GLOBAL AVAILABLE-TO-PROMISE WITH SAP FUNCTIONALITY AND CONFIGURATION PDF
-SCM Business Processes in Planning (SAP SCM) -Outlining the Functionality of Global Available-to-Promise (Global ATP) -Configuring the Multilevel ATP Check (MATP) Procedure in Global Available-to-Promise (Global ATP). Sappress Global Available to Promise With Sap - Download as PDF File .pdf), Text File .txt) or read online. Functionality and Configuration Basic Configuration and Master Data Required for Global ATP. Alert Monitor Global Available-toPromise Transportation Planning and Vehicle Scheduling Figure illustrates. Specifically, this means that information has to be made available across Global ATP is one of the central methods of SAP APO that utilizes SAP liveCache .
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Sandeep Pradhan and Pavan Verma. Global Available-to-Promise with SAP®. Functionality and Configuration. Bonn Boston. This practical guide teaches you how to implement and configure global ATP in SAP SCM to your company's order Global Available-to-Promise with SAP: Functionality and Configuration E-book formats: EPUB, MOBI, PDF, online. Master core functionalities and configuration techniques • Explore how global ATP works and integrates with other key SAP software • Optimize.
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This offers seamless integration of business processes. The ATP check can also be performed for replenishment stock transport orders. Global ATP Capabilities 2.
Global ATP offers the following key features in its portfolio: Optimizes transportation loads and minimizes transportation costs. Giving reliable and accurate information concerning when customer orders will be delivered increases customer satisfaction and creates repeat business. E Product allocation to control commitment to key customers This feature allows distribution companies to distribute and sell their products This feature helps business determine reliable loading and delivery dates for the customer orders.
E Multilevel ATP to trigger bill of materials BOM explosion and perform component checks This feature is helpful for business scenarios that require products to be configured for individual customers. It is commonly used in the make-to-order business scenario. E Backorder processing BOP to manage the order portfolio As a critical step in order confirmation to customer orders.
Allocations for distribution can be defined on various criteria such as distribution channels. All of these global ATP functionalities offer the following key benefits to customers: E Less time to give reliable availability check results on the current supply chain situation Prevention of over-commitment to customer orders Ability to search supply in multiple locations to reduce overall supply chain costs Effective management of backlog to process all the sales orders Opportunity to prioritize customers and realign order commitments during constraint supply chain situations E E E E E Transportation and shipment scheduling Involves backward scheduling to determine the requested material availability date based on the customer-requested delivery date and then forward scheduling to determine the committed delivery date based on the committed material availability date.
Sappress Global Available to Promise With Sap
This is commonly used in the make-to-order scenario where the sales orders is pegged with the production order for order fulfillment. Global ATP can also create stock transfer orders between the two locations during the substitution process. During production capacity constraint or product launch. With product allocation.
Table 2. The feature is available in SAP ERP with the use of a standard or self-defined info structure in the flexible planning module. With rules-based ATP.
Product substitution in case of product shortage situations. Business Process Requirement Availability check across supply chain network locations. Integrate production and ATP check functionality. Global ATP simulation extends to both product availability checks based on the method designed and also on the back-order processing. Product availability simulation. Continuous flow output consideration in process industries where the products are available in different stages with long-running manufacturing process orders.
Available in multilevel ATP functionality. Check the availability of lowerlevel components during the ATP check. Not available. Consideration of reverse logistics in the availability check. Available in capable-to-promise CTP functionality. Global ATP supports reverse logistics by considering customer returns as planned receipts.
Global ATP offers the feature to consider material availability by taking account of the continuous flow of production output with proportional distribution of ATP quantity in different time buckets. Scope of check receipts. If the ATP quantity is not available. The next section explains the basic method in global ATP. If the company has a simple distribution network. As shown in Figure 2. If the quantity cannot be confirmed fully in the same date. Is there a checking horizon defined?
The following three different basic ATP methods are explained in the following sections: The scope of check not only defines which elements or categories are considered in the availability check.
This method can be used in any industry using the make-to-order MTO scenario. The ATP result is a simple calculation of the following: We will look at the basic ATP method in this section. The scope of check defines the requirements. Global ATP also supports transportation and shipment scheduling to determine material availability date backward and forward. This functionality allows for proper For these products.
A good example is in the steel or pharmaceutical industries. Sales Order. While the requirement and receipts An example of technical architecture is shown in Figure 2. Global ATP integrates with SAP DP to deliver the allocation capabilities based on characteristics combinations replicating marketing hierarchies for allocating the supply. When a product is in short supply. Perform the availability check. Perform the product allocation check. Distribution decisions are made based on distribution channels.
