SAP S/4HANA Enteprise Management - Logistic. Juergen Helmle SAP SE Germany March 22 th 2017

Transcription

1 SAP S/4HANA Enteprise Management - Logistic Juergen Helmle SAP SE Germany March 22 th 2017

2 Disclaimers DISCLAIMER This presentation outlines our general product direction and should not be relied upon in making a purchase decision. This presentation is not subject to your license agreement or any other agreement with SAP. SAP has no obligation to pursue any course of business outlined in this presentation or to develop or release any functionality mentioned in this presentation. This presentation and SAP s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including, but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP intentionally or grossly negligent. SAFE HARBOR STATEMENT This document is intended to outline future product direction, and is not a commitment by SAP to deliver any given code or functionality. Any statements contained in this document that are not historical facts are forward-looking statements. SAP undertakes no obligation to publicly update or revise any forward-looking statements. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The timing or release of any product described in this document remains at the sole discretion of SAP. This document is for informational purposes and may not be incorporated into a contract. Readers are cautioned not to place undue reliance on these forward-looking statements, and they should not be relied upon in making purchasing decisions SAP SE or an SAP affiliate company. All rights reserved. Public 2

3 SAP s Next Big Thing S/4HANA ERP R/3 R/ SAP SE or or an SAP affiliate company. All rights reserved. Public 3

4 SAP S/4HANA Our Next-Generation Business Suite SAP S/4HANA Enterprise Management build the next-generation business suite» Innovative in-memory Database» New architecture and data models» Renewed applications» New UI technology» Cloud & on-premise deployment models» Natively integrated SAP S/4HANA is a new product line (it is not a legal successor of any SAP Business Suite product) The classical SAP Business Suite & SAP ERP is a separate product line and will still be available SAP SE or an SAP affiliate company. All rights reserved. Public 5

5 Where does complexity hide in enterprises? Scattered information Batch orientation Technology limitation Complex decision making Large global organizations have created so much complexity that businesses often struggle to bring good ideas to the marketplace profitably. (McKinsey, 2014) Complex business processes Large organizations can spend between 40% and 80% of their time on non-valueadded activities (BCG, Complexity Report) Complex technology 73% percent of executives said the complexity of data is the largest IT challenge (Forrester, 2013 report) 10.2% or$237b* of profits lost by top 200 global companies due to hidden costs of complexity *Global Simplicity Index, SAP SE or or an SAP affiliate company. All rights reserved. Public 6

6 Challenges from the market today Individualization Extreme Variability Rapid Innovation 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 7

7 The digital economy Customized orders- lot size 1 The end to end digitized enterprise is a mandatory consequence Unit of One [#/ ] # of lots # of invoices value/size of lots value/size of invoices Digital Economy time 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 8

8 Live Manufacturing Planning with the MRP Run Sales Purchase Production Inventory Live Supply, Inventory Flexible MRP Run MRP Controller Analyze the current situation based on realtime information and focus on single shortages Time Transfer Request Purchase Request Production Request 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 9

9 Live Capacity Planning with PP/DS in S/4HANA Sales Purchase Production Inventory Live Supply, Demand, Capacity Flexible MRP Run MRP Controller Analyze the current material and capacity situation based on realtime information and comprehensive planning features in PP/DS@S/4HANA Time Transfer Request Purchase Request Production Request 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 10

10 Business drivers for S/4 HANA Increased system throughput by eliminating data redundancies and reduced data footprint Real time analytics at the lowest level of granularity on primary transactional data, without aggregates Optimized system landscape and reduced number of systems gives customer high performance with lower TCO Internet of Things Increased business user productivity with beautiful, role-based UIs and availability on multiple devices 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 11

11 SAP S/4HANA The Customer Has The Choice SAP S/4HANA On-Premise Edition SAP S/4HANA Cloud enterprise edition Traditional licensing with customer control of deployment and maintenance Subscription licensing with deployment in the private cloud, maintained by SAP SAP S/4HANA on-premise is already available with the combination of Suite on HANA with an exchange innovation add-on for Simple Finance. As of Q4/2015 with integrated Simple Logistics. The scope of this solution is close to a full ERP scope (Business All in One scope) however focusing on supporting standard scenarios. SAP S/4HANA Cloud marketing edition Cloud project services edition Subscription licensing with deployment in the private cloud, maintained by SAP Providing simplified key scenarios with a clear focus and priority on the cloud qualities, which are guaranteed across all UIs and all processes to ensure that a true SaaS solution is offered SAP SE or an SAP affiliate company. All rights reserved. Public 12

