PP Heuristic to reduce planned order

[Former Member]

Hi all,

Is there a way to set up a PP heuristic to reduce a planned order considering available component quantities?

I'm using exact lot size and SAP_MRP_002 followed by SAP_PP_009. But client doesn't want to delay all production, only the unavailable component quantity.

So, in a very simple example, for an order of product A of 100 EA, if component B has 25 EA in stock the order is reduced to 25 EA (and as a second step, 75 EA are moved into a planned order in the future as with SAP_PP_009).

Any ideas?

Edgar

[Former Member · Accepted solution]

Hi,

As per my knowledge there is no standarad heuristic which suits your requirement.

What I can suggest is-:

Run ATP check for planned orders in ECC or APO. In APO there is no transaction to execute ATP check for planned orders in mass but in ecc it is available.

In ECC through results of ATP check you can decide quantity of planned order that can be manufactured with available component quantities.

Now convert planned order to production order partially according to component availability. Here in ECC there in no function available to convert planned order to production order partially in mass. This needs to be done one by one. You can have simple devlopement to ease the process.

Now if some component receipts are getting delayed. Reschedule those orders in APO to keep plan updated. Run Bottom up rescheduling to get remaining planned orders in future.

Hope this helps.

Regards,

Santosh

e one by one.

[Former Member · Accepted solution]

Hi Santosh,

Thanks for your reply.

Good suggestion, however, I can't convert planned orders to production orders (actually subcontracting purchase orders, but works the same) at this point.

The main reasons are that I need a complete valid plan for the entire week and that some products are components of other products.

ex:

ProductA has one component, ComponentB.

ProductA has a forecast of 100 on Monday.

ComponentB is scheduled to be received during the week, 30 on Monday, 40 on Wednesday and 30 on Friday.

So I need 3 planned orders of 30 on Monday, 40 on Wednesday and 30 on Friday as my weekly production plan.

I can't convert iteratively the planned orders for the entire week because on Monday I'm not really sure that I'll have the stock arriving on Wednesday and Friday.

With your suggestion I'd end up with an order of 30 on Monday and a planned order of 70 on Friday. That's worth exploring. I'll check what can be done with ATP.

best regards,

Edgar

[Former Member · Accepted solution]

Hi,

Can you have sufficient inventory of components to prepare production plan for week or half a week?

This will simplify the scenario a lot more.

In Scope of ATP check you can include only stocks and prepare firmed plan, instead of considering scheduled receipt which you are not sure whether it will be on time or not.

From your description it seems that it is not possible to have very large inventory.

Then only solution can be divide your plan

1. Firmed plan-considering existing stock- may be for 2-3 days.

2. Rest based on scheduled receipt.

I cannot think of any other solution rightnow.

Please update about your findings with some testing in system.

Regards,

Santosh

[Former Member · Accepted solution]

Hi Santosh,

Yes, it's true, it would simplify a lot. Unfortunately it can't be done.

These are high-end, high value and small life-cycle components and some packaging materials. Packaging materials are relatively easy to stock for one week or more but the other components should only be stocked to a minimum level.

Moreover, suppliers of high-end components do not feel the need to respect scheduled delivery dates because they "own" the market, so we can't be sure when stock will be available. The high demand for this components also adds more uncertainty because there might be only (unplanned) partial deliveries during the week as of production is available and distributed for us and other supplier's vendors.

Oh, and a production lot can really be of as low as 40 units in some cases.

Well anyway, I've tried the ATP approach but immediately run into a problem. In the morning I might be assembling a component (A) for the afternoon and I have a delivery scheduled for the morning of another component (B). I can't plan the afternoon production of a product with both components. Even being 2-3 days, in some very frequent cases we should immediately start production as soon as components arrive.

So ATP isn't very adequate even in the shortest time-frame to plan production in this scenario.

Thanks a lot for your input Santosh, it was worth a shot. Right now I can't see an option other than copy SAP_PP_009 to a new heuristic that reduces planned orders to component availability or to use a very small maximum lot size for these short production runs.

Regards,

Edgar

[Former Member · Accepted solution]

Hi,

There is one more feature called push production which helps to create orders based on available component quantities.

I am not aware of detailed functionality donot know whether it will work.

I think you are right only option left is go with SAP_PP_009.

Regards,

Santosh

[Former Member]

Hi Edger,

Did you check SAP_PP_003: Planning deficits

You use this heuristic to plan just the shortages and to reduce surpluses. Dynamic pegging relationships are taken into account with this heuristic.

Regards

Datta

[Former Member]

Hi Datta,

thanks for your reply.

Yes, I did check SAP_PP_003, however it is mostly a make-to-stock scenario and also subcontrating without source location.

I tested again the heuristic as of your reply and it doesn't seem to won't work to my intent in this conditions.

Regards,

Edgar