Allocation planning addresses the problem by restricting the allocation to specific customers or other criteria such as customer groups or regions. The lesser of the ATP and available allocation will be confirmed in the sales order item.
This situation is usually encountered during material or capacity constraint. Product allocation planning addresses these business situations by restricting the first in. The strategy has gained business acceptance in environments where high-volume items. The availability check with product allocations primarily follows two steps: This form of technical architecture is commonly adapted for global consolidation and minimizes the cost implication on hardware and maintenance.
This method is widely used in high-tech. The customer groups are further broken down into individual sold-to party customers. A percentage quota can be maintained at the customer level for supply distribution. A and B. Demand Planning is used for maintaining the allocation percentage. The sales order is checked against the characteristic combination criteria for an existing product allocation quantity.
The characteristic combinations are populated to define the hierarchy allocations and serve as master data for the quota allocation maintenance. For a typical industry such as a PC manufacturing company. During the initial ATP check. Similar to product allocation. The check sequence of either method is done via the check instruction configuration. Building on these basic methods. During sales order For example. This feature is part of the product allocation in the global ATP. The product allocation first determines the resulting confirmed quantity.
The advanced availability check methods include the following: E Combination of basic methods To distribute its products proportionately in the market. CTP triggers product planning at the manufacturing plant and determines the delivery date based on the schedule of production capacity. Using the source determination and product allocation method. Availability check for kits E Kits are BOMs that are always shipped in complete and assembled form e. A typical example for location substitution see Figure 2.
The check can be processed in several business dimensions: This process corresponds to the production process but without any production resource to combine the components as a complete kit. E Third-party order processing This method is helpful when the goods are shipped directly from the supplier to the customer. The substitution rules are the iterative availability check process based on business rules.
In the following subsections. The rule maintenance master data drives the predetermined sequence for alternative locations and alternative products. Global The company takes the sales order and ships the products directly from the external partner or supplier to the customer warehouse.
The business scenario supported by this feature allows the goods to be shipped to a customer from different sources or with alternative product options. During the ATP check, the system searches for a receipt element for a sales order either in the future or looks for alternative procurement options. You then have to create an order manually to cover requirements. Manual planning without check means that no production orders or procurement proposals are created by the system if there is a product shortage.
The system does not search for a suitable receipt element. The product is always considered to be available with this type of planning. Planning parameters: Capacity variants: Resource specific planning parameters Resource data are relevant for scheduling detailed production dates of orders and operations, taking worktime and the capacity of the resources into account. You create a resource independently of a particular supply chain model or a particular planning version.
You assign all the resources relevant for planning to a supply chain model.
The system creates a copy of the resource, which is specific to the planning version. Single activity resources can only process one activity at a time. For single resources, you only define the worktimes.
For scheduling, the productive time is relevant, that is, the worktime reduced by break times and interruptions at the resource. The duration of the setup activities that are dependent on the operation sequence at the resource The setup costs You define an setup activity to be dependent on the sequence in the PPM. In the setup matrix you define all transitions between the various setup statuses of the resource.
A setup status is defined by the setup group or the setup key for the operation being processed at the resource.
Using setup groups, you define the standard setup transitions at the resource. Using setup keys , you define the exception setup transitions for a standard setup transition. You assign either a setup key or a setup group to an operation in the PPM. Activity 2 Main capacity requirement Secondary resources: It combines routing and the bill of materials into one master data object. Depending on the location, the lot size to be produced and the validity of the production version the system selects a PPM.
With different PPM you model different production technologies for one product. Each operation includes one or more activities, the components consumed or produced by the activity, primary and alternative resources used by the activity, and the sequence of the activities within the operation.
For each activity, you can maintain several modes, that is, several alternative resources at which the activity may be processed. The system selects a mode, depending on the resource availability and the priority that you assigned to the mode. Scheduling Strategies: You set scheduling strategies for the scheduling of orders and operations in the strategy profile. You can define that the system takes the following constraints into account: Alerts display and the rescheduling depend on the combination of: The system displays constraints that are violated in the alert monitor.
You define in the alert monitor profile, for which products and resources and for which situations the system displays alerts. Resource overload alerts are only displayed if you have defined a resource to be a finite resource.
