S/4HANA Manufacturing—

1610 New Functions and

Innovations (S4MA1) and
(EKT_S4HANA1610MANU)

S/4HANA
Enterprise Management 1610
13th January 2017
http://ibm.biz/S4H_Learn1610
IBM Proprietary | © 2017 IBM Corporation 1
Your presenters

Devraj Bardhan
Senior Enterprise Architect SAP S/4HANA
Global Business Services
devraj.bardhan@de.ibm.com
@devbard (Twitter)

Pradeep Santara
SAP SCM PP Consultant
Global Business Services
psantara@in.ibm.com

Kaushik Saha
Consultant - PP, PP-PI, QM (ECC
and S/4 HANA 1610)
Global Business Services
kausaha3@in.ibm.com

IBM
IBM Proprietary
Proprietary || ©
© 2017
2017 IBM
IBM Corporation
Corporation 2
S/4HANA Manufacturing—New Functions and Innovations: Agenda

 Overview

 SAP S/4HANA Manufacturing – Simplifications

 S/4 HANA MRP Live

 Advanced Planning – SAP S/4 HANA PP/DS

 User Experience

 References

IBM Proprietary | © 2017 IBM Corporation 3

Manufacturing: Business Challenge
Complex requirements lead to complex infrastructures

Reporting
Financial Control

CIF

OData
Quality Issues Production Shop Floor

Live cache

CIF
Available to Promise Warehousing
PPDS
Demand Planning
BAPI

Supply Network Planning

External Processing
Subcontractors

IBM Proprietary | © 2017 IBM Corporation 4

SAP S/4HANA Manufacturing
SAP S/4HANA Enterprise Management Scope for 1610 Shipment
E2E Business Process:
Production Orchestration
Quality Management
and Execution

Solution Capabilities:
Production Basic Production Basic Sub- Basic External Repetitive Kanban & Jit Quality Quality
Processing Quality Inspection
Control Execution contracting Processing Manufacturing Engineering Improvement

Real-time alerts Benefit from single Manage the Integrate external Benefit from a Run your Integrated and Perform quality Increase your
based on material master subcontracting workforce into simplified production in many simplified solution inspections quality results to
production maintenance for process from Production processing in different flavors to combining QM providing inspection new levels with
bottlenecks, such ERP and SCM planning to Execution, manage repetitive support Kanban and QIM results to enable better planning,
as time or relevant materials execution and time, and material scenarios with and Just-in-time capabilities timely informed defection recording
component delays Synchronous monitoring and handovers mass processing sequencing for with new UX for release decisions and a flexible and
and resource commit, consistent integration with and streamlined Inbound and q-technicians, q- and therefore harmonized action
bottlenecks data your Business financial controls in Outbound engineers, q- support ensuring management, all
Immediate error Network periodic actions planners, q- product compliance supporting
handling managers, q- and quality standardized
auditors, and requirements complaint
calibration process
Innovation and Highlights: technicians

Monitor Production Orders in an intuitive Cockpit Analyze and manage scrap during production Track Quality inspections intuitively

IBM Proprietary | © 2017 IBM Corporation 5

SAP S/4HANA Production Planning Key Innovations
Simplifications in Material Master
Decommissioned MRP fields in Material Master

1. Lot Size data in MRP1 4. Repetitive manufacturing /assembly /deployment strategy tab of MRP4
 Unit of Measure Group  Action console
 Fair share rule
 Push distribution
 Deployment horizon

2. Procurement in MRP2
 Quota arr. Usage (MARC-USEQU)

5. Storage Location in transaction – MRP4

 SLoc MRP indicator
 spec.proc.type SLoc
 Reorder Point
 Replenishment quantity
3. BOM explosion/ dependent requirement tab in MRP4 
 Selection Method (MARC-ALTSL)

6. Additional field value “2 Locked for automatic sourcing” is introduced in Production

Version for field “Lock” (MKAL-MKSP). This is primarily for Purchasing Info Record

IBM Proprietary | © 2017 IBM Corporation 6

SAP S/4HANA Production Planning Key Innovations
Simplified Material Master and Master Data for New Functionality PP/DS in S/4 HANA

1) New material master 2) New “Advanced Planning”

view “Advanced indicator added in the Advanced 3) “Advanced Planning” indicator added in the
Planning” added. Planning view of Material Master. basic data tab page of work center.

