tscm40 - planning & manufacturing i

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TSCM40Planning / Manufacturing I

SAP Supply Chain Management

Date

Training Center

Instructors

Education Website

Instructor Handbook

Course Version: 81Course Duration: 10 Day(s)

Material Number: 50090909

Owner: Frank Layer (D036000)

An SAP Compass course - use it to learn, reference it for work



Copyright

Copyright © 2008 SAP AG. All rights reserved.

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About This Handbook

This handbook is intended to complement the instructor-led presentation of this

course, and serve as a source of reference. It is not suitable for self-study.

Typographic Conventions

American English is the standard used in this handbook. The following

typographic conventions are also used.

Type Style Description

Example text Words or characters that appear on the screen. Theseinclude field names, screen titles, pushbuttons as well

as menu names, paths, and options.

Also used for cross-references to other documentation

both internal (in this documentation) and external (in

other locations, such as SAPNet).

Example text Emphasized words or phrases in body text, titles of

graphics, and tables

EXAMPLE TEXT Names of elements in the system. These include

report names, program names, transaction codes, tablenames, and individual key words of a programming

language, when surrounded by body text, for example

SELECT and INCLUDE.

Example text Screen output. This includes file and directory names

and their paths, messages, names of variables and

parameters, and passages of the source text of a

program.

Example text Exact user entry. These are words and characters that

you enter in the system exactly as they appear in the

documentation.

<Example text> Variable user entry. Pointed brackets indicate that you

replace these words and characters with appropriate

entries.

2008 © 2008 SAP AG. All rights reserved. iii



About This Handbook TSCM40

Icons in Body Text

The following icons are used in this handbook.

Icon Meaning

For more information, tips, or background

Note or further explanation of previous point

Exception or caution

Procedures

Indicates that the item is displayed in the instructor’s

presentation.

iv © 2008 SAP AG. All rights reserved. 2008



Contents

Course Overview ........ ...... ........ ..... ........ ...... ........ ...... .. vii

Course Goals ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .viiCourse Objectives ..................................................... ix

Unit 1: Preface ........ ...... ........ ...... ........ ...... ....... ........ ..... 1

Course Overview........................................................ 2

Unit 2: Overview of Production Planning in SAP ERP ... .. .. .. .. . 7

Overview of Supply Chain Planning .. .. .. .. ... ... .. .. .. ... .. .. ... .. .. 8

Unit 3: Demand Management ...... .. .... ... .... .... ... .... .... .... ... 29

Overview of Demand Management... .. .. .. ... ... .. .. .. ... .. .. ... .. 32Planning Make-to-Stock Production................................ 39Planning Make-to-Order Production................................ 84Enhancements for Demand Management .. .. .. .. .. .. .. .. .. .. .. .. 110

Basics of the Availability Check .. .. ... .. .. .. ... ... .. .. .. ... .. .. ... .133

Unit 4: Executing Material Requirements Planning. .. .. .. .. .. .. 157

Overview and Concept of MRP ....................................159Prerequisites for MRP ... .... .... ... .... ... ... .... .... ... .... ... .... .164Setting and Executing the MRP Run .. .. .. .. ... .. .. .. .. ... .. .. ... .172Firming .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .217

Unit 5: Technical Processes in Requirements Planning....... 241

Net Requirements Calculation ... .. ... .. .. .. ... ... .. .. .. ... .. .. ... .244Lot-Size Calculation ... ... .... .... ... .... ... ... ..... ... ... .... ... .... 272Procurement Types..................................................294

Scheduling.... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .307BOM and Routing Selection. .... ... .... ... ... ..... ... ... .... ... .... 335

Unit 6: Evaluating and Processing the MRP Results .. .. .. .. . .. 361

MRP List and Stock/Requirements List .. .. .. .. .. .. .. .. .. .. .. .. .. .363Planning Table........................................................389Exception Messages ..... .... .... ... .... ... ... ..... ... ... .... ... .... 398Additional Evaluation Aids .. .. ... .. ... .. .. .. .. ... ... .. .. .. ... .. .. ... 407

Unit 7: Overview of SAP APO-PP/DS. ... .. ... ... .. .. ... .. ... ... .. .. 427

Introduction to SAP APO-PP/DS.. ... .. .. .. .. ... .. .. .. .. ... .. .. ... .429

Master Data Overview.... .... .... ... .... ... ... ..... ... ... .... ... .... 439

2008 © 2008 SAP AG. All rights reserved. v

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Contents TSCM40

Demand Management with APO PP/DS.......................... 461Production Planning with APO PP/DS ............................ 483

Selected Planning Tools in APO PP/DS ... .. .. .. .. .. .. .. .. .. .. .. .497

vi © 2008 SAP AG. All rights reserved. 2008

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Course Overview

This folder deals only with the content of the second week of TSCM40. The

first week is covered by the PLM114.

This course teaches you how to handle master data and planning in SAP ECC

and SAP SCM-APO.

The information is based on the release levels SAP ECC 6.0 and SAP SCM 5.1

Target Audience

This course is intended for the following audiences:

• Application consultants responsible for the implementation of planning as

part of the SAP Business Suite in SAP ERP.

Course Prerequisites

Required Knowledge

• SAP120 SAP Navigation (E-Learning)

• ERP001 Management Empowered by SAP ERP (E-Learning)

Recommended Knowledge

• None

Course Duration Details

Unit 1: Preface

Course Overview 20 Minutes

Unit 2: Overview of Production Planning in SAP ERPOverview of Supply Chain Planning 90 Minutes

Exercise 1: Production Planning Process with ECC 20 Minutes

Unit 3: Demand Management

Overview of Demand Management 30 MinutesPlanning Make-to-Stock Production 120 Minutes

Exercise 2: Sales Orders in Make-to-StockProduction 10 Minutes

Exercise 3: Planning with Final Assembly 20 Minutes

Exercise 4: Subassembly Planning 15 Minutes

Planning Make-to-Order Production 90 Minutes

Exercise 5: Planning Without Final Assembly 20 Minutes

Enhancements for Demand Management 90 Minutes

Exercise 6: Customizing 10 Minutes

2008 © 2008 SAP AG. All rights reserved. vii



Course Overview TSCM40

Basics of the Availability Check 60 Minutes

Exercise 7: Availability Check for Sales Order 15 Minutes

Unit 4: Executing Material Requirements Planning

Overview and Concept of MRP 30 Minutes

Prerequisites for MRP 60 Minutes

Setting and Executing the MRP Run 120 Minutes

Exercise 8: Planning File 20 Minutes

Exercise 9: Simulative MRP 20 Minutes

Firming 90 Minutes

Exercise 10: Firming 20 Minutes

Unit 5: Technical Processes in Requirements Planning

Net Requirements Calculation 90 Minutes

Exercise 11: Net Requirements Calculation and

Safety Stock 25 Minutes

Lot-Size Calculation 60 Minutes

Exercise 12: Lot-Size Calculation 15 Minutes

Procurement Types 60 Minutes

Exercise 13: Procurement Type and QuotaArrangement 15 Minutes

Scheduling 90 Minutes

Exercise 14: Scheduling 30 Minutes

BOM and Routing Selection 60 Minutes

Exercise 15: Routing and BOM Selection 10 Minutes

Unit 6: Evaluating and Processing the MRP ResultsMRP List and Stock/Requirements List 60 Minutes

Exercise 16: Functions of the Stock/Requirements

List 15 Minutes

Exercise 17: Display Filter, Selection Rule(Optional) 10 Minutes

Planning Table 30 Minutes

Exception Messages 30 Minutes

Additional Evaluation Aids 30 Minutes

Exercise 18: Collective Display of MRP Lists 10 Minutes

Exercise 19: Rescheduling Check (Optional) 15 Minutes

Unit 7: Overview of SAP APO-PP/DSIntroduction to SAP APO-PP/DS 20 Minutes

Master Data Overview 90 Minutes

Exercise 20: Master Data Overview 25 Minutes

Demand Management with APO PP/DS 75 Minutes

Exercise 21: Planning with Final Assembly inAPO-PP/DS 30 Minutes

Production Planning with APO PP/DS 75 MinutesExercise 22: Executing the Production Planning

Run (Optional) 20 Minutes

viii © 2008 SAP AG. All rights reserved. 2008



TSCM40 Course Overview

Selected Planning Tools in APO PP/DS 90 Minutes

Course Goals

This course will prepare you to:

• To understand the positioning, integration, and functions in the area of

planning within the SAP ERP application and name the main functions in

the secondary application SAP SCM

Course Objectives

After completing this course, you will be able to:

• Evaluate, describe, and implement the options provided by SAP-basedplanning

Preparation before the start of the course

1. In SCM APO: Under Customizing for GATP: Call the check instruction for

the 050 -A combination and deactivate “Rules-based ATP and Immediate

Rule evaluation, without previous check”.

2. Before starting the course, a mass change of the production horizon must be

carried out in SCM APO: Call APO transaction MASSD, load the SCM250_I

variant, set the supply profile to “blank”, set both the SNP production

horizon and PP/DS horizon to 60 days, and save.

User name and passwords for the course participants

The standard format for user names is “the course name plus the group number”:

TSCM40-##. The initial password is INITIAL. Use transaction ZUSR to copy the

user from a reference user (into the ECC and SCM systems):

Copy template: SCM250MUSTER (if this does not exist, use your own user)

Name of the course. TSCM40

Number of exercise groups: For example, 18.

Initial password: INITIAL

To create the user, choose Execute.

In the “Uniqueness of group numbers” dialog box, choose No.

In the “Free Group Numbers Found” dialog box, choose Create.

Important note to Instructor:

2008 © 2008 SAP AG. All rights reserved. ix




Days 1-4 cover the first 5 units of the course SCM240 (Production Planning

(ERP)). Special processes such as MRP areas or master production scheduling

are therefore not dealt with. Instead, on day 5, the last unit provides a selectionimportant content from the course SCM250 (Production Planning and Detailed

Scheduling with APO-PP/DS).

The courses SCM240 and SCM250 are therefore best suited as a means of

preparation for this course.

LOCATION FOR THE INFORMATION

XML-BASED TRAINING MATERIAL – INSTRUCTOR HANDBOOK

In the Instructor Handbook for XML based training material the most important

recommended information is also placed under the first “Instructor note” xml-entry

after the “Course Objectives” and before “Introduction” of Unit 1.

RECOMMENDED INFORMATION

HINTS ON PREPARING THIS COURSE

Remember to check for additional information not published after the course

material was finally released. For the latest information or course updates see also

the Instructor Guide/System Setup Guide or Trouble Shooting Guide on SAP

Service Marketplace under the alias /curr-info:

http://service.sap.com/curr-info .

TRAINING SYSTEM

Your training systems will be available and accessible on Sunday evening (CETtime zone) in the week the training takes place. Do not use the system or prepare

your course before that time. The system may still be in use by another course

or in the refresh procedures of the IT preparation for your course! If you need a

test/prep. system before your course takes place, see details under the section

“Test/Prep. System”.

MATERIAL REQUIRED FOR PARTICIPANTS

In this course the following training material is necessary:

• For the first week of the course: PLM114 Coll. 63

(or PLM110 Coll. 52 and PLM111 Coll. 52, if the course is held in German)• For the second week of the course: TSCM40 Coll. 81

DATA REQUIRED

For this TSCM40 course you need a training landscape consisting of an ECC 6.0

system that has been copied from XD0, and the corresponding SCM 5.1 system

that has been copied from FO7.

“Corresponding” means that CIF integration must exist and be active between

both systems.

x © 2008 SAP AG. All rights reserved. 2008

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TSCM40 Course Overview

TEST /PREP. SYSTEM

Use the system landscape T37 (ECC) and TO7 (SCM) for your course preparation.

You need to use client 800. If you do not have a user, the systems are not available,

or the systems do not work correctly, please open a CSS ticket.

Do not use T37/TO7 in your training! Otherwise an access violation fee will be

charged by KPS.

TRAINING WTS FARM

If necessary, you can work via WTS (Windows Terminal Server).

• Training at SAP training centers/Internal SAP training

The internal connectivity to the training WTS farms can only be used inside

the SAP network infrastructure.To connect to the training WTS farm use http://wts.wdf.sap.corp:1080.

Choose your home region (US, EMEA or APJ). Select the “Training Zone”

menu. Connect to “Common Training”, if no other WTS farm is named

for the training.

• Customer Onsite training / Third party training center

Customer Onsite training can only connect to SAP training WTS farm via

the SAP Citrix Secure Gateway (SAP CSG). You therefore need a CSG-User

ID. The User ID needs to have been created by the education department in

time for the training. The data (User ID and password) are delivered to you

by the education department. The instructor and participants use the samededicated CSG-User-ID and password for the training.

To connect to the training WTS farm use https://mywts.sap.com.

Enter the CSG-User ID and password. Choose your home region (US,

EMEA or APJ). Select the “Training” icon. Connect to “Common Training”,

if no other WTS farm is named for the training.

USER ID AND PASSWORDS FOR THE COURSE

• Training with Reference User IDs:

To create the participants’ users (and, if necessary, your instructor user)

directly before the course starts, log on to both training systems with the user

“Training”. The monthly changed password should be delivered by your

education department in the training information email/documentation. The

standard format for User IDs is the course ID (here: TSCM40), followed by

the group number (here: ## being the group number 00 up to max. 30).

The User IDs will thus be "TSCM40-##". The initial password is INITIAL

(capital letters!). Use transaction ZUSR to copy these User IDs from the

reference User ID (e.g. from your own user or from the user SCM250muster).

2008 © 2008 SAP AG. All rights reserved. xi

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ADDITIONAL PREPARATION IN THE SYSTEM

• Example ABAPs

none

• CATTs/eCATTS

no CATTs needed

• Switching on/off table locking in SAP systems

Call transaction SE38, run the report ZSENQOFF (Customizing is needed by

participants in parallel on the second course day).

TECHNICAL HINTS

Further activities to be carried out before the course commences:• General CIF-check: Post goods receipt - other - for T-F200: 15 pcs, storage

location 0002 in ECC (transaction MIGO) and check result in the product

view in SCM.

• Global ATP: Maintain check instructions in SCM: 050 – A: Deactivate RBA,

deactivate Start Immediately

• PP/DS: Set SNP and PP/DS horizon for the products T-F2##, T-B1##,

T-B22##, T-B3##, and T-B4## to 60 days using transaction MASSD in

SCM, variant SCM250_I

For further information please refer to XML instructor versions of SCM240 Coll.

81, SCM250 Coll. 81 or previous instructor guides (SAP corporate portal).

xii © 2008 SAP AG. All rights reserved. 2008



Unit 11 Preface

Use this unit to present the course schedule and contents to the participants in

the form of a general preview.

Unit Overview

The course materials provide a detailed view of material requirements planning

(MRP) in ECC as well as an overview of the main functions of extended planning

in APO-PP/DS.

Unit Objectives

After completing this unit, you will be able to:

• Gain an overview of the content of this week of the course.

Unit Contents

Lesson: Course Overview ..... ... .... ... .... .... ... ... .... .... ... ... .... ... .... ..2

2008 © 2008 SAP AG. All rights reserved. 1

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Unit 1: Preface TSCM40

Lesson:

2

Course Overview

Lesson Duration: 20 Minutes

Lesson Overview

The content of the second week of TSCM40 is presented and placed in the overall

context.

Lesson Objectives

After completing this lesson, you will be able to:


The course TSCM40, which constitutes the first part of the Partner Academy

“Planning & Manufacturing”, is divided into 2 parts: Master data, which is

covered in the first week with PLM, and production planning, which is dealt with

in the second week using these course materials.

Business Example

The course TSCM40 contains master data from logistics and planning aspects

from the ECC (main focus) and SCM-APO (overview) systems

Figure 1: SAP Consultant Training




TSCM40 Lesson: Course Overview

Figure 2: Content Covered in This Week of the Course




Unit 1: Preface TSCM40

Facilitated Discussion

Point out to the participants the main points of emphasis and objectives of the

course. If necessary, explain how these main points of emphasis are weighted

in the certification test.

Discussion Questions

Use the following questions to engage the participants in the discussion. Feel free

to use your own additional questions.




TSCM40 Lesson: Course Overview

Lesson Summary

You should now be able to:• Gain an overview of the content of this week of the course.




Unit Summary TSCM40

Unit Summary

You should now be able to:





Unit 2 7 Overview of Production Planning in

SAP ERP

Welcome the participants and introduce the course content and objectives.

Familiarize the participants with the course schedule. Ask them to introduce

themselves.

Unit Overview

Describe the content and organizational aspects of the course. It is important to

show where the course belongs in the SCM curriculum. The course operates

exclusively within SAP ECC as far as content, demonstrations, and exercises are

concerned, dealing with the production planning process in the system. The course

builds on the basics covered in SCM100.

As an introduction, put the production planning process into context: Talk about

the entire planning chain from (optional) sales and operations planning to shop

floor control. Do not go into detail about the functions. Instead, show how the

contents of the course relate to the neighboring business processes.

Unit Objectives


• Place the course content in the overall context

• Outline the business scenario used

• Give an overview of Supply Chain Planning in ECC

Unit Contents

Lesson: Overview of Supply Chain Planning...................................8Demonstration: Production Planning Process with ECC. .. .. .. .. .. .. .. 14

Exercise 1: Production Planning Process with ECC.................... 17


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Unit 2: Overview of Production Planning in SAP ERP TSCM40

Lesson:

8

Overview of Supply Chain Planning


Lesson Overview

Welcome the participants and introduce the course content and objectives.

Familiarize the participants with the course schedule. Get the participants to

introduce themselves.

Lesson Objectives





You should point out here that production control and capacity requirements

planning are not dealt with in this course, but in the courses SCM310 and SCM360.

This course focuses on requirements planning.

If necessary, you can go straight to unit 5 (Evaluations) after you have completed

this unit. For information about this, see the note in the description of the overview

demonstration Production Planning Process with ECC at the end of this unit.

Business Example

Your company is implementing production planning and detailed scheduling

using ECC MRP.

You use the example of the Precision Pump Company to familiarize yourself with

the functions of MRP. The Precision Pump Company offers various standard

pumps.

After you have entered future requirement quantities in demand management,

you plan production in the production plant. Externally procured or low value

materials should, if necessary, be planned using consumption-based planning.

Possible SAP Components of Supply Chain Planning

Describe the system landscape in the SAP planning environment. Explain in

particular the special characteristics of the different systems in the landscape.




TSCM40 Lesson: Overview of Supply Chain Planning

Figure 3: Possible SAP Components of Supply Chain Planning

SC planning primarily uses the following SAP components: SAP ECC (ERP

Central Component), SAP SCM (including APO, Advanced Planning and

Optimization), and SAP BW (Business Information Warehouse). The SAP

SCM system contains many components that constituted separate systems in

earlier releases. As well as APO, SCM 4.1 also includes Supply Chain Event

Management (EM) and Inventory Collaboration Hub (ICH).

The interfaces responsible for integrating ECC with BW or SCM APO are made

available using a corresponding Plug-In. The interface between ECC and SCM

APO is called the Core Interface (CIF).

Supply Chain Planning in ECC

Describe the steps in the ECC production planning process and place these in

the overall business context.

Some frequently used abbreviations:

• Sales and Operations Planning = SOP

• Material Requirements Planning = MRP

• Master Production Scheduling = MPS

• Long-Term Planning = LTP





Figure 4: Supply Chain Planning in ECC

Supply Chain Planning in SAP ECC can be divided into several steps: Planning

takes place in demand management. Consumption of the forecast with sales orders

is possible. Long-term planning is simulative planning. You can use it to analyze

a demand program to see how feasible it is, for example. Master production

scheduling is requirements planning for master schedule items. Non-master

schedule items are planned in material requirements planning.

Figure 5: Production Planning and Control





Demand Management

Repeat the most important points relevant to this subject from the course SCM100.

Figure 6: Demand Management

Demand Management is the management of independent requirements. The

behavior of independent requirements in material requirements planning (for

example, whether they are effective, or whether they consume other requirements)

is determined by their requirements type or by the planning strategy.

Planned independent requirements are stock requirements that can be derived

from a forecast of future demand. In make-to-stock production, you want to start

procurement of the affected materials without waiting for specific sales orders. On

the one hand, this kind of procedure allows you to reduce delivery times, while on

the other hand, you can use forecast planning to spread the burden as evenly as

possible across your production resources.

Sales orders (customer independent requirements) are created in Sales and

Distribution. Customer requirements can enter Material Requirements Planningdirectly, depending on their requirement type. This is always desirable if you want

to plan for specific customers.

Sales orders can be used either as exclusive requirement sources, for which

procurement is then specifically triggered (make-to-order production), or they can

be grouped with planned independent requirements to create the total requirements.

Consumption is also possible with planned independent requirements.





MRP Procedures

Point out the differences between the two basic MRP procedures. Refer to training

course SCM525, if required.

Figure 7: MRP Procedures

If you want to plan material requirements automatically, you must define suitable

MRP and lot-sizing procedures in the material master. To do this, use the MRP

type and lot size indicators. Depending on the procedure you choose, you then

have to maintain further data in the material master. You can define different MRP

procedures for a material in different plants.

The two main planning procedures are consumption-based planning and material

requirements planning.

Consumption-based planning is based on historical consumption values and

uses forecasting or statistical procedures to determine future requirements.

Consumption-based planning is characterized by its simplicity and is mainly used

for B and C parts with a low value. One prerequisite of consumption-based

planning is efficient and constantly up-to-date inventory management.

In contrast to consumption-based planning, material requirements planning takes

current and future sales as a reference point and is executed for the whole BOM

structure. The planned requirement quantities trigger the MRP calculation. It

produces better planning results than consumption-based planning.





The principle of MRP

Explain the basic characteristics of MRP. Go into sufficient detail, as the first

exercise on this subject follows on from your explanation.

Figure 8: The principle of MRP

In the first step for detailed planning in MRP, the procurement dates and quantities

for the required assemblies and components are determined based on the

requirements dates and quantities for the finished product (for example, a sales

order). Bills of material and routings must be exploded to do this.

Scheduling of procurement for in-house products is carried out using the routing.

The production operations to be executed and the length of the individual

operations are specified in the routing. The assemblies (from the BOM) required

for production must be available when production of the finished product is

started. Procurement of these assemblies must therefore be initiated earlier. In this

way, assuming the dependent requirements date is the availability date, the systemdetermines the order dates of the components by means of backward scheduling

using the in-house production time or planned delivery time.





Demonstration: Production Planning Process withECC

Purpose

Overview demo of the entire planning process

System Data

System: See weekly mail

Client: See weekly mail

User ID: Own user ID

Password: Own password

Set up instructions: Standard

1. Do the exercise in the introductory unit as a demonstration. Take account

of the fact that this may be the first time some of the participants have seen

the transactions used! If in doubt, take more time.

Material: R-F1## in plant 1000

2. Note: If you think it would be better to go into more detail about the

evaluation tools stock/requirements list and MRP list here, (for example,

because the majority of the participants are MRP controllers), go straight to

unit 5 (Evaluations).

Call the tools (transactions MD04, MD05, MD06, MD07) one after the

other. Use the slides and exercises from unit 5 to explain the basic features

and where they are used. If necessary, you can go through the whole of

unit 5 here.

If you decide to do this, go through all the exercises from unit 5 directly

after exercise 1.

The advantage: The participants can start using these evaluation tools to

evaluate their planning results right away without having to wait until the

fourth day of the course when they cover the unit about evaluations.

3. Alternative option: If you want to demonstrate the whole process (including

Demand Planning), you can use the following system demonstration.(Caution, this demonstration is suitable only for experienced trainers since

the contents exceeds the concepts covered in the course and it requires

knowledge of Demand Planning).

3.1 Generate the product group pump-## in plant 1000 [transaction MC84],

base unit of measure pc, member materials and maintain the following data:





Material number Plant Proportional factor

T-F1## 1000 60%

R-F1## 1000 40%

3.2 Call the planning tool in change mode [transaction MC82], active

version, and maintain the following sales figures:

Period Month

+3

Month

+4

Month

+5

Month

+6

Month

+7

Month

+8

Sales 600 700 500 900 1000 1100

3.3 Now generate a synchronous to sales production plan and save it.3.4 Release the production plan [transaction MC75] and write it to the active

planned independent requirements version 00.

3.5 Check the result in the stock/requirements list [transaction MD04]

and interpret it.

3.6 If necessary, carry out material requirements planning [transaction

MD02] and interpret the results.





13 Exercise 1: Production Planning Process

with ECCExercise Duration: 20 Minutes

Exercise Objectives

After completing this exercise, you will be able to:

• Execute the main steps required for the production planning process in

SAP ECC.

Business Example

Precision Pumps Inc uses the make-to-stock production strategy. The

make-to-stock production strategy is used. Pumps are manufactured, put away,

and then sold.

Task 1:

In plant 1000, enter a demand program (planned independent requirements) for

material R-F1## (replace ## with your group number). Select make-to-stock

production (LSF requirements) for the first 8 weeks of your planning period.

To do this, proceed as follows:

1. Maintain the material master: In the material master for pump R-F1##, enter

strategy group 10 for plant 1000 in the MRP 3 view and save the change.

2. In Demand Management, enter the planned independent requirements

(requirement type LSF) for material R-F1## in plant 1000 (version 00).

Set the planning period to week format by entering the indicator W in the

planning period field in the initial screen for the transaction. Enter the

following planned independent requirements for pump R-F1## in plant

1000:

Current

Week + 5

Current

Week + 6

Current

Week + 7

...Current

Week + 12

25 25 25 ...25

(Total quantity: 200 pieces, the first column on the left-hand side in

transaction MD61 is the current week)

Save your entries.

3. From the MRP menu, display the stock/requirements list for material

R-F1## in plant 1000.

Continued on next page





Note down the exact date of the second LSF require-

ment:______________________

Task 2:

From the MRP menu, carry out multilevel, single-item planning for pump

R-F1##. In the initial screen of the planning run, use the following creation

indicators:

Processing key NETCH

Purchase req. purchase req. 2

Scheduling agreement schedule lines

3

Create MRP list 1

Planning mode 1

Scheduling 1

Also plan unchanged components Select

Display results Do not select

Display material list Select

Simulation mode Do not select

1. In the initial screen for single-item, multilevel MRP, save the creation

indicator setting you have made for the MRP run by selecting the menu

path Settings → Save.

2. Start the MRP run by choosing Enter and confirm the system warning by

choosing Enter again.

Task 3:

Once the MRP run has been carried out successfully, the system displays the

statistics.

1. Choose the Material List pushbutton and select the row containing your

pump R-F1## by clicking on the button at the beginning of the row. Goto

the display for the current stock-/requirements list for the material and

refresh the screen (F6).You can now see the planned orders created for the

requirements.






2. Display one of the planned orders by double-clicking it and choosing Display

Element. Select the Component Overview pushbutton and compare the

order start date of the end product R-F1## with the requirements date for theassemblies R-B1##, R-B2## and R-B3##. How do you explain the date?

__________________________________________________________________

__________________________________________________________________

Then exit the display for the planned order and the stock-/requirements list

(understand that you navigated in the stock-/requirements list in display

mode).

Task 4:

Call the current stock/requirements list again and convert the first two plannedorders into production orders. Then release each production order.

1. From the MRP menu, display the current stock/requirements list for material


2. Click on the Details of Element icon to display the statistics for the first

planned order in the list. Choose the Convert planned order into production

order function.

Release the production order and save the order

3. Repeat the operation for the second planned order.

4. Refresh the display by selecting Refresh. Make a note of the productionorder numbers.

Production order number 1

_______________________________________


_______________________________________

Hint: You may have to wait a few seconds for the asynchronous

update to read the data from the queue and update it to the database.

You can call the refresh function several times until you see theproduction orders.






Task 5:

Now assume that you have produced the product, and can post the end product,

the pump, to stock. (We will skip completion confirmation for the purposes of

this training example)

1. Execute the goods movement (more precisely: the Goods receipt for

the order MIGO with the transaction MIGO_GO) from the Inventory

Management menu.

In this transaction, use Goods Receipt and Order, not Display, to make your

selections. Enter the order number and choose Enter to confirm your entry.

Select the Item OK field. You may have to scroll down to see this.

Take a look at the Where tab page to make sure that the movement type 101

has been defined (order to stock).

Post the goods movement.

Repeat the operation for the second order number.

2. Check the stock situation in the stock/requirements list and make a note of

the quantity of the oldest planned independent requirement:

_____________________

the date of the oldest planned independent requirement:

_____________________

the quantity available today: _____________________





Solution 1: Production Planning Process

with ECCTask 1:

In plant 1000, enter a demand program (planned independent requirements) for

material R-F1## (replace ## with your group number). Select make-to-stock

production (LSF requirements) for the first 8 weeks of your planning period.

To do this, proceed as follows:

1. Maintain the material master: In the material master for pump R-F1##, enter

strategy group 10 for plant 1000 in the MRP 3 view and save the change.

a) Menu path: Logistics → Production → Master Data → Material

Master → Material → Change → Immediately

2. In Demand Management, enter the planned independent requirements

(requirement type LSF) for material R-F1## in plant 1000 (version 00).

Set the planning period to week format by entering the indicator W in the

planning period field in the initial screen for the transaction. Enter the

following planned independent requirements for pump R-F1## in plant

1000:

Current

Week + 5

Current

Week + 6

Current

Week + 7

...Current

Week + 12

25 25 25 ...25

(Total quantity: 200 pieces, the first column on the left-hand side in

transaction MD61 is the current week)

Save your entries.

a) Menu path: Logistics → Production → Production Planning →

Demand Management → Planned Independent Requirements → Create

3. From the MRP menu, display the stock/requirements list for material


Note down the exact date of the second LSF require-

ment:______________________


Demand Management → Environment → Stock/Requirements List

Date of second LSF requirement: Varies






Task 2:


R-F1##. In the initial screen of the planning run, use the following creation

indicators:


Purchase req. purchase req. 2

Scheduling agreement schedule lines 3

Create MRP list 1

Planning mode 1

Scheduling 1


Display results Do not select



1. In the initial screen for single-item, multilevel MRP, save the creation

indicator setting you have made for the MRP run by selecting the menu

path Settings → Save.

a) Menu path: Logistics → Production → MRP → Planning →

Single-Item, Multi-Level

2. Start the MRP run by choosing Enter and confirm the system warning by

choosing Enter again.








Task 3:

Once the MRP run has been carried out successfully, the system displays the

statistics.

1. Choose the Material List pushbutton and select the row containing your

pump R-F1## by clicking on the button at the beginning of the row. Goto

the display for the current stock-/requirements list for the material and

refresh the screen (F6).You can now see the planned orders created for the

requirements.

a) No solution required.

2. Display one of the planned orders by double-clicking it and choosing Display

Element. Select the Component Overview pushbutton and compare the

order start date of the end product R-F1## with the requirements date for the

assemblies R-B1##, R-B2## and R-B3##. How do you explain the date?

__________________________________________________________________

__________________________________________________________________

Then exit the display for the planned order and the stock-/requirements list

(understand that you navigated in the stock-/requirements list in display

mode).

a) How do you explain the date? The requirements dates for the

assemblies coincide with the order start date of the planned order

for the finished product. The assemblies are therefore available at the

start of production for the finished product.

Task 4:

Call the current stock/requirements list again and convert the first two planned

orders into production orders. Then release each production order.

1. From the MRP menu, display the current stock/requirements list for material




2. Click on the Details of Element icon to display the statistics for the firstplanned order in the list. Choose the Convert planned order into production

order function.

Release the production order and save the order


3. Repeat the operation for the second planned order.







4. Refresh the display by selecting Refresh. Make a note of the production

order numbers.


_______________________________________


_______________________________________

Hint: You may have to wait a few seconds for the asynchronous

update to read the data from the queue and update it to the database.

You can call the refresh function several times until you see the

production orders.

a) Production order number 1: Varies

Production order number 2: Varies

Task 5:

Now assume that you have produced the product, and can post the end product,

the pump, to stock. (We will skip completion confirmation for the purposes of

this training example)

1. Execute the goods movement (more precisely: the Goods receipt for

the order MIGO with the transaction MIGO_GO) from the Inventory

Management menu.

In this transaction, use Goods Receipt and Order, not Display, to make your

selections. Enter the order number and choose Enter to confirm your entry.

Select the Item OK field. You may have to scroll down to see this.

Take a look at the Where tab page to make sure that the movement type 101

has been defined (order to stock).

Post the goods movement.

Repeat the operation for the second order number.

a) Menu path: Logistics → Materials Management → Inventory Management → Goods Movement → Goods Receipt → GR for Order

(MIGO)

Alternatively, you can also use transaction MIGO (goods movement

MIGO).

2. Check the stock situation in the stock/requirements list and make a note of






the quantity of the oldest planned independent requirement:

_____________________

the date of the oldest planned independent requirement:

_____________________

the quantity available today: _____________________

a) the quantity of the oldest planned independent requirement: 25

the date of the oldest planned independent requirement: Varies

the quantity available today: 50





Lesson Summary

You should now be able to:• Place the course content in the overall context






TSCM40 Unit Summary

Unit Summary








Unit Summary TSCM40




Unit 3 25 Demand Management

Introduce the most important planning strategies for make-to-stock production and

sales order based production, which are not dealt with (in detail) in SCM100.

Discuss the strategies for assembly processing too, giving examples along theway. Conclude the unit with an explanation of types of planned independent

requirements reduction dependent on the respective strategy, and the options

available for adjusting and reorganizing planned independent requirements.

Mention the availability check in passing (but do not go into detail, as this could

side-track the discussion). Discuss the relevant Customizing settings in this

context too.

Unit Overview

Demand Management represents the first step in the planning process from the

perspective of this course. This unit (and course) does not cover the determinationof the actual level of the planned independent requirements – this is the task of

preliminary demand planning, and can be realized in the SAP system by executing

Sales and Operations Planning (or alternatively in SAP SCM (APO-DP = Demand

Planning)). Normally, the forecasting technique is used here.

Assuming that the planning figures are known, this unit deals with the issue of the

requirements type for planned independent requirements. The requirements type

is determined (or rather, can be determined) by the strategy entered in the material

master. Point out that a strategy is usually defined by a planned independent

requirement type and a customer requirement type, and the interaction between

the two.

In this course, sales orders are simulated by customer requirements (a sales order

creates a customer requirement), since you have to create a delivery in order

to cancel out a sales order (for which there is not enough time in this course).

Otherwise customer requirements behave in the same manner as sales orders.

Introduce the various strategies in detail and explain their functions. There

are strategies that take effect at finished product level, and assembly strategies

that are used for planning an assembly. The functions of planned independent




Unit 3: Demand Management TSCM40

requirement consumption with customer requirements or dependent requirements

and the functions of planned independent requirement reduction are important in

understanding how the strategies work.

Furthermore, this unit will look explicitly at the availability check against planning

and the availability check with ATP logic, although both these issues really come

under the area of Sales. Nevertheless, this integrated whole must be dealt with

from two perspectives: Availability checks can also play a role in production

planning (checking for available components from planned orders or production

orders). You should also point out the difference between the net requirements

calculation and the availability check.

Unit Objectives


• Use the planning strategy

• Explain the interplay between planned independent requirements and

customer requirements

• Use planning strategies for make-to-stock production

• Use planning strategies for make-to-order production

• Explain assembly processing

• Make demand management settings

• Make an adjustment and reduce requirements

• Carry out ATP checks for sales orders

Unit Contents

Lesson: Overview of Demand Management ................................. 32Lesson: Planning Make-to-Stock Production................................. 39

Demonstration: ECC Strategy 10 (Make-to-Stock Production), NetRequirements Planning... .... ... ... ..... ... ... .... ... .... .... ... ... .... .... 44Demonstration: ECC Strategy 30 (Production by Lot Size)............ 47

Demonstration: ECC Strategy 40 (Planning with Final Assembly): Part

1: Creating Planned Independent Requirements ....................... 49Demonstration: ECC Strategy 40 (Planning with Final Assembly): Part2: Planning, Evaluation and Independent Requirement Reduction... 52Demonstration: Subassembly Planning (70)... .. .. .. .. .. .. .. .. .. .. .. .. .. 58

Exercise 2: Sales Orders in Make-to-Stock Production .. .. .. .. .. .. .. .. 61Exercise 3: Planning with Final Assembly ............................... 67

Exercise 4: Subassembly Planning .... .. .. .. ... .. .. ... .. ... .. .. .. .. ... ... 77Lesson: Planning Make-to-Order Production ................................ 84

Demonstration: Pure Make-to-Order Production. .. .. .. .. .. .. .. .. .. .. .. . 90

Demonstration: Planning Without Final Assembly (50) .. .. .. .. .. .. .. .. 97Demonstration: Assembly Processing: Prerequisites and Settings . 100


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TSCM40 Unit 3: Demand Management

Demonstration: Assembly Processing.. ... .. .. .. .. ... .. .. .. .. ... .. .. ... .101Exercise 5: Planning Without Final Assembly .. .. .. .. .. .. .. .. .. .. .. .. .. 103

Lesson: Enhancements for Demand Management .. .. .. .. .. .. .. .. .. .. .. .. 110Demonstration: Adjustment ............................................... 114Demonstration: Reorganization Compared to Adjustment, Using Data

from the Adjustment Demonstration (Optional). .. .. .. .. .. .. .. .. .. .. .. .. 117Demonstration: MRP Settings in the Material Master, MRP Group,Plant... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119Demonstration: Customizing: Planned Independent Requirements

Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .123Exercise 6: Customizing..... ... .... .... ... .... ... ... ..... ... ... .... ... .... 127

Lesson: Basics of the Availability Check.....................................133Demonstration: Planned Order ATP (Optional)... .. .. .. .. .. .. .. .. .. .. .. 139Demonstration: Availability Check for Sales Orders .. .. .. .. .. .. .. .. .. .141Exercise 7: Availability Check for Sales Order . .. .. .. .. .. .. .. .. .. .. .. .. 145


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Lesson:

27

Overview of Demand Management


Lesson Overview

The fundamental concepts of demand management and the terms specific to this

area will be explained.

Lesson Objectives





Space for notes

Business Example

You are a member of a project team in a company that manufactures pumps. The

team is responsible for the implementation of production planning, from demandmanagement to material requirements planning. The pumps are not configurable.

You want to use planning strategies for the procurement of non-configurable

pumps in Demand Management.

Overview: Requirements calculation and motivation for the planning

strategies

Explain the relationship of demand management to material requirements

planning.

Explain the different types of planned independent requirements that are

represented in the SAP system. In this context, describe the importance and

purpose of a planning strategy.




TSCM40 Lesson: Overview of Demand Management

Figure 9: Overview: Requirements Calculation

With regard to later procurement and therefore requirement coverage, it is first

useful to take an overview of the net requirements calculation for material

requirements planning. A procurement is generally necessary only if the

requirements situation exceeds the stock/receipt situation at the time of the

comparison. Here, it is important which requirements are included in the

requirements situation and how the requirements affect each other (for example,

whether they are MRP-relevant and whether they offset each other). The

respective requirements volume (and therefore the production program) also

depends on the default settings maintained in the planning or requirement strategy.

Note that, from a technical point of view, this behavior is not the same as an

availability check . The above comparison is a net requirements calculation.

This unit deals with the properties of the important ECC planning strategies and

how to use them to generate a relevant production program.





Figure 10: Reasons for using planning strategies

A requirement is the quantity of a material that is required at a certain time in a

plant.

Planned independent requirements have no relation to the requirements of other

materials. In particular, planned independent requirements can be attained using

flexible planning or manual planning in the ECC system. They can also be

characterized under the general term “planning”. Together with sales orders they

form dependent requirements.

A planning strategy specifies one of a number of possible material planning

procedures.

Some planning strategies support make-to-stock production. You could, for

example, plan production or purchasing based on a forecast and then cover the

sales orders from the stock.

Some planning strategies support make-to-order production. In this case, you

may not start production or purchasing, for example, until a sales order has been

received.

Some requirements strategies support a combination of make-to-stock and

make-to-order production. You could produce the subordinate assembly based

on a forecast, for example. You would not start the final assembly until a sales

order is received.





Spectrum of planning strategies and overview: Important planning strategies

in ECC

Outline the characteristics of and differences between the basic requirements

strategies and list the most important planning strategies for this course.

Figure 11: Spectrum of Planning Strategies

A number of options are available for planning production with the help of

planned independent requirements. The different effects that planned independent

requirements can have is controlled in ECC by the planning strategy.

If you use make-to-stock production strategies, production usually takes place

without there being sales orders for the respective material. If sales orders are then

received, these can be met by warehouse stock so that short delivery times can be

realized. With make-to-stock production, it is also possible to implement a steady

production process, independent of the current demand.

Make-to-stock production can also be executed for assemblies. In this case, the

finished products themselves are not produced to stock, but rather the necessaryassemblies are procured. A sales order for a finished product can usually be

fulfilled quickly because only final assembly remains to be carried out and the

assemblies required for this already exist.

Sales-order based production is not based on planning in the real sense; rather

a product is procured for an existing sales order. Make-to-order production is

often used in connection with subassembly planning for the components, to keep

delivery times as short as possible.





Figure 12: Overview: Important Planning Strategies in ECC

The make-to-stock production strategies plan production or procurement using

planned independent requirements, which can be created from sales or forecast

figures. Sales orders are fulfilled by warehouse stock. Make-to-stock production

strategies are used in industries where demand and sales fluctuate but where

production should be kept at full capacity. Fluctuations in demand and sales are

balanced out by warehouse stock.

When working with the strategies for make-to-order production, the sales order is

the only pegged requirement. In addition to standard make-to-order production,

planning without final assembly is also possible. Various strategies for assembly

processing are also available.






Discuss the term “planning strategy”.




What setting is made with a planning strategy?





Lesson Summary

You should now be able to:• Use the planning strategy






TSCM40 Lesson: Planning Make-to-Stock Production

Lesson:

32

Planning Make-to-Stock Production


Lesson Overview

Planning make-to-stock production is mainly done using planned independent

requirements. Sales orders can be taken into account too, without the need for

sales order-specific planning.

Lesson Objectives



Space for notes

Business Example

Pump production is planned independently of sales orders using planned

independent requirements.

Important Make-to-Stock Production Strategies

Emphasize some of the basic characteristics of make-to-stock production and

provide a general idea of the illustrated make-to-stock production strategies

(10, 30, 40, 70).





Figure 13: Important Make-to-Stock Production Strategies

Make-to-Stock Production: Overview

Describe the basic process of make-to-stock production again and point out

that the most important make-to-stock production strategies will be looked at

individually in the section that follows.

Figure 14: Make-to-Stock Production: Overview





Areas of use: Make-to-stock production strategies are designed for planning the

procurement of components (production or purchasing) by planning the finished

product. If it is easier for you to plan at component level, you can use planning atassembly level. Choose a make-to-stock production strategy if a) the materials do

not have to be stored separately or are assigned to a specific sales order; b) the

costs have to be visible at material level, in other words not at sales order level.

You use make-to-stock production when you produce stock independently of an

order, because you want to supply your customers with goods from this stock

later. You may want to produce goods without a sales order if you expect a

demand for them in the future. Make-to-stock strategies thus support very close

customer-supplier relationships, since their purpose is to supply the customer with

goods from stock as quickly as possible. Returns that have undergone a quality

check and other unplanned goods receipts can be used for other sales orders.

You can avoid increased warehouse stock in a make-to-stock environment bycreating planned independent requirements in advance to plan your stock. If you

do this, you can also decide whether sales orders that extend beyond your plan

can influence production. In addition, sales orders should be known at a relatively

early stage (for example, using scheduling agreements). Make-to-stock production

strategies generally consist of four phases: Generation of planned independent

requirements, procurement, receipt of sales order, goods issue for delivery and

reduction of planned independent requirements.

Make-to-Stock Production (10)

The sales order does not come into play; there is no consumption.

Figure 15: Make-to-Stock Production (10)





In pure make-to-stock production (“net requirements planning” according to

strategy 10), the demand program is specified without reference to sales orders.

Sales orders are not relevant for MRP, but you can display them for information

purposes. You can make this setting in the No MRP field in Customizing for

the relevant requirements class (work step, “Define Requirements Classes” in

Customizing for Sales and Distribution).

Sales orders are fulfilled from stock. No consumption with planned independent

requirements occurs. You can carry out the availability check with ATP logic

in Sales and Distribution. Goods withdrawals against a sales order reduce the

respective sales order.

Reduction of the demand program, that is, of the planned independent

requirements, is carried out at goods issue (the PIR reduction indicator must be

set in Customizing for customer requirements class 30 if you want to reduce thedemand program by delivering to a sales order). The oldest planned independent

requirement is reduced first, in accordance with the FIFO (first in first out)

principle, using the requirement date as a basis. Future planned independent

requirements are also reduced by goods issues, providing this is allowed by the

“forward consumption period” in the material master.

Make-to-Stock Production (10): Master Data

Point out the importance of the forward consumption period in make-to-stock

production.

Figure 16: Make-to-Stock Production (10): Master Data





Maintain the strategy group 10 in the material master (MRP 3) for the finished

product.

Make-to-Stock Production/Net Requirements Planning (10)

Explain the FIFO principle for reducing planned independent requirements.

Figure 17: Make-to-Stock Production/Net Requirements Planning (10)

The demand program is defined without reference to sales orders.

Sales orders are not relevant for MRP, but you can display them for information

purposes. You make this setting in the No MRP field in Customizing for the

relevant requirements class (work step, “Define Requirements Classes” in

Customizing for Sales and Distribution).

Sales orders are fulfilled from stock. You can carry out the availability check

with ATP logic in Sales and Distribution. Goods withdrawals against a sales

order reduce the respective sales order.

Reduction of the demand program, that is, of the planned independent

requirements, is carried out at goods issue (the PIR reduction indicator must be

set in Customizing for requirements class 30 if you want to reduce the demand

program when delivering to a sales order). The oldest planned independent

requirement is reduced first, in accordance with the FIFO (first in first out)

principle, using the requirement date as a basis. Future planned independent

requirements are also reduced by goods issues, providing the forward consumption

period in the material master allows this.





First provide a short explanation of the net requirements planning logic based on a

theoretical numerical example:

1. Stock 15 pcs, planned independent requirement 10 pcs, procurement? No. The

stock is included in the net requirements calculation.

2. Goods issue of 5 pcs: Stock 15 pcs → 10 pcs, planned independent requirement

10 pcs → 5 pcs (oldest requirement is reduced).

Demonstration: ECC Strategy 10 (Make-to-StockProduction), Net Requirements Planning

Purpose

Preparing the exercise

Hint: As the instructor, you can set navigation profile SCM001

during this demo in order to call the main functions quickly from the

stock/requirements list. Refresh the stock/requirements list after each

step. Execute the goods receipt and goods issue transactions in a separate

session or define up to five favorites for the purpose.

Material R-F1##, Plant 1000

System Data

System: see weekly e-mail

Client: see weekly e-mail

User ID: Your user ID



1. Check the material master and make the following settings: MRP type PD,

strategy group 10 (F4 help for strategy group).

2. Create planned independent requirements (requirement type LSF): Current

week + 4 to current week + 8, each 25 pcs.

3. Execute multilevel requirements planning

4. Convert the first two planned orders into production orders.

5. Post a goods receipt for the production orders (goods receipt for order,

movement type 101, storage location 0002).





→ The stock level increases by the amount of the posted goods receipt; the

planned independent requirements remain the same. A new MRP run does

not cause any new planned orders because the stock level that now exists istaken into account (net requirements planning!).

6. Create customer requirement: 8 pcs for today + 6 weeks

→ The customer requirement is not relevant to MRP (make-to-stock

production) (you can see this by the fact that the available quantity in the

list is not affected).

7. Post a goods issue for the customer requirement (movement type 231,

storage location 0002).

→ Reduction of the customer requirement, reduction of the warehouse

stock, reduction of the oldest planned independent requirement according

to the FIFO rule (first-in-first-out). If the amount removed was more than

the planned independent requirements in the past, then the future planned

independent requirements are also reduced if a corresponding entry exists in

the consumption period forward (although this function does not actually

have anything to do with consumption; you could also consult SAP Note

71804: Requirement reductions same as consumption logic).

You can display the subsequent documents for a customer requirement (for

example, partially processed goods issue for a customer requirement) from

the display of the requirements under Environment → Status Overview.

Figure 18: Production by Lot Size (30)





In production by lot size (strategy 30), the requirements for the finished product are

transferred to MRP when a sales order is processed. You can also plan additional

warehouse requirements in Demand Management. This means that in productionby lot size, sales orders as well as planned independent requirements are included

in Material Requirements Planning. Planned independent requirements are not

consumed by sales orders, however. Both requirements can then be procured in a

shared lot using a suitable lot-sizing procedure (for example, period lot-sizing)

with a common procurement element (such as a planned order).

Sales orders are fulfilled from stock. The customer requirement is reduced by the

goods issue to the customer. You can carry out the availability check with ATP

logic in Sales and Distribution.

The warehouse orders created additionally in demand management are reduced by

the goods issue to the warehouse order, for example, to a cost center (the reduction

is carried out according to the FIFO principle, just as for planning strategy 10).

You can apply this strategy when you need to map orders for major customers and

factory sales from the warehouse simultaneously, for example.

Figure 19: Production by Lot Size (30): Master Data

Production by Lot Size (30) for Sales and Stock Orders

The slide illustrates the chronological grouping of the requirements and the

common procurement elements.