12 SAP S/4HANA 1610 large version (incl. all LoB recommended solutions**) SAP S/4HANA FINANCE SAP S/4HANA HUMAN RESOURCES SAP S/4HANA SOURCING & SAP S/4HANA MANUFACTURING SAP S/4HANA SUPPLY CHAIN PROCUREMENT Suite Products Governance, Risk, and Compliance for Finance Financial Planning and Analysis Accounting and Financial Close Treasury Mgmt. Receivables Mgmt. Invoice Mgmt. and Accounts Payable Accounting and Closing Operations Accounting Cost Mgmt. and Profitability Analysis Core Human Resources And Payroll Talent Mgmt. Time and Attendance Mgmt. Human Capital Analytics Time Recording Supplier Collaboration Business Network Guided End-User Buying External Workforce Management Operational Purchasing Collaborative Sourcing and Contract Mgmt. Invoice and Payables Mgmt. Supplier Management Procurement Analytics Responsive Manufacturing (ME, MII, QIM, VE) Production Operations (MII, QIM) Digital Operations for Manufacturing (MII) Constrained production planning Production Scheduling Production Orchestration and Execution Quality Mgmt. Integrated Business Planning Global Batch Traceability Extended Warehouse Mgmt. Transportation Management Extended Warehouse Mgmt. Advanced ATP Inventory and Basic Warehouse Mgmt. Production Planning Digital Core Enterprise Management Order and Contract Mgmt. Service Mgmt. * Service Master Data Mgmt.* Service Parts Mgmt.* Service Agreement Mgmt.* Maintenance Mgmt. Product Development and Project Control Production Engineering Products Sales Planning and Performance Mgmt. (ICM) Billing and Revenue Innovation Mgmt. (BRIM) Asset Operations and Maintenance* Environment, Health, and Safety Enterprise Portfolio and Project Mgmt. Commercial Project Mgmt. Compliant Product Lifecycle Mgmt.* Suite Cloud for Sales SAP S/4HANA SALES Cloud for Service Service Engagement Center SAP S/4HANA SERVICE S/4HANA Marketing Cloud Cloud for Customer Commerce SAP S/4HANA MARKETING AND COMMERCE INDUSTRIES Digital Asset Network Digital Operations for R&D SAP S/4HANA ASSET MANAGEMENT SAP S/4HANA RESEARCH & DEVELOPMENT 2016 SAP SE or an SAP affiliate company. All rights reserved. *(partially) Compatibility Scope **For details on Suite Solutions per LoB see respective detail slides Public 13

13 SAP S/4HANA Enterprise Management logistics The digital core Financials HCM Enterprise Management Logistics Logistics General (LO) Sales and Distribution (SD) Logistics Execution (LE) Plant Maintenance (PM) Production Planning & Control (PP) Environment, Health & Safety (EHS) Product Lifecycle Management (PLM) Materials Management (MM) Quality Management (QM) Customer Service (CS) Project Management (PS) Others: Global Trade Management, Compensation Management, Agency Business, Industry-specific functions: Discrete industries: automotive, high tech, industrial machinery and components, aerospace and defense, mill products, mining, chemicals The Digital Core SAP S/4HANA Enterprise Management logistics comprises generally the functionality covered by SAP ERP 6.0 logistics Major simplifications in - Inventory management - Material requirements planning - Capacity planning - Sales and distribution - Procurement Complemented by capabilities of - SCM - CRM - PLM - SRM Supporting digital trends such as the Internet of Things (IoT) and business networks 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 14

14 SAP S/4HANA Simplification List Overview The Simplification List is a collection of Simplification Item. Within a Simplification Item it is described what is the difference of a functionality between SAP Business Suite and SAP S/4HANA. Currently the Simplification List provides this information for the SAP S/4HANA, on-premise 1511 release and will provided as part of the SAP S/4HANA documentation. A Simplification Items does have a simplification categories and provides information about potential impact for the customer. Based on the simplification item custom code check analysis can be executed. Related services offerings are available (or will be available over time). Change of existing functionality Simplification List Area Simplification Item Simplification Item Simplification Item Simplification Item Basic Information Impact S-Item ID Short Description Edition / Release Simpl. Category Impact Description Recommendation Custom Code Functionality which is adapted in detail (e.g. data model changes removal of aggregates or the Material Master field length extension). Require primarily technical migration. From business process and user point of view basically stays the same as before. Might come with custom code adaption effort on customer side Functionality not supported anymore Functionality which is not supported within current SAP S/4HANA on-premise release (because the technology is no longer state of the art and in many case an alternative and better functionality is available). Example: ERP Shopping Cart replaced S/4HANA Self Service Procurement. The customer need to adapt to the alternative functionality (including custom code aspect). Area Simplification Item Simplification Item Simplification Item Related Services Customer Effort Service Offering Functionality not strategic anymore Functionality which is considered as not strategic in future. The functionality is still available unchanged (so no adaption effort) within the current SAP S/4HANA on-premise release. SAP S/4HANA related innovations are not planned to be provided for these functionalities. In most cases an alternative functionality is already available. Example: Logistics Information System is still available but the open CDS based analytics approach would be the recommended alternative 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 15

15 Maintenance extension of Compatibility Packs 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 16

16 SAP S/4HANA Enterprise Management Key innovations 1511 mapped to Product Map Key Innovations 1511 Procurement Inventory Management Material Valuation Material Requirements Planning Available to Promise Capacity Planning Order Mgmt. & Billing Industry to Core Accelerated Financial Close Universal Journal & Central Finance DIMP is the most widely used industry solution within SAP. This solution is heavily used by cross industry customers. (25 % Inside / 75 % outside leading industries) Therefore SAP s strategy has to support these Endto-End Processes via SAP S/4HANA SAP SE or an SAP affiliate company. All rights reserved. Public 17

17 Industry Value Chains are transforming SAPs Strategy: Make industry leading processes accessible for everybody in S4/HANA (Pick from the buffet) You see You think You need Today Source Source Engineering plastics and polyurethanes in the BMW i3 Source Equipment Value several Bill USD Fact: BASF runs DIMP JIT in an single instance today Oil & Gas Service Companies are renting out heavy equipment (Equipment Tools Management) IS OIL & IS DIMP (today Side by Side ) need to be on a single instance (future). Future Source Source Concept: Meyer Werft is using Lean Manufacturing concepts like JIS today for Shipbuilding Transformation in full motion: Google is planning to develop cars SAP SE or or an SAP affiliate company. All rights reserved. Public 18 Source

