SAP PP-CRP-LVL - Capacity Leveling Profile Setup

Capacity leveling is used in various areas of a company and at different planning levels with the following objectives:

- High capacity load
- Adherence to dates
- Short lead times
- Low stocks

The objectives of capacity leveling include:

- Leveling overloads and under loads at work centers

- Achieving optimum commitment of machines and production lines

- Selection of appropriate resources

Show here is an example on how to customize the Capacity Leveling Profile.

Define time profile in OPD2.

Assuming you want to create a time profile for 2 months.

Database Read Period	Entry Type	Start Date	End Date
	J	-3	3

The database read period specifies the period in which capacity requirements are read
from the database. All requirements are accessed which are partially or completely
within the database read period.

Evaluation Period

G

1

60

The evaluation period specifies the period over which data is formatted and displayed.
The evaluation period must lie within the database read period.

Planning Period

G

1

60

The planning period defines the period in which the SAP system can carry out planning.
The planning period is smaller than or equal to the evaluation period. You cannot move
operations outside the planning period. Equally, when automatic finite scheduling is
carried out for an operation the system only searches for a new date within the planning
period.

Dispatch of backlog

G

Backlog dispatch Date = 0

The date for dispatching the backlog is of importance in period-related planning.
You use the date for dispatching the backlog to determine the date backlogs are to be
allocated.

The following types of entry are available:

Actual date specifications

These date specifications (for example, calendar day, calendar year) are only useful in the profiles in exceptional cases.

Relative date specifications

These date specifications (for example, number of calendar days, number of calendar years) are always calculated from the current day.

For every period, you can specify in what form you want to enter the date by using the respective field "Type of entry".

Define the strategy profile in OPDB.

In this menu option you define strategy profiles to control capacity leveling with theplanning tables.

You can copy the standard strategy profile like SAPSFCVER1 or SAP_T001.

Assuming you copy the strategy profile to ZAPSFCVER1 ticking the followings:-

1. Dispatch at earliest point in time.

2. Change production version on error.

3. Cancel dispatching due to error.

4. Use operations floats.

5. Use float before production.

6. Use float after production.

and copy the strategy to ZAP_T001 ticking the Change Planning direction.

Define the Overall profiles in OPD0.

The overall profiles are used as follows to control capacity planning:

If you select the menu options:

Capacity planning -> Leveling -> Work center view -> Planning table, then the profile
SAPSFCG001 is processed in the standard version.

You can change the profile, but the SAP sub-profiles should remain unchanged as far as
possible.

You can define your own profiles and allocate them to particular users by means of user
parameters. (See user parameters CYA -> CYX)

For example, when you access the planning table enter using the application menu
"Capacity planning" -> Leveling -> Work center view -> Planning table
the user parameter "CYA" is operative.

You can select any overall profile you like by entering via the application menu
"Capacity planning" -> Leveling -> Variable.

Your details of the profile can be as follows:-

Profile	ZONLINE	ZBACKGRD
Selection profile	SAPSFCS005	SAPSFCS001
Control profile	SAP__C001	SAP__C002
Time profile	ZTIME	SAP__Z002
Evaluation profile	SAP__A001	SAP__A001
Strategy profile	SAP__T001	ZSTRATEGY
Period profile	SAP__P002
Planning table profile		SAPSFCL010
Prof. Plan tab (tab)	SAPSFCR011
List profile	SAPSFCI001	SAPSFCI001

Restricting Good Receipt Unless Production Order Confirmed

SAP Production Planning Ticket:

Restricting good receipt in MB31 unless the production order is confirmed.

My client uses CO11N for activity confirmation. They are not using auto goods receipt for this transaction. Instead they are using MB31, 101 movement type. This 2 transactions are independent of each other. Now the user wants that unless the order is confirmed there should not any goods receipt. Means the system should not allow MB31-101 movement against the order if it is not confirmed through CO11N.

1. Use Tcode BS02 ( Customising USer status profile).

2. Select the order type which you want to configure (eg:PP000001) and choose "Details" button.

3. In the User status table do the following:

a. In the status no field type"1" , status field "Sta1", short text"GR not allowed", lowest no "1", Highest No "2". Mark a tick in the initial stats check box.

b.Next line, type status no field "2" ,status field "sta2", short text"Gr allowed", lowest no "2" , highest no "2".

4. Select the STA1 line and choose details. select the "create"button.select the "GR for prod order", mark "forbidden radio button" and "set radio button".

5. Select the STA2 line and choose details. Selct the "create"button. select "confirm order", mark "permitted radio button" and "set radio button". Next choose "GR for prod order" , mark "permitted radio button".

6.Save.

Create a prod order and check whether the required scenario is working.

Stock in Transit - liquidation or remove the stock which is in transit

I am transfering a product from one plant (say 1000) to another plant (say 2000). By using MB5T, I could find the stock in transit. Unfortunately, the lorry met with a fire accident and all my goods destroyed. Now I have a scenario where I need to remove the stock which is in transit.

How do you wish to remove the stock? Are you going to scrap it or issue it to a specific GL account for insurance purposes?

It is for both scrap and for insurance purposes.

You have two options. Option number one being the simplest of the two. You will need to know the stock transport PO number or numbers. If you do not know them you can perform a search using transaction MB5T enter in the receiving plant, check the stock transfer order and the cross-company-code box and execute. All in transit PO's will be displayed for that plant. You can drill into document flow by double clicking on the PO number.

Option 1.

You complete the transactions into the intended plant and then perform the scrap transaction.

MB01 or MIGO (goods receipt against a purchase order) depending on which you use to perform goods receipts and LT06 bin put away,( if the plant is warehouse managed).

