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BMO5574:

Supply Chain and Logistics Management

SAP-SCM Module with Global Bike Company

By

Dr. Himanshu Shee

Victoria University

Version 1.2

Adapted from

SAP-SCM Module with

Global Bike Company using ECC and SCM

This manual is specifically designed for Supply Chain Management students. It is

developed using SAP-ERP Release 6.0 and SAP-SCM Release 5.0 for Global Bike

Company as an example. It is expected that the students should have a basic

knowledge of SAP-ECC master data.

byMarius TalosMarc Savard

Amar Ramudhin Version 1.0

Acknowledgement:Many thanks to Mikael Dauzet and Duc PhamAnh for helping in the development of the revised manual.

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Tutorial 1

Create product group, generate forecast using SOP in ECC

and transfer to SCM

The objectives of this module are:

To create a product group in ECC system.

To create an independent forecast for two products: FG-0010-XXX (Finished Bike)

and FG-0011-XXX (Ridge Front) using SOP planning tool over the planning

horizon.

To use 12 months historical data to create a time-series forecast, display the

interactive graphics to compare the historical values to the forecasting values.

To disaggregate the forecast values in their proportional factor.

To confirm planned independent requirement (PIR) data transfer to SCM.

Glossary

SAP ERP: SAP Enterprise Resource Planning offers a bundle of

components supporting ERP business processes.

SAP ECC: SAP ERP Core Component is the central technical component of

SAP ERP system landscape.

SAP SCM: SAP Supply Chain Management is a complete solution that

covers supply chain networking, supply chain planning, supply chain

coordination, and supply chain execution.

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Table of Contents

1 Create Forecast....................................................................................................................................4

1.1 Create a forecast for the finished products........................................................................4

1.2 Product Group...............................................................................................................................4

1.2.1 Create Product Group in ECC system............................................................................4

1.3 Create SOP Plan for product group........................................................................................8

1.3.1 Create SOP Plan in ECC system......................................................................................8

1.4 Transfer Plan to Demand Management.............................................................................17

1.4.1 Check PIRs values in SCM system................................................................................17

1.4.2 Transfer Plan........................................................................................................................19

1.4.3 Verify the transfer results in Demand Management.............................................21

1.4.4 Verify data transfer (PIR) in SCM system...................................................................25

Appendix.......................................................................................................................................................31

Useful SAP transaction codes............................................................................................................31

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1 Create Forecast

1.1 Create a forecast for the finished products

SAP provides a complete set of forecasting tools that can be used in a number of sales

and operations areas. The most flexible set of forecasting tools are provided in the

Sales and Operations Planning (SOP) transaction. SOP is a flexible forecasting and

planning tool within ECC in which sales, production, and other supply chain objects can

be set on the basis of historical, existing, and estimated future data. Rough-cut

planning can also be carried out to determine the capacities and resources required to

meet these targets.

SOP plans are transferred to Demand Management (PP-MP-DEM) in the form of

independent requirements. The requirements are used in Master Production Scheduling

(PP-MP-MPS) and Material Requirements Planning (PP-MRP) when planning is done in

ECC.

At the end of this module Planned Independent Requirements will be created on each

plant for FG-0010-XXX and FG-0011-XXX over the planning horizon.

1.2 Product Group

Frequently, forecasts and plans are created for a group of products to simplify the

planning process. In this exercise, you will create forecasts for a product group. The

forecasts for the product group will then be disaggregated to the individual product

forecasts using historical percentages.

You will use a product group consisting of two products: FG-0010-XXX (Finished Bike)

and FG-0011-XXX (Ridge Front). You will assume that, consistent with past sales data,

FG-0010-XXX will make up 30% of sales and FG-0011-XXX will make up 70%.

1.2.1 Create Product Group in ECC system

You need to login E12 (ERP EHP3) system to perform this task.

Menu path: SAP Menu – Logistics – Production – SOP - Product Group - Create

Transaction code: MC84

Enter this following information:

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1. Product group: Product Group XXX

2. Description: Finished Bike and Ridge Front Products

3. Plant: XXX1

4. Base Unit: ST

5. And then click Enter .

Hint: Replace XXX with your unique login ID number. Do not use 100 because it is

used as an example throughout the entire manual.


Member number Plnt Aggr. Fact. Proportion

1st member FG-0010-XXX XXX1 1 30

2nd member FG-0011-XXX XXX1 1 70

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Click Enter button to confirm. Accept this information by pressing Enter button.

The aggregation factor specifies how the material consumption quantities of the

planning object are weighted in the planning level's consumption series. When running

forecast, the system determines the consumption series of the planning level from the

individual consumptions of its members. The system will complete the data of the

materials with a description and material type.

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Question 1: What is Proportional factor? What is the sum total of the proportional

factors? Consider a product family having four products, what will be the proportional

factor (in percentage) given equal weights to each product?

Click on the Product grp. graphic button.

A graphic view of the product group is displayed. Navigation helps to focus on certain

section of the graphical view.

