Use of PIR consumption for advance material order (MTO prototype)

[Former Member]

Hi planing Gurus,

I am investigating the possibility to use PIR to trigger replenishement long lead time sub level mfg or purchase products in the context of building MTO prototype. I believe I could use planning strategy 70/consumption mode VSFB to handle eventual actual requirements that will be created at higher levels.

Q1. The parameters Fwd and Bwd consumption in MRP 3 are limitted. For instance, if I set 7 days each the system will only consider actual demand in this timeframe. I am not too in favor to set large value there to manage the fact that actual demand may not occur exactly as planned by the PIR. Is there any way the consumption can be iterative (eg. bwd 7, fwd 7, bwd 14, fwd 14)?

Q2. Is there another mean to trigger replenishment of long lead time mfg part/purch part in the contexte of MTO prototype and manage consumption.

Your help is greatly appreciate and speed up my curve to learn SAP PP architecture (I have experience with other mfg systems).

Francois Paquet

[madlercm · Accepted solution]

Hello Francois,

Strategy 70 sound fine, but with an MTO prototype there might be additional issues like cost planning and control, management of additional activities like engineering, etc.

So, for complex requirements in this area SAP offers the Project System (PS) functionality. One of the features there is creating requirements for the procurement of LLIs, or advance procurement in general. This is done also using PIRs, in the project stock (WBS stock), which are later on substitute by actual material requirements coming from the networks (for each WBS separately).

I think that for a complex MTO prototype you will find SAP PS very functional and useful.

Regards,

Mario

[Former Member · Accepted solution]

Hi Mario, thank you for prompt feedback.

Actually I didn't brought this aspect: we are using PS at full extent being in the aerospace & defense. Since you've brought this element would you know why I needed to select the parameter Mixed MRP = 1 to make the PIR/WBS consumption working? Isn't this parameter aimed for gross requirement planning? Furtunatelly my tests showed that the WBS stock is netted still.

By any chance do you have any recomendation for seting bwd and fwd consumption?

Francois

[former_member208123 · Accepted solution]

For forward and backward scheduling you can use "999", the requirement is against a project WBS element so it will not effect any other project. If your advanced procurement is across multiple WBS you may wish to consider MRP groups so you can procure under a single WBS.

Regarding Mixed MRP needing to be "1", I can not give a good reason, but the advanced procurement does not work without it.

[Former Member · Accepted solution]

Thank you James & Mario. You have understood exactly my requirement and provided helpfull comment.

I you don't mind since you know very much this area I have one last question on another scenario. If you prefer I can raise another thread.

We want to set a production plan at the final assembly level. Our goal is to set a production plan wich is desynchronized from the sales deliveries plan in order to maximize our production ressources. Note that the sales deliveries plan is firm for the long term. I beleive the planning strategy 40 is designed for this. Is that right? However I'm not convince we would use the Availability check.

Francois

[rammohan_shenoy · Accepted solution]

Francois,

If you need a production plan that is indepenedent of sales order & deliveries PS =10 works better than PS=40.

This planning strategy is particularly useful in mass production environments. You should choose this strategy if you want production to be determined by a production plan (Demand Management) and if you do not want sales orders to influence production directly. One of the most important features of this planning strategy is that it enables you to smooth the demand program.

Hope this gives you some insight. FOr more clarifications please come back.

Thanks,

Ram

[rammohan_shenoy · Accepted solution]

You had another question

Q2. Is there another mean to trigger replenishment of long lead time mfg part/purch part in the contexte of MTO prototype and manage consumption.

FOr this I would suggest even looking at Planning strategy (PS) = 50.

This strategy are probably the most widely-used strategies in a make-to-order environment.

Procurement of the long lead items (components) is planned by means of planned independent requirements entered at the finished product level. The system creates special planned orders at the finished product level for these planned independent requirements. These orders are only relevant for production once a sales order for the finished product exists.

The assemblies are, however, produced or procured before the sales order is entered. Production is carried out up to one level before the finished product level, and the assemblies and components required for producing the finished product are placed in stock to await the incoming sales order.

Final assembly is triggered once a sales order has been entered.

Hope this helps you take a good decision.

Thanks,

Ram

[Former Member · Accepted solution]

Thank you Ram for both answers. This helps me understand SAP planning and link it with manufacturing common models.

(1) production plan

The operations mgrs will probalbly want to use strategy 10 since they want to state the production drive and furthermore that contract quantities are known upfront. And it would be a good planning starting point.

(2) advance material order, LLI

For the use of strategy 50 I understand this assume that BOM and routings(mgf lt) are maintained at all levels. We will look if this information is available.

Best regards,

Francois Paquet

[rammohan_shenoy · Accepted solution]

Francois,

Those are both good decisions. If you have more questions please come back.

Thanks,

Ram