Scrap the goods using transaction MB1A movement type 551 or MB1A misc issue to a specific GL account. Use movement type 201. LT06 to remove the goods from the put away bin if the receiving plant is warehouse managed. If the receiving plant is not warehouse managed then MB1A is all that you need to do to complete the scrapping of the goods.

Option 2.

You wish to reverse the goods movement back into the supplying plant and then perform the scrap transaction.

VL09 reverse good movement. (You will need the delivery number in order to do this)

LT0G (if using warehouse management) to reverse the goods back into a bin.

VL02N to cancel the delivery

ME22N to cancel the PO.

MB1A choose the bin location in which you placed the goods when you performed the reversal. (again if you have warehouse management). If non warehouse managed MB1A is all that needs to be completed to remove the goods from inventory.

Steps for Subcontracting

Like to share with you my Subcontracting Steps:

1. Define all the materials in your plant (subcontracting and packaging etc).

2. In the material master MRP 4 view there is one field in which you can mention that this material is not relevant to MRP planning, use this field for subcontracting material so that it will not be planned in MRP runs ( generally use this field for re-order point planning).

3. In the BOM for the subcontracting material put the special procurement key as Subcontracting and do not keep relevance for costing.

4. If you're using packaging material of your company and want to capture the cost of these materials in the subcontracting production order then put relevance for cost.

5. Define alternate BOMs for each customer.

6. Generally the routing will be the same but materials will change, define different prodcution versions for each alternate BOM and assign to the routing.

7. Define the activite types for packing and mixing in the work center and assign them to the cost center, use these for your routing.

8. Whenever you recive a sub-contracting order, use the relevant production version depending on the customer.

In my place all the palnts belong to the same client in sap and they want to use the same material code in both plants, so I think my subcontracting scenario might be different from yours but it give you some ideas to go about it.

Note: To Define Subcontracting Cost Center : Goto - ca02 - double click operation number. It is at the section call External Processing. (Subcontracting will be tick).

Goods receipt and goods issue through a PI sheet

Can anyone explain to me how the goods issue and goods receipt are done through a PI sheet. What's the logic behind calling the functional module.

Process instructions contain information on:

1. The individual processing steps to be carried out

2. The process data needed for further processing in process management such as process parameter,process data calculation formula,inspection results request etc. During maintenance of PI sheet, the material quantity consumed in each phases and the actual quantity produced are entered (confirmed). Based on the confirmed quantity the system generates GR for the process order for the finished product and a goods issue for the material withdrawal as soon as the process messages are sent.

Hope this may clear your doubt.

Thanks You, if the materials are warehouse managed, how does the goods receipt work, does it work as a normal transaction in the background...

In general scenerio of warehouse management, GR and GI takes in different stages. When you post the GR (both for purchased material and finshed goods) the material stored in entry storage type.

Based on the transport order materials are picked and moved to the permanant storage type. This will be taken care by warehouse controller. After entering the material quantity in PI sheet and posting the process messages, transfer request will be generated and the warehouse controller then convert the transfer request into transfer order. Based on the transfer order material will be picked from the permanent storage type and moves to exit storage type and from there material moves to shop floor.

I have no experience in this but this is the general procedure.

Goods Receipt (101) for Process Order

We are currently working on SAP 4.7. Currently experiencing a problem where the Goods Receipt (101) for Processorder is taking place before a confirmation is done. This causes a recon variance during month-end, meaning the 101 movement takes place

E.g. last month and the confirmation done in the current month. Is there a way that I can customize/set the system NOT to process a 101 movement UNTIL a Process order is confirmed? So, whatever quantity was confirmed, the 101 movement should take place for that quantity and not more.

Note: I have set the control key to NOT process an automatic 101 movement.

solution 1)

You have 2 options.

1. You can use User Statuses for this. You define the Confirmed user status and this user status lets goods receipt to be done. If not active, you don't let goods receipt. And you set this user status during confirmation, manually or you may use user exit to do this automatically. Settings for this option can be done in Customizing.

2. You should be careful for this option! You can edit the Standard statuses for this. The system has PCNF and CNF statuses for partially confirmed and fully confirmed. As far as you have explained, it seems that these statuses, when active, is configured that the system lets goods receipt done.

You can edit these statuses, to not to allow goods receipt done, if inactive. Settings for this option is done throught Status Editing transactions, BS23 for display, and BS22 for edit. I repeat, you should be careful, and extra careful if this is the first time you are using these transactions.

Solution 2)

That is one good TYPICAL problem of Production Planning. I would suggest not to go for big developments which will take long time to validate (may take even 3 or 4 months) because all other process related to settlement is also involved for your RECONCILIATION.

Development for sake of adjusting the quantities that you have calculated in EXCEL/Lotus - Can be considered. That is : you will be actually trying to upload the EXCESS Production Quantities or REDUCE Production Quantities in the existing Production Orders.

Because - You will definitely be doing a reconciliation outside SAP once. This data need to be punched in to SAP. Typically by 3rd or 4th day of the Month you will be doing this - I believe.

After your adjustment/reconciliation for the last month - you have to give clearance for running the SETTLEMENT process.

PP - Define the default components reservation movement type

During order creation, SAP will automatically creates reservations for the components that are kept in stock.

The reservations are assigned a movement type for the material issue with transaction OPKA.

You can control the material issue using the movement type.

Changes are only necessary if you do not wish to use the SAP default setting.

Movement types are predefined in the standard SAP R/3 System.

The default movement types used are:-

Dev. cl.	GR	GR-canc.	GI	GI canc.	GI-by-prod	GI-canc-by-prod
CO	101	102	261	262	531	532
IWO1			261	262

Serial Number For Component

I have a FG (A/C) which has a serial number. This A/c has a compressor in its BOM.

The client requirement is to link the compressor to A/c using serial number. So, I maintain serial number profile for the compressor also. But when I do mfbf (backflush) for the A/c, the system asks only for the serial no. profile only for the A/c & not for the compressor. How do I link the two?