18 SAP S/4HANA Synergies & collaboration in 3 dimensions Innovative Cross Industry Business Processes for: Automotive; Aerospace & Defense; Engineering, Construction & Operations; Industrial Machinery & Constructions; High Tech Processes: Innovation in business processes Throughput in inventory management and valuation MRP on HANA ATP Just in Time / Just in Sequence Processing Advanced Batch Management Lean Manufacturing and Logistics with Kanban Material Interchangeabilities and Succession Automated Credit Memo Processing Scheduling Agreement Processing Vehicle Management System Build-to-Order Optimization Automated Earned Value Management And many more Rebate processing Innovation in Architecture Throughput Scalability Principle of one SAP Fiori TCO reduction 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 19

19 SAP S/4HANA - Roadmap for Retail & Fashion (on premise) SAP S/4HANA Finance 1605 w/ SAP Merchandising/Fashion Management on SAP HANA SAP Customer Activity Repository 2.0 FP3 SAP Merchandise Planning for Retail 1.0 SAP Assortment Planning for Retail 1.0 FP3 SAP Allocation Management for Retail SAP S/4HANA Retail for merchandise management SAP S/4HANA Fashion Management ,4 Q1/ Q Q Q SAP S/4HANA Retail for merchandise management ,6 SAP Customer Activity Repository SAP Merchandise Planning for Retail SAP Assortment Planning for Retail SAP Promotion Management Retail SAP Allocation Management for Retail 2.0 4,5 1) Hybrid scenarios managed cloud tbd 2) Dates not fixed yet 3) No full Fashion Management scope, includes Fashion Wholesale; excludes Fashion Manufacturing 4) Working title 5) Earliest scenario, S/4HANA optimized version may follow in HY ) No Fashion scope SAP S/4HANA Retail for merchandise management SAP S/4HANA Fashion Management SAP SE or an SAP affiliate company. All rights reserved. Disclaimer: This road map represents SAP s current plan, but is subject to change without any prior notification. Public 20 Certain planning constraints, such as regulatory and licensing issues, are outside of our control and may impact the timelines.

20 Key Innovations in logistics Material Requirements Planning Fast MRP run, and new working model for MRP controllers based on decision support. Material Valuation Principle of One, scalable material valuation capabilities, utilizing Material Ledger, that way customers can use multi-currencies, valuation methods per different accounting laws like GAAP. Inventory Management Simplified data model resulting in increased through-put, flexible analytics at the most granular level. Available To Promise & Backorder processing Enhance ERP by advanced ATP capabilities in APO, new coding to make it better, innovation benefit as functionality will be refreshed. Order Management & Billing Enable monitoring of end-to-end order-to-cash process & take actions for any exceptions, information on the exceptions to resolve the issues, lower TCO due to data model simplification, support for the most recent versions of business features such as FSCM Credit Management, GTS Foreign Trade, SFIN Revenue Accounting, new analytical capabilities. Procurement Increased efficiency in the Procure-to-Pay processes, new Analytical Apps & Spend KPI s, Ariba Network Integration for PO Order and IV. Capacity Planning New deployment option for bringing PP/DS on ERP, reducing integration efforts, allowing seamless master data & UI harmonization. Industry to Core Discrete industries functionalities such as Just-in-Time & Just-in- Sequence available for wider cross industry adoption through the Core 2015 SAP SE or an SAP affiliate company. All rights reserved. This is the current state of planning and may be changed by SAP at any time. 21

21 Material Requirements Planning Business Challenges» Increasing customer service» Low inventory accuracy» Revenue losses due to stock-outs» On-time delivery performance Business Benefits» Fast Performance by up to factor 10 / Memory footprint reduction by factor 5» Role-based, KPI-driven solutions are proactively proposed for users to consider» System analyzes and does Impact Analysis of the entire material flow in real time and identifies disruptions in the material flow» Run on any device Capabilities» Prioritized view on material flow issues» Real-time alerting» System-generated solution proposals» MRP can run sub-daily and as frequently as required» Demand information is propagated faster through the supply chain Business Benefits» Clear visibility across the material flow» Proactive decision making in response to changing demand» Flexible tailoring of available capacities and receipts to meet required quantities» Real time inventory monitoring and automating the creation of procurement proposals 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 22

22 MRP Performance Example data from a customer PoC Runtime in hours ,5 40,2 Scenario 1 Scenario 2 17,5 Data volume increase 44,8 17,5 Scenario 1 Scenario 2 Materials 1,5 Mio. 1,5 Mio. Thereof configured materials Inserted purchase requisitions 1,0 Mio. 1,0 Mio. Inserted planned orders 2,3 Mio. 10,4 Mio. Inserted dependent requirements 9,2 Mio 96,0 Mio 10 0 Reference 4,5 Version 1 4,3 5,5 2,5 1,5 1,0 3,9 2,2 Version 2 Version 3 Version 4 Version 5 Legend: MRP Classic on AnyDB (12-way parallelization) MRP Classic on HANA (12-way parallelization) MRP Live on HANA MRP Live on HANA HANA only 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 23

