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SAP configuration : one plant or 2 plants?

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Hi, Experts,

We are going to implement SAP recently. I have a question about we should create 1 plant or 2 plants in SAP system. Our company has 2 plants, but we have only one team to control the operation in both plants. The consultant told me we should create 2 plants in SAP. To my understanding, that means we need to set 2 sets of materials (because most materials are overlapped), 2 sets of SAP roles and also we need to split run the MRP in each plant to check the materials. I am worried about the MRP run. Once we have the material requirement, we need to check the inventory in the other plant, move the material and run the MRP again to confirm if the purchasing is really required. Why not set as a single plant with multiple production lines? What is the problem if we config our system as one plant only?

Accepted Solutions (1)

Accepted Solutions (1)

lingaiahvanam
Active Contributor
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Hi,

It depends on the business decision If both locations are different and the best practice is to create two plants. All financial, purchasing, planning (MRP) and production execution are specific to each plant. In this case, users to be managed with both locations.

If both locations are the same place very near then you can create one plant another one is a storage location. In this case, user setup is easy and reduce the complete logistics activities.

Best Regards,

Lingaiah

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I assumed one plant is easier for us but we need to manually control the materials in the different production locations since we will only have one MRP run to give us the total material requirements. To use 2 plants might be more complex but it will clearly show the material requirements in each plant. Extra work might be required: we need to do some movement to balance the inventory in two plants and run MRP again to check the requirement can be satisfied or not. So, both ways are doable, both require some extra works, the only thing is we need to decide which is the best for us. Yes, Lingaiah, I think you are right, that's a business decision.

Thanks!

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