You can assign componenets (with serial nos.) to assembly ( also with serial nos.) with COIB after goods receipt.( Menu path --Logistics -> Plant maintenance -> Management of technical objects -> Installed base -> Create (special) -> With reference to production data.)

Example: Say assembly sr. no. is 1 And components serial no. are- 1,5,10,20 and so on.

After assignment of components it can be viewed on right part of screen, You can have the assignment history--- ie for which assembly no. which components are assigned or vice versa. In production order i.e in descrete mfg. it can be directly done at the time of operation confirmation.

The following is the detail steps:

1. T code--COIB

2. Enter material code ( Assembly). You can select specific serial no. of assembly --- by putting sr. no. in serial no. field.

3. Click on list tree- you will find all assembly with serial numbers.

4. Click on explode-- it will show the BOM ( in bottom left corner of screen)

5. Select the assembly numbers for which you want to assign the componets

6. Clik on tranfer

7. Select the component

8. Also select the assembly no. on right side screen.

9. Select the serial no. which you want to assign to an assembly

10. Click on assign

11. You will find all the components will get assigned to assembly with serial numbers.

12. Now on right side screen there is "save" button. ( It will ask you create/ change as built in foreground or background?

13. Select as foreground

14. Save

15. You will find a message at the borttom --- saved.

16. Now you will find tick mark ( in front of assembly material) in right part of screen ( indication
of assignment of components)

SAP flow for REWORK activity

Question:

What is the SAP flow for REWORK activity in PP-PI.

Sample Scenerio:

1. Initial Process Order qty: 10pc

2. Confirmed QTY.: 9 PCS.

3. Rejection qty .: 1 pc.

4. Now that one pc. is to be reworked in operation no.0020.

How is it possible to understand later that, it is in this particular process order, so much of rework is carried out, and thats the reason the process cost has increased.

Rework during production depends on the client's decision. Like some companies want a separate process order to process this rejected quantity and some clients want to use the same process order, some even want to identify this rejected by assigning a new batch number.

But in some company, they do rework rarely but not as frequently as you do.

What they do is by inserting the new operation/phase after the actual operation/phase, and the operation quantity/base
quantity, queue times, etc will be according to the users decision. in u r example down 1 pc will be the operation/phase quantity.

and one more thing is that remember to PCNF the 9 pc if you want to identify the 1 pc with the new batch.

Additional comments::

You also need to remember the product costing aspect.

The primary costs of material should not be repeated while doing the rework. so, the generally accepted trend is that you create a separate order type for it and a common recipe with a rework operation and the materials you can assign while creating the process order.

Doing it in the same process order will have a problem of treacability of cost.

How Costing takes place in Production Orders

Can anyone please explain me the how the Costing takes place for the Production Orders.

Actually, I am new to this package , In Other Package (RAMCO ERP)
(The Process is like follows:

a. Production Work-Order Resource Cost Posts to Finance directly

b. Material Consumption postings happens from OSV(Order Settlement Variance) of MAC Module(Management Accounting).

Please somebody explain me as above in SAP.

The following are considered in costing,

1) cost of materials that you have issued for order

2) activity you have performed in terms of labour hours that you entered while confirming the order (the rates for the labour are defined in the activity planning tables of controlling module)..which is generally associated with a formula key and attached to a workcenter that is linked to a cost center also

3) overhead as applicable with respect to that cost center based on a predetermined cost center planning and its rate...

Costing updation in production order

How is costing updated for production order? After goods issue, conformation & GR, we do TECO. Before closing the order, costing details should be updated. Is it not?

Could you please guide me as to how this is done? Also, what is the transaction code to be used?

Planned cost is caculated if you click 'cost calculation' in production order. GI go production order will update actual material cost. Confirmation of production order will update actual activity cost. You can settle cost once production order has status TECO or DLV. From PP side, the transction is CO02

In IMG we can define that when we calcu. the planned cost.

There are 3 ways.

- Determine planned costs when saving,

- Do not determine planned costs when saving,

- Determine planned costs when saving if released.

But the actual cost is posted when we draw the material, when we confirm the order......We can use co02 and click the calcu. cost to update the cost in the prd order.

Error in Cost Calculation

I am using 4.7. When I was saving my production order, there was this error message that told me that there was an error in cost calculation. Do you have any suggestions what I couldn't have done? What can I do to fix this?

Check the log file in the Production Order -> Goto -> Logs -> For costing

Then take it from here....

Check whether the material for which you have created a production order has a price define in material master like Moving average price or Std price.

What is Backflushing?

Can anyone tell me what is backflushing for? When is it use?

Back flushing is nothing but automatic goods issue. System will automatically posts the goods issue when you confirm the operations.You have no need to make manual issue. It will reduce the effort.

Backflushing is automatic accounting (Goods issues - 261 mvt) of material consumed for production, at the time of confirmation. Eg. When a 4 wheeler automobile is rolled out from assy line, 4 wheels & Tyres are deemed to be consumed and issued to production order automatically by way of backflushing by the system.

Assy line picks the material from stores/ Assy line and use.

No Physical issue & Manual posting ( Goods Issue) by Stores.

Backflush is used for material which are a must and having fixed relationship.

This can be configured in MRP2 Screen,Work centre, Routing and production order.

Each has some special function.

If you configure this in routing or production order you have no need to activate this in MRP2 or Work center screen.

MRP2 Screen defines whether material components are backflushed are to be made at the work center.

When we do the back flush the backlogs are being created for the BOM components and we are getting the message "Backlogs from backflush were created or changed" - its just an informative message. Do you think this has got something to do with the negative postings ?

Backlogs are created due to different reasons.