23 How SAP S/4HANA helps Flexible Process Automation (Principle of code push down in MRP) Dispatcher App-Server DB-Server Dispatcher App-Server HANA Read planning file entries Read planning file entries For every planning file entry Read planned orders Read purchase requisitions Read purchase orders Read production orders Read sales orders Read stock transfer demand MRP planning logic Update planned orders Update purchase requisitions Plaf Eban Mdbs Caufv Vbbe Mdup Plauf Eban For all planning file entries with the same low-level code Read Plaf ReadE ban Read Ekpo Afpo Vbbe Ekko Merge + Split Plan set1 Insert Plaf Plan set2 Merge + Split Insert Eban ABAP post-processing (e.g. determine release strategy) Plan set3 Insert Resb In the classic implementation, the application server calls the database server many times to read a lot of data. This data is then transferred from the database server to the application server. All tables are read sequentially one after another. In the SAP S/4HANA Implementation, many tables are read in parallel using the parallelization capabilities. The data is not transferred back to the application server but used to compute material shortages directly in the database server lines of code ~90 lines of code 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 24

24 Key Capabilities of an exception-based user interface design Key capabilities Consolidation of activities, Intelligent navigation patterns, Intuitive usability Contact data Personalized post-it notes Trends & analytics at a glance Simulation Full customer contact history Decision Support Personalize layout variants Contextdependent actions Example: MRP Cockpit - Material Shortage 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 25

25 Planned innovations Q4/2016 Truckload optimized Purchase Orders / PP-MRP Planned Innovations Reduce transportation costs utilizing truckload optimized purchasing Reduce communication effort between supplier and customer The Material Planner can quickly identify all materials to be ordered due today or within the next days. All materials from one vendor are ordered together in a way that the availability is balanced and that the used means of transportation are fully loaded. SAP Fiori App : Create Optimal Orders for Shipment Fiori Application to identify all materials due today or in the near future to avoid material shortages. Quantities are proposed for one selected vendor to balance the availability of these materials and to fully load the chosen means of transportation. After a possible manual correction, one purchase order is created handling all selected materials. This is the current state of planning and may be changed by SAP at any time SAP SE or an SAP affiliate company. All rights reserved. Public 26

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37 Real Time Inventory Management Business Challenges» Low throughput prevents real-time inventory» Missing embedded and real-time analytics» Missing comprehensive data model» Process & data redundancies increase effort Business Benefits» Improve on-time delivery» Increase inventory turnover» Reduce cost of inventory» Single source of truth of inventory in one system Capabilities» Real-time processing of inventory postings and visibility of inventory values» Posting of finest granularity like handling unit, lot size 1, sensor data» Decreased stock levels (e.g. reduce buffers) due to increased transparency» Easy to consume data model supporting flexible analytics» Manage the changing demand for smaller lot sizes passing through the logistic operations Quantity Weekly Replenishment Time Safety stock Daily collective goods issues Buffers Reorder point Quantity Sub-daily replenishment Time Safety stock Continuous goods issue postings Just-in-time Reorder point 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 38

38 SAP S/4HANA Enterprise Management Key Innovations - Inventory Management Improve by elimination of aggregates Business Suite Inventory History Aggregates MSPR MSTQ MSLB MSTE on-the-fly aggregation MSTQH MSLBH MSKUH MSTEH MSTBH MSKAH MSSQH MKOLH MSTB MSSQ MSSA MSKU MSKA MKOL MCHB Eliminate Aggregates MSSAH MCHBH MSPRH MARDH Material Master MARCH MKPF MSEG Document MATDOC MARC MARD MARCH MARDH 26 aggregate tables 1 document table 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 39

39 Inventory Management Examples for unlimited Data Through put in Goods Movement Example Use Case: Distribution Center 1. Parallel Production combined postings Multiple production lines produce same product by single item tracking and combined postings for Goods issue raw material Goods receipt finished product Goods issue finished product Goods receipt finished product at distribution center 2. Ice Truck Scenario Distribution Center Trucks deliver goods to customer directly. Coming back to the distribution center the orders and deliveries are uploaded from offline device. Combined postings Creation of sales order and delivery Picking of goods Goods issue, invoicing Truck replenishment SAP SE or or an SAP affiliate company. All rights reserved. Public 40

40 Simplifications are the enabler for throughput increase of 10 up to 25 Throughput (items/sec) Parallel postings of large material documents large OEM back-flush requirement (example) SAP Business Suite on SAP HANA # Parallel Processes Negative stock not allowed No database locks any more Automotive scenario test case Reporting point backflush with transfer posting of 100 items each 60% common parts SAP SE or or an SAP affiliate company. All rights reserved. Public 41

41 Planned innovations Q3/2016 Enhanced Usability / Inventory Management (IM) Planned Innovations Decrease of average inventory levels through extended transparency on inventory turnover and additional apps like Transfer Stock Cross-Plant, Stock Overview for Multiple Materials and performance optimization for goods movements Enhancements of Fiori Apps for Inventory Managers and Warehouse Clerks Functional and usability enhancements to handle special stock in various processes in inventory. Physical Inventory Document Overview App Quick and easy to use overview of a physical inventory document. This is the current state of planning and may be changed by SAP at any time SAP SE or an SAP affiliate company. All rights reserved. Public 42

42 Real Time Inventory Management Inventory Turnover Analysis Key benefits» Real time stock analysis in graphical way» Overview of the entire inventory turnover situation for the selected scope of materials and / or plants and the selected time range» Dive into the details of the inventory analysis 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 43