Example of use: Major customers and additional direct factory sales





Figure 20: Production by Lot Size (30) for Sales and Stock Orders

In production by lot size, the system groups the procurement quantities for

customer requirements and planned independent requirements into lots. To do

this, it uses the lot-sizing procedure defined in the material master record.

Demonstration: ECC Strategy 30 (Production by Lot

Size)

Purpose

Demonstration of strategy 30: Production by lot size

System Data






1. Material master R-F1##, plant 1000, MRP 3 view: Enter strategy group 30.

2. Create a customer requirement for R-F1## for 5 pieces, for the 20th

of the following month (plant 1000), requirement type: KL (sales order

manufactured by lot size)

3. Create planned independent requirements for 10 pieces, for the 20th of

the following month.

4. Stock/requirements list for R-F1##, plant 1000: No consumption





5. Multilevel planning run

6. Result in the stock/requirements list: A common procurement element

7. Cleanup the planning situation for R-F1## for subsequent demos.

Figure 21: Planning with Final Assembly (40)

Planning with final assembly (planning strategy 40) allows you to focus on

flexible and fast reaction to customer demand, whilst also aiming for a production

process that is as smooth as possible.

The procurement and production of all components and assemblies including their

final assembly should be triggered by planned independent requirements before

sales orders are received.

You set the planned independent requirements for the finished product in Demand

Management. Incoming sales orders consume these planned independent

requirements.

Planned independent requirements that have not been consumed can - periodically,

for example - be set to zero (transaction MD74).

If customer requirements exceed planned independent requirements, the system

automatically creates a planned order for the sales order, including the unplanned

quantity, in the next MRP run (sales orders that affect requirements).

The availability check can be executed from the sales order.

The consumption of planned independent requirements by customer requirements

depends on the consumption mode and the consumption periods.





Figure 22: Planning with Final Assembly (40): Master Data

Maintain the strategy group 40 in the material master (MRP 3) for the finished

product.

The settings for the consumption of sales orders and planned independent

requirements from the material master are included in this strategy.

In the material master, an MRP group can also be used to assign the consumption

to the material. If consumption values are found both directly using the strategygroup and indirectly using the MRP group, the values from the strategy group

are taken.

Demonstration: ECC Strategy 40 (Planning with FinalAssembly): Part 1: Creating Planned IndependentRequirements

Purpose


System Data






1. In the material master for the pump, change the strategy group and create

planned independent requirements.





Material R-F1##, plant 1000, MRP 3 view -> change the strategy group to

40 (planning with final assembly).

2. Create planned independent requirements (new row!!!) from current

month + 6 to current month + 11 (Use the “Split period online” option),

planned quantity 1,200 pieces, splitting indicator M.

3. Stock/requirements list for R-F1##, plant 1000.

Consumption

Customer requirements arrive. Explain the features of backward consumption,

forward consumption and backward/forward consumption. Point out that this

affects several strategies. Give details of the various possible cases based on thesubsequent three slides.

Figure 23: Consumption

You can use consumption mode to determine the direction on the time axis in

which incoming sales orders are to consume planned independent requirements.

In backward consumption (consumption mode 1), the sales order consumes

planned independent requirements that existed before the customer requirement

was created.

In forward consumption (consumption mode 3), the sales order consumes planned

independent requirements that exist after the customer requirement was created.





You can combine backward and forward consumption provided that you take the

consumption periods into account (consumption modes 2 or 4).

You can define the consumption mode and the consumption periods either in the

material master or for each plant and MRP group. If no values have been entered,

the system uses the default setting with backward consumption for 999 days

Hint: If you do not maintain mode 1 and the backward consumption

interval, this means that only the requirements on the current day are

consumed.

In addition to the consumption mode and consumption periods, the consumption

indicator (consumption type) is also important. The consumption indicator

controls whether the planned independent requirements are consumed withcustomer requirements or with dependent requirements and order reservations, for

example. It is defined as a default value for each planned independent requirement

class in Customizing for Demand Management. The indicator can be overridden

in the item detail screen for planned independent requirements management.

Figure 24: Consumption Mode 1: Backward Consumption (I)





Figure 25: Consumption Mode 1: Backward Consumption (II)

Figure 26: Consumption Mode 2: Backward/forward

Demonstration: ECC Strategy 40 (Planning withFinal Assembly): Part 2: Planning, Evaluation andIndependent Requirement Reduction

Purpose






System Data






1. Execute a planning run, evaluate the run and demonstrate independent

requirement reduction for goods issue.

Multilevel planning run with the settings from before for the previously

used material R-F1##, plant 1000.

2. Customer requirement for 10 pieces, plant 1000, R-F1##, date: Second

planned independent requirement date + 4 days, sales order consumption.

3. Stock/requirements list: Consumption or effect on requirements

compared to strategy 10.

4. Display the consumption situation for the total requirements.

5. Goods issue to customer of 10 pieces, R-F1##, plant 1000.

6. Display the changed stock situation and the dependent requirements

reduction.

Planning at Assembly Level (70)

Strategy 70 is a strategy you can use to plan sub-assemblies instead of the end

product.





Figure 27: Planning at Assembly Level (70)

It makes sense to plan at assembly level (strategy 70 + set mixed MRP indicator)

when processing variants if it is easier to specify a requirements forecast for

certain assemblies than it is for the variant diversity of the finished product.

With this planning strategy, planning for an assembly is considered separately.

The planned independent requirement is entered at assembly level and triggers

the production of the assembly.

If sales orders are received for the finished product, the BOM is exploded for the

finished product. Dependent requirements or reservations are also created for

the assembly as a result of planned orders or production orders for the finished

product. These consume the planned independent requirements of the assembly.

If, due to sales orders, planned orders, or production orders at finished product

level, the dependent requirements or reservations exceed the assembly’s planned

independent requirements, a planned order is created for the assembly during

the next planning run.

In Sales and Distribution, the system does not perform a check of the assembly

planning quantities.

In the strategy group of the material master record, you must enter strategy 70 and

the mixed MRP indicator must be set for assembly planning.

The consumption indicator in the item screen for the planned independent

requirements must allow consumption with reservations and dependent

requirements.





Planning at Assembly Level (70): Master Data

Remind the participants briefly of the meaning of the terms consumption mode,

consumption period, consumption indicator (consumption type):

Consumption mode, consumption interval: Maintain these in the material master

(MRP 3), or in Customizing for the MRP group parameters, or

→ Customizing: Production – Production Planning – Demand Management –

Planned Independent Requirements – Maintain Consumption Mode and Period

of Adjustment

Default values for the consumption type for each requirements class: Determine

the actual requirements (customer requirement, dependent requirement,

reservations) for consumption:

→ Customizing: Production – Production Planning – Demand Management –

Planned Independent Requirements – Default Values and Presettings – Define

Default Values for Consumption Type Per Reqmts Class

Figure 28: Planning at Assembly Level (70): Master Data

You make the strategy setting in the material master for the assembly or

assemblies. Maintain the planning strategy 70 together with the set mixed MRP

indicator in the ECC material master (MRP 3) for the assembly or assemblies. In

principle, the finished product can show any strategy.

Maintain the consumption parameters (consumption mode, forward and backward

consumption periods) in the material master.





The consumption indicator in the item screen for the planned independent

requirements must allow consumption with reservations and dependent

requirements.

If you map this strategy together with a final assembly that takes place in

make-to-order production, you must also set the individual/collective indicator to

“collective” in the material master of the assemblies.

Short explanation of the subassembly planning logic based on a numerical

example:

The motor assembly is to be installed in three different car models A, B, C.

Planning is executed for the motor: 1000 pcs in January, and procurement is

triggered.

Sales orders are received for the cars.

400 pcs for A, 500 pcs for B, 300 pcs for C.

The dependent requirements for the motors consume the planned independent

requirements; however, they exceed the planning quantity by 200 pcs.

This means: 1000 pcs can be fulfilled from the warehouse stock, and 200 pcs

still need to be procured.

Consumption in Subassembly Planning (70)

Strategy 70 is a strategy you can use to plan assemblies instead of the end product.





Figure 29: Consumption in Subassembly Planning (70)

In the first step, you create the requirement quantities expected in the future for

the assembly. You do this in Demand Management.

Sales orders at finished product level are created and planned or production

orders generated.

The resulting dependent requirements or reservations (for the assembly) consume

the planned independent requirements of the assembly.

Subassembly Planning (70): Consumption Periods

The consumption periods are calculated from the dependent requirements for

this strategy.





Figure 30: Subassembly Planning (70): Consumption Periods

Similar to ECC strategy 40, the consumption logic is determined by the

consumption mode and the backward and forward consumption periods. These are

defined in the material master for the assembly, or per plant and MRP group.

With this strategy, the consumption periods are calculated on the basis of the

dependent requirements or reservations.

Demonstration: Subassembly Planning (70)

Purpose


System Data




Password: Own passwordSet up instructions: Standard

1. Materials R-F1##, R-B1##, Plant 1000

Change the material master R-B1##:

MRP 3: Strategy group 70, consumption mode 2, consumption interval

backward and forward each 30 days, mixed MRP indicator 1

2. Create planned independent requirements: 500 pcs R-B1## for current

month + 8.





3. Execute multilevel requirements planning for R-B1##.

→ Convertible planned order was created, procurement is triggered.

4. Ensure that strategy group 30 is entered for R-F1##.

Create customer requirement for R-F1##: 100 pcs for 10th of the current

month + 8.

5. Execute multilevel requirements planning for R-F1##.

→ Planned order was created.

6. Display stock/requirements list for R-B1##.

→ Demonstrate consumption of the planned independent requirements of

R-B1## by the dependent requirements (of R-F1##).

Optional:

Customer requirement as spare part requirement for assembly R-B1##. We

assume that these spare part requirements are taken into account in the

forecast, are contained in the planned independent requirements, and are

therefore part of the consumption. For this to happen, a suitable customer

requirement type and customer requirement class must be entered in strategy

70 (for example, KSV = sales order with consumption). The corresponding

consumption type (3 = consumption against customer requirements,

dependent requirements, and reservations) must be entered in the item details

of the planned independent requirement.





47 Exercise 2: Sales Orders in Make-to-Stock

ProductionExercise Duration: 10 Minutes

Exercise Objectives


• Describe the effect of a sales order in make-to-stock production.

Business Example

Precision Pumps Inc. has produced pumps to stock using make-to-stock

production. A sales order is received. The sales order should have no influence

on planning, but should be available for information purposes. The sales order

is delivered.

Task 1:

You have executed planning strategy 10 from the start. Now create a customer

requirement in make-to-stock production and examine its effect in planning.

1. In the Demand Management menu, create a customer requirement of 10

pieces for pump R-F1##. The date should appear 4 days after the second

planned independent requirements date in the stock/requirements list.

Use the following data:

Delivering plant: 1000

Required delivery date: 4 calendar days after the

second planned independent

requirements date in the

stock/requirements list

Material: R-F1##

Quantity: 10 pieces

Confirm your entry by choosing Enter and make sure that the system

automatically defines the customer requirement type KSL in the item.

Save the customer requirement.






2. Call the current stock/requirements list for material R-F1## in plant 1000

(you can access the current stock/requirements list directly from the Demand

Management environment). You can see that the sales order is displayed forinformation purposes only but it is not relevant to planning (that is, it has

no effect on the available quantity).

a) Note the customer requirement number/item number:

__________________ / __________________________________

b) and the customer requirement quantity:

______________________________________________________

Task 2:

Now reduce the planned independent requirements by withdrawing stock for thecustomer requirement.

1. The customer appears at the sales desk and wants to collect the 10 pumps

ordered. The customer placed the order by telephone quite a while ago. You

created the sales order in the system and it is displayed in the evaluation for

information purposes, although the material ordered is from make-to-stock

production.

From the Inventory Management menu, post the withdrawal to the customer

in the form of an other goods issue (transaction Goods Issue MIGO). Carry

out the goods movement using the following parameters:

Material number: R-F1##

Quantity: 10 pieces

Movement Type: 231 (Consumption to sales order

from warehouse)

Plant: 1000

Storage Location: 0002

Confirm the data with Enter and then enter the customer requirement number

and item you noted above on the Account Assignment tab page. Save your

entries.

2. Call the stock/requirements list and examine the stock situation.

a) How has the stock situation changed?

______________________________________________________

b) Which independent requirements and sales orders have been reduced?

______________________________________________________






______________________________________________________





Solution 2: Sales Orders in Make-to-Stock

ProductionTask 1:

You have executed planning strategy 10 from the start. Now create a customer

requirement in make-to-stock production and examine its effect in planning.

1. In the Demand Management menu, create a customer requirement of 10

pieces for pump R-F1##. The date should appear 4 days after the second

planned independent requirements date in the stock/requirements list.

Use the following data:

Delivering plant: 1000 Required delivery date: 4 calendar days after the

second planned independent

requirements date in the

stock/requirements list

Material: R-F1##

Quantity: 10 pieces

Confirm your entry by choosing Enter and make sure that the system

automatically defines the customer requirement type KSL in the item.



Demand Management → Customer Requirements → Create

2. Call the current stock/requirements list for material R-F1## in plant 1000

(you can access the current stock/requirements list directly from the Demand

Management environment). You can see that the sales order is displayed for

information purposes only but it is not relevant to planning (that is, it has

no effect on the available quantity).

a) Note the customer requirement number/item number:

__________________ / __________________________________b) and the customer requirement quantity:

______________________________________________________

a) Sales order number/item number: Varies/10

b) Sales order quantity: 10 PC






Task 2:

Now reduce the planned independent requirements by withdrawing stock for the

customer requirement.

1. The customer appears at the sales desk and wants to collect the 10 pumps

ordered. The customer placed the order by telephone quite a while ago. You

created the sales order in the system and it is displayed in the evaluation for

information purposes, although the material ordered is from make-to-stock

production.

From the Inventory Management menu, post the withdrawal to the customer

in the form of an other goods issue (transaction Goods Issue MIGO). Carry

out the goods movement using the following parameters:

Material number: R-F1##

Quantity: 10 pieces

Movement Type: 231 (Consumption to sales order

from warehouse)

Plant: 1000


Confirm the data with Enter and then enter the customer requirement number

and item you noted above on the Account Assignment tab page. Save your

entries.

a) Menu path: Logistics → Materials Management → Inventory

Management → Goods Movement → Goods Issue (MIGO)

Alternatively, you can also use the transaction MIGO (goods movement

MIGO).

2. Call the stock/requirements list and examine the stock situation.

a) How has the stock situation changed?

______________________________________________________

b) Which independent requirements and sales orders have been reduced?

______________________________________________________

______________________________________________________

a) Stock reduced from 50 pieces to 40 pieces.

b) The oldest planned independent requirement has been reduced

from 25 pc to 15 pc. At the same time, the customer requirement

was reduced (from 10 pieces to 0 pieces) and no longer appears.





51 Exercise 3: Planning with Final Assembly

Exercise Duration: 20 Minutes

Exercise Objectives


• Describe how planning with final assembly strategy works

• Describe the effects of a sales order when using planning with final assembly

strategy

Business Example

Precision Pumps Inc. has produced pumps to stock. It now wants to change itsstrategy to planning with final assembly.

Task 1:

In plant 1000, you want to enter a demand program (planned independent

requirements) beginning in six months time and distributed over a period of six

months. For these 6 months of your planning, choose the planning with final

assembly (VSF requirements) strategy to plan the production of 1200 pumps. To

do this, follow the two steps described below:

1. Maintain the material master: In the material master for pump R-F1## enter

the strategy group 40 (planning with final assembly). To do this, call thetransaction Change material immediately from the production master data

with the following parameters:

Select view(s): MRP 3

Organizational levels: Plant 1000

In the strategy group field, enter the value 40 and save the material master.

2. Maintain planned independent requirements: From the Demand Management

menu create planned independent requirements for material R-F1## in plant

1000. Set the planning period to month format by entering the indicator M and Version 00 in the planning period field on the initial screen for the

transaction. Start the transaction.

Enter material number R-F1## and plant 1000 (field MPR area) on the table

screen in a new empty row. Select this row and go to the Schedule lines tab

page to access the schedule lines screen. Make sure the requirements type

VSF, which belongs to strategy 40, is set automatically by the system.






Call the Split period online function from the edit menu to instruct the

system to automatically split the production quantity of 1200 pieces over the

6 month period. Use the following data:

From: M, current month + 6

months

To: Current month + 11

months

Planned quantity: 1200 pieces

Period indicator for automatic distribution of requirements quantity: M.

Confirm (including any potential warnings) with Enter and save the

requirements.

Task 2:

1. Display the stock/requirements list for material R-F1## in plant 1000 and

note

a) the second VSF requirements date:

_________________________________

b) and the requirement quantity:

_________________________________

Task 3:


R-F1##. Use the same creation indicators as in the previous exercises. Make sure

the “Display Material List” indicator is selected. Start the planning by choosing

Enter twice. Once the MRP run has been carried out, the system displays the

statistics.

1. Choose the Material List function, select the row with pump R-F1## and goto

to the stock/requirements list of the material. You now see the planned ordersthat have been created for the requirements (refresh the list if necessary).

2. What is the available quantity for the second VSF requirement date?

_________________________________

3. What is the planned independent requirements quantity for the second VSF

requirements date?

_________________________________






Task 4:

Now enter a customer requirement of 10 pieces from the Demand Management

menu for material R-F1## in plant 1000.

1. Use the second VSF planned independent requirement date + 4 calendar

days (that is, the date you noted above + 4 days) as requirement date for the

customer requirement. Make sure the requirements type is KSV (sales order

with consumption) and save your entries.

Task 5:

Call the current stock/requirements list again (If necessary choose the Refresh

pushbutton after having called up the list) and analyze the behavior of the customer

requirement that you have just entered.

1. What difference do you see compared to the customer requirement you

created in make-to-stock production (previous exercise)?

______________________________________________________

2. What is the planned independent requirement quantity for the second VSF

requirements date in the stock/requirements list now?

______________________________________________________

Task 6:

In the stock/requirements list, select the second VSF planned independent

requirement and call the Details of element and Display element functions. In the

planned independent requirements table, select the row with the requirements

that were created last and examine the VSF planned independent requirement

quantities (as they appear on the database) on the schedule lines screen.

1. Note the requirements quantity on the date above:

______________________________________________________

2. Do the two quantities (i.e., the quantity in this question and the quantity in

the previous question) differ? If so, by how much?

______________________________________________________

Task 7:

Analyze the total planned independent requirements situation. To do this,

access the Display Total Requirements function in the evaluations for Demand

Management.

1. Which VSF requirements quantities were consumed by which customer

requirements quantities?






______________________________________________________

2. Which planned independent requirements quantities are displayed in the

stock/requirements list?

______________________________________________________

Task 8:

10 pumps from stock are delivered to the customer. Post the other goods issue.

You must enter the customer requirement number and the item number here. You

can find this number in the stock/requirements list in the VSF planning customer

requirement (planning with final assembly). You will recognize the process of

this goods movement posting from the exercise “sales orders in make-to-stock

production”, task 2.

1. How has the stock situation changed?

______________________________________________________

2. Which planned independent requirements (customer requirements/planned

independent requirements) were reduced by the goods issue from warehouse?

(From the current stock/requirements list, look at the schedule lines of the

VSF requirements on the database.)

______________________________________________________





Solution 3: Planning with Final Assembly

Task 1:

In plant 1000, you want to enter a demand program (planned independent

requirements) beginning in six months time and distributed over a period of six

months. For these 6 months of your planning, choose the planning with final

assembly (VSF requirements) strategy to plan the production of 1200 pumps. To

do this, follow the two steps described below:

1. Maintain the material master: In the material master for pump R-F1## enter

the strategy group 40 (planning with final assembly). To do this, call the

transaction Change material immediately from the production master data

with the following parameters:

Select view(s): MRP 3

Organizational levels: Plant 1000

In the strategy group field, enter the value 40 and save the material master.



2. Maintain planned independent requirements: From the Demand Management

menu create planned independent requirements for material R-F1## in plant

1000. Set the planning period to month format by entering the indicator M

and Version 00 in the planning period field on the initial screen for the

transaction. Start the transaction.

Enter material number R-F1## and plant 1000 (field MPR area) on the table

screen in a new empty row. Select this row and go to the Schedule lines tab

page to access the schedule lines screen. Make sure the requirements type

VSF, which belongs to strategy 40, is set automatically by the system.

Call the Split period online function from the edit menu to instruct the

system to automatically split the production quantity of 1200 pieces over the

6 month period. Use the following data:

From: M, current month + 6 months

To: Current month + 11

months

Planned quantity: 1200 pieces

Period indicator for automatic distribution of requirements quantity: M.






Confirm (including any potential warnings) with Enter and save the

requirements.



Task 2:

1. Display the stock/requirements list for material R-F1## in plant 1000 and

note

a) the second VSF requirements date:

_________________________________

b) and the requirement quantity:

_________________________________

a) Varies

b) Varies

Task 3:


R-F1##. Use the same creation indicators as in the previous exercises. Make sure

the “Display Material List” indicator is selected. Start the planning by choosing

Enter twice. Once the MRP run has been carried out, the system displays the

statistics.

1. Choose the Material List function, select the row with pump R-F1## and goto

to the stock/requirements list of the material. You now see the planned orders

that have been created for the requirements (refresh the list if necessary).

a) No solution required

2. What is the available quantity for the second VSF requirement date?

_________________________________

a) Available quantity on the second VSF requirements date: 0 pc3. What is the planned independent requirements quantity for the second VSF

requirements date?

_________________________________

a) Planned independent requirements quantity on the second VSF

requirements date: As above (see task 2)






Task 4:

Now enter a customer requirement of 10 pieces from the Demand Management

menu for material R-F1## in plant 1000.

1. Use the second VSF planned independent requirement date + 4 calendar

days (that is, the date you noted above + 4 days) as requirement date for the

customer requirement. Make sure the requirements type is KSV (sales order

with consumption) and save your entries.



Task 5:

Call the current stock/requirements list again (If necessary choose the Refreshpushbutton after having called up the list) and analyze the behavior of the customer

requirement that you have just entered.

1. What difference do you see compared to the customer requirement you

created in make-to-stock production (previous exercise)?

______________________________________________________

a) The sales order with requirements type KSV is relevant to requirements.

This means it affects the available quantity.

2. What is the planned independent requirement quantity for the second VSF

requirements date in the stock/requirements list now?

______________________________________________________

a) The planned independent requirements displayed in the current

stock/requirements list is 10 less than the original requirement you

noted above. The procurement element remains unaffected by this for

the time being; no new planning run was triggered.

Task 6:

In the stock/requirements list, select the second VSF planned independent

requirement and call the Details of element and Display element functions. In the

planned independent requirements table, select the row with the requirementsthat were created last and examine the VSF planned independent requirement

quantities (as they appear on the database) on the schedule lines screen.

1. Note the requirements quantity on the date above:

______________________________________________________

a) Varies (original quantity)






2. Do the two quantities (i.e., the quantity in this question and the quantity in

the previous question) differ? If so, by how much?

______________________________________________________

a) Yes, by 10 pc.

Task 7:

Analyze the total planned independent requirements situation. To do this,

access the Display Total Requirements function in the evaluations for Demand

Management.

1. Which VSF requirements quantities were consumed by which customer

requirements quantities?

______________________________________________________


Demand Management → Evaluations → Display Total Reqmts

Consumed VSF requirements quantities: The second VSF planned

independent requirement quantity is consumed by the KSV

customer requirement.

2. Which planned independent requirements quantities are displayed in the

stock/requirements list?

______________________________________________________

a) Displayed independent requirements quantities: In the currentstock/requirements list, the system displays the planned

independent requirements quantities that have not been consumed

(that is, the planned independent requirements that still exist after

consumption).

Task 8:

10 pumps from stock are delivered to the customer. Post the other goods issue.

You must enter the customer requirement number and the item number here. You

can find this number in the stock/requirements list in the VSF planning customer

requirement (planning with final assembly). You will recognize the process of this goods movement posting from the exercise “sales orders in make-to-stock

production”, task 2.

1. How has the stock situation changed?

______________________________________________________

a) New requirements situation: The available plant stock has been

reduced from 40 pieces to 30 pieces.






2. Which planned independent requirements (customer requirements/planned

independent requirements) were reduced by the goods issue from warehouse?

(From the current stock/requirements list, look at the schedule lines of theVSF requirements on the database.)

______________________________________________________

a) Planned independent requirements reduction: The customer

requirement was reduced and is no longer included in the list. The

VSF planned independent requirement was also reduced, that

is, the second VSF quantity (affected by the consumption) was

also reduced by 10 pc. These 10 pc. are recorded as a withdrawal

quantity in the planned independent requirements schedule lines.





Requirements date: Current month +2

Requirement quantity: 180 pieces

Make sure the requirements type is VSFB and the consumption indicator

is 3 in the item screen of the planned independent requirements. Save the

requirement.

Task 2:

Call the stock/requirements list for material R-B1## in plant 1000.

1. Which planned independent requirement quantity for the independent

requirement for the assembly created above is still relevant for requirements

(displayed)?______________________________________________________

2. Examine the consumption in the display of the total planned independent

requirements situation of material R-B1## in plant 1000. You can access

this screen from the Demand Management menu or directly from the

stock/requirements list. Which type of requirements consumed the VSFB

planned independent requirements and what was the quantity consumed?

______________________________________________________

3. Is the VSFB requirement covered by a procurement element?

______________________________________________________

Task 3:

Select the VSFB planned independent requirement in the current

stock/requirements list.

1. Which VSFB planned independent requirement quantity appears when you

choose Details of element and Display element ?

______________________________________________________

2. How do you explain the difference between this and the display in the list?

______________________________________________________

Task 4:

Now carry out single-item, multilevel planning for material R-B1## in plant 1000.

1. Proceed using the same transaction and settings as in the previous exercises.






Task 5:


1. Which planned independent requirement quantity for the assembly

independent requirement created above is still relevant for requirements

(displayed)?

______________________________________________________

2. Is the requirement covered by a procurement element now?

______________________________________________________





Solution 4: Subassembly Planning

Task 1:

You want to plan subassemblies in order to reduce delivery times for the pump. To

do this, you must create planned independent requirements for the assemblies for

pump R-F1## using an appropriate requirements type. We are now going to carry

out subassembly planning using assembly R-B1## in plant 1000 as an example.

1. Modify the material master for R-B1## accordingly. Enter the following

parameters in the MRP 3 view in plant 1000:

Strategy group: 70 (subassembly planning)

Consumption mode: 2 (Backward/forward)

Consumption period

Forward:

12 (working days)

Consumption period

Backward:

12 (working days)

Mixed MRP: 1 (subassembly planning)

Save the material master.



2. Enter a planned independent requirement of 180 pieces for the month

after next for material R-B1## in plant 1000. Set the planning period to

monthly by entering the indicator M in the planning period field in the initial

screen of the transaction. Use the following data:

Requirements date: Current month +2

Requirement quantity: 180 pieces

Make sure the requirements type is VSFB and the consumption indicator

is 3 in the item screen of the planned independent requirements. Save the

requirement.








Task 2:


1. Which planned independent requirement quantity for the independent

requirement for the assembly created above is still relevant for requirements

(displayed)?

______________________________________________________

a) Planned independent requirements quantities still relevant to

requirements: varies (for example, 55 pieces)

2. Examine the consumption in the display of the total planned independent

requirements situation of material R-B1## in plant 1000. You can access

this screen from the Demand Management menu or directly from the

stock/requirements list. Which type of requirements consumed the VSFBplanned independent requirements and what was the quantity consumed?

______________________________________________________

a) Consumption with the VSFB planned independent requirement:

Varies. The dependent requirements and, if necessary, the order

reservations (each for 25 pc) within the consumption periods

consume the VSFB independent requirements.

3. Is the VSFB requirement covered by a procurement element?

______________________________________________________

a) Procurement elements for the VSFB requirements: No, there is notan appropriate procurement element available as no planning run

has been carried out yet.

Task 3:

Select the VSFB planned independent requirement in the current


1. Which VSFB planned independent requirement quantity appears when you

choose Details of element and Display element ?

______________________________________________________

a) VSFB planned independent requirements quantity with Display

element: The complete quantity of 180 pc is displayed.

2. How do you explain the difference between this and the display in the list?






______________________________________________________

a) Explanation: The system only displays the non-consumed quantity

in the list. The planned independent requirements had not yet been

reduced (by a goods receipt, for example). The complete quantity

is therefore still available on the database.

Task 4:

Now carry out single-item, multilevel planning for material R-B1## in plant 1000.

1. Proceed using the same transaction and settings as in the previous exercises.



Task 5:


1. Which planned independent requirement quantity for the assembly

independent requirement created above is still relevant for requirements

(displayed)?

______________________________________________________

a) Planned independent requirements quantity displayed: This varies, as

above, for example 55 pc.

2. Is the requirement covered by a procurement element now?

______________________________________________________

a) Procurement element: Yes, the requirement is now covered by a

new planned order.





Lesson Summary

You should now be able to:• Use planning strategies for make-to-stock production





Lesson:

68

Planning Make-to-Order Production


Lesson Overview

Planning make-to-order production involves specific planning for individual

sales orders.

Lesson Objectives




Space for notes

Business Example

For some customers or sales orders, pump production planning should be

order-specific down to several BOM components.

Important make-to-order production strategies

Take a brief look at the most important strategies for make-to-order production:

Provide a short overview of pure make-to-order production (20) and planning

without final assembly (50). Both these topics will be dealt with in the following

section.

The following section also aims to explain the characteristic of the

individual/collective indicator for determining the stocking level:

1. In the material master, MRP view 4

2. In the BOM item in the explosion type field (Basic Data tab page)

3. Final setting in the BOM explosion in the planning run, dependent on the

indicator for the subordinate material




TSCM40 Lesson: Planning Make-to-Order Production

Figure 31: Important Make-to-Order Production Strategies

Make-to-Order Production: Overview

Emphasize the most important characteristics of make-to-order production

(inventory management and so on).

Figure 32: Make-to-Order Production: Overview





For make-to-order production, each sales order is planned separately and managed

in its own section in the MRP list or the current stock/requirements list.

The system does not perform a net requirements calculation between individual

sales orders or with the anonymous warehouse stock.

In make-to-order production, the lot-for-lot order quantity is used as the default

setting for the lot-sizing procedure, regardless of the entry you have made in the

material master. You define the lot-sizing procedure for make-to-order production

in ECC Customizing for MRP in the work step “Check Lot-Sizing Procedure”

in the field “Lot-Size Calculation for MTO Production”. Depending on how

the lot-size indicator is set in the material master, you can define a lot size for

make-to-order production that differs from the lot size used in make-to-stock

production.

The produced quantities cannot be exchanged between the individual sales ordersand the manufactured quantities are managed directly for the individual sales

orders (in the sales order stock).

The sales order stock and the requirement are reduced by a goods issue to the

sales order. As soon as the sales order is complete and the make-to-order stock

has been used up, the individual customer segment disappears from the current

stock/requirements list or MRP list in ECC.

Pure Make-to-Order Production (20)

The sales order is the defining element. Planning does not take place.

Figure 33: Pure Make-to-Order Production (20)





Procurement/production is triggered by the sales order when using this strategy.

Pure make-to-order production (that is, without planning of assemblies/compo-

nents) is done in ECC using strategy 20.

Pure Make-to-Order Production (20): Master Data

Together with the strategy group, the individual/collective indicator in the

assemblies is the decisive factor. The consumption parameters are irrelevant here.

Figure 34: Pure Make-to-Order Production (20): Master Data

You make the settings for this strategy in the master of the finished product

(MRP3). The individual/collective indicators for the assemblies need to be set

accordingly in the corresponding master.

Pure Make-to-Order Production (20): Example

Go through the example to present the subject of make-to-order production in a

more concrete manner.





Figure 35: Pure Make-to-Order Production (20): Example

The net requirements calculation is carried out individually for every sales order.

Stock cannot be swapped back and forth between sales orders.

The procurement elements, that is, the planned orders, are created with reference

to the sales order and are managed in the individual customer segment. This direct

reference to the sales order is also retained in the production order.

The system manages the production and procurement costs specifically for eachsales order in a settlement order or project at sales order item level.

Requirements reduction (sales order) and reduction of make-to-order stock occurs

on delivery.

Individual/Collective Indicator: Example (I)

Go through the example in order to explain the importance and effect of the

individual/collective indicator.





Figure 36: Individual/Collective Indicator: Example (I)

The individual/collective requirements indicator in the material master determines

whether a component is procured for a specific customer requirement in an

individual segment.

The ECC indicator 1 for individual requirements means that the material is being

specially manufactured or procured for a sales order. An individual segment is

specially created for each requirement. An individual requirement is only created

if the higher-level material does not generate a collective requirement.

The ECC indicator 2 for collective requirements means that the material is

produced or procured for various requirements. The requirements are contained in

the net requirements segment.

The ECC indicator left blank means that the component is planned in the same

way as the higher-level assembly (if this represents the finished product produced

in make-to-order production and also has the indicator left blank, the constraint

for make-to-order production replaces the entry with 1: 1 means individual

requirements only).

In the example above, two individual segments (for sales orders A and B) are

created for the shaft.

If you want to control the material item for each BOM individually in ECC, use

the “Explosion type” field in the component’s item data (General Data view). The

setting in the ECC BOM overrides the setting in the material master.





Individual/Collective Indicator: Example (II)

Go through the example to show the characteristics of the individual/collective

indicator in a more concrete manner.

Figure 37: Individual/Collective Indicator: Example (II)

All materials that appear under one material in collective requirements in the

BOM are planned as collective requirements (“inheritance”) irrespective of the

setting in the material master.

Demonstration: Pure Make-to-Order Production

Purpose

Preparation for exercise

System DataSystem: See weekly mail





1. Materials R-F1##, R-B1##, R-B3##

Change material master R-F1##:





MRP 3: Strategy group 20

MRP 1: MRP lot size FX / 200 pcs, although this is not really appropriate

for strategy 20

2. Create two customer requirements for R-F##:

20 pcs for the fifteenth day of the current month + 2

50 pcs for the first day of the current month + 3

3. Multilevel requirements planning for R-F1##. Display the result:

→ Two individual segments for R-F1## with lot-to-lot order quantities for

the planned orders

(Explanation: Display lot-sizing procedure in Customizing step “Check

Lot-Sizing Procedure”, indicator “MTO Lot Size” = blank ignores FXsetting in MRP type)

→ Dependent requirements for R-B1## in the collective segment (according

to Individual/coll. = 2),

→ Dependent requirements for R-B3## in the individual segments

(according to Individual/coll. = blank).

4. Convert first planned order for R-F1## to a production order.

Post a goods receipt for the order for 10 pcs (movement type 101, storage

location 0002):

→ Make-to-order stock is built up, goods movements only within thecorresponding customer individual segment.

Planning Without Final Assembly (50): Planning

Explain the meaning and effect of the planning segment and the planned orders.





Figure 38: Planning Without Final Assembly (50): Planning

As in make-to-order production, planning without final assembly (planning

strategy 50) enables you to manufacture products specifically for a customer.

However, with this planning strategy, certain assemblies should be produced or

procured before the sales order for the finished product is received. Production

does not extend at first to the finished product level. The material is produced

at manufacturing level until the point of final assembly, in other words, the

assemblies and components are kept at the warehouse until the sales order isreceived. Final assembly is only triggered upon receipt of the sales order. This

strategy is useful if a large part of the value added process occurs at final assembly.

Planning that is independent of the sales order takes place using planned

independent requirements. These planned independent requirements are created

for the finished product. In the planning run, the system first creates planned

orders for the finished product to cover these requirements. These planned orders

cannot be converted into production orders (planned orders without a conversion

indicator and the order type VP). You can only convert these planned orders into

production orders once the sales order has been received. This then triggers final

assembly. If a material shortage exists, however, the system creates planned orders

at assembly and component levels in the planning run. These planned orders canbe converted into production orders or purchase requisitions since production and

procurement should have already been triggered for the lower production levels

before the sales order is received.

The planning without final assembly strategy enables you to reduce delivery times

(since production can access existing assemblies and components without delay)

without having to carry out final assembly for the product.





Planning Without Final Assembly (50): Sales Order

Refer to the individual customer segment and the consumption situation.

Figure 39: Planning Without Final Assembly (50): Sales Order

The receipt of the sales order triggers final assembly. The sales order appears

within an individual customer segment in which planning is performed separately

for the sales order. In the next planning run, the system creates a planned order for

the newly created sales order in the individual customer segment. This planned

order can be converted into a production order. This then allows final assembly. In

the planning segment, however, the planned order quantity for the planned order

without conversion indicator (with the order type VP) is reduced in accordance

with the new requirements situation. In this strategy, the sales order is managed

in the individual customer planning segment. If this is not desired, you can also

manage the sales order in the net requirements segment (planning strategy 52).

Should you choose this procedure, you have to work with the lot-sizing procedure

“lot-for-lot order quantity”. Neither the rounding value or rounding profile nor theminimum or maximum lot sizes should be maintained. Furthermore, stocks are

not taken into account. In ECC applications, this strategy as well as the strategy

planning with a planning material are the most commonly used strategies in a

make-to-order production environment.

Example: If a planned independent requirement of 100 pieces exists and you

receive a sales order for 40 pieces which consumes the planned independent

requirements then the sales order for 40 pieces remains in the individual customer

planning segment and a planned independent requirement for 60 pieces in the





forecast segment. As soon as the product is planned again in the next planning

run, the system creates a planned order for 40 pieces in the individual customer

planning segment which you can convert into a production order. At the sametime, the system reduces the existing planned order in the planning segment from

100 pieces to 60 pieces.

Planning Without Final Assembly (50): Master Data

Refer to the individual customer segment and the consumption situation.

Figure 40: Planning Without Final Assembly (50): Master Data

Maintain the strategy group 50 (MRP 3) for the finished product and the

consumption parameters.

Maintain the individual/collective indicator 2 in the material master for the

assemblies that are to be procured and stored (supplied for storage) before the

sales order is received.

It is also possible that production, not only for the finished product, but also for

special assemblies, is only triggered upon receipt of a sales order.

Stocking Level

Explain the term and include the concept of value creation.





Figure 41: Stocking Level

If a large part of the value added process occurs at final assembly it makes sense to

use planning strategy 50 (Planning without final assembly). Here, final assembly

is not triggered until a sales order exists.

The storage level is always below the finished product level.

Flexible Determination of the Stocking Level (50)

Point out the options for “including” the stocking level in the BOM structure by

way of the individual/collective indicator.





Figure 42: Flexible Determination of the Stocking Level (50)

If the stocking level (amount up to which is produced to stock) is not generally

to be directly below the finished product within the product structure, you can

move the stocking level for certain materials: If you enter the individual/collective

indicator 1 (individual requirements only) or “blank” (individual and collective

requirement) in the material master (MRP view) for the material assembly 2,

the material assembly 2 is specifically produced for the sales order once the

sales order is received, and not produced to stock in advance (planned orderwith VP status). Only the components of material assembly 2 are procured and

stored before the sales order is received. For this example, therefore, you must

set the individual/collective indicator to 2 (collective requirements only) for the

components of assembly 2 also. The strategy group is only to be entered for the

finished product.

If you do not wish to create VP planned orders in all BOMs for a particular

material, you can assign the “Planning off” explosion control indicator in the

“Basic Data” for the BOM item. You define this indicator under “Define

Explosion Types” in Customizing for BOMs.

Planned Orders in the Planning Segment (50)

Explain the purpose of VP planned orders and their characteristics.





Figure 43: Planned Orders in the Planning Segment (50)

Capacity evaluations are possible for planned orders with order type VP.

Planned orders with order type VP can be used for external procurement,

subcontracting, stock transfer or direct production.

These orders cannot be changed manually and cannot be converted into production

orders or purchase orders.

Demonstration: Planning Without Final Assembly (50)

Purpose


System Data






1. Materials: R-F1##, R-B1##, R-B3##, Plant 1000

Change material master R-F1##:

MRP 3: Strategy group 50, consumption mode 2, consumption period

backward and forward each 30 days

2. Create warehouse stock 10 pcs for R-F1##: Goods receipt – Other – Without

Purchase order (movement type 501, storage location 0002)





3. Create planned independent requirements: 120 pcs R-F1## for current

month +2.

→ Planned independent requirements are displayed in a separate planning

segment.

4. Execute multilevel requirements planning for R-F1##.

→ R-F1##: VP planned order is created (cannot be converted to a production

order, see conversion indicator in planned order), existing warehouse stock

in the net segment is not taken into account.

→ R-B1##: Dependent requirements and convertible planned order in

collective segment (I/C=2), existing warehouse stock is taken into account.

→ R-B3##: Dependent requirement and non-convertible planned order in

planning segment (I/C=blank)

5. Create customer requirements: 11 pcs R-F1## for the fourth of the current

month + 2 and another 13 pcs for the same date.

→ Display of customer requirements in individual customer segment,

consumption with planned independent requirements.

Assembly Processing as a Special Form of Make-to-Order Production

Assembly Order

Changes in Assembly Processing

An important characteristic of assembly processing is that you can already check

the availability of the assemblies for the finished product when you create a

sales order (for make-to-order production you can only check the availability of

the finished product itself). In general, the components of the finished product

have already been manufactured.

With strategy 82, a production order is automatically created when a sales order is

created. The order type is defined in the corresponding customer requirements

class.

In the sales order, the ATP check (the determination of the quantities to beconfirmed) creates corresponding schedule lines for the order item. With strategy

82, these confirmed quantities are transferred from the production order (ATP

check of the components) to the schedule lines of the sales order.

Changes to the sales order are reflected in the assembly order, so long as these

are not partially or completely confirmed, not deleted, not blocked, and not

technically completed.





With strategy 82, creating the sales order triggers the creation of a production

order. You do not need to carry out a separate planning run. With strategy 81,

when you create a sales orders, the system creates a planned order for repetitivemanufacturing and with strategy 83, it creates a network for engineer-to-order

production.

Order processing is carried out using the tools available in production control.

Delivery is made in Sales and Distribution.

The total confirmation date depends on the date of the component which is

available last. The confirmation quantity is derived from the available quantity of

the component with the lowest confirmed quantity on the requirements date.

Assembly processing can either be carried out statically (one assembly order

per sales order item) or dynamically (several assembly orders per sales order

item). Dynamic processing enables you to execute partial deliveries. In this case,however, the direct reference to the sales order is lost.

Figure 46: Changes in Assembly Processing

Schedule lines are automatically changed in the sales order.

Changes have an effect on the assigned production order until an operation

has been confirmed or until the order header has the status deleted, locked, or

technically completed.

Demonstration: Assembly Processing: Prerequisitesand Settings

Purpose

Preparation for the following demo





System Data






1. Customer Requirements Class: Assembly Area (Important Entries):

• Assembly type: 2 = static production order

• Order type: PP04

• Availability check at component level: Yes

• Type of component check: Blank = ATP check

• Assembly dialog: 2 = Display missing parts, then edit components• Capacity check:

1. = Lead time scheduling

2. = Lead time scheduling and capacity check (capacity check only

performed if activated in the checking rules for the production

order)

• No update: Blank = Change to assembly order causes change to sales

order

2. Sales Order:

• The schedule line category in the sales order must allow requirement

creation

• (Basic date) scheduling in the assembly order and shipment scheduling

in the sales order → confirmed date = determined basic date + shipping

scheduling

3. Components:

• Define availability check by entering a corresponding checking group

in the material master for the components (can also be switched off

using the checking group “No check”).

• Set the individual/collective indicator to “collective” for the

components to be checked

Demonstration: Assembly Processing

Purpose

Illustration of the concept





System Data






1. Material master R-F1##: Enter strategy group 82 (MRP 3)

2. Material master of assembly R-B3## (I/C = blank): Checking group ZN

(no check)

3. Create planned orders manually (MD11) for R-B1## and R-B4##, today +

10 weeks, each 10 pcs.

4. Create sales order (VA01, order type TA): Sold-to party 1000, ship-to party1000, any purchase order number, sales organization 1000, distribution

channel 10, division 00, today + 6 weeks, R-F1##, 12 pcs.

→ The system automatically creates an assembly order (due to strategy

82 this is in fact a production order), on the basis of which the component

availability check is carried out. Set the scheduling of the production order

to “backward” (without time ), adopt the generated total commitment date as

the finish date;

Complete delivery, “fix date” indicator not set → the sales order retains the

required date in transaction MD04 (it should still be relevant for planning).

Only the schedule line remains on the confirmed date, the production order

has a rescheduling message.

5. Postpone the order finish date of the production order by 1 week → the

schedule line of the sales order is also postponed

(Changes made to quantities or dates in the production order will only affect

the schedule lines in the sales order.)

6. Change to the sales order quantity → new availability check: Complete

delivery, “fix date” indicator set → in transaction MD04, the sales order date

is adjusted to suit the availability date of the production order, which no

longer has a rescheduling message.





81 Exercise 5: Planning Without Final

AssemblyExercise Duration: 20 Minutes

Exercise Objectives


• Explain the process of planning without final assembly

• Monitor consumption between planned independent requirements and


• Explain the purpose and the characteristics of planned orders in the planning

segment

Business Example

To enable it to respond to sales orders faster, Precision Pumps Inc. would like to

manufacture assemblies for pumps in advance and place them in stock. Only

when a sales order is received should the pumps be assembled in make-to-order

production.

Hint: Caution! In order to gain a clearer overview in the following

exercises, delete old planning data at this point:

1. Call the current stock/requirements list for material R-F1##

(transaction MD04). Choose Details of element for a planned

independent requirement and then choose Change element. In the

table for the maintenance of planned independent requirements,

select all the rows (items) you have used and choose Delete item.

Save and refresh the list.

2. Then carry out single-item, multilevel planning for material

R-F1## in plant 1000 (transaction MD02).

3. Check the current stock/requirements list again, by calling it for

material R-F1## and, if necessary, refreshing it. Only plant stock

should be available.





Task 1:

In plant 1000, you want to create a demand program that will plan a monthly

quantity of 100 pieces in three months time. First of all, choose the planning

strategy planning without final assembly for the pump (VSE requirements,

planning without final assembly). To do this, proceed as follows:

1. Maintaining the material master: In the material master for pump R-F1## in

plant 1000, enter strategy group 50 (planning without final assembly). As

in the preceding exercises, call MRP3 view using the transaction Change

material immediately. Make the change in the corresponding field and save

the change.

2. Creating the planned independent requirements: Use the transaction Create

Planned Independent Requirements again from the Demand Management

menu for the material R-F1## in plant 1000. On the initial screen for thetransaction, set the indicator M for monthly format in the planning period

field.

On the Table screen in the row with material R-F1## in the month current

month + 3, enter a planned independent requirements quantity of 100 pieces.

Select the row and proceed to the Delivery Schedule tab page. Note the

requirements type VSE.

In the Allocation Indicator field, enter W for week quantities and confirm

this using Enter so that the allocation takes effect. Save the planned


Task 2:

Carry out a planning run for material R-F1## in the form of multilevel

single-item planning.

1. Use the creation indicator that you used in the preceding exercises. Start the

planning run by confirming twice using Enter .

Task 3:

Look at the planning results in the stock/requirements list.

1. Call the stock/requirements list for material R-F1## (plant 1000). Makesure that the planned independent requirements quantities and the planned

orders they belong to are listed in a separate planning segment.

Double-click (Additional data for element) to check whether these planned

orders can be converted into production orders and explain this:

_____________________________________________________

_____________________________________________________






2. Look at the current stock/requirements list for assembly R-B2## (the

flywheel) in plant 1000.

Are these planned orders also taken up in a planning segment? Are they

convertible? (Give a reason)

______________________________________________________

______________________________________________________

______________________________________________________

Task 4:

A customer requirement with the desired date 3 days later than the date of the

second planned independent requirement SU is received for the finished product.

1. Now enter a customer requirement of 10 pieces for material R-F1## in plant

1000 from the Demand Management menu. Make sure the requirements type

is KEV (make-to-order production with consumption) and save your entries.

Task 5:

Carry out a new MRP run for material R-F1##, plant 1000 in the form of

multilevel single-item planning.



Task 6:

Call the current stock/requirements list for material R-F1## in plant 1000 and,

if necessary, refresh the list.

1. What has happened?

______________________________________________________

______________________________________________________

______________________________________________________

______________________________________________________

2. Can the procurement element for the customer requirement be converted?

______________________________________________________





Solution 5: Planning Without Final

AssemblyTask 1:

In plant 1000, you want to create a demand program that will plan a monthly

quantity of 100 pieces in three months time. First of all, choose the planning

strategy planning without final assembly for the pump (VSE requirements,

planning without final assembly). To do this, proceed as follows:

1. Maintaining the material master: In the material master for pump R-F1## in

plant 1000, enter strategy group 50 (planning without final assembly). As

in the preceding exercises, call MRP3 view using the transaction Change

material immediately. Make the change in the corresponding field and save

the change.



2. Creating the planned independent requirements: Use the transaction Create

Planned Independent Requirements again from the Demand Management

menu for the material R-F1## in plant 1000. On the initial screen for the

transaction, set the indicator M for monthly format in the planning period

field.

On the Table screen in the row with material R-F1## in the month current

month + 3, enter a planned independent requirements quantity of 100 pieces.Select the row and proceed to the Delivery Schedule tab page. Note the

requirements type VSE.