IBM Proprietary | © 2017 IBM Corporation 7

SAP S/4HANA Manufacturing Key Innovations

Simplifications in Data Model in Production Planning

 The new planning file does not have columns for low
level code and record type. This information does not
have to be copied from the material master into the
planning file while updating the planning file. The MRP
planning run reads the low level code of all materials
that require planning from the material master.

 Tables for Planning file entries in classic Business Suite

namely, MDVM/MDVL and DBVM/DBVL are replaced by
PPH_DBVM in SAP S/4HANA 1511.

Simplifications in Data Model for PP/DS in S/4 HANA 1610

 Single Material Master / Resource data maintenance for SAP ERP and SAP PP/DS relevant resources
 No Integration model maintenance for both PP/DS relevant materials and resources
 No inconsistent data
 Immediate error handling
 Simplified Integration:
 Synchronous update of BOM and PDS w/o queue
 Immediate change transfer of PDS.

IBM Proprietary | © 2017 IBM Corporation 8

SAP S/4HANA Manufacturing (key topics)
MRP Live (SAP APO and SAP ERP Materials)

Simplifications in MRP Process

New MRP Transaction MD01N (MRP Live) which
runs on HANA and is equivalent to ECC
Transactions MD01, MD02, MD03, MDBT

IBM Proprietary | © 2017 IBM Corporation 9


S/4HANA Production Planning and Scheduling
Extended LoB scope for 1610 Shipment
Finite capacity planning—PP/DS in S/4HANA:
Increased production throughput and reduced
production costs leveraging finite capacity planning
embedded in S/4HANA. One MRP plans
everything: create finite production plan according
to the available capacity situation and schedule
available resources and generate production plan to
the precision of seconds.
 Access SAP Fiori App for Production
Scheduling Board as web based graphical
scheduling tool
 Customize the web-based graphical scheduling
tool for production planning and detailed
scheduling according to various industry needs
Monitor Capacity Utilization:
Capacity utilization of resources can be monitored
using this app. Production Planners can add the
area of responsibility to plants in which they want
to monitor the capacity.
 Optimize and plan the resource schedule and
the order dates and times in detail by taking the
resource and component availability into
account
 Plan critical products, such as products with
long replenishment lead times or products that
are produced with bottleneck resources
 Evaluation profile and horizon based on the
customization with Utilization Chart based on
daily buckets
IBM Proprietary | © 2017 IBM Corporation
Constrained Production
Planning & Production
Scheduling*
Create Optimal Orders for Suppliers:
Optimize the results of your Material
Requirements Planning (MRP) by creating
collective orders for material shortages.
 Use S/4HANA to optimize PO’s for your
schedule in seconds!
 Considers capacities on supplier side to
harmonize own requirements against supplier
constraints
 Identify the best vendor and optimize a
collective PO against your schedules and
supplier capacities
10
 CONSTRAINED
Production planning and detailed scheduling (PPDS) PRODUCTION PLANNING &
PRODUCTION SCHEDULING*
Example for landscape simplification, capability change

UI Harmonization, CIF Simplification, Master Data Harmonization, and Analytics

Traditional system Simplification with SAP S/4HANA

Master Data
Common
SAP Advanced Planning and Planning
Optimization – planning and Live cache SAP S/4HANA and
detailed scheduling detailed
scheduling
CIF
CIF

