Preface

21

Target Audience

21

How to Read This Book

22

How This Book Is Organized

22

Conclusion

26

Acknowledgments

26

1 Introduction to Sales and Operations Planning

29

1.1 Market Drivers

29

1.1.1 Globalization

29

1.1.2 Market Volatility

32

1.2 Process Drivers

34

1.2.1 S&OP Process Definition

34

1.2.2 Planning Horizons

35

1.2.3 S&OP Process Decomposition

36

1.3 Technology Drivers

39

1.3.1 Interactive Planning with In-Memory Computing

40

1.3.2 Data Visualization

42

1.3.3 Collaboration

43

1.4 SAP Integrated Business Planning

45

1.4.1 An Integrated Approach

45

1.4.2 Better Algorithms

53

1.4.3 New User Experience

55

1.4.4 More Agility

61

1.4.5 SAP Integrated Business Planning Modules

62

1.5 Summary

65

2 SAP IBP Model and Navigation

67

2.1 SAP Integrated Business Planning Architecture

67

2.2 Planning Model

68

2.2.1 Attributes

69

2.2.2 Master Data Types

70

2.2.3 Time Profiles

71

2.2.4 Planning Areas

72

2.2.5 Planning Levels

73

2.2.6 Key Figures

73

2.2.7 Versions and User-Defined Scenarios

74

2.3 Navigating the Planning Model

75

2.3.1 Excel User Interface

76

2.3.2 Web-Based SAP Fiori Applications

82

2.3.3 SAP Jam Collaboration

86

2.4 Summary

92

3 Demand Planning

93

3.1 Demand Planning at a Glance

93

3.1.1 Demand Forecasting Approach

96

3.1.2 Demand Planning Strategy

98

3.1.3 Demand Planning Process

99

3.2 Forecasting Input with Historical Data

102

3.3 Forecast Generation through Statistical Modeling

104

3.3.1 Statistical Models

104

3.3.2 Configuring and Executing Forecasting Models

109

3.4 Collaborative Financial Modeling of Demand Forecast

116

3.4.1 Income Statement Financial Model in SAP IBP

116

3.4.2 Financial Ratios and Analytics in SAP IBP

118

3.5 Review, Collaboration, and Finalization of the Demand Plan

120

3.6 Summary

122

4 Unconstrained Supply Planning

123

4.1 Unconstrained Planning at a Glance

123

4.2 The Sales and Operations Planning Heuristic

126

4.3 Supply Network Design

127

4.3.1 Products, Location, and Customers

127

4.3.2 Sourcing Rules

129

4.3.3 Supply Network Accuracy and Check Mode

133

4.3.4 Subnetworks

133

4.4 Propagating Demand

134

4.4.1 Sample Supply Network

135

4.4.2 Consensus Demand

136

4.4.3 Customer Sourcing

136

4.4.4 Net Demand Calculation

138

4.4.5 Location Sourcing

141

4.4.6 Production Sourcing

143

4.4.7 Lot Sizes

145

4.5 Propagating Supply

149

4.5.1 External Receipts

149

4.5.2 Production Component

151

4.5.3 Production Receipts

152

4.5.4 Transport Receipts

152

4.5.5 Constrained Demand

153

4.5.6 Minimum and Adjusted Key Figures

153

4.6 Rough-Cut Capacity Planning

156

4.6.1 Production Resources

157

4.6.2 Handling and Storage Resources

157

4.6.3 Capacity Key Figures

158

4.7 Parameters of the Heuristic

160

4.7.1 Processing Mode

161

4.7.2 Heuristic Type

162

4.7.3 Planning Level of the Heuristic

163

4.7.4 Quota Check Parameters

164

4.7.5 Carry Forward Negative Projected Inventory

166

4.7.6 Balanced Receipts

168

4.7.7 Initialize Lead Time Horizon

170

4.7.8 Compute Expected Supply

171

4.7.9 Use of Validity Dates

171

4.8 Summary

172

5 Constrained Supply Planning

173

