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Detailed difference btw 40& 50 Planning

Strategies
October 1, 2013 | 537 Views |

muthu kumars
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MAN Production Planning (PP)

Manufacturing | SAP ERP | enterprise resource planning | sap erp manufacturing production planning

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Planning with Final Assembly (40):

In strategy 40, the main focus is on flexibility in reacting to
customers’ demands.
Production, including final assembly, is triggered by the
planned independent requirements before the sales order is
received.
You plan the planned independent requirements for the
finished product in Demand Management. Incoming sales
orders consume these planned independent requirements.
Planned independent requirements left unconsumed increase
the warehouse stock – as long as they are not adjusted to
customer requirements (“Adjust Requirements“ is a function
to be run periodically to ensure that old, unconsumed
planned independent requirements no longer have an effect
on planning).
If the customer requirement exceeds planned independent
requirements, the system automatically creates a planned
order for the unplanned quantity in the next MRP run.
You can check availability using the ATP logic.
The consumption of planned independent requirements by
customer requirements depends on the settings defined for
the consumption mode and the consumption periods.

Consumption Mode of Planning with Final Assembly

(40):

You can use the consumption mode to define in which

direction incoming sales orders are to consume planned
independent requirements on the time axis.
In backward consumption (consumption mode 1), the sales
order consumes planned independent requirements that lie
before the customer requirement.
In forward consumption (consumption mode 3), the sales
order consumes planned independent requirements that lie
after the customer requirement.
You can combine backward and forward consumption
provided that you take the consumption periods into account
(consumption mode 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
(note: if you do not maintain mode 1 and the backward
consumption interval, this means that only the requirements
on the current day can be consumed).

Planning w/o Final Assembly (50): Plnd Ind.Reqmts

 As make-to-order production, planning without final
assembly (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.
The material is produced up to the production level below
final assembly. That is, the assemblies and components are
stocked in the warehouse until the sales order is received.
Final assembly is only triggered upon receipt of the sales
order. It makes sense to use this strategy if a large part of the
value added process occurs at final assembly.
Planning which is independent of the sales order is
organized using planned independent requirements. These
planned independent requirements are created for the
finished product. In the MRP run, the system first creates
planned orders for the finished product to cover these
requirements. These planned orders cannot be converted into
production orders (order type VP). When sales orders are
entered and MRP is next run, the system creates planned
orders to offset the sales orders; these planned orders can be
converted to production orders or purchase requisitions.
Also in the MRP run, the planned orders of type VP are
adjusted to offset the remaining, unconsumed planned
independent requirements.
Using the strategy, “planning without final assembly”, you
can reduce delivery times since production and procurement
should have already been triggered for the lower production
levels before the sales order is received.

Planning w/o Final Assembly: Sales Order:

Final assembly is only triggered upon receipt of the sales

order. The sales order appears in an individual customer
planning segment in the current stock/requirements list
where it is planned separately. In the next MRP run, the
system creates a planned order for the newly created sales
order. This planned order can be converted into a production
order. This then allows final assembly. In the planning
 segment, the planned order quantity of the “VP” planned
order is reduced corresponding to 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
(strategy 52), although should you choose this procedure,
you have to work with the lot-sizing procedure “lot-for-lot
order quantity”. You also need to make sure that neither
rounding values/rounding profiles nor minimum or
maximum lot sizes are maintained. Otherwise, the
assignment logic is not compatible with an availability check
which could lead to excess planning or incorrect results in
the availability check.
You can only carry out the availability check for planned
independent requirements. That is, the check of planned
independent requirements at finished product level.
Quantities for Final Assembly :

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 remains in the net
requirements segment. As soon as the product is planned again in
the next MRP 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 same time, the system
reduces the existing planned order of type VP from 100 pieces to
60 pieces.

Planning w/o Final Assembly: Master Data:

If you want to use the “Planning without final assembly”

strategy for the finished product, you must make the
following settings in the material master record (“MRP”
view)
 Strategy group 50 (“Planning without final assembly”) for
the finished product.
Indiv. / Collective indicator = 2 (collective requirements
only) for the assembly, which is to be procured and stored
(supplied for storage) before the sales order is received.

Stocking Level:

If a large part of the value added process occurs at final

assembly it makes sense to use strategy 50 (“Planning
without final assembly”). Here, final assembly is not
triggered until a sales order has been received.

Flexible Determination of Stocking Level :

The stocking level is the level in the product structure up to

which the material is produced to stock. You can shift the
stocking level for certain materials: If, for example, you
should set the indiv. / Collective indicator to “1” (individual
requirements only) or enter “blank” (individual and
collective requirements) for the material “shaft” in the
material master record (MRP view), then this material will
not be produced until a sales order exists for it or the pump;
it will not be produced to stock in advance. Only the
components for the material “spiral casing” are procured and
placed in stock before the sales order is received. For this
example, therefore, you must set the indiv. / Collective
indicator to “2” (collective requirements only) for both the
assembly “spiral casing” and for the components of the
shaft. However, you only have to enter the strategy group for
the pump.
If you do not wish to create VP planned orders in all BOMs
of a particular material, you can assign the “No VP planned
orders” explosion control indicator in the “Basic data” for
the BOM item. You define this indicator in the work step
“Defining Explosion Control” in Customizing for BOMs.

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