How to Understand Synchronized Integrated Factories with Stock Transfers

Executive Summary The background of continuous flow management between facilities. The implications for supply and production planning for continuous flow. Deciding upon what should set the control signal for movements between integrated factories in a continuous flow environment (the truck’s schedule or the supply planning system). Continuous Flow Manufacturing and Integrated Factories The flow of…

Where Material and Procurement Planning Occurs in SAP ERP and APO

Executive Summary Material and procurement planning is a fundamental workflow within SAP ERP and APO. There are important differences to understand between purchase requisitions between SAP ERP and APO. The PO creation process is different when APO is combined with APO. There are alternatives in APO for both production order conversion and stock transport order…

|

Is Multi Sourcing Supported with CTM or even SNP?

Executive Summary Multisourcing is how a planning system can compare and choose from multiple sources of supply. This functionality is supposedly supported by SAP SNP when the optimizer is used. Other important areas to control are priorities and quota arrangements. Introduction Multisourcing is the ability of a supply planning system to choose between alternate sources…

|

Can CTM Be Used to Create an Unconstrained Plan?

Executive Summary How can CTM be used for unconstrained as well as constrained planning? Where are the configuration settings that would have to be changed to run CTM in an unconstrained mode Introduction The ability to perform constrained planning is a major motivating factor for companies to use CTM. Constrained planning is a major motivator…

How to Best Understand Order Firming and Order Fixing in SAP APO

Executive Summary We cover the purpose of order firming and order fixing and how they work and are set up in the Planning Book. Answering the question around “semi-firm.” In SAP, CTM has order fixing. Introduction to Order Fixing Fixing is a way to insert stability into the forecast adjustment process. In this article, you…

Understanding 3rd Party Processing in SAP APO

Executive Summary 3rd party processing is how 3rd parties are managed in SAP APO for converting sales orders into an external requisition. There are important steps in the configuration process for 3rd party processing. Introduction This is the definition of third party processing. This is the ability of a sales order to be entered in…

How to Use SubContracting in SAP APO

Executive Summary Subcontracting is a specific process where manufacturing is performed outside of the company’s plants. There are several subcontracting process flows. There is extra complexity to subcontracting that must be understood before implementing subcontracting in a system like APO. Subcontracting can be considered a type of bi-directional planning. Introduction Subcontracting, in supply chain management,…

My Experiences with Dynamic or Extended Safety Stock

Executive Summary Dynamic safety stock in ERP and external supply planning systems is commonly desired to be activated by companies. Extensive testing and observations illustrate that the standard dynamic safety stock calculation is incorrect. In this article, we cover many topics around dynamic safety stock. Introduction to Dynamic Safety Stock This article covers the topic…

|

Accenture Writes a Good Technical Paper on DP and SNP

Executive Summary What are Accenture’s Papers like Historically? What is the Primary Motivation of White Paper or Technical Document Writing? Why is this Paper an Exception? The History of Accenture Documentation Accenture only very rarely publishes technical documentation. That is why their research can’t be considered, as they will alter it to increase sales. This…