SAP HANA platform, including live cache

ERP Database
 PPDS functionality gets co-deployed on the same system utilizing
one HANA database instance
 Integration and synchronization efforts for material master and work
center resource is not required
 Constraint based planning, using various heuristics and optimizers
Load, Replicate, Sync & Update of by bringing PP/DS on SAP S/4HANA,
Master, Planning & Transactional Data  Reducing integration efforts and allowing seamless master data & UI
harmonization

IBM Proprietary | © 2017 IBM Corporation 11

SAP S/4HANA Manufacturing Planning and Scheduling
Comprehensive Plan to Produce in ONE System

Interactive
Demand MRP Run+ Release to Production Monitor and
Planning
Entry Unconstrained Planning Production Execution Control
Constrained

Production Planner Production Supervisor Production Worker Production Planner

Features Benefits
Finite – Capacity Planning Faster SAP liveCashe
Create finite production plan according to the available capacity
situation & schedule available resources Faster SAP liveCashe integrated as a part of SAP HANA

Monitor Production and Capacity plan Faster MRP

Monitor production and capacity plan together to react to planning Faster integrated HANA & SAP liveCache-based material requirements planning
and capacity exceptions

Material Requirements Planning

Calculate net requirements & generate production plan to the
precision of seconds for the complete product flow

Key Benefits  Comprehensive Plan to produce in a single system at a low cost  Simple and seamless integration
 Just one system to manage, less time to manage, back-up and administration  Easy monitoring and administration
 Integrated Materials requirement planning.

IBM Proprietary | © 2017 IBM Corporation 12

SAP S/4HANA Manufacturing: Fiori Apps* * Exemplary overview. For full and most
current list see Fiori Apps Library
Comprehensive Plan to Produce in ONE System

Production Orchestration & Constrained Production

Quality Management Planning & Production
Execution
Scheduling*
Production QM

1. Analytical 1. Factsheet PPDS

 Analyze PIR Quality NEW  Inspection Lot NEW
 Excess Component Consumption NEW  Inspection Method NEW 1. Transactional
 Material Scrap NEW  Inspection Operation NEW  Create Optimal Orders for Shipment NEW
 Operation Scrap NEW  Monitor Capacity Utilization NEW
 Scrap Reasons NEW 2. Transactional / WD  Production Scheduling Board NEW
 Master Inspection Characteristic NEW
2. Factsheet  Quality Info Record for Procurement NEW
 Planned Order Object Page NEW  Record Inspection Results NEW
 Process Order Confirmation Object Page NEW  Sample NEW
 Process Order Object Page NEW  Sampling Procedure NEW
 Production Order Confirmation Object Page NEW
 Production Order Object Page NEW
 Resource Object Page NEW
 Work Center Object Page NEW

3. Transactional
 Manage Production Orders or Process Orders UPDATE
 Monitor Production Orders or Process Orders UPDATE
 Schedule Order Conversion Runs
 Schedule Order Release Run UPDATE

IBM Proprietary | © 2017 IBM Corporation 13

SAP S/4HANA Manufacturing in Digital Core
SAP Materials Requirements Planning: MRP Cockpit

Value Proposition:
SAP MRP Analysis–comprehensive analytic and decision support

Capability:
 Show disruptions in the material flow with filters by segment and material
 Comprehensive impact analysis and solution proposals
 Role-based KPI driven entry
 Available on any device, easy to personalize
 Proposals for shortage resolution in Manage Material Coverage App

IBM Proprietary | © 2017 IBM Corporation 14

SAP S/4HANA Manufacturing in Digital Core
SAP Materials Requirements Planning: Truckload-optimized Purchase Orders

Value Proposition:
Reduced transportation costs: Availability is balanced and
means of transport is fully utilized

Capability:
 SAP Fiori application for material planner to identify all
materials to be ordered today or in the near future
 All materials from one vendor are ordered together

IBM Proprietary | © 2017 IBM Corporation 15

SAP S/4HANA Manufacturing Planning and Scheduling
Product Roadmap Overview: Key themes and capabilities

