SCM Consulting Solutions Customer Reference for: MRP Monitor, Forecast Monitor An Engineering and Construction Company
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
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
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
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
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
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
Thank you! Marc Hoppe Consulting Manager Supply Chain Management Grosser Grasbrook 17 20457 Hamburg, Germany M.: +49 160 9082 1606 E: marc.hoppe@sap.com
SCM Consulting Solutions SCM Consulting Solutions with ERP 1.1 ERP01: MRP monitor(1333018) 1.2 ERP02: Simulation of safety stocks (1363890) 1.3 ERP03: Simulation of lotsizes (1363889) 1.4 ERP04: Forecasting monitor (1341755) 1.5 ERP05: Servicelevel monitor (1341710) 1.6 ERP06: Replenishmentleadtime monitor (1341571) 1.7 ERP07: Backlog monitor (1341712) 1.8 ERP08: MRP Error monitor (1341705) 1.9 ERP09: Inventory controlling cockpit (1363888) More Infos can be found: www.sap.de/inventoryoptimization https://wiki.sdn.sap.com/wiki/display/scmcs/home SCM Consulting Solutions with APO 2.1 APO01: Changelogmonitor (1308968 ) 2.2 APO02: Lifecylceassistent (1319579) 2.3 APO03: Forecastingleveloptimierer (1366618) 2.4 APO04: Mising Parts Infosystem (1366621) 2.5 2.5 APO05: esoa Masterdatacockpit 2.6 APO06: Masterdatacheckmonitor (1366619) SCM Consulting Services 3.1 OPT01: Forecasting optimization (1292209) 3.2 OPT02: MRP optimization (1315243) 3.3 OPT03: Backlog reduction (1363923) 3.4 OPT04: Distribution optimization 2-nd Edition, Nov. 2007 2011 SAP AG. All rights reserved. 9
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