Spare parts Demand Planning and Forecasting SCM

Hi ,
I am APO DP consultant can any body help me on questions on AS-IS and To-Be analysis Of Spare Parts Demand Planning and forecasting in SAP SCM.
If You have any Documents or links or nay information on these please give replay.
Ram

Dear Ram..
SPP is purely base on BOD (Bill of Distribution)..
following are the points u can cover in AS is TOBE..
1. On what Level (Chs) the Client performing Spare Parts Planning?nd how u want to disagreegate on lowest level ie.Hierarchy Level?
Ex. from Region..to Branch..to ..Customer..
2. Have u configured Spare Parts in R/3?
3. What is the Pattern of Sales History?Seasonal/Trend/Constant etc?
4. u can ask questions on Deployment...Inventory?
5. What is the Lead Time for Procurement?Distribution?Transportation?
for more details...
http://help.sap.com/saphelp_scm50/helpdata/en/a3/7ed240caeb752ae10000000a155106/frameset.htm
Rajesh Patil
SPINNOVATION

Similar Messages

SAP ERP - Demand Planning and Forecasting

Dear all,
my customer is a wholesale company. They want to use a component in SAP ERP (not SAP APO), in order to make demanding planning and forecasting for the materials , quantities and dates they should make the purchases in order to cover the demand of their customers. What is the component that should be used in order to achieve this?

MRP can be used without production planning. SOP and Demand Management are not Production.
Nevetheless, if you want a simpler planning cycle, provided that you understand its ads and cons, you could go for Consumption Based Planning MRP.
See this link for details:
http://help.sap.com/saphelp_erp60_sp/helpdata/en/7d/c2821c454011d182b40000e829fbfe/frameset.htm
Mario

Demand Planning and eSOA

I am an SCM consultant, with particular interest in Demand Planning.
I am experienced with SAP APO, but am now interested in how the emerging eSOA environment can help with Demand Planning solutions.
Can anyone share thoughts/experiences of how web services in general and SAP eSOA in particular can provide 'added value' to Demand Planning?
Thanks,
Bob Austin, Atos Origin

Generally speaking, the demand plan or forecast is ultimately the "image" of the demand side that the supply side wishes to "mirror" or fulfill against. This view is a consolidation of many views from several players on the demand side -- whose input is provided to a much smaller group of planner-users of the Demand Planning tool.
What eSOA does is to essentially extend the Demand Planning process to this larger audience via a number of means:
The new Duet/Excel capability is one example of this extensibility. Think of all the spreadsheets that are being used to do <i>something</i> associated with the demand management process that you can now start to inject some process discipline and control into.
Another example is the ability to integrate with tools like 3rd party sales force automation or channel partners across mobile devices, etc. Because eSOA decouples the interaction layer from the data itself, I now have greater flexibility to extend and collaborate across an increasingly fragmented "demand chain" and different types of users and devices. The opportunity to add value requires some analysis and creativity -- but we are in the age of user-driven innovation and eSOA is designed for this "self service" paradigm.
Hope this helps.

What is demand planning and shop floor plannig, explain briefly?

I like to know and understand about demand planning and shop floor plaining? please explain briefly?
Thank you,
york

Hi Les,
<b>Demand Planning</b> is
Application component in the Advanced Planner and Optimizer (APO) that allows you to forecast market demand for your company's products and produce a demand plan.
APO Demand Planning has a data mart in which you store and maintain the information necessary for the demand planning process in your company. Using this information along with user-defined planning layouts and interactive planning books, you can integrate people from different departments into the forecasting process. The APO DP library of statistical forecasting and advanced macro techniques allows you to create forecasts based on demand history as well as any number of causal factors, and use a consensus-based approach to consolidate the results. Marketing intelligence and management adjustments can be added by using forecast overrides and promotions. The seamless integration with APO Supply Network Planning supports an efficient S&OP process.
regards
kp

Handling Planned order created from Demand planning and Sales order in MTO

Hi all
In MTO\ Repetitive we genrate Dependent requirement from demand planning (PIR) after running MRP which finally planned order created but on the other hand in short term we have Sales order which generate planned order after running MRP(In MTO), How we should handle planned order generated from Demand planning and the ones generated from sales order.(both after MRP Running).
Regards
Babak Bolourchi