Today Planned Innovations Future Direction

Manufacturing Planning and Scheduling: Manufacturing Planning and Scheduling: Manufacturing Planning and Scheduling:
Side-by-side PPDS with SAP APO PP/DS embedded and integral part of SAP S/4  Enhancements to user interface
HANA (no extra server required)  PP/DS with extended capabilities
 One material requirements planning  SAP MRP Live and Cockpit Enhancement
 Simplified data integration
 Intuitive maintenance of master data and
One
integration models
MRP

Value Proposition:
 Increased production throughput leveraging finite capacity
planning embedded in SAP S/4HANA DS Board
 Reduced system landscape complexity
 Reduced order cycle time
 Reduced planning effort
 Minimized shortage situations
 Reduced production costs

Capability:
 Create finite production plan according to the available
capacity situation
 Schedule available resources and generate operational
production plan
 SAP Fiori-based Gantt chart to for interactive scheduling

IBM Proprietary | © 2017 IBM Corporation 16

SAP S/4HANA Manufacturing Planning and Scheduling
Manufacturing Processes

Today Planned Innovations

Core Manufacturing Processes: SAP Fiori apps for Production Supervisor:
 Production Order  Production confirmation document
 Process Order  Analytical apps for plan versus actual comparisons and
 Confirmations as enabler for process improvements, scrap, excess
component consumption, processing duration

Enhancements for Production Supervisor role

Value Proposition:
 Real time information about the current situation in the
production supervisor’s area of responsibility
 Early detection of deviations from the plan enabling him to
take immediate action

Capability:
 Monitor production orders and production operations in the
area of responsibility
 Select, sort, filter and save tailored variants for the SAP
Fiori launch pad, evaluating the production situation in real
time
 Drill down to details and adjust when needed
 Access related apps and transactions, for example in PP,
SAP MRP, and quality management

IBM Proprietary | © 2017 IBM Corporation 17

SAP S/4HANA Manufacturing Planning & Scheduling
Quality Management

Today Planned Innovations

Quality Management: Quality Management:
 Quality engineering  Improved usability for five quality management roles: Quality manager, quality engineer,
 Quality inspection quality planner, quality auditor, calibration technician
 Quality improvement  SAP Fiori app for Quality Planner with search options for example: master inspection
characteristic, and inspection methods
 SAP Fiori app for Quality Technician with search options for inspection lot, inspection
characteristic, inspection operation
 SAP Fiori app Recording Results with different work lists (inspections lots, inspection
operations, samples) to record results for quantitative or qualitative characteristics

Value Proposition:
 Enhanced efficiency in quality inspection
execution (results recording)

Capability:
 Different work lists (inspections lots,
inspection operations, samples)
 Quantitative or qualitative characteristics.
 Relevant objects
 Inspection lot
 Inspection operation
 Inspection characteristic

IBM Proprietary | © 2017 IBM Corporation 18

Backup

S/4HANA
Enterprise Management 1610

IBM
IBM Proprietary
Proprietary || ©
© 2017
2017 IBM
IBM Corporation
Corporation 19
Learning Hub Courses on Sales

Read the Learning Hub blogs http://ibm.biz/LH_S4H_LOG on how to

Search, Find and Complete Learning Hub Courses For S/4HANA
Procurement – Search for “1610 Manufacturing”
Or “1610” to list all Early Knowledge Transfer courses (EKT)

Course Name: SAP S/4HANA 1610: Learning Map for

Manufacturing
Technical Name: EKT_S4HANA1610MANU

S/4HANA 1511 course is S4MA1 (4 hours e-book or flip book)