The results are feasible production dates. You use it for interactive scheduling, for example, for interactive alert resolution and processing. You can specify the layout of a planning table, that is: The various charts for example, a resource chart and an order chart The field selection and sorting for the columns in the table section of a chart The format of the rows in the table section The objects displayed in the diagram section of a chart, for example: Operations or orders graphical objects Histograms product stock curves or resource load curves Network views of operations and orders that display the time relationships and pegging relationships between operations or between orders.
The layout of the operations and orders in the diagram section. Optimizer - Scope Start End Transferred resources: The optimization function reschedules orders and operations: That lie completely within the optimization horizon That are not fixed That are at resources which were transferred into the optimization If you have selected resources in the planning table, these selected resources are transferred to the optimizer.
If you have not selected any resources in the planning table, the system transfers the resources that you specified in the work area for the planning table to the optimizer. When you call up the optimization from manual order processing, the system transfers the resources on which the order is being processed to the optimizer.
All other orders and operations are fixed, that is, they are not rescheduled during optimization. However, the fixed orders and operations determine by their relationships to the non-fixed orders and operations, if and by how much these orders and operations can be shifted during optimization.
The optimized schedule is, therefore, adjusted to accommodate the fixed orders and operations. Parameters of Optimization The user influences the result of the optimization by setting these parameters: Constraint propagation: This procedure is for complex scheduling problems in which many interdependencies and constraints have to be considered, and where it is difficult for the planner to find a feasible solution by scheduling interactively in the planning table.
Genetic algorithm: This procedure is suitable for scheduling problems in which the planner is faced with the problem of finding a very good solution, and not just a feasible one. A typical use for this procedure is in establishing an optimal sequence based on the setup of operations The optimization function evaluates a schedule; that is, it evaluates the dates and the sequence of orders and operations, based on the objective function.
The objective function is the sum of the weighted optimization criteria: The optimization function tries to reduce the value of the objective function during the optimization run, that is, it tries to find a schedule in which the values of the various criteria, according to their weighting, are as low as possible.
In general, it is not possible to fulfill all the criteria to the same extent. For example, a reduction in the setup time could lead to an increase in the total lead time. Characteristics-Dependent Planning Example: Characteristics in Orders ProdNo: Match between characteristics of operations and characteristics of the resource is checked during scheduling characteristics are treated as additional constraints.
User interfaces for definition and change of campaigns are available in APO. Change of a block results in: Production Planning and Detailed Scheduling At the conclusion of this exercise, you will be able to: An optimized sequence guarantees increased throughput and revenue.
Deployment Contents: Business Scenario z Body Care products are distributed to their distribution centers and customers on a daily basis.
With pull distribution, all demand within the pull deployment horizon is met through deployment. Distribution occurs according to the due date specified at the DCs. You specify a fair share rule in the product master data to identify how you want the fair share logic to be implemented: The objective of fair share rule A is to distribute the stock proportionally to all distribution centers DCs according to demand.
The objective of fair share rule B is to raise the stock levels in all DCs to approximately the same percentage of target stock level. The objective of fair share rule C is to distribute the stock according to priority of the demand at the DCs.
A quantity of is distributed on the second day. Although the supply is , the demand within the pull horizon is only , so only are distributed.
SAP Library - Global Available-to-Promise (Global ATP)
PushA quantity of is distributed on the first day, when the supply is , and a quantity of is distributed on the second day, when the supply is Since the demand in the system is , all the supply can be distributed. If the demand in the system had been , only would be deployed on the second day. Transport Load Builder Plan for loading of transport vehicles: Transportation vehicles are filled to maximum capacity No transportation vehicle is dispatched that is not filled to minimum capacity The minimum values for capacity cubic volume and weight and pallets to build a load and the maximum amount of product per load is defined in the TLB profile.
The system checks the planned transport orders against these minimum and maximum values. If the planned transport orders do not meet either the minimum or maximum requirements, the system activates an alert. If the load does not meet the minimum capacity requirements specified for a full transport load within the specified pull-in horizon, you can manually add transport orders that are planned for later shipment and ship them early in order to build a full truck load.
SNP Deployment At the conclusion of this exercise, you will be able to: Select all products. Make sure that the planned distribution demand is converted to confirmed distribution demand. If you select orders not change, the system will not change the SNP transport orders. Instead it will create confirmed transport orders and reduce the ATD quantity.
The selection screen appears. To select all confirm with green check without any entries. Business Scenario z Body Care Incorporated intends to use GATP for finding the possible sources to deliver the requested products in time with the necessary quantity. Sales orders processed in the OLTP will trigger a Global ATP check, which depending on the configuration can call upon inventory, production plans, deployment plans, and various sets of planning data to calculate the correct availability result.