In the Allocation Indicator field, enter W for week quantities and confirm

this using Enter so that the allocation takes effect. Save the planned




Task 2:

Carry out a planning run for material R-F1## in the form of multilevelsingle-item planning.




Multilevel Single-Item Planning






Task 3:

Look at the planning results in the stock/requirements list.

1. Call the stock/requirements list for material R-F1## (plant 1000). Make

sure that the planned independent requirements quantities and the planned

orders they belong to are listed in a separate planning segment.

Double-click (Additional data for element) to check whether these planned

orders can be converted into production orders and explain this:

_____________________________________________________

_____________________________________________________

a) Can the planned orders be converted? The planned orders in the

planning segment have the order type VP and therefore cannot

be converted or changed (there are no pushbuttons in the Detail

view for converting the planned order into a production order,

for example, and no change mode). They merely serve to create

dependent requirements at lower BOM levels.

2. Look at the current stock/requirements list for assembly R-B2## (the

flywheel) in plant 1000.

Are these planned orders also taken up in a planning segment? Are they

convertible? (Give a reason)

______________________________________________________

______________________________________________________

______________________________________________________

a) Planned orders for assembly R-B2##: Planned orders for assembly

R-B2## are not taken up in a planning segment. They have order

type LA and can be converted into production orders. The reason

for this is that the individual/collective indicator in the material

master for the assembly has been set to collective requirement. This

allows production of assemblies before a sales order is received.

Task 4:

A customer requirement with the desired date 3 days later than the date of the

second planned independent requirement SU is received for the finished product.

1. Now enter a customer requirement of 10 pieces for material R-F1## in plant

1000 from the Demand Management menu. Make sure the requirements type

is KEV (make-to-order production with consumption) and save your entries.








Task 5:

Carry out a new MRP run for material R-F1##, plant 1000 in the form of

multilevel single-item planning.



a) Menu path: Logistics → Production → MRP → Planning → Multilevel

Single-Item Planning

Task 6:

Call the current stock/requirements list for material R-F1## in plant 1000 and,

if necessary, refresh the list.

1. What has happened?

______________________________________________________

______________________________________________________

______________________________________________________

______________________________________________________

a) Menu path: Logistics → Production → MRP → Evaluations →

Stock/Requirements List

What has happened? The customer requirement received is managed

in an individual customer segment. The relevant quantity has

consumed a planned independent requirement from the planningsegment. Due to the planning run, a procurement element (planned

order) has been created. This procurement element is produced in

make-to-order production and covers the customer requirement.

In addition, the planned order quantity that belongs to the partially

consumed planned independent requirement has been adjusted.

2. Can the procurement element for the customer requirement be converted?

______________________________________________________

a) The planned order in the individual customer segment (order type

KD) can be converted into a production order.





Lesson Summary

You should now be able to:• Use planning strategies for make-to-order production






Lesson:

88

Enhancements for Demand Management


Lesson Overview

There are a range of enhancement functions available in planned independent

requirements management to ensure that the production planning process runs

smoothly and consistently.

Lesson Objectives




Space for notes

Business Example

Most of the settings for Demand Management have already been made. You have

to execute several important functions to ensure it runs smoothly.

Overview: Several Special Planning Strategies

Point out some of the less prominent strategies that will either be dealt with if

specifically requested or ignored in this course (the contents will appear in the

appendix for the participants to study in their own time. If they request a system

demonstration of some of these special strategies and you have sufficient time

left, you can use some of the examples from the Instructor Guide for the course

SCM244 (Coll. 33)).




TSCM40 Lesson: Enhancements for Demand Management

Figure 47: Overview: Several Special Planning Strategies

Numerous other planning strategies are available for planning a material.

The “special planning strategies” mentioned above can be treated as an optional

element of the course.

Planned Independent Requirements Reduction

Explain in which step the planned independent requirements are reduced.

Figure 48: Planned Independent Requirements Reduction





With strategy 59, the planned independent requirements are reduced by the goods

issue for the production order for the finished product. You must backflush the

material components.

With strategies 70 and 74, the assembly’s planned independent requirements are

reduced by the goods issue for a production order or cost center.

The corresponding movement type must allow the reduction of the planned

independent requirements. In addition, the system only reduces the planned

independent requirements for the requirements type that is controlled by the main

strategy of the strategy group assigned to the material. Planned independent

requirements for the requirements types of the alternative strategies are not usually

reduced by the material movements.

Adjusting the Planned Independent Requirements

Planned independent requirements are ignored for planning within the period of

adjustment, but remain on the database (in comparison with reorganization)!

Figure 50: Adjusting the Planned Independent Requirements

The period of adjustment determines a period in which planned independent

requirements are not taken into account in the requirements calculation, but

merely have an MRP-effect for customer requirements. However, the planned

independent requirements remain on the database (hide function).





You maintain the period of adjustment in working days in Customizing for the

MRP group. The corresponding adjustment indicator defines whether the period

of adjustment points to the past or to the future. The adjustment indicator alsospecifies whether the adjustment is valid for planned independent requirements for

all strategies or only for planned independent requirements that are planned using

a strategy in which customer requirements and planned independent requirements

are consumed.

The adjustment can be used to eradicate “planning errors”, for example. The

period of adjustment could therefore correspond to the period in which only the

customer requirements that exist up to now are to be covered, and no new ones

are expected.

Demonstration: Adjustment

Purpose

Demonstration of adjustment

System Data






1. Material: R-F1##, plant 1000

Change material master: Enter strategy group 40; MRP group 0031 should

already be entered

2. Create planned independent requirements for the current week – 4 to the

current week + 5, each for 10 pcs, either by entering them individually on

the Table tab page or using the “Split by period” function on the Schedule

Lines tab page.

3. Create customer requirements: 4 pcs for today, 7 pcs for today + 1 week, and

9 pcs for today + 2 weeks

→ Customer requirements consume the planned independent requirements.

4. The period of adjustment is set for each MRP group:

→ Customizing: Production – Material Requirements Planning – MRP

Groups – Carry Out Overall Maintenance of MRP Groups

or:

→ Customizing: Production – Production Planning – Demand Management

– Planned Independent Requirements – Maintain Consumption Mode and

Period of Adjustment





Plant 1000, MRP group 0031, “Consumption/Adjustment” button, period of

adjustment: 6 (working) days, 1 = Adjustment in the future

5. Call the stock/requirements list again – it is not enough to simply refresh

it!

→ Only the customer requirements (regardless of whether they are inside

or outside the period of adjustment) and the planned orders (outside the

period of adjustment) have an effect on requirements planning. The planned

independent requirements within the period of adjustment are displayed, but

are not taken into account in planning.

6. Multilevel planning run to confirm the result

7. Remove the period of adjustment from the MRP group and then call the

stock/requirements list once more – it is not enough to simply refresh it!

Reorganizing Planned Independent Requirements

Planned independent requirements that can no longer be reduced by customer

requirements are removed with the reorganization. This takes place in 3 steps

(with 3 transactions).

Requirements adjustment that takes place in reorganization should not be

confused with adjustment according to MRP group, whereby planned independent

requirements within a period are ignored, yet are retained on the database (see

above).

The reorganization is described in detail in SAP Note 135807.





Figure 51: Reorganizing Planned Independent Requirements

During the adjustment, planned independent requirements that lie within the

period of adjustment are simply ignored in material requirements planning but

remain on the database. The aim of reorganization is to delete old planned

independent requirements from the database.

The reorganization takes place in 3 steps:

1. “Adjust requirements” (transaction MD47): Quantities that have not beenassigned before the specified reorganization key date (this date can also be in

the future) are set to 0 and are flagged for reorganization.

2. Reorganize schedule lines (MD75): Schedule lines that have a quantity of 0

before the key date are deleted from the database.

3. Delete history (MD76): The history can be deleted by determining a (further)

key date.

As an alternative to the key date, you can maintain a reorganization period per

plant (in the Customizing for Demand Management). This is calculated backwards

from the current date.

We recommend that you carry out reorganization periodically, for example, oncea month.





Demonstration: Reorganization Compared toAdjustment, Using Data from the AdjustmentDemonstration (Optional)

Purpose

Reorganization demo

System Data






1. Setting up and carrying out reorganization:

Determine the reorganization period for each plant (number of days from

today backward, to define the reorganization date (key date)):

Customizing: Production – Production Planning – Demand Management –

Planned Independent Requirements – Define the reorganization interval

Do not maintain a reorganization interval in this demo, but rather enter the

key date for the requirements adjustment in the initial screen.

2. Adjustment (reduction) of independent requirement schedule line quantitiesat the level of the assigned (customer) requirements. If there are no

requirements assigned, the planned quantities are set to 0.

→ Logistics - Production – Production Planning – Demand Management

– Environment – Independent Requirements: Reorganization – Adjust

Requirements (MD74)

Key date: Today

Caution: Adjustment of the requirements within the reorganization

has nothing to do with the maintenance of the period of

adjustment (the adjustment simply ignores the planned independentrequirements for the net requirements calculation. These quantities

remain on the database, however. See above):

3. Deletion of all independent requirement schedule lines that have a planned

quantity of 0:

→ Logistics - Production – Production Planning – Demand Management

– Environment – Independent Requirements: Reorganization – Schedule

Lines: Reorganize (MD75)





4. Delete history (by defining another key date, such as the last day of last week)

→ Logistics - Production – Production Planning – Demand Management –

Environment – Independent Requirements: Reorganization – Delete History

(MD76)

Supplement:

Defining the creation of a history for the planned independent requirement

depending on the requirements class:

Customizing: Production – Production Planning – Demand Management

– Planned Independent Requirements – Default Values and Presettings –

Define History Settings Per Reqmts Class

If the history creation was not defined using the requirements class, you

can activate the history in the independent requirements maintenanceusing the requirements parameters. If the history creation is defined for

a requirements class in Customizing, it cannot be reversed using the

requirements parameters.

Settings for Material Requirements Planning

Settings in the material master have priority over those made in the MRP group.

These in turn have priority over plant parameters. No setting appears in all three

groups.

Figure 52: Settings for Material Requirements Planning





The Customizing settings for the requirements planning are basically controlled at

three levels:

• Material master

• MRP group (Customizing step Carry Out Overall Maintenance of MRP

Groups)

• Plant parameters (Customizing step Carry Out Overall Maintenance of Plant

Parameters)

The MRP group is an organizational object that is used to assign certain control

parameters for MRP to a group of materials. This includes the creation indicators

for purchase requisitions, schedule lines, the planning horizon, and so on. In

Customizing, you can define the MRP group with these specific control parameters

and assign the material to the corresponding MRP group in the material master

record (MRP 1 view).

If a setting is possible on several levels, the setting in the material master takes

priority over the setting in the MRP group to which the material is assigned. The

setting in the MRP group takes priority over the setting in the plant parameters.

Demonstration: MRP Settings in the Material Master,MRP Group, Plant

Purpose


System Data






1. Display material master R-F1##:

MRP 1: Explain the MRP group field

MRP 3: Display the settings for consumption (the same settings are alsopossible in the MRP group.)

2. Display MRP group 0031 in Customizing:

Consumption/adjustment: You can set up consumption in the MRP group

and you can only set up adjustment in the MRP group.

Display the planning horizon (can also be entered in the plant).

3. Display the plant parameters in Customizing:





The strategy group enables you to combine several planning strategies.

Figure 54: Strategy Groups and Planning Strategies

You can create the strategy groups in Customizing, in the work step Define

Strategy Group. A strategy group can contain a main strategy and up to seven

alternative strategies. You can also create the strategies in the Customizing for

Demand Management.

You assign the strategy group to the material in the material master record (MRP

3 view) or the assigned MRP group.

When you create the customer requirements or the planned independent

requirements, the system uses the customer requirements type or planned

independent requirements type defined in the main strategy of the strategy group

assigned to the material. You can do this provided that the requirements type is not

defined by user parameters or manual entry when creating the planned independent

requirements or customer requirements (sales order). You can determine the

requirements types that can be used for a material in the alternative strategies.

In the sales order, you can access the customer requirements type in the sales

order item in the Procurement view.

You can also determine the customer requirements type from the item type of the

sales order if no strategy group has been assigned to the material (in Customizing

Sales and Distribution, in the work step Determination of Requirement Types

Using Transaction).





Figure 55: Requirement Types and Classes

Generally, a planning strategy groups two requirements types - for planned

independent requirements and for customer requirements.

The requirements type is assigned to one specific requirements class. Therefore,

the requirements class represents a kind of “values list” for the settings of the

requirements type. This means that any changes to the requirements type are made

by way of the corresponding requirements class.

In the requirements class, you can control how the customer requirements are to

consume the planned independent requirements, for example.

The definition of the requirements class is made in the Customizing for Demand

Management for “planned independent” requirements classes and in the

Customizing for SD for “independent customer” requirements classes.

The requirements class controls functions relevant for sales order requirements

in Logistics. In the requirements class, you define the type of availability check,

whether the requirement is relevant to MRP ( No MRP field), whether consumption

is to be carried out and if so, which type ( Assignment indicator field). The exact

type of assembly processing is defined using the customer requirements type for

the corresponding sales order.

Furthermore, you can define specifications that are used in cost accounting (such

as the settlement profile for settling a requirements class).





Demonstration: Customizing: Planned IndependentRequirements Management

Purpose


System Data





Set up instructions: Standard1. Display and explain the following fields and functions in the Customizing

for Demand Management and Sales and Distribution:


Planned Independent Requirements – ......

Customizing: Sales and Distribution – Basic Functions – Availability Check

and Transfer of Requirements – Transfer of Requirements - .......

Strategy: The strategy is defined by specifying a planned independent

requirement type and a customer requirement type

Customizing: Production – Production Planning – Demand Management – Planned Independent Requirements – Planning Strategy – Define Strategy

2. Strategy group:Strategy group: Definition of main and secondary strategy


Planned Independent Requirements – Planning Strategy – Define Strategy

Group

3. Requirement types:





Strategy for determining the requirements type (from documentation)

1. First the system tries to find a requirements type using the strategy

group from the material master.

2. If the strategy group in the material master has not been maintained, the

system determines it using the MRP group.

3. If the MRP group is not defined, the system uses the material type

instead of the MRP group when accessing the corresponding control

tables (according to Martin Preiss, this is no longer relevant as it is a

relic from the transition from R/2 to R/3)

4. for the customer requirement type: If the system does not find a

requirement type here either, it assumes a special rule exists and tries

to locate a requirement type with the aid of the item category and the

MRP type.

Customizing: Sales and Distribution – Basic Functions – Availability

Check and Transfer of Requirements – Transfer of Requirements –

Determination of Requirement Types Using Transaction.

5. If this is not possible, the system makes a final attempt to find a

requirements type using only the item category.

6. If the last attempt fails, the system declares that the transaction (the

sales order item) is not relevant for the availability check and the

transfer of requirements.

4. Message output for invalid requirements type:


– Planned Independent Requirements – Requirements Types/Requirements

Classes – Message Output for Invalid Requirements Type

The check occurs against the requirements types defined in the main strategy

and secondary strategies assigned to the respective strategy group.

The way in which a requirements type works is determined by assigning

a requirements class. Changes to a requirements type occur using the

corresponding requirements class.

Independent requirements type:

→

.......Requirements Types/Requirements Classes – Define RequirementsTypes and Allocate Requirements Class

Customer requirements type:

→ .......Define Requirements Types

5. Requirements classes:

Planned independent requirements class:





→ ......Requirements Types/Requirements Classes – Maintain Requirements

Classes

Customer requirements class:

→ ......Define Requirements Classes

6. Consumption mode, consumption period: In material master (MRP 3) or

for each MRP group:



or




Default values for the consumption type for each requirements class:

Determine the actual requirements (customer requirement, dependent

requirement, reservations) for consumption:


– Planned Independent Requirements – Default Values and Presettings –

Define Default Values for Consumption Type Per Reqmts Class

7. Period of adjustment (per MRP group):



or

→ Customizing: Production – Production Planning – Demand Management



8. Reorganization interval (per plant):


Planned Independent Requirements – Define the reorganization interval





97 Exercise 6: Customizing


Exercise Objectives


• Make and check the Customizing settings for the planning strategies

Business Example

The SAP person responsible for the project verifies the settings for strategy 50

in Customizing and checks the MRP group settings.

Task 1:

In Customizing for Demand Management, check which requirement types and

classes are assigned to strategy 50 (planning without final assembly). (You can

see these settings in Customizing, in the step Define Strategy.)

Hint: You only need display authorization to do this.

Plnd. Indep. Reqmnt Customer requirements

Requirements type

Requirements class

1. For which data object (requirements class or requirements type) do you make

the individual settings to determine how strategy 50 works.

_____________________________________________________

2. Name the Customizing paths for the work steps you need to modify this data

object. Navigate to the relevant entries.

Planned independent requirement:

______________________________________

_____________________________________________________

Customer requirements:

_________________________________________

_____________________________________________________






Task 2:

When planning with strategy 50, customer requirements consume planned


1. What values do the consumption or assignment indicators have in

Customizing?

Requirements class

Consumption or

assignment indicator

Task 3:1. Which planning strategies are allowed by strategy group 50 (Planning

without final assembly)?

_________________________________________

Task 4:

Finally, take a look at an MRP group. In Customizing, display the MRP group

SCM2 (Customizing step Carry Out Overall Maintenance of MRP Groups).

1. Which strategy group is maintained for plant 1000 in the MRP group SCM2?

______________________________________________________

2. Which values have been maintained for the planning horizon and the

rescheduling horizon in this MRP group?

Planning horizon: _______________________________________

_______________________________________

Rescheduling horizon: ________________________________

________________________________





Solution 6: Customizing

Task 1:

In Customizing for Demand Management, check which requirement types and

classes are assigned to strategy 50 (planning without final assembly). (You can

see these settings in Customizing, in the step Define Strategy.)

Hint: You only need display authorization to do this.

Plnd. Indep. Reqmnt Customer requirements

Requirements type

Requirements class

1. For which data object (requirements class or requirements type) do you make

the individual settings to determine how strategy 50 works.

_____________________________________________________

a) Menu path Customizing: Production → Production Planning →

Demand Management → Planned Independent Requirements →

Planning Strategy → Define Strategy

Plnd. Indep.

Reqmnt

Customer requirements

Requirements type VSE KEV

Requirements class 103 045

Settings to activate strategy 50: You make the individual settings in

the requirements class. You then assign the requirements class to

the requirements type.

2. Name the Customizing paths for the work steps you need to modify this dataobject. Navigate to the relevant entries.

Planned independent requirement:

______________________________________

_____________________________________________________

Customer requirements:






_________________________________________

_____________________________________________________

a) Customizing path to modify the requirements classes:

Planned independent requirement: Customizing: Production →

Production Planning → Demand Management → Planned Independent

Requirements → Requirements Types/Requirements Classes →

Maintain Requirements Classes

Customer requirements: Customizing: Sales and Distribution → Basic

Functions → Availability Check and Transfer of Requirements →

Transfer of Requirements → Define Requirements Classes

Task 2:

When planning with strategy 50, customer requirements consume planned


1. What values do the consumption or assignment indicators have in

Customizing?

Requirements class

Consumption or


a) Consumption indicator or assignment indicator in Customizing: You

may gather in the Customizing step Define Strategy.

Requirements class 103 045

Consumption or


2 2

Task 3:

1. Which planning strategies are allowed by strategy group 50 (Planningwithout final assembly)?






_________________________________________

a) Planning strategies of strategy group 50:Planning strategies in

strategy group 50: As well as planning strategy 50 (standard case)

you can also use the strategies 40 and 20.

Menu path Customizing: Production → Production Planning →

Demand Management → Planned Independent Requirements →

Planning Strategy → Define Strategy Group

Task 4:

Finally, take a look at an MRP group. In Customizing, display the MRP group

SCM2 (Customizing step Carry Out Overall Maintenance of MRP Groups ).

1. Which strategy group is maintained for plant 1000 in the MRP group SCM2?______________________________________________________

a) Menu path: Customizing: Production → Material Requirements

Planning → MRP Groups → Carry Out Overall Maintenance of

MRP Groups

Strategy group for MRP group SCM2: Strategy group 40 (choose

Strategy Group in MRP group maintenance)

2. Which values have been maintained for the planning horizon and the

rescheduling horizon in this MRP group?

Planning horizon: ______________________________________________________________________________

Rescheduling horizon: ________________________________

________________________________

a) Planning horizon and rescheduling horizon:

200 working days, 200 working days (choose Planning Horizon or

Rescheduling Horizon in the MRP group maintenance screen).





Lesson Summary

You should now be able to:• Make demand management settings





TSCM40 Lesson: Basics of the Availability Check

Lesson:

103

Basics of the Availability Check


Lesson Overview

The ATP check can be done from the sales order, for example. It is not directly

connected with material requirements planning, but should be set in such a way

that it corresponds with it.

Lesson Objectives



Space for notes

Business Example

Sales orders were created and included in material requirements planning.

Afterwards, an availability check is carried out.

Availability check in SAP ECC

Depending on the strategy you use, you can carry out an ATP check or a check

against the planned independent requirements in SAP ECC. The corresponding

setting in the customer requirements class determines the choice of availability

check procedure. It is thus determined indirectly by way of the planning strategy

for the material.





Figure 56: Availability Check in SAP ECC

The availability check can be used in a number of ways. It can be used in sales

orders (but also in production orders or during goods movements). Therefore,

when you create a sales order, for example, the system uses the ATP check to

determine whether there is enough stock available in the warehouse for the

required material. The system can also check if receipts (for example, production

orders and planned orders) have already been planned by the requested date. If

the answer is yes, the sales order can be confirmed.

As well as the availability check according to ATP, forecast planning offers

another alternative (choose in the customer requirements class).

Hint: Availability Check (intended as help for the instructor)

Summarize the most important points and the possible Customizing

settings

Availability Check Using ATP Logic

The scope of the check is determined by a combination of the

checking group (material master, MRP 4) and checking rule

(application-dependent), both of which are determined in Customizing.

The total replenishment lead-time is important: In Customizing you can

define that the availability check only has to be carried out for customer

requirements within this time period.

Availability Check with Planned Independent Requirements





Customizing: Production – Material Requirements Planning –

Procurement Proposals – Planned Orders – Define Availability

Check for Components

(Table of checking rules: Description of checking rules (see above))

(Determine check: Corresponds to scope of check (see below))

Plant:Check rule for each plant

MRP group: Checking rule per plant and MRP group

• For shop floor control:

Customizing: Production – Shop Floor Control – Operations –

Availability Check – Define Checking Control: Checking rule

opened/released per plant, order type, and production order

Scope of check (combination of checking group and checking rule):

Stocks, receipts/issues, only within replenishment lead time, storage

location check, ...

Customizing: Sales and Distribution – Basic Functions – Availability

Check and Transfer of Requirements – Availability Check – Availability

Check with ATP Logic or Against Planning – Carry Out Control for

Availability Check

or


Procurement Proposals – Planned Orders – Define Availability Check

for Components: Determine Check

or

Customizing: Production – Shop Floor Control – Operations –

Availability Check – Define Scope of Check

Availability Check Using ATP Logic

Explain the ATP concept: The check takes place against fixed receipts that haveto be defined. In this course, the check takes place for the finished product

(exception: Assembly production strategies 81, 82, 83).

The scope of the check is determined by a combination of the checking group

(material master, MRP 4) and checking rule (application-dependent), both of

which are determined in Customizing (see above).

The total replenishment lead-time is important: In Customizing you can define

that the availability check only has to be carried out for customer requirements

within this time period.





An ATP check occurs dynamically, but only when you create the sales order (it

is possible to execute this again). Moreover, an ATP check is also possible for

components from planned orders and production orders (also mass availabilitycheck).

At this point, you should tell the participants about the enhanced functions of

the global ATP check in SCM APO: Cross-location + rule based check, CTP,

multilevel ATP

Figure 57: Availability Check for Sales Order with ATP Logic

When performing an availability check using ATP logic (Available-to-Promise),

the system checks whether all issues are covered by existing receipts and whether

open quantities from the receipts are still available to cover newly received issues.

These open quantities that have not yet been assigned are added together to give

the ATP quantity.

In the availability check using ATP logic, the system checks whether the

requirement quantities are covered by specially defined receipt and issue elements

or by a specific stock. If you can confirm a quantity for the requirement date,this quantity is flagged as confirmed in the requirement and the ATP quantity

of the stock or receipt for the components is reduced correspondingly. In the

next availability check, you can only confirm requirements for the amount of

the remaining ATP quantity.

The ATP quantities are not calculated across planning segments and do not take

any periods into account.





Demonstration: Planned Order ATP (Optional)

Purpose

To demonstrate the availability check for planned orders

System Data






1. Call the stock/requirements list for R-F1## in plant 1000 (## is the groupnumber that you used in the exercise for strategy 50).

2. Go to the details for the customer planned orders for the individual section.

3. Carry out the component availability check and interpret the result (quantities

and dates).

4. Evaluate the ATP quantities situation (transaction CO09)

5. Mention the conditions for transaction MDVP (collective availability check)

6. Undo any changes you may have made (for example, firming in the planned

order header and the components)

Settings for the ATP check in SAP ECC

The checking group and checking rule define what is checked. In the scope of the

check, you determine the elements that are to be included.





Figure 59: Settings for the ATP Check in SAP ECC

The checking group that is entered in the material master (MRP3 view) enables

materials to be grouped according to checking properties (Maintenance in

Customizing for SD).

You use the checking rules, which are set in Customizing for the respective

business application, to carry out different checks depending on the area of

application (sales order, production order, for example). The check can also beleft out completely.

The connection between the checking group and the checking rules is made by

entering this into the scope of check (Customizing for the application). Here

you define the stocks, issues and receipts for which the combination is valid as

check instructions.

Availability Check with Planned Independent Requirements

The check here merely takes place against planned independent requirements and

not against fixed receipts. This kind of check takes place when using strategies

50, (52), 60.





Figure 60: Availability Check with Planned Independent Requirements

In the check against planned independent requirements, the system only checks

against the open planned independent requirements quantities. This means that no

ATP quantities, receipts or stocks are included in the availability check.

The check against planned independent requirement assignments determines

whether sufficient planned independent requirements have been planned to covera customer requirement.

In this check, the system uses the consumption mode (backward consumption in

the example above) and the corresponding consumption periods.

You can usually define the type of availability check to be performed in the

customer requirements class for the strategy. When using strategy 50, you can

only carry out the availability check against planned independent requirements. In

strategy 60, when you process the sales order, you can check against the planned

independent requirements for the planning material.

Demonstration: Availability Check for Sales Orders

Purpose

To demonstrate the availability check and to prepare the exercise.

Hint: The settings for the availability check are contained in Customizing.





System Data






1. First of all, show the different types of availability checks using SAP ECC

strategies 40 (ATP logic) and 50 (check against planned independent

requirements):


Planned Independent Requirements – Planning Strategy – Define Strategy

40 -> Availability check selected (-> ATP)

50 -> Availability check deselected and assignment indicator active

(-> check against planned independent requirements)

2. Demonstrate where the availability check for sales orders is set:

Customizing: Sales and Distribution – Basic Functions – Availability Check

and Transfer of Requirements – Availability Check – Availability Check with

ATP Logic or Against Planning – ...

→ ... - Define Checking Groups

The checking group is defined here and then saved in the material master

3. Show where the availability check is controlled (assignment of checkinggroup and checking rule):

→ ... - Control the availability check

Note: Checking rules are predefined for Sales and Distribution, whereas

checking rules for the component availability check can be created from

planned orders or production orders.

Control for the availability check determines which stocks are included,

whether the check will take place with or without replenishment lead-time,

and which receipts and issues are included.

4. Show the menu path for the SAP ECC availability check for components.(Note: MRP does not detect planned orders – this is a completely different

function! This will be dealt with in the next unit):





Customizing: Production – Material Requirements Planning – Procurement

Proposals – Planned Orders – Define Availability Check for Components

• Table of checking rules

• Define check (from the SD menu)

• Plant -> Default checking rule

• MRP group -> Checking rule for MRP group






Explain the connection between material requirements planning and the

availability check.




What happens when you reject a production order that was used to confirm a

warehouse order?





Solution 7: Availability Check for Sales

OrderTask 1:

A sales employee enters a sales order for the pump (material R-F1##, plant 1000):

1. In Sales and Distribution, navigate to Sales and call the transaction for

creating a sales order.

The order is a standard order (order type OR). Enter the following

organizational data:

Sales Organization: 1000

Distribution Channel: 10

Division: 00

Sales Office: 1000

Choose Enter to call the standard order overview screen and enter the

following data here:

Sold-to party: 1000

Ship-to party: 1000

PO number: Sub_## (## = group number)

Required delivery date: 3 days later than the first VSE

planned independent requirement

for material R-F1## in plant 1000.

Material: R-F1##

Order quantity: Quantity of the VSE previous

planned independent requirement

+ 3 pc.

Choose Enter to confirm your entries and, if necessary, confirm the

information message with Enter .

a) Menu path: ECC Logistics → Sales and Distribution → Sales → Order

→ Create

2. The system displays the results of the availability check performed in the

background in a new window (if the window does not appear automatically,

you can call it yourself from the sales order using the the seventh pushbutton

from the left at the bottom of the screen).






_____________________________________________________

Do not exit the stock/requirements list.

a) Have new procurement elements been generated? No. The planned

orders for material R-F1## result from previous multi-level

requirements planning (from the last exercise). The availability

check in ECC does not itself generate new requirement coverage

elements.

5. In the first session (check dialog), ensure that the Fix date indicator is not

set. Call the F1 help for this field.

With this setting, will a sales order appear with the required delivery quantity

or the confirmed quantity in the stock/requirements list?

______________________________________________________

In the check dialog, choose Complete Delivery and then save the sales order.

a) Sales order quantity: The system displays a sales order using the

required delivery quantity and not the confirmed quantity.

6. In the second session, refresh the stock/requirements list for R-F1##, plant

1000 (F6 key). What quantity does the sales order return?

______________________________________________________

______________________________________________________

a) Stock/requirements list: The sales order returns the required

delivery quantity.

Task 2:

The customer cancels their sales order without warning.

1. Go to change mode for the sales order that you have just entered. The easiest

way to do this is to double-click the sales order in the stock/requirements list.

Make a note of the sales order number from the stock/requirements list here:

__________________________________________________

Follow the menu path: Sales Document → Delete and confirm and save

your change.

Note: You can use this simple deletion method here because there are no

follow-on documents.

a) Sales order number: This varies

2. After this deletion, are the quantities originally used in the confirmation

available for other sales orders?






Lesson Summary

You should now be able to:• Carry out ATP checks for sales orders




TSCM40 Unit Summary

Unit Summary














Unit Summary TSCM40




TSCM40 Test Your Knowledge

119Test Your Knowledge

1. Which of the following parameters are determined by the planning strategy?

Choose the correct answer(s).

□ A Planned independent requirement type

□ B Order type (production order or process order)

□ C Customer requirement type

□ D Procurement type

2. Changes to the planning situation automatically result in a new ATP

availability check .

Determine whether this statement is true or false.

□ True

□ False




Unit 4: Executing Material Requirements Planning TSCM40

Single-item planning affects only one particular material and is therefore suitable

for planning critical resources, for example. There are various ways in which

you can influence the planning result interactively. One of these possibilities issingle-item planning in simulation mode, which makes it possible to analyze and

execute multilevel planning for a particular material.

Finally, you need to prevent a planned result from being influenced by material

requirements planning. You can use firming to do this.

Unit Objectives


• Explain the principle of multilevel requirements planning

• Go through the principle of external procurement and the document flow• Make the necessary settings in Customizing

• Make the necessary settings in the master data

• Trigger single-item planning

• Trigger total planning

• Interpret the planning file

• Execute the MRP run in simulation mode

• Firm a planned order in different ways

• Use firming in requirements planning

Unit Contents

Lesson: Overview and Concept of MRP. .. .. .. .. ... .. .. ... .. ... .. .. .. .. ... ..159Lesson: Prerequisites for MRP ...............................................164

Demonstration: Prerequisites for MRP .................................. 165Demonstration: Material Status (Optional) .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 166

Lesson: Setting and Executing the MRP Run...............................172

Demonstration: Executing the Planning Run .. .. .. .. .. .. .. .. .. .. .. .. .. .176Demonstration: Low-Level Coding ... .. .. .. .. ... .. .. ... .. ... .. .. .. .. ... ..177Demonstration: ECC Planning Horizon..................................181

Demonstration: Planning File .. .. .. ... .. .. .. .. ... .. .. ... .. ... .. .. .. .. ... ..185

Demonstration: Demonstration: Planning File Continued............. 186Demonstration: Options in Interactive Planning........................ 189Demonstration: Simulative MRP .........................................194Exercise 8: Planning File .... ... ... ..... ... ... .... ... .... .... ... ... ... ..... 197Exercise 9: Simulative MRP .. ... .... .... ... ... .... .... ... .... ... ... .... ..207

Lesson: Firming .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .217

Demonstration: Firming Settings ... ... .. .. .. ... .. .. ... .. ... .. .. .. .. ... ..223Demonstration: Firming a Planned Order .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .224Exercise 10: Firming .......................................................227


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Figure 61: Principles and Results of MRP

Material requirements planning takes current and future sales as its reference

point. The planned requirement quantities trigger the MRP calculation. In MRP,

the requirements elements include sales orders, planned independent requirements,

material reservations, the dependent requirements created by exploding the BOM,

and so on.

If the MRP run determines shortage quantities, the system creates procurement

proposals: Purchase requisitions and planned orders are internal planning elementsthat can be changed, rescheduled, or deleted at almost any time.

With in-house production, the system creates planned orders for planning the

production quantities. When planning is complete, planned orders can be

converted into production orders.

With external procurement, the system either uses a planned order or uses a

purchase requisition directly to plan the external procurement quantity. When

planning is complete, the planned order is converted into a purchase requisition,

which is subsequently converted to a purchase order. Using the creation indicator

for purchase requisitions on the initial screen of the planning run, you control

whether the system immediately creates purchase requisitions directly, or first

creates planned orders.

If a scheduling agreement exists for a material and is relevant for MRP in the

source list, you can also create schedule lines directly using MRP. You control this

using the creation indicator for scheduling agreement delivery schedule lines on

the initial screen of the planning run.




TSCM40 Lesson: Overview and Concept of MRP

The creation indicators defined on the initial screen of the planning run are

valid for single-level and multilevel single-item planning. The indicators can be

changed during total planning and are overridden, if required, by the creationindicator defined for each plant and MRP group in Customizing.

Multi-level material requirements planning

Explain the difference between single-level and multilevel (single-item) planning.

Explain the terms independent and dependent requirements. Point out that the

dependent requirements are not bound directly to the independent requirements.

Figure 62: Multi-Level Material Requirements Planning

With in-house production, the system creates planned orders for planning the

production quantities. In multilevel production, that is, when a finished product

is made up of assemblies or components, the corresponding assembly group

requirements are mapped by way of dependent requirements.

Dependent requirements enter the MRP for the assembly as requirements. This

ensures timely staging of the assemblies.When planning is complete, planned orders can be converted into production

orders. When this is done, the system transforms the dependent requirements of

the planned order into production order reservations.









Is the use of multi-level MRP for in-house production practical? Is it practical

to use it for external procurement? Is there a case where it makes sense to use

single-level planning for in-house production?




TSCM40 Lesson: Prerequisites for MRP

Figure 63: Prerequisites for MRP

In the Customizing activity “Activate MRP and Set Up Planning File”, you can

specify for which plant an MRP run is to be carried out by activating material

requirements planning. You can only make entries in the planning file once this

indicator has been set, which means that:

• When a material that is relevant for MRP is created, the system copies the

material number to the planning file and flags it for planning,• Whenever a change relevant to MRP is made, the system flags the material

for planning.

If materials were created before the MRP run for a plant was activated, you must

create an entry in the planning file for all MRP-relevant materials in this plant.

This function can only be executed in background processing. You trigger this

function in the work step Set up planning file in the Customizing activity Activate

MRP and Set Up Planning File, which you can call directly from the MRP menu.

If these conditions are fulfilled, materials already in the planning file can be

excluded from the MRP run using the MRP type in the material master (for

example, by using the MRP type ND).In addition, you can lock a material using the material status for MRP or generate

a warning regarding materials planning.

Demonstration: Prerequisites for MRP

Purpose





TSCM40 Lesson: Prerequisites for MRP

You can use this relationship, for example, when you access specific material

groups (for example, in the context of targeted planning) and for evaluations.

Controller

Display:

1. The MRP controller assignment in the material master

2. The definition of the MRP controller in Customizing for requirements

planning









Explain the function of activating material requirements planning in Customizing

(“pure MM” can also be useful without material requirements planning).

Understand how material entries are created and updated in the planning file.





Lesson:

132

Setting and Executing the MRP Run


Lesson Overview

There are various options available for carrying out the MRP run.

Lesson Objectives




• Interpret the planning file• Execute the MRP run in simulation mode

Space for notes

Business Example

You can use different methods to execute the MRP run.

Setting and Executing the MRP Run

Executing Material Requirements Planning

You can execute MRP as total planning not only at plant level, but also more

generally in the planning scope (see the following slides.) If MRP areas are

activated, plant planning means planning in the plant MRP area.

To set up the user exit in the total planning run, you can refer to SAP Note 208025.




TSCM40 Lesson: Setting and Executing the MRP Run

Figure 66: Executing Material Requirements Planning

You can execute the planning run at two levels: As total planning for a plant or

for an individual material. You can execute a total planning run for several plants

and/or MRP areas (planning scope).

You can execute a single-item planning run for one BOM level only (single-level)

or for all BOM levels (multi-level). Interactive planning of a material is also

possible.

Multilevel single-item planning can also be executed for a Sales and Operations

Planning (SOP) product group.

You can execute total planning online or as a background job.

Total planning for a plant encompasses all MRP-relevant materials for this plant

and includes the BOM explosion for materials with BOMs.

From the MRP menu, you can execute total planning online or as a background

job. To execute the total planning run as a background job, select a report variant

to restrict it to the relevant plant, and schedule the job.

You can use a user exit to restrict the total planning run to materials that fulfill

certain freely definable criteria. For example, you can select all materials for

which a particular MRP controller is responsible.

Cross-Plant Total Planning

• Planning scope as summary of plants/MRP areas in a particular planning

sequence, taking into account mutual dependencies (for example, stock

transfers).

• Planning with planning scope only with parallel processing

Refer at this point to planning with MPR areas (unit 6).





Parallel Processing in the Planning Run

Customizing: Production – Material Requirements Planning – Define Parallel

Processing in MRP

or

Logistics – Production – MRP – Environment – Current Settings – Define Parallel

Processing in MRP

Division of the planning run between various sessions on an application server

or between various servers: Each low-level code is divided into work packages,

which are processed by different sessions or servers. A low-level code is only

processed once all the work packages for the previous one have been completed.

Target: Improving performance, robustness

Figure 68: Parallel Processing in the Planning Run

When planning with planning scope, you must set the Parallel Processing

indicator in the planning run.

Parallel processing means that the planning run is divided into several independent

work packages that run parallel to each other in different sessions. You define the

sessions in the Customizing activity Define Parallel Processing in MRP. You can

access this activity directly from the MRP menu.





Figure 69: Low-Level Coding

The low-level code is the lowest level at which a material appears in any BOM

structure. The low-level code of a material is always higher than the low-level

code of all its predecessors in all the BOM structures.

The low-level code controls the planning sequence: The system plans the

materials with low-level code 0 first, then those with low-level code 1 and so on.

All materials are thus planned in the correct sequence in a planning run.

The low-level code is calculated and saved at client level during BOM

maintenance. You can display the low-level code in the material master from the

MRP 1 view by choosing Information on material or in the planning file entry,

provided that an entry for that material exists in the planning file.

Demonstration: Low-Level Coding

Purpose

Preparation for the exercise

System Data










1. Display the low-level code of a material in the material master (using the

blue pushbutton, “Information on material” from one of the material master

views) and in the planning file (transaction “Planning File Entry - Display”from the MRP menu): New materials with valid MRP types are included

in the planning file and receive the low-level code 999, until they can be

included in a BOM as a header or an item.

Possible question for the participants about low-level codes: Is multi-level

planning equivalent to the sum of single-item planning? Answer: Yes, if you

follow the sequence of the low-level codes exactly.

MRP Control Parameters

The indicators for creating purchase requisitions, scheduling agreements, and MRP

lists can be defined in the initial screen for the planning run and in the MRP group.

Important note on the creation indicator for each MRP group:

Customizing: Production – Material Requirements Planning – Planning – Define

Creation Indicator

The following applies for the total planning run:

The creation indicators that are specified in the initial screen at the start of a

planning run merely serve as proposals. They are only valid if the system does not

find a creation indicator in the MRP group.

For single item planning (single-level and multi-level) the following applies

Only the settings on the initial screen apply here. The Customizing settings

have no effect. (This rule is valid for both single-level and multi-level planning,

although in the case of multi-level planning, as for total planning, several materials

are addressed in the planning run that may have settings in their MRP group.)

The planning mode that was set in the planning file for a material may be

overridden by the planning mode in the initial screen of the planning run. The

planning mode controls how procurement proposals from the previous planning

run that are not firmed should be dealt with in the next planning run.





Scope of planning run

Restricting the planning run and using the net change procedure avoids

performance problems: You should not plan more materials then necessary.

The net change planning procedure (NETCH) only takes materials that have

undergone a planning-relevant change since the last planning run. This is

controlled in the planning file.

By defining a planning horizon, you also delimit the planning scope in terms of

time (NETPL). The planning horizon should at least span the time period in which

sales orders are received, and, furthermore, contain the delivery and total lead

times for the material.

You should only choose complete planning (NEUPL) in exceptional cases or if there are data inconsistencies.

(You cannot, of course, use NEUPL in single-item planning!)

Figure 71: Scope of Planning Run

With regenerative planning, the system plans all the materials in a plant. Thisis useful for the first planning run and also during day-to-day operation of the

plant if data consistency cannot be guaranteed due to technical errors. During

the day-to-day operation of a plant, it usually makes sense (particularly with a

large number of materials) to execute MRP for only those materials which have

undergone MRP-relevant changes (for example, due to goods issues, new sales

orders or changes to the BOM structure). Due to it short runtime, net change

planning (which is used to plan only these materials), allows you to execute the

planning run at short intervals, so that you always have the current planning result.

With net change planning in the planning horizon, the system only takes into





account changes that are within the planning horizon. The system only plans

materials to which an MRP-relevant change has been made within the planning

horizon. In addition, the materials are only planned within this horizon. You setthe planning horizon as a plant or MRP group parameter in MRP Customizing.

The planning horizon should include at least the time period in which sales orders

are received. The delivery times and total lead times for the material should also

be contained in this horizon. You specify the type of planning run to be used in the

“Processing Key” field on the initial screen. With single-item planning, you can

only choose between net change planning (NETCH) or net change planning in the

planning horizon (NETPL). With total planning, you can also select the NEUPL

key to determine that all materials in the planning file are to be planned.

Demonstration: ECC Planning Horizon

Purpose


System Data






1. You can find the planning horizon in three places in SAP ECC Customizing:

For each plant:

Customizing: Production – Material Requirements Planning – Plant

Parameters – Carry Out Overall Maintenance of Plant Parameters

2. For each MRP group:

Customizing: Production – Material Requirements Planning – MRP Groups

– Carry Out Overall Maintenance of MRP Groups

or:

Customizing: Production – Material Requirements Planning – Planning – MRP Calculation – Define Planning Horizon

Hint: Take account of SAP Note 162728. This explains why the

MRP group value should not be read for performance reasons.





No planning file entry is created for the following changes:

• Changes in Customizing, for example changes to the purchasing department

processing time in the plant parameters

• Changes relevant to planning in the routing (for example, a change to the

standard time, change to the component assignment); you can overcome

this functional gap by setting this indicator manually following a change to

a routing or the in-house production time, or by executing a planning run

with planning mode 2 or 3).

You can define whether to retain or delete the planning file entries following a

termination of the planning run in the following Customizing activity:

Customizing: Production – Material Requirements Planning – Planning – MRP

Calculation – Define Error Processing in the Planning Run

Figure 72: Planning File and MRP (1)

The planning file contains all of the materials relevant to MRP for each plant.

Net change planning only plans those materials that have been subject to a change

relevant to MRP. Changes relevant to MRP lead to a planning file entry being

created specific to the plant and material. Examples of MRP-relevant changes

include changes to the procurement type, changes to the operation times, and also

creation of sales orders, dependent requirements, stock changes, and so on.

The respective entries in the planning file are made automatically by the business

application of the system. They can, however, also be made manually from the

MRP menu in individual cases. (When doing this, you should remember that a

change in the routing does not automatically cause an indicator to be set in the

planning file.)





The planning horizon is maintained in Customizing for MRP as a plant parameter

or for each MRP group.

You can define whether a planning entry is to be retained or deleted if a

termination should occur while planning a material. You can do this in the IMG

activity “Define Error Processing in the Planning Run” in Customizing for MRP

calculation by choosing “Del. planning flag”. This determines whether or not the

material is taken into account in the next planning run.

Demonstration: Planning File

Purpose


System Data






1. Material: R-F130 in plant 1000

Hint: Creating the customer requirements in this

demonstration/exercise is a prerequisite for the

demonstration/exercise for MRP in simulation mode.

Create the customer requirement outside the planning horizon: Today + 6

months, 50 pcs → NETCH set

2. Create a customer requirement within the planning horizon: Today + 1

month, 60 pcs → NETPL also set

3. Single-item, multilevel planning with processing key NETPL → NETPL

reset, planning only within the planning horizon

4. Single-item, multilevel planning with processing key NETCH → NETCH

reset, planning also beyond the planning horizon

5. BOM change: Specify “2” for R-B430 in BOM R-F130 in plant 1000;

NETCH, NETPL, Explode BOM set

6. Single-item, multilevel planning with processing key NETCH → NETCH,

NETPL, BOM explosion reset





7. Enter safety stock of 50 pcs in material master R-B430 → NETCH, NETPL

set in planning file for R-B430.

Demonstration: Demonstration: Planning FileContinued

Purpose


System Data

System: See weekly mailClient: See weekly mail




1. You should also demonstrate and explain how to make a planning file entry

manually (transaction “Create planning file entry” in the menu for MRP).

Planning file

entry:

NETCH NETPL OP reset BOM

explosion

Set indicators individually for R-F1##:

NETCH X

NETPL X X

Reset OP X

Re-explode

BOM

X

Finally, execute single-item multilevel planning to reset the indicators.

You could also show: Material R-F1##:

Create the planned independent requirement outside the planning horizon:

Today + 12 months, 5 pcs → NETCH set, in assembly R-B1## NETCH

not set

2. Single-item, single-level planning for R-F1##

→ NETCH reset, NETCH now set in the assembly R-B1##





In multi-level planning, the indicators on the subsequent structure levels are

not set in the MRP planning file, but dynamically in the program.

Net Change Planning in the Planning Horizon

If only NETPL is used: The drifting of a requirement into the planning horizon is

not an MRP-relevant change. Solution: Carry out NETCH (complete time-axis)

regularly in addition to NETPL (net change planning in the planning horizon);

Or: “Plan Regularly” indicator in the MRP type together with the “Maximum

MRP Period” per MRP group.

Figure 74: Net Change Planning in the Planning Horizon

You can only restrict material requirements planning to the planning horizon if it

is necessary to accelerate MRP for performance reasons. Only those requirements

within the planning horizon are then covered by goods receipts. If you onlyexecute net change planning in the planning horizon, the system does not plan

those requirements that are outside the planning horizon.

It is important to note that, as time lapses, requirements may fall into the planning

horizon that have not yet been covered by goods receipts. As long as no other

changes relevant to MRP are made, these requirements will not be covered until

the next planning run for the whole time axis (NETCH indicator). This kind of

planning run should therefore be carried out on a regular basis.





A further possibility for dealing with the problem shown in the slide is to set the

Regular MRP indicator in Customizing for the MRP type of the material and to

also maintain the maximum MRP interval in the MRP group. An entry for the nextplanning date is generated automatically in the planning file. The material is

automatically included in MRP by the time the MRP date has been reached at the

latest, irrespective of the other settings in the planning file.

In order to be able to plan the changes outside the planning horizon, you must

carry out net change planning at larger intervals.

Figure 75: Executing the Planning Run Single-Item, Single-Level

During single-item, multilevel planning, the system explodes the material’s

BOM and creates and plans the dependent requirements of the assemblies and

components. If the components also have BOMs, these are also exploded and

the components are planned. This is repeated until all BOM levels have been

exploded. All materials are planned according to the parameters entered in the

initial screen of single-item, multilevel planning. Planning is carried out as

top-down planning. During multilevel planning, the MRP controller has the

option of displaying and manually changing the planning result of assemblies or

components before planning is resumed.

During single-item, single-level planning, the system generates dependent

requirements for materials at the next BOM level. “Single-item, interactive

planning” is available as a variant in which the system displays the current

planning situation before the planning run can be triggered manually.

You can check and process planning results for single-item, single-level, or

multilevel planning before saving them ( Display results before they are saved

indicator in the initial screen). The MRP controller is able to create, change,

delete, and reschedule procurement proposals before planning is resumed.





You can use the evaluation tools to easily identify the procurement proposal which

caused the time delay or exception message.

You initiate simulative planning by selecting the Simulation mode field in addition

to the usual parameters on the initial screen for single-item, multilevel planning

and choosing Enter twice.