This message tells that "there is no sufficient stocks for the bom component/not able to backflush all the material due to plant data locked etc" at the time of backflushing the BOM Material and hence the Post-processing list is created that you have to Re-process for stock updation of each material.

To avoid this you can confirm the following things.

1.Ensure that suffecicient stock is available in the backflushing locations of each materail.

2.To prevent the generation of "post-processing list" you can block the BOM from getting backflushed if sufficient stock is not available in specified location for the BOM COMPONENTS. To do this change the "REM profile" to "002"in MRP4 view for the BOM MATERIAL.(if the profile is not available you can crate it through SPRO).

3. To clear the existing Backlog use transcation MF47 and re-process(be ensure that required stocks is available for each bom component)

Regarding Production Order Confirmation

Production order confirmation with future date is not allowed

Future dates can be configured in the confirmation configuration.

In configuration OPK4, define confirmation parameters.

When this configuration comes up, in the "Checks" Sections, the last parameter says

"Date in the future."

Check this box if you want your dates in the future.

It determines whether dates in the future can be used in a confirmation.

If the indicator is not set, you cannot make any confirmations using dates in the future.

If you try to do so, the system will issues an error message.

What is the importance of Production Order confirmation? Is there any specification to use type of confirmation ie., CO11 or CO15 or CO11N ?

A confirmation documents the processing status of orders, operations, suboperations and individual capacities.

You can enter a confirmation

- For an Opeartion (co11/co11n)

You have the following options:

- To confirm quantities, durations, activities or personnel data.

- To make a confirmation at a particular point in time (for example, at the start of setup or the finish of processing) enter a confirmation.

- When you confirm time events, the system calculates the required duration. For example, the setup duration is the time between setup start and setup finish.

- For an Order : CO15

If you enter a confirmation at order header level, the system confirms all the operations that have a control key in which confirmation is optional or necessary. The quantitiesconfirmed in the operations are proportional to the quantities confirmed in the order header.

I want to stop the confirmation of production order whenever there is no goods issue to the production order so that I can get the correct material accounting report. I can't set backfliush indicator to the material at Routing level because we are handling the raw material in batches, so I have to assign the batches to issue the raw material.( tcode CO27 ).

We have set the criteria to release the production order is only availability of raw material in plant, so system checks only the availability of raw material & releases the order. Is it possible after issuing the raw material the release of order took place?

Goods issues before release of order is not possible in SAP.

You can think of following things.

1) In opj4,you can block release of order if it has missing parts.

2) By using 'user exit' it is possible to disallow confirmation if goods issues are not posted against each component.

Automatic Conversion to Production Orders

Is there anyone out there who knows if it is possible to make an automatic change of planned orders to production orders right away - or perhaps even to skip the planned orders and create pp - orders instead?

I have a customer who want to do this (skip the manual conversion).
Perhaps it is impossible?

To create production orders in MRP run without checking first the order proposals (planned orders) is not a recommended process at all. It is against the accepted norms in production/inventory management and its MRP-2 logic on which SAP software is also based on.

If you have complex production - you'd have a nightmare closing all the production orders with the errors not resolved at the prior to conversion stage. On the other hand, if it is too simple production with only a handful of operations and no strict requirement of production control (which seems to be your case, for me), then please do away with production orders, and use the repetitive manufacturing where planned orders are the final.

I am confident that a consultant who can see the need and benefit for the wisdom of planned order conversion as a separate manual process, should ALWAYS be able to convince customer.

As always, the question is, whether you want the right shoe to fit the foot, or cut the foot to fit the shoe.

Material Stock in Production Order

I have the problem in stock against production order:

Our scenario is we don’t want to create a sales order. I create a production order that has 5 operations. The first operation is sub contracting. Through control key (External operation) I create the purchase requisition and convert purchase order in that operation. Through the PO I can issue the ROH and received HALB. When I received the HALB the stock of ROH is automatically reduced. But HALB stock doesn’t increase. In this case where is my HALB material for second operation?

In this case how to proceed?

Do you have a material code for HALB? if you have material code than you can have stock increased. I think there's some mistake with the process. the subcontracting in operation is only for the operation, not the material.

In your configuration, you subcontract the first operation of the FERT production. and there's no stock increase of FERT or HALB when the first operation is completed (confirmation by purchase order...)

And what you want could be possible like this:

You create the HALB material code, and you make it external procurement (F in standard) and with special procurement key subcontracting (30 in standard) (enter these fields in material master mrp2 view).

Then you can create purchase order for the HALB material when needed, and send ROH material to the subcontractor for the purchase order and post goods receipt for HALB material and stock increases.

And accordingly, since the production of HALB is a different process, not a sub process of FERT material, you should change the routing of FERT material to 4 operations, omitting the first operation, which is subcontracted production of HALB. And you should also change the BOM of the FERT material, and remove the ROH (which is used for producing HALB) and put the HALB material itself.

Production Setup Time

My client has a production setup where there is a particular activity which has a setup time of 8 hrs when it is executed for the first time, but if another production order is taken up for the same material then the set up rime is zero. That is if I produce a material x at a particular work center the for the first time the set up time is 8 hrs, but if another production order of same material x is executed right after this order then the setup time is zero. Now, if we give the setup time as 8 hrs in routing then the system will calculate total time taking 8 hrs as setup time each time. Is there any way in which the system takes the setup time as zero when a production order for a particular material as repeated.

Take a look at the functionality associated with the set up group and transition matrix, if I remember rightly though the setup times are only adjusted after production orders have been despatched in the planning table as this is the first time SAP is aware of the sequence of manufacture

If I am not wrong, setup matrix and transition matrix can be made use of when you go from one operation to the other in a particular routing. But, here there is only 1 operation in the routing and that operation is being repeated for different production orders of the same material. Can this different setup times be given for this same operation.