5.1 Constrained Supply Planning at a Glance

173

5.2 S&OP Optimizer

174

5.3 Optimization Constraints

177

5.3.1 Hard Constraints

177

5.3.2 Pseudo-Hard Constraints

178

5.3.3 Soft Constraints

178

5.4 Financial Modeling of the Supply Chain

179

5.4.1 Financial or Cost Key Figures

179

5.4.2 Optimizer Parameters

183

5.5 Advanced Optimizer Features

189

5.5.1 Late-Demand Fulfillment

189

5.5.2 Minimum Resource Consumption

191

5.5.3 Fair-Share Distribution

192

5.5.4 Aggregate Constraints

193

5.5.5 Multiple Demand Category

194

5.5.6 Product Substitution

195

5.5.7 Subnetworks

196

5.5.8 Optimizer Explanation

197

5.6 Summary

199

6 Consolidation

201

6.1 Consolidation at a Glance

201

6.1.1 Integrated Reconciliation Review

202

6.1.2 Executive Review

202

6.1.3 Operationalize the Approved Constrained Plan

204

6.2 Financial Projections and Review

205

6.2.1 Financial Projections of the Plan

205

6.2.2 Integrated Reconciliation Review

210

6.2.3 Management Business Review

213

6.3 Operationalizing the Plan

217

6.3.1 Plan Integration Overview

218

6.3.2 Integration between SAP IBP for Sales and Operations and SAP IBP for Demand

221

6.3.3 Integration between SAP IBP for Sales and Operations and SAP IBP for Inventory

222

6.3.4 Integration between Tactical Time Series-Based and Order-Based Plans

224

6.4 Summary

224

7 Collaboration and Management by Exception

227

7.1 SAP Jam Collaboration

227

7.1.1 Navigation

229

7.1.2 SAP IBP Integration

232

7.1.3 Excel Planning View Integration

236

7.2 Custom Alerts

238

7.2.1 SAP Fiori Applications

239

7.2.2 Using Custom Alerts

243

7.2.3 Configuring Custom Alerts

246

7.3 Case Management

251

7.4 Tasks

254

7.5 Summary

257

8 Planning Simulations

259

8.1 Simulation Planning at a Glance

259

8.1.1 Demand Factors

260

8.1.2 Supply Feasibility Factors

262

8.1.3 Simulation Examples

262

8.2 Simulations

264

8.3 Versions

268

8.3.1 Manage Versions

269

8.3.2 Version Comparison

270

8.3.3 Version Configuration

271

8.4 Scenarios

273

8.4.1 Scenario Creation

273

8.4.2 Scenario Comparison

274

8.4.3 Manage Scenario

275

8.4.4 Version and Scenario Comparison

277

8.5 Summary

277

9 Process Management

279

9.1 Process Management in Practice

280

9.2 Setting Up Process Templates and Automations

284

9.2.1 Process Roles

285

9.2.2 Time Zone, Workday, and Duration Settings for Process Steps

286

9.2.3 Tasks Assignment

287

9.2.4 Process Steps Automation

288

9.2.5 Process Orchestration of Application Jobs

290

9.2.6 Gantt Chart View of Sequential and Parallel Processes

291

9.3 Manage Processes

292

9.3.1 What Is a Process?

292

9.3.2 Creating a Process

293

9.3.3 Managing Process Lifecycle

295

9.3.4 Monitoring Process Status

297

9.3.5 Process Dashboards

299

9.4 Task Management

301

9.4.1 Tasks Assignments and Completions

301

9.4.2 Tasks Completion from SAP Integrated Business Planning, Add-In for Microsoft Excel

303

9.4.3 Process Progress Based on Tasks Completion

304

9.5 Process Management with SAP Jam

305

9.6 Summary

306

10 Configuring SAP IBP for Sales and Operations

309

10.1 Planning Areas and Time Profiles

310

10.1.1 Planning Areas

311

