Visit the SAP Forum

Languages : English | Dutch | French | Portugese | Italian



INTERVIEW EBOOK
Get 30,000 Interview Questions & Answers in an eBook.

Interview Success Kit - Get Success in Job Interviews



Send your Resume to 6000 Companies
START YOUR WEBSITE
India's Best Web Hosting Company

PP - The Common Planning Strategy used


Home »Production Management » PP - The Common Planning Strategy used


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 without 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).

20 KE Individual sales order without
consumption

Strategy 20 in summary :-

1. Sales Order creation is the only impact.

2. Demand management not in used.

In make-to-order production, a product is produced specifically for an individual sales order. This planning strategy is used when planning of the (parent) product is not required or not possible. Neither Demand Management is involved in this process, nor is there an allocation mechanism. Orders are taken as they come. This strategy represents a production procedure in which each product is only produced once, although over time the same or similar production processes are repeated. Each product is specifically produced for an individual customer so that the finished product is rarely placed in stock.

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

Strategy group 20 on the MRP screen
Item category group (such as NORM) on the Sales Organization screen

Sales Order -> MRP -> Customer Stock Finished Product -> Delivery ----+
^ |
| |
+-------------------------------------------------------------------------+
Reduction


40 VSF Planning with final assembly KSV Sales order with consumption

Strategy 40 in summary :-

1. Stocks on hand reduces the PIR during MRP run.
e.g. if stock is 100 and PIR is 100, MRP run will not prompt 100 for procurement.
if stock is 0 and PIR is 100, MRP run will prompt 100 for procurement.

2. Sales order creation reduces the PIR.
e.g. if PIR is 100, sales order 90, PIR becomes 10 (withdrawal 90).

3. Delivery reduces the Sales Order.


This strategy is probably the most widely used make-to-stock strategy. It makes sense to use this planning strategy if you can forecast production quantities for the final product.

Planned independent requirements are consumed by incoming sales orders so that the master plan is always adjusted to suit the current requirements situation. This means that the important feature of this planning strategy is that you can react quickly to customers’ requirements. The smoothing of the master plan is less important.

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

Strategy group 40 on the MRP screen.
Consumption parameters (Consumption mode, Bwd consumption, Fwd consumption) to allow
consumption of independent requirements. If no consumption parameters are maintained in the
material master, the system uses default values are taken from the MRP group.
To control consumption, you maintain a consumption mode as well as a consumption period.


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

Four important points :-

1. Planned independent requirements are used to trigger the procurement and production of
the necessary assemblies and components before receipt of the sales orders.

2. As soon as the sales order is received, it consumes the planned independent requirements.

3. An ATP (available to promise) logic during sales order processing will checks whether
sufficient planned independent requirements have been planned to cover the sales order.

4. Requirements from the sales orders are passed on to production and can lead to changes
made to procurement if the requirements from the sales orders exceed the planned
independent requirement quantities. If there is insufficient coverage of components
(the sales order quantities exceed the planned independent requirement quantities), the
sales orders cannot be confirmed. The system therefore automatically adjusts the master
plan. Planned independent requirement quantities that are left unconsumed increase the
warehouse stock of the finished product.

A D V E R T I S E M E N T

A D V E R T I S E M E N T

S A P - R E S O U R C E S


Get Free SAP Resources:

Are you looking for:
  • SAP Jobs
  • Free SAP eBooks
  • SAP Softwares
  • SAP Tutorials
  • ERP Implementation Examples
Enter Email Address:
(Enter your email address above and we will instantly send you the download link to you, when you confirm your email.)
Search SAP Resources:
discussionDiscussion Center
Discuss
Discuss

Query

Feedback
Yahoo Groups
Y! Group
Sirfdosti Groups
Sirfdosti
Contact Us
Contact
Sign in

User Name:
Password:
Forget password? | Register


INTERVIEW EBOOK

Get 30,000 Interview Questions & Answers in an eBook.