If I remember if setup group key is defined in the operation in the routing and then the transition times between setup keys is maintained in configuration.

So it's possible to create something like the following:

From Key 1 To Key 1 30 mins
From Key 1 To Key 2 8 hours

So different the operations in orders for the same material should both have the same key and should have a setup time on 30 mins between them.

Then when a different material with a different setup key comes along in the manufacturing sequence it will pick up an 8 hour setup time

I am facing a much similar problem. We have 15 work stations and daily 50 - 60 production orders are printed. I am maintaining production time as well as set up time in the routings ( There exists a separate routing for all the part no's ). When a production order is printed it copies the setup time from routings. Suppose in one work station there happens has to be 2 production orders processed one by one then the setup is only once. but due to the fact that setup is present in the routings the production order shows a non-conformity of setup time for the 2nd production order. How to solve this problem.

We have a similar situation in the company I work for, we don't actually maintain routings at material level but use reference operation sets at an aggregate level to represent the different production footprints (the link to each material is then made through the production version in the material master).

We measure the actual setup time confirmed in each order belonging to each footprint / family over a rolling three month period and maintain an average setup time in the reference operation set. This gets copied to each production order, but is only to make sure that a time allowance is left in each production week for set up to create meaningful capacity planning data.

When the planners develop the manufacturing schedule using the graphical planning table they then update the setup time in each order automatically with the setup times maintained in the transition matrix so it's more accurate, as it takes account of the order being made on the workcentre previously. So in our case two orders sharing the same footprint will have different setup times.

What is Discrete Manufacturing, REM and Demand Management?

1. What is Discrete Manufacturing?
2. What is REM?
3. What is Demand Management?

Here are difference between Discrete and REM and small explanation about discrete and repetative manf.:

- A typical characteristic of discrete manufacturing is the frequent switching from one manufactured product to another. The products are typically manufactured in individually defined lots, the sequence of work centers through production varying for each one of these. Costs are calculated on the basis of orders and individual lots.

- In Repetitive Manufacturing, products remain unchanged over a longer period and are not manufactured in individually defined lots. Instead, a total quantity is produced over a certain period at a certain rate.

- Discrete manufacturing typically involves varying the sequence of work centers through which the products can pass during production. The order of work centers is determined in routings, which can often be very complex. There can be waiting times between the individual work centers. Also, semi-finished products are frequently placed in interim storage prior to further processing.

- Repetitive Manufacturing, on the other hand, normally involves a relatively constant flow on production lines. Semi-finished products are usually processed further immediately without being put in interim storage. Routings tend to be relatively simple.

- In discrete manufacturing, component materials are staged with specific reference to the individual production lots. Completion confirmations for the various steps and processes document the work progress and enable fine-tune controlling.

- In Repetitive Manufacturing, components are often staged at the production line without reference to a particular order. Completion confirmations are less detailed, and the recording of actual data is simplified.

- The function of Demand Management is to determine requirement quantities and delivery dates for finished products assemblies. Customer requirements are created in sales order management. To create a demand program, Demand Management uses planned independent requirements and customer requirements.

To create the demand program, you must define the planning strategy for a product. Planning strategies represent the methods of production for planning and manufacturing or procuring a product.

Using these strategies, you can decide if production is triggered by sales orders (make-to-order production), or if it is not triggered by sales orders (make-to-stock production).You can have sales orders and stock orders in the demand program. If the production time is long in relation to the standard market delivery time, you can produce the product or certain assemblies before there are sales orders. In this case, sales quantities are planned, for example, with the aid of a sales forecast.

Functions of Production Version

Can somebody enlighten me on the functions of production version and some tips on its configuration?

Production Versions are used to describe the production process to be used for planned / production order.

You can use the production versions based on:

1. Lot size qty
2. Bom explosion dates
3. Based on MRP Group

Why is it required?

Suppose you have 2/3 production lines and 2/3 alternative BOMs to produce one FG.

How system will come to know which BOM and Routing to be used. This is done thru Prod.Version.

In production version we maintain the combination of BOM and routing.
Also it can be designed with lot size or validity period.
Go to MM02--->MRP4 / Work scheduling view ----> Prod.Version.
Enter the validity period and lot size.
After entering the reqd. routing no. and BOM alternative , carry a check.
After getting the Green signals ,Continue.
Thus you have saved the prod. version.
Mass processing TCode- C223.

Does this mean that I have to activate all the BOM’s if in case I have 3 alternative BOM’s? if yes, then, will it these 3 BOM’s be exploded in MRP? I’m just worried ‘coz I might bloat our inventory if there are three active BOM’s.

No.First of all need not worry about the BOM explosion.

As I told you earlier which BOM and which Routing is decided by Prod.Version.

So in MRP the active prod.version only will be considered. Thus active BOM and active Routing will be used for MRP.

How to deactivate the alternative BOMs and Routing?

Two Ways:

1. You lock all other non-relevant Prod.Versions in MM02 of the FG/SFG material.(Every alternative BOM and routing forms a Prod.Version) Thus even if there are 2/3 prod.versions System will go and check for Unlocked prod. version and use it.

2. If you don't want to do this business of "Lock & Unlock" just place the required version at the first place in list of prod.versions in MRP4 view of the material.
Once system finds the first prod.version it will not spend energy in searching other alternatives.

Also please.don't forget to maintain the selection value of "2" in MRP 4 view for BOM selection.

This will enable you to start the use of prod. version functionality in SAP-PP.(very good tool for practical purposes, costing and MRP).

What is Firming Type in the MRP Types

The firming type dictates the behavior of planning with PTR (Planning Time Fence), i.e whether the system should automatically firm the unfirmed planned orders and purchase requisitions, which are outside the PTF as they move to fall within PTF as days progress and also if new planning proposals are needed to be created to cover the shortage within PTF.