In simulative MRP, the system stores all of the procurement proposals from the

whole BOM structure in the main memory. The planning results can be checked

and changed by the MRP controller. You also have the option of carrying out

planning again without having to leave and re-enter the transaction.

Figure 79: MRP in Simulation Mode (3)

You can analyze scheduling problems in simulative MRP by looking at the delay.

The delay for planned order 3 of the finished product shows the number of days by

which the procurement chain must be moved into the future, so that the start dates

of all the planned orders for the assemblies and components do not lie in the past.

The delays are calculated for each element as the time that the element is behind

with regards to the start date of the superior element in the BOM. The delay forthe procurement chain is the total of these individual delays. In our example,

the delay is 8 days.

Delays stemming from the planned order for the finished product are not taken

into account. These delays only come about if the correct start date for the planned

order, in relation to the requirements date, already falls in the past and there is

already a corresponding exception message for this order.





Planning indicator NETCH ____

Planning indicator NETPL ____

BOM explosion ____

Task 3:

Analyze the effect of an MRP-relevant change to the material master. In the last

step, you executed a multilevel planning run. You have therefore planned all

the components.

1. Now select the planning file entry for assembly R-B4## in the plant. Which

of the following indicators are set?



BOM explosion ____

2. Change the material master for the material R-B4## in plant 1000 by

entering 50 pcs as safety stock in the view MRP 2. Save the material master.

Then select the planning file entry for R-B4## in plant 1000. Which of the

following indicators are set?



BOM explosion ____





Planning indicator NETCH ____ Planning indicator NETPL ____

BOM explosion ____



Indicators set:

Planning indicator NETCH No Planning indicator NETPL No

BOM explosion No

4. Enter an additional customer requirement as follows:

Material: R-F1##

Plant: 1000

Requirements date: Today +1 month (date in day format)

Quantity: 60 pieces

Then select the planning file entry for R-F1## in plant 1000. Which of the

following indicators are set now?


BOM explosion ____

a) Indicators set:

Planning indicator NETCH Yes Planning indicator NETPL Yes

BOM explosion No

5. Execute multi-level requirements planning as net change planning for

material R-F1## in plant 1000. Use processing key NETPL. Then select

the planning file entry for R-F1## in plant 1000.

Which of the following indicators are set now?


BOM explosion ____

Give a reason for the result:

______________________________________________________






Confirm with Enter. Save the BOM changes.

a) Logistics → Production → Master Data → Bills of Material → Bill of

Material → Material BOM → Change

2. Check the effect of this change to the BOM on the planning file entry.

Which of the following indicators are set now?



BOM explosion ____

a) Indicators set:

Planning indicator NETCH Yes

Planning indicator NETPL Yes

BOM explosion Yes

3. Carry out multilevel requirements planning for material R-F1## in plant

1000 again with the processing key NETCH and check the result again in

the planning file.



BOM explosion ____

a) Indicators set:

Planning indicator NETCH No

Planning indicator NETPL No

BOM explosion No

Task 3:

Analyze the effect of an MRP-relevant change to the material master. In the last

step, you executed a multilevel planning run. You have therefore planned all

the components.

1. Now select the planning file entry for assembly R-B4## in the plant. Which

of the following indicators are set?








159 Exercise 9: Simulative MRP


Exercise Objectives



• In particular, analyze situations with scheduling problems due to the delay

and implement measures to correct the problem in simulation mode.

Business Example

As a member of the project team, you familiarize yourself with the functions of simulative material requirements planning.

Task 1:

In the previous exercise, you created and planned a customer requirement of 60

pieces of the pump R-F1## for the date today + 1 month. This means that you

fulfilled the requirement with a planned order.

Hint: If you did not carry out the previous exercise on the planning file

entry, create the above mentioned customer requirement now (make sure

that the requirement type is KEV) and then execute multi-level planning.

Note the change in the stock/requirements list:

1. Make a note of the customer requirement number:

______________________________________________________

2. Write down the number of the corresponding planned order:

______________________________________________________

Task 2:

Analyze the planned order as far as the dates are concerned.

1. Was the planned order for the customer requirement created on time?

______________________________________________________

(Note that the availability date of a planned order always falls on a working

day, which is not necessarily the case for the customer requirements date.)

2. What is the start date of this planned order?






______________________________________________________

What consequences does this have for procuring the components for this

planned order?

_____________________________________________________

3. Execute the order report function from the stock/requirements list for

this planned order. Based on this evaluation, do you foresee problems in

fulfilling the sales order?

_____________________________________________________

Task 3:

Now execute single-item, multi-level planning in simulation mode for material

R-F1## in plant 1000. To do this, select the Simulation mode indicator in theMRP initial screen.

1. Make sure that the indicator Also Plan Unchanged Components is set, and

that you use planning mode 3 in this case.

Start the planning run by choosing Enter twice.

Hint: Do not exit the transaction.

Task 4:

Evaluate the planning results: After you have executed multilevel requirements

planning, display the planning results on the material overview screen.

Select the planning result for finished product R-F1## by choosing the function

1st material.

1. Examine the planned order in the individual customer segment that you

already analyzed above. Is a delay displayed for this planned order?

______________________________________________________

By how many working days is the planned order delayed due to the lower

level assemblies and components?

____________________________________________ working days

2. Select the planned order and click on the order structure button. Select the

planned order and choose the Expand Subtree button. Note down the two

procurement elements that cause the longest delays in the following table:






Solution 9: Simulative MRP

Task 1:

In the previous exercise, you created and planned a customer requirement of 60

pieces of the pump R-F1## for the date today + 1 month. This means that you

fulfilled the requirement with a planned order.

Hint: If you did not carry out the previous exercise on the planning file

entry, create the above mentioned customer requirement now (make sure

that the requirement type is KEV) and then execute multi-level planning.

Note the change in the stock/requirements list:

1. Make a note of the customer requirement number:

______________________________________________________

a) Customer requirement number: Varies

2. Write down the number of the corresponding planned order:

______________________________________________________

a) Planned order number: Varies

Task 2:

Analyze the planned order as far as the dates are concerned.

1. Was the planned order for the customer requirement created on time?

______________________________________________________

(Note that the availability date of a planned order always falls on a working

day, which is not necessarily the case for the customer requirements date.)

a) Planned order on time: Yes, the planned order was created on time.

If the customer requirements date lands on a holiday or a weekend,

the planned order will have an availability date that is before the

customer requirements date.

2. What is the start date of this planned order?

______________________________________________________

What consequences does this have for procuring the components for this

planned order?






_____________________________________________________

a) Planned order start date: Varies, about one week after the current

date.

Consequences for procuring the components: The time available for

procuring the components is very tight. If the components are not

already in stock, there could be problems meeting the order date.

3. Execute the order report function from the stock/requirements list for

this planned order. Based on this evaluation, do you foresee problems in

fulfilling the sales order?

_____________________________________________________

a) Problems foreseen: Yes, problems can be expected.

Procurement of the subordinate components occurs with

procurement elements that contain exception messages.

Task 3:

Now execute single-item, multi-level planning in simulation mode for material

R-F1## in plant 1000. To do this, select the Simulation mode indicator in the

MRP initial screen.

1. Make sure that the indicator Also Plan Unchanged Components is set, and

that you use planning mode 3 in this case.

Start the planning run by choosing Enter twice.

Hint: Do not exit the transaction.



Task 4:

Evaluate the planning results: After you have executed multilevel requirements

planning, display the planning results on the material overview screen.

Select the planning result for finished product R-F1## by choosing the function

1st material.

1. Examine the planned order in the individual customer segment that you

already analyzed above. Is a delay displayed for this planned order?

______________________________________________________

By how many working days is the planned order delayed due to the lower

level assemblies and components?






____________________________________________ working days

a) Delay: Yes, a delay is displayed.

Length of the total delay of the planned order: Varies, around 15

working days.

2. Select the planned order and click on the order structure button. Select the

planned order and choose the Expand Subtree button. Note down the two

procurement elements that cause the longest delays in the following table:

MRP element Number of MRP

element

Material Delay (working

days)

Return to the display of the Planning results: Individual lines for material

R-F1##.

Hint: Do not leave the transaction.

a) Longest delay:

MRP element Number of

MRP element

Material Delay (working

days)

PLOrd Varies R-B3## Varies, around15 days

PLOrd Varies R-B4## Varies, around

11 days






Task 5:

Now reschedule the planned order into the future: Select the planned order you

examined and choose the Reschedule procurement proposal button. Using the

displayed (availability) date of the planned order, postpone the planned order

by the number of working days that was displayed as the delay time for the

planned order (see above). Enter the appropriate new order finish date for the

planned order in the new field.

Hint: To help you do this, you can use F4 and the plant calendar in the

ReschDate field. The new end date is calculated as previous end date +

delay time of planned order, calculated in working days.

Make sure that you do not use the current date as the starting point for

rescheduling by mistake.

1. Make sure that the planned order is firmed. To do this, display the detail

screen for the relevant planned order by calling it from the list. Check

whether the indicator is set in the Firmed field. Return to the list by choosing

the Copy procurement proposal button.

Hint: Do not leave the transaction.


Task 6:

Display the stock/requirements list for material R-F1## in plant 1000 in a

parallel session.

1. Is the changed end date displayed for the planned order that you have just

edited?

________________________________________________________


________________________________________________________

a) Modified end date: No, the new date is not displayed.

Reason: Simulative requirements planning occurs in the main

memory. As long as the planning run is not saved, the data in the

database remains unchanged.






Task 7:

You should now execute planning for the planned order again: The assemblies

and components that lie below the planned order that you have rescheduled, have

not yet been planned.

Return to the session with the simulation results. Select the planned order that you

have just processed and choose Execute planning run.

1. By how many working days is the planned order now delayed due to the

assemblies and components?

____________________________________________ working days

a) Total delay now: 0 working days

2. Save the planning result (and exit the transaction).


Task 8:

Call up the stock/requirements list for material R-F1## in plant 1000 again

(if necessary, refresh the list).

1. Is the modified end date now displayed for the planned order you just edited?

____________________________________________________________


____________________________________________________________

____________________________________________________________

a) Modified end date now displayed: Yes, the modified end date is now

displayed.

Reason: When you save the planning run, the planning results are

saved to the database.

Task 9:

Then call the stock/requirements list for R-F1##, plant 1000 and execute the

“order report” function for this planned order.

1. Do the assemblies and components still show rescheduling messages?

____________________________________________________________

a) Rescheduling messages for assemblies and components: No

(Only the exception message “Opening date in the past” appears)




TSCM40 Lesson: Firming

Lesson:

169

Firming


Lesson Overview

When you firm planned orders you can protect a master production schedule from

changes that are made automatically during material requirements planning.

Lesson Objectives




Space for notes

Business Example

No more planning is to take place in the short term. To ensure this, the planned

orders are firmed.

Firming

Firming: Philosophy

Firming is possible for both MRP parts (P MRP type) and for master schedule

items (M MRP type).

Mention that master schedule items will be dealt with in the last chapter.





Figure 82: Firming: Philosophy

You can use the firming period to protect the master production schedule for

master schedule items (in the MPS run) and for non-master schedule items (in the

MRP run) from being changed automatically in the near future and therefore

stabilize planning. Within the firming period, which is defined individually for

each material, procurement proposals are no longer changed automatically during

the MRP run.

You should define the firming period on the basis of the total lead time of the

material.

In the above example, the order finish date of the planned order, E1, lies one day

before the end of the firming period. The system therefore treats it as firmed

and does not automatically reschedule it. The master production schedule for

the components is therefore stabilized.

You can define the firming period using the planning time fence or a manual

firming date. Planned orders can also be firmed and unfirmed manually.

The system will draw your attention to any possible changes to the masterproduction schedule in the form of an exception message in the MRP list. It is

then up to the MRP controller to process these changes.





Figure 83: Firming a Planned Order

If a planned order is changed manually, the system automatically sets the firmed

indicator for this planned order. This means that the header data of the planned

order will remain unchanged in the next planning run.

If a component in a planned order is changed manually, the system also sets the

firmed indicator for the components. This means that the components of the

planned order will not be changed in the next planning run.The firming indicators for the planned order or the components of the planned

order can be changed manually.

If the planned orders are flagged as firmed through the definition of a firming

period in the stock/requirements list and the MRP list, this occurs independently

of the firming indicator for the planned order or its components.

By resetting the conversion indicator in the planned order, you can prevent the

planned order being converted into a production order or purchase requisition.





Figure 84: Firming Period and Firming Types

The firming type determines how the procurement proposals (especially planned

orders and purchase requisitions) are to be firmed for the planning run and in

which order they are to be scheduled within the firming period.

You specify the firming procedure to be used for each material using the the MRP

type. The firming type is defined in Customizing for the MRP type.

You can use firming for materials planned with both master production scheduling

and material requirements planning. Corresponding MRP types are available

for this in the standard system.





Figure 85: Overview of Firming Types

• With firming type “0”, no firming period is effective.

• With firming types “1” and “2”, “automatically firmed” indicates that

any procurement proposals inside the firming period will now be firmed

automatically. They can therefore no longer be changed by the planning run,

only manually. Likewise, all procurement proposals that are moved into the

planning time fence are firmed automatically.

• Firming type “1”: The planning run covers all new shortages that haveoccurred within the planning time fence at the end of the firming period.

• Firming type “2”: The planning run does not cover any new shortages that

have occurred within the planning time fence.

• Firming type “3”: All procurement proposals that have not been manually

firmed within the planning time fence are moved to the end of the firming

period. If new shortages occur within the firming period, they are covered at

the end of the firming period.

• Firming type “4”: All procurement proposals that have not been manually

firmed within the planning time fence are deleted. If new shortages occur

within the firming period, they are not covered.

Planning time fence

Manual firming date

In contrast to the planning time fence, the manual firming date is also effective for

materials with MRP types with firming type 0, or without a firming type.





Figure 86: Planning Time Fence

You can use the firming period to protect the master production schedule for

a material from being automatically changed in the near future. Procurement

proposals within the firming period are no longer changed automatically during the

MRP run. You can define the firming period using the planning time fence. The

system calculates the finish date of the firming period on the basis of the MRP date.

You can specify the planning time fence either for each material in the materialmaster record or using the MRP group assigned to the material master. The length

of the planning time fence (in working days) should be based on the total lead time

of the material. The planning time fence is only effective in connection with

an MRP type that has a firming type.

The firming type determines how the procurement proposals are firmed for the

planning run and how the dates are set within the planning time fence. Existing

procurement proposals which slip into the planning time fence are firmed

automatically with firming type 1, as shown in the graphic, as soon as the date

of the procurement proposal falls at least one day before the end date of the

planning time fence.

The date for new purchase requisitions that were created within the planning time

fence and not created manually, is postponed to the final date of the planning time

fence with firming type 1. This means that these new procurement proposals

are not firmed.





Figure 87: Manual Firming Date

You can also define the firming period by manually entering a date lying in

the future - that is, the “manual firming date”. The manual firming date causes

automatic firming of the procurement proposals for materials with firming types 1

and 2 and lie before the manual firming date.

Unlike the planning time fence, materials without a firming type (firming type 0)are treated like materials with firming type 1 as far as the manual firming date is

concerned. This means that the procurement proposals that lie before the manual

firming date are firmed, and new procurement proposals are moved to the manual

firming date. If you have set a manual firming date and a planning time fence is

active, the firming period is determined by the end of the planning time fence,

providing this date is later than the manual firming date. If the manual firming

date is the later of the two dates, then this defines the firming period. You set and

reset the manual firming date in the stock/requirements list, in the planning results,

or in interactive single-item planning. You can apply this function in material

requirements planning, master production scheduling, or long-term planning.

Demonstration: Firming Settings

Purpose


System Data









Set up instructions: Standard1. Display the Customizing for MRP types:

Customizing: Production – Material Requirements Planning – Master Data

– Check MRP Types

• Explain the firming type field and the difference between the

characteristics PD, P1, P2, and so on.

2. Display the planning time fence in the material master of R-F2## (MRP 1)

3. Show how it is possible to define a planning time fence in Customizing

for the MRP groups.

Customizing: Production – Material Requirements Planning – MRP Groups – Carry Out Overall Maintenance of MRP Groups

or

Customizing: Production – Material Requirements Planning – Planning –

MRP Calculation – Define Planning Time Fence and Roll Forward Period

Demonstration: Firming a Planned Order

PurposePreparation for exercise

System Data






1. Demonstrate (at least) the content of the exercise on firming.

Roll Forward Period

You use the roll forward period to delete firmed but out-of-date planned orders in

order to clean up or update planning.

You activate the function in Customizing for the MRP type.

Customizing: Production – Material Requirements Planning – Master Data –

Check MRP Types





You define the start and the length of the roll forward period in Customizing for

the MRP group:

Customizing: Production – Material Requirements Planning – MRP Groups –

Carry Out Overall Maintenance of MRP Groups → Planning Time Fence

or

Customizing: Production – Material Requirements Planning – Planning – MRP

Calculation – Define Planning Time Fence and Roll Forward Period

Figure 88: Roll Forward Period

As well as the planning time fence, you can also maintain the roll forward period

in the MRP group. You can use the roll forward period to delete firmed but

out-of-date planned orders in order to automatically update the production master

schedule.

The Roll Forward indicator in Customizing for the MRP type controls whether or

not the roll forward mechanism is applied for a material.

All firmed planned orders with an end date within the roll forward period are

deleted in the planning run and either new planned orders are created with suitable

dates or, if the corresponding firming type applies, they are moved to the end of

the planning time fence.





177 Exercise 10: Firming


Exercise Objectives


• Use firming to restrict requirements planning

Business Example

Since some end products including pump R-F2## are frequently ordered by

customers at short notice, you want to use firming to stabilize requirements

planning in the short term. New customer requirements do not automatically leadto new (on time) procurement elements.

Hint: In this exercise, you will work with material R-F2## in plant 1000,

and not with R-F1##.

Task 1:

In material R-F2## in plant 1000 on the MRP views 1 and 3, maintain a firming

horizon of 20 (working) days and the strategy group 40 and save your changes.

1. Ignoring any previous entries that have been made from the demand

management menu for material R-F2## in plant 1000 create the following

active VSF planned independent requirements in planned requirements

version 00 (use W (week) for the planning period):

Current

week + 1

Current

week + 2

Current

week + 3

Current

week + +4

Current

week + 5

20 10 10 10 10

Confirm any warning messages that may appear with Enter and save the

requirements.






Task 2:

Execute single-item, single-level planning (and not multi-level planning) using

the preset parameters for material R-F2## in plant 1000 and call up the current

stock/requirements list for this material.

Menu path: Logistics → Production → Production Planning → MPS → MPS

→ Single-Item, Single-Level

1. Is a planning time fence active for this material (does the system display a

corresponding time fence)? Why (not)?

______________________________________________________

2. Check that a planning time fence has been entered in the material

master R-F2## for the plant 1000. Why is no firming active?

______________________________________________________

Task 3:

Convert the material using the MRP type to planned MRP with fixing type 1 in

order to satisfy the production demands: To do this, go the the view MRP 1 of the

material master R-F2## in plant 1000 and change the value of the field MRP type

to P1. Save your changes. Take another look at the (refreshed) stock/requirements

list for material R-F2## in plant 1000.

1. Does the system display a planning time fence? _____________________

2. To which date is the end of the planning time fence set?

______________________________________________________

Why are the planned orders within the planning time fence flagged as firmed?

______________________________________________________

3. Choose Display Element to display the header screen of a firmed planned

order inside the planning time fence. Is the firming indicator for planned

order set?_________________

Task 4:

A sales order is received for 100 pieces of material R-F2##, delivering plant 1000.Requirements date is today’s date + 3 weeks.

1. From the demand management menu, create a corresponding customer

requirement (use the data specified for this customer requirement) and then

save it.

2. Now call the stock/requirements list and analyze the (consumption) situation.

For which date is there a material shortage, in other words, on which date

does the quantity available for planning fall below zero?






______________________________________________________

Task 5:Execute interactive single-item planning for material R-F2## in plant 1000.

1. Call the transaction. When planning is called, the system reads the current

planning situation. You have to trigger planning manually by choosing

Execute Planning. After you have executed this function, you can see the

planning results that have, at this point in time, not yet been saved to the

database.

2. On which date is the material shortage corrected, in other words, on which

date is a planned order created so that the available quantity is greater than

or equal to zero?

________________________________

What is the number of this planned order?

_________________

3. Why is the shortage situation determined above not covered on time?

______________________________________________________

4. Select the planned order, and display the exceptions by choosing Element

details (to the very left of the planned order row).

Go back, select the planned order and execute the function Reschedule Proc.

Proposal (button to the bottom left).

What is the receipt due date for the planned order now?

______________________________________________________

Save the planning results.

Task 6:

Call the stock/requirements list for material R-F2## in plant 1000.

1. View the planned order that you have rescheduled, the number of which you

have noted. Is the firming indicator set in this planned order?____________

Give a reason for your result:

___________________________________________________

2. In the stock/requirements list, set the manual firming date for 3 working

days later than the end of the planning time fence . Refresh the list.

Which firming date takes effect?






__________________

Task 7:

1. Increase the customer requirement that you created before by 15 pieces.

Save and then execute single-item, single-level planning again. Analyze

the planning result: When has an additional procurement element for the

increased quantity of the sales order been scheduled?

__________________________________________________________

2. Then clean up material R-F2## as described at the beginning of exercise

5. Note that first you must reverse the firmings (for the material in the

stock/requirements list - you may have to do this manually).





Solution 10: Firming

Task 1:

In material R-F2## in plant 1000 on the MRP views 1 and 3, maintain a firming

horizon of 20 (working) days and the strategy group 40 and save your changes.

1. Ignoring any previous entries that have been made from the demand

management menu for material R-F2## in plant 1000 create the following

active VSF planned independent requirements in planned requirements

version 00 (use W (week) for the planning period):

Current

week + 1

Current

week + 2

Current

week + 3

Current

week + +4

Current

week + 5

20 10 10 10 10

Confirm any warning messages that may appear with Enter and save the

requirements.



Menu path: Logistics → Production → Production Planning →


Task 2:Execute single-item, single-level planning (and not multi-level planning) using

the preset parameters for material R-F2## in plant 1000 and call up the current

stock/requirements list for this material.

Menu path: Logistics → Production → Production Planning → MPS → MPS

→ Single-Item, Single-Level

1. Is a planning time fence active for this material (does the system display a

corresponding time fence)? Why (not)?

______________________________________________________

a) Planning time fence active: No2. Check that a planning time fence has been entered in the material

master R-F2## for the plant 1000. Why is no firming active?

______________________________________________________

a) Reason: The effect of the planning time fence is controlled by

the MRP type in the material master. The MRP type PD in the

material master R-F2## determines that no automatic firming is

to take place.






Task 3:

Convert the material using the MRP type to planned MRP with fixing type 1 in

order to satisfy the production demands: To do this, go the the view MRP 1 of the

material master R-F2## in plant 1000 and change the value of the field MRP type

to P1. Save your changes. Take another look at the (refreshed) stock/requirements

list for material R-F2## in plant 1000.

1. Does the system display a planning time fence? _____________________

a) Planning time fence displayed: Yes

2. To which date is the end of the planning time fence set?

______________________________________________________

Why are the planned orders within the planning time fence flagged as firmed?

______________________________________________________

a) End of the planning time fence: Varies (Today + 20 working days)

Planned orders within the planning time fence firmed: The planned

orders within the planning time fence are flagged as firmed,

because the MRP type P1, which you have entered in the material

master, defines that procurement proposals that fall within the

planning time fence are firmed automatically.

3. Choose Display Element to display the header screen of a firmed planned

order inside the planning time fence. Is the firming indicator for planned

order set?_________________

a) Indicator for firming planned order: No

Task 4:

A sales order is received for 100 pieces of material R-F2##, delivering plant 1000.

Requirements date is today’s date + 3 weeks.

1. From the demand management menu, create a corresponding customer

requirement (use the data specified for this customer requirement) and then

save it.

a) Menu path: Logistics→

Production→

Production Planning→


2. Now call the stock/requirements list and analyze the (consumption) situation.

For which date is there a material shortage, in other words, on which date

does the quantity available for planning fall below zero?






______________________________________________________

a) Date quantity available for planning below zero: The available

quantity falls below zero on the requirements date of the customer

requirement.

Task 5:

Execute interactive single-item planning for material R-F2## in plant 1000.

1. Call the transaction. When planning is called, the system reads the current

planning situation. You have to trigger planning manually by choosing

Execute Planning. After you have executed this function, you can see the

planning results that have, at this point in time, not yet been saved to the

database.

a) No solution is required.

2. On which date is the material shortage corrected, in other words, on which

date is a planned order created so that the available quantity is greater than

or equal to zero?

________________________________

What is the number of this planned order?

_________________

a) Available quantity greater than or equal to zero: The available

quantity is greater than or equal to zero at the end of the planningtime fence.

Planned order number: This varies

3. Why is the shortage situation determined above not covered on time?

______________________________________________________

a) Why not on time: Behind the MRP type P1 is the firming type 1.

For firming type 1, recent shortage situations within the planning

time fence are not covered with a new procurement element until

the end of the planning time fence. You can perform rescheduling

manually at a later stage.

4. Select the planned order, and display the exceptions by choosing Element

details (to the very left of the planned order row).

Go back, select the planned order and execute the function Reschedule Proc.

Proposal (button to the bottom left).

What is the receipt due date for the planned order now?

______________________________________________________






__________________________________________________________


Single-Item, Single-Level

When an additional procurement element is scheduled: The date

varies. The additional procurement element is scheduled for the

end of the effective planning time fence, that is, on the manual

firming date that you entered previously.

2. Then clean up material R-F2## as described at the beginning of exercise

5. Note that first you must reverse the firmings (for the material in the

stock/requirements list - you may have to do this manually).






Lesson Summary

You should now be able to:• Firm a planned order in different ways





TSCM40 Unit Summary

Unit Summary


• Explain the principle of multilevel requirements planning

• Go through the principle of external procurement and the document flow

• Make the necessary settings in Customizing

• Make the necessary settings in the master data



• Interpret the planning file







Unit Summary TSCM40






1. In material requirements planning you can calculate the dates for multi-level

production automatically.


□ True

□ False

2. Which of the following settings have to be made in order to execute a

material requirements planning run for a material?


□ A MRP activated in general

□ B Material status allows MRP

□ C MRP views have been created




Test Your Knowledge TSCM40

190Answers

1. In material requirements planning you can calculate the dates for multi-level

production automatically.

Answer: True

Material requirements planning for multi-level production is done by means

of backward scheduling. This determines when the respective assemblies

and components have to be available so that the deadline for the finished

product can be met.

2. Which of the following settings have to be made in order to execute a

material requirements planning run for a material?

Answer: A, B, C

MRP must be activated in Customizing in general (for each plant). The

material status can block a material for requirements planning globally or on

a plant-by-plant basis. When you create MRP views the system generates

an entry in the planning file.




Unit 5 191 Technical Processes in Requirements

Planning

Discuss the individual steps of the MRP run in detail: Net requirements

calculation, lot-size calculation, procurement types, scheduling, BOM explosion

and routing selection. Look at the relevant control parameters and the

corresponding Customizing settings.

Unit Overview

The MRP run consists of a number of individual steps that take place in the

system one after the other. The planning result depends on the various settings

for these different steps.

The first step is the net requirements calculation. This determines if a shortage will

occur for a certain material and if so, when. As well as the requirements, safetytime and quantity buffers can be included in the net requirements calculation.

In the next step, the lot-size is calculated: The lot size for the procurement

element is determined on the basis of the shortage quantity. You define the lot-size

procedure in Customizing and assign it to a material in the material master record.

Since materials produced in-house are scheduled differently to those procured

externally, you must determine the procurement type before scheduling begins.

Scheduling itself is more complicated for materials produced in-house than for

those procured externally, since two scheduling types – basic date scheduling and

lead time scheduling – have to be coordinated.

The final step is to explode the BOM. First, however, you need to determine the

BOM and the change status of the BOM to be exploded. The selection of BOM and

routing is usually controlled by selection IDs. These are defined in Customizing.

Unit Objectives


• Understand the net requirements calculation

• Work with safety stocks




Unit 5: Technical Processes in Requirements Planning TSCM40

• Use the dynamic safety stock

• Use the safety time

• Use static lot-sizing procedures

• Use lot-sizing by period

• Use optimizing lot-sizing procedures

• Make corresponding settings in Customizing

• Use the procurement type for in-house production

• Use the procurement type for external procurement

• Use the quota arrangement

• Describe scheduling for in-house production

• Describe scheduling for external procurement

• Understand multilevel backward scheduling• Make corresponding settings in Customizing

• Set the parameters for selecting the BOM

• Set the parameters for selecting the routing


Unit Contents

Lesson: Net Requirements Calculation ... .. .. .. .. ... .. .. ... ... .. .. .. .. ... ... 244Demonstration: Definition of the Net Stock . .. .. .. .. .. .. .. .. .. .. .. .. .. .. 246Demonstration: Rescheduling Horizon ..................................247

Demonstration: Safety Stock Partially Available .......................250Demonstration: Dynamic Safety Stock .. .. .. ... .. ... .. ... .. .. .. .. ... ... 254Demonstration: Safety Time ..............................................258

Exercise 11: Net Requirements Calculation and Safety Stock . . .. . .. 261Lesson: Lot-Size Calculation .... ... ... ..... ... ... .... ... .... .... ... ... ... ..... 272

Demonstration: Settings for Lot-Sizing Procedure .. .. .. .. .. .. .. .. .. .. 273

Demonstration: Planning Calendar ... .. .. .. .. ... .. .. ... ... .. .. .. .. ... .. .277Demonstration: Rounding ... ... ... ..... ... ... .... ... .... .... ... ... .... ... 281Demonstration: Special Lot-Sizing Procedures ........................282

Exercise 12: Lot-Size Calculation ... ... .. .. .. ... .. .. ... .. ... .. .. .. .. ... ..287Lesson: Procurement Types .... ... ... ..... ... ... .... ... .... .... ... ... ... .... .294

Demonstration: Quota Arrangement .. .. .. .. ... .. .. ... .. ... .. .. .. .. ... ..297Exercise 13: Procurement Type and Quota Arrangement ............ 299

Lesson: Scheduling.............................................................307Demonstration: Basic Scheduling ... .. .. .. .. ... .. .. ... .. ... .. .. .. .. ... .. 311

Demonstration: Lead Time Scheduling. .. .. .. ... .. ... .. ... .. .. .. .. ... ... 315

Demonstration: Reduction and Scheduling Adjustment .. .. .. .. .. .. .. 318Demonstration: Order Dates with Lead Time Scheduling andPostponing the Dependent Requirement Dates .. .. .. .. .. .. .. .. .. .. .. .321Exercise 14: Scheduling.. .... ... ... ..... ... ... .... ... .... .... ... ... .... ... 323

Lesson: BOM and Routing Selection... ... .. .. .. .. ... .. ... .. ... .. .. .. .. ... ... 335


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Lesson:

193

Net Requirements Calculation


Lesson Overview

The net requirements calculation is the first step that is carried out in material

requirements planning. Various buffers are available to work round unexpected

bottlenecks.

Lesson Objectives






Space for notes

Business ExampleThe net requirements calculation is provided with safety stocks and safety times in

order to work round unexpected bottlenecks.




TSCM40 Lesson: Net Requirements Calculation

Figure 89: Overview: Net Requirements Calculation

The net requirements calculation is the first step in the material requirements

planning run and is executed at plant level or at MRP area level. During this

process, the system checks whether the requirements can be covered by the

available warehouse stock and fixed dispatched receipts. If shortages exist, the

system creates a procurement proposal.

Net Requirements Calculation

As well as the stock, the firmed receipts within the rescheduling horizon flow

into the net requirements calculation. The rescheduling horizon is defined for

each plant or MRP group and is calculated based on the end of the replenishment

lead time (for materials with lot size dependent in-house production times, the

replenishment lead time is determined on the basis of the base quantity.





Figure 90: Net requirements calculation

In MRP, a net requirements calculation is executed in the planning run to determine

whether a material shortage exists for a certain material. In addition, stock and

fixed receipts that currently exist within the rescheduling horizon (purchase

orders, production orders, fixed purchase requisitions, and planned orders...) are

compared with the safety stock and requirements. The result of this comparison

is the quantity available for planning.

The stock available for planning combines the following stock from all storage

locations that belong to this plant or MRP area and are not excluded from

MRP or planned separately: unrestricted-use stock, stock in quality inspection,

unrestricted-use consignment stock and consignment stock in quality inspection.

In the Customizing activity Define Availability of Stock in Transfer/Blocked

Stock/Unrestricted Stock you can define for each plant whether the stock in

transfer from plant-to-plant stock transfers is included in the plant stock available

for planning without stock transport orders, or the blocked stock, or the restricted

stock for batches.

If the quantity available for MRP is less than zero, a material shortage exists. MRP

reacts to material shortages by creating new procurement proposals, that is, by

creating purchase requisitions or planned orders, depending on the procurement

type. The proposed procurement quantity results from the lot-sizing procedurethat is set in the material master.

Demonstration: Definition of the Net Stock

Purpose






System Data






1. Show where net stock is defined/configured.


MRP Calculation –.Stocks – Define Availability of Stock in Transfer/Blocked

Stock/Restricted Stock

Demonstration: Rescheduling Horizon

Purpose


System Data






1. Display the definition of the rescheduling horizon in Customizing at plant

or MRP group level

or


MRP Calculation – Define Rescheduling Check

and explain its significance.

Hint: The rescheduling check is dealt with in more detail in the unit

on processing the MRP results.

Net Requirements Calculation Time Line

Explain the net calculation time line and point out how this is represented in the






Figure 91: Net Requirements Calculation Time Line

The quantity available for planning consists of stock available for planning and the

fixed receipts (purchase orders, production orders, firmed planned orders, firmed

purchase requisitions, and so on) minus the safety stock and the requirements.

This is calculated for every requirements date along the time axis. If the quantity

available for planning is less than zero, a material shortage exists.

If there is a material shortage, the system determines the net requirement (shortagequantity).

The lot-size calculation is executed on the basis of the net requirements and

a calculation is made for a procurement proposal (planned order, purchase

requisition, or schedule lines).

Overview: Quantity and Time Buffers

• Safety stock

• Safety stock partially available

• Dynamic safety stock

• Safety time

There are two types of buffer that you can plan in order to take into account

uncertainties in the development of demands:

• Quantity buffer: Safety stock, partially available safety stock, dynamic

safety stock

• Time buffer: Safety time





Safety stock

A safety stock that was entered in the material master can be used as a requirement

element and included in the next MRP run.

Figure 92: Safety Stock

For every requirement for which the available stock for planning is insufficient,the system creates a procurement element in order to procure (at least) the quantity

that the available stock for planning is unable to cover.

You can define the safety stock level per plant in the MRP 2 view of the material

master or per MRP area in the MRP area segment. Safety stock reduces the stock

available for planning.

When the inventory is lower than the defined safety stock level, the system

replenishes the safety stock during the planning run. Note that this is also the case

if the safety stock is only slightly below the defined safety stock level.

This type of safety stock is independent of the requirement quantities and is

therefore static.

The safety stock is displayed in a separate line in the stock/requirements list and in

the MRP list.

Safety Stock Partially Available

Making safety stock partially available avoids the need for frequent, small quantity

procurement transactions, particularly if the shortfalls are usually only minimal.





Figure 93: Safety Stock Partially Available

You can define the proportion of safety stock that is available for planning for

each MRP group in the Customizing activity Define Safety Stock Availability. It is

defined as a percentage of the safety stock level that is specified in the material

master.

A new order proposal is not created until stock falls below the available portion of

safety stock. This order proposal replenishes stock up to (at least) the safety stock

level. This means that no individual order proposals are created for very smallmaterial shortages. This reduces the amount of administrative work and planning.

Demonstration: Safety Stock Partially Available

Purpose


System Data


Client: See weekly mailUser ID: Own user ID



1. Change material R-F1##: Enter safety stock 10 pcs (MRP 2), lot-sizing

procedure exact.

2. Enter warehouse stock: 20 pieces

3. Call the stock/requirements list for material R-F1##:





→ The safety stock is displayed and is entered as a requirement element

in the net requirements calculation.

4. Enter planning requirements, beginning with the current week + 2: 2, 4, 6,

1, 1, 1, 1, 1 pcs

5. Execute material requirements planning for R-F1##. Display the result:

→ Every time the requirements exceed the safety stock level, the system

generates a receipt element to cover the amount of the shortfall.

6. Definition of partially available safety stock in the Customizing for MRP

groups

or:


MRP Calculation – Stocks – Define Safety Stock Availability

Enter 50%, and execute the planning run again. A new receipt element is

created up to the amount of the safety stock only when there is a shortfall in

the partially available safety stock. No further planning is executed.

7. Remove the setting in Customizing.

Figure 94: Dynamic Safety Stock (1)

Using the range of coverage calculation, you can determine a dynamic level of

safety stock that is oriented to requirements.

During every planning run, the system checks whether the available quantity is

below the minimum stock level. If this is the case, the system creates an order

proposal in order to increase the available quantity to at least the target stock

level (dynamic safety stock).





If the maximum stock level is exceeded, the quantity is adjusted as long as a

firmed procurement proposal is not involved. The system issues an exception

message for firmed procurement proposals.

Any additional defined static safety stock and the dynamic safety stock are added

together.


The dynamic safety stock is calculated on the basis of the average dailyrequirements and therefore automatically adjusts itself to changes in demand. The

dynamic safety stock is calculated using the following formula: average daily

requirements x target range of coverage.

In the Customizing activity Define Range of Coverage Profile (Dynamic Safety

Stock) you can define the periodicity (week, month, or period according to

the planning calendar) and the number of periods for which the average daily

requirements are to be determined. The average daily requirement is calculated for

each period.

In Customizing, you enter the minimum and target range of coverage as the

number of days in which a material must still be available or should still be

available. You can also specify a maximum range of coverage. Multiplying the

average daily requirements by the values for the minimum, target, and maximum

range of coverage defined in Customizing results in the minimum, target, and

maximum stock.

During the planning run, the system checks whether the range of coverage

(available quantity divided by average daily requirement) is below the minimum

range of coverage or above the maximum range of coverage.






You can enter the ranges of coverage (minimum, target, and maximum ranges

of coverage) for up to three periods and you can maintain different ranges of

coverage for each period. If you have only maintained one period, the range of

coverage is unlimited.

The values adopted by the individual parameters of the dynamic safety stock can

either be checked directly after single-item planning in the planning results or inthe stock/requirements list. In both evaluations, the dynamic safety stock data is

contained in the period totals display.

The following data is displayed: target range of coverage, minimum range of

coverage, maximum range of coverage, target stock (dynamic safety stock),

minimum stock.

The parameters for calculating the dynamic safety stock are stored in a range

of coverage profile in Customizing for MRP, in the activity Define Range of

Coverage Profile (Dynamic Safety Stock). You can access this activity directly

from the MRP menu under Environment - Current Settings.

The range of coverage profile is assigned to the material in the material masterrecord (MRP data screen 2 or MRP area segment).

Dynamic Safety Stock (4)

You can define a period profile with deviating ranges of coverage for each range

of coverage profile.





12. Execute planning run, only one planned order is created for the 14th of

the current month + 2 and replenished to the target stock level. No more

planning is executed.

Conclusion: The minimum range of coverage for the dynamic safety stock

has the same function as the amount of the static safety stock that is not

available for planning.

Safety time

Safety time is a float after production. Do not confuse the safety time with the

negative and positive lead times from the BOM item, which have a completely

different function.

Figure 98: Safety Time

The safety time is a float after production (in contrast to the positive/negative lead

time in the component data of a BOM item). It is used to avoid material shortages

caused, for example, by an unreliable vendor.

The order proposals are brought forward by the number of working days specified

in the safety time. The actual requirements dates are not changed.

You define the safety time for each plant in the material master in the MRP 2 view

or for each MRP area in the MRP area segment.





Figure 99: Safety Time in Multi-Level Production

If a safety time has been defined at finished product level and also at assembly

level, these two times are added together when planning the assembly. This may

not be desired. You can therefore determine for each material whether the safety

time is valid for all requirements or only for planned independent requirements

(such as sales orders).

The safety time indicator is used in the MRP 2 view for the material for each

plant, or for each MRP area in the MRP area segment to determine whether the

safety time

• should not to be taken into account (indicator = blank),

• should only to be taken into account for independent requirements (indicator

= 1),

• should be taken into account for all requirements (indicator = 2).





Figure 100: Period Profile for the Safety Time

You define the safety time in the material master for each plant (MRP 2 view) or

for each MRP area (in the MRP area segment). In addition, you can assign a

safety time period profile to a material for each plant (MRP 2 view). You can use

the period profile to determine user-defined deviating safety times for particular

periods. These could be periods when a special marketing campaign is being

used, for example.

You define safety time period profiles in the Customizing activity Define Period

Profile for Safety Time/Actual Range of Coverage. You can access this activity

directly from the MRP menu under Environment - Current Settings.

You first create a period profile, to which you can then assign as many periods

with different safety times as you wish.

As of release ECC 5.0 you can define safety times with decimal fractions too. For

example, you enter a figure of 3.1 days using 3 days safety time and 10% lead

time (%). This means that 90% of the daily requirement quantity is deferred by 3

days and the remaining 10% by 4 days.

Demonstration: Safety Time

Purpose


System Data









1. Material master – MRP 2: R-F1##, plant 1000:

Safety time indicator. This can, for example, be restricted to planned

independent requirements in multi-level planning (so that addition of times

does not occur).

Safety time/Actual range of coverage (field for the number of days of

the safety time),

Period profile for safety time (profile used to define deviant actual ranges

of coverage, for example, seasonal ranges of coverage. This is defined in

Customizing for Material Requirements Planning:)

2. Customizing of the profile:


MRP Calculation – Define Period Profile for Safety Time/Actual Range

of Coverage

or:

→ Logistics – Production – MRP – Environment – Current Settings – Define

Period Profile for Safety Time/Actual Range of Coverage

(This is an alternative to making the entry in the material master: This is

done in the MRP area segment.)

Create profile P00: Period: 1st day of current month + 6 to last day of current

month + 7, safety time 3 working days. Enter period profile P00 and safety

time indicator 1 in the material master. Execute the planning run and show

the effects. Finally, reset the range of coverage profile and the safety time

indicator and execute the planning run.





205 Exercise 11: Net Requirements Calculation

and Safety StockExercise Duration: 25 Minutes

Exercise Objectives


• Use dynamic safety stock as a quantity buffer and the safety time as a time

buffer.

Business Example

Following the production phase-in period, it appears that pump R-F1## will

be sold in larger quantities. In future, the pump will be planned, assembled,

and put into storage so that sales orders can be fulfilled as quickly as possible.

Uncertainties in planning are to be covered by using dynamic safety stock. Any

delivery delays on the part of production caused by reorganizational measures

should be intercepted using the safety time.

Caution: In this exercise, you will be working with pump R-F1## and

not with R-F2##

Task 1:

First, change the material master for pump R-F1## in plant 1000, if required:

1. In the MRP 3 view, enter strategy group 40, consumption mode 2 and 30

days for both the forward and backward consumption periods.

Task 2:

Call the transaction for creating planned independent requirements for the

material R-F1##, plant 1000, version 00.

1. First, delete the row with the planned independent requirements that remain

from the test phase for strategy 50. To do this, select the relevant row and

delete the item. Save your change and exit from the table.

2. Call the same transaction again and enter the following planned independent

requirements for the pump R-F1## in plant 1000:

Current month

+ 3

Current month

+ 4

Current month

+ 5

Current month

+ 6

90 70 120 100






Verify the requirements type VSF. Save your entries.

Task 3:Execute single-item, multilevel planning for pump R-F1## in plant 1000.

1. In the initial screen of the planning run, check the creation indicators:


Create purchase requisition 2

Scheduling agreement schedule

lines

3

Create MRP list 1

Planning mode 1

Scheduling 1


Display results before they are saved Do not select



To start the planning run, press Enter twice.

2. Display or refresh the stock/requirements list for material R-F1## in plant1000. What is the available quantity at the end of the net planning segment

(this is the planning segment that contains the plant stock).

______________________________________________________

Task 4:

Test the effectiveness of a static safety stock.

1. Add a safety stock of 80 pieces to the material master for R-F1## in plant

1000 in the MRP 2 view and save this change.

2. Refresh the stock/requirements list. What is the available quantity at the

end of the net planning segment (plant segment)?

______________________________________________________

Explain this shortage:

______________________________________________________

______________________________________________________






3. Execute multilevel requirements planning once more using the

above settings and explain the result after you have refreshed the

stock/requirements list again.

_____________________________________________________

______________________________________________________

Task 5:

Due to fluctuating demand, the definition of static safety stock does not seem

practical. Rather, the safety stock should adapt itself to the requirements situation.

The range of coverage of the safety stock should be 5 days.

1. Change the material master R-F1## in plant 1000 as follows:

Delete the safety stock and enter the coverage profile 002 instead. Savethe change.

2. Open another session and check the coverage profile 002 in plant 1000 in

Customizing for MRP. What are the parameters for determining the average

daily requirement and what values do these parameters have?

_______________________________________ _________

_______________________________________ _________

_______________________________________ _________

3. Execute single-item, multilevel planning using the settings listed above.

Call the stock/requirements list again. Go to the Period totals display

(using the totals symbol on the left margin of the stock/requirements list)

and go to the “Months” tab page.

You notice that the available quantity differs from month to month.

What is the available quantity in the month current month + 4?

______________________________________________________

Use the table entries and your documents to reconstruct the way the

calculation was made:

______________________________________________________

______________________________________________________

______________________________________________________

______________________________________________________






Task 6:

During the months current month + 5 and current month + 6 there are likely

to be delivery delays on the part of production due to various reorganization

measures.

1. In the Customizing for MRP, enter the period profile P## for plant 1000 for

the safety time with the description “Period profile group ##” for the period

first day of current month + 5 to last day of current month + 6 with a

safety time of 3 working days. Save your entries.

2. Enter the new period profile P## in the material master for R-F1## in plant

1000 in the MRP 2 view. Which additional entry is necessary to activate the

period profile for planned independent requirements?

______________________________________________________

Enter safety time indicator 1.

3. Execute multi-level planning for material R-F1## in plant 1000 and then

refresh the stock/requirements list.

In the two critical months, do the availability dates correspond to the

requirements dates?

______________________________________________________

Explain the new situation:

______________________________________________________

______________________________________________________

Hint: To make the following exercises clearer, delete the entries

in the Coverage Profile and Safety Time Indicator fields in the

material master for R-F1## in plant 1000 in the MRP 2 view. Save

the material master. Then execute single-item, multilevel planning

for material R-F1## in plant 1000. Call the stock/requirements

list from the menu tree again. The availability dates should now

correspond to the requirements dates and the available quantity in

the period totals display/Month tab page should be zero again.





Solution 11: Net Requirements Calculation

and Safety StockTask 1:

First, change the material master for pump R-F1## in plant 1000, if required:

1. In the MRP 3 view, enter strategy group 40, consumption mode 2 and 30

days for both the forward and backward consumption periods.

a) Change the material master from the stock/requirements list via

Environment → Change Material or via

Menu path: Logistics → Production → Master Data → Material


Task 2:

Call the transaction for creating planned independent requirements for the

material R-F1##, plant 1000, version 00.

1. First, delete the row with the planned independent requirements that remain

from the test phase for strategy 50. To do this, select the relevant row and

delete the item. Save your change and exit from the table.



2. Call the same transaction again and enter the following planned independent

requirements for the pump R-F1## in plant 1000:

Current month

+ 3

Current month

+ 4

Current month

+ 5

Current month

+ 6

90 70 120 100

Verify the requirements type VSF. Save your entries.



Task 3:

Execute single-item, multilevel planning for pump R-F1## in plant 1000.

1. In the initial screen of the planning run, check the creation indicators:









lines

3

Create MRP list 1

Planning mode 1

Scheduling 1





To start the planning run, press Enter twice.



2. Display or refresh the stock/requirements list for material R-F1## in plant

1000. What is the available quantity at the end of the net planning segment

(this is the planning segment that contains the plant stock).

______________________________________________________

a) Quantity available at the end of the net requirements planning segment:0 pcs

Task 4:

Test the effectiveness of a static safety stock.

1. Add a safety stock of 80 pieces to the material master for R-F1## in plant

1000 in the MRP 2 view and save this change.


2. Refresh the stock/requirements list. What is the available quantity at the

end of the net planning segment (plant segment)?

______________________________________________________

Explain this shortage:

______________________________________________________






______________________________________________________

a) Quantity available for planning at the end of the net requirements

planning segment: Minus 80 pcs.

Reason: The newly created safety stock flows into the net

requirements calculation as a requirement.

3. Execute multilevel requirements planning once more using the

above settings and explain the result after you have refreshed the

stock/requirements list again.

_____________________________________________________

______________________________________________________

a) The available quantity at the end of the net requirements planning

segment is once again 0 pieces. The requirement from the safety

stock was fulfilled through requirements planning.

Task 5:

Due to fluctuating demand, the definition of static safety stock does not seem

practical. Rather, the safety stock should adapt itself to the requirements situation.

The range of coverage of the safety stock should be 5 days.