Dear,
You can combine the planning strategy also main as 56 and second as 65 and in demand managment MD61 you have the option select requirement type.
Then while creating sales order use MTO strategy and take MRP run through MD50 and then MD02.
and if you want to assign the stock to sales order then you and do it through MB1b with 412 E movement type.
As per my knowledge, generally 56 strategy only takes Sales Order Stock into consideration.
Consider setting the Individual/Collective indicator to 2.
Mark those characteristics that should have a usage probability in demand management as Relevant for planning.
Hope clear to you.
Regards,
R.Brahmankar

Setup of reorder point planning and forecasts

Can someone please tell me the setup steps of reorder point planning and forecast sets..
I hav seen the documentation but am complete lost
Need ur help!
Emm

Hi Emm,
1. Create an item for which the inventory planning method should be reorder point planning along with that provide the minmum order quantity & maximu ordered quantity and the Source type should be supplier.
2. Navigate to > planning > forecasts > Sets: to define the Forecast Quantity. ( First Forecast Set, then Forecast Line, then Forecast Items > inside this define the forecast quantity.
3. Define the safety stock by navigating to Planning > Safety Stocks .
4. Then submit the reorder point planning with parameters as restock – yes and name of your forecast.
Regards,
Jyoti

Forecast Model in Demand planning and E book Sap trainingcourse

Dear Experts ,
I am Exploring differnt Forecast Model , like constant
model, trend model, seasonal model, trend and seasonal model, Croston method
with exponential smoothing, linear regression, and causal models with multiple
linear regression (MLR).
is there any SAP links or material or course availabe to learn more about Forecasting Techniques that we can use in Demand Planning in APO
if you have idea please help me to learn .. i am really starving for this techniques
Thanks in advance
Cheers & Thanks
Raj

Hi Raj
Below link will give you entire information on forecasting models, forecasting accuracy technequues etc,:
http://help.sap.com/saphelp_apo/helpdata/en/33/437a37b70cf273e10000009b38f8cf/frameset.htm
For MLR refer the following link:
http://help.sap.com/saphelp_apo/helpdata/en/ac/216ba4337b11d398290000e8a49608/frameset.htm
Which is the best model to use:
You should try running forecasting using various model(seasonal, seasonal linear, linear, constant etc) and comapre
the forecast accuracy and find out which one is the best suitable.
Another way is to choose auto model which will select the best possible forecast strategy and give the result.
I hope thos will help you.
Please let us know if you require any more information.
Thanks
Amol

Mapping Spare part kit planning in SAP

Hi,
We have below requirement in Spare part Kitting process
1)
Client makes compressors, which obviously have a lot of components, where one of the prime part is valve.
2)
Valve Kit is a finished product having components which are used in regular unit production also, where MRP Type can be VV or PD.
3)
This valve kit sold as a spare part.Customers buy these kits and typical assembly time is 1 day.
4)
This kit is not kept in stock and is assembled after receiving an order.
5)
To be ready for customer orders, client forecasts these kits (about 10000) and drives the demand for lower level components.
6)
When customer places an order, legacy system promises the dates based on availability of components. Date is promised to the customer based on the availability of the components. Also the requirement is passed on to the floor to assemble and shipped the same day.
7)
To meet above requirement, we proposed to use Forecast based planning, where system will create planned order for Kit assembly & component can be planned.Knowing there is a back drop i.e. planned order created thru forecast can be converted into production order.
8)
Then demonstrated “ATO – Assemble to Order” functionality in SAP. This uses strategy group 81 for the kit material XX-XXXX-XX. When a sales order is created for a material with strategy group 81, system immediately creates a planned order and as per component availability, proposes the next available date of the assembly.
9)
Since ATO is an MTO process, Planned order is tied to Sales Order and when production order goods receipt is done, stock is received into Sales Order stock. Hence Sales Orders do not consume the forecast.
10)
Question here is how to consume the forecast? When sales order is shipped system is not updating consumption data? This is important as today they use the consumption values to execute the forecast.
If any one has come across similar requirement, please give other options keeping below points in view
1. We should be able to plan valve kits may be thru forecasting or PIR's. This to start procuring components.
2. When sales order is created, system should do availability check at component level.
3. Consumption data should be updated if we use forecasting to plan kit or if we use PIR's, sales order should consume the demand. Consumption of forecasting requirement is also required.
Thanks in advance.
Hari

