How to Plan Bom item before FERT for MTO scenario

[Mahendra_Kalal]

I want to plan the bill of materials first for the MTO scenario, Please suggest possible solutions
issue:- We create the sales order for FERT (MTO) and run MRP which passes the dependent requirement to the bill of materials. We are not following scheduling here, moreover, the business wants to stop fert planning before raw material gets produced in-house. How we can pass the the requirement to bill of materials and not to FERT in MTO scenario where we have already sales orders created based on customer requirements? I know we have many options in MTS like 50 and 70, but I am specifically looking for a MTO scenario.

[arjuna_bandara · Accepted solution]

Hi,

You can use strategy 50 for MTO scenario.

You can test the below steps to verify if your requirement is met

Master data

Set strategy 50 at FG level, and collective indicator as 2 at SFG levels.

Transactions

Maintain PIR for FG, requirement type will be VSE.

Before Sales order

Execute MRP run, then planned order will be generated for FG with order type VP which cannot be convertible. Dependent requirement for the planned order will be passed to SFGs where those SFG planned orders can be converted to production order and complete the production process there.

After sales order

Execute MRP run, new planned order will be generated for FG referring to the sales order line item qty (MTO). This planned order can be converted to a production order.

 PIR and VP planned order will be consumed by the convertible planned order quantity.

PIR will get reduced once PGI done to Sales order.

[Mahendra_Kalal · Accepted solution]

Thank you for your feedback, Since it is MTO scenario, we do not know the exact requirements for the FERT and SFG. We know the requirements only after the sales team creates the sales order. in other words, how do we know how much qty is required for PIR in advance for MTO? I am not sure How we can achieve this in that case.

[arjuna_bandara · Accepted solution]

Hi, You need to have a requirement to initiate the production in advance, either from FG or SFG. If the requirement is known at SFG you can go for strategy 70 -planning at assembly level, where the consumption is driven by the production of the final assembly. It will be a mix of MTO and MTS.