1. Change the material master R-F1## in plant 1000 as follows:

Delete the safety stock and enter the coverage profile 002 instead. Save

the change.


2. Open another session and check the coverage profile 002 in plant 1000 in

Customizing for MRP. What are the parameters for determining the average

daily requirement and what values do these parameters have?






_______________________________________ _________

_______________________________________ _________

_______________________________________ _________


Planning → Planning → MRP Calculation → Define Range of

Coverage Profile (Dynamic Safety Stock)

Parameters for determining the average daily requirement:

Number of periods 3

Type of period length 3 (standard days)

Days per period 20

3. Execute single-item, multilevel planning using the settings listed above.

Call the stock/requirements list again. Go to the Period totals display

(using the totals symbol on the left margin of the stock/requirements list)

and go to the “Months” tab page.

You notice that the available quantity differs from month to month.

What is the available quantity in the month current month + 4?

______________________________________________________

Use the table entries and your documents to reconstruct the way thecalculation was made:

______________________________________________________

______________________________________________________

______________________________________________________






______________________________________________________

a) Available quantity in the month current month + 4: 25 pcs

Calculation method (example):

Planned independent requirements from 3

periods:

Period 1: Current month + 4: 70 pcs



Total: 290 pcs

290 pieces divided by 3 x 20 days = 4.83

pc/day

4.83 pc/day x coverage range 5 days = 24.16

pc

24.16 pc rounds up to 25 pc.

Task 6:

During the months current month + 5 and current month + 6 there are likely

to be delivery delays on the part of production due to various reorganization

measures.

1. In the Customizing for MRP, enter the period profile P## for plant 1000 for

the safety time with the description “Period profile group ##” for the period

first day of current month + 5 to last day of current month + 6 with a

safety time of 3 working days. Save your entries.


Planning → Planning → MRP Calculation → Define Period Profile

for Safety Time/Actual Range of Coverage

2. Enter the new period profile P## in the material master for R-F1## in plant

1000 in the MRP 2 view. Which additional entry is necessary to activate the

period profile for planned independent requirements?

______________________________________________________

Enter safety time indicator 1.

a) Additional entry necessary: Safety time indicator

3. Execute multi-level planning for material R-F1## in plant 1000 and then

refresh the stock/requirements list.






In the two critical months, do the availability dates correspond to the

requirements dates?

______________________________________________________

Explain the new situation:

______________________________________________________

______________________________________________________

Hint: To make the following exercises clearer, delete the entries

in the Coverage Profile and Safety Time Indicator fields in the

material master for R-F1## in plant 1000 in the MRP 2 view. Save

the material master. Then execute single-item, multilevel planning

for material R-F1## in plant 1000. Call the stock/requirementslist from the menu tree again. The availability dates should now

correspond to the requirements dates and the available quantity in

the period totals display/Month tab page should be zero again.

a) In the two critical months, do the availability dates correspond to the

requirements dates? No

Reason: Due to the period profile you entered with a safety time of

3 working days, the availability dates are 3 working days before the

requirements dates in the defined period.





Lesson Summary

You should now be able to:• Understand the net requirements calculation








Lesson:

216

Lot-Size Calculation


Lesson Overview

The lot.size calculation follows on from the net requirements calculation. A range

of different methods are available for this.

Lesson Objectives






Space for notes

Business Example

You should set the lot-sizing procedures in such a way that the correct procurementquantities are scheduled at the correct times.

Lot-Size Calculation

In the net requirements calculation, the system determines the shortage quantities

on the respective requirements dates. These shortage quantities must be covered

by receipt elements. The system specifies the number of receipts during a planning

run in the lot-size calculation.

You can define how the lot sizes are calculated by selecting a lot-sizing procedure

when maintaining the material master record (MRP 1).

The result of the lot-size calculation is the quantity to be produced or procured,

which you can change and display in the order proposal.




TSCM40 Lesson: Lot-Size Calculation

Figure 101: Overview of Lot-Sizing Procedures

There are three different groups of procedures in the lot-size calculation: static

lot-sizing procedures, period lot-sizing procedures and optimum lot-sizing

procedures.

You can also enter restrictions in material master maintenance that the system

takes into account when forming the lot sizes:

• Minimum lot size (minimum procurement quantity below which the lot

size is not allowed to fall)

• Maximum lot size (maximum procurement quantity for each lot)

• Rounding value (the system rounds up to a multiple of the rounding value)

• Rounding profile (used to create scaled rounding)

You define the different lot-sizing procedures in the Customizing activity “Check

Lot-Sizing Procedure”. You assign the procedure to a material on a plant basis

in the material master (MRP 1) or per MRP area in the MRP area segment of

the material.

Demonstration: Settings for Lot-Sizing Procedure

Purpose


System Data










1. You make the entry in the material master, MRP 1 view.

2. You configure the lot-sizing procedure under


Lot-Size Calculation – Check Lot-Sizing Procedure

Static Lot-Sizing Procedures

Due to its simplicity, the “lot for lot” procedure is often used. However, this can

lead to a planned order every day, which is not desirable. Conversely, the “firmed

lot size” of 10 pieces in the case of a shortage of 95 pieces can lead to 10 different

procurement elements on the same day. If the storage capacity represents the

critical element, it may be practical to make use of the “Replenish up to max.

stock level” option

Figure 102: Static Lot-Sizing Procedures

If you select the lot-for-lot order quantity, an order proposal is created for the

shortage quantity. If several requirements exist on one day that cannot be covered,

the ECC system still only creates one order proposal covering the total shortage

quantity on this particular day.





If you use the the fixed/firmed lot size procedure, the system creates an order

proposal for the amount of the fixed lot size should material shortages occur.

If this order proposal does not cover the requirements sufficiently, the systemcreates as many additional order proposals for the same date, in this lot size, as

are needed to cover the requirements.

When replenishing to the maximum stock level, if a material shortage occurs, a

procurement proposal is created for the amount defined in the material master

record as the maximum stock level. However, if the shortage quantity for one day

is larger than the maximum stock level, the lot size is the same as the shortage

quantity. A balanced stock/requirements situation has priority over the lot-sizing

procedure. The system can also order an amount that replenishes stock up to

the maximum level and covers all requirements (when defining the lot-sizing

procedure in transaction OMI4, enter the indicator 1 in the field Max. Stock Level).

Lot-Sizing by Period

Periodic procedures are set if requirements emerge in recurring intervals (weekly,

every 3 weeks...). In this way, different materials (A-, B-, C--) can be produced in

different intervals taking stockholding and availability into consideration.

Figure 103: Lot-Sizing by Period

In the period lot-sizing procedure, the system groups together the procurement

of requirements quantities within a period in one lot size. The period lengths can

be days, weeks, months or user-defined periods in accordance with the planning

calendar.





You can choose the number of periods within which the procurement quantities are

to be grouped together. If the number is to be larger than 1, the number is entered

in the No. of periods field for the lot-sizing procedure in the ECC Customizingstep “Check Lot-Sizing Procedure” for the lot-sizing procedure selected in the

material master.

You can place the resulting receipt at the period start, period finish, or on the date

of the first requirement, by maintaining the relevant value in the “Scheduling”

field in the ECC Customizing step Check Lot-Sizing Procedure.

If you have defined in Customizing that the availability date is at the start or finish

of the period, the date of the planned order that is generated is moved accordingly.

Lot Size According to Planning Calendar

This is a variant of periodic lot sizes. Use an example that underlines that this

method is suited to heavy seasonal production (for example, to barbecue sauce

manufacturers).

Figure 104: Lot Size According to Planning Calendar

In the period lot-sizing procedure according to the planning calendar, the system

groups together the procurement of the requirements quantities within a period

defined by the planning calendar in one lot.

You assign a planning calendar to a material on a plant basis in the material master

(MRP 2) or per MRP area in the MRP area segment.





You maintain a planning calendar (period division) in SAP ECC in the master

data in the MRP menu or in the Customizing IMG activity “Maintain Planning

Calendar”.

Demonstration: Planning Calendar

Purpose


System Data






1. You can find the planning calendar under

Customizing: Production – Material Requirements Planning – Master Data

– Maintain Planning Calendar

Otherwise, refer to the documentation:

Optimizing Lot-Sizing Procedures

The ordering costs for materials procured externally are the costs of ordering and

the setup costs for materials produced in-house. You enter the storage cost rates in

Customizing for lot-sizing procedures.

The starting point is the first shortage date determined by the net requirements

calculation. The shortage quantity that exists at this time is the minimum

procurement quantity. The system then adds the next shortage quantity to this

lot size until, based on the cost criteria, the optimum cost at the source of the

procedure is reached.





The various optimizing lot-sizing procedures differ only by the type of the

minimum cost. The following procedures exist:

• Part period balancing:

In the part period balancing procedure, the system groups together successive

requirements quantities, starting from the shortage date, until such time

as the total storage costs equal the order costs (balance between the

quantity-independent and quantity/time-dependent costs).

• Least unit cost procedure:

With the least unit cost procedure, the system groups together successive

requirement quantities into a lot size, starting from the shortage date, until

the total costs per piece create a minimum. The total costs are the sum of

the order costs and the total storage costs.• Dynamic lot size creation:

In dynamic lot size creation, the system groups together requirements

quantities in one lot, starting from the shortage date, until the additional

storage costs are larger than the order costs.

• Groff reorder procedure:

The system groups together requirements quantities in one lot, starting from

the shortage date, until the rise in the average storage costs per period is

greater than the reduction in the order costs per period.

Figure 105: Optimizing Lot-Sizing Procedures





Optimizing lot-sizing procedures optimize the total costs resulting from ordering

(order and setup costs) and storage costs.

You enter the ordering costs in the material master (MRP 1) or, where applicable,

in the MRP area segment.

The system determines the storage costs based on the storage costs indicator,

which you define in the Customizing activity “Check Lot-Sizing Procedure” by

entering a storage cost interest rate. You assign the storage costs indicator to the

material master (for each MRP area, if necessary). The formula for calculating

storage costs is then:

Storage costs = Requirement x Price x Storage cost interest rate x Time in storage

/ 100 / 365.

Based on the first material shortage date determined in the net requirements

planning, the system groups together requirements until the optimum cost has

been reached. The optimizing lot size procedures differ only by the type of the

minimum cost:

Part period balancing: Sum of storage costs equals ordering costs

Least unit cost procedure: Minimum total costs per piece

Groff reorder procedure: Groups together requirements quantities in one lot until

the rise in the average storage costs per period is greater than the reduction in the

order costs per period.

Dynamic lot size creation:Dynamic planning invoice: Groups together the

requirement quantities in one lot until the additional storage costs are greaterthan the lot size fixed costs.

Figure 106: Minimum Lot Size / Maximum Lot Size





You can influence the grouping of requirements into a lot by entering additional

restrictions in the material master record. For example, you can define limiting

values (minimum lot size, maximum lot size). During lot-size calculation, thesystem takes into account these limiting values. That is, the lot size is either

rounded up to the minimum lot size, or the system prevents the grouping of

requirements to form more than the maximum lot size.

Rounding

You can use rounding to create a multiple of an order unit.

Figure 107: Rounding

You can influence the grouping of requirements into a lot by entering additional

restrictions in the material master record. By specifying a rounding value, for

example, the system will determine during lot-size calculation that the lot size

quantity is a multiple of an order unit (for example, pallet size, if the materialis only delivered in complete pallets).

In addition to that, you can use rounding profiles. A rounding profile is used to

define settings for rounding up or rounding down the order proposal quantity

into deliverable units.





You define the rounding profiles in Customizing. A rounding profile consists

of the threshold value and the rounding value. The threshold value is the value

from which the system rounds up to the value of the next deliverable unit. Therounding value is the value to which the system should round up as soon as the

threshold value is exceeded.

You can define several combinations of threshold and rounding values for a

rounding profile.

A simulation is available for checking the rounding profile Customizing settings.

Demonstration: Rounding

Purpose


System Data






1. Rounding value in the material master (MRP 1) by a multiple of which the

procurement quantity is to be rounded up.

2. Rounding profile, comprising the threshold value and rounding value; create

new staticrounding profile:

Rounding profile 0002 in plant 1000:

Level 1: Threshold value 2, rounding value 5

Level 2: Threshold value 32, rounding value 40;

Demonstrate how the rounding profile works using a simulation (from 1 to

200), exit without saving.

Dynamic rounding profiles and quantity addition/subtraction profiles are

not used in material requirements planning, but rather in areas such aspurchasing.

Special Lot-Sizing Procedures

Explain what is meant by “takt time” here and emphasize the different between

the takt time for takt-based production.





Figure 108: Special Lot-Sizing Procedures

You can control the choice of lot-size procedure especially for make-to-order

production (lot-for-lot order quantity, lot-for-lot order quantity with rounding

values, lot-sizing for short-term area).

By setting the splitting quota indicator in the Customizing for lot-size procedures,

you can distribute the procurement quantity across various sources. To do this,

you must set the quota arrangement usage indicator in the material master record

(Purchasing or MRP 2 view). You maintain the portions of the various sources inthe quota arrangement in the master data for Purchasing.

You can set the Overlapping indicator for all lot-sizing procedures in Customizing

in order to distribute the order quantity into partial quantities. These quantities

are not produced at the same time, but rather in regular, overlapping intervals.

Procurement proposals can overlap in the future and in the past. You also maintain

the takt time and, depending on the lot-size procedure, the maximum lot size

or the rounding value.

Demonstration: Special Lot-Sizing Procedures

Purpose


System Data










1. Each lot-sizing procedure is defined specially for make-to-order

production. Explain this in Customizing using lot-sizing procedures FXand FK.

2. Lot-size with splitting quota: Splitting the lot across various sources

according to the quota arrangement in the master data for purchasing;

you must also set the “Splitting Quota” indicator in Customizing for the

lot-size procedure and the quota arrangement usage indicator in the material

master (Purchasing or MRP 2 views). Do not confuse this with the quota

arrangement in the “procurement types” segment, with which the individual

lots are to be drawn alternately from various sources.

3. Lot-size with overlapping: Forward or backward overlapping (in time) of

partial quantities of an order; possible demonstration based on the lot-sizingprocedure FS, showing it first in Customizing, setting overlapping to “-”, and

then entering it in the material master R-F1## (MRP 1), which was used for

the demonstration of safety stock; enter a fixed lot size (120 pcs), takt time

(1 AT), and a rounding value (40 pcs), and remove any range of coverage

profile that may exist (MRP 2); execute material requirements planning and

explain the results; finally, reset the settings.

Long-Term Lot Size

The purpose of the long-term lot size is to gain a clear, advanced view theprocurement proposals in the future. Procurement is executed on the basis of

the short-term lot size.

Note here: The maximum MRP period (Customizing of the MRP group) and the

“Plan Regularly” indicator in the MRP type.





Figure 109: Long-Term Lot Size

The purpose of the long-term lot size is to divide the time axis for MRP into a

short-term and a long-term area, enabling the lot-size calculation to be carried out

using different lot-sizing procedures in these two areas. Creating larger lots in the

long-term area has a particularly positive effect on performance.

It is therefore possible to receive a rough preview of the future master production

schedule in the long-term area and to have a more precise analysis in the

short-term area.

You maintain the settings for the long-term lot size, just as for the other lot-sizing

procedures, in Customizing for MRP in the IMG activity “Check Lot-Sizing

Procedures”. You can define the lot size that is to be used in the short-term

period and the lot size that is to be used in the long-term period, as well as the

end of the short-term/beginning of the long-term periods using the key of the

lot-sizing procedure. You defined the length of the short-term area by entering the

periodicity (for example, month, week) and the number of periods.

If a material is planned with short-term and long-term lot sizes, the period of

validity of both lot-sizing procedures is determined during the planning run. The

order quantities in the short-term horizon are calculated using the lot size in the

short-term area. The system switches to the long-term lot size on the date from

which the long-term lot size is valid. To calculate this date, the system always

rounds up to the beginning of the next full long-term period.

Under certain circumstances, there is the danger that a material planned using

long-term lot size may not be changed and may therefore not be included in new

planning when using NETCH or NETPL planning. The planning order would then

be converted in the long-term lot size. In order to prevent this from occurring,

you can set the Recurring MRP indicator in Customizing for the MRP type of





the material, and also maintain the Max. MRP Interval in the MRP group. The

material is then included in planning after the maximum MRP interval has been

processed and is planned with the short-term lot size, if required.





227 Exercise 12: Lot-Size Calculation


Exercise Objectives


• Make the main settings for the lot-sizing procedure

• Use the lot-sizing procedure

Business Example

Pump R-F1## is only to be planned in the short-term horizon, in which

procurement actually occurs. Taking performance issues into account, the MRPcontroller should make do with a preview at the aggregated level in the long-term

horizon.

Task 1:

First, determine which lot-sizing procedure is currently being used for planning in

the material master for pump R-F1## in plant 1000.

1. ____________________________________________________________

Is this a static, periodic or optimizing lot-sizing procedure?

____________________________________________________________

Task 2:

Now create your own lot-sizing procedure with which you can gain a summarizing

preview beyond a short-term horizon.

1. To do this, call the activity Check Lot-Sizing Procedure in Customizing

for MRP.

The MRP Lot Size field takes you to the defined lot-sizing procedures.

Call the lot-sizing procedure entered under task 1 point 1 by double-clicking

on it.Have the long-term lot size settings been maintained?

______________________________________________________

2. Choose the “Copy As...” pushbutton and enter your group number ## and

the description “Exact lot size with preview group ##” as the name for the

new procedure.






In the period indicator for the long-term lot size field, enter M, and enter

3 in the corresponding number of periods field to determine where the

short-term period ends and the long-term period begins.

Choose the lot-sizing procedure P for period lot sizing for the lot size in the

long-term horizon, 3 as the number of periods and the lot size indicator

M.

Press Enter, confirm any warning messages that may appear and then save

your new procedure.

Task 3:

Now plan your pump with the new lot-sizing procedure.

1. Call the material master for the pump R-F1##, plant 1000, and enter yournewly created lot-sizing procedure.

In addition, choose a maximum lot-size of 20 pieces and save these changes.

2. Execute a multilevel planning run using the following settings:




lines

3

Create MRP list 1

Planning mode 3

Scheduling 1



Display material list Do not select


3. Evaluate the planning result using the stock/requirements list.

How is the result in the plant segment (net segment) attained?

______________________________________________________

______________________________________________________

______________________________________________________

Why are the make-to-order segments unaffected?

______________________________________________________






______________________________________________________

Task 4:You are, however, unsatisfied with the result and therefore call the material master

again to reverse the changes.

1. In the material master for the pump R-F1##, plant 1000 set the exact lot-size

EX again and delete the maximum lot-size of 20 pieces.

2. Execute another multilevel planning run for the pump with the settings

from task 3, point 2.

3. Verify the result by taking a look at the stock/requirements list, which you

need to call from the SAP Easy Access menu again.





Solution 12: Lot-Size Calculation

Task 1:

First, determine which lot-sizing procedure is currently being used for planning in

the material master for pump R-F1## in plant 1000.

1. ____________________________________________________________

Is this a static, periodic or optimizing lot-sizing procedure?

____________________________________________________________

a) Lot-sizing procedure: The pump is being planned with the exact

lot size EX.

Procedure type: The exact lot size is a static lot-sizing procedure.

Task 2:

Now create your own lot-sizing procedure with which you can gain a summarizing

preview beyond a short-term horizon.

1. To do this, call the activity Check Lot-Sizing Procedure in Customizing

for MRP.

The MRP Lot Size field takes you to the defined lot-sizing procedures.

Call the lot-sizing procedure entered under task 1 point 1 by double-clicking

on it.Have the long-term lot size settings been maintained?

______________________________________________________

a) Long-term lot size maintained? No long-term lot size settings have

been maintained.

2. Choose the “Copy As...” pushbutton and enter your group number ## and

the description “Exact lot size with preview group ##” as the name for the

new procedure.

In the period indicator for the long-term lot size field, enter M, and enter

3 in the corresponding number of periods field to determine where theshort-term period ends and the long-term period begins.

Choose the lot-sizing procedure P for period lot sizing for the lot size in the

long-term horizon, 3 as the number of periods and the lot size indicator

M.






Press Enter, confirm any warning messages that may appear and then save

your new procedure.


Planning → Planning → Lot-Size Calculation → Check Lot-Sizing

Procedure

Task 3:

Now plan your pump with the new lot-sizing procedure.

1. Call the material master for the pump R-F1##, plant 1000, and enter your

newly created lot-sizing procedure.

In addition, choose a maximum lot-size of 20 pieces and save these changes.

a) Menu path: Logistics → Production → Master Data → Material Master → Material → Change → Immediately, MRP 1 view

2. Execute a multilevel planning run using the following settings:




lines

3

Create MRP list 1

Planning mode 3

Scheduling 1







3. Evaluate the planning result using the stock/requirements list.

How is the result in the plant segment (net segment) attained?

______________________________________________________

______________________________________________________

______________________________________________________

Why are the make-to-order segments unaffected?






______________________________________________________

______________________________________________________



Interpretation of the results: In the short-term horizon (up to

three months time) planning is done using the “Exact Lot-Size”

procedure, taking a maximum lot size of 20 pieces into account. In

the long-term horizon that follows on from this, the requirement

elements are grouped in blocks of 3 months each and fulfilled by

a shared procurement element (preview at aggregated level). The

availability date is the requirement date for the first requirement

element to appear.

Make-to-order segments: When you made the settings for the

lot-sizing procedure, the “make-to-order lot-size” indicator

retained the initial value “blank”. This means that the exact lot-size

is used in the make-to-order segments, regardless of the procedure

used in the net segment. Consequently, with this setting, even the

maximum lot-size has no bearing in make-to-order segments.

Task 4:

You are, however, unsatisfied with the result and therefore call the material master

again to reverse the changes.

1. In the material master for the pump R-F1##, plant 1000 set the exact lot-size

EX again and delete the maximum lot-size of 20 pieces.


Master → Material → Change → Immediately, MRP 1 view

2. Execute another multilevel planning run for the pump with the settings

from task 3, point 2.



3. Verify the result by taking a look at the stock/requirements list, which you

need to call from the SAP Easy Access menu again.







Lesson Summary

You should now be able to:• Use static lot-sizing procedures







TSCM40 Lesson: Procurement Types

Figure 110: Procurement Types

The procurement type is used to determine whether a material is to be produced

in-house or procured externally.

The procurement type is predefined by the material type in Customizing for the

material master and is defined in the material master record (MRP 1, Procurement

type field).

If the procurement type permits both in-house production and externalprocurement, material requirements planning starts with in-house production.

A procurement type other than in-house production or external procurement can

be set using the special procurement key in the material master. You define

the special procurement types in the Customizing activity “Define Special

Procurement Type”; In doing so, special procurement types are assigned to a

procurement type, which defines the procurement type more precisely.

In this section, we will concentrate on in-house production.

Quota arrangement and quota maintenance

Explain the difference between this and lot-size with splitting quota.

If the participants have any questions, refer them to the appendix or go through

the appendix with them.





Figure 111: Quota Arrangement and Quota Maintenance

If a material is obtained from various sources of supply, the individual sources of

supply can be provided with a quota arrangement. The quota arrangement specifies

how the receipts should be distributed amongst each source of supply. The

quota rating determines which source of supply is next in line. The procurement

quantities are then filled one after the other using the various sources of supply.

With a quota arrangement you can also define a preferred source of supply. Then

only the remainder of a requirement quantity that exceeds the maximum release

quantity assigned to the preferred source of supply is requested from an alternative

source of supply (see the example in the graphic). The smallest periodicity for

the maximum release quantity is a week (maximum release quantities per day can

be realized by selecting the periodicity according to planning calendar and then

creating a planning calendar with day periodicity).

Each quota arrangement applies for a specific period of time. A quota arrangement

item is created within the period for every source of supply. Only continuous

validity periods can be defined for a material.

A quota arrangement may include external procurement or in-house production, as

well as various special procurement types. A source list entry is also necessary

for external procurement, though the MRP-relevant indicator should be taken

into account.

Using the quota arrangement usage indicator in the material master (Purchasing or

MRP 2 views), you determine that a quota arrangement is used for a material. You

also specify the business application areas in which the quota arrangement is used

and determine that the quota-allocated quantity is updated. You define the quota

arrangement usage indicator in Customizing for Purchasing.





Demonstration: Quota Arrangement

Purpose


System Data






1. To activate the quota arrangement you first have to create it in the masterdata for Purchasing or Material Requirements Planning.

2. A source list entry must exist for external procurement (including the

“MRP-relevant” indicator),

3. The quota arrangement usage indicator must be set in the material master,

4. The quota arrangement usage indicator is maintained in Customizing for

Purchasing:

Customizing: Materials Management – Purchasing – Quota Arrangement –

Define Quota Arrangement Usage.

Provide a demonstration of the exercise on procurement type and quota arrangement.





237 Exercise 13: Procurement Type and Quota

ArrangementExercise Duration: 15 Minutes

Exercise Objectives


• Classify the effect of the procurement type

• Work with quota arrangements

Business Example

In future, shaft R-B3##, plant 1000 is to be produced in-house. The amount

produced for each period will be determined by capacity restraints. Further

demand can be satisfied through external procurement. To do this, you use the

quota arrangement function.

Task 1:

Material R-B3## is to be used to test the effects of a quota arrangement in

procurement. Make the necessary settings to do this in the steps below.

1. Call the material master for the assembly R-B3##, plant 1000, and check

the procurement type. Which procurement type has been entered there and

what does this abbreviation mean?

______________________________________________________

2. Activate the quota arrangement for the material R-B3##, plant 1000 in

requirements planning by entering 3 in the Quota Arrangement Usage

field in the corresponding MRP view.

Choose Save.

Task 2:

Execute quota maintenance for the shaft from the master data menu in Material

Requirements Planning.

1. Call the transaction to access the initial screen. The quota arrangement

should be valid until 12.31. next year.

After you have done this, go to the item overview.

2. Now maintain the quota arrangement using the following constraints:






2. Call or refresh the stock/requirements list. Interpret the result by calling the

quota arrangement again (pushbutton in the stock/requirements list).

How large are the total quantities that appear in the quota arrangement

(quota allocated quantity)?

Item 1:_____________________________________________

Item 2:_____________________________________________

Which procurement elements are generated for the dependent requirements

and what is the reason for this?

______________________________________________________

______________________________________________________

______________________________________________________

3. The quota arrangement check has been completed. Deactivate the quota

arrangement for R-B3## (plant 1000) again.





Solution 13: Procurement Type and Quota

ArrangementTask 1:

Material R-B3## is to be used to test the effects of a quota arrangement in

procurement. Make the necessary settings to do this in the steps below.

1. Call the material master for the assembly R-B3##, plant 1000, and check

the procurement type. Which procurement type has been entered there and

what does this abbreviation mean?

______________________________________________________


Master → Material → Change → Immediately, View: MRP 2

Indicator entered: X

Meaning: Both procurement types (in-house production and

external procurement) are permitted.

2. Activate the quota arrangement for the material R-B3##, plant 1000 in

requirements planning by entering 3 in the Quota Arrangement Usage

field in the corresponding MRP view.

Choose Save.

a) Menu path: Logistics→

Production→

Master Data→

Material Master → Material → Change → Immediately, View: MRP 2

Task 2:

Execute quota maintenance for the shaft from the master data menu in Material

Requirements Planning.

1. Call the transaction to access the initial screen. The quota arrangement

should be valid until 12.31. next year.

After you have done this, go to the item overview.

a) Menu path: Logistics → Production → MRP → Master Data →

Quota Maintenance

Material: R-B3##

Plant: 1000

2. Now maintain the quota arrangement using the following constraints:






Item 1:

Internal procurement – In-house

production,

Maximum release quantity: 50 PC

Number of periods for this release

quantity:

1

Periods: W (week)

Priority for this item: 1

Hint: With item 1, make sure that you actually maintain settings for

the maximum release quantity and not the maximum quantity.

Item 2:

External procurement –

Consignment.

Priority for this item: 2

Save the quota arrangement settings.


Task 3:Due to the planning activities that you carried out in the previous exercises for

the finished product R-F1##, dependent requirements also exist for the assembly

R-B3##. The corresponding procurement elements are now to be generated again

using the quota arrangement.

1. Start multilevel single-item planning with the following settings:



Delivery schedules 3

Create MRP list 1

Planning mode 3

Scheduling 1












2. Call or refresh the stock/requirements list. Interpret the result by calling the

quota arrangement again (pushbutton in the stock/requirements list).

How large are the total quantities that appear in the quota arrangement

(quota allocated quantity)?

Item 1:_____________________________________________

Item 2:_____________________________________________

Which procurement elements are generated for the dependent requirements

and what is the reason for this?

______________________________________________________

______________________________________________________

______________________________________________________

a) Total quantities for items 1 and 2: Varies (for example, item 1: 370

pieces, item 2: 150 pieces)

Procurement elements: Planned orders and sometimes also purchase

requisitions are generated.

Reason: Depending on whether requirements of up to 50 pieces

or more appear in a planning interval (one week), either only

a corresponding planned order is generated (this means the

requirement can be satisfied from production alone), or a purchase

requisition is created as well to cover the requirements that exceed

the 50 pieces. The reason for this lies in the quota arrangement

settings you have defined and in the settings for the planning run

(always generate purchase requisitions for external procurement).






3. The quota arrangement check has been completed. Deactivate the quota

arrangement for R-B3## (plant 1000) again.


Master → Material → Change → Immediately, View: MRP 2

Quota arrangement usage: <blank>

Choose Save.

Hint: To deactivate the quota arrangement, all you have to do

is set the Quota arrangement usage indicator in the material

master back to blank . You do not need to delete it.





Lesson Summary

You should now be able to:• Use the procurement type for in-house production






TSCM40 Lesson: Scheduling

Lesson:

245

Scheduling


Lesson Overview

Scheduling takes place for materials produced in-house and procured externally

using the corresponding time elements. With products that are produced in-house,

you should take the supply planning across all BOM levels into account.

Lesson Objectives




• Understand multilevel backward scheduling


Space for notes

Business ExampleFor scheduling in-house production you need to ensure that basic date scheduling

and lead time scheduling run synchronously. Postponements that occur during the

conversion to a production order should be kept as small as possible.

Scheduling

During scheduling, the system calculates the start and finish dates of the

procurement elements for materials produced in-house or externally. In order

to calculate these dates, the system uses the in-house production time for parts

produced in-house and the delivery time in the material master or purchasing info

record for parts procured externally.

Scheduling Types in Production Planning

There are two different types of scheduling: Basic scheduling (through the

material master) and lead-time scheduling (through the routing); the latter always

implies the former.





Figure 112: Scheduling Types in Production Planning

There are two methods for scheduling in production planning that are applied

differently. If material requirements planning is carried out without lead time

scheduling as shown in the upper part of the diagram, capacity requirements are

not determined for the planned orders. Production orders are always scheduled

using lead time scheduling via the operations. Lead time scheduling can also

be used to determine capacity requirements for planned orders in MRP. The

production order always has both sets of dates (basic dates and production dates).The production dates are dates relevant to production. In order to ensure smooth

material requirements planning, it is absolutely essential to schedule the routing

and to update the scheduling result in the material master.

Basic Date Scheduling Backwards for In-House Production

The following three dates are important: The opening date (the point in time

when the planned order is converted into a production order, defined using the

opening period for the planned order), the order start date (starting point of the

production order) and the order finish date (point in time by which the material

has to have been through production).

Point out the difference between lot size dependent and lot size independent

in-house production time. It could also be useful that for a blast furnace, for

example, the filling quantity would have little or no effect on the production time,

or when the production time corresponds to a quantity-independent maturation

time (beer, wine).





Figure 113: Basic Date Scheduling Backwards for In-House Production

With materials planned using MRP, future requirements dates are known.

Backward scheduling is used. With backward scheduling, the system calculates

the order finish date by subtracting the goods receipt processing time from

the requirements date. This gives the number of workdays that are required

for checking the material and placing it in storage after the goods are received.

Backward scheduling is defined in the MRP 2 view in the material master. The

system calculates the order start date by subtracting the in-house production time

from the order finish date. The in-house production time comprises the lead time

and floats (safety time, float before production, and so on). You can maintain the

in-house production time in the material master as a value that is independent of

the lot size (MRP or Work Scheduling views) or as a lot-size-dependent value

(Work Scheduling view). If the in-house production time is independent of the lot

size, the system uses this value to determine the basic dates independent of the

order quantity. With an in-house production time that depends on the lot size, the

system determines the time based on the order lot size. The setup time and queue

time are independent of the lot size. The opening period for the planned order is

then subtracted from the order start date. This gives the opening date.

The opening period reflects the processing time that the MRP controller requires

to convert planned orders. You define the opening period as a float for the

scheduling margin key in the Customizing for MRP, in the activity “Define Floats

(Scheduling Margin Key)” for each plant, and enter the scheduling margin key inthe material master (MRP 2).

Basic Date Scheduling Forwards for In-House Production

If the order start date in backward scheduling falls in the past, “today scheduling”

without an opening period is executed. Point out that this can be repressed

technically.






Scheduling and Capacity Parameters – Parameters for Determining Basic Dates

Figure 114: Basic Date Scheduling Forwards for In-House Production

If during backward scheduling of materials planned using MRP the system

determines an order start date that is in the past, it automatically switches to

forward scheduling in order to receive realistic scheduling data. With forward

scheduling, the system sets the current date as the order start date. The in-houseproduction time is added to the current date to give the order finish date. The

goods receipt processing time is added to the order finish date in order to

determine the MRP date. The material is available from this date onwards.

There is no order creation date with forward scheduling since the opening date

calculated is in the past.

In the “Parameters for Determining the Basic Dates” activity in MRP Customizing,

you can make a setting for each plant to prevent the system from automatically

switching to forward scheduling when calculating basic dates if the order start

date is in the past. If the indicator is set, backward scheduling is always used to

determine the basic dates, even if the start date is in the past.

Basic Scheduling for External Procurement

In external procurement, the in-house production time is replaced by the sum of

the purchasing department processing time (in working days) and the planned

delivery time (in calendar days).





Figure 115: Basic Scheduling for External Procurement

The scheduling procedure for materials procured externally is the same as for

materials produced in-house: it is merely a matter of replacing the in-house

production time with the sum of the purchasing department processing time and

the planned delivery time. You define the purchasing department processing time

in workdays as a plant parameter in Customizing. The planned delivery time

is specified in calendar days. It can be determined on a non-vendor-specific or

vendor-specific basis. You maintain the non-vendor-specific planned deliverytime in the material master in the MRP 2 view.

You enter a vendor-specific planned delivery time in the purchasing info record or

in the outline agreement. It is used in the planning run, if the Sched. info rec/agr.

(scheduling info record/agreement) indicator is maintained in Customizing as a

plant parameter or MRP group parameter and if a vendor can be uniquely assigned

as part of automatic source determination.

Demonstration: Basic Scheduling

PurposePreparation for exercise

System Data










1. Explain basic scheduling with the help of a planned order:

Call material master R-F1##, plant 1000. Display and explain the following

fields:

• Scheduling margin key (MRP 2)

• Lot-size independent in-house production time (MRP 2) and lot-size

independent (work scheduling)

• goods receipt processing time (MRP 2)

• Planned delivery time (MRP 2)

2. Display and explain the following in Customizing:

• Definition of the scheduling margin key:

Customizing: Production – Material Requirements Planning – Planning – Scheduling and Capacity Parameters – Define Floats

(Scheduling Margin Key)

• “Order Start in Past” indicator at plant level:


Planning – Scheduling and Capacity Parameters – Parameters for

Determining Basic Dates

or:

Customizing: Production – Material Requirements Planning – Plant

Parameters – Carry Out Overall Maintenance of Plant Parameters

(The “order start date in the past” parameter is maintained only per

plant; the switch in the MRP group parameter cannot be bypassed)

3. Execute Material Requirements Planning for material R-F1##, plant 1000,

using planning mode 3 and scheduling indicator 1.

4. Stock/requirements list for material R-F1##, plant 1000. Double-click on a

planned order and “Change element”:

The planned order contains only the basic dates, not production dates or

capacity requirements.

Order Dates for Basic Scheduling

With basic scheduling, the dependent requirements date is derived from the order

start date of the order that caused the requirements.





Figure 116: Order Dates for Basic Scheduling

Basic scheduling is carried out if you start the planning run with the scheduling

indicator set to 1 (basic dates will be determined for planned orders). The planning

run determines the dependent requirements for the components via the BOM

explosion. With basic scheduling, the dependent requirements date is derived from

the order start date of the planned order that caused the requirements.

Taking the dependent requirements date as the availability date, the system

determines the basic order dates of the components by means of backward

scheduling using in-house production time or planned delivery time. With basic

scheduling, no capacity requirements are calculated or dispatched for the order.





Lead Time Scheduling

Basic scheduling is also executed first during lead time scheduling.

Hint: Point out that to adjust the results of both types of scheduling

types, it is necessary to schedule the routing and update the scheduling

results in the material master. Automatic adjustment of the order

start date is possible with different scheduling results.

• Definition of the exact production times (production start date, production

end date, operation dates, staging dates for the components)

• Determining capacity requirements

• Backward or forward scheduling

• Times from routing (queue times, setup times, personnel time, and machine

times) and floats from the scheduling margin key (float before and float

after production).

Figure 117: Lead Time Scheduling

You trigger lead time scheduling in MRP by setting the scheduling indicator to

“2” (lead time scheduling and capacity planning). During the planning run with

the scheduling indicator “2”, the order start and order finish dates are determined

for each basic scheduling. This is followed automatically by the actual lead time

scheduling which can alternatively also be executed manually for individual

planned orders (Planned order – Change – Edit – Scheduling) based on the existing

basic date scheduling with the scheduling indicator “1” (Determining basic dates

for planned orders). In lead time scheduling the precise production times (that is,

production start and finish dates) are defined for materials produced in-house and





at the same time the capacity requirements are created. The materials staging dates

for the components are also determined. Lead time scheduling is carried out using

the times from the task list. It is executed as forward scheduling or backwardscheduling, depending on the setting you make in the “Define Scheduling

Parameters for Planned Orders” activity in Customizing. The following times are

taken into account: – Buffer times (float before production and safety time) that

are assigned to the material using the scheduling margin key – the individual time

portions from the routing: Waiting time, setup time, labor time, and machine time.

In backward scheduling, the system first works back from the order finish date

to calculate the float after production, which in turn gives the production finish

date. The individual operations of the task list are scheduled backwards, starting

from the production finish date. The start date of the first operation becomes the

production start date.

Demonstration: Lead Time Scheduling

Purpose


System Data






1. Tie this in with previous demonstrations or call up the details for a planned

order and “Change element” in MD04.

Execute “Schedule Planned Order” (in the Edit menu, for example) and

look at the “Header” tab page: Production dates for this one planned order

are displayed.

2. Execute a planning run for material R-F1##, plant 1000, using planning

mode 3 and scheduling indicator 2.

3. Stock/requirements list for material R-F1##, plant 1000. Double-click on adifferent planned order to the one above and “Change element”:

The planned order is scheduled using detailed scheduling and therefore only

contains production dates.

4. Compare the order start dates and the production dates using the floats from

the scheduling margin key.

5. Explain the corresponding Customizing settings:






Scheduling and Capacity Parameters – Define Scheduling Parameters for

Planned Orders

Pay particular attention to:

• Detailed scheduling

• Adjusting dates (and defining the dependent requirement dates)

• Scheduling control for detailed scheduling

• Reduction

Detailed Scheduling Horizon:

A new planned order that was generated in a planning run with a start date

that lies beyond the detailed scheduling horizon does not undergo lead time

scheduling, in spite of scheduling indicator 2

If the start date of the above planned order lies within the detailed scheduling

horizon at the time of a later planning run with the scheduling indicator 2

(and planning mode 1), the order then undergoes lead time scheduling

Reduction and Scheduling Adjustment

Explain the various possibilities for avoiding or reducing the deviations between

basic date scheduling and lead time scheduling (scheduling the routing, reducing

lead time scheduling, switching to forward scheduling, overriding Customizingsettings).

Special features in conjunction with basic date scheduling and lead time

scheduling:

• If new basic dates are set (manually) in a planned order scheduled using

detailed scheduling, the detailed scheduling data is automatically reset.

The “Start in the past” field means that in lead time scheduling, an order start date

which is a certain number of days in the past is allowed. The production start

date, however, must lie in the future.





Figure 118: Reduction and Scheduling Adjustment

To ensure smooth interplay between basic date scheduling and lead time

scheduling, the in-house production time in the material master must match

the lead time scheduling via the routing. If basic scheduling differs from lead

time scheduling, the basic dates can be adjusted to the production dates after the

production dates have been re-determined through reduction. If the production

start date of the planned order is before the order start date, the system candetermine new production dates using reduction. Reduction can take place at two

points: 1. To reduce the float before production and the safety time, you must

set up reduction in the Customizing for the scheduling parameters for planned

orders for the plant, the planned order type, and where necessary the production

scheduler; 2.To reduce the operation times, you must assign a reduction strategy

to the operation in the routing. In the Customizing activity “Define Scheduling

Parameters for Planned Orders”, in the “Adjust Scheduling” section, you can

define whether and how the basic dates are to be adjusted to the production dates.

If there are scheduling problems, the basis for calculating basic dates switches

from backward to forward scheduling. If, based on these basic dates, detailed

scheduling occurs backward and if the times in the routing are much shorter thanthose in the material master, the following situation may arise: The calculated

production start date is further in the future than is necessary (and may still be able

to be produced on schedule.) To avoid this, Customizing is overridden. the system

schedules forward and the order finish date is adjusted (it falls on the requirements

date at the earliest). The proposed order start date remains the same.





Demonstration: Reduction and Scheduling Adjustment

Purpose


System Data






1. If the production start date is before the order start date, the system candetermine new production dates using reduction.

Demo example:

In the material master:

Reduce the processing time within lot-size dependent in-house production

time (view AV) by 10 days

Create requirement: 100 pcs for today + 5 months,

Planning run with scheduling indicator 2,

Analyze the resulting planned order:There was no reduction, the order start date was adjusted, the original order

start date can still be seen as the explosion date

In the scheduling and capacity parameters in the “Reduction” segment:

Maximum reduction level 4,

% Red. float before and after production: 50 60 70 80 90 100%

Execute planning run again with planning mode 3 and scheduling indicator

2:

New planned order: Reduced to the specified level 4, the order start date was

adjusted to the production start date that resulted from the reduction, theoriginal order start date is still visible as the explosion date.

Reduction for Forward Scheduling:

Demo example:

In the material master, enter the original processing time again manually, or

schedule the routing and update the material master,

In the scheduling and capacity parameters in the section “Reduction”: Reset

maximum reduction level to 0,





Create requirements: 100 pcs for today + 1 week, planning run with

scheduling indicator 2, analyze generated planned order: Forward

scheduling, no reductions.

Reset maximum reduction level to 4,

Execute planning run again with planning mode 3 and scheduling indicator

2: New planned order: Reduced to specified level 4, the order start was

adjusted to the production end date that resulted from the reduction.

Staging Components in Accordance with the Operation

• Staging of the components in accordance with the operation using component

assignment

• Entry in Customizing: Dependent requirements date can also be the order

start date

Figure 119: Staging Components in Accordance with the Operation

With lead time scheduling using the routing, the dependent requirements dates can

be placed on the dates of the assigned operations. A material order appropriate for

the operation is then possible.

The standard system assumes staging of materials in accordance with the

component assignment of the BOM to the routing. The dependent requirements

date of the BOM components is set on the production start date of the operations

to which they are assigned.





If BOM components are assigned to the first operation of the routing in the default

settings or component assignment maintenance, their dependent requirements date

is set to the production start date of the first operation. With pure basic scheduling,their dependent requirements date is the order start date of the planned order that

caused the requirements.

In Customizing for MRP, in the “Adjust Scheduling” section of the IMG activity

“Define Scheduling Parameters for Planned Orders”, you can define that the

dependent requirements date is also to be placed on the order start date with lead

time scheduling (for example, if capacity requirements have to be created using

lead time scheduling).

Changing Dependent Requirement Dates

The negative/positive lead times are used to simulate the requirements dates from

lead time scheduling during basic date scheduling. These times cannot, however,

be lot size dependent.

Figure 120: Changing Dependent Requirement Dates

In the BOM explosion, the required components or assemblies are determined

for the relevant BOM.

The dependent requirement date of a particular component can be moved using

the negative lead time or positive lead time from the BOM. You maintain the

negative and positive lead times in the basic data screen of the component item.

The lead time is entered as negative lead-time offset.





The positive lead time is not taken into account in lead time scheduling. They

are used for the simulation of component assignment in the routing during basic

date scheduling.

The negative lead time is taken into account in lead time scheduling. The

component must be available earlier by this period.

Demonstration: Order Dates with Lead TimeScheduling and Postponing the DependentRequirement Dates

Purpose


System Data






1. Explain the function of the negative/positive lead time and the component

assignment in both scheduling types as far as the sequencing of the dependent

requirements of the assemblies or components is concerned.

Instead of using the order report, you can also display the assembly

requirements dates in the component overview of the planned order; or with

a view to preparing the exercise, you can use the new order tree.





255 Exercise 14: Scheduling


Exercise Objectives


• Describe the functions of scheduling

• Monitor the order dates in multilevel production

Business Example

Based on material R-F1## in plant 1000, the project team examines the

possibilities for staging the assemblies and components at different times inmulti-level production planning.

Task 1:

Call the current stock/requirements list for material R-F1## in plant 1000.

Select a planned order in the net segment that is not firmed and does not show

any exception messages.

1. Make a note of the number of the planned order.

______________________________________________________

2. Choose the Order Report pushbutton at the bottom left of the screen.In the order report, double-click on the respective element and select the

component materials to analyze.

With dependent requirements, always analyze the “corresponding”

requirements coverage element.

To do this, place your cursor on the line and use the Display Element

pushbutton.

R-F1## basic dates Production dates

Finish: ________________ Finish: ________________

Start: ________________ Start: ________________

Goods receipt processing time:

R-B1## basic dates Production dates

Finish: ________________ Finish: ________________

Start: ________________ Start: ________________








Finish: ________________ Finish: ________________

Start: ________________ Start: ________________


3. What relationship do the dates have to one another?

___________________________________________________

___________________________________________________

___________________________________________________

4. Why is there no production date?

___________________________________________________

___________________________________________________

___________________________________________________

Task 2:

The assembly electronic turbo drive R-B4## cannot be installed until assemblies

R-B1##. R-B2##, and R-B3## are assembled. Therefore the electronic turbo drive

should be made available later in the basic date scheduling.

1. Call the BOM for material R-F1## in plant 1000 and usage 1 using the

transaction Change BOM in the production master data and branch to the

item overview.

Select the item for assembly R-B4## and choose the Item button. On the

Basic Data tab page, define a positive lead time (“Lead-time offset”)

of 5 working days.

Save the change.

2. Execute multilevel planning for material R-F1## in plant 1000.

Choose planning mode 2 (re-explode BOM and routing) and scheduling

type 1 (basic date scheduling).

3. Refresh the stock/requirements list for material R-F1## in plant 1000 and

analyze the new scheduling situation for the planned order you selected.

Proceed in the same way as described in task 1 point 2.







Finish: ________________ Finish: ________________

Start: ________________ Start: ________________



Finish: ________________ Finish: ________________

Start: ________________ Start: ________________



Finish: ________________ Finish: ________________

Start: ________________ Start: ________________


Compare the result with the result from task 1 point 2.

______________________________________________________

______________________________________________________

Task 3:

You should also test the effect of the positive lead time in the BOM item for lead

time scheduling.

1. Execute multilevel planning for material R-F1## in plant 1000:


type 2 (lead time scheduling).


analyze the new scheduling situation for the planned order you selected

previously.


Finish: ________________ Finish: ________________

Start: ________________ Start: ________________



Finish: ________________ Finish: ________________

Start: ________________ Start: ________________








Finish: ________________ Finish: ________________

Start: ________________ Start: ________________


Do production dates exist now?

______________________________________________________

Does the positive lead time for assembly R-B4## also affect lead time

scheduling?

______________________________________________________

Task 4:

Optional task:

To achieve staging of assemblies or components in accordance with the operation

in lead time scheduling as well, you must make a component or operation

assignment for the affected assemblies or components.

1. Call the BOM for material R-F1## in plant 1000 with usage 1 once more.

Select item R-B4## in the item overview. Choose Extras and then

Operation Assignment.

Select the operation 50 (install electronic turbo pump) in the operation

overview and choose Edit, New assignment and save.

2. Execute multilevel planning for material R-F1## in plant 1000 again.




analyze the new scheduling situation for the planned order you selected again.


Finish: ________________ Finish: ________________

Start: ________________ Start: ________________



Finish: ________________ Finish: ________________

Start: ________________ Start: ________________








Finish: ________________ Finish: ________________

Start: ________________ Start: ________________


Compare the result with the result from task 3 point 2. Will the electronic

turbo pump assembly R-B4## now also be staged at a later date in lead

time scheduling?

______________________________________________________

Hint: The staging date for assembly R-B4## (determined using

component assignment) in lead time scheduling does not necessarily

correspond to the staging date determined in basic date scheduling,

because the positive lead time is independent of lot size.





Solution 14: Scheduling

Task 1:

Call the current stock/requirements list for material R-F1## in plant 1000.

Select a planned order in the net segment that is not firmed and does not show

any exception messages.