43 Real Time Inventory Management Inventory Turnover Analysis Key benefits» Comprehensive stock overview per material on the time scale» Display the most important inventory key figures 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 44

44 Production Planning & Scheduling Options Today APO Standard Deployment Model SCM 7.0 EhP3 Delivered in Q (EhP8 & EhP4) PP/DS for S/4HANA1610 ERP, S/4 HANA APO Live Cach e SCM Server APO ERP Live Cache Add-on APO + Embedded PP/DS ERP on HANA Live Cache Suite (ERP+APO) on HANA PPDS S/4 HANA Live Cache S/4 + PPDS Large & X-Large Installations High Data Volume: two NetWeaver Servers APO with D/Q/P Landscape Available for S/4 with restricted target mode Medium-Sized Installations Simplified Landscape, reduced TCO Less DB/OS/Backup/Basis Operations Suite on HANA Installations Simplified Landscape, reduced TCO Simplified Application: Integration, Data Model, UI, Analytics No restrictions of APO- PPDS use cases S/4 HANA Installations Same changes as Business Suite on HANA New Fiori based Gantt Chart Additional improvements around embedding PP/DS into S/4 HANA 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 45

45 PP/DS for SAP S/4HANA 1610 :Finite capacity Increase production throughput and reduced production costs leveraging finite capacity planning embedded in S/4HANA Reduced order cycle time Reduce replanning effort Minimize shortage situations Harmonization of capacity load Creating finite production plan according to the available capacity situation and schedule available resources and generating production plan to the precision of seconds. Gantt themed web based scheduling board to manually schedule capacities SAP Fiori App for Production Scheduling Board This is the current state of planning and may be changed by SAP at any time SAP SE or an SAP affiliate company. All rights reserved. Public 46

46 Comprehensive Plan to Produce in ONE System Key Benefits q Comprehensive plan to produce in a single system at a low cost q Just one database to manage. Less time for setup, back up and Sales Order Entry MRP Run + Constrained Planning Interactive Planning Release to Production Production Execution Monitor and Control administration q Integrated material requirements planning q Simple and seamless integration q Easy monitoring and Production Planner Production Supervisor Production Operator Production Planner administration 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 47

47 Simplification in Following Areas Master Data Harmonization One Material Master, One Resource Maintenance Create, Update for Source of Supply without Queues CIF Simplification Simplified Integration UI/Process Harmonization MRP Run with SAP ERP and SAP APO (Advanced Planning) Materials One Fiori-based Planner Launchpad for Material Flow and Capacity Simplified Navigation Across SAP APO and SAP ERP Unified Order Conversion Reports 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 48

48 One Material Simplified Maintenance, Consistent Data Fiori UI will look differently PP/DS-relevant fields can be maintained q Single material master maintenance for SAP ERP and SAP APO-relevant materials q No integration model maintenance q Synchronous commit, consistent data q Immediate error handling Materials that need to be planned in SAP APO Immediate error display from SAP ERP and SAP APO 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 50

49 One Work Center Simplified Maintenance, Consistent Data q Single resource data maintenance for SAP ERP and SAP APO-relevant resources q No integration model maintenance q Synchronous commit, consistent data Resources that need to be transferred to SAP APO q Immediate error handling Immediate error display from SAP ERP and SAP APO 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 51

50 One Sources of Supply Simplified Integration, Immediate Feedback q No integration model maintenance q Synchronous update of BOM and PDS without queues q Immediate change transfer of PDS 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 52

51 PP/DS in S/ On-Premise : MRP Live (SAP APO and SAP ERP Materials) MRP Run with SAP ERP and SAP APO (Advanced Planning) Materials DEMO_APO_FIN APO finished product DEMO_ERP_FIN ERP finished product DEMO_APO_SEMIFIN APO semi finished DEMO_ERP_SEMIFIN ERP semi finished DEMO_ERP_SEMIFIN1 ERP semi finished DEMO_ERP_SEMIFIN1 ERP semi finished Benefits q MRP run with SAP ERP and SAP PP/DS (Advanced Planning) materials if all downstream materials are Advanced Planningrelevant q Single source of low level code calculation q Consistent data across low level code runs for SAP ERP and SAP APO q Necessity of scheduling only single MRP run 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 53

52 PP/DS in S/ On-Premise : One MRP Cockpit One MRP Cockpit Tiles to open Capacity and MRP Apps Number of resources q Capacity utilization of resources can be monitored using this app q Production Planners can add the area of responsibility as plants in which they want to monitor the capacity Relevant plants and planners can be added 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 54

53 PP/DS in S/ On-Premise : Monitor Capacity Utilization Evaluation Profile and Horizon based on the customization Filter: Currently filtered by resources Utilization Chart based on daily buckets KPIs Navigation Options 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 55

54 PP/DS: Monitor Capacity Utilization Utilization Chart List of Ressources Navigation to Planning Table or Scheduling Board 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 56

55 PP/DS in S/ On-Premise : MRP Cockpit ( Production Scheduling Board) Filter: Currently filtered by resources Utilisation, Legend and Settings In Line Utilisation display Gantt based operations/activities/ breakdown/downtim e view 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 57