Interview Success Kit - Get Success in Job Interviews


Send your Resume to 6000 Companies

SAP Resources

  • SAP Articles
  • SAP Books
  • SAP Certifications
  • SAP Companies
  • SAP Study Materials
  • SAP Events
  • SAP Faqs
  • SAP Jobs
  • SAP Job Consultants
  • SAP Links
  • SAP News
  • SAP Sample Papers
  • SAP Interview Questions
  • SAP Training Institutes
  •  
    SAP Tutorial

  • Introduction
  • SAP History
  • SAP Facts
  • SAP Tables
  • SAP Function
  • SAP Report
  • Reasons To Use SAP
  • SAP Landscape
  • SAP Transaction Code
  • SAP Lotus Notes Integration
  • Business Connector and XML
  • Enterprise Release 4.7

  • SAP Training Institutes

  • SAP Training Institutes
  • Job Consultants Address
  • SAP Companies Address

  • Business Process Cycle

  • Analyze
  • Design
  • Implement
  • Operate
  • Optimize
  • Skills And Education

  • Logistics Module

  • Sales and Distribution
  • Quality Management
  • Materail Management
  • Plant Maintenance
  • Financial Modules (FI/CO)
  • Project system
  • Production Planning
  • Service Management

  • SAP NetWeaver

  • Introduction
  • Object Model
  • Interoperability
  • Creating Web Apps
  • Java Connector
  • Advantages & Conclusion
  • Life Cycle Management
  • Composite Application Framework

  • SAP Tools

  • SQL Trace Tool
  • SAP CRM
  • SAP SRM
  • SAP SCM
  • SAP ERP
  • SAP BW

  • SAP Modules

  • SAP FI Module
  • SAP CO Module

  • SAP Technical

  • SAP ITS Architecture
  • Financial Management
  • Manufacturing Planning and Execution
  • Customer Order Management
  • Lackbox Processing
  • SD and Financial Accounting Integration
  • SAP - HR (Human Resource)

  • SAP Miscellanous

  • Web Application Server(WAS)
  • Data Archiving
  • Mobile Engine
  • SAP Script
  • SAP Transactions
  • SAP Business Warehouse(BW)

  • SAP Reference

  • SAP Facts
  • SAP Tables
  • SAP Function
  • SAP Report
  • SAP Landscape

  • SAP Others

  • SAP Treasury
  • SAP Finance
  • SAP WAS
  • SAP Data Archiving
  • SAP ALE
  • SAP EDI
  • SAP Exchange
  • SAP X-APPS
  • SAP Applications Components
  • SAP Software
  • Dunning
  • SAP IDES
  • SAP Payroll Basics
  • SAP BASIS and Security Authorization
  • SAP Backup
  • SAP Router

  • ABAP Tutorials

  • Introduction
  • ABAP Transaction
  • ABAP Function
  • ABAP File Processing
  • ABAP Objects
  • ABAP Syntax
  • ABAP Queries
  • SAPMail Using ABAP
  • ABAP Programming Hints

  • SAP Projects & Codes

  • Finding the user-exits
  • Purchase Order Display
  • Batch Input
  • Dynamic Open SQL
  • Creating Extract Dataset
  • Reading database tables
  • Load table from a UNIX file
  • Create subscreen

  • SAP Resources

  • SAP Books
  • SAP Links

  • Interview Question



  • Common Interview Que.
  • ABAP Interview Que.
  • ERP Interview Que.
  • HR Interview Que.
  • MM Interview Que.
  • PP Interview Que.
  • ALE Interview Que.
  • EDI Interview Que.
  • Basis Interview Questions
  • SAP-SD Interview Questions
  • FI&CO Interview Questions
  • BW Interview Questions
  • CRM Interview Questions
  • Interview Questions

  • Careers at SAP

  • Careers in SAP (SAP Jobs)
  • Advertise
  •