1. Make a note of the number of the planned order.

______________________________________________________

a) Number of selected planned order: Varies

2. Choose the Order Report pushbutton at the bottom left of the screen.

In the order report, double-click on the respective element and select the

component materials to analyze.

With dependent requirements, always analyze the “corresponding”

requirements coverage element.

To do this, place your cursor on the line and use the Display Element

pushbutton.


Finish: ________________ Finish: ________________

Start: ________________ Start: ________________



Finish: ________________ Finish: ________________

Start: ________________ Start: ________________








Finish: ________________ Finish: ________________

Start: ________________ Start: ________________


a)


Finish: Varies Finish: Not available

Start: Varies Start: Not available

Goods receipt processing time: 1 day









3. What relationship do the dates have to one another?

___________________________________________________

___________________________________________________

___________________________________________________

a) The order start date of the finished product coincides with

the order finish dates of the assemblies plus the goods receipt

processing times of the assemblies.

4. Why is there no production date?

______________________________________________________________________________________________________

___________________________________________________

a) There are no production dates because material requirements

planning was executed first with scheduling indicator 1 (basic

date scheduling).






Task 2:

The assembly electronic turbo drive R-B4## cannot be installed until assemblies

R-B1##. R-B2##, and R-B3## are assembled. Therefore the electronic turbo drive

should be made available later in the basic date scheduling.

1. Call the BOM for material R-F1## in plant 1000 and usage 1 using the

transaction Change BOM in the production master data and branch to the

item overview.

Select the item for assembly R-B4## and choose the Item button. On the

Basic Data tab page, define a positive lead time (“Lead-time offset”)

of 5 working days.

Save the change.

a) Menu path: Logistics → Production → Master Data → Bills of Material → Bill of Material → Material BOM → Change

2. Execute multilevel planning for material R-F1## in plant 1000.


type 1 (basic date scheduling).



analyze the new scheduling situation for the planned order you selected.

Proceed in the same way as described in task 1 point 2.


Finish: ________________ Finish: ________________

Start: ________________ Start: ________________



Finish: ________________ Finish: ________________

Start: ________________ Start: ________________



Finish: ________________ Finish: ________________

Start: ________________ Start: ________________


Compare the result with the result from task 1 point 2.






______________________________________________________

______________________________________________________

a) Due to the positive lead time of 5 days, which is set in assembly

R-B4##, the order finish date of this assembly is 5 days after the

order finish date of assembly R-B1##, which does not have positive

lead time set.

Task 3:

You should also test the effect of the positive lead time in the BOM item for lead

time scheduling.

1. Execute multilevel planning for material R-F1## in plant 1000:

Choose planning mode 2 (re-explode BOM and routing) and schedulingtype 2 (lead time scheduling).



analyze the new scheduling situation for the planned order you selected

previously.


Finish: ________________ Finish: ________________

Start: ________________ Start: ________________Goods receipt processing time:


Finish: ________________ Finish: ________________

Start: ________________ Start: ________________



Finish: ________________ Finish: ________________

Start: ________________ Start: ________________


Do production dates exist now?

______________________________________________________

Does the positive lead time for assembly R-B4## also affect lead time

scheduling?






______________________________________________________

a) Production dates available: Yes, because requirements planning was

executed with scheduling indicator 2 (lead time scheduling).

No, the positive lead time does not have an effect in lead time

scheduling.

Task 4:

Optional task:

To achieve staging of assemblies or components in accordance with the operation

in lead time scheduling as well, you must make a component or operation

assignment for the affected assemblies or components.

1. Call the BOM for material R-F1## in plant 1000 with usage 1 once more.

Select item R-B4## in the item overview. Choose Extras and then

Operation Assignment.

Select the operation 50 (install electronic turbo pump) in the operation

overview and choose Edit, New assignment and save.

a) Menu path: Logistics → Production → Master Data → Bills of

Material → Bill of Material → Material BOM → Change

2. Execute multilevel planning for material R-F1## in plant 1000 again.





analyze the new scheduling situation for the planned order you selected again.


Finish: ________________ Finish: ________________

Start: ________________ Start: ________________



Finish: ________________ Finish: ________________

Start: ________________ Start: ________________








Finish: ________________ Finish: ________________

Start: ________________ Start: ________________


Compare the result with the result from task 3 point 2. Will the electronic

turbo pump assembly R-B4## now also be staged at a later date in lead

time scheduling?

______________________________________________________

Hint: The staging date for assembly R-B4## (determined using

component assignment) in lead time scheduling does not necessarily

correspond to the staging date determined in basic date scheduling,because the positive lead time is independent of lot size.

a) Yes, the assembly R-B4## will now be staged at a later date

(primarily at the start date for operation 50 assigned to the

assembly for the finished product R-F1##. You can check this on

the Detailed Scheduling tab page in the details for the planned

order at finished product level).





Lesson Summary

You should now be able to:• Describe scheduling for in-house production







TSCM40 Lesson: BOM and Routing Selection

Lesson:

267

BOM and Routing Selection


Lesson Overview

Planned orders for materials produced in-house are scheduled using the material

master, the routing and the BOM. You therefore need to make the corresponding

settings for selecting the routing and BOM.

Lesson Objectives





Space for notes

Business Example

You have to select the correct BOMs and routings to schedule in-house production.

BOM Explosion

After the planning run has executed the net requirements calculation, the lot-size

calculation, and the scheduling for a material, it determines the required quantities

for assemblies produced in-house and the materials staging date for the required

components and assemblies. The system determines and explodes the valid BOM

for every new order proposal of an assembly in the planning run. In the case of

existing procurement proposals, the BOM is only re-exploded if the quantity or the

date of the procurement proposal or the BOM structure has been changed. If the

BOM structure has changed, the system creates a planning file entry with the “new

BOM explosion” indicator. If, however, you want a new BOM explosion during

the planning run, you can control this on the initial screen using the planning mode

(planning mode 2 or 3). You can view the detailed data for the BOM explosion in

the planned order on the “Master Data” screen.





BOM Explosion: Overview

Put the BOM selection and BOM explosion into context and go over the reasons

for re-exploding a BOM for procurement proposals that already exist: When

manual changes to the date or quantity of the planned order occur, the BOM in

the affected planned order and the dependent requirements are adjusted without a

new planning run; the NETCH/NETPL indicators are set in the planning file of the

affected material and components. If the BOM structure was changed, the “BOM

Explosion” indicator is set in the planning file. This relationship is shown and

explained again in the demonstration at the end of the chapter.

The detailed data for the BOM explosion is displayed in the master data

of a planned order. The production-relevant BOM items are transferred as

components to the planned order (regardless of the MRP type). In addition tothe BOM selection ID/usage, alternative selection indicator/alternative, change

status/explosion date, the BOM status is also crucial as a validity criterion.

The BOM, or all of the materials and BOMs in the complete structure must be

maintained in the corresponding plant.

Figure 121: BOM Explosion: Overview





During the planning run, the system explodes the BOM for every new planned

order of an assembly. The following steps are carried out to determine the valid

BOM:

• In the planning run, the system first checks which BOM usage has the highest

priority. It then checks if this usage has a valid BOM on the explosion date.

If this is not the case, the system creates an exception message.

• If there are different BOM alternatives, the system checks which alternative

corresponds to the prerequisites of the alternative selection.

• If the alternative selection requires the selection to be made in accordance

with the production version, the BOM is already determined by the

production version in which it is contained.

• The change status on the explosion date is determined for the selected BOM

alternative, if necessary.• The BOM items relevant to production are copied to the planned order for

the valid BOM. The dependent requirements quantity is determined by the

quantity factor of the BOM item.

• The dependent requirements date is determined in accordance with the

scheduling of the superior assembly: it is either derived from the basic start

date or from the production start date of the operations in the planned order

for the superior assembly.

The BOM must be maintained in the appropriate plant in order to carry out the

planning run. Furthermore, the validity of a BOM is determined by the BOM

status. To use the BOM in MRP, you must have set the BOM status in the BOM

header so that it is active for MRP.





Figure 122: Selection of BOM Usage

With the BOM usage, it is possible to manage separate BOMs for the different

business areas (Engineering/Design, Production, Costing, and so on). The main

differences in the BOM structures result from the different tasks of the various

areas that process different item data.

You have to define which BOM usage is to be used in the planning run. Youdetermine the priority of the usages for the planning run using the selection ID

in Customizing for MRP, in the activity “Define BOM Selection” (Note: The

routing selection is not defined in this activity). You can define a sequence for the

selection of a valid BOM with the “usage” criterion.

If the system does not find a valid BOM in the selected usage, it selects the usage

with the next lowest priority and carries out the check for valid BOMs.

You define the order of priority for the BOM usage, that is, the selection ID, in

Customizing for production basic data, in the activity “Define Order of Priority

for BOM Usages”.

Demonstration: BOM Selection ID/BOM Usage

Purpose


System Data









1. The BOM selection ID for MRP is defined for each plant

→ Customizing: Production – Material Requirements Planning – Planning

– BOM Explosion – Define BOM Selection

Important: Point out that you do not define the routing selection in this

Customizing activity.

2. BOM usage:

→ Customizing: Production – Basic Data – Bill of Material –General Data

– BOM Usage – Define BOM Usages→ Customizing: Production – Basic Data – Bill of Material – Alternative

Determination – Define Order of Priority for BOM Usages

The system determines the first valid usage according to the selection ID.

“Valid” means valid on the explosion date and having the BOM status active.

Hint: For long-term planning, you can use a deviating BOM

selection ID by assignment in the long-term planning scenario.

Selection of Alternative BOM

This selection is made with multiple BOMs.





Figure 123: Selection of Alternative BOM

In the case of multiple BOMs, you have to define which alternative BOM is to be

selected during the planning run.

You can define which procedure is to be used to select the BOM in the material

master record, in the “Selection method” field for the MRP data (MRP 4).Three options are available:

• BOM selection using the order quantity (lot size): The order quantity is

based on the lot size in accordance with the selected lot-size procedure.

• Selection according to explosion date: The system uses the explosion date

to determine the valid BOM (or the valid routing) for a planned order. In

Customizing, you can define whether the order start date, order finish date,

or fixed key date of the BOM explosion number is selected.

• Selection according to production version: The production version

determines the different production methods that can be used to produce a

material. The production version therefore contains a routing and a BOM.The alternative BOM to be selected, the BOM usage, the lot-size range, and

the effectivity period of a BOM can be defined for the alternative selection.

With alternative selection indicator 3, the selection is always made according

to production version; with indicator 2 , the selection is made according to

production version when this is possible (if not, then according to lot size).





Selection by Order Quantity (Lot Size)

The lot-size range of the alternatives of a multiple BOM is determined in the BOM

header. If the system does not find a valid or suitable alternative for the order

quantity, it creates an exception message.

Figure 124: Selection by Order Quantity (Lot Size)

During the planning run, the system checks whether a valid alternative BOM

exists for the order quantity (lot size). You must defined the lot-size range of

an alternative in the BOM. The valid alternative is exploded and dependent

requirements are created for the corresponding components. If the system does

not find a valid or suitable alternative for the order quantity, it creates an exception

message.

Defining the Explosion Date

This setting is also valid for defining the change status of the BOM (alternative).





Figure 125: Defining the Explosion Date

In Customizing for MRP, in the activity “Define BOM Explosion Control”, you

can define the explosion date for the BOM and routings selection at plant or MRP

group level.

The explosion date determines which BOM (or which routing) is used for the

explosion and thus for determining the dependent requirements for the planned

order. This means that the BOM that is valid on the explosion date is selected andthe system generates dependent requirements for the components entered there.

The following options are available for the explosion date:

• Order start date

• Order finish date

• BOM explosion number (gross date)

Demonstration: Explosion Date for BOM

Purpose


System Data










1. → Customizing: Production – Material Requirements Planning – Planning

– BOM Explosion – Define BOM Explosion Control

Explosion According to Order Start Date

Point out that if the order start date is adjusted to the production start date,

the BOM is still exploded on the original order start date. This means that the

explosion date and the final order start date differ from one another.

Figure 126: Explosion According to Order Start Date

For BOM explosion according to date (selection method indicator = 1),

assembly-specific periods are defined, within which certain alternative BOMs are

to be used. The system then checks the defined period for the assembly during

the planning run. The system checks in which period the explosion date lies, andselects the corresponding alternative BOM. The default setting is that the order

start date is set as the BOM explosion date. The suitable alternative is exploded

and dependent requirements are created for the corresponding components.

To define the alternative BOM for each period, you choose “BOM via dates” in

the master data in the MRP menu. To define the alternative selection using dates,

enter the following parameters in the table: Material number, plant, BOM usage,

and the valid-from date, from which the alternative BOM is to be used in the

planning run, and the BOM alternative.





In order to assign several alternative BOMs with different effectivity periods to a

material, you define the beginning of the effectivity period for each alternative in

the “Valid from” field. The beginning of the validity period of the next alternativeon the time axis marks the end of the effectivity period of the previous alternative.

The system selects the BOM and explodes it as soon as the basic dates have been

determined in the scheduling, that is, in the case of lead time scheduling even

before the scheduling is carried out via the routing. If the basic date is to be

adjusted to the production date (for example, if the deadline is missed), the BOM

is still exploded on the original basic date. The BOM explosion date and the final

basic date are different in this special case.

Figure 127: Explosion Using Order Finish Date

Here you can see the BOM explosion situation if you define in Customizing that

the BOM explosion date is to be set according to the planned order finish date.

The system selects and explodes the BOM as soon as the order finish date has beendetermined in the scheduling. If, in the case of lead time scheduling, the order start

date is to be adjusted to the production dates, this does not change the order finish

date, that is, BOM explosion date and the final basic date do not differ in this case.

If the system does not find a valid or suitable alternative, the BOM with the

suitable lot size is used.





Explosion Using the BOM Explosion Number

You define BOM explosion numbers by entering the fixed key date in material

requirements planning.

→ Logistics – Production – MRP – Master Data – BOM Explosion Number – Edit

(When you enter a material number, the BOM explosion number can only be

used for this material.)

You can assign the BOM explosion numbers in the following places:

1. Customer requirements (item screen),

2. Planned independent requirements (schedule line screen, settings → BOM

explosion number),3. Sales order (Item detail screen: Sales A),

4. Planned order (header screen).

In the Customizing for material requirements planning, you can restrict the use

of BOM explosion numbers to make-to-order production and engineer-to-order

production.

→ Customizing: Production – Material Requirements Planning – Planning –

BOM Explosion – Define BOM Explosion Control

Figure 128: Explosion Using the BOM Explosion Number





If the order start date of the planned order is set as the explosion date for the

BOM explosion, there could be large intervals between the explosion dates of the

individual BOM structures under certain circumstances, in the case of multipleBOMs. If BOMs (alternatives) change over time due to different requirements,

the situation could occur that an assembly used several times is produced using

different BOM compositions.

If you would like to ensure for a particular production unit that the whole BOM

structure is always exploded with the same explosion date, you can assign a BOM

explosion number to the planned independent requirements or the sales order

or to a planned order.

Using the BOM explosion number, you can define a standard explosion date for

all BOM levels. This “gross date” is contained in the BOM explosion number.

The BOM is exploded for all level with this gross date.

You maintain a BOM explosion number in the MRP master data. You can define

the gross date for an alphanumeric BOM explosion number.

The BOM explosion number can be entered and pre-defined in the planned order

(header screen), in the planned independent requirement (Schedule Lines screen,

Settings -> BOM explosion number ), in customer requirements or in the sales

order (item screen Sales or item detail screen Sales A).

Selection by Production Version

With the selection “by production version” (with selection method indicator 2),

if the system cannot find a production version or one which is suitable as far as

lot size and validity period is concerned, then it selects a BOM according to the

normal logic, as thought the selection method indicator were set to “blank”.

With selection “strictly according to production version” (with the selection

method indicator set to 3), the system does not select a BOM (and does not issue

an exception message) if it does not find a suitable production version.





Figure 129: Selection by Production Version

There may be different BOMs according to which a material is produced. The

production of a material can also be described in various routings. The material

can be produced on different production lines (work centers). The data on the

different methods according to which a material can be produced, can be combinedin the production version and assigned as such to the material.

The production version defines the following data:

• Alternative BOMs and BOM usages for the BOM explosion

• Task list type, task list group, and group counter of the routing

• Validity period of the production version (fields “Valid from” and “Valid to”)

• Lot-size area of the production version (fields “Lot-Size from” and “Lot-Size

to”)

If the value “2” has been entered for the selection method indicator in the material

master, the BOM is selected by production version, as long as valid data isavailable. If the system does not find a production version or does not find a

production version which is suitable as far as usage, lot-size and validity period is

concerned, then the selection occurs according to lot-size in the same way as when

the selection method indicator is set to “blank”. If the indicator is set to “3”, the

selection occurs according to production version, which means that if the system

does not find any selection version or does not find any appropriate selection

version, it cannot create a production order and issues an exception message.





Demonstration: Selection of Alternative BOM

Purpose


System Data






1.

Hint: The selection of an alternative BOM is only relevant for

multiple BOMs. You therefore create a new BOM alternative in this

demonstration (step 2).

Display and explain the selection method indicator (MRP 4).

2. Selection according to lot size: Create a new BOM alternative for material

R-F1## as a copy of the existing BOM. Copy all components, increase the

number of shafts to two, and save.

Assign the two alternatives in the lot-size range header:

Alternative 1: 1 to 10 pcs

Alternative 2: 11 to 100 pcs

Change the quantity in an existing planned order that is not firmed in the

components:

First 5 pcs, then 15 pcs, each time showing the master date and the

component overview of the planned order.

Conclusion: If the selection method indicator is blank in the material master,

the system determines the BOM alternative according to lot-size.

3. Selection according to explosion date: Set the selection method indicator 1

in the material master,

Define the temporal validity of the two alternative BOMs for R-F1##:

→ Logistics – Production – MRP – Master Data – BOM by Date

or

→ Customizing: Production – Basic Data – Bill of Material – Alternative

Determination – Define Alternative Determination for Multiple BOMs





Alternative 1: Valid from today

Alternative 2: Valid from today + 2 months

Conclusion: If the selection method indicator is set to 1 in the material

master, the system determines the BOM alternative according to validity

period (planning relevance).

If the system does not find a valid or suitable alternative, the BOM with

the suitable lot size is used.

4. Determining the explosion date with explosion according to date and

in consideration of the determination of the valid change status of the

(alternative) BOM.


– BOM Explosion – Define BOM Explosion Control

5. Explosion Using the BOM Explosion Number

a. Create a BOM explosion number, for example, SCM240 with a fixed key

date = today’s date, without restriction to material number.

b. Enter the BOM explosion number in a non-firmed planned order.

c. Execute single-item, multilevel planning.

d. Display the planned order, order report, open all, display the BOM

explosion number and the resulting explosion date on the master data tab

page in the planned orders of the finished product and in one assembly.

6. Call the production version of material T-SEL: Display the possibility for

defining production versions.

Change Status According to Order Start Date

Change Status According to Order Finish Date

Change Status According to BOM Explosion Number

Selection of the change status is relevant for BOMs affected by change

management (the BOM must have a change number and an associated changedate).





Figure 130: Change Status According to Order Start Date

The BOM (or alternative BOM) can have different validity periods on the time

axis due to changes that have been made (for example in the BOM composition).

The BOM can have different compositions (statuses) at different times. Every

change status has a valid-from date and a valid-to date, defined by the valid-from

date of the next change.

The BOM status at the time of the explosion date is exploded. Whether this is the

order start or finish date, or the fixed key date of the BOM explosion number,

depends on the settings made in Customizing (Customizing activity “Define BOM

Explosion Control”).





Figure 131: Change Status According to Order Finish Date

Figure 132: Change Status According to BOM Explosion Number

By entering a BOM explosion number, you can explicitly define an explosion date

(fixed key date) for a BOM structure.





Demonstration: Relationship Between BOM Explosion,Change Status, and Planning File

Purpose


System Data





Set up instructions: Standard1. Change BOM with change management → the “BOM Explosion” indicator

is set in the planning file

2. Execute the planning run to reset the indicator

3. Change the order start date of the planned order so that the new change

status is called; display the components of the planned order → they now

correspond to the new status; NETCH/NETPL are set in the planning file.

Figure 133: Summary: BOM Selection





The BOM selection in the MRP run has three steps:

1. The BOM usage is defined by the BOM selection ID, which you assign on a

plant-by-plant basis in the Customizing activity “Define BOM Selection”.

2. The alternative BOM is determined according to the setting for the BOM

selection indicator in the material master. If the selection is to be made

according to explosion date, you should enter the date to be used in the

Customizing activity “Define BOM Explosion Control”.

3. The change status of the BOM is then determined using the explosion date.

The same Customizing setting as in step 2 is the basis for the choice of date.

Figure 134: Routing Selection

If you start the planning run with the scheduling indicator 2 (lead time scheduling

and capacity planning), the system selects the routing for each planned order. The

system calculates the dates, the staging of materials and the capacity requirements

using the routing.

The selection method indicator in the material master (MRP 4) is also crucial for

selecting the routing:

• If it has been set to value 2 or 3 (selection by production version), the routing

is also selected according to the selected production version.

• Otherwise, the selection ID of the routing selection, which is defined in

Customizing for MRP at detailed scheduling level in the activity “Define

Scheduling Parameters for Planned Orders”, decides which routing is

selected.





You define the selection ID of the routing selection in Customizing for Production

under basic data. The explosion dates of the BOM and the routing are identical.

If the planned order is managed using Engineering Change Management, thesystem uses the routing with the change status at the time of the BOM explosion

date. The task list group and the group counter for the routing as well as the

corresponding scheduling and capacity requirements can be seen on the “Detailed

Scheduling” screen for the order.

Demonstration: Routing Selection

Purpose


System Data






1. The selection method indicator in the material master is also responsible for

the routing selection, as are the following two settings in Customizing:


– Scheduling and Capacity Parameters – Define Scheduling Parameters for Planned Orders

for each plant, order type and production controller:

Selection ID Detailed Scheduling

→ Customizing: Production → Basic Data → Routing → Routing Selection

→ Select Automatically:

using the selection ID: Priority sequence for task list type, usage and

status

With selection according to production version (with selection method

indicator 2 or 3), if the system cannot select a routing according to productionversion, it determines the routing using the standard logic, as if the selection

method indicator were set to blank.

(Note: For indicator 2, this is clear and identical to the BOM selection; this is

not the case for indicator 3. This can lead to problems with indicator 3 when

you convert the planned order to a production order because the production

order with standard settings requires a routing according to production

version and does not use the routing selected in the planned order.)





281 Exercise 15: Routing and BOM Selection


Exercise Objectives


• Analyze the selection of routings and BOMs in the MRP run and make the

appropriate settings in the system.

Business Example

Using material R-F1## in plant 1000, the project team investigates the technical

processes involved in selecting routings and BOMs during the planning run.

Task 1:

Call the stock/requirements list for the material R-F1## in plant 1000, then

call three existing planned orders, one after the other, in the net segment and

check which BOM was selected by looking at the Master Data tab page for

the respective planned order.

1. Have the production dates and the corresponding capacity requirements been

created on the basis of the same routing for all the planned orders?

______________________________________________________

2. Which settings in the system have caused these routings to be selected?

Individually:

What value does the selection method indicator in the material master for

material R-F1## have and what does this mean?

______________________________________________________

What Selection ID for detailed planning is set in Customizing for the

existing planned orders (you can find this selection ID in the Customizing

IMG activity Define Scheduling Parameters for Planned Orders)?

______________________________________________________

Task 2:

Evaluate the BOM explosion in the planned orders:

1. Call the stock/requirements list for material R-F1## in plant 1000 and

analyze the planned orders you looked at before. On the Master Data tab

page for the respective planned order, find out which BOM was exploded

on which date:






1. BOM: ______________

______________

Date: _____________________

_____________________

2. BOM: ______________

______________

Date: _____________________

_____________________

3. BOM: ______________

______________

Date: _____________________

2. Now analyze the detailed data for the planned orders. On which basic date

was the BOM for each planned order exploded?

______________________________________________________

3. Which indicator is responsible for selecting the alternative BOM and what

setting has been made here?

______________________________________________________





Solution 15: Routing and BOM Selection

Task 1:

Call the stock/requirements list for the material R-F1## in plant 1000, then

call three existing planned orders, one after the other, in the net segment and

check which BOM was selected by looking at the Master Data tab page for

the respective planned order.

1. Have the production dates and the corresponding capacity requirements been

created on the basis of the same routing for all the planned orders?

______________________________________________________

a) Same routing: Yes

2. Which settings in the system have caused these routings to be selected?

Individually:

What value does the selection method indicator in the material master for

material R-F1## have and what does this mean?

______________________________________________________

What Selection ID for detailed planning is set in Customizing for the

existing planned orders (you can find this selection ID in the Customizing

IMG activity Define Scheduling Parameters for Planned Orders)?

______________________________________________________

a) Selection method indicator in the material master: “Blank”

Meaning: The selection is made according to the order quantity.

Selection ID for the detailed planning in Customizing: (Menu

path: Customizing: Production → Material Requirements Planning

→ Planning → Scheduling and Capacity Parameters → Define

Scheduling Parameters for Planned Orders)

The selection ID detailed scheduling 01 is valid for planned orders (any

order type and production controller) in plant 1000.

Using this selection ID, the system searches for a routing with usage 1

(production) and status 4 (released general) as the highest priority (thiscan be checked using the transaction OPEB).






Task 2:

Evaluate the BOM explosion in the planned orders:

1. Call the stock/requirements list for material R-F1## in plant 1000 and

analyze the planned orders you looked at before. On the Master Data tab

page for the respective planned order, find out which BOM was exploded

on which date:

1. BOM: ______________

______________

Date: _____________________

_____________________

2. BOM: ______________

______________

Date: _____________________

_____________________

3. BOM: ______________

______________

Date: _____________________

a) BOM and date: Varies

2. Now analyze the detailed data for the planned orders. On which basic date

was the BOM for each planned order exploded?

______________________________________________________

a) Basic date: The BOMs were exploded on the respective order

start date.

3. Which indicator is responsible for selecting the alternative BOM and what

setting has been made here?

______________________________________________________

a) Criterion for the alternative BOM selection: The alternative selection

field in the material master that is responsible for controlling the

selection has the value “blank” (selection by order quantity), as

you have seen before.





Lesson Summary

You should now be able to:• Set the parameters for selecting the BOM






Unit Summary TSCM40

Unit Summary










• Use the procurement type for in-house production













Unit 6 287 Evaluating and Processing the MRP

Results

Take a look at the functions of the MRP list and the stock/requirements list,

including the corresponding collective evaluations. Focus in particular on days’

supply and receipt days’ supply, exception messages, firming, the rescheduling

check, and the evaluation functions of the order report and pegged requirements.

If necessary, you can work through this unit directly after unit 1.

Unit Overview

The MRP results are usually processed after a total planning run. The aim is to

process problem situations that have led to the creation of exception messages

manually.

The normal tools for this manual processing are the stock/requirements list and

the MRP list with their respective collective accesses. As well as exception

messages, these lists offer a range of functions for processing the planning results:

Rescheduling data, firming, evaluation functions such as order report or pegged

requirements, stock days’ supply and receipt days’ supply.

The stock/requirements list and the MRP list are set up and used in the same

way. However, the detailed functions of the two lists differ. Both lists, with

their various functions, are used not only in operative requirements planning but

also in long-term planning. They are therefore one of the most important tools

for the MRP controller.

Unit Objectives


• Work with the stock/requirements list

• Use the MRP list

• Use navigation profiles

• Deploy the display filter and selection rules

• Use the collective call




Unit 6: Evaluating and Processing the MRP Results TSCM40

• Use the planning table for repetitive manufacturing

• Use production versions

• Interpret exception messages


• Interpret ranges of coverage

• Use the pegged requirements display

• Use the order report

Unit Contents

Lesson: MRP List and Stock/Requirements List... .. .. .. .. .. .. .. .. .. .. .. .. .363

Demonstration: Difference Between the Stock/Requirements List and

the MRP List . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .367Demonstration: Collective Access to MRP Lists andStock/Requirements Lists .... ... ... ..... ... ... .... ... .... .... ... ... .... ... 370Demonstration: Order Report/Order Tree/Pegged Requirements . .373

Exercise 16: Functions of the Stock/Requirements List. .. .. .. .. .. .. .. 377Exercise 17: Display Filter, Selection Rule (Optional) .. .. .. .. .. .. .. .. 385

Lesson: Planning Table ...... .... ... ... ..... ... ... .... ... .... .... ... ... ... .... .389Demonstration: Planning Table ..........................................393

Lesson: Exception Messages .... ... ... ..... ... ... .... ... .... .... ... ... .... ... 398

Demonstration: Exception Messages .. .. .. .. ... .. .. ... ... .. .. .. .. ... ... 401

Demonstration: Rescheduling check .. .. .. .. ... .. .. ... .. ... .. .. .. .. ... ..403Lesson: Additional Evaluation Aids.. .. ... .. .. .. .. ... .. .. ... .. ... .. .. .. .. ... ..407

Demonstration: Stock Days’ Supply and Receipt Days’ Supply .. . .. 410Exercise 18: Collective Display of MRP Lists.. .. .. .. .. .. .. .. .. .. .. .. .. .413

Exercise 19: Rescheduling Check (Optional).. .. .. .. .. .. .. .. .. .. .. .. .. .417


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TSCM40 Lesson: MRP List and Stock/Requirements List

Lesson:

289

MRP List and Stock/Requirements List


Lesson Overview

You evaluate and, if necessary, process the MRP results from two central lists:

The stock/requirements list and the MRP list.

Lesson Objectives







Space for notes

Business ExampleA range of different functions are available in both lists for evaluating and

processing the MRP results. The MRP controller needs to know how to use these.

MRP List and Stock/Requirements List





Figure 135: MRP List and Stock/Requirements List

You can evaluate the planning situation or the result of a planning run by using

the stock/requirements list or the MRP list. You can do this using individual

access or collective access. The current stock/requirements list is a dynamic list

that shows the current levels of stock, requirements, and receipts. You are able

to view any changes as soon as the stock/requirements list is called, or in the

stock/requirements list display screen when the elements are read in real time from

the database using the “Refresh” function. The MRP list displays the result of thelast planning run and is therefore static: Changes made after the planning run are

not displayed. You can determine whether an MRP list is to be created during the

planning run. The basic structure of both lists is the same:

• Links are in the form of a tree for the worklist of the MRP controller.

• Above the list is the header with the material number. You can display

additional information in the header details.

• The list itself contains the individual MRP elements and the corresponding

available quantities.

User-specific settings enable you to adapt the lists to your personal requirements

(see Customizing for the Evaluation of Material Requirements Planning,

“Configure MRP List / Stock/Requirements List”). You can use a customer exit

to display additional data, which you can then access using a function key (see

“Customer Exit: Program Additional Columns” in Customizing).





Functions of the Stock/Requirements List

Functions of the MRP List

The rescheduling check is available in both lists, but the logic in the two lists

is different: The rescheduling check in the MRP list is based on the pegging

function (connection between requirement and receipt elements). In the dynamic

stock/requirements list, there is no pegging and so the rescheduling check occurs

in the same way as the rescheduling check for firmed receipts, that is, based only

on the available quantity.

Figure 136: Functions of the Stock/Requirements List

The stock/requirements list offers several display options: You can display

different dates (the availability date or the goods receipt date, with/without safety

time). You can work with display filters and selection rules, you can work in the

period totals display, and so on. You can define the display accordingly in your

own personal settings. “Period Totals” is a display function in the MRP list andstock/requirements list evaluations that groups the planning results into periodic

buckets (for example, weekly or monthly buckets). In the “Define Period Display

for Period Totals” activity in Customizing, you define which periods are to be

shown in the “Period Totals” display. The periods you select here are shown on

various tab pages in the Period Totals display.





You can process individual MRP elements from the list. Alongside the standard

functions (such as search functions), you also have functions defined on a

user-specific basis that can be accessed through the “Navigation Profile” andpersonal favorites. You can also process the list with a range of user-specific

functions at a material level.

You can analyze the capacity situation from the current stock/requirements list.

For each work center and capacity category, the system displays the available

capacity, the total capacity requirements, and the capacity requirements of this

material per period. Overload situations are highlighted in color. Note that planned

orders that have not been scheduled using detailed scheduling (created by a

planning run with the scheduling indicator 1) do not create capacity requirements.

Figure 137: Functions of the MRP List

The functions in the MRP list are largely identical to the functions in the

stock/requirements list, as far as processing MRP elements or display options

is concerned, for example. Selection rules, however, are only used in the

stock/requirements list. In contrast to the stock/requirements list, you can set a

processing indicator for the MRP list. This indicator serves to highlight lists that

have already been processed by the MRP controller.

You define the display of the header details for the MRP evaluations in the

Customizing IMG activity “Define Screen Sequence for Header Details”. The

header details of the MRP list contain additional data for the planning run. In

particular, they contain the number of exception messages that have occurred

during the planning of a material.

The header details show an overview of master data and transaction data for each

material. This data is grouped together according to topic in individual screens.

The MRP type controls which screens are displayed in the requirements planning





evaluations. To do this, the screen sequences are provided with a key, which is

then assigned to the MRP type. It is therefore possible to display master data for

the evaluation of consumption-based materials that is different to that displayedfor MRP planned materials.

Demonstration: Difference Between theStock/Requirements List and the MRP List

Purpose


System Data






1. Call the stock/requirements list for material R-F1##. First display and

explain the basic structure of the list.

• Display the individual MRP elements

• Variable header

• Overview tree.

Display some special functions and (briefly) explain the following:

• Period totals display

• Displaying, changing, converting MRP elements from the list

• capacity check

• Pegged requirements and order report

2. Change the first planned order from the list, refresh the list: The changed

planned order is displayed.

3. Call up the MRP list for material R-F1##: The change made to the planned

order cannot be seen here.

Display the first planned order from the list in the Detail view: The changed

amount is displayed.

Conclusion: The MRP list is the (static) result of the last planning run.

4. Carry out material requirements planning for material R-F1##: The MRP list

is updated (when you access it again).





Figure 138: Collective Access to Stock/Requirements List

Collective access to the stock/requirements list is possible using a large number

selection criteria. For example, you can display all of the lists for which you are

responsible as MRP controller.

Firstly, a material overview is displayed with all of the selected materials. If you

have set the “Set up Lists in Background” indicator, the following are available

for orientation: Traffic lights, various search functions in the overview and in theindividual lists, and sort functions (also for individual customer segments by

date or number). You can use the search function to select materials by certain

exception messages. You can make user-specific definitions for the display of

traffic lights according to day’s supply violations or exception groups. You can

also define user-specific sort criteria. From the overview, you can go to the

individual lists and process the materials there. For example, if you have used

the search function to select several lists for processing, you can jump from one

list directly into the next list selected.





Figure 139: MRP list collective display

The selection criteria for collective access in the MRP lists are not the same as

those in the stock/requirements lists. Here, for example, the MRP or processing

date and/or the processing indicator for the selection are available.

The orientation guides in the material overview correspond with those in the

stock/requirements list. It is also possible to search for processing indicators or

new exceptions.

Figure 140: Planning segments





The MRP list and the stock/requirements list are divided up into various planning

segments. This means that related MRP elements are also displayed together.

The individual stocks, receipts, and issues are displayed and planned within the

appropriate segment. The MRP calculation takes place within the individual

segments.

Demonstration: Collective Access to MRP Lists andStock/Requirements Lists

Purpose


Hint: The two collective accesses have different selection screens. You

do not, however, have to explain every individual field.

System Data






1. Display the collective access for the MRP lists and explain the variousselection parameters:

• MRP controller

• Product group

• MRP date

• Exception groups

• Processing indicator (only in MRP lists)

• Material data

2. Display the collective access for the stock/requirement lists and explain the

various selection parameters:

• Product group, MRP controller, production line ...

• Material dates

• Planning file entry for MRP

• The “Set up Lists in Background” indicator is necessary if the lists are

to be sorted according to certain criteria and/or the system is to search

in the individual lists.





Point out the settings and functions of the traffic lights and the sort and

search functions.

Material Tree

Worklist tree (you define the criteria for displaying the traffic lights from

the list).

Product groups tree

Figure 141: Material Tree

Displaying the material tree is optional (this can be set in the user settings). Press

the “Material Tree” button.

You can change the layout of the tree and display the following:

• Worklist tree: All materials in the current session are displayed (especially if

the initial access is via collective access).

• Order tree: The individual component requirements for the selected order or

requirement are displayed at several levels (see next page).

• Product group tree: All materials of a product group (only if using collective

access via a product group) are displayed.

You can display the stock/requirements list or MRP list for a material by

double-clicking on the material in the tree.





For the worklist tree, you can set in which order the fields are to be displayed.

User-specific definitions for the traffic lights are also possible. User-specific

sortings and groupings (for example, according to the processing indicator) arepossible. You can search for specific materials (according to exception messages,

for example).

Order Tree

Changed as of R/3 Enterprise, based on the order report

Figure 142: Order Tree

If you work with the order tree in the stock/requirements list or MRP list, the

system displays all component requirements relating to a selected order or

requirement at several levels. This function is based on the order report. If

problems occur during material requirements planning, you are notified by

exception messages.

When you navigate in the order tree, the correct stock/requirements list or MRP

list is displayed in a chart, and the cursor is positioned on the according component

requirement. This way you can quickly get an overview of the stock situations in

all levels of the order structure.





Demonstration: Order Report/Order Tree/PeggedRequirements

Purpose


System Data





Set up instructions: Standard1. Call up the stock/requirements list of material R-F1##, and display and

explain the order report function for the first planned order.

2. Display the order tree for the first planned order (function is the same as that

of the order report).

3. Call the list of the component R-T1## from the order tree; call the pegged

requirements for the first requirement in the list; reproduce the path to the

order.

4. As of R/3 Enterprise: Direct navigation from a requirements element to its

pegged requirement.

Display Filter and Selection Rule

Explain the difference between both groups. One of the main differences between

the two filters is the influence they have on the available quantity.

As of R/3 Release 4.6C, the display filters can be assigned additional selection

criteria such as customer, vendor, ... .

→ Customizing: Production – Material Requirements Planning – Evaluation –

Filter – Define Selection Rules / Define Display Filter





Figure 143: Display Filter and Selection Rule

You define whether selection rules and display filters are to be used when accessing

the list. This is done by choosing the indicator “With filter” in the initial screen, or

in the list itself by choosing the icon “Filter on”, or in the user-specific settings.

Display filters are used in the stock/requirements list and in the MRP list. This

is purely a display function and display filters have no influence on the MRP

elements that are used in the calculation of the available quantity. They are definedin the “Define Display Filters” activity in Customizing.

Selection rules can only be used for the current stock/requirements list. You

define which MRP elements are displayed and which of these elements are used

in the calculation of the available quantity. They enable the analysis in the

stock/requirements list of various planning situations that are different with regard

to the MRP elements that are taken into account. Selection rules have no influence

on the requirements calculation. They are defined in the “Define Selection Rules”

activity in Customizing.

Navigation profileIf you are not already working with it, show the options for using the navigation

profile to branch from the stock/requirements list to other important functions.

The navigation profile function is enhanced by the possibility of defining your own

favorites. To maintain your own favorites, see SAP Notes 312678 (Changeability

of Customizing Tables in the Production System) and 501318 (Authorization

for Maintenance of Own Favorites).





→ Customizing: Production – Material Requirements Planning – Evaluation

– Define Navigation Profiles

Figure 144: Navigation Profile

A navigation profile contains transaction calls for transactions that can be called

directly from the stock/requirements list, or the MRP list. The transactions areeither general, (meaning actions at material level), or they refer to a particular

MRP element.

You define a navigation profile in the Customizing activity “Define Navigation

Profiles” and you can assign yourself to a profile in the user-specific settings

(on the “General Settings” tab page).

In a navigation profile, you can determine any number of transaction calls.

However, the display in the list is limited to five general transaction calls and two

transaction calls per MRP element: The system always displays the first five or

first two transaction calls that are relevant for the context.

For each transaction call, you can pre-assign three parameters for the initial screenof the transaction. You can also connect the offering of a transaction to certain

parameters from the material master: Procurement type, material type, MRP

group, MRP type.

A function similar to the navigation profiles is available with the selection of

personal favorites, where you can also activate up to five general transaction

calls (choose “Environment - Own Favorites”). Apart from that, you can activate

two favorites per MRP element as transaction calls (choose the “*” button in the

details for the MRP element).





Settings that can be made individually

Explain the various user-specific settings that are possible.

Summarize the options already shown and explain other settings that can be made.

New as of R/3 Enterprise: Buffered reading of order report

Figure 145: Settings That Can Be Made Individually ...

You can use your personal settings to specify a number of default display options

for the stock/requirements list and the MRP list.

Your personal settings (as well as your “Own Favorites” in Environment - Own

Favorites) determine the screen that appears when accessing the lists. From the

lists, you can change the various settings at any time - for example, you can show

or hide the overview tree.

You define the screen sequence of the header details in the Customizing for the

MRP type.

A user exit for showing user-specific categories is available.





299 Exercise 16: Functions of the

Stock/Requirements ListExercise Duration: 15 Minutes

Exercise Objectives


• Use the main functions and display options for the stock/requirements list,

• Make your own personal settings for the display.

Business Example

As a member of the project team, you want to familiarize yourself with the display

options that are available for the stock/requirements list and the MRP list.

Task 1:

You check the personal settings with which you can define the screen for the

stock/requirements list and the MRP list and, if necessary, make different settings.

1. From the MRP menu, call the stock/requirements list for material R-F1##

in plant 1000. To view the default settings that were used to access the list,

choose Settings from the menu and then Settings again. The corresponding

data is sorted thematically on several tab pages. What are the names of the

tab pages?

__________________ __________________

__________________ __________________

__________________

2. In what form are the requirements displayed with the existing settings

(Display tab page)?

__________________________________________________

__________________________________________________

3. Does the system display the availability date or the goods receipt date as the

date of an MRP element (Dates tab page)?

__________________________________________________

4. Return to the Display tab page and select the field With header details for

material. Choose Continue to return to the list. Are the header details

now displayed?






______________________________________________________

In the header details, find which strategy group is specified in the material

master:

______________________________________________________

Choose Collapse header details from the list.

Task 2:

You want to call frequently used transactions directly from the current

stock/requirements list. To do this, assign a navigation profile to your user.

1. In the stock/requirement list, choose Environment from the menu and then

Navigation Profile - Assign. Use the F4 help to enter the profile SCM001

in the Navigation Profile field and Copy the entry.

2. Which transaction calls are now displayed above the list header?

__________________ __________________

__________________ __________________

__________________

3. You decide to copy this setting into your personal settings. To do this,

choose Settings again and Save.

4. Exit the stock/requirements list and then call it again. Are the transactioncalls displayed?

______________________________________________________

Task 3:

In the stock/requirements list for material R-F1## (plant 1000), display the

material tree by choosing Show Overview Tree.

1. Which materials are displayed in the overview?

_________________________________________________

_________________________________________________

2. Switch to the stock/requirements list for the material R-B1## by entering

the corresponding material number in the Material field in the list header

and choose Enter.

What materials now display in the material tree?

_________________________________________________






3. Return to material R-F1## by double-clicking on the corresponding material

number in the material tree. Note the information message in the status row:

The displayed list has the status of the given time. Refresh (F6), if necessary!

Select the first planned order in the list and switch to the order report

by executing the Order Report function in the material tree. Confirm the

information message. Which materials are displayed in the material tree?

__________________________________________________

__________________________________________________

__________________________________________________

__________________________________________________

__________________________________________________

What connects these materials?

__________________________________________________

__________________________________________________

4. If you prefer to do so, you can make the display of the material tree a

default setting for the initial view of the stock/requirements list by choosing

Settings and Save. Note that you can choose to display or hide the tree in

the list at any time.





Solution 16: Functions of the

Stock/Requirements ListTask 1:

You check the personal settings with which you can define the screen for the

stock/requirements list and the MRP list and, if necessary, make different settings.

1. From the MRP menu, call the stock/requirements list for material R-F1##

in plant 1000. To view the default settings that were used to access the list,

choose Settings from the menu and then Settings again. The corresponding

data is sorted thematically on several tab pages. What are the names of the

tab pages?

__________________ __________________

__________________ __________________

__________________



Titles of the tab pages:

Display Period Totals

Dates Filter

General Settings

2. In what form are the requirements displayed with the existing settings

(Display tab page)?

__________________________________________________

__________________________________________________

a) Displaying requirements: The requirements are displayed

individually (and are not grouped in days).

3. Does the system display the availability date or the goods receipt date as the

date of an MRP element (Dates tab page)?

__________________________________________________

a) Availability date or goods receipt date: The availability date is

displayed.






4. Return to the Display tab page and select the field With header details for

material. Choose Continue to return to the list. Are the header details

now displayed?

______________________________________________________

In the header details, find which strategy group is specified in the material

master:

______________________________________________________

Choose Collapse header details from the list.

a) Header details: Yes

Strategy group in the material master: Varies according to the

exercise that was carried out last (strategy group 40 or 50).

Task 2:

You want to call frequently used transactions directly from the current

stock/requirements list. To do this, assign a navigation profile to your user.

1. In the stock/requirement list, choose Environment from the menu and then

Navigation Profile - Assign. Use the F4 help to enter the profile SCM001

in the Navigation Profile field and Copy the entry.

a) Menu path: From the list display, choose Environment → Navigation

Profile → Assign

2. Which transaction calls are now displayed above the list header?

__________________ __________________

__________________ __________________

__________________

a) Displayed transaction calls:

Create PIR Interactive MRP

Create CR Planning file

Multi-Level MRP

3. You decide to copy this setting into your personal settings. To do this,

choose Settings again and Save.







4. Exit the stock/requirements list and then call it again. Are the transaction

calls displayed?

______________________________________________________

a) Transaction calls displayed: Yes

Task 3:

In the stock/requirements list for material R-F1## (plant 1000), display the

material tree by choosing Show Overview Tree.

1. Which materials are displayed in the overview?

_________________________________________________

_________________________________________________a) Materials in material tree: Varies. All the materials that you

processed in the current session are displayed. If you access the

material tree with the material R-F1## again, only this material

is displayed.

2. Switch to the stock/requirements list for the material R-B1## by entering

the corresponding material number in the Material field in the list header

and choose Enter.

What materials now display in the material tree?

_________________________________________________

a) Materials in material tree: Material R-B1## is now displayed too.

3. Return to material R-F1## by double-clicking on the corresponding material

number in the material tree. Note the information message in the status row:

The displayed list has the status of the given time. Refresh (F6), if necessary!

Select the first planned order in the list and switch to the order report

by executing the Order Report function in the material tree. Confirm the

information message. Which materials are displayed in the material tree?

__________________________________________________

__________________________________________________

__________________________________________________

__________________________________________________

__________________________________________________

What connects these materials?

__________________________________________________






__________________________________________________

a) Materials in the material tree: In addition to R-F1##, materials

R-B1##, R-B2##, R-B3##, R-B4##, as well as R-T0##, R-T1##,

R-T2##, R-T4##, and R-T5## are displayed.

Reason: These materials are the assemblies and components for the

finished product R-F1## (except for the finished product itself).

The system therefore displays all materials that flow into the

production of the planned order you selected.

4. If you prefer to do so, you can make the display of the material tree a

default setting for the initial view of the stock/requirements list by choosing

Settings and Save. Note that you can choose to display or hide the tree in

the list at any time.






307 Exercise 17: Display Filter, Selection Rule

(Optional)Exercise Duration: 10 Minutes

Exercise Objectives


• Use the display filter and selection rule.

Business Example

As a member of the project team, you want to familiarize yourself with the

functions of the display filter and the selection rule.

Task:

In the stock/requirements list for material R-F1##, choose Filter on. The system

then displays two new fields in the list header where you can define a display

filter or a selection rule.

1. Call the display filter with the description SAP requirements and firmed

receipts. What changes do you see in the display of the MRP elements?

______________________________________________________

2. Do you also see changes in the available quantity that is calculated for eachMRP element?

______________________________________________________

3. Now test the effect of the display filter SAP Only receipts. Which elements

are now displayed?

______________________________________________________

4. Remove the display filter and enter the selection rule with the description

SAP Requirements and Stocks instead.

What available quantity is now displayed at the end of the net planning

segment?

______________________________________________________

Give a reason for this:

______________________________________________________

______________________________________________________

5. Now choose the Filter off button to work without a display filter or a

selection rule.





Solution 17: Display Filter, Selection Rule

(Optional)Task:

In the stock/requirements list for material R-F1##, choose Filter on. The system

then displays two new fields in the list header where you can define a display

filter or a selection rule.

1. Call the display filter with the description SAP requirements and firmed

receipts. What changes do you see in the display of the MRP elements?

______________________________________________________

a) Changes to the display: Only requirements and firmed planned

orders (if they exist) are now displayed.

2. Do you also see changes in the available quantity that is calculated for each

MRP element?

______________________________________________________

a) Changes to the available quantity: No, the available quantity is not

changed by the display filter.Even without displaying planned

orders, the available quantity at the end of the list remains 0 pieces.

3. Now test the effect of the display filter SAP Only receipts. Which elements

are now displayed?

______________________________________________________

a) Effect of the display filter SAP Only make-to-order planning: Only

receipt elements are displayed.

