead-time andoptimal amount of
inventory
to deal with variation at minimum cost.
 Pull replenishment on actual demand, not forecasts.
– the best use of our assets is to make what is needed
– ever increasing volatility in demand makes accurate
forecasting challenging
 Achieving visibility and prioritization of activities by
exposing downstream inventory and demand status to
upstream sources to facilitate demand-driven prioritization
of supply.

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DDMRP Methodology
The Steps

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Demand-Driven Replenishment
in SAP S/4HANA 1709

SAP Labs Preview

SUBJECT TO CHANGE
SAP Demand-Driven Replenishment
Planned End-to-End Process Flow in S4HANA

Analytics Buffer Positioning

(incl. Basis for Feedback) (Strategic) Individualized

Average Daily Usage DD with buffer

5 1
Ad-hoc Prod.

Lead Time
Classification

4
Replenishment 2
Execution Buffer Level Management
(Operational)
3 Var(LT)
Lead time
Stock/ Stock+ Propos e d
Material Stock Le ve l Orde re d orde r qty
FIO-NAV-0815 3 13 30 Reorder point
FIO-PST-1501 6 16 15
FIO-MST-3006
FIO-PRD-0807
55
22
135
56
0
0
Replenishment
FIO-NAV-0101 23 23 127 Planning Safety stock
FIO-NAV-0404 44 44 26
FIO-MST-0821 25 25 0
FIO-PRD-0822 88 88 0
t
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 SAP Labs Preview
SUBJECT TO CHANGE
SAP Demand-Driven Replenishment
Solution Overview

Fiori Launchpad

Business Applications with User Interaction Configuration & Setup Apps

Mapping to the End-to-End Process

2 3 4 5 1 1 2

Review and adopt the Review the current Review the current Classify products to Maintain MRP type D1 Calculate decoupled Calculate buffer level
system’s buffer level planning situation execution situation identify possible to define buffers on lead time and LT proposals for manual
proposals based on the net flow based on the on-hand decoupling points and product plant classification to (and automated)
position stock status to prepare buffer profile combination prepare buffer adoption
assignment calculation
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Prepare Buffer Positioning
Product Classification for Demand-Driven Replenishment

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Buffer Positioning by MRP Type Assignment
New MRP Type = D1 (Demand-Driven)

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Decoupled Lead Time
Input for buffer sizing

2
Individualized
ATO Production

2
6 Individualized
9 2
(Local)
MRP DDR with (strategic) buffer
Ad-hoc Prod.
(Local) 8 Decoupling
8 4 MRP
4 3 8 (Local) through strategic buffer positioning
MRP
Demand-Driven
Replenishment
3 Time-dependent buffer levels
3 4
for shock absorption

3 7
6
6 (Local) 2 Individual Lead Time
MRP 4 3
8 Decoupled Lead Time

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Buffer Sizing
Based on Decoupled Lead Time & DLT Classification

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Buffer Sizing
Calculation Rules

SAP Material Master Demand Driven Institute

BLUE OTOG – Over Top of Green

Maximum Stock TOG – Top of Green
[MARC-MABST]
= Yellow x Lead Time Factor (100-20%) OR 4.
GREEN = Min Order Quantity OR
Reorder Point = Average Demand x Cycle Time
TOY – Top of Yellow
[MARC-MINBE]

YELLOW = Average Daily Usage x Decoupled Lead Time 1.

Safety Stock TOR – Top of Red

[MARC-EISBE] RED
BASE = Yellow x Lead Time Factor (100-20%) 2.
Min Safety Stock
[MARC-EISLO] RED
SAFETY
= Red Base x Variability Factor (20-100%) 3.

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Buffer Sizing
Create Buffer Level Proposals

SAP Material Master Demand Driven Institute

BLUE OTOG – Over Top of Green

Maximum Stock TOG – Top of Green
[MARC-MABST]

GREEN

Reorder Point
TOY – Top of Yellow
[MARC-MINBE]

YELLOW

Safety Stock TOR – Top of Red

[MARC-EISBE] RED
BASE
Min Safety Stock
[MARC-EISLO] RED
SAFETY

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Manage Buffer Level
Worklist - Review and Adopt Buffer Level Proposals

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Buffer Proposal Details
Buffer Zones & Zone Adjustment Factors

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Buffer Proposal Details
Buffer Levels and On-Hand Performance

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Basics
Operational Replenishment: Net Flow Position, Spike Handling

On-hand balance (On-hand stock)

Replenishment Proposal  Quantity being physically in stock

On-order stock (Open Supply)

BLUE
Max  Total of all outstanding replenishment orders
Stock 10.000

GREEN Actual demand (Demand)

Proposal (3.128)
Reorder  Sales orders past-due or due today + qualified spikes
7.500
Point
Net Flow Position (6.872)
Sales Order Quantity
Demand, in particular Spikes
YELLOW Open Supply (3.358)
Demand (540)
TOG
On-Hand Stock (4.054)
Safety Spike Threshold = (e.g.) 50% x TOR
3.200 TOY
Stock RED
BASE TOR Spike
RED
SAFETY
0
time
(Past) Due SO’s Today Spike Horizon

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 SAP Labs Preview
SUBJECT TO CHANGE
Monitor the Planning Priority
(Net Flow Position vs. Reorder Point)

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SAP S/4HANA Demand-Driven Replenishment
Replenishment Execution
 SAP Labs Preview
SUBJECT TO CHANGE

Monitor the On-Hand Buffer Status

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Recap
Why DDMRP?
DDMRP – Achieving outstanding results

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Source: Demand Driven Institute 55
Ďakujem za pozornosť
Kontakt:
Peter Mravčák
Presales Solution Architect

peter.mravcak@sap.com