Especially it controls the selection of the rules base in the rules-based ATP check. An Available-To-Promise ATP check is an online search to verify the company's ability to provide the requested product, in the requested quantity,and on the date requested by the customer.
Applying rules-based ATP is the basis for checks of alternative products in alternative locations as well as for production. The rules stored in the system determine the next checking step in each case.
This centers on the heuristic aspect. Possible next steps are as follows: Substitution Sourcing Capable-to-promise All of which span the three-dimensional space shown in the picture. The search stops when an acceptable result is provided by the check. Not enough items in stock Solution: In the easiest case, this search strategy defines a sequence in which the system reads the individual rules.
Each access of this sequence is performed using a combination of characteristics. For each explicit combination of characteristics, it is defined which rule will be executed. Each rule may contain: A set of alternative products A set of alternative locations Instructions how to combine alternative location and product lists and which results will be accepted during a check. The result is passed to ATP which in return updates the sales order after confirmation of the delivery proposal.
Product allocations are applied to a product allocations object. The product allocations object is the reason for allocating quantities. It could be either one the following: Global Available to Promise: Business Process Procedure Overview Bef ore you can use the payment program, you need to def ine your house banks and t he account s at your banks, t he required payment met hods and t he payment f orms.
The standard syst em cont ains payment methods and payment forms. YouBusiness alreadyTrigger: Via payment program Bef ore you can ion, use the payment program, you need to define your house banks and t he accounts at configurat your banks, t heyou cont rol: The st andard system Matrix what is to be paid. To do this, you specify rules according to which the open Questionnaires are select ed andalready cont ains Business grouped payment Process for payment.
You can transfer t hem and adapt t hem t o Overview when payment is carried out. Basically, t he due date of the open it Via emspaym meet your determines when requirement payment iss. You To hods met determine do he this, and yout hespecify paym ent rules according forms. The st to whichsystem andard the open it em s t o be paid how t he paymentalready contains is made.
However, bank account f or t heyou Via payment can specif program payment. To do t his, you to whom specify t he payment rules accordingist made. Basically, from where t hedat t he due payment e of t he isopen made. You det s ermine the payee. Run Dat e how the payment is made.
You det ermine rules that are used t o select a payment method. Identif icat ion from where t he payment is made. You det ermine rules that are used t o select a bank and a Company Code s bank account Input - Required Fieldsfor the payment. The standard system Overview Procedure Steps already contains payment met hods and payment f orms.
You can t ransfer them and adapt them to Before you can use the payment program, meet your requirement you need to define s. Periodic already contBusiness what is tpayment ains Process o be paid.
Procedure metTohods do t his, and Overview you specify payment rulesYou f orms. Via out you payment Tocando Basically, methods specify this, you payment program and t he forms. However, ion. E Availability check for kits Kits are BOMs that are always shipped in complete and assembled form e.
Introduction to SAP GATP aka Global Available to Promise
This process corresponds to the production process but without any production resource to combine the components as a complete kit.
E Third-party order processing This method is helpful when the goods are shipped directly from the supplier to the customer. The company takes the sales order and ships the products directly from the external partner or supplier to the customer warehouse. Using the source determination and product allocation method, this check enables the company to ensure the requirements can be confirmed without having to take into account backorders or cancellations.
In the following subsections, we will discuss three of the commonly used advanced check methods in depth: The business scenario supported by this feature allows the goods to be shipped to a customer from different sources or with alternative product options. The rule main- tenance master data drives the predetermined sequence for alternative locations and alternative products. The substitution rules are the iterative availability check process based on business rules.
The check can be processed in several business dimensions: A typical example for location substitution see Figure 2. The business process steps include a sales order coming into distribution center A, whereby the global ATP check confirms the order based on available stock at warehouse A and balance ATP replenishment from warehouse B. Global 56 You can also use location substitution to always replenish a customerfrom a specific warehouse. The condition technique, which is commonly used in SD in pricingdetermination, can be used to define business rules.
A typical use of the condition 57 A rule maintenance is a master data created in global ATP that primarily consists of below four elements: Defines the sequential list of substitution products and the validity period.
Defines the sequential list of substitution locations and the validity period. Defines whether to use location or product or a combination of both procedures.
E Calculation profile: User setting to define how the system should confirm the order when the desired delivery date is not met. Defines allowed delay or early confirmation days. The figure shows that the same product is checked across multiple locations first and then substituted by a different product if the ATP check is still not successful.
