Characteristics Based Forecasting

[Former Member]

Dear Experts,

My knowledge on this subject is 0 / 0. Help.com sounds scary at the moment.

.

Question is

When I DO have the option of extracting data against any damn master data as characteristic (or attribute).e.g. for Product in ECC = Mini Van, the attributes could be Engine CC= 2000, 1600 Color = XXCDC, YYCDZ, Upholstery = Leather Brown, Fabric White using Appropriate data sources,

and carry out my forecasting and demand planning at any level. e.g I can plan demand for Product Mini Van, Color XXCDC with all engine sizes and all upholstery and even more granular.

Why do we need Characteristics Based Forecasting ? which as I understand is used for forecasting at "characteristic level". I don't really get that. Doesn't standard DP also forecast at "characteristic" level..

In other words what is the difference between Characteristics in first C of CVC and Characteristic in CBF ?

Appreciate layman answers :-).

Related questions follow if I manage to sink this in my tiny lil mind.

Regards

BS

[satish_waghmare3 · Accepted solution]

Hello BS,

Good Question.  Still thinking about the answer to clearly differentiae 'C'VC Vs 'C'BF and will get back to you.

In the meantime, Please use below link to a document on

Hope this will help.

Thank you

Satish Waghmare

[Former Member · Accepted solution]

Thanks Satish,

In facT this document was what prompted me to ask this question 🙂

I am giving full points in advance but I wait for your perspective on this.

Simply put I still can't get a complete rationale of what would someone gain with implementing CBF demand planning over standard demand planning What would be the fundamental business requirements that standard demand planning cannot meet but CBF can ?. I could absorb the DP BOM thing that I could lay my hands on some support project some years ago when I was paid for sitting idle in a 5 star company all day long but now I know something:-).

Regards

BS

[Former Member · Accepted solution]

Hi Borat,

the key point is that it allows you to do characteristics based PLANNING, as it allows you to release forecast to ppds beyond the usual material-plant level (you can include colour, quality, that kind of thing). In the planning side the additional levels are characteristics in classes (CTO4, CL03...), not infoobjects.

Best regards,

J.

[satish_waghmare3 · Accepted solution]

Hello BS,

Here is my understanding purely based on research and SAP Help. ( I have not worked in CDP or CBF).

Characteristics Based Forecasting(CBF) is useful for Configurable products. Typically these Configurable Products can have several different variants but they are managed by Single Product Number. As now days Customers are becoming more demanding, the demand for such Configurable products is increasing too. CBF is needed when you not only need for forecast for the final product but also for its individual characteristic value. I think CBF (and CDP) are more relevant in MTO scenario to deal with Configurable products. The CBF forecast is released to PP/DS which creates Planned Independent Requirements(PIR) and PP/DS is used for CDP purpose.

CBF for configurable products having some specific characteristics(like color, specific accessories etc), it creates the forecast of configurable products (demand planning). But the important thing is CBF Forecast has the total forecast at the configurable parent level and apportioned quantity for each configurable characteristic value from CBF profile.

CBF is integrated with PP/DS,  The forecast is used by PP/DS functionality for planning production. Basically CBF compliments Characteristics dependent planning (CDP) functionality. CDP is used for the purpose of supply planning of configurable products.

Technically, it requires mapping of class types : the class needs to be assigned to configurable products in ECC, after integration Class Type 400 gets assigned in APO. PDS or PPM is required. CBF Profile is needed to facilitate forecasting of Configurable products in DP and its subsequent release to PP/DS. Consumption Group is required for forecast consumption by Sales orders. Besides, MPOS contains three additional characteristics which allows CBF forecasting for Configurable Products. Planning Area and Planning Book, CBF profile and CVCs plays important role in overall forecasting process.

SAP Help Link :

Characteristics-Based Forecasting - SAP Library

Hope this will help.

Thank you

Satish Waghmare

[Former Member · Accepted solution]

Thank you James and Satish,

I think I am getting it now

 it allows you to release forecast to ppds beyond the usual material-plant level (you can include colour, quality, that kind of thing). 

That brings me to the concluding question now. .. Then what are "descriptive characteristics" meant for ?. 🙂 Sorry I am sincerely confused.

Satish,

 I think CBF (and CDP) are more relevant in MTO scenario to deal with Configurable products.

Does this mean when CBF demand planning is implemented, SNP does not make sense ?.

Regards

BS

[Former Member · Accepted solution]

Regarding Descriptive Characteristics, these are "characteristics" that can be used in ECC for several different pouposes, among them adding combining them to the material master.

Say you manufacture cars and the color your customers can request is a RGB 3-tuple (255,255,255).

When setting up your material master in ECC, you can either create 255^3 different material masters for each car, or you can attach 3 "descriptive characteristics" to a single material master for each car model. These characteristics are created in ECC (tcodes CT04, CL03), assigned to the material master (configurable materials or material variants) and ciffed to APO both as objects and inside the material masters sent to APO.

In his kind of scenario, even in MTO/ATO you can use CBF to plan somehow how much paint you need from each color in the MTS segment below (at some intermediate level in your BOM structure) by means of a forecast connected to these characteristics, and you could well plan this with SNP as MTS. These characteristics are "shared" by the forecasting (DP) and the planning functions (SNP, PP/DS) in the MTS segment. SNP in MTO would give you a lot of trouble.

Consumption, reduction etc... are also integrated.

regards,

J.

[satish_waghmare3 · Accepted solution]

Hello BS,

I agree with James comments above.

My comment was based on Configurable Products suites make to order or assemble to order scenario and CDP process can trigger the procurement/production of components and assemblies of the configurable products.

Combination of CBF and CDP goes well hand-in-hand. However I will not be able to firmly say SNP does not make sense if CBF is implemented.

Hope this answers.

Thank you

Satish Waghmare

[Former Member · Accepted solution]

Thanks James and Satish,

I think I am beginning to sink it in.

Many Thanks for your patient replies to educate me. Much appreciate

James: How about you re-writing SAP's documentation ?:-). I admire your style of explaining things. It sounds like I am reading something of economic consequence. Please take this as my sincere compliments. I don;t mean to say I have not been helped by others on this group but yes there is so much to read to understand so little.  I do not mind attending training and education programs if you are delivering one. Doesn't matter which area of supply chain is it in

Sorry this post ran out of points it seems

Regards

BS.

[Former Member · Accepted solution]

Thanks, I completely agree that sometimes there is too much to be filled between the lines of the SAP documentation. Unfortunately, it is as it is, and some times after you fill them, there is fun in it!

Anyway, if you ever come to Paris, let's have a beer

regards,

J.

[Former Member · Accepted solution]

Yes its all fun stuff. Poetry is what I call it..Technical documentation must be the most overworked job in SAP..

Paris is amazing but expensive :-). I have stories to tell. I suggest Almaty.. more than beer. or may be Venice where I vacation every year. Was there this xmas.

I am game, for beers anywhere you say

Thanks

Borat.