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Success Story

SAP APO implementation for the replacement of a customized pre-planning solution

Implementation Highlights

  • Replacement of the customized pre-planning solution with a standard application
  • Introduction of a cross-system and cross-location planning solution
  • Pre-planning of a highly complex production process with SAP APO
  • Use of the Material Requirement Optimizer (MRO) tailored to customer requirements
30000
Individual parts per bus
7
Weeks of production time
6
Production sites
Medal Icon - CONSILIO GmbH
0
Error quality claim

Starting point

Our customer runs several SAP ECC systems in parallel, and the ERP legacy system is scheduled to be used for a long time to come. At the same time, SAP S/4HANA was introduced at one location. The existing, self-developed pre-planning solution in ECC was deemed unsustainable and is to be replaced by a standard solution. Since a cross-location planning solution is needed, the planning could not be carried out with the new S/4HANA. A dedicated system had to be added. SAP Integrated Business Planning (IBP) was one option, but it did not meet the customer's requirements due to the mandatory cloud use and lack of customisation options. Instead, the decision was made in 2015 to implement SAP APO.

Project goals

Due to the high level of customisation via Z-programmes and extensions, as well as the increasingly complex maintenance, the existing planning solution was to be replaced by a new one. The goal was a new system basis that would work largely within the SAP standard.

The existing planning solution was specifically tailored to automotive specifics and the company's requirements. One example of this is the determination of a scheduling sequence for buses even before they are created by the sales department as a customer order.

The new standard solution should not only meet the requirements of the previous version, but should also ensure easier handling, better maintainability and complete integration.

It was imperative to have a cross-plant production network programme plan in which the production stages can be at different locations.

Challenges and benefits

The highly integrative planning process was a major challenge, because it not only required coherent planning with SAP APO, but also that various interfaces to other processes function properly. APO brings a change in philosophy to programme planning, which must be integrated into all the processes involved. The production of buses – starting with the construction of the bodies, through to painting, assembly and interior finishing – requires individual adaptation to complex processes. During processing, locations and transport relationships of an extensive production network throughout Europe had to be taken into account. For example, a vehicle may have to be transported to another location for painting after the shell has been constructed, and then to yet another location for final assembly.

Thanks to the preliminary planning, it is now possible to give the customer the appropriate completion date for each bus type at the time of the customer order, and to determine the secured production dates, thanks to the preliminary planning that has already been carried out, taking into account restrictions in the various assembly areas.

The introduction of SAP APO meant a major advance for the company in terms of programme planning. This included everything from the APO modelling of the production network to the ‘calibration’ of the optimiser. We guided our customer step by step in understanding and mastering the complex system.

Michael Ackermann, Managing Consultant CONSILIO GmbH

The Material Requirement Optimizer run (MRO), an MRP run based on the bill of materials, work plan and various extensions, as well as the optimiser, makes it possible to coordinate the highly complex manufacturing process across different locations.

The previous in-house development in the ERP system has been replaced by a standard application that also enjoys broad support in the market. The new planning solution works across systems, affecting both the old ERP system and the newly integrated S/4 system. It also ensures that bus assembly stations can be determined across all locations worldwide.

In comparison to the old solution, all restrictions are now taken into account in the capacity allocation, which enables much more precise control. Overall, capacities can be maintained much better than before.

Using demand planning, sales figures can now be entered directly into the system and transferred from sales to planning. This eliminates a large part of the Excel reconciliation effort. Thanks to SAP APO, the key figures for programme discussions are also available in a uniform database.

Our client

  • Industry: Automotive
  • Business area: Full-line supplier in the European bus market, operating worldwide
  • Employees: > 8,000 in Europe
  • Subsidiaries: 15
  • 6 production sites
  • Solution: SAP APO
  • Consulting partner: CONSILIO GmbH