There are five firming types, viz. 0, 1, 2, 3, and 4.

Listed below are the characteristics of these four firming types:

0 - PTF has not effect on planning.

1 - All unfirmed planning proposals (planned orders/purch reqs) moving into PTF will automatically be firmed by the system, thus protecting them from anymore automatica changes due to subsequent planning runs). At the same time, if the MRP engine identifies any shortage within PTF, the system will create new planned orders, but schedule them to lie JUST outside the end of PTF, thus leaving them as unfirmed elements.

2 - All unfirmed planning proposals (planned orders/purch reqs) moving into PTF will automatically be firmed by the system, thus protecting them from anymore automatica changes due to subsequent planning runs). BUT, the system will NOT create any new planning proposals to cover the shortages identified within PTF. The shortage is left as a -ve qty for the planner to deal with manually.

3 - No automatic firming of any unfirmed planned orders, even if they move into PTF. They will be moved out to lie JUST outside the PTF. The system will create new proposals to cover the shortage but schedule them outside the PTF and keep them as unfirmed.

4 - No automatic firming / No automatic creation of planning proposals to cover shortage.

Batch Characteristics while Running MRP

Can batch characteristics be considered while running a MRP? I have a finished good that has acid value as its batch characteristics. Based on this acid value I am trying to pick up a certain batch of raw material that is also batch managed and has its characteristics as acid value.

While running MRP qty requirements are transferred and stock is reserved but the required batch qty (having the acid value required) of raw material is not picked.

MRP does NOT use batch data.

Because, while entering PIR, there's no field to enter batch number. When system creates planned order, also there's no field to enter batch number, both for the header material and planned order components.

There's one exception in PP-PI, where you can use batch specific unit of measure. That is, you can define batch level alternative unit of measure. For example, you may have a liquid, and it may have Liters as base unit of measure, and it may also have the percent based active ingredient, that is Liters of the Active Ingredient can be an alternative unit of measure.

So, every movement of material in the system will be done using 2 unit of measures at the same time. e.g. goods receipt of 100 Lt liquid (which is also 80 Liters of Alcohol, because of 80% alcohol potency), for the first batch. also goods receipt of another 100 Lt liquid (which is 60 Liters of Alcohol this time, because of 60% alcohol potency) When you look at your stock, you will see 200 LT liquid, which is equivalent to 140 LT Alcohol ingredient.

What's the use of this active ingredient data during MRP?

When you define the batch unit of measure, you define limits for it. Say, our liquid in previous example can only be between 50% and 90%, therefore we define it like that. Every time we receive this material from vendor, we make the quality inspection and determine the Alcohol percentage. however, while running MRP, system will create purchase requisitions, but it doesn't know the percentage of the liquid our vendor will send.

How will it determine the correct quantity?

In this case, we define a percentage for MRP, and MRP will use that percentage for calculation. e.g. if there's an industry standard that all vendors of that liquid produce it at 75%, or if we are always working with a vendor who produces 68%, then we can enter this data (per material) and MRP will calculate with that percentage.

Lose of link between sales order and production order

Issue with production order confirmation

Due to lose of link between sales order and production order due to credit check problem The production order for higher level component lost link and was hanging out in limbo status.

Now the production order at lower level component also loose track and they were already released where as production orders at higher level were not released

So now lower level production orders were tecoed with BDC program as there were 1200 production orders to be tecoed at lower level .

So once I deleted lower level, I saw that there were planned orders for same component and same sales order and item, this was because MRP was running at same time .

So this MRP generated planned orders as the production orders at highrt level were still hanging there and to full fill those production orders lower level component planned orders were generated

So now cleared the production orders in top level and ran MRP in display mode and found that there were no planned orders for lower level component.

But still there were two more planned order created at higher level has I previously tecoed them and did zero confirmation due to some other reason, So I had to unteco them to delete these planned orders and also cancel confirmation to get the production order element on to MD04 screen. Once Iam done with that it show a message 26

So It should be clear that if the exception message is 20 ie cancel process then that production order must be deleted as there is no requirement to consume this order. As all this context was made in MTO stock product.

How to Configure Range Of Coverage Profile

I am trying to configure the range of coverage profile to provide a 6 months safety stock, in which the 'target cov' field should be populated with 180 days, but the that field only accepts 2 characters max. Is there another way of accomplishing this or am I doing something wrong. Please let me know. The current setup is:
- Period Indicator = M (Month)
- Type of Period = 1 (Workdays)
- Range of coverage in the first period:
- Min = blank; Target = 90; Max = blank
In this Target value accepts only digit numbers.

Yes the system accepts only two digits. But since you want stock coverage for 180 days. Use target as say 60 and the number of periods as 3 . Try it and keep us posted. But the one other issue is the system calculates the dynamic safety stock.
It easy to calculate the stock for the first period but for the later periods its difficult. So if later there is a problem with the quantity then its difficult to calculate or cross check what system has proposed.

Using target as 60 and number of periods as 3, only results in system maintaining safety stock for 60 days for first 3 periods. I found out that there is no way out of this. Strange that SAP wouldn't let the companies plan for inventory coverage more than
99 days. This is a pharmaceutical client whose procurement lead times are more than 5 months for some of the materials, where they want to maintain a 6 month coverage and SAP wouldn't allow to achieve it. Am I doing something wrong here. Is there another way of maintaining dynamic safety stock for 180 days requirements coverage? Please share your knowledge.

Please let me know in details how the profile coverage works in SAP. In details means how it is being calculated and what is being considered. As I am figuring how I could make use of this function that my customer require us to keep 15 days inventory and customer forecast flucuates drastically every week.

