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Allocation
management & global
ATP for an advanced
memory manufacturer

Executive Summary
Sales Order Scheduling for an advanced memory manufacturer was performed using the
GATP components of allocation and rules-based availability check. Customer allocations
could be at a monthly or weekly level, which was determined by the MRP type. Allocation
check was performed at two levels i.e. Customer Entity and Customer Sales division.
Certain products such as Solid State Drive (SSD) would have customer allocation and also
the capacity allocation of the assembly line. After the allocation check was successful,
then the ATP was carried out using RBA. Customization was built-in during RBA check to
check the week-wise supply. Standard GATP check results would have multiple schedule
lines for the sales order ATP check. The customer wanted to suppress multiple schedule
lines. A lot of customization was built in ECC and APO to handle this business requirement.

The Customer
The advanced memory manufacturer technology designs and builds some of the world’s
most advanced memory and semiconductor technologies for products from computing,
networking, and server applications, to mobile, embedded, consumer, automotive, and
industrial designs.

The Business Objective

The customer was using legacy ATP application (Adexa) for order scheduling. Orders were
sent to these applications along the customer requirements in the form of attributes. They
needed an application that could perform availability check across the entire supply chain
by handling multiple products, in a rules based substitution.

CASE STUDY
 • ATP model should consist of product and customer allocation, capacity allocation as
well as rules based product substitutions.
• Standard GATP check confirmation results would have multiple schedule lines but the
need was to suppress multiple schedule lines and have only one schedule line per
confirmation.
• Order re-scheduling had to be performed with options for order selection and sorting
of line items.
• Delivery scheduling need not pass through GATP check but would need validation of
the customer requirements and the rules i.e. product substitutions.
• Establish following ATP metrics:
–– On-time delivery performance—confirm to the promised dates
–– Demand and supply match
–– Counter delivery failures due to attributes mismatch

HCL Solution
• SAP APO SNP (Supply Planning)
• SAP ECC (ERP)
• SAP APO DP (Demand Planning)
• Legacy system for in house WIP
• Serus third-party system for subcontractor location WIP
• Available to promise using SAP GATP

What HCL did for the customer

To address the need for an application that could perform availability check across the
entire supply chain by handling multiple products, in a rules-based substitution, HCL
offered and performed the following solutions:
• Perform availability check across the entire supply chain.
• Customer requirement attributes are modeled by handling multiple products. GATP
rules based substitution is enabled to handle this requirement.
• Products that are relevant for GATP check are identified by the MRP type. CIF handles
transfers of products, ATP, and sales orders that are relevant for GATP.
• GATP model consists of two checks that have to pass before a commit date for the
sales order.
–– The first check is to pass the allocation. Customer allocations could be maintained at
a monthly or weekly level. MRP type determines the allocation model, replenishment
lead time and also the receipts elements that are relevant for ATP check. Products
which have monthly and weekly allocation model, have the customer allocation
maintained at customer entity and customer sales division at a monthly and weekly
level. Demand planning macro copies the allocation values from the DP planning
book to the Product allocation group. At the end of the week, rollover macro is run
in demand planning to move the allocation in product allocations in the next work
week. HCL’s allocation accelerator is utilized for maintaining the allocations. Some
products have the customer allocations as well as the capacity allocations. Capacity
allocations are maintained at daily level to model the assembly line capacity.

CASE STUDY
 –– After the allocation check is successful, ATP check is performed using rules based
product substitutions. ATP check has stock, receipts and requirements. Product
with allocation modeling will have the receipts planned from CTM, WIP and in-transit.
Receipts will be ignored for products with weekly allocation models. A custom
application is built in ECC for maintaining rules. This application creates product
substitutions, rules and rule determination records in APO through a rule Job. Rule
identification (Rule-id) is passed to APO through the field catalogue user exit and this
is utilized for identifying the substitutions that are relevant for the customer.
–– Availability check is limited to check supplies by week through a customized solution.
Standard GATP check confirmation results will have multiple schedule lines. The
need is to suppress multiple schedule lines and have only one schedule line per
confirmation. Since there are multiple schedule lines, we create them as individual
line items per schedule line confirmation. This functionality is achieved by enabling
core-modification in ECC.
–– Order rescheduling is performed using GATP BOP component. Customization is built
for order selection and sorting of line items. Back-order processing is performed on
daily basis for confirmed line items. Weekly BOP takes care of sales order lines i.e.
items with and without confirmation.
–– Delivery scheduling does not pass through GATP check in APO. Instead a
customization application is built in ECC which validates the customer requirements
and the rules, i.e. product substitutions.

Judged
Demand Demand
Forecast Allocation
APO DP
Planning
Demand Supply Plan
Feedback
Capacity Allocated
Demand

Allocation
Management

ATP Consumed
Plan ATP

ATP Request MPS

P.O Entry
Purchase Global Available Manufacturing
Order
Order to Promise Output Planning Planning &
Management
(ATP) Confirmed Execution
Delivery Confirmed Date Shop Floor
Confirmation Date Plan

The Business Benefits Delivered

• Real-time confirmations–able to provide a date and quantity at the time of order booking
even if that is not the final/best date
• Back order processing–to update order confirmations as changes to supply and demand
occur, because companies run BOP on a daily basis. This resets (where needed) the
confirmation based on flexible sorting criteria.
• Management of order scheduling through allocation and order management
• GATP check having order commitments, and delivery date and material availability in
the sales order line item
• Original promise date, custom Material availability date and custom request are
captured after the ATP check
• Date and quantity confirmation of orders at the time of booking, especially if any order
is processed manually directly in ECC

CASE STUDY
 • Order back log having the orders with allocation confirmation and also the supply
confirmation
• For large orders, commit updates done via standard back-order processing and native
real-time updates of the sales order via the core interface
• Change in orders does not wipe out the previous confirmation but merely update the
CRD or requested quantity triggering a review process
• Integration with ECC for master and transaction data
• ATP metrics to measure:
–– On-time delivery performance—confirm to original promise dates
–– Demand and supply match
–– Countered delivery failures due to attributes mismatch

Contact: iSCM@hcl.com

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