Hi ,
Looks like problem is due to
- Need to do ATP at componnent level which is only possible with Planning strategy 81,82. You cannot use planning strategy 40( 40 considers forecast , sales order & consumption)
- 81 ,82 planning strategy doesn't consume forecast for End item(Sales order entry material)
You could use Sales order BOM function. It is provided for selling Kits. BOM is exploded in sales order & kit items are put as seperate sales order items ( 20... 30... 40 ) Here are steps.
- Create BOM with usage 5- Sales order relevancy of bom components is Ticked
- Create Sales order with item which is BOM header. System will explode BOM & all items will be part of sales order as item.
- You can configure Sale Price at End FG level, Inventory management( DO issue) at item /components level .
- Forecast will be consumed at end item level.Need configuration
- ATP check can be performed at componenet level
Only thing is you will not have Plan order for doing assembly & there is no cost captured for assembly . Kitting donot involve much labor time.
Hope it helps
Jatin

Demand Plan and Supply commit

The forecast or demand plan from Demantra (monthly bucket) is sent to suppliers by Collaboration planning Via ASCP (broken to weekly bucket). The supply commit will be received through CP (wkly bucket) to ASCP (wkly bucket) to Demantra (aggregated to monthly).
The reason being demantra values are in montly bucket and we want weekly break up and thats why we are thinking to use ASCP.
Is this true?
View Plan vs. commit by month in Demantra
View Plan vs. commit by week in ASCP
CP is a portal for file exchange
Or supply commit is visible only in CP?
Please explain and suggest alternate design if possible?
Thanks

Hi,
You need to define the SNP Demand Profile and SNP Supply Profile in the Product Location master data.
Goto -> /n/SAPAPO/MAT1 -> On the selection screen below the Product / location fields, you see the fields for
- Lot Size Profile
- Demand Profile
- SNP: Demand Profile
- SNP: Supply Profile
- Deplloyment Profile.
Here you can enter the name of any profile you want to create and use the 'Create' button to create your profile. This will be then available for selection when you create your Product Location master.
Hope this helps. Let us know if you still have any doubts.
Cheers,
Srinidhi
Hope this helps.

Planning and forecast

Hello All ,
I am looking for planning functionality of CRM
My requirements are:
Allow to sales man insert forecast for year including products, quantity, and customer per every month.
This data should be used for planning later.
Some ideas?
Thank you very much ,
Rika
P.S. We are implementing now SAP CRM 2006 .

Hi Rika,
i specifically do not know which module will be used for the planning functionality in crm for your requirement but what you can do is using BI and using keyfigure planning you can prepare the planning functioanlity and in your landscape when there is integration between BI and CRM it can be used to plan the forecast also.
We have done for CRM5.0 with BI and we done the KPI for the sales team to make sales forecast for the period month,quarter, halfyearly and yearly based on 5 measures like geography,product,sales rep etc. when the actual sale is done then it is taken from the CRM to make the plan vas actual forecast.
It was totally a custom development that we have done.
Thanks and if helpful reward points
Srini

Interactive demand planning -statistical forecasting error

Hell APO DP experts,
We are implementing CBF functionality in demand planning. In /SAPAPO/SDP94 - Interactive Demand Planning, when we try to run forecast we are getting a message:
Not possible to carry out the forecast - no historical data
Message no. /SAPAPO/MA502
although the historical data is there.
Any info on this?
Regards
Pandit

Hi,
If you are working on SAP APO 4.0/4.1,
Check OSS Note 790517 - No error message "No historical data available".
Implement the corrections as mentioned in the message.
Warm regards,
Prem

Difference :Automatic Reorder Point Planning and Forecast based palning ?

Dear MM Guru's,
As we See in throtical Concepts that
Automatic Reorder point planning and Forcast Based Planning Used the prevuious Historical Data.
Please explain what is difference Between them.
regards,
A. S.

