Generate Demand Forecast

The demand forecast can be generated in SAP APO Demand Planning leveraging its toolbox of statistical forecasting techniques. Further to that, the system can incorporate unlimited causal factors (events, price changes, environmental factors etc) to generate a demand forecast using multiple linear regressions. A multi-dimensional data model allows companies and marketplaces to flexibly model business partners down to the customer / store level.

Carry out material planning

The planner can do the material planning to generate the receipts to meet the demand. This can be done in the material requirement planning components of SAP R/3 or APO. The system will generate order proposals to meet the demand after executing the netting off logics. The APO SNP component does the supply planning and can calculate the most effective demand supply match. This can be done with an effective framework of cost structures and capacity constraints. The result of this activity is planned orders for produced materials and purchase requisitions for purchased materials.

Carry out scheduling activities

In this step order proposed that are generated in order to meet the demand and fall within the production horizon are considered for production scheduling by the APO PPDS component. The system considers a variety of constraints and can optimize the production schedule based on predefined parameters. The result of this step is a set of orders set in a sequence that is optimal to meet the desired objectives. The DS planning board also used to carry our other scheduling activities.

Firm plan and release to production

In this step the production planner releases the desired production schedule for execution. The planned orders are converted to Production orders and are then released for execution. The released production order is a firm intention to produce the product and serves as intimation to the manufacturing department.

Receive shop floor papers

The released production orders are received by the manufacturing execution department in the form of shop floor papers. The shop papers have the required details for the manufacturing of the product. The dates, the equipments to be used and the components required.

Raw material staging

On the basis of released production orders the raw material staging is done. The required raw materials is shifted to the shop floor to the designated area to be used in manufacturing process

Carry out production execution

In this step the manufacturing steps are carried out as per the details in the shop floor papers and are also confirmed back into the system. The details about the actual resource consumption and the components used are entered into the system for refining of the remaining plan and for planned actual comparisons and reporting.

Provide material for quality approval

In this step the finished product that has been manufactured is offered to the quality controller for final testing and release for dispatch. Any abnormalities in quality are first corrected and then the product is cleared for dispatch to the customer.

Carry out in-process quality checks

In this step the inbuilt quality checks and controls during the manufacturing process are carried out. The quality parameters that are critical to the final product quality are kept under check and monitored.

Manufactured goods checked by quality dept.

In this step the quality controller checks the final quality of the product and clears it for dispatch to the customer. Any inadequacy in quality is first removed via a rework process or the goods are rejected.

Stock material at plant or distribution center

In this step the distributor delivers the available finished goods on hand to the customers or to the distribution centers who service the end customer.

Discrete Industry: Make to Stock