Can you imagine the graphical view for a product group with 4 product types (e.g

FG-10, FG-11, FG-12 and FG-13)?

Click on Quit button.

Click on Save button to save your product group. When you click on the save icon,

you will get a confirmation message .

Click on Back until you reach the SAP Menu.

Using the same transaction code (MC84), repeat step 1.2.1 to create the product

group in the plant XXX4 in Germany. Use the same values.

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When are you done click Back to reach the SAP menu.

1.3 Create SOP Plan for product group

You will input historical sales data for the two products that make up this group to

generate a forecast.

1.3.1 Create SOP Plan in ECC system


Menu path: SAP Menu – Logistics – Production – SOP – Planning - For Product

Group - Create


Enter this information:

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2. Plant: XXX1

3. And click Enter .

On the popup Define Version, ignore proposed values and enter the following

information:

1. Version: XXX + 100

For example, if your ID is 100, version is 200.

2. Version description: Product XXX, Plant 1001

3. And then click Enter .

The Create Rough Cut Plan window will appear. To create a forecast in SOP, follow the

pull-down menu path: Edit - Create Sales Plan - Forecast.

The SAP system will create a forecast for 13 months starting this month (current).

If available, the system will use 5 years (60 months) of historical data.

Check the Seasonal trend models radio button.

The default forecast profile for SOP (SAP Profile) determines the default forecast.

Click on Historical button to create the historical data.

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In the pop-up window, choose Season trend models in the Forecast execution section

and click on the Historical button.

Question 2: What is seasonal trend model? How does it differ from Seasonal models and

trend models? Explore other models in the forecast execution section.

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Accept this message by clicking Enter if it appears.

Enter in the fields Corr.value the following 12 values. Scroll down to enter all values.

The first value of historical data is for last month. T refers to current month.

T-1 338 T-9 280

T-2 419 T-10 364

T-3 524 T-11 427

T-4 422 T-12 328

T-5 308

T-6 403

T-7 490

T-8 357

Click on the interactive Graphics icon to display graphs of historical sales data. Two

graphs are displayed:

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To look at historical data chose the graphic Historical overview.

In the Interactive graphics window, click Historical (corr.) tab.

Click on Quit button to return the screen Forecast Historical Values.

Click on the Forecasting button to display the forecast.

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Forecasting procedure will test for Trend and Seasonal components. Change the

value for Periods, from 12 to 4. Click on the Forecasting button.

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The forecasting results are displayed. Click on the interactive Graphics .

This window shows the forecast values in tabular format. The SAP static graph provides

a good comparison of the forecast to the historical data. Click on the Legend button to

view the legend. Click on Cancel button to close the graphics.

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You are back to the Forecast Results screen. Click Enter .

Click Save to save your SOP plan for XXX1.

You will receive a confirmation message.

Record plan of plant XXX1 version number .........................................

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Repeat step 1.3.1 to create a forecast for the Product Group XXX in the

Germany plant XXX4. Use the same forecasting settings.

Note: for the pop up, Define Version when creating a forecast for the Product

Group XXX in the Germany plant XXX4, enter the following information:

1. Version: XXX + 200

For example, if your ID is 100, version is 300.

2. Version description: Product XXX, Plant 1004

Record plan of plant XXX4 version number .........................................

The historical values for the Product Group XXX in the Germany plant XXX4 are:

T-1 136 T-9 110

T-2 116 T-10 110

T-3 120 T-11 114

T-4 134 T-12 128

T-5 140

T-6 106

T-7 100

T-8 120

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You should have forecast values in the Rough Cut Plan table.

When you are done, click Back to return the main SAP menu.

1.4 Transfer Plan to Demand Management

The Sales plan created in SOP has to be transferred to Demand Management to create

the Planned Independent Requirements.

1.4.1 Check PIRs values in SCM system

Before transferring Sales Plan to Demand Management, we will check data (PIR) in SCM

system. First, you have to login SCMPRD system . Once you log in, follow the

transaction:

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Menu path: SAP Menu - Advanced Planning and Optimization - Production

Planning - Interactive Production Planning - Product view

Transaction code: /N/SAPAPO/RRP3

Enter the following information:

1. Planning version: 000 (Active Model)

2. Product: FG-0010-XXX

3. Location: XXX1


There are no PIRs for product FG-0010-XXX are displayed because the SOP Plan for

FG-0010-XXX has not been transferred to SCM system from Demand Management.

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To switch the product, enter FG-0011-XXX in the product field and XXX1 in the

location field then click on the Refresh button.

There are no PIRs for product FG-0010-XXX at plant XXX1 as well.

Similarly, you can also check PIR values for product FG-0010-XXX and FG-0011-XXX

at plant XXX4.

1.4.2 Transfer Plan

Now we will transfer Sales Plan to Demand Management to create the Planned

Independent Requirements.


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Menu path: SAP Menu – Logistics – Production – SOP – Planning - For Product

Group - Transfer Product Group to Planning




2. Plant: XXX1

3. Version: <your version number recorded above for plant XXX1>

4. Select the radio button Sales plan for material or PG members as

proportion of PG.