56 PP/DS for S/ On-Premise : Additional Resources S/4 HANA 1610 Landing Page: PP/DS Help Landing Page: 000/en-US/frameset.htm Release Note: Release Information Note: Production Planning and Detailed Scheduling for SAP S/4HANA 1610 Simplification List : Simplification List: Production Planning and Detailed Scheduling for SAP S/4HANA 1610 Fiori reference Lib : Production Scheduling Board: Fiori reference Lib : Monitor Capacity Utilisation : SAP SE or an SAP affiliate company. All rights reserved. Public 58

57 SAP S/4HANA aatp Overview SAP S/4HANA advanced ATP, is SAP s next generation Order Promising and Confirmation solution that provides: fast product availability check, both online and in batch mode, to make accurate delivery date commitments against customer orders use case-driven product allocation check to manage shortages Back Order Processing with intuitive requirement classification and filter criteria flexibility to make informed last minute changes to confirmations before delivery intelligent and fully automated selection of best confirmation based on ATP situations at alternative locations and/or for substitutable materials * Transportation and shipment scheduling integrated in S/4HANA Transportation Management * * on roadmap 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 59

58 Available to Promise Current functional model With SAP S/4HANA Simple Logistics APO Product Availability Check Product Allocation Substitutions Code Pushdown to HANA Rescheduling Etc. SAP S/4HANA ERP Product Availability Check Data replication via CIF Product Availability Check Product Allocation Rescheduling Substitutions Etc. Product Allocation Substitutions Rescheduling Etc SAP SE or an SAP affiliate company. All rights reserved. Public 60

59 Product Availability Check (PAC) Available Functionalities: Effectiveness Can I accurately provide commitments to customer orders? Mass enabled product availability check Seamless integration with - sales order processing of S/4HANA - planned & production order processing of S/4HANA Support of special stock and batches Future Outlook: Fiori based simulation and explanation tool Consideration characteristics via segmentation Special processes for shelf life (ARUN) 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 61

60 Back Order Processing and Delivery Release APP Sales Purchase Production Inventory Live Supply, Demand, Inventory Flexible Run of Back Order Processing Time Shipping Controller Analyze and optimize outbound shipments as an optional step. Increase Service Level, minimize material handling and transportation costs Transfer Request Outbound Deliveries 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 62

61 Back Order Processing (BOP) Manage Priorities Can I efficiently provide order commitments protecting my business interest? Available Functionalities: Significantly faster than traditional rescheduling Based on requirement segmentation and classification Win, Gain, Redistribute, Fill and Loose Filter and Sorter for each segment FIORI based BOP Set Up and BOP Result Monitor Future Outlook: Automatic exception handling with fallback variant Interactive Back Order Processing 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 63

62 Planned innovations Q4/2016 (1610 & 1611) advanced ATP Backorder processing Planned Innovations Reduce TCO. One Run fits all. Former solution requested more subsequent runs. Increase margin due to flexible order confirmation based on business priorities in ATP backorder processing. Flexible and intuitive selection and ranking of sales order requirements. High performance mass ATP-check. Advanced ATP Backorder Processing New FIORI-UIs to set-up BOP-runs. New concept for requirement classification: - Winner - Gainer - Redistributor - Filler - Looser New FIORI-app to display the BOP-result: The result is displayed on different aggregation levels and allows an easy identification of (and fast drill down to) confirmation issues. This is the current state of planning and may be changed by SAP at any time SAP SE or an SAP affiliate company. All rights reserved. Public 64

63 Back Order Processing - Details The five confirmation strategies Win Confirm as requested Shall be fully confirmed in time e.g. The most important customer orders Gain Improve if possible Shall keep the confirmations and should gain if possible. e.g. Orders that cannot lose the earlier confirmations Redistribute Redistribute and Reconfirm Might gain, Might lose. e.g. Orders that can lose confirmations Q Fill Delete confirmation, if required Shall not gain anything, should keep confirmation, but may also lose. e.g. Non-priority customer orders Q Lose Delete confirmation Shall lose all confirmations e.g. orders under credit block 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 65

64 Planned innovations Q3/2016 (1608) advanced ATP Release for Delivery app Planned Innovations Improved customer service value and increased on-time delivery for important sales orders. Confirmation of all sales orders reliable and transparent SAP FIORI App for Release for Delivery Fiori application to enable timely actions on short term supply and demand changes. Manual redistribution of already confirmed quantities according to the company prioritization strategy This is the current state of planning and may be changed by SAP at any time SAP SE or an SAP affiliate company. All rights reserved. Public 66

65 Release for Delivery Last Minute Changes Can I manipulate confirmations to manage last minute escalations? Available Functionalities: FIORI based interactive changes to sales order confirmations before releasing the orders to delivery Impact simulation of current ATP situation Direct navigation to Sales Order Future Outlook: Forward navigation to the explanation components for - Product Allocation (PAL) - Product Availability Check (PAC) 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 67

66 Planned Roles at a Glance Role Quality Technician Quality Planner Quality Engineer Quality Manager Quality Auditor Calibration Technician 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 68

67 Quality Technician: Manages physical samples (process industry) Carries out different types of quality inspections Provides inspection results to enable timely informed release decision and therefore support ensuring product compliance and quality requirements Creates unplanned inspection characteristics and physical samples Triggers planned and unplanned inspection lots Records defects in case of an issue Tracks and confirms quality notification tasks the quality technician is assigned to 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 69