Thisis useful when a company wants to consolidate its products for to reduce costs e. During the sales order processing, global ATP uses theMISL functionality built via rules-based ATP to determine whether all the itemsrequested in the sales orders are available in a single location. If the single location isnot found, the items remain partially confirmed or unconfirmed.
The system automatically updates the location in the salesorder by creating an additional item that shows where the order is confirmed. This global ATP solutionis ideal for industries with configured products steel, paper or companies withconstrained production due to bottlenecks chemical.
It then creates a simulation pro- duction plan to find the best possible date for delivering the goods while consider- ing the capacity of the manufacturing resources. If the plan is accepted, global ATP generates supply elements that can stock the transport order for nonmanufacturing sites or the production plan for manufacturing sites. This method is useful in industries where the assembly items are stocked and only when a customer sales order is received, the assembly items are assembled for the final product.
The method checks the availability of the components via BOM explosion of the primary product before committing to the delivery date of the order. The ATP tree structure is a new object created during multilevel ATP, which preventsthe online creation of the receipt generated by global ATP for system-performancereasons.
The conversion to receipt elements for the confirmed orders can be donelater as a background job. An example of multilevel ATP is shown in Figure 2. The first date is based on the stock avail-ability, while the balance quantity is based on the planned orders availability date,taking into account component lead time and resource capacity.
The first method is backorder processing BOP , which is used primarily for resolving backorder conflicts and re-ATP of the sales orders to reconfirm the delivery dates based on the latest inventory after the MRP run. The second method is the 62 It aligns the confirmation processwith business goals by prioritizing the sales orders to determine which orders toship first.
BOP is also critical when the supply is constrained and you must decidewhich sales orders to prioritize for shipping. As a reallocation process, BOP alignsthe supply plan and the open sales orders. The BOP process consists of defining the order processing scope through masterdata, and executing the BOP in the following four steps: Identify the business criteria important for prioritization.
For example, this could be the document creation date or material availability date. Filter the scope of BOP by selecting the orders that will be included in the pro- cessing. The user defines the sort profile for defining the sequence to allocate the avail- able stocks to the customer orders. Execute the BOP either interactively manually reconfirming the sales documents or as a background job.
In a business scenario, BOP is essential in the following situations: E Unexpected goods receipts creates more ATP quantity as a result. This will help a business confirm customer orders that were not confirmed when orders were first received. E Unexpected goods issues creates less [negative] ATP quantity as a result. This helps businesses prioritize orders during supply shortage.
E High-priority order to fulfill the demand, the confirmation of some low-priority orders must be cancelled. This will help businesses increase the profit margin by serving important customer sales orders. As you can see, when a goods receipt is performed in thewarehouse, global ATP automatically confirms the orders from the order due list. The scheduling see Figure 2.
MAD is the date for checking product availability. E Schedule the correct ETA for supply availability E Properly calculate the lead time between supplier and customer points E Increase the customer-service level and sales based on supply availability at the committed date 64 CPS uses businessprocesses that have activities, and these activities have a start date and end date. CPSshould be used in scenarios where transportation and shipment scheduling cannotbe achieved using the condition technique.
The only difference is that CPS is a lotmore flexible where instead of fixed activities for shipment scheduling e. In addition to duration determination,CPS can also do calendar determination, time zone determination, and locationdetermination using the condition technique.
Custom alerts can also be defined per business require-ments e. The methodology can be divided into five areas, leading toward the production of global ATP functionality.
The viable combinations are listed here: Combining the forecasting process and allocation process with ATP. Integrating demand and supply planning with order fulfillment. Integrating manufacturing directly with the order-fulfill- ment process. Leveraging on advanced check methods capabilities for complex business scenarios. Big-bang versus phased approach The majority of global ATP implementations primarily start with a proof of concept POC and develop into a project following business acceptance.
The project implementation times are usually short—spanning three to five months— and the phased approach is best suited to minimize any business risk and better understand the global ATP behavior in the productive environment. To mitigate the business impact of the ATP check running in two environments—legacy and global ATP—it is recommended to roll out the global ATP solution by customer and distribution center. This also requires activating the CIF model by distribu- tion centers.
Global ATP check methods selection It is imperative to map global ATP functionalities according to business-specific needs to solve order-fulfillment issues. The advantage of global ATP is that you do not need a single global approach, and each global ATP functionality can be implemented separately to solve the business problem.
The basic and advanced methods can also be combined to deliver two-step ATP checks on customer orders. Business value versus implementation effort A matrix see Figure 2. Performance testing Global ATP can be technically challenging due to the volume of transaction processing.
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