4. Remove the display filter and enter the selection rule with the description

SAP Requirements and Stocks instead.

What available quantity is now displayed at the end of the net planning

segment?

______________________________________________________

Give a reason for this:______________________________________________________






______________________________________________________

a) Quantity available for planning at the end of the net requirements

planning segment: Varies, for example, minus 350 pcs.

Reason: In contrast to display filters, selection rules have an

effect on the calculation of the available quantity. When using

the “Requirements and Stocks” selection rule, only requirements

and stocks are included in the calculation. Receipt elements are

not taken into account. In this example, the available quantity is

merely the total of all requirements and stocks.

5. Now choose the Filter off button to work without a display filter or a

selection rule.






Lesson Summary

You should now be able to:• Work with the stock/requirements list








TSCM40 Lesson: Planning Table

Lesson:

311

Planning Table


Lesson Overview

The planning table for repetitive manufacturing can also be used for normal

“order-based” production. It offers additional options for processing the MRP

results.

Lesson Objectives




Space for notes

Business Example

The planning table for repetitive manufacturing is particularly useful when you

want to check the capacity situation for a production plan. You therefore need tomake preparations for using this tool.





Planning Table

Figure 146: Planning Table / Period-Based Planning

The planning table enables the work scheduler to process the master production

schedule. They can check the production quantities at a glance, change them

if required, and create new production quantities (planned orders). The work

scheduler can also determine the capacity load utilization of the production line

and the availability of the products. Pegging can also be executed by doubleclicking on the capacity requirements.

The planning table was originally developed for repetitive manufacturing. In

repetitive manufacturing, orders are generally planned according to quantity and

period, and this is reflected in the planning table display. You can choose any

planning period (shift, day, week, month, planning calendar period).

In the assignment mode, the work scheduler can assign production quantities

(planned orders) to a production version and therefore to a production line. If this

has already been executed in the MRP run, the work scheduler can also change

assignments that have already been made . Planned orders that have already been

manually assigned to a production line are classified as order type “PE” (runschedule quantities) and are usually firmed. This firming method can either be

limited to the planning time fence or completely deactivated for each material

using the repetitive manufacturing profile.

In the planning table, you can display various key figures (the range of coverage,

the available quantity, and so on) and define the display sequence.

Changes you make in the planning table are not written to the database unless

you save them.





Figure 147: Planning in the Planning Table

The entire planning process for period-based production can be carried out

using the planning table. As well as planned orders, you can also display and

process production orders for discrete production and process orders for process

manufacturing in the planning table. Production and process orders are displayed

in a separate row - PR.ORD. You can make changes to production orders or

process orders by branching directly from the planning table to the orders usingchange mode. It is, however, not possible to execute mass change functions such

as distribution according to shifts for production and process orders.

You can convert planned orders to production orders directly using the “convert

quantities” function in the planning table. The system then shows the line

PR.ORD: , where you can view these orders. You must call the planning table

again in order to be able to make changes to these newly created orders.

In order to display production and process orders in the repetitive manufacturing

planning table you need a valid production version in the material master.





Figure 148: Production Version for the Planning Table

To work with the planning table, there must be at least one production version

in the material master of the corresponding material. The production version

contains data relevant to production that describes a manufacturing process:

• You determine in which period the version can be used in the fields “Valid

from” and “Valid to”. You can enter a lot size range for the version in the

fields “From lot size” and “To lot size”.

• You can define a routing for detailed planning, rate-based planning, and

rough-cut planning. You enter a task list group and a group counter for

detailed planning. The routing entered is then used for capacity requirements

planning.

• You can uniquely assign a particular BOM to the version using the fields

“BOM Usage” and “Alternative BOM”.

• In the “Production Line” field, you define the work center (production line)

for the assignment of production quantities in the planning table. The system

only displays the capacity requirements for this work center in the planning

table. In order to execute capacity planning, this work center (production

line) must be contained in the routing.

Hint: Extra info on discrete manufacturing compared with repetitive

manufacturing





The planning table is actually a tool for planning in repetitive

manufacturing. You should therefore explain at this point the differences

between discrete manufacturing and repetitive manufacturing.

• Order-based production (production in individual production orders)

Period-based production (production with certain quantities per

period)

• Products change frequently

Product produced unchanged over a longer period of time

• Varying sequence of work centers (complex routings)

Constant flow through production lines (simplified routings)

• Semifinished products often put into interim storage

Semifinished products often processed further without interim

storage

• Components staged with reference to order

Components staged at production lines periodically and

anonymously

• Status processing

Reduced control effort (no status processing)

• Completion confirmation (backflush) for individual operations ororders

Completion confirmation based on periods (final backflushing)

• Order-based cost monitoring

Period-based cost monitoring

Demonstration: Planning Table

Purpose


System Data






1. Material R-F1## in plant 1000, production version FV01





Strategy group 40,

Set goods receipt processing time to 0,

Assign a production version in the MRP 4 view (“ProdVersions” button):

Version FV01 (production version 01) is valid from today and until the end

of next year.

In the detail screen:

• Lot size from 1 to 99999 pieces

• Routing: Enter standard routing for the material R-F1## in the detailed

planning row (search for number using material).

• BOM: Enter usage 1 and alternative 1.

• Production line: Work center R-F##.• Save material master

2. Create planned independent requirements for R-F1##: 40 pcs each for the

current month + 2 and the current month + 3.

3. Material requirements planning for R-F1## with scheduling indicator 1

(basic scheduling).

4. From the MRP menu, call the planning table in change mode with the

following initial parameters:

• Material R-F1## (selection by material)

• Period of examination from today until the end of the current month + 3• Period: Week

• Scheduling:

Detailed planning

Basic dates, backward scheduling,

with capacity planning

• Control: Leave blank

• MRP segments: Set all flags

Save settings and call the planning table:

Display the planned orders and explain the capacity data for work center

R-F##.





5. Assign the planned orders to production lines, create planned orders:

• Select the row of planned orders that have not been assigned and switch

on assignment mode: From the first planned order, assign 20 pcs for

the week in which the planned order is executed and 20 pieces in the

last week on the production line R-F## (row FV01 R-F##), assign 40

pcs of the second planned order in the week it is executed.

• Switch off assignment mode. Enter 30 pcs in row FV01 R-F## three

weeks after the second planned order.

Enter --> Planned orders are scheduled and capacity data is generated.

Press save to exit the planning table.

6. Display the planning results in the stock/requirements list. Firmed and

scheduled planned orders with assigned production versions were created,

in particular:

• The first order, originally for 40 pcs, was divided into two orders

with 20 pcs each.

• An additional planned order for 30 pcs was created.

Caution: The available quantity is calculated accurately to the

day and is based on the goods receipt processing time, so that an

apparent “period shift” may appear as far as the available quantities

are concerned. It is therefore practical to set the goods receipt

processing time to 0 (see above).









Explain the advantages of using the planning table in order-based production. Use

a discussion to explain that the technical requirement of the production version

does not represent a genuine constraint (could possibly be extended later in the

direction of SAP APO).





Lesson Summary

You should now be able to:• Use the planning table for repetitive manufacturing






Lesson:

316

Exception Messages


Lesson Overview

Exception messages draw attention to problems in planning. They therefore

constitute an important tool for the MRP controller.

Lesson Objectives




Space for notes

Business Example

The exception messages are set in such a way that the MRP controller can locate

potential problems quickly.

Exception Messages

Exception Messages

In Customizing, you can define the grouping of exception messages into exception

message groups, the priority of exception messages, the texts for exception

messages and exception message groups:

Customizing: Production – Material Requirements Planning – Evaluation –

Exception Messages




TSCM40 Lesson: Exception Messages

Figure 149: Exception Messages

You use exception messages to help monitor the MRP results. Exception messages

provide information about specific operations. They alert you to items that require

your attention (such as a start date in the past, stocks falling below the safety

level and so on). The MRP controller can then select those materials from the

planning results in order to process them manually. Exception messages generally

indicate the following: Newly created order proposals from planning, dates in the

past (for example, opening date), problems with BOM explosion or scheduling,rescheduling proposals. In the Customizing activity “Define and Group Exception

Messages”, you can determine the properties of the exception messages. This

includes the priority (should several exception messages appear), the splitting of

exception messages into exception groups for the selection, and the creation of

the MRP list depending on the exception message created. If several exception

messages apply to one MRP element, the priority assigned to these messages

determines which messages are displayed. The system displays a maximum of

two exception messages for each MRP element. If scheduling problems occur, the

system displays a relevant exception message in the stock/requirements list and

MRP list and displays a rescheduling proposal. If this proposal is accepted, you

must adjust the dates for the receipt element manually. These dates can be adjusted

automatically in the display or evaluation of the planning results (for example, ininteractive planning or when the “Display Result” indicator has been selected in

the initial screen of the planning run): You can accept the rescheduling proposal

here using the “Reschedule Order Proposal” function.





Old/New Exception Messages

Dividing exception messages into old and new messages only works in connection

with the processing indicator. The MRP controller can select only the parts for

which exceptions have occurred. This function applies only to high priority

exceptions (you can see these in transaction MD04).

Figure 150: Old/New Exception Messages

You can differentiate between old and new exceptions in the MRP list if you

work with the processing indicator. For those materials planned in the planning

run, the system compares the exception messages in the new MRP list with the

exception messages in the old list: If one exception message appears in both

lists, it is indicated as an “old” exception message; the remaining exception

messages are considered to be new messages. In the collective list display, you

can specifically select only those lists with new exception messages. When using

collective display of the MRP lists, you can specifically select only lists with new

exceptions and even search for new and old exceptions in the individual lists.

Customizing exception messages is restricted to:

• The description of each exception message

• The priority of each exception message (high numeric value = high priority)

• The unique assignment of the message to an exception group

• Triggering the creation of an MRP list (if this is agreed in the planning run)

• The option to hide the relevant exception message

Note that these settings are valid for all clients.





No provision has been made for exceptions other than the predefined messages.

You can maintain your own description for the exception groups 1 to 7 (of 8).

Demonstration: Exception Messages

Purpose


Customizing exception messages is restricted to:

• The description of each exception message

• The priority of each exception message (high numeric value = high priority)

• The unique assignment of the message to an exception group• Triggering the creation of an MRP list (if this is agreed in the planning run)

• The option to hide the relevant exception message

Note that these settings are valid for all clients.

No provision has been made for exceptions other than the predefined messages.

You can maintain your own description for the exception groups 1 to 7 (of 8).

System Data


Client: See weekly mailUser ID: Own user ID



1. Today: Create a planned independent requirement of 200 pcs for today +1

month.

2. Night: Planning run, forward scheduling; a planned order is created with

exception messages 30 (plan process according to schedule) and 05 (opening

date in the past); display the exception messages: maximum of two messages

for each MRP element; call exception information.

3. Today + 1: Call MRP list using the collective access; Edit the MRP detailscreen: Bring the planned order forward to an earlier order end date that is

still later than the required date, then set the processing indicator.

4. Night + 1: MRP run

5. Night + 2: Call the collective access of the MRP list: Collective access with

the Only With New Exceptions indicator → the system does not call the

MRP list for the material because the new exceptions are the same as the old

ones.The processing indicator also remains set.





6. You may want to draw attention to various SAP Notes regarding the

processing indicator and exception messages (for example, SAP Note

30684).

Rescheduling Check for Firmed Receipts

Explain the purpose of the rescheduling check and the rescheduling horizon and

how they work.

Aside from the rescheduling messages, explain the special cases where the

“tolerance” period overrides the rescheduling message (no rescheduling proposal

or exception message despite too early or too late).

Figure 151: Rescheduling Check for Firmed Receipts

The planning run does not automatically reschedule firmed receipts. If the dates

of these elements no longer fall within the rescheduling horizon, the system

generates the following exception messages:

• “Reschedule in operation”, if the requirements date is before that of the

receipt element, - “reschedule out operation”, if the requirements date is after

that of the receipt element

• “Reverse operation”, when the requirement no longer exists.

Using the rescheduling horizon, you can stop the system from using receipts that

are a long time in the future to cover requirements in the near future. In this case,

the system checks within the period, which is made up of the in-house production





time, goods receipt processing time, and the rescheduling horizon (starting from

the planning date), to see if the existing dates for firmed receipts are still suitable

or whether firmed receipts can be rescheduled in to cover requirements. InCustomizing, you define at plant level which firmed receipts the system checks.

You can maintain the rescheduling horizon and the tolerance values for each plant

and each MRP group. If the system cannot find a receipt element within the

rescheduling horizon that can be rescheduled in or out to cover requirements, it

creates a new one. The rescheduling check of firmed elements is not restricted

to a horizon. In order to reduce the number of exception messages, you can set

tolerance values for rescheduling in and out. The system only creates an exception

message when the difference between the current receipt date and the rescheduling

date exceeds the given tolerance value.

Demonstration: Rescheduling check

Purpose


System Data





Set up instructions: Standard1. Show the Customizing settings for the rescheduling check: Rescheduling

horizon, tolerance value, firmed elements

In the plant parameters:

→ Customizing: Production – Material Requirements Planning – Plant

Parameters – Carry Out Overall Maintenance of Plant Parameters →

Rescheduling

2. In the settings for the MRP group


Groups – Carry Out Overall Maintenance of MRP Groups→

Rescheduling Horizon

Optional demonstration: Rescheduling check

a) In material master R-F1##, plant 1000, enter strategy group 40.

b) Enter sales order: Today in 4 weeks, 10 pieces.

c) Execute planning (generated planned order satisfies requirements in

time).





d) Firm planned order manually.

e) Increase sales order by 90 pieces and execute planning again.

Generated planned order is too late with rescheduling proposal.

f) Reschedule the date of the planned order that is too late to 2 days

before the rescheduling date to explain the tolerance values (change

the basic date, reschedule): The rescheduling message disappears.









Discuss the different possibilities for using exception messages when processing

MRP results (selection using exception messages, creation of MRP lists dependent

on exception messages).





Lesson Summary

You should now be able to:• Interpret exception messages





TSCM40 Lesson: Additional Evaluation Aids

Lesson:

321

Additional Evaluation Aids


Lesson Overview

With the pegged requirement and order report evaluations you can analyze

problems across all BOM levels. You can use ranges of coverage to spot potential

problems at an early stage.

Lesson Objectives





Space for notes

Business Example

You need to make settings for ranges of coverage in such a way that the MRPcontroller can spot future bottlenecks at an early stage.





Additional Evaluation Aids

Figure 152: Stock Days’ Supply

The stock days’ supply enables you to recognize potential shortages at an early

stage. It tells you when the production supply will cease if there are no more

receipts.

In the “Safety stock” field in the Customizing activity “Define Receipt Elements

for Receipt Days’ Supply” you determine for each plant whether the days’ supply

should be defined as the point where stock falls below the physical stock level

(indicator “Safety stock” = “1”) or the safety stock level (indicator = “blank”).

The days’ supply is entered in workdays and anything entered after the decimal

point indicates to what portion of the requirement can still be covered on the

shortage day (for example a days’ supply of 24.6 means that the stock can cover

the requirements for the next 24 days and on day 25 there will be enough stock to

cover 60% of the requirement). You can flag materials with critical days’ supplies

with a red traffic light in the stock/requirements list and in the MRP list.





Figure 153: Receipt Days’ Supply

The receipt days’ supply provides you with information about when the production

supply will cease if certain firmed receipts are delivered. You can define two

different receipt days’ supplies that differ in terms of the selection of the firmed

receipt elements that are taken into account.

You select the firmed receipts to be taken account in the calculation for each plant

in the Customizing activity “Define Receipt Elements for Receipt Days’ Supply”.

In the “Safety Stock” field, you define whether the receipt days’ supply should be

defined as the point where stock falls below the physical stock level or the safety

stock level (see stock days’ supply).





Figure 154: Receipt Days’ Supply 1 and 2 (Example)

You can analyze two different receipt days’ supplies (1 and 2). These two receipt

days’ supplies differ with regard to the selection of their receipt elements. The

selection is defined in the Customizing IMG activity “Define Receipt Elements

for Receipt Days’ Supply”. For different firmed receipts you determine one of

the following: That they are not taken into account (blank), that they are taken

into account for both receipt days’ supplies (“X”), that they are only taken intoaccount for receipt days’ supply 1 (“1”), that they are only taken into account for

receipt days’ supply 2 (“2”).

In the above example, production orders and firmed planned orders are included in

the calculation of receipt days’ supply 1, while the receipt days’ supply 2 provides

information on the extent of the range of coverage taking only the production

orders into account.

Demonstration: Stock Days’ Supply and Receipt Days’Supply

Purpose


System Data










1. Call the stock/requirements list for material R-F1##: Display the stock days’

supply and the two receipt days’ supplies in the header details; if necessary,explain how the ranges of coverage are calculated using goods receipts and

additional planned independent requirements.

2. In Customizing, show how to define the stock days’ supply and receipt days’

supply and include safety stock:

Customizing: Production – Material Requirements Planning – Evaluation –

Define Receipt Elements for Receipt Days’ Supply

Demo example:

Enter “1” in the “Firmed Planned Orders” (FPAUF) column in Customizing,

and likewise enter “1” in the “Safety Stock” column.Warehouse stock 7 pcs; (static) safety stock 5 pcs; create planned independent

requirements: Current week + 2 weeks to current week + 6, each 10 pcs;

planning run, refresh MD04 and explain values for stock days’ supply and

receipt days’ supply (all 3 values are the same);

Convert the first planned order in a production order; fix the second planned

order manually; explain the recalculated values for both receipt days’ supply;

In Customizing, enter “blank” in the “Safety Stock” column; call up MD04

again (refreshing the screen is not enough), and explain the recalculated

value for the stock days’ supply.

Figure 155: Pegged requirement





You can use the “Pegged Requirements” evaluation, which you can access directly

from the stock/requirements list and MRP list, to trace from any BOM level across

other BOM levels which requirements have caused an order proposal and whichindependent requirements (particularly sales orders) are affected by the change in

date or quantity of an order proposal on a lower level.

In the stock/requirements or MRP list, you can navigate directly from the

requirements element to the pegged requirement on the level above. The system

displays the stock/requirements or MRP list of the superordinate level and

automatically positions the cursor on the line of the pegged requirement. This

makes it much easier to find pegged requirements on different MRP levels.

You can call this function from the details display of the requirements element.

The function is available for the following requirements elements: Dependent

requirements, order reservations, stock transfer requirements, stock transfer

reservations.

Figure 156: Order Report

The “Order Report” evaluation enables you to gain an overview of the status

of all BOM levels from the following MRP elements: Sales order, production

order (also collective and process order), and planned order. In this way, you

can recognize problems in the production and procurement of assemblies and

components at an early stage.

You call the transaction directly from the stock/requirements list or MRP list. The

system determines which receipt elements are planned for each MRP element. The

MRP controller is therefore able to check how the production of a certain sales

order is progressing, or if there are missing parts or scheduling problems on a

particular BOM level or for certain components.





327 Exercise 18: Collective Display of MRP

ListsExercise Duration: 10 Minutes

Exercise Objectives


• Call MRP lists using the collective display,

• Use the processing indicator.

Business Example

You want to process the MRP lists for the materials for which you are responsible

as MRP controller, and which were created this week. You want to concentrate

in particular on situations for which rescheduling proposals exist. After having

clarified the situation in production, you change the scheduled dates of the planned

orders according to the rescheduling proposals that are in the MRP list.

Task 1:

You will now learn about an option for collective evaluation of your previous

planning activities. To do this, you use the collective display of MRP lists.

1. Starting from the Evaluation menu, call the MRP List - Collective Display.

Restrict your selection to MRP lists for materials in plant 1000, for which

you are responsible as MRP controller 0##, and for which MRP lists have

been created in the current week. To do this, enter the following in the initial

screen:

Plant: 1000

MRP controller: 0##

MRP date from: Beginning of the week to: Today

Start the selection by choosing Enter .

How many materials were selected?

______________________________________________________

2. The system displays an overview of the materials selected. In other words,

you can see all the materials for the MRP controller 0##.

Choose Select All and Display selected MRP lists in order to display the

corresponding lists in order ( Next Material button).






Which exception messages appear in the MRP lists?

Hint: Double-click on the exception message to view the short

text in the status bar.

______________________________________________________

______________________________________________________

______________________________________________________

Task 2:

In the MRP list for the material R-B2## you notice that no further processing

is necessary.

1. You therefore set the processing indicator for this material in the MRP list.

Then exit the collective display for the MRP list and call the transaction

again. This time, select the option Only unprocessed MRP lists on the

Processing Indicator tab page in addition to the selection from task 1 point 1.

Was the material R-B2## you processed before selected too?

____________________________________________________________





Solution 18: Collective Display of MRP

ListsTask 1:

You will now learn about an option for collective evaluation of your previous

planning activities. To do this, you use the collective display of MRP lists.

1. Starting from the Evaluation menu, call the MRP List - Collective Display.

Restrict your selection to MRP lists for materials in plant 1000, for which

you are responsible as MRP controller 0##, and for which MRP lists have

been created in the current week. To do this, enter the following in the initial

screen:

Plant: 1000

MRP controller: 0##

MRP date from: Beginning of the week to: Today

Start the selection by choosing Enter .

How many materials were selected?

______________________________________________________

a) Menu path: Logistics → Production → MRP → Evaluations → MRP

List - Collective DisplayNumber of materials selected: Varies, for example 12 materials

2. The system displays an overview of the materials selected. In other words,

you can see all the materials for the MRP controller 0##.

Choose Select All and Display selected MRP lists in order to display the

corresponding lists in order ( Next Material button).

Which exception messages appear in the MRP lists?

Hint: Double-click on the exception message to view the short

text in the status bar.

______________________________________________________

______________________________________________________






______________________________________________________

a) Which messages: Varies, for example 42, 44, 30, 10

Hint: Each planning order can contain up to 2 messages - see

details for the planning order

Task 2:

In the MRP list for the material R-B2## you notice that no further processing

is necessary.

1. You therefore set the processing indicator for this material in the MRP list.

Then exit the collective display for the MRP list and call the transaction

again. This time, select the option Only unprocessed MRP lists on the

Processing Indicator tab page in addition to the selection from task 1 point 1.

Was the material R-B2## you processed before selected too?

____________________________________________________________

a) Display the processed material: No





331 Exercise 19: Rescheduling Check

(Optional)Exercise Duration: 15 Minutes

Exercise Objectives


• Interpret the rescheduling proposals

• Carry out the parameterization of the rescheduling check

Business Example

Pumps with the material number T-F1## (## denotes your group number) can be

planned and produced in plant 1000.

Use a small test case for pump T-F1## as an example for the rescheduling check

for delayed firmed elements and interpret the result.

Caution: Note that in this case, you are using pump T-F1##, plant 1000

and not pump R-F1##, plant 1000, which you have been using up to now.

Task 1:

Enter a customer requirement for pump T-F1## in plant 1000.1. In the program planning section, call the transaction for creating a customer

requirement.

Choose the following parameters:

Material: T-F1##

Order quantity: 2 pcs


Required delivery date: Wednesday of the current week +

5 weeks

Choose Enter to confirm your entries and any information messages.


2. Start multilevel single-item planning for your material T-F1##, plant 1000

and interpret the result in the stock/requirements list.






Is there an on-time requirement coverage, that is, is the requirement coverage

element able to cover the requirement on time?

____________________________________________________

3. In the stock/requirements list, define the following manual firming date:

Availability date of the planned order plus 3 working days

Refresh the list. Is the firming of the planned order visible from the list?

_____________________________________________________

Task 2:

The customer subsequently changes the requested delivery date.

1. The new requirements date is now one working day before the originalrequested delivery date.

Change the customer requirement by going to the stock/requirements list

and double-clicking to go to the details. In the item (that is, not in the field

Requested Delivery Date), change the field for the first date accordingly.

Save the customer requirement, return to the stock/requirements list and

refresh it.

Did the postponement take place?

_____________________________________________________

Are you assigned as MRP controller for this postponement, that is, does the

system issue a rescheduling message? Why (not)? To find out, display the

settings for the rescheduling check in the plant parameters (Customizing).

______________________________________________________

______________________________________________________

2. The customer wants to postpone the date by another week (7 calendar days).

Change the date of the customer requirement as before and check the new

situation in the stock/requirements list.


system issue a rescheduling message? Why (not)?

______________________________________________________

______________________________________________________

In this case, would a planning run generate a new on-time procurement ele-

ment? ______________________________________________________

Check your answer by triggering multilevel single-item planning for

T-F1##, plant 1000.






Task 3:

The examination of the rescheduling check for delayed firmed receipts has

terminated. Therefore, remove the test entries:

1. First delete the customer requirement (change mode: Independent

requirements → Delete.

2. In the stock/requirements list, remove the manual firming date ( Edit → Set

firming date → Delete) and refresh the list.

3. Start single item multilevel planning for T-F1##, plant 1000.





Solution 19: Rescheduling Check

(Optional)Task 1:

Enter a customer requirement for pump T-F1## in plant 1000.

1. In the program planning section, call the transaction for creating a customer

requirement.

Choose the following parameters:

Material: T-F1##

Order quantity: 2 pcs


Required delivery date: Wednesday of the current week +

5 weeks

Choose Enter to confirm your entries and any information messages.




2. Start multilevel single-item planning for your material T-F1##, plant 1000and interpret the result in the stock/requirements list.

Is there an on-time requirement coverage, that is, is the requirement coverage

element able to cover the requirement on time?

____________________________________________________


Multi-Level Single-Item Planning

Menu path: Logistics → Production → MRP → Evaluations →


On-time requirement coverage: In general, there is an on-timerequirements coverage. Minor differences are possible, for example,

if the relevant Wednesday is a public holiday. In this case, the

requirement coverage element is made available earlier.

3. In the stock/requirements list, define the following manual firming date:

Availability date of the planned order plus 3 working days

Refresh the list. Is the firming of the planned order visible from the list?






_____________________________________________________



Edit → Set Firming Date

Firming: The manual firming date is displayed. The planned order

in the relevant firming interval is flagged as firmed (*).

Task 2:

The customer subsequently changes the requested delivery date.

1. The new requirements date is now one working day before the original

requested delivery date.

Change the customer requirement by going to the stock/requirements list

and double-clicking to go to the details. In the item (that is, not in the field

Requested Delivery Date), change the field for the first date accordingly.

Save the customer requirement, return to the stock/requirements list and

refresh it.

Did the postponement take place?

_____________________________________________________


system issue a rescheduling message? Why (not)? To find out, display the

settings for the rescheduling check in the plant parameters (Customizing).

______________________________________________________

______________________________________________________



Postponement: The postponement took place. However, the system

does not issue a rescheduling message in this case since the scale

of the postponement (1 working day) is still within the tolerance

interval allowed for the rescheduling check in Customizing.

Menu path: Customizing (transaction SPRO)→

F5→

Production→

Material Requirements Planning → Plant Parameters → Carry Out

Overall Maintenance of Plant Parameters

Maintain → Plant 1000 → Rescheduling

The tolerance value for bringing forward a requirement is 2

working days. Therefore, there is no need for a rescheduling

message (yet).






2. The customer wants to postpone the date by another week (7 calendar days).

Change the date of the customer requirement as before and check the new

situation in the stock/requirements list.


system issue a rescheduling message? Why (not)?

______________________________________________________

______________________________________________________

In this case, would a planning run generate a new on-time procurement ele-

ment? ______________________________________________________

Check your answer by triggering multilevel single-item planning for

T-F1##, plant 1000.

a) You postpone the date by another week: Yes, you are assigned to the

postponement. A postponement of 8 days is no longer allowed

according to the parameterization in the plant parameters and

leads to a rescheduling message. The MRP controller can tell what

the date of the procurement proposal should be.

A new planning run does not lead to a new procurement proposal

because the two elements (requirement and delayed requirement

coverage element) belong together.

Menu path: Logistics → Production → MRP → Planning → Multilevel


Task 3:

The examination of the rescheduling check for delayed firmed receipts has

terminated. Therefore, remove the test entries:

1. First delete the customer requirement (change mode: Independent

requirements → Delete.


Demand Management → Customer Requirements → Change

2. In the stock/requirements list, remove the manual firming date ( Edit → Set

firming date→

Delete) and refresh the list.



3. Start single item multilevel planning for T-F1##, plant 1000.







Lesson Summary

You should now be able to:• Interpret ranges of coverage






Unit Summary TSCM40

Unit Summary



















1. The planned orders that are displayed in the planning table cannot be seen in

the stock/requirements list.


□ True

□ False

2. Which of the following problems can be displayed using exception messages?


□ A Scheduling delays in material requirements planning

□ B Failed ATP check

□ C Unforeseen change of MRP controller

□ D Delayed arrival of production operators





340Answers

1. The planned orders that are displayed in the planning table cannot be seen in

the stock/requirements list.

Answer: False

Like other documents, planned orders can also be processed using a number

of different transactions: Manual change, stock/requirements list, MRP list,

planning table, and so on.

2. Which of the following problems can be displayed using exception messages?

Answer: A

Exception messages point out problems in material requirements planning.

They usually refer to individual MRP elements.




Unit 7 341 Overview of SAP APO-PP/DS

In this part of the course, you work (as an exception) with the extended planning

functions in APO-PP/DS. These are used mainly when the relevant planningaspects cannot be mapped in ECC. Emphasize that this unit is merely intended

to provide an overview, and will not provide the participants with instructions

on how to set up planning in PP/DS. To learn this, they would need to attend

the customer course SCM250.

Unit Overview

While the “standard” planning functions are still available in ECC (ECC MRP),

APO-PP/DS provides additional options for Production Planning and Detailed

Scheduling in the SCM system. Planning using APO is normally executed in

cross-industry applications in ECC too, which means that the SCM-APO functionscan only be implemented practically in connection with ECC or another executing

system. The master data required for planning is also generally transferred from

ECC to APO.

Unit Objectives


• Name the most important basic features of PP/DS planning

• Name and characterize the master data for PP/DS planning

• Manage and characterize requirements and their behavior in DemandManagement in APO

• Describe the CTP (Capable-to-Promise) scenario

• Name the planning procedure

• Describe and implement the multilevel planning run

• Interpret pegging

• Assess the cases for using the product planning table and the detailed

scheduling planning board

• Characterize the optimizer




Unit 7: Overview of SAP APO-PP/DS TSCM40

Unit Contents

Lesson: Introduction to SAP APO-PP/DS ...................................429Demonstration: APO-DP, SNP and PP/DS .............................434

Lesson: Master Data Overview ...............................................439Demonstration: Master Data Overview. .. .. .. ... .. ... .. ... .. .. .. .. ... ... 443Exercise 20: Master Data Overview .. .. .. .. .. ... .. ... .. ... .. .. .. .. ... ... 445

Lesson: Demand Management with APO PP/DS ... .. .. .. .. .. .. .. .. .. .. .. .461Demonstration: Planning with Final Assembly (Strategy 20) . . . . .. . .. 464Exercise 21: Planning with Final Assembly in APO-PP/DS........... 467

Lesson: Production Planning with APO PP/DS............................. 483Exercise 22: Executing the Production Planning Run (Optional) ....489

Lesson: Selected Planning Tools in APO PP/DS .. .. .. .. .. .. .. .. .. .. .. .. .. .497Demonstration: Period-Based Planning in the Product Planning Table

(Optional) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500


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TSCM40 Lesson: Introduction to SAP APO-PP/DS

Lesson:

343

Introduction to SAP APO-PP/DS


Lesson Overview

The participants will gain an overview of planning with APO-PP/DS and its basic

features.

Lesson Objectives



Space for notes

Business Example

Your company is implementing production planning and detailed scheduling using

APO-PP/DS. You use the example of the Precision Pump Company to familiarize

yourself with the functions.

SAP APO 3.1 and SAP SCM 4.0*

Up to Release 3.1, SAP APO was managed as an independent system. As of

Release 4.0, the functions of the APO system are integrated as a component of

the SCM system.





Figure 157: SAP Supply Chain Planning Components

Supply Chain Planning mainly uses the following SAP components: SAP ECC,

SAP SCM (including APO, Advanced Planning and Optimization), SAP BW

(Business Information Warehouse).

The interfaces used for integrating ECC with BW or APO are provided with a

relevant plug-in. The interface between ECC and APO is called the Core Interface

(CIF).

Supply Chain Planning at a Glance

An overview of the whole Supply Chain Planning process is shown here. You can

refer to this slide to clarify how each planning function fits into the overall context.





Figure 158: Supply Chain Planning at a Glance

Supply Chain Planning is usually divided into several steps that can be executed

by various components in ECC and/or APO. It is possible and advisable to

integrate these two systems and use both for planning. System integration takes

place using the CIF interface (CIF: Core Interface).

Demand Planning (used, for example, to derive a future demand program from thedemand figures in the past) can either be executed in ECC in Flexible Planning

(with the special case of standard SOP - Sales and Operations Planning), or

in APO in Demand Planning.

Actual Demand Management takes place in ECC. However, planned independent

requirements can also be derived from APO-DP.

Sales orders are always created in the ECC system. A global ATP check of the

sales order can be performed in APO (this can also be integrated with PP/DS).

Cross-plant planning is possible with Supply Network Planning in SAP APO.

Material requirements planning and capacity planning can be executed in ECC

or APO.

Production execution, in other words, the processing of manufacturing orders

(production or process orders), takes place in Manufacturing.





Production Planning and Detailed Scheduling at a Glance

Note that planned independent requirements can also be transferred from APO-DP

to ECC (Transfer of Planned Independent Requirements). This transfer is made

using the “Transfer of independent requirements” function from APO Demand

Planning, not the Core Interface, however.

Independent requirements are the starting point for production planning in

APO-PP/DS: Sales orders are created in the ECC system and transferred from

there to APO for planning. Planned independent requirements can be created in

ECC (Demand Management). However, they can also be derived from APO-DP.

Stock transfer requirements can be derived from cross-plant planning within

APO-SNP and then covered using PP/DS. You can also convert SNP plannedorders directly into PP/DS planned orders.

Production execution, in other words, the processing of manufacturing orders

(production or process orders), takes place in Manufacturing. Manufacturing takes

place mainly in ECC.

Figure 159: Demand Program in the Production Plant

The demand program, which has to be covered by PP/DS in the plant, is

determined using planned independent requirements, sales orders, and stock

transfer requirements.

Planned independent requirements may come from ECC Demand Management or

from APO Demand Planning. Sales orders are created in Sales and Distribution

in ECC (ECC SD) and stock transfer requirements can be derived from APO

Supply Network Planning or from ECC.





Time Relationship Between PP and DS

With in-house production, the “boundary” between PP and DS can be within the

planning time fence. In practice, however, explicit detailed scheduling is avoided

a lot of the time.

Figure 160: Time Relationship Between PP and DS

There is not only a business connection between production planning and

detailed scheduling but also a time connection. The PP/DS horizon can be used

to distinguish both areas in the short-term horizon from medium to long term

planning methods such as SNP. Within the PP/DS horizon, production planning

(PP) principally stands for lot-size-based planning in the sense of quantity-based

material requirements planning. The actual realizability/feasibility is generally

only determined during capacity loading (DS) within a short time frame (in which

production is also to be carried out), which, in many cases, can be roughly

characterized using the planning time fence. The planning time fence can

differentiate the quantity planning area of responsibility (MRP function) from theactual detailed scheduling by preventing the MRP run from changing elements

within the planning time fence. However, detailed scheduling with respect to

dates can take place.

PP planning is processed using interactive tools (such as the product view) and PP

heuristics. These calculate the net requirements and map the lot-sizing procedures.

This planning is infinite, and consequently does not take overloads on resources

into account.





Detailed scheduling for sequencing can then take place interactively using the

detailed scheduling planning board. In addition, DS heuristics and the PP/DS

Optimizer are available as automated resources.

In the event that Detailed Scheduling with PP planning specifications does not

lead to feasible plans, iterations may be used (for example, repeating Production

Planning with different constraints, new Detailed Scheduling).

Demonstration: APO-DP, SNP and PP/DS

Purpose

Hint: This demonstration should describe a practical overall planningprocedure in APO from DP to PP/DS. This is equivalent to what the

participants would normally learn in the SCM200 course. There are

restrictions with regard to the clients that can be used in APO Demand

Planning: Certain functions (for example, data extraction from ECC) can

currently only be executed in client 800. However, this demonstration

should work in clients other than client 800 too. In this demonstration,

use a product that is not being used by any of the participants and that

will not be used in any demonstrations later in the course. Use group

number 25 as an example.

System Data






1. Execute Interactive Demand Planning, select APO Product T-F225

(version 000), and explain the “Load Data” function.

2. Display and explain the historical data, and execute the forecast. Correct

the forecast: 100 pc. for current month + 3.

3. Display how the forecast data is allocated to locations 1000, 2400, 2500 (for

a better overview, select the Forecast key figure only). Then choose Save.

4. Call transaction “Release to SNP” and use the RELEASE variant to simplify

data entry. Create the following settings:

Planning area: SALES

Planning version (source): 000

Key figure: FINFOR





Planning version (target): 000

Category: Leave blank (no entry)

Horizon: From today to today + 3 months

Daily buckets profile: Delete (leave blank)

Product: T-F225

Execute the release.

Display the result of the release for location 1000 in the product view.

5. Call Interactive Supply Network Planning. Select APO location product

T-F225 and load the data for location 1000.

Explain the planned independent requirements display (forecast key figure)and point out that no receipts have been planned up to now.

6. Execute the heuristic (network).

Display the planning results in the product view for location 1000 and

explain them: In addition to the planned independent requirements, the

PP/DS horizon also contains stock transfer requirements.

7. Convert the next SNP planned order in location 1000 to a PP/DS order

(from the order).

8. Display and evaluate the capacity requirements generated by the resource

WT-L25_1000_001 in the same way as the settings on the slide “Order

and Resource Evaluations”.

Advantages of Production Planning and Detailed Scheduling in APO-PP/DS

• To-the-minute material requirements planning (hours, minutes) for

dependent requirements too

• Advanced options in capacity planning

• Multilevel make-to-order planning with CTP

• Multilevel view of material and capacity availability (pegging)

• Optimization algorithm within the limits of detailed scheduling(minimizing setup times, setup costs, date delays, alternative selection

of resources, ...)

• Dynamic exception messages (alerts)

Simultaneous material and capacity requirements planning with CTP: You

can define resources as “finite” resources in the resource master. With finite

scheduling, order operations are only created on these resources if there is





sufficient capacity for the order quantity on the relevant date. If insufficient

capacity is available, the system searches for a new date when the order operation

can be dispatched, taking into account the capacity situation.

To-the-minute time planning: Dependent requirements and orders are created

with time specifications.

Machine loading optimization: Orders with order sequences that are not optimal

may have been created in planning over a period of time. You can therefore change

the sequence and resource assignment of existing orders in the optimization run.






Discuss with the participants the advantages and disadvantages of simultaneous

quantity and capacity planning, and work towards the recommendation that these

two processes are performed separately, if possible, in APO too.




Draw attention to the various sub-functions in APO and their transitions. Remind

the participants of the key features of APO-PP/DS and compare these with their

expectations.





Lesson Summary

You should now be able to:• Name the most important basic features of PP/DS planning




TSCM40 Lesson: Master Data Overview

Lesson:

349

Master Data Overview


Lesson Overview

A brief overview is provided of the master data required for APO-PP/DS. For the

most part, the master data is maintained in ECC.

Lesson Objectives



This lesson aims merely to provide an overview (SCM200/SCM210). You should

therefore not get caught up in details or spend too much time on it.

Business Example

The master data for the use of APO-PP/DS and integration with ECC has already

been predefined and is verified.

Figure 161: MRP Type “X0” and Integration





Planning is not necessarily executed for all materials in APO. For example,

planning for critical materials may take place in APO, while less critical materials

(such as consumption-controlled purchasing materials) may still be planned onlyin ECC.

Materials that have been planned in APO cannot be planned again in ECC – the

planning result from APO is transferred directly to ECC in the form of planning

orders or production orders. However, for materials that have a BOM, dependent

requirements can be generated in ECC for components that are not relevant for

APO. You therefore assign a special MRP type to these materials with the MRP

procedure “X” (“without MRP, with BOM explosion”). (This MRP procedure is

available as of release 4.0. If you work with earlier releases, use MRP type “P4”

with a planning time fence of 999 days).

It is also possible to use the MRP type X0 to select materials relevant for SAP

APO in the integration model. If you give materials that are to be planned in

APO a special plant-specific material status, you can use the material status to

restrict the selection further.

Master and transaction data can be transferred between ECC and SCM if there

is an active integration model for this.

An integration model is uniquely defined by its name and application. It is

possible and practical to create several integration models with the same name but

as different applications (for material masters, resources, transaction data, ATP,

and so on). As a rule, make sure that the data pools of your integration models are

not too big, since this makes error handling much easier.

Figure 162: Product Master





The product master represents the mapping of information relevant for planning

from the material master. The majority of fields (for example, procurement type)

are maintained from ECC (maintenance in ECC, transfer to CIF, mapping to theAPO product master). Only fields that have no equivalent in ECC (for example,

the PP/DS horizon) are maintained in the APO product master directly.

Figure 163: Available Capacity for Planning in APO-PP/DS

ECC work centers or resources for which capacity planning is to take place in

APO-PP/DS must be included in an active integration model. The corresponding

APO resource is created the first time you activate this. As of SCM 4.0 and

Plug-in 2003.1, there are various options for defining the available capacity for

planning in APO-PP/DS:

• Option 1: You maintain the available capacity in APO. Only the header data

of the work center capacities (for which a change transfer is possible) is

transferred from ECC. Intervals of available capacity that exceed this overall

capacity are maintained in APO. With this option, you can define whether

the APO resources are to be created as single resources, multi-resources, or

mixed resources in the ECC work center capacity or in transaction CFC9.• Option 2: You maintain the available capacity entirely in ECC. Intervals of

available capacity created in ECC are therefore used for planning in APO

(“external capacity”). Any intervals of available capacity that are maintained

in APO are irrelevant for planning. However, any downtimes that may have

been defined are taken into account. Resources have to be included in an

active integration model for this procedure too. As with the case above, you

can determine whether the APO resources are to be created as single, multi

or mixed resources.





Figure 164: ECC Production Version and APO-PPM or PDS

For the CIF transfer of routings and bills of material to APO as a production

process model (PPM) or production data structure (PDS), the material master

of the corresponding material must contain a valid production version. The

production version determines a manufacturing process by specifying a routing

and a bill of material.

Several production versions can be defined in the ECC material master (for

example, for different lot size intervals). Each of these production versions is

transferred to APO as an individual PPM/PDS.

Figure 165: Structure of a PDS or PPM





Prerequisites for switching to alternative resources:

• For each activity in an operation, you have stored more than one mode with

alternative resources in PPM or PDS that can be used for carrying out the

activity.

• You have assigned the same priority to linked modes.

In general, these alternatives are not equivalent to one another. You might prefer

to operate a fast, expensive special machine to full capacity rather than the slower,

cheap alternative machine. You therefore need to assign priorities to the modes.

Priority A is the highest priority. Assign priority Z to the modes you only want to

schedule manually in the DS planning board.

When creating an order, the system automatically selects the mode in accordance

with the priority and availability date. In the case of the DS planning board, you

select the mode manually.

If a mode (such as mode 1 in the example) is deselected using Drag & Drop

during rescheduling, the other activities in the same mode are also deselected.

Demonstration: Master Data Overview

Purpose

Overview demo, master data review

Use of material/product T-F200, plant/location 1000

System Data






1. In ECC, open the material master, show MRP planning type X0 and explain

the meaning

2. In ECC, open CFM2 and show the active integration model for T_PUMP0030

(or CFM5 for a filter object search)

3. In APO, open the product and display it

4. In ECC, show work center T-L25, plant 1000 and its capacities

5. In APO, open the associated resource and explain

6. In ECC, show production version 0001

7. In APO, open the production data structure and display it





8. Optional: Call and display production process model in APO





355 Exercise 20: Master Data Overview


Exercise Objectives


• Name and describe the basic master data necessary for PP/DS

Business Example

Production planning and detailed scheduling are executed for pump T-F2## (## is

your group number) and its components T-B1##, T-B22##, T-B3## and T-B4##

in plant 1000 in APO-PP/DS.

APO is used in conjunction with ECC. The master data required for production

planning in APO has already been transferred from ECC.

Gain an overview of the master data structure.

Task 1:

The Core Interface (CIF) is used to integrate planning in APO and ECC. As a

representative sample, check material T-F2## (## = your group number) with

regard to the master data settings and the transfer properties.

1. First, view the material master for T-F2##, plant 1000 in ECC. Which MRP

type is entered for the view MRP 1?

2. What is the consequence of this setting?






3. Note the entry for the scheduling margin key for the view MRP 2. What

float before and float after production does this scheduling margin key (F4

help) provide for and why?

4. Proceed to the view MRP 4. Has a production version been defined for

the production of the end product?

5. Is a production version required in the ECC material master in order to

transfer the ECC master data for planning production to APO-PP/DS?

6. What is the result of the CIF transfer of an ECC production version to APO?

Task 2:

Use the Filter Object Search transaction in ECC, which you can start from the

Core Interface Advanced Planner and Optimizer menu. Check that the followingmaster or transaction data objects are contained in an active integration model

(select the relevant data objects after you start the transaction):






Material master T-F2## in plant 1000 (enter the material as a general selection

option)

Storage Loc.Stk

Plnd ind. reqmts

Planned Orders

Execute the selection. On the next screen, you see that four filter objects have

been selected.

1. Which integration models contain these filter objects (take note of the model

name and application)?

Material Master:

Storage Loc.Stk:

Planned independent

requirements:

Planned Orders:

2. Check in the same way whether material T-T3## in plant 1000, which

is in the BOM for the finished product, is contained in an active model.

(To do this, make a new selection for this filter object.) Is this material

APO-relevant?

3. What are the implications of this for planning the pump in APO and ECC?






Task 3:

You have just established that planned independent requirements (for example)

for material T-F2## in plant 1000 (and also the material itself) are contained in

an active integration model.

1. So, would a planned independent requirement created in ECC be transferred

to APO?

2. Does this type of transaction data transfer from the ECC system have to

be triggered periodically?

Task 4:

Then display the APO product master for product T-F2##, location 1000.

1. Which PP/DS horizon is set?

2. What form of plan explosion does the product master provide for?






3. Which planning group does this product belong to?

4. Which lot-sizing procedure is used for this product?

5. In accordance with which requirements strategy is this product planned?

Task 5:

You have previously established that the mapping of the routing and the BOM

should not be carried out with production process models, but with productiondata structures (“Plan explosion” field in the product master). Now view the

production data structure for T-F2##, location 1000, planning version 000.

1. Which output and input products can be seen here?

2. To which activities is a setup key specifically assigned and whatdescription/meaning does this have?






3. What is the associated resource?

4. What is the time expenditure for the “Produce” step of this operation?

Task 6:

Then display the resources to be used to produce pump T-F2##.

Call up the Resource transaction and select these resources as follows:

Resource: WT-*##_1000* (## = your group number)

Location: 1000 1000

Planning version: 000 000

With this selection, a series of single resources, and multi-mixed resources is

displayed. These are partly used in the production of the assemblies and partlyused during the final assembly. In the following, only the resources of the final

assembly are to be taken into consideration.

1. Take note of which of the following resources are single resources and which

are multi-mixed resources.

Single/Multi

WT-M##_1000_002

WT-V##_1000_002

WT-L##_1000_001

WT-L##_1000_002

WT-E##_1000_001

WT-E##_1000_002






WT-F##_1000_002

WT-P##_1000_001

WT-P##_1000_002

The resources required for planning were transferred from ECC to APO.

Find the available capacity that has been defined for the resources.

To do this, first determine which basic settings have been made in the

“Change transfer for master data” Customizing step in the CIF Customizing

in ECC.

2. Are changes to work center capacities transferred online?

3. Is “external capacity” used to maintain the available capacity? Does this

apply to all resources?

4. Now examine in more detail which capacity planning settings are relevant

for planning machine capacity 001 of paint shop T-L## in plant 1000

(APO resource WTL##_1000_001) in PP/DS.

First, check whether the available capacity is defined externally for theresource in question. You have already established that the use of “external

capacity” is set for each resource (see above). Therefore, display resource

WT-L##_1000_001. Is the external capacity used?






5. Which standard available capacity is entered?

6. Have capacity variants (that differ from the standard available capacity)

been defined?

7. Display the relevant ECC work center capacity. Which standard available

capacity is defined here?

8. Have intervals of available capacity been defined?

9. If intervals of available capacity were defined, would they affect planning

in APO?





Solution 20: Master Data Overview

Task 1:

The Core Interface (CIF) is used to integrate planning in APO and ECC. As a

representative sample, check material T-F2## (## = your group number) with

regard to the master data settings and the transfer properties.

1. First, view the material master for T-F2##, plant 1000 in ECC. Which MRP

type is entered for the view MRP 1?

Answer: Menu path: Logistics → Production → Master Data → Material

Master → Material → Display → Display Current.

MRP type: The X0 MRP type is entered.

2. What is the consequence of this setting?

Answer: Effect: The X0 MRP type causes the relevant material to be

excluded from ECC planning. In contrast to the MRP type ND (no

planning), X0 allows a BOM explosion, which is particularly important

if a material is planned in APO but creates dependent requirements that

are to be planned in ECC.

3. Note the entry for the scheduling margin key for the view MRP 2. What

float before and float after production does this scheduling margin key (F4

help) provide for and why?