Hi,
Reorder Point Planning: -
Use: -
In reorder point planning, procurement is triggered when the sum of plant stock and firmed receipts falls below the reorder point.
Features: -
The reorder point should cover the average material requirements expected during the replenishment lead time.
The safety stock exists to cover both excess material consumption within the replenishment lead time and any additional requirements that may occur due to delivery delays. Therefore, the safety stock is included in the reorder level.
The following values are important for defining the reorder point:
- Safety stock
- Average consumption
- Replenishment lead time
The following values are important for defining the safety stock:
- Past consumption values (historical data) or future requirements
- Vendor/production delivery timelines
- Service level to be achieved
- Forecast error, that is, the deviation from the expected requirements
Manual Reorder Point Planning
In manual reorder point planning, you define both the reorder level and the safety stock level manually in the appropriate material master.
Automatic Reorder Point Planning
In automatic reorder point planning, both the reorder level and the safety stock level are determined by the integrated forecasting program.
The system uses past consumption data (historical data) to forecast future requirements. The system then uses these forecast values to calculate the reorder level and the safety stock level, taking the service level, which is specified by the MRP controller, and the material's replenishment lead time into account, and transfers them to the material master.
Since the forecast is carried out at regular intervals, the reorder level and the safety stock level are continually adapted to the current consumption and delivery situation. This means that a contribution is made towards keeping stock levels low.
Forecast-Based Planning: -
Use: -
Forecast-based planning is also based on material consumption. Like reorder point planning, forecast-based planning operates using historical values and forecast values and future requirements are determined via the integrated forecasting program. However, in contrast to reorder point planning, these values then form the basis of the planning run. The forecast values therefore have a direct effect in MRP as forecast requirements.
Features: -
The forecast, which calculates future requirements using historical data, is carried out at regular intervals. This offers the advantage that requirements, which are automatically determined, are continually adapted to suit current consumption needs. The forecast requirement is reduced by the material withdrawal so that the forecast requirement quantity that has already been produced is not included in the planning run again.
Reducing Forecast Requirements
- Reducing forecast requirements by consumption
If consumption is higher than the forecast requirements in the current month, then the system also reduces future forecast requirements.
- Reducing current forecast requirements by consumption
If consumption is higher than the forecast requirements in the current month, then the system does not reduce future forecast requirements.
- Average reduction of the forecast requirements
The reduction of the forecast requirements is based on average daily consumption. Actual consumption data is not relevant.
The system calculates the average daily requirement first using the formula forecast requirement/number of workdays in the forecast period.
The forecast requirements are then reduced by the quantity resulting from the following formula: number of workdays worked x average daily requirements.
Period Pattern and Forecast Periods
You can specify the period pattern for the forecast (daily, weekly, monthly or per accounting period) and the number of periods to be included in the forecast individually for each material. It is possible, however, that the forecast period pattern is not specific enough for planning purposes. In this case, you can define per material that the forecast requirements should be divided according to a finer period pattern for planning. You can also define how many forecast periods are to be taken into account during requirements planning. The splitting indicator is defined in Customizing for MRP per plant and per period unit and is assigned to the material in the material master.
Example: -
For a monthly forecast, the requirements date would be set on the first workday of the month because, for planning, it is assumed that the total requirement must be available at the beginning of the period. You can then divide this monthly requirement into either daily or weekly requirements.

PP Demand Planning Historical Forecast

Hi,
I am trying to run a forecast in the past to allow me to see the outcome of different forecast models as compared to the actual results (e.g.. Historical period current -2 and forecast period current -1). The job appears to work without an error (Ex Post forecast), but no forecast is generated. Does SAP only allow the generation of forecast data for future periods?
Thanks
Mark

Strictly speaking yes, forecast is meant to, as the name suggests forecast future values. However, when there is sufficient data the system performs what is called an EX-post forecast. The point of the ex-post forecast is to apply the selected model (for future values) to historical values so that the validity of the selected model can be made (I believe this is what you want to do)
Below is a small example. For a given material I performed the forecast for period 06.2007 onwards, but as you can see that system has also done an ex-post forecast (==> applied the forecats model to past values). I have included a picture to highlight what I mean <a href="http://www.renet-web.net/sdn/forecast.jpg">here</a>. The value circled is the forecasted value for a past period.
hope this helps.