In customizing in MRP calculation menu , you have Range of coverage. Define the range of coverage you want , as you said 15 days for a period of 3 months. Then in the profile first fill the Avg. daily req data and then the range of coverage data.
Use this profile in the material master mrp II view(I think), in range of coverage.
As far as calcualtion are concerned its very to calcualte the Qty for the first period and then for the later periods its difficult.
May be I am wrong, just try and keep us posted

The Range of Coverage profile is define specific to a plant in IMG and then assigned to materials in master data MRP 2 view. To define the profile, use menu path
IMG->PP->MRP->MRP Calculation->Define Range of Coverage Profile. In the definition, there are two sections of data that you need to fill in.
1. Parameters for calculation of average daily requirements and Period indicator.
2. Minimum, Target, and Maximum stock calculation parameters.

PARAMETERS FOR AVERAGE DAILY REQUIREMENTS CALCULATION:

Choose the period indicator as Month, Period, or Week.
Specify the number of periods. This is used by system to calculate the average daily requirements.
Select the "Type of Period Length", ie. as workdays or calendar days or standard days (days per period). If the type of period length is selected as standard days, they you have to specify the "days per period". Using these three parameters, the system calculates average daily requirements using the formula:
average daily requirements = Sum of requirements in the number of periods / number of days in the number of periods.

PARAMETERS FOR TARGET STOCK AS DAY'S OF SUPPLY

Then you have to specify how many workdays of supply you want to maintain as target stock, in your case 15 workdays. If you wanted to maintain a constant 15 days of supply as inventory through out the planning horizon, just specify the target stock as 15 days and leave rest of the fields as blank, i.e min, max, and number of periods. The number of periods in this section simply maintains the target stock for that many periods from the date of MRP run. This way you can tell the system to maintain different target stock levels for three different period intervals. For example, if you wanted to maintain 15 days stock for first 3 periods, then specify the target stock as 15 days and number of periods corresponding to it as 3. The system then will maintain 15 days supply as inventory for first 3 periods from the date of MRP run and subsequent months zero inventory will be maintained. This will allow you to maintain your 15 days supply constantly for 3 periods.

Reservation Not Created During MRP Run

I have created a planned order thro MRP run, but reservation for raw material is not created, even though stock is available. After conversion to Production order reservation is created. After confirmation and goods reciept MB31 final product is updated in storage location, but raw material quantity is not reducing.

Can any one give solution for this.

PART I

After MRP run, based on the demand Planned order will be created and for the BOM components sytem will create dependent requirement if stock is available. If stock is not available system creates a planned order or a purchase requistation. Once the planned order of the Header material is converted into a production order , then system converts the dependent requirement into reservations.

PART II

After confirmation and goods reciept if the item components are not consumed, it means you have not defined backflush process. If you want to issue manualy to the order u can use T-CODE MB1A, for the same.

1. Check backflush indicator either in routing /workcenter or in material master.
2. In customization production control -operations-confirmation ( general individual entry screen ) check-- post open reservation . It will post open reservation while confirmation.
3. After doing this cross check failed goods movements.

MRP Monthly lot size

Appreciated if some guide can be provided.
MRP lot size has been set to MB (Monthly lot size)

It is known that with this setting, material are always bring in on the first working day of the month.
Ex: Dep requirement 26-10-04 100 pcs
Dep requirement 30-10-04 190 pcs

When MRP completion, the PR item shown 1-10-2004 290 pcs, is that any possible to bring in material just right before dependant requirement 26-10-04 say about 24 or 25 of the month.
Because. we dont tend to keep more stocks until actual requirement.

Any comment are welcome.

In that case you might like to consider lot size key WB (weekly). It will bring in material at the first working day of the week. In your case it is Oct 25, 2004

But in this case, I will have increase administrative cost on monitoring the material lot weekly.
I want to have monthly lot size that group all the requirement, but bring in material as close as possible on the first requirement.
Any comment are welcome..

How about manually change delivery date in PO item

Check your config. in OMI4 - scheduling may by ''1'" for Lot size of MB.
Change to Blank.

Friend PPS is correct, Schedule the "REQUIREMENTS DATE = DELIVERY DATE" option in Customizing for Lot Size MB (use Blank instead of 1) & your reqt 'll be met...

We have similar problem and when I applied your solution, the proposed requirement date is perfect.

Planning Strategy Selection

Selection priority for planning strategy is:

First material, second MRP group and last plant parameters. E.g. System first checks for material, if strategy is defined there, that is used, if it's not maintained there, then it checks if it's defined in MRP group.

That is the same for all MRP parameters, not only strategy.

If you wanna test how it works, try this:

1. create an mrp group, say 0001, and assign strategy group "40 - planning with final assembly" in the MRP group parameters.

2. create a material, say product1 and define planning strategy as "20 - make to order". And also enter the MRP group 0001 in material master.

3. Create a sales order and create an order item for product1.

4. In the sales order header, go to the Procurement tab. There, you will see the requirement type for product1, which is automatically selected by system according to the planning strategy it uses. That requirement type should be "KE" if strategy 20 is selected, or it should be "KSL" if strategy 40 is selected by system.

5. In my test, system selected KE requirement type, which indicates that system used strategy 20, and which I have entered in the material master. It didn't select KSL, which indicates that system uses strategy 40, which is entered in the mrp group. Finally, this test shows that system takes the planning strategy in material master (if it's entered), not the strategy in MRP group.

I think you can now make another test how system uses MRP group's planning strategy. (hint: Delete planing strategy from the material master and repeat the previous test steps. That would end up using strategy 40, which is selected using the MRP group parameters.)

When do we use planning without final assembly strategy?

We have mainly MTS, MTO, planning with final assembly and planning without final assembly. Now when we are dealing with planning with final assembly, we would usually produce subassemblies (HALBs I guess) using make to stock, so do we use a planning strategy 70 for subassemblies and do a MRP run. To my knowledge I thought we run MRP only for final products (with final assembly) so in that case how would we plan for subassembly products.