68 SAP S/4HANA LoB: Manufacturing inventory management 1610 Recent innovations* 2017 Planned innovations** 2018 Product direction** 2019 Product vision** Process innovations Additional performance optimization for goods movements Simplified material valuation to enable parallel inventory posting for moving average price-driven materials Integration of catch weight management into SAP S/4HANA User experience New analytical and transactional SAP Fiori apps for inventory managers and warehouse clerks UX and functional enhancements of existing SAP Fiori apps SAP Fiori visual theme for classic transactions Process innovations Communication of goods receipts to Ariba Network SAP Fiori UX enhancements with an overview page to support the daily business of inventory managers and warehouse clerks Analytical cube and multidimensional reporting for physical inventory items Analytical cube and multidimensional reporting for goods movements Availability of existing SAP Catch Weight Management for current customers Direct store delivery (DSD) with empties in SAP S/4HANA (compatibility mode) User experience New transactional and analytical SAP Fiori apps for warehouse clerks and inventory managers UX and functional enhancements of existing SAP Fiori apps in inventory management Process innovations Inclusion of predictive analytics into process monitoring for decision support Provision of comprehensive overview of inventory KPIs to facilitate process optimization and benchmarking Enablement of integration using standardized APIs to facilitate implementation of innovative business processes on SAP HANA Cloud Platform Demand-driven (pull-oriented) scenarios in intercompany and intracompany stock transfers Cloud analytics for inventory movements*** in SAP HANA Cloud Platform Benchmark stock and inventory through analysis of stock, material flow, and master data across plants Process innovations Adoption of artificial intelligence and machine learning for master data and process optimization Cloud analytics for inventory movements in SAP HANA Cloud Platform*** Benchmark stock and inventory through analysis of stock, material flow, and master data across company * Feature highlights for SAP S/4HANA See Feature Scope Description of SAP S/4HANA 1610 for full scope. *** Not part of SAP S/4HANA shipment; requires additional products. ** This is the current state of planning and may be changed by SAP at any time without notice SAP SE or an SAP affiliate company. All rights reserved. Public 70

69 SAP S/4HANA LoB: Manufacturing available to promise (ATP) 1610 Recent innovations* 2017 Planned innovations** 2018 Product direction** 2019 Product vision** Backorder processing (BOP) SAP Fiori apps for setting up the BOP run: Configure BOP segment Configure BOP variant Schedule BOP run SAP Fiori app for results display Monitor BOP run SAP Fiori apps for interactive confirmation Release for Delivery Configure Order Fulfillment Responsibilities Product allocation (PAL) for sales Configure PAL object Assign PAL data to material or materiallocation combination Manage PAL planning data Backorder processing Enhance BOP BOP analytics: simulate selection and sorting Enable handling of stock transfer documents Automatic exception handling (fallbacks) Provide extensibility features Enhance Release for Delivery app Multiple schedule lines Analytical entry screen (bubble chart) Product allocation (PAL) Extensibility and flexibility Instance-based authorization Alternative sources of supply Product availability check (PAC) Rules-based ATP (RBA) Alternative plants Determination of allowed alternatives Mass check of allowed alternative plants Selection of best-alternative plant Integration of RBA result in SD sales order Replace existing line item Add additional subitem(s) Backorder processing Interactive BOP based on Release for Delivery app BOP analytics for ATP result Product allocation (PAL) for production PAL analytics: explanation component Decision support to optimize process setup Machine-learning capabilities in rules-based ATP In-order entry and backorder processing Comprehensive embedded analytics for rulesbased ATP, including explanation and simulation capabilities Rules-based ATP Comprehensive embedded analytics for rulesbased ATP, including explanation and simulation capabilities Decision support to optimize process setup Profitability-based ATP Product allocation PAL for production and external procurement Modeling of constraints production and supplier capacity in multilevel scenarios PAL for transportation and warehousing Transportation and shipment scheduling PAC analytics: reusable SAP Fiori-based explanation and simulation component Reuse of sophisticated scheduling capabilities of the integrated transportation management solution * Feature highlights for SAP S/4HANA See Feature Scope Description of SAP S/4HANA 1610 for full scope. ** This is the current state of planning and may be changed by SAP at any time without notice SAP SE or an SAP affiliate company. All rights reserved. Public 71

70 SAP S/4HANA LoB: Manufacturing logistics execution 1610 Recent innovations* 2017 Planned innovations** 2018 Product direction** 2019 Product vision** Enhancements to SAP Fiori apps for shipping specialists in SAP S/4HANA SAP Fiori apps for job scheduling of delivery creation and goods issue posting Outbound and inbound processing Search-based system interaction for Outbound delivery Inbound delivery Returns delivery In-app extensibility Delivery creation Delivery processing Object pages Outbound and inbound processing New engagement model for shipping specialist and receiving specialist based on analytical insights: Key facts and figures Drill-down options to access more-detailed information Business process monitoring Graphical representation of selected key performance indicators to foster insight to action, such as lead-time reduction in picking and packing Outbound and inbound processing Establish delivery processing as material flow hub for end-to-end scenarios in manufacturing and distribution network, such as subcontracting and intracompany or intercompany stock transfer Integrate IoT-driven track and trace scenarios * Feature highlights for SAP S/4HANA See Feature Scope Description of SAP S/4HANA 1610 for full scope. ** This is the current state of planning and may be changed by SAP at any time without notice SAP SE or an SAP affiliate company. All rights reserved. Public 72

