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1 SCM Consulting Solutions Customer Reference for: MRP Monitor, Forecast Monitor An Engineering and Construction Company
2 General conditions in the company Around 5,000 active material masters in the forecast Around 16,000 active material masters in the classification by the MRP monitor Many identical parts, many end products with a lot of variants Market fluctuations with effects on planning accuracy for the components Many self-developed MRP logics High degree of manual work in parameter maintenance No methodical control of introductions and discontinuations 2011 SAP AG. All rights reserved. 2
3 Challenges Achieve reduction in scrap Achieve reduction in stocks with delivery reliability and on-time delivery performance Stocks and ranges of coverage No clear responsibilities No consistent use of MRP parameters High degree of manual work in parameter maintenance No methodical control of introductions and discontinuations Many self-developed MRP logics Master data quality Forecast for parts used extremely sporadically very difficult and usually done manually Need for monitoring of forecast quality Need for a display of all requirements down to purchased parts, based on forecast values Analysis support 2011 SAP AG. All rights reserved. 3
4 The solution: MRP monitor Analysis of past time series, classification of material ranges, and determination of MRP- and decision-relevant KPIs The MRP monitor uses all relevant material movements from the past to determine the ABC-XYZ classification of each material and calculates important key figures such as dead stock, ranges of coverage, and inventory turnover. The MRP monitor provides integrated support for material master maintenance through classification-based monitoring and parameterization of all materials across their entire life cycle. The MRP monitor helped overcome the challenges with the following functions: Development of plant-wide, consistent rules for setting MRP parameters Replacement of self-developed MRP logic, return to standard High level of automation frees up time for better planning of critical materials Increased transparency Consistency and standardization of MRP processes 2011 SAP AG. All rights reserved. 4
5 The solution: Forecast monitor Calculation and display of forecast errors, alerts and warnings Simulation of other forecast models and automatic material master adjustment The forecast monitor calculates the forecast error and displays errors, warnings, and information messages. Underlying consumption and forecast data can be displayed in integrated fashion. The forecast monitor helped overcome the challenges with the following functions: Use of standardized, plant-wide forecast process based on flexible planning Display of all requirements down to purchased part level, derived from forecast values Concentration on important materials Analysis supplement for forecast with flexible planning 2011 SAP AG. All rights reserved. 5
6 Customer benefit and value Direct benefits: Reduction of scrap Reduction in stocks with delivery reliability and on-time delivery performance Process improvements: Replacement of self-developed MRP logic, return to standard High level of automation frees up time for better planning of critical materials Increased transparency Consistency and standardization of MRP processes Concentration on important materials 2011 SAP AG. All rights reserved. 6
7 Key figure development/testimonial Start of solution use August 2009 Scrapping Stocks, with delivery reliability Meaningful key figure determination not possible because of the ups and downs in the economy in recent years (huge drops, then massive increase). Customer testimonial: Without Consulting Solutions, being part of the economic upturn would have been under threat, because we were able to react to the demand and procurement lead time changes quickly and with tool support reduced reduced 2011 SAP AG. All rights reserved. 7
8 Thank you! Marc Hoppe Consulting Manager Supply Chain Management Grosser Grasbrook Hamburg, Germany M.: E:
9 SCM Consulting Solutions SCM Consulting Solutions with ERP 1.1 ERP01: MRP monitor( ) 1.2 ERP02: Simulation of safety stocks ( ) 1.3 ERP03: Simulation of lotsizes ( ) 1.4 ERP04: Forecasting monitor ( ) 1.5 ERP05: Servicelevel monitor ( ) 1.6 ERP06: Replenishmentleadtime monitor ( ) 1.7 ERP07: Backlog monitor ( ) 1.8 ERP08: MRP Error monitor ( ) 1.9 ERP09: Inventory controlling cockpit ( ) More Infos can be found: SCM Consulting Solutions with APO 2.1 APO01: Changelogmonitor ( ) 2.2 APO02: Lifecylceassistent ( ) 2.3 APO03: Forecastingleveloptimierer ( ) 2.4 APO04: Mising Parts Infosystem ( ) APO05: esoa Masterdatacockpit 2.6 APO06: Masterdatacheckmonitor ( ) SCM Consulting Services 3.1 OPT01: Forecasting optimization ( ) 3.2 OPT02: MRP optimization ( ) 3.3 OPT03: Backlog reduction ( ) 3.4 OPT04: Distribution optimization 2-nd Edition, Nov SAP AG. All rights reserved. 9
10 2011 SAP AG. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. Microsoft, Windows, Excel, Outlook, and PowerPoint are registered trademarks of Microsoft Corporation. IBM, DB2, DB2 Universal Database, System i, System i5, System p, System p5, System x, System z, System z10, System z9, z10, z9, iseries, pseries, xseries, zseries, eserver, z/vm, z/os, i5/os, S/390, OS/390, OS/400, AS/400, S/390 Parallel Enterprise Server, PowerVM, Power Architecture, POWER6+, POWER6, POWER5+, POWER5, POWER, OpenPower, PowerPC, BatchPipes, BladeCenter, System Storage, GPFS, HACMP, RETAIN, DB2 Connect, RACF, Redbooks, OS/2, Parallel Sysplex, MVS/ESA, AIX, Intelligent Miner, WebSphere, Netfinity, Tivoli and Informix are trademarks or registered trademarks of IBM Corporation. Linux is the registered trademark of Linus Torvalds in the U.S. and other countries. Adobe, the Adobe logo, Acrobat, PostScript, and Reader are either trademarks or registered trademarks of Adobe Systems Incorporated in the United States and/or other countries. Oracle and Java are registered trademarks of Oracle and/or its affiliates. UNIX, X/Open, OSF/1, and Motif are registered trademarks of the Open Group. Citrix, ICA, Program Neighborhood, MetaFrame, WinFrame, VideoFrame, and MultiWin are trademarks or registered trademarks of Citrix Systems, Inc. HTML, XML, XHTML and W3C are trademarks or registered trademarks of W3C, World Wide Web Consortium, Massachusetts Institute of Technology. SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP BusinessObjects Explorer, StreamWork, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries. Business Objects and the Business Objects logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business Objects products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Business Objects Software Ltd. Business Objects is an SAP company. Sybase and Adaptive Server, ianywhere, Sybase 365, SQL Anywhere, and other Sybase products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Sybase, Inc. Sybase is an SAP company. All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary. The information in this document is proprietary to SAP. No part of this document may be reproduced, copied, or transmitted in any form or for any purpose without the express prior written permission of SAP AG SAP AG. All rights reserved. 10
Customer Reference for:
SCM Consulting Solutions Customer Reference for: MRP Monitor, Service Level Monitor A Company from the Food Industry General conditions in the company 9,500 material master records Growing material range
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