Seamless Integration between Plan and Forecast Data at KF level

I have data in 2 IC like below:
IC : Current*
*FiscalPEriod    Amount*
2011.01          100
2011.02          100
2011.03          100
2011.04          100
2011.05          100
2011.06          100
2011.07          100
2011.08          100
2011.09          100
2011.10          100
2011.11          100
2011.12          100
*IC : Forecast*
*Forecast Version     Fiscal Period     Amount*
2011.04                 2011.04             200
2011.04                 2011.05             200
2011.04                 2011.06             200
2011.04                 2011.07         200
2011.04                 2011.08      200
2011.04                 2011.09      200
2011.04                 2011.10      200
2011.04                 2011.11      200
2011.04                 2011.12      200
2011.05                   2011.05         300
2011.05                   2011.06      300
2011.05                   2011.07      300
2011.05                   2011.08      300
2011.05                   2011.09      300
2011.05                   2011.10      300
2011.05                   2011.11      300
2011.05                   2011.12      300
Master Data for Forcaste Version:
*Forecaste Version         FLAG*
2011.04                   Prior
2011.05                   Current
Now while creating Query, I need one KF called "Current Forecast Amount", So I need to go to master data and see forecast version against 'Current' and go to forecast cube abd selecet Amount under that Forcast Version. I did it with the help of Customer exit variable on Forcast Version. so its displaying data as below(From fiscalperiod 2011.05 it will pick 300):
2011.01     2011.02     2011.03   2011.04   2011.05    2011.06    2011.07   2011.08   2011.09   2011.10   2011.11   2011.12
                            300         300           300           300          300          300          300         300
Now requirement is to seamless integrate actuals with forcast data. Like let's take KF "Current Forecast Amount" we created above, so it should display data like below in the KF( From 2011.01 to 2011.04 it;s 100 from ACTUAL IC, from 2011.05 to 2011.12 it's 300 from Forcaste IC) :
===Data from Actual IC==========      =================Data from Forecaste Cube==========================
2011.01     2011.02     2011.03 2011.04 || 2011.05 2011.06 2011.07 2011.08 2011.09 2011.10 2011.11. 2011.12
100        100      100      100     || 300      300        300      300         300         300     300      300
This Query has no variable restriction it means this will display data from all the years. And structure of the KF section is as below:
Fiscal Period
KF's.......
Current Forecast Amount
Can we achieve this at query level? Please help me, I am stuck here.
Regards,
Amandeep
Edited by: AmanSharma123 on Jun 20, 2011 10:50 AM
Edited by: AmanSharma123 on Jun 20, 2011 10:52 AM
Edited by: AmanSharma123 on Jun 20, 2011 10:53 AM
Edited by: AmanSharma123 on Jun 20, 2011 10:54 AM
Edited by: AmanSharma123 on Jun 20, 2011 11:11 AM

Hi Suman,
Thank you for your reply. Users will be using this query dynamically ( no parameters at all in the query). I need to find a dynamic solution for this.
Do you have any idea for below question:
Let's say my Column structure is as below:
FiscalYear Period
KF's
Amount
and we run this query without any parameter, and we get out as below:
2001.01     2001.02 .................2001.12............................2002.05..........................2010.01
100           100                        10                                      20                                         30
Can we know by any chance what's the current value of fiscal year period for KF amount any time? Any way to find this?
If I get this value, I will be able to derive my KF.
Regards
Aman

Demand planning help links

Hi Gurus,
I am new to Demand planning and forecasting, Please can you give suggest me some help.sap.com links to demand planning. I am BI technical, I am going to involve in demand planning implementation.
Any help greatly appreciated. Thanks.
Regards,
Reddy.

Hi
Go through following link
http://help.sap.com/saphelp_scm50/helpdata/en/8f/9d6937089c2556e10000009b38f889/frameset.htm
Regards
Sujay

Spare parts Demand Planning and Forecasting SCM

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