71 SAP S/4HANA LoB: Manufacturing manufacturing engineering, planning, and production operations 1610 Recent innovations* 2017 Planned innovations** 2018 Product direction** 2019 Product vision** Manufacturing engineering Visual enterprise manufacturing planner Configurable work instruction Production planning Production planning and detailed scheduling as integrated part of SAP S/4HANA Production scheduling board (1st scope) Material requirements planning (MRP) cockpit: planning apps for make-to-order and projectbased manufacturing Production operations Plant performance analytics SAP Fiori object pages for major production objects Manufacturing engineering Engineering cockpit for comprehensive bill of materials (BOM) and routing management, including execution-related master data Manufacturing change management Production planning Unification of master data maintenance and integration simplification Interactive and simulated production planning (SAP Fiori UX) Demand-driven replenishment: stock-level management Production operations Enhancement of user experience for production supervisors with new SAP Fiori apps Fabrication and fab assembly execution for complex assembly Manufacturing engineering Extended Industry 4.0 scenarios for manufacturing engineering and change management Production planning Demand-driven production of individualized products Demand-driven replenishment: supply management Integration of integrated business planning (IBP) with demand and supply planning Production operations Installation execution for complex assembly Support of scalable subcontracting scenarios for distributed supply networks Manufacturing engineering Intelligent assistance for handling of changes from engineering and manufacturing Production planning Comprehensive demand-driven production planning, integrated with IBP, purchasing, and manufacturing execution High-performance plant simulation for capacity, purchasing, and financial planning Production operations Intelligent assistance of manufacturing execution processes, integrated with IoT applications Subcontracting Demand-driven replenishment for parts provided Order of individualized products Advanced settlement processes * Feature highlights for SAP S/4HANA See Feature Scope Description of SAP S/4HANA 1610 for full scope. ** This is the current state of planning and may be changed by SAP at any time without notice SAP SE or an SAP affiliate company. All rights reserved. Public 73

72 SAP S/4HANA LoB: Manufacturing quality management 1610 Recent innovations* 2017 Planned innovations** 2018 Product direction** 2019 Product vision** Quality engineering Quality management (QM): object pages for quality planners Core data services (CDS) views for master data Quality assurance and control New SAP Fiori transactional app for results recording, enabling quality technicians to record inspection results easily and efficiently SAP Fiori apps for quality technicians in SAP S/4HANA: object pages for quality technicians Simplified inspection process in extended warehouse management (EWM) within SAP S/4HANA (first scope) Quality improvement CDS views for quality inspections QM: role-based SAP Fiori launchpads Quality engineering Additional object pages in SAP Fiori for a wide range of quality objects Quality assurance and control Enhanced SAP Fiori app for results recording (extended version) New SAP Fiori transactional app for monitoring inspection lots and making usage decisions Collective usage decision Simplified inspection process in EWM within SAP S/4HANA (extended scope) Quality improvement SAP Fiori apps to improve quality control by monitoring and adjusting processes Analytics for inspection results Newly designed object pages with charts to display results history and single values in graphical form New SAP Fiori apps for capturing and monitoring defects Quality engineering Simplified inspection planning process Streamlined test equipment management Quality assurance and control New SAP Fiori apps and overview pages for complaint management processes Quality improvement Comprehensive analysis of QM data to enable insight to action Enhanced overview pages containing analytical information as entry points for different roles in QM Quality engineering Reduction of quality costs and sustainable prevention of defects based on an advanced closed-loop inspection planning process that includes: Failure mode and effects analysis (FMEA) and control plan Production part approval process (PPAP) Audit management Predictive quality management Quality improvement Machine learning capabilities to enable a guided and proactive complaint process, supported by proposed issue resolutions Standardization of issue resolution procedures ( eight disciplines [8D]) and corrective and preventive actions, including root cause analysis, such as 5-why analysis and collaborative scenarios * Feature highlights for SAP S/4HANA See Feature Scope Description of SAP S/4HANA 1610 for full scope. ** This is the current state of planning and may be changed by SAP at any time without notice SAP SE or an SAP affiliate company. All rights reserved. Public 74

73 SAP S/4HANA System Conversion Example: activities for logistics scope Pattern 1: Activity before Migration + Downtime Material Ledger Inventory valuation not supported in S/4HANA. Switch to material ledger can be done before migration (activation of ML supported via dedicated report) During downtime ML migration to new logic. Pattern 2: Activity before or after Migration BOM-Determination One Logic for BOM-Determination only via production version. Conversion to new logic via report possible before and after migration possible, has to run before starting MRP in SAP S/4HANA Pattern 3: Activity after Migration Simplification of MRP areas One logic for all storage location MRP-Logic. In case of using such logic, program needed to create missing MRP-areas and MRP-File before running MRP in SAP S/4HANA Pattern 4: Technical Migration MM-IM Conversion of IM-Tables (MSEG) into new MATDOC 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 75

74 Further Information

75 Official road map content available on Service Marketplace Product Road Maps > Cross Product > S4HANA

76 SAP Fiori SAP Fiori, User Productivity Examples Search term: SAP GUI Fiori SAP Fiori Library: sap/fix/externalviewer/ 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 78

77 SAP S/4HANA Cookbook SAP SE or an SAP affiliate company. All rights reserved. Public 79

78 SAP S/4HANA Simplification List Go: Navigate: Enterprise Management > SAP S/4HANA > S/4HANA On Premise 1511 > Simplification List 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 80

79 SAP S/4HANA Conversion Guide Go: Navigate: Enterprise Management > SAP S/4HANA > Conversion Guide 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 81