IBM Proprietary | © 2017 IBM Corporation 20

SAP S/4HANA 1610 EKT sandbox / early trial through Learning Hub

A sandbox / early trial landscape is available to provide an opportunity for a hands-on experience. The sandbox/early trial environment:
 Helps you to explore the innovations delivered with SAP S/4HANA 1610
 Acts as a playground to experience the 1610 release
 Comes preconfigured with a set of logistics, finance, and analytics scenarios
 Provides users with full authorizations to configure and create scenarios, as well as configure the Fiori Launchpad
 Registrations are due one week in advance (open up to 16:00 CET on the preceding Thursday) to be able to access the following week (as of Monday
morning). Details on how to access will be sent out through email after registration. The landscape will be refreshed on a weekly basis.
You need to request your ID every week if you want to continue using the sandbox early trial for longer than one week.

You need to register through the following link to be able to

access the sandbox / early trial:
https://performancemanager.successfactors.eu/sf/learning?destUrl=https%3a%
2f%2fsaplearninghub.plateau.com%2flearning%2fuser%2fdeeplink_redirect.jsp
%3flinkId%3dITEM_DETAILS%26componentID%3dEKT_S4HANA_LA%26co
mponentTypeID%3dLive_Access%26revisionDate%3d1479478320000%26fro
mSF%3dY&company=learninghub
Or Search for course name: EKT_S4HANA_LA
How to Guide;
https://access.sap.com/AccessPortal/ap_content/SAPEducation_TechnicalMan
ual_CustomerTraining.pdf

IBM Proprietary | © 2017 IBM Corporation 21

SAP S/4HANA 1610 Next Courses

Future Sessions Future Technical Sessions

S/4HANA Embedded Anayltics (pre-Read S4H400, S4H410)
S/4HANA Finance 1610 S/4HANA Fiori Deep Dive (Changes, customizations) incl
Pre-Read: Learning Hub Course S4F01 (4 hours e-learning)
HCP
S/4HANA Supply Chain & Logistic Execution (EWM, AATP)
S/4HANA P2P and Ariba

Playback and Presentations of previous sessions:

http://ibm.biz/S4H_Learn1610

* does not reflect licensing

IBM Proprietary | © 2017 IBM Corporation 22

Where to go for more information

S/4HANA Overview S/4HANA Business Scope Best Practice Scope S4HANA Product Scope Innovation Key Use Cases

Join the S4HANA Community on SCN Use Case Blog on SCN S/4HANA Cookbook SAP S/4HANA Road Map

IBM Proprietary | © 2017 IBM Corporation 23

Artefacts

S4 HANA Enterprise Management Community on http://ibm.biz/S4HANA_EM

Connections Cloud (updated on a regular basis with the latest
content from SAP & IBM)

#S4HANA 1610 Help http://help.sap.com/s4hana_op_1610

#S4HANA 1610 Release information on one page http://go.sap.com/product/enterprise-management/s4hana-

erp/on-premise.details.html

Learning Journey Blogs http://ibm.biz/LH_S4H_LOG

http://ibm.biz/LH_S4H_FIN

Best Practice Explorer https://rapid.sap.com/bp/

IBM Proprietary | © 2017 IBM Corporation 24

 Your first step toward SAP S/4HANA!

 Learn how SAP S/4HANA enables digital transformation

 Explore innovative financials and logistics functionality

 Understand the technical foundation underlying SAP S/4HANA advances

Purchase the book and e-book at: www.sap-press.com/4153

 15% discount for IBMers using the code SAPS4HANA15

 Available as e-book as well as hardbound

SAP S/4HANA: An Introduction

Written by: Axel Baumgartl, Dmitry Chaadaev, Nga-Sze Choi, Mark Dudgeon, Asidhara
Lahiri, Bert Meijerink, Andrew Worsley-Tonks, Devraj Bardhan
449 pages | 11/2016 | E-book: $59.99 | Print: $69.95 | Bundle: $79.99

IBM Proprietary | © 2017 IBM Corporation 25

IBM
IBM Proprietary
Proprietary || ©
© 2017
2016 IBM
IBM Corporation
Corporation 26