I get to understand you are using strategy planning with final assembly. So you are using strategy 40 for the finished product.

Just to clarify certain things, MRP can be run for any material...be it finished or semi finished or raw material. Actually when you run a MRP for the finished product using MD02, you are doing a multilevel run.

Secondly, when you are using 40 for the finished product you may or may not use any strategy for the semi finished goods. It depends on your business. If you are going to produce semi finished goods independent of the finished goods, you may have a make to stock strategy 10 (one of the many options) and produce them independent of the finished good requirement. Now when a requirement will be generated for the finished good and a MRP run will be taken, it will show that the Semi Finished is either in stock or a planned/production order exists and thus only the remaining quantity will be planned for (there is a better strategy existing for this type of a scenario.....

However if you do not put any strategy for the Semi Finished, then planned orders will be created for the Semi Finished for the same quantity as the orders created for the Finished goods.

Why Planning file entry still Exists?

Does anyone know why a planning file entry would exist for NETCH or NETPL when there has been NO activity on the material since the last planning run? No movements, no PO's created, no Orders taken, no activity whatsoever . . . and MRP ran, created a planned order, which was converted to a requisition and then a PO. This PO was converted for a date earlier than what MRP recommended.

Now each time MRP runs, we get exception #15 - delay the order until later (gives date). We don't change it and the planning file entry doesn't go away, even after the run.

Found a note that seemed to apply, but . . . I guess it doesn't really.

"If the planning run terminates for a material with planning file entry on account of an error message, the planning file entry is not deleted if this is not explicitly set in customizing. In transaction OMDY, you can set for which errors (message number) you want the planning file entry being deleted."

I thought this was my answer. However, after looking in OMDY - the message #015 = Dates incorrect (start date > finish date). And message #15 = Enter value for version number increment (VersNumIncr.).

Neither of these defines my MRP List exception message 15 = "Postpone process (28.06.2004/26.06.2004)" - on a current date of 03/06/2004. It's CLOSE, but not the first message.

So if I set the field for the deletion of the planning file entry, it still wouldn't affect my real problem - trying to get this entry to 'go away' after doing what it was supposed to do.

Please Check CS15 - where used list. May be this material has been added to a BOM of a product/Assy, which has caused an entry in planning file.

Check MD04 for the source of reqt.

Also check MD63, if a PIR exists.

If not, delete from planning file. Try report RMMDVM10 - consistency check.

THE COMMON PLANNING

PP - The Common Planning Strategy used

The planning strategies are maintained in Customizing for Demand Management in SM30 - V_T461S.

Define the Planned Requirement Type and assign the requirement class in OMP1.

Define the requirement class in OMPO.

Check the independent requirement and consumption of requirement class in OMPC.

Maintain the message for invalid requirement type in OMPJ.

You define the strategy group in SM30 - V_T461P.

You define the Plant to MRP group in SM30 - V_T438M_S.

Maintain the consumption mode and period of adjustment in SM30 - V_T438M_V.

Listed here are some common used planning strategies :-

Strategy 10 in summary :-

1. Sales Order creation - no impact.

2. Goods Receipt - reduce the planned independent requirement during MRP run
For e.g. if PIR is 100, quantity remained as 100 in PIR, however during MRP run,
100 will not be included in the MRP planned as stock is available.

3. Delivery - minus the quantity for the oldest planned independent in demand management.
For e.g. if PIR is 100 and delivery 90, PIR becomes 10 (withdrawal 90).

10

LSF

Make-to-stock production

KSL

Sale from stock without independent requirement reduction

Choose this strategy if you want production to be determined by a production plan (Demand Management) and if you do not want sales orders to influence production directly.

You must maintain the following master data for the finished product:

Strategy group 10 on the MRP screen.

Item category group (for example, NORM) on the Sales Organization screen.

Availability check field in Customizing so that you perform an availability check
without replenishment lead times (in the standard system, you must enter 02 here).

In net requirements planning according to strategy 10, the order does not create a requirement; the sales order is displayed, but does not generate planned orders.

The planned independent requirement is reduced during processing of the goods issue.
Old quantities can still be retrieved by using either
Goto -> Schedule line history in Demand Management, or by using the total requirements list
(Evaluations -> Display total requirements from the Demand Management menu).
The quantities issued are displayed in the Withdrawal quantity field.

The system always reduces the oldest planned independent requirements unless the consumption fields (Consumption mode, Fwd consumption per., Bwd consumption per.) are maintained in the material master or in the MRP group.

11

BSF

Gross planned independent requirements

KSL

Sale from stock with out Independent requirement reduction

Strategy 11 in summary :-

1. Sales Order creation - no impact.

2. Goods Receipt - minus the quantity for the oldest planned independent in demand management.
For e.g. if PIR is 100 and delivery 90, PIR becomes 10 (withdrawal 90).

3. Delivery - no impact as delivery is issue from sales order.

This strategy is particularly useful if you need to produce, regardless of whether you have stock or not. For instance, steel or cement producers might want to use this strategy because they cannot shut down production; a blast furnace or a cement factory must continue to produce, even if this means having to produce to stock.

You need to maintain the following master data for the finished product:

Maintain strategy group 11 on the MRP screen.

Set the Mixed MRP indicator to 2 on the MRP screen.

Maintain the item category group (for example, NORM) on the Sales Organization screen.

Maintain the Availability check field so that you perform an availability check without the replenishment lead time (checking group 02 in the standard system).

Strategy	10	11
Stock is taken into account	Yes	No

Reduction of planned independent requirements takes place during … … goods issue for ... goods receipt for a production the delivery order (discrete production), for a planned order (repetitive manufacturing), or for a purchase order (trading goods).