5. And click button Transfer now.

6. Click Enter (maybe twice) to confirm if you receive the following messages

or

In the same transaction MC75, you will transfer the SOP plan to Demand

Management for plant Germany plant XXX4 using this following information:

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2. Plant: XXX4

3. Version: <your version number recorded above for plant XXX4>

4. Select the radio button Sales plan for material or PG members as

proportion of PG.

5. And click on Transfer now.

6. Click Enter (maybe twice) to confirm if you receive the following messages

or

1.4.3 Verify the transfer results in Demand Management


Menu path: SAP Menu – Logistics – Production - Production Planning - Demand

Management - Planned Independent Requirement - Change

Transaction code: MD62


1. Select the radio button Product group

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2. Product Group: Product Group XXX

3. Plant: XXX1

4. Select the radio button All active/inactive versions


The planned requirements are shown in the table below. On the first period the values

for FG-0010-XXX is 131 ST and for FG-0011-XXX is 305 EA. The product group

forecasting for the first period (e.g. 436) was disaggregated in function of the defined

proportion factors (30% for FG-0010-XXX and 70% for FG-0011-XXX). That is 30%

of 436 = 130.8, rounded of to 131; 70% of 436 = 305. You can check other

disaggregated values accordingly.

Click on the Items tab.

Question 3: What is the value ‘AA’ in the column V? and why is the box ticked against

each one?

The total quantity for FG-0010-XXX is 2195 ST and for FG-0011-XXX the quantity is

5120 EA over the planning period. Click on the blank square next to FG-0010-XXX

to select the first line and click on the Sched.lines tab.

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The planned quantity and value per month for the material selected are displayed. Click

Back to the initial screen.

Question 4: Can you find out the total requirements value of FG-0010-XXX?

Repeat the step 1.4.2 to display Planned Independent Requirements for Germany

plant XXX4 by using this following information:

1. Select the radio button Product group

2. Product Group - Product Group XXX

3. Plant - XXX4

4. Select the radio button All active/inactive versions

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The planned requirements are shown in the table below. After disaggregation, for the

first period the value for FG-0010-XXX is 40 ST and for FG-0011-XXX the value is 95

EA. Check the others tab (Items and Schd.lines). When you are done click on the

Back button to return to SAP Menu.

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1.4.4 Verify data transfer (PIR) in SCM system

You need to login SCMPRD system to perform this task.

An integration model has been activated to help you to transfer the Planned

Independent Requirements (PIR) that was previously defined in ECC system to SCM

system. Now you need to confirm PIR data in SCM system.

Menu path: SAP Menu - Advanced Planning and Optimization - Production

Planning - Interactive Production Planning - Product view

Transaction code: /N/SAPAPO/RRP3

Enter the following information:

5. Planning version: 000 (Active Model)

6. Product: FG-0010-XXX

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7. Location: XXX1


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The PIRs for product FG-0010-XXX are displayed.

Do you see the quantities under column Rec/ReqQty (i.e. 131, 175, 142 and so on)

having any relation with the quantities you had in section 1.4.2: Check the transfer

results in Demand Management. Why do the make-to-stock production quantities have

–ve signs?

Review the PIR values for product FG-0011-XXX for plant XXX1.

To switch the product, enter FG-0011-XXX in the product field and then click on the

Refresh button.

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The system displays the forecasting values for the second finished product FG-0011-

XXX for plant XXX1.

Where did you see before these values under the column Rec/ReqQty (i.e. 305,

408, 332 and so on)?

In order to review the PIR data for product FG-0010-XXX and FG-0011-XXX in plant

XXX4, enter either FG-0010-XXX or FG-0011-XXX in the product field and XXX4 in

the location field and press Refresh button.

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Match the product FG-0010-XXX make-to-stock quantities in column Rec/ReqQty with

the previously obtained PIR values in section 1.4.2.

Match the product FG-0011-XXX make-to-stock quantities in column Rec/ReqQty with

the previously obtained PIR values in section 1.4.2.

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Question 5: This is optional exercise. Try to check Make-to-Stock Production of the semi-

finished product SF-0010-XXX and the raw material RM-0010-XXX in plants XXX1 and

XXX4. Do they have any planned independent requirements?

When you are done, click Back to the main SAP menu.

End of Tutorial 1

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Appendix

Useful SAP transaction codes(SAP Transaction code is a short cut key attached to a screen. Instead of using SAP easy

access menu we can also navigate to a particular screen in SAP by entering the transaction code

(T-code for short) in the command field of the standard toolbar.)

TCODE Purpose

MC84 Create Product Group

MC85 Display Product Group

MC86 Change Product Group

MC81 Create SOP Plan

MC75 Transfer Planning Data to Demand Management

MD62 Verify the transfer results in Demand Management

/N/SAPAPO/RRP3 Verify data transfer (PIR) in SCM system

gbc apo 3 digit tut1

Documents

sap scm

sap ecc

supply chain planning

sap supply chain management

sapscm release

saperp release

glossary sap erp

finished products sap