Answer: The scheduling margin key AP1 is entered with float before

production 0 and float after production 0. APO does not recognizethese buffer times, as a distinction is not made between basic dates and

production dates in APO. APO only recognizes production dates.

4. Proceed to the view MRP 4. Has a production version been defined for

the production of the end product?

Answer: Yes, several production versions have been defined.

5. Is a production version required in the ECC material master in order to

transfer the ECC master data for planning production to APO-PP/DS?

Answer: Yes, to be able to transfer routing and BOM as PPM

(production process model) or PDS (production data structure) to SAPAPO, they must be assigned to a production version.

6. What is the result of the CIF transfer of an ECC production version to APO?

Answer: The ECC production version can be transferred to APO as

PPM or PDS (selection to be set when creating the integration model).






Task 2:

Use the Filter Object Search transaction in ECC, which you can start from the

Core Interface Advanced Planner and Optimizer menu. Check that the following

master or transaction data objects are contained in an active integration model

(select the relevant data objects after you start the transaction):

Material master T-F2## in plant 1000 (enter the material as a general selection

option)

Storage Loc.Stk

Plnd ind. reqmts

Planned Orders

Execute the selection. On the next screen, you see that four filter objects have

been selected.

1. Which integration models contain these filter objects (take note of the model

name and application)?

Material Master:

Storage Loc.Stk:

Planned independent

requirements:

Planned Orders:

Answer: Menu path: Logistics → Central Functions → Supply Chain

Planning Interface → Core Interface Advanced Planner and Optimizer →

Integration Model → Filter Object Search

Integration models: After selection, choose a filter object, select it,

and choose “Find Model”. Observe whether or not the models found

are actually active.

The material master is contained in the active T_PUMP0030/MD I

model, while storage location stock, planned independent requirements

and planned orders are contained in the T_PUMP0030/TD model.

2. Check in the same way whether material T-T3## in plant 1000, which

is in the BOM for the finished product, is contained in an active model.

(To do this, make a new selection for this filter object.) Is this material

APO-relevant?

Answer: No, the material is not contained in any active model and is

therefore not relevant for APO.






3. What are the implications of this for planning the pump in APO and ECC?

Answer: This means that this material is planned in ECC but dependent

requirements from the APO planning of the material in question are

taken into account if required.

Task 3:

You have just established that planned independent requirements (for example)

for material T-F2## in plant 1000 (and also the material itself) are contained in

an active integration model.

1. So, would a planned independent requirement created in ECC be transferred

to APO?

Answer: Are planned independent requirements created in ECCtransferred to APO? Yes, planned independent requirements created in

ECC for material T-F2## in plant 1000 are transferred to APO.

2. Does this type of transaction data transfer from the ECC system have to

be triggered periodically?

Answer: No, the transfer takes place automatically.

Task 4:

Then display the APO product master for product T-F2##, location 1000.

1. Which PP/DS horizon is set?

Answer: SCM menu path: Advanced Planning and Optimization →

Master Data → Product → Product

“PP/DS”, “Lot Size” and “Demand” tab pages

A PP/DS horizon of 60 days is entered. Note: Let your instructor know

if a different horizon is entered here. The master data will then be

adjusted according to the instructions in the trainer manual.

2. What form of plan explosion does the product master provide for?

Answer: The production data structure is used (plan explosion “5”).

3. Which planning group does this product belong to?

Answer: The planning group is ## (your group number).

4. Which lot-sizing procedure is used for this product?

Answer: The exact lot size is used.

5. In accordance with which requirements strategy is this product planned?

Answer: The planning is carried out with requirements strategy 20,

planning with final assembly, which corresponds to ECC strategy 40.






Task 5:

You have previously established that the mapping of the routing and the BOM

should not be carried out with production process models, but with production

data structures (“Plan explosion” field in the product master). Now view the

production data structure for T-F2##, location 1000, planning version 000.

1. Which output and input products can be seen here?


Master Data → Production Data Structure (PDS) → Display Production

Data Structures

(“Components” tab page) output: T-F2##, input: T-B1##, T-B22##,

T-B3##, T-B4##

2. To which activities is a setup key specifically assigned and whatdescription/meaning does this have?

Answer: (“Activities” tab page) A setup key 10 has been assigned to

operation 30, comprising the two activities Set up and Produce. This

describes the color that is used in this painting step (white).

3. What is the associated resource?

Answer: (Detail on activity) WT-L##_1000_001

4. What is the time expenditure for the “Produce” step of this operation?

Answer: (Detail for activity) 1200 seconds per base quantity (note: this

is in the component overview for the end product: 1 piece).






Task 6:

Then display the resources to be used to produce pump T-F2##.

Call up the Resource transaction and select these resources as follows:

Resource: WT-*##_1000* (## = your group number)

Location: 1000 1000

Planning version: 000 000

With this selection, a series of single resources, and multi-mixed resources is

displayed. These are partly used in the production of the assemblies and partly

used during the final assembly. In the following, only the resources of the final

assembly are to be taken into consideration.

1. Take note of which of the following resources are single resources and whichare multi-mixed resources.

Single/Multi

WT-M##_1000_002 M

WT-V##_1000_002 M

WT-L##_1000_001 S

WT-L##_1000_002 S

WT-E##_1000_001 M

WT-E##_1000_002 M

WT-F##_1000_002 M

WT-P##_1000_001 M

WT-P##_1000_002 S

The resources required for planning were transferred from ECC to APO.

Find the available capacity that has been defined for the resources.

To do this, first determine which basic settings have been made in the

“Change transfer for master data” Customizing step in the CIF Customizing

in ECC.

Answer: (See table)






2. Are changes to work center capacities transferred online?

Answer: Menu path: ECC Customizing: Transaction SPRO → F5 →

Integration with Other mySAP.com Components → Advanced Planning

and Optimization → Basic Settings for the Data Transfer → Change

Transfer → Change Transfer for Master Data → Configure Change

Transfer for Master Data

Yes, changes to work center capacities are transferred online because the

“Immediate transfer” indicator is set.

3. Is “external capacity” used to maintain the available capacity? Does this

apply to all resources?

Answer: The external capacity is set for each resource and therefore

must be checked separately for each individual resource.

4. Now examine in more detail which capacity planning settings are relevant

for planning machine capacity 001 of paint shop T-L## in plant 1000

(APO resource WTL##_1000_001) in PP/DS.

First, check whether the available capacity is defined externally for the

resource in question. You have already established that the use of “external

capacity” is set for each resource (see above). Therefore, display resource

WT-L##_1000_001. Is the external capacity used?


Master Data → Resource → Resource

No, external capacity is not used.

5. Which standard available capacity is entered?

Answer: A work time of 7:00 to 15:00 with a break of 1 hour and 100%

resource utilization is set.

6. Have capacity variants (that differ from the standard available capacity)

been defined?

Answer: (Capacity Variants button) No capacity variants that differ

from the standard available capacity have been defined.

7. Display the relevant ECC work center capacity. Which standard available

capacity is defined here?Answer: Menu path: Logistics → Production → Master Data → Work

Centers → Work Center → Display

Work center T-L##, plant 1000, Capacities view, details on capacity

category 001

Standard available capacity in ECC: A working time of 7:00 to 15:00

with a break of 1 hour and a 100% rate of capacity utilization is set.






8. Have intervals of available capacity been defined?

Answer: (Intervals and Shifts buttons) No intervals of available capacity

that deviate from the standard have been defined.

9. If intervals of available capacity were defined, would they affect planning

in APO?

Answer: ECC intervals of available capacity would not have any effect

on the APO planning under the given circumstances. These intervals

only affect planning in APO if the external capacity is used in APO.





Lesson Summary

You should now be able to:• Name and characterize the master data for PP/DS planning




TSCM40 Lesson: Demand Management with APO PP/DS

Lesson:

371

Demand Management with APO PP/DS


Lesson Overview

As in the ECC system, you can use planning to generate a requirement situation

before sales orders have been received. You can manage planning either in ECC

or APO, whereas sales orders are only managed in ECC. Planning with Final

Assembly in APO and the option of simultaneous quantity and capacity planning

with the CTP (Capable-to-Promise) procedure will be highlighted by way of

example.

Lesson Objectives


• Manage and characterize requirements and their behavior in Demand

Management in APO


This unit merely provides an exemplary and considerably restricted illustration of

Demand Management using APO-PP/DS. An example and an exercise are used to

elaborate the fundamental features of handling strategies. If required, experienced

instructors can also address the topic of APO Customizing for the requirements

strategy, the check mode and the CTP procedure.

Business Example

Products are produced in accordance with planning using make-to-stock

production, for example. From there, sales orders are delivered. In some cases

it makes sense to create a feasibility study in the availability check from within

the sales order.





Figure 166: Planned Independent Requirements and Sales Orders

Demand Management applies to the management of independent requirements.

The way in which independent requirements behave in material requirements

planning (for example, whether they affect requirements or whether they consume

other requirements) can be determined by their requirement type or by the

requirements strategy.

Planned independent requirements are stock requirements that can be derived from

a forecast of future demand. In make-to-stock production, you want to initiate theprocurement of the materials concerned, without having to wait for actual sales

orders. This means that delivery times can be shortened. It also means that you

can use forecast planning to distribute the load across the individual production

resources as evenly as possible.

Planned independent requirements can be created in APO-DP and released to

APO-PP/DS. Alternatively, they can be created in ECC and transferred to APO

using the Core Interface (CIF).

Sales orders (customer independent requirements) are created by sales and

distribution in ECC. Customer requirements may be transferred directly to

material requirements planning, depending on the requirements type that has been

defined. This is always required for customer-specific planning. For planning in

APO PP/DS, the sales orders have to be transferred to APO using the CIF.

Sales orders can be used as exclusive requirements sources, for which procurement

is then specifically triggered (make-to-order production), or, together with planned

independent requirements, they can create the total requirement. Consumption

with planned independent requirements is also possible.





Figure 167: Example: Planning with Final Assembly

In planning with final assembly, the emphasis is on allowing you to react flexibly

to customer requirements. The main difference between this requirements strategy

and make-to-stock production is that sales orders affect requirements.

In planning with final assembly, the planned independent requirements are entered

at finished product level too. This means that the procurement and manufacture of

the finished product is already started before the sales order is received. As soon

as a sales order is received, it consumes the planned independent requirement.

Consumption of planned independent requirements by customer requirementsdepends on the settings defined for the consumption mode and the consumption

periods.

Planned independent requirements that are not required increase the stock level in

that they are not adjusted to customer requirements. Since requirements are not

reduced according to the FIFO rule in this strategy (the delivery for a sales order

reduces this order and the planned independent requirements quantity it consumes

instead), the deletion of planned independent requirement quantities that are no

longer required has particular significance in requirements strategy 20.

In APO, you can adjust planned independent requirements created in APO using

the “Planning Adjustment” transaction (/sapapo/MD74). The planned independent

requirements that are no longer required are set to zero for the selected time period.

This function can be scheduled periodically (for example, daily). (The transaction

is similar to transaction MD74 in ECC.) If the planned independent requirements

were created in ECC, they must also be deleted in ECC (reorganization).





Demonstration: Planning with Final Assembly(Strategy 20)

Purpose


Hint: This demonstration serves as preparation for the exercises that

follow. Planning data should already exist for product T-F200 in plant

1000. This data must be deleted.

System Data






1. Create and verify the settings for planning with final assembly in the ECC

material master (strategy group 40) and the APO product master (strategy

20) for T-F200 in plant 1000. Explain the consumption mode settings.

In the APO product master, set a PP/DS horizon of 60 days.

2. Create a goods receipt for T-F200 in plant 1000 (movement type 501):15 PC

3. Create planned independent requirements.

25 pc. for current week +2

50 pc. for current week 3




25 pc. for current week 725 pc. for current week 8



Display the result in ECC (current stock/requirements list) and in APO

(product view).





4. Create an ECC customer requirement for T-F200 (4 pc for day 4 of the

current week + 2) and explain the result in APO: The customer requirement

is relevant for requirements and is consumed.

5. Execute interactive APO planning (product heuristic) and explain the result:

The requirements are covered by corresponding procurement elements

(planned orders). Display the dependent requirement for T-B100.

Hint: Do not delete the data from the previous demonstration. It is to be

used as a basis for the following demonstrations.

Figure 168: ATP Check for Sales Orders in APO

In the Core Interface (CIF), you can specify in the integration model that the

availability check (ATP check) in the sales order is to be performed in APO rather

than in ECC. If you create a sales order in ECC, an ATP request will be sent to

APO. The system first checks whether enough stock is available for this product

and whether receipts (for example, production orders, planned orders) have

already been planned by the requested date.

In the case of non-availability, you can set the ATP check so that the system

performs an availability check for the product in a different location or for an

alternative product. Moreover, for non-availability of the product, you can specify

that the sales order triggers production directly: In this case, APO creates a

planned order for the requested quantity in PP/DS. The system can then take

capacity constraints (available capacity and even receipts that have already

been planned) into account. The component availability can also be checked.





If there is no longer any capacity available for the desired availability date, the

system searches for a new date on which the planned order can be created. The

availability date of the newly created planned order (finish date) is then transferredback to the ECC sales order and copied as the confirmation date.





375 Exercise 21: Planning with Final Assembly

in APO-PP/DSExercise Duration: 30 Minutes

Exercise Objectives


• Create planned independent requirements and customer requirements for

planning with final assembly in APO-PP/DS

• Execute consumption

Business ExampleProduction Planning and Detailed Scheduling is executed for pump T-F2## in

plant 1000 in APO-PP/DS. Detailed scheduling is to take place within a horizon of

60 days.

Demand Management takes place in ECC: Planned independent requirements and

customer requirements are created in ECC and transferred to APO.

Hint: Make sure that the data and dates are entered correctly because the

exercise examples follow on from each other.

Task 1:

Production planning and detailed scheduling is to take place within a horizon of

60 days. The product is planned in planning with final assembly. Change or check

the APO product master for pump T-F2## accordingly:

1. Change or check the product master for:

product T-F2## in

location 1000

Go to the PP/DS tab page and check that a PP/DS Horizon of 60 days

has been entered.

Switch to the Demand tab page, and check that requirements strategy

20 (planning with final assembly) has been set. What settings are defined

for consumption?






Consumption mode: __________________

Fwd Consumption Per.: __________________

Bwd Consumption Per.: __________________

Save the product master if required.

2. Assume that you change the PP/DS horizon in the APO product master.

Would this create an inconsistency between APO and ECC? Why (not)?

__________________________________________________

__________________________________________________

3. Would the change you made be overwritten with a change transfer from

ECC?

__________________________________________________

Task 2:

In ECC, enter stock and planned independent requirements as a basis for material

requirements planning in APO.

1. From the Inventory Management menu, start the Goods Receipt Other

(MIGO) transaction. Enter the required data (for example, on the details

screen in the lower half of the initial screen). To do so, choose “Goods

receipt” and “Other” in the selection criteria and enter:

On the “Material” tab page

Material: T-F2##

On the “Quantity” tab page

Quantity: 5 pc

On the “Where” tab page

Movement type: 501 (Goods receipt w/o PO)

Plant: 1000


To confirm your entries, press Enter and Post the document.

2. Is further action required in the SCM or ECC systems to transfer the stock

to APO?






____________________________________________________

3. Display the results of the stock posting in the APO product view: Access

the product view from the APO Production Planning menu: Enter the

following data on the initial screen:

Planning version:: 000

Product: T-F2##

Location: 1000

To confirm, press Enter .

Is the stock displayed?

___________________________________________________

4. Note the end of the PP/DS horizon.

_____________________________________

Why is this date set?

___________________________________________________

5. In ECC, create planned independent requirements for the pump. Use the

Create Planned Independent Requirements transaction, which you can

start from the Demand Management menu. On the initial screen of the

transaction, enter Material T-F2##, Plant 1000, and Version 00. Use weeks

as the planning period. When you choose Enter , the planning table isdisplayed. Enter the following requirements quantities:

Hint: The “current week + 3” is in three weeks’ time (fourth time

column from the left)

Current week + 3: 55 PC













What is the ECC requirements type of these planned independent

requirements? (The requirements type is indicated on the Items tab page,

for example.)

____________________________________________________

Does this requirements type control the consumption of the planned

independent requirements in APO?

____________________________________________________

Save the planned independent requirements.

6. Display the result in the APO product view for pump T-F2## (refresh or

access it as described above).

Are the planned independent requirements displayed?

____________________________________________________

Look also at the planned independent requirements on the Forecast tab page

in the product view. Which setting controls the behavior of the planned

independent requirements in APO (for example, consumption)?

____________________________________________________

Task 3:

The stock/requirements situation for pump T-F2## has changed. Execute

interactive planning for the pump from the APO product view.

1. Proceed to the planning of product T-F2## in plant 1000 in Change in the

product view. If necessary, select the SAPALL propagation range.

Use the Product Heuristic function to execute planning. Planning is executed

after you confirm the screen by choosing Enter. Planning results in planned

orders.

Are the planned independent requirements within the PP/DS horizon covered

by planned orders?

____________________________________________________

Are the planned independent requirements outside the PP/DS horizon

covered by planned orders? Why (not)?

____________________________________________________

____________________________________________________

Save your plan.






2. Can the planned orders you just created be converted into production orders?

Is procurement of the pump initiated?

Hint: Answer the question, taking in account the conversion

indicator ready for input. However, do not carry out the conversion.

____________________________________________________

3. Go to the product view for assembly T-B1## in plant 1000. Do requirements

exist for this assembly? If so, where do they come from?

____________________________________________________

4. Are the requirements covered by planned orders?

___________________________________________________

Task 4:

A customer orders 3 pumps. Create a corresponding sales order below.

1. In ECC, start the “Create Sales Order” transaction from the Sales and

Distribution menu and create a sales order with the following parameters:

Order Type: OR


Distribution Channel: 10Division: 00

Choose Enter to access the item overview. Enter the following data:

Sold-to party: 1000

Ship-to party: 1000

PO number: K##_01

Required delivery date: Thursday of the current week

plus 4 weeks

Note the current date: __________

Material: T-F2##

Order quantity: 3 PC






Choose Enter to confirm your entries and then go to the APO ATP check for

the order (choose Check Item Availability).

Hint: If the screen shows only schedule line 0001 with a red traffic

light at this point, cancel sales order maintenance, exit the “Create

Sales Order” transaction completely (that is, do not remain on the

initial screen), and inform your course instructor.

This display indicates that the APO ATP check has not been properly

implemented, that is, it does not check the stock. The course

instructor must adjust the check instructions before you start this

exercise.

Exit the ATP check screen by choosing Continue without confirmation onthe top left of the screen. Then Save the sales order and take note of its

order number.

___________________________________________________

2. You have just created an unconfirmed sales order. Display this sales order in

the APO Product View. What date is shown for the requirement?

___________________________________________________

What is the requirement quantity, requested quantity, confirmed quantity?

___________________________________________________

3. Create a second sales order in ECC with the parameters from task 4.1 andthe differing PO number K##_02 for 1 piece of pump T-F2## and execute an

ATP check again (Check item availability button). Display the schedule line

overview on the ATP screen. What is the earliest date on which full delivery

of the customer request is possible?

___________________________________________________

In this case, confirm the sales order with full delivery and then check the

schedule line screen again to verify the confirmed quantity.

Save the changed sales order.

Display the second sales order in the Product View (which you may have torefresh). What date is shown for the requirement?

___________________________________________________

What is the requirement quantity, confirmed quantity, requested quantity?

___________________________________________________

4. Are the planned independent requirements consumed by the sales order (see

also the Forecast tab page)?






Solution 21: Planning with Final Assembly

in APO-PP/DSTask 1:

Production planning and detailed scheduling is to take place within a horizon of

60 days. The product is planned in planning with final assembly. Change or check

the APO product master for pump T-F2## accordingly:

1. Change or check the product master for:

product T-F2## in

location 1000

Go to the PP/DS tab page and check that a PP/DS Horizon of 60 dayshas been entered.

Switch to the Demand tab page, and check that requirements strategy

20 (planning with final assembly) has been set. What settings are defined

for consumption?

Consumption mode: __________________

Fwd Consumption Per.: __________________

Bwd Consumption Per.: __________________

Save the product master if required.

a) SCM menu path: Advanced Planning and Optimization → Master

Data → Product

Consumption settings:

Consumption mode: 2 (Backward/forward consumption)

Fwd Consumption Per.: 30 days

Bwd Consumption Per.: 30 days

2. Assume that you change the PP/DS horizon in the APO product master.Would this create an inconsistency between APO and ECC? Why (not)?

__________________________________________________

__________________________________________________

a) Inconsistencies between APO and ECC? No, the data would still be

consistent because the PP/DS horizon has not been copied from

ECC.






3. Would the change you made be overwritten with a change transfer from

ECC?

__________________________________________________

a) Change transfer from ECC? No, the change would not be overwritten

because only the fields that can be transferred from ECC are

affected by a change transfer.

Task 2:

In ECC, enter stock and planned independent requirements as a basis for material

requirements planning in APO.

1. From the Inventory Management menu, start the Goods Receipt Other

(MIGO) transaction. Enter the required data (for example, on the detailsscreen in the lower half of the initial screen). To do so, choose “Goods

receipt” and “Other” in the selection criteria and enter:

On the “Material” tab page

Material: T-F2##

On the “Quantity” tab page

Quantity: 5 pc

On the “Where” tab page

Movement type: 501 (Goods receipt w/o PO)

Plant: 1000


To confirm your entries, press Enter and Post the document.

a) Menu path: Logistics → Materials Management → Inventory

Management → Goods Movement → Goods Receipt → Other (MIGO)

2. Is further action required in the SCM or ECC systems to transfer the stock

to APO?

____________________________________________________

a) Is further action required? No, the stock is transferred automatically.

3. Display the results of the stock posting in the APO product view: Access

the product view from the APO Production Planning menu: Enter the

following data on the initial screen:






Planning version:: 000

Product: T-F2##

Location: 1000

To confirm, press Enter .

Is the stock displayed?

___________________________________________________

a) SCM menu path: Advanced Planning and Optimization → Production

Planning → Interactive Production Planning → Product Overview

Stock displayed? Yes, the stock is displayed.

4. Note the end of the PP/DS horizon.

_____________________________________

Why is this date set?

___________________________________________________

a) End of the PP/DS horizon: This varies (current date + 2 months) .

Reason: The production horizon (of 60 days) is calculated forwards,

starting from the current date.

5. In ECC , create planned independent requirements for the pump. Use the

Create Planned Independent Requirements transaction, which you canstart from the Demand Management menu. On the initial screen of the

transaction, enter Material T-F2##, Plant 1000, and Version 00. Use weeks

as the planning period. When you choose Enter , the planning table is

displayed. Enter the following requirements quantities:

Hint: The “current week + 3” is in three weeks’ time (fourth time

column from the left)


Current week + 4: 25 PCCurrent week + 5: 25 PC











What is the ECC requirements type of these planned independent

requirements? (The requirements type is indicated on the Items tab page,

for example.)

____________________________________________________

Does this requirements type control the consumption of the planned

independent requirements in APO?

____________________________________________________

Save the planned independent requirements.



ECC requirements type: The planned independent requirements

have requirements type VSF.

b) Consumption controlled by requirements type? No. The consumption

in APO results from the requirements strategy in the product

master and the check mode in the sales order.

6. Display the result in the APO product view for pump T-F2## (refresh or

access it as described above).

Are the planned independent requirements displayed?

____________________________________________________

Look also at the planned independent requirements on the Forecast tab page

in the product view. Which setting controls the behavior of the planned

independent requirements in APO (for example, consumption)?

____________________________________________________

a) Planned independent requirements displayed? Yes.

b) Behavior of the planned independent requirements in APO: The

behavior of the planned independent requirements is defined in

APO by the requirements strategy in the product master.

Task 3:

The stock/requirements situation for pump T-F2## has changed. Execute

interactive planning for the pump from the APO product view.

1. Proceed to the planning of product T-F2## in plant 1000 in Change in the

product view. If necessary, select the SAPALL propagation range.






Use the Product Heuristic function to execute planning. Planning is executed

after you confirm the screen by choosing Enter. Planning results in planned

orders.

Are the planned independent requirements within the PP/DS horizon covered

by planned orders?

____________________________________________________

Are the planned independent requirements outside the PP/DS horizon

covered by planned orders? Why (not)?

____________________________________________________

____________________________________________________

Save your plan.

a) Planned independent requirements within the PP/DS horizon covered?

Yes, the requirements within the PP/DS horizon are covered by

planned orders.

b) Planned independent requirements outside the PP/DS horizon covered?

No, the requirements outside the PP/DS horizon are not covered.

Outside the PP/DS horizon, planning in SNP is responsible for

covering the requirements.

2. Can the planned orders you just created be converted into production orders?

Is procurement of the pump initiated?

Hint: Answer the question, taking in account the conversion

indicator ready for input. However, do not carry out the conversion.

____________________________________________________

a) Procurement of the pump initiated? Yes, the planned orders can be

converted into production orders. Procurement of the pump is

initiated.

3. Go to the product view for assembly T-B1## in plant 1000. Do requirements

exist for this assembly? If so, where do they come from?

____________________________________________________

a) Requirements for this assembly? Yes, dependent requirements exist.

They originate in the planned orders for procuring the finished

product pump T-F2##.

4. Are the requirements covered by planned orders?






___________________________________________________

a) Requirements covered? No, the requirements are not covered.

Planning has not yet been executed for the assembly.

Task 4:

A customer orders 3 pumps. Create a corresponding sales order below.

1. In ECC, start the “Create Sales Order” transaction from the Sales and

Distribution menu and create a sales order with the following parameters:

Order Type: OR


Distribution Channel: 10

Division: 00

Choose Enter to access the item overview. Enter the following data:

Sold-to party: 1000

Ship-to party: 1000

PO number: K##_01

Required delivery date: Thursday of the current week

plus 4 weeksNote the current date: __________

Material: T-F2##

Order quantity: 3 PC

Choose Enter to confirm your entries and then go to the APO ATP check for

the order (choose Check Item Availability).

Hint: If the screen shows only schedule line 0001 with a red traffic

light at this point, cancel sales order maintenance, exit the “Create

Sales Order” transaction completely (that is, do not remain on the

initial screen), and inform your course instructor.

This display indicates that the APO ATP check has not been properly

implemented, that is, it does not check the stock. The course

instructor must adjust the check instructions before you start this

exercise.






Exit the ATP check screen by choosing Continue without confirmation on

the top left of the screen. Then Save the sales order and take note of its

order number.

___________________________________________________

a) Menu path: Logistics → Sales and Distribution → Sales → Order

→ Create

Date: Varies.

Sales order number: Varies, for example, 9835.

2. You have just created an unconfirmed sales order. Display this sales order in

the APO Product View. What date is shown for the requirement?

___________________________________________________

What is the requirement quantity, requested quantity, confirmed quantity?

___________________________________________________

a) Date of the unconfirmed sales order in APO: This varies. It is

generally the desired delivery date. However, the date of material

staging must be very early to ensure timely delivery to the customer.

b) Requirement quantity, confirmed quantity, requested quantity (without

plus or minus sign): 3, 0, 3.

3. Create a second sales order in ECC with the parameters from task 4.1 and

the differing PO number K##_02 for 1 piece of pump T-F2## and execute an

ATP check again (Check item availability button). Display the schedule line

overview on the ATP screen. What is the earliest date on which full delivery

of the customer request is possible?

___________________________________________________

In this case, confirm the sales order with full delivery and then check the

schedule line screen again to verify the confirmed quantity.

Save the changed sales order.

Display the second sales order in the Product View (which you may have to

refresh). What date is shown for the requirement?

___________________________________________________

What is the requirement quantity, confirmed quantity, requested quantity?






___________________________________________________

a) Earliest full delivery: Full delivery is possible on the requested

delivery date.

b) Requirements date in product view: This varies. Generally the

requested delivery date.

c) Requirement quantity, confirmed quantity, requested quantity (without

plus or minus sign): 1, 1, 1.

4. Are the planned independent requirements consumed by the sales order (see

also the Forecast tab page)?

____________________________________________________

a) Sales order consumption? Yes, the sales orders consume the planned






Lesson Summary

You should now be able to:• Manage and characterize requirements and their behavior in Demand

Management in APO





TSCM40 Lesson: Production Planning with APO PP/DS

Lesson:

390

Production Planning with APO PP/DS


Lesson Overview

Production planning with APO PP/DS describes not only material requirements

planning but also detailed scheduling steps, where necessary. Both can take place

in the same planning run (normally arranged sequentially). Individual materials

can also have different planning procedures to “planning in planning run”.

Lesson Objectives




This section focuses on multilevel planning. As well as material requirements

planning, which is always performed with reference to the product, this can

also mean that heuristics for the detailed scheduling of resources, or even the

optimizer, are used. You therefore need to make the difference between the MRP

run (ECC) and the production planning run (APO) clear to the participants. Try to

clarify the term “heuristic” as simply as possible, and explain that where different

business problems arise, a production planning run orientates itself towards the

heuristics that match the context and uses them to solve the problem. Place

particular emphasis on establishing the connection between the product heuristic

and the planning procedure and point out that “PP heuristics” have predefined

strategy characteristics (finite/infinite).

Turn the (optional) exercise in this unit into a kind of workshop, if necessary, by

not going into all the entries in detail.

Business Example

Different planning processes and planning runs are used depending on the

planning scenario. The production planning run that will be tested in this context

by way of an example is typical for practical applications.





Figure 169: PP Planning Procedure

The PP planning procedure in the product master describes how a product is to

be planned. For example, you can plan a product in the planning run and write

planning file entries only if there are planning-relevant changes (this is the same

as material requirements planning in SAP ECC). Alternatively, you can carry

out immediate planning of a product in particular cases (automatic planning

immediately). The recommended default setting is “Planning in Planning Run”.

You can select from several different planning procedures that must be defined in

Customizing for PP/DS. These procedures define the system behavior in responseto different events. An heuristic is also saved here and must be used in automatic

planning.

Note that in general, settings for automatic planning always have a negative effect

on performance. You should therefore only ever choose this setting for good

business reasons (for example, as part of a CTP planning). It should be limited

to the minimum number of necessary products only.





Figure 170: Executing the Production Planning Run

Production planning can be executed in two ways: Either as interactive single-item

planning for a product or as total planning for a group of products that can be

defined as you wish (for example, all products from a plant). Total planning can

be executed online or in background processing.

In online planning, the production planning run is executed immediately. This

procedure is ideal for low data quantities. To prevent time-consuming online

planning with data quantities that are too large from adversely affecting the

system response time, the time for executing the report is restricted: If a report

runs longer than five minutes in interactive mode, the system terminates the run

automatically. For this reason, background processing should always be used

for extensive planning.

In production planning in background processing, you use variants that contain

settings for mass planning. This function allows you to start the job immediately

or determine that it is to be started at a later point in time, so that there is no

negative effect on system performance at the wrong time. This procedure is

usually used when planning mass data.





Figure 171: Control Parameters for the Production Planning Run (1)

You define the parameters for configuring the production planning run on the

initial screen. These can be saved using variants, and you can also execute

production planning in the background in this way.

Using the time profile, you can define the particular period for which planning

is to be carried out for a whole range of heuristics.

You use the propagation range to determine which resources and products can

be changed. You can only schedule resources and products that are within the

propagation range.

You can perform a production planning run and save its results in a simulation

version. You can then decide at a later time whether or not you want to use the

simulation in the operational planning version.

There are two different types of processing steps in the production planning run:

functions (for detailed scheduling) and heuristics (for production planning). You

cannot change functions. However, you can define heuristics in Customizing for

Production Planning and Detailed Scheduling.

Control Parameters for the Production Planning Run (2)

If the selection is carried out across several plants, the system takes dependencies

between the plants into account during planning.





Figure 172: Control Parameters for the Production Planning Run (2)

In the production planning run, you can define several sequential processing steps

in which the system executes various heuristics and functions for the specified

objects. You can define here which objects are to be processed with which

heuristics or functions. The objects must be compatible with the selected heuristic.

For example, production planning heuristics can only plan products.

You can execute several heuristics or functions sequentially. Functions such as

optimization or scheduling can be carried out after a production planning run.

Multiple production planning runs can be performed sequentially for various

products, for example. In finite planning, the sequence of products in planning

can be defined.

For each processing step, you determine: 1. The heuristic or function to be

executed in this step; 2. The strategy profile to be used for the heuristic or

function. If you decide to use the optimization function, you have to enter an

optimization profile; 3. The objects (for example, 4 = products) for which the

heuristics/functions are to be executed; 4. If necessary, further selections that can

be used to restrict planning to specific objects.If you set the “Planning file entry” indicator on the initial screen of the production

planning run, you can limit planning to products that have had changes relevant

for planning made to them (net change planning).





Figure 173: Example: Complete Production Planning Process

The objective of a production planning run is generally to create a “feasible”

demand program. The actual planning is normally broken down into several steps,

as shown in the process example:

• To ensure consistent planning, the stage numbering algorithm for determining

the low-level codes must be executed regularly. This algorithm may, for

example, be scheduled either at the start of a planning run or separately atregular intervals (weekly).

• Normal material requirements planning is carried out with the

SAP_MRP_001 heuristic. This planning is executed infinitely.

• In order to link the created structure of requirements and requirement

coverage elements with each other on multiple levels (and therefore to be

able to optimize on multiple levels later on), a heuristic for creating fixed

pegging is used.

• The capacity planning step can be carried out with the optimizer, which, in

addition, can carry out simultaneous sequencing with regard to setup times

or scheduling delays.

• Following optimization, the fixed pegging edges utility is removed again.

Further steps can follow. When setting up a planning run such as this, it is

recommended that a step-by-step approach be taken so that the results of the

individual planning steps can be verified in the test phase.





395 Exercise 22: Executing the Production

Planning Run (Optional)Exercise Duration: 20 Minutes

Exercise Objectives


• Use the production planning run to plan products

• Display the planning file

Business Example

Production planning and detailed scheduling are executed for pump T-F2## and

assemblies T-B1##, T-B22##, T-B3##, and T-B4## in APO-PP/DS. Requirements

(planned independent requirements and customer requirements) already exist.

Use the production planning run to plan production of the pump and its assemblies

and components.

Task 1:

Before executing production planning, you acquire an overview of the current

master and transaction data situation.

1. Display the product view for pump T-F2## in plant 1000. Do requirementsexist? Which ones?

____________________________________________________

Are the requirements covered by procurement elements?

____________________________________________________

2. Switch to the product view for casing T-B1## in plant 1000 (a pump

assembly). First, view the product master for the casing from the product

view. How does planning of this product take place when changes are made

(PP/DS tab page)?

____________________________________________________

Switch to the MRP elements display. Do requirements exist? Which ones?

____________________________________________________

Are the requirements in the PP/DS horizon covered by procurement

elements? Why (not)?

____________________________________________________






3. To determine whether production planning is finite or infinite, check which

heuristic is used to plan product T-F2## in a production planning run: First

call the product master for material T-F2## in plant 1000. Is a productheuristic entered explicitly on the PP/DS tab page?

____________________________________________________

What implications does this have for planning the product in the production

planning run?

____________________________________________________

4. Which planning procedure is entered in the product master?

____________________________________________________

Take a look at planning procedure “4” in PP/DS Customizing. Which

heuristic has been entered here?

____________________________________________________

5. You have found the heuristic used to plan product T-F2## as part of

production planning. Take a look at the relevant heuristic in Customizing.

Which strategy is used to carry out planning in a planning run?

____________________________________________________

6. Finally, have a look at the SAP APO planning file. Display the planning

file entries in planning version 000 in location 1000 for the production

planner 0##. Choose Execute and the relevant planning file entries are

displayed.

Are planning file entries created for assemblies T-B1##, T-B22##, T-B3##,

and T-B4## in PP/DS?

_____________________________________________________

Which low-level code do these assemblies have?

_____________________________________________________

Has a planning file entry also been created for finished product T-F2##?

Why (not)?

_____________________________________________________Which low-level code does the finished product have?

_____________________________________________________






Task 2:

Execute production planning for the finished product and its assemblies.

1. Call the Production Planning Run from the production planning menu. Enter

the following data on the initial screen:

Planning version: 000

Time profile: SAP001

Propagation range: SAPALL

Processing steps:

01 Function/heuristic: SAP_MRP_001 (Components

according to low-level code)

Objects: 4 (products)

Selection criteria for the products:

Location: 1000

Production planner: 0##

Hint: Before you execute planning, save your settings as a variant

with the name PLANNER0## and the short description “Product

planner 0##”.

Once you have saved your settings as a variant, execute the production planning run.

Were products also planned in the planning run for which a planning file

entry was not set? Why (not)?

_____________________________________________________

2. Look at the planning results in the product view using assembly T-B1##

in plant 1000 as an example. Was the product planned? (Are procurement

elements available to cover the dependent requirements?)

_____________________________________________________





Solution 22: Executing the Production

Planning Run (Optional)Task 1:

Before executing production planning, you acquire an overview of the current

master and transaction data situation.

1. Display the product view for pump T-F2## in plant 1000. Do requirements

exist? Which ones?

____________________________________________________

Are the requirements covered by procurement elements?

____________________________________________________

a) Requirements: Yes, there are planned independent requirements

and customer requirements.

b) Requirements covered?: Yes, the requirements are covered by

planned orders.

2. Switch to the product view for casing T-B1## in plant 1000 (a pump

assembly). First, view the product master for the casing from the product

view. How does planning of this product take place when changes are made

(PP/DS tab page)?

____________________________________________________Switch to the MRP elements display. Do requirements exist? Which ones?

____________________________________________________

Are the requirements in the PP/DS horizon covered by procurement

elements? Why (not)?

____________________________________________________

a) Planning the product when there are changes: Planning takes place in

the planning run.

b) Requirements: Yes, there are dependent requirements.

c) Requirements covered in the production horizon? No, the dependent

requirements are not covered because the product has not yet been

planned. (The product heuristic that was executed in a previous

exercise for the finished product is for single-level single-item

planning.)






3. To determine whether production planning is finite or infinite, check which

heuristic is used to plan product T-F2## in a production planning run: First

call the product master for material T-F2## in plant 1000. Is a productheuristic entered explicitly on the PP/DS tab page?

____________________________________________________

What implications does this have for planning the product in the production

planning run?

____________________________________________________

a) Product heuristic in T-F2##: No, a product heuristic has not been

entered on the PP/DS tab page.

b) Significance for production planning run: Normally, the heuristic

saved in the planning procedure is used.

4. Which planning procedure is entered in the product master?

____________________________________________________

Take a look at planning procedure “4” in PP/DS Customizing. Which

heuristic has been entered here?

____________________________________________________

a) Planning procedure in the product master: Procedure 4, “Planning

in planning run”, is defined in the product master on the PP/DS

tab page.

b) Relevant Customizing:

SCM Customizing menu path: Advanced Planning and Optimization

→ Supply Chain Planning → Production Planning and Detailed

Scheduling (PP/DS) → Maintain Planning Procedures

Defined heuristic: The SAP_PP_002 heuristic is intended for

“Planning in planning run”.

5. You have found the heuristic used to plan product T-F2## as part of

production planning. Take a look at the relevant heuristic in Customizing.

Which strategy is used to carry out planning in a planning run?

____________________________________________________

a) SCM Customizing menu path: Advanced Planning and Optimization

→ Supply Chain Planning → Production Planning and Detailed

Scheduling (PP/DS) → Heuristics → Maintain Heuristics

Strategy used for planning: Planning is carried out with the strategy

defined in the heuristic, and thus with the “Infinite scheduling”

planning mode.






6. Finally, have a look at the SAP APO planning file. Display the planning

file entries in planning version 000 in location 1000 for the production

planner 0##. Choose Execute and the relevant planning file entries aredisplayed.

Are planning file entries created for assemblies T-B1##, T-B22##, T-B3##,

and T-B4## in PP/DS?

_____________________________________________________

Which low-level code do these assemblies have?

_____________________________________________________

Has a planning file entry also been created for finished product T-F2##?

Why (not)?

_____________________________________________________

Which low-level code does the finished product have?

_____________________________________________________

a) SCM system menu path: Advanced Planning and Optimization →

Production Planning → Reporting → Display Planning File Entries

Planning file entry created for assemblies?: Yes, the assemblies are

generally marked for “Delete non-fixed receipts, reexplode new

fixed receipts”.

b) Low-level code for the assemblies: The assemblies have low-level

code 1.

c) Planning file entry created for finished product? Varies. In general,

a planning file entry is not created for the individual customer

segment, and the make-to-stock segment is marked for change

planning (“Use suitable receipts”). However, if you have executed

planning of the whole product after entering the individual

customer order (that is, you have planned the individual customer

segment and the make-to-stock segment), a planning file entry is

not created for the finished product at all since complete planning

has already been executed.

d) Low-level code for the finished product: The finished product haslow-level code 0.

Task 2:

Execute production planning for the finished product and its assemblies.

1. Call the Production Planning Run from the production planning menu. Enter

the following data on the initial screen:






Planning version: 000

Time profile: SAP001

Propagation range: SAPALL

Processing steps:

01 Function/heuristic: SAP_MRP_001 (Components

according to low-level code)

Objects: 4 (products)

Selection criteria for the products:

Location: 1000

Production planner: 0##

Hint: Before you execute planning, save your settings as a variant

with the name PLANNER0## and the short description “Product

planner 0##”.

Once you have saved your settings as a variant, execute the production

planning run.

Were products also planned in the planning run for which a planning file

entry was not set? Why (not)?

_____________________________________________________

a) SCM menu path: Advanced Planning and Optimization → Production

Planning → Automated Production Planning and Optimization →

Production Planning Run

b) Products planned without planning file entry? Yes, all products were

planned because the “Planning file entry created” indicator had

not been selected.

2. Look at the planning results in the product view using assembly T-B1##

in plant 1000 as an example. Was the product planned? (Are procurement

elements available to cover the dependent requirements?)

_____________________________________________________

a) Product planned? Yes, the assembly was planned. Planned orders

exist for procurement.





Lesson Summary

You should now be able to:• Name the planning procedure





TSCM40 Lesson: Selected Planning Tools in APO PP/DS

Lesson:

403

Selected Planning Tools in APO PP/DS


Lesson Overview

You can use pegging relationships to create connections between requirements

and requirement coverage elements and fix them, if necessary. Enhanced planning

resources such as the product planning table and detailed scheduling planning

board enable you to examine and process planning problems, particularly in the

area of detained scheduling (scheduling and capacity planning), from various

perspectives. You can use the optimizer to improve a machine commitment

situation.

Lesson Objectives






Due to the volume of material covered by this course, there is usually little time

available for this unit. You should therefore see it as an opportunity to provide the

participants with an overview of the most important tools and their features. If sufficient time happens to be available, you can use content and demonstrations

from the customer course SCM250 (see this course for details). This will provide

enough material to fill in the time, if required. You should therefore deal with this

unit at a level of detail the occasion allows. Make sure, however, that you do not

confuse the participants at the end of the course by presenting them with lots of

complex details.

Business Example

Complex planning scenarios require enhanced resources. In the area of planning

overloads and scheduling delays in particular, resources such as pegging and theoptimizer, and tools such as planning tables are used.

Pegging Relationships

Orders that have a fixed pegging relationship can no longer be deleted from

material requirements planning. They are therefore also treated as being firmed.





In general, it is important to note that pegging and material requirements planning

are not directly dependent on one another. For example, if a planned order in

material requirements planning is created too late (using today scheduling) for arequirements date that is too early, there may be no pegging relationship between

the requirement and the receipt under certain circumstances. However, this type

of order is still created.

Pegging relationships can play an important role in capacity planning, for example,

if rescheduling is only permitted taking pegging relationships into account.

Hint: Processes in which fixed pegging can be used to control the material

flow are only provided as of SCM 4.1 (the fixing of the pegging is retained

in the subsequent document: transitions PlOr -> PrdOrd -> Stock).

Figure 174: Pegging Relationships

Pegging establishes a link between the receipt and issue elements of a product in a

location. The system uses pegging to assign receipts to relevant requirements.

The pegging strategy defines how requirements are covered when receipts areassigned. There are two strategies that can be entered in the product.

There are two different types of pegging relationships: fixed and dynamic. Fixed

pegging enables you to fix a pegging relationship, that is, the pegging relationship

will not be changed automatically by the system during planning. You can assign

a particular quantity of a product receipt (manually or with heuristics) to a specific

requirement. You can manually fix the pegging for a receipt/requirements element

by editing the pegging structure from the product view.





Figure 175: Product Planning Table as a Further Tool

The product planning table is a powerful tool that can be used to execute and

evaluate planning in APO-PP/DS. A wide range of charts is available for display.

You can tailor the product planning table to suit different tasks, depending on

the charts you select.

The navigation tree at the top left of the screen displays the scope of the product

planning table. Using this navigation tree, you can define which objects aredisplayed in the individual views. You can group the navigation tree according to

different categories (planner, product group, location, or resource, for example).

On the lower left of the screen, you determine which charts (for example, periodic

product view, periodic resource view, Alert Monitor, quantity graphic) you want

to display. Capacity requirements planning can also be executed in the product

planning table using corresponding charts.

The demand and availability of resources is displayed in the periodic resource

view, where their utilization of capacity is shown as a percentage.

The periodic product view displays the products, the order quantities that have to

be produced in each bucket, and detailed information about dates and quantities

for the resources.





Demonstration: Period-Based Planning in the ProductPlanning Table (Optional)

Purpose

Preparation for optional exercise

Hint: Use planning in repetitive manufacturing as an example of how the

product planning table is used (Note: The demonstration focuses heavily

on the following optional exercise):

System Data






1. Structure and key characteristics of the product planning table

2. Prerequisites for the repetitive manufacturing example: Repetitive

manufacturing indicator and profile, production version, (MRP 4 view,

Material master)

3. Create forecast in ECC in the current week + 4: Mon: 600, Tues: 500, Wed:100, Thurs: 300, Fri: 500

4. Create sales order in current week + 5, Tuesday: OR, 1000, 10.00 ->

customer 1500, material T-F1320, plant 1200, quantity 10 pieces.

5. Product master T-F1320, plant 1200: Set PP/DS Horizon to 40 days

6. Call the Product planning table for T-F1320, planning version 000, plant

1200, activate the Alert Monitor -> Analyze the situation

7. Execute manual planning (interactive with reference to exception messages)

8. Execute Automatic planning with wave algorithm and interpret the result.





Figure 176: Detailed Scheduling Planning Board

The schedule is displayed graphically in the planning board.

The planning board is used for interactive planning, for example, for interactive

processing and resolving alerts.

You can define the layout of the planning board, for example:

• The different charts (for example, a resource chart and an order chart)• The field selection and sorting for the columns in the table section of a chart

• The format of the rows in the table section

• The objects displayed in the diagram section of a chart, for example:

– Operations or orders (graphic objects)

– Histograms (curves for warehouse stock and resource utilization)

– Network views of operations and orders that show the time and pegging

relationships between operations and orders

• The layout of operations and orders in the diagram section





Figure 177: PP/DS Optimizer

Optimization allows you to optimize the production dates/sequences and the

resource assignment of existing operations/activities that were previously

generated by the production planning run or manual planning. The optimizer

does not create or delete orders.

The purpose of optimization is to generate feasible production plans andincrease the efficiency of production. Several optimization parameters (such as

setup times, due date violations) can be weighted in such a way that the optimized

schedule comes as close to the desired results (for example, minimum setup times)

as possible. The following parameters can be taken into account in optimization:

• Production span (from the start of the first operation to the end of the last

operation in a resource schedule within the optimization horizon). The

production span makes a statement about the compactness of the orders

within the optimization horizon.

• Sum of setup times

• Sum of setup costs

• Maximum delay costs (maximum delay of an order in relation to its

requirement date or its due date).

• Sum of delay costs (delay in relation to requirements or due dates)

• Sum of mode costs through alternative modes.






Ask the participants if they have any further questions regarding SCM APO. Then

emphasize the main advantages of SCM APO again with a brief summary. If the

participants would like to know more about the topic, refer them to the course

SCM250 and the Optimizer Workshop WDSCM2.

Finally, wish the participants good luck with the certification test.








Lesson Summary

You should now be able to:• Interpret pegging







TSCM40 Unit Summary

Unit Summary




• Manage and characterize requirements and their behavior in Demand

Management in APO






scheduling planning board• Characterize the optimizer




Unit Summary TSCM40






1. The main features of PP/DS Planning are:


□ A Sales forecasts

□ B Cross-location, period-based planning

□ C Location-related material requirements planning

□ D Location-related capacity planning

2. In some requirements strategies there is the option of absorbing planned

independent requirements from sales orders for planning. What is this

situation called and which parameters control it?





410Answers

1. The main features of PP/DS Planning are:

Answer: C, D

PP/DS is aimed at material requirements planning and capacity planning

within the production location.

2. In some requirements strategies there is the option of absorbing planned

independent requirements from sales orders for planning. What is this

situation called and which parameters control it?

Answer: It is called consumption. It is set for a specific material usingthe consumption mode and period(s). The assignment indicator must be in

the relevant check mode and the associated requirements strategy must be

the same and not “blank”.




TSCM40 Course Summary

Course Summary


• Evaluate, describe, and implement the options provided by SAP-based

planning




Course Summary TSCM40

tscm40 - planning & manufacturing i

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