10.1.2 Time Profile

315

10.2 Attributes and Master Data Types

319

10.2.1 Attributes

319

10.2.2 Master Data Types

321

10.3 Planning Levels

330

10.4 Key Figures

333

10.4.1 What Are Key Figures?

333

10.4.2 Creating Key Figures

335

10.4.3 Key Figure Types

336

10.4.4 Key Figure Aggregations

340

10.4.5 Disaggregation

340

10.4.6 Key Figure Calculations

342

10.5 Planning Operators

344

10.5.1 Creating a Planning Operator

346

10.5.2 Data Lifecycle Management

347

10.6 History Report

349

10.7 Advanced Configuration

352

10.8 System Performance Recommendations

355

10.9 Summary

357

11 Building Planning Views

359

11.1 Planning Views, Templates, and Favorites

359

11.1.1 Planning View Creation

360

11.1.2 Templates and Favorites

370

11.2 Formatting Planning Views

372

11.2.1 Basic Layout Tips

373

11.2.2 Sheet Options and Local Members

375

11.2.3 EPM Formatting Sheet

378

11.3 Using Charts

380

11.4 Master Data Worksheets

383

11.4.1 Master Data Workbooks

384

11.4.2 Planning Object Creation

385

11.5 Using Microsoft Visual Basic for Applications

388

11.5.1 VBA for Formulas in Local Members

388

11.5.2 VBA Hooks

389

11.6 Summary

389

12 Key Performance Indicators and Performance Monitoring

391

12.1 Key Performance Indicators in SAP IBP

392

12.1.1 Demand Review KPIs

394

12.1.2 Supply Review KPIs

397

12.1.3 Operating Review KPIs

401

12.1.4 Executive Review KPIs

403

12.2 Monitoring and Continuous Improvement

404

12.2.1 Balanced Scorecard

405

12.2.2 Root-Cause Analysis

406

12.2.3 Define, Measure, Analyze, Improve, and Control

407

12.3 Summary

409

13 Dashboard and Analytics

411

13.1 Advanced Analytics

412

13.1.1 Types of Analytics and Charts

413

13.1.2 Creating Advanced Analytics Charts

417

13.1.3 Managing Advanced Analytics Charts

423

13.2 Advanced Dashboards

428

13.2.1 Creating Advanced Dashboards

428

13.2.2 Using Advanced Dashboards

430

13.2.3 Managing Advanced Dashboards

435

13.3 Summary

436

14 Integrating SAP IBP for Sales and Operations

437

14.1 Data Integration Scenarios

437

14.2 Integration for Tactical Planning

439

14.2.1 SAP Cloud Platform Integration for Data Services

440

14.2.2 Manual Data Integration Using Web Interface

447

14.2.3 Export of Key Figure Data Using OData Services

453

14.3 Integration for Operational Planning

454

14.4 Other Integrations

456

14.4.1 Financial Integration with SAP BPC

457

14.4.2 Opportunities Integration with SAP Hybris Cloud for Customer

457

14.5 Summary

458

15 Roles and Security

459

15.1 Security Management

459

15.2 User Management

462

15.2.1 Creating Users

462

15.2.2 User Groups

466

15.3 Business Roles Management

467

15.4 Permission Filters

470

15.4.1 Read Criteria

470

15.4.2 Write Criteria

472

15.4.3 Permission Filters in Process Stage

474

15.5 Infrastructure Management

474

15.6 Summary

476

16 SAP IBP Case Studies

477

16.1 High-Tech OEM

477

16.1.1 Market Drivers

478

16.1.2 Process Scope

479

16.1.3 Capabilities

482

16.1.4 Benefits

483

16.2 Life Sciences and Health Care

484

16.2.1 Market Drivers

484

16.2.2 Process Scope

485

16.2.3 Capabilities

487

16.2.4 Benefits

488

16.3 Summary

488