Multilevel Supply Planning and Capable-to

www.hcltech.com
Multilevel Supply
Planning and
Capable-toPromise for an
advanced memory
manufacturer
Executive Summary
The supply planning process for Advanced Memory Manufacturer includes master
planning, subcontract planning and purchasing team. Supply planning will be conducted
for short to medium term for 0 – 6 months. The supply plan includes finished goods, semifinished / component, and raw materials, Supply planning is mainly carried using Capable
to Match (CTM) tool with in Supply Network Planning (SNP) and non-critical raw materials
are planned using Materials Requirements Planning (MRP) and Long Term Planning (LTP) in
Enterprise Central Component (ECC). Supply planning results are transferred to Business
Warehouse (BW) and ProClarity for reporting.
Supply planning is carried out once a week on Tuesday evening in simulation version
using CTM for 6 months. Supply planning is capacity, component and critical raw material
constraint. CTM prioritizes the demand based on types of demand and delivery date. After
CTM planning data is transferred from APO to Business Warehouse (BW) and to ProClarity.
Supply planning results are transferred from simulation version to active version once a
week and any adjustments required for supply planning will be carried out at the same
time.
Supply Planning results are used for executing the in-house manufacturing, subcontract,
component and raw material planning.
Master Data, Stock and Execution data are transferred from ECC to APO. Execution data
is maintained for Advanced Memory Manufacturer in a legacy system and subcontract
manufactured data in Serus a third party system. All data is transferred from ECC to APO
using a Core Inter Face (CIF). CTM created planned orders and purchase requisitions are
transferred from APO to ECC using CIF.
CASE STUDY
Client Business
Advanced Memory Manufacturer Technology designs and builds some of the world’s
most advanced memory and semiconductor technologies for Products from computing,
networking, and server applications, to mobile, embedded, consumer, automotive, and
industrial designs
Business Need
• Integrate supply planning with ECC for master data like
–– Locations (Plants and Vendors)
–– Products
–– BOM
–– Work Centers
–– Routing
• Supply planning should support product can be manufactured in multiple Advanced
Memory Manufacturer locations and subcontract vendor locations based on priority
and quota
• Supply planning to support time phased BOM and Routing
• Integrate the supply planning system to multiple systems like to get execution data
–– Legacy system- to get real time manufacturing data for in house manufactured
products
–– Serus – to get real time manufacturing data for subcontract vendor manufactured
data
–– LPI – to get component availability after 6+ months
• Integrate supply planning system to demand planning system to get forecast
• Integrate supply planning system to global Available To Promise (GATP) system to
provide statement of supply to commit sales order to the customer
• Integrate supply planning system to BW and ProClarity system for reporting
• Run supply planning engine in simulation version to keep minimum interruption to GATP
order confirmation process
• Publish the supply planning results from simulation version to active version before
work day starts in Asia on Friday
• Supply planning engine should support multi-level BOM’s and routing.
• Supply planning engine to support following planning runs
–– Capacity, Component and critical raw material feasible plan for execution plan
–– Capacity feasible plan for non-critical raw material planning
–– Unconstraint plan for component and long term capacity planning
–– Run what-if planning varying capacity, component and master data
Solution Elements
• SAP APO SNP (Supply Planning)
• SAP ECC (ERP)
• SAP APO DP (Demand Planning)
CASE STUDY
• Legacy system for in house WIP
• Serus third party system for Subcontractor location WIP
• Available to Promise using GATP (Global Available to Promise)
Outcome
• Executable supply plan for manufacturing, subcontracting, and purchasing
• Commit sales orders based on realistic supply plan
• Integration with demand plan
• Integration with execution systems
• Integration with ECC for master and transaction data
• Minimum interruption for customer order creation due to planning in simulation version
• Capability for what-if analysis based on capacity, component and master data
• Improved data integrity and accuracy between the planning system, execution system
and reporting system
Unique Proposition
Knowledge of semi-conductor business
Opportunity/ Challenge
(Business impact, users, customers, vendors impacted)
• No integrated statement of supply produced for manufacturing planning but available
thru multiple other formats and sources
• No optimized supply plan considering alternate sources of Supply
• Less visibility to capacity utilization on critical resources to enable better capacity
planning
• No real time order commits possible since the supply plan is not complete taking into
account the finished goods and component inventory both in house and subcontracted
• No ability to perform capacity and optimize supply plan thru simulations. Currently
takes more time and manual effort to re-adjust the supply plan and capacity due to long
wait times of MPS runs
• Limited ability to perform long term capacity planning by comparing constrained and
infinite capacity based planning runs
Technical Design
(design elements, architectural elements)
• Supply planning in multiple locations and subcontract vendor locations based on
priority and quota
• Integrate the supply planning system to multiple systems to get execution data
–– Legacy system to get real time manufacturing data for in house products
–– Serus to get real time manufacturing data for subcontracted products
–– LPI to get component availability for next 6 months
CASE STUDY
• Integrated with demand planning system to get forecast
• Integrated with global Available To Promise (GATP) system to provide statement of
supply to commit sales order to the customer
• Integrated with BW and ProClarity system for reporting
• Run supply planning engine in simulation version to keep minimum interruption to GATP
order confirmation process
• Publish the supply planning results from simulation version to active version before
work day starts in Asia on Friday
• Support multi-level BOM’s and routing.
• Supply planning engine supports the following runs
–– Capacity, Component and critical raw material feasible plan for execution
–– Capacity feasible plan for non-critical raw material planning
–– Unconstrained Supply plan for component and long term capacity planning
–– What-if scenario planning based on varying capacity, component and master data
WIP
(In-house Mfg)
Legacy
System
Serus
APO DP
(3rd party sys)
(Forecast)
WIP (Subcon)
SAP ECC
Master Data
Stock/ WIP
(MRP & LRP)
Supply Plan
APO SNP
(CTM)
Plnd Orders/
P. Reqs
Order
Commits
(Finished Goods,
Components, Critical
Raw Mtls)
GATP
Supply Plan
SAP BW
Reports
(Non-Critical
Raw Mtls)
ProClarity
Long Range
Supply Plan >
6months
Contact: [email protected]
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