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Production and Planning
Production Planning Introduction
Production Planning Tcodes
Production Planning Sales and Operations
Production Planning Tcodes Part 3
Production Planning Table
Production Planning Master Data Tables
Production Planning Production Operation
Production Planning MRP
Production Planning MRP vs MPS
Production Planning Processing time
Production Planning MRP Group
Production Planning Storage Loccation
Production Planning Common Planning
Production Planning Strategy Selection
Production Planning Batch Characteristics
Production Planning Functions of Production
Production Planning Discrete Manufacturing
Production Planning Scheduling
Production Planning Finite Scheduling
Production Planning Rescheduling Date
Production Planning Schedule Lines
Production Planning Backflusing
Production Planning Split in Routing
Production Planning Checking Costs
Production Planning MRP Table
Production Planning Quantity Change
Production Planning Production Confirmation
Production Planning Customized Work Center
Production Planning BOM Component
Production Planning BOM Not Exploded
Production Planning Controlling Data
Production Planning Phantom Item
Production Planning Attachment Of Drawings
Production Planning Goods Movement
Production Planning Stock in Transit
Production Planning Restricted Good Receipt
Production Planning Message / System Status
Production Planning Steps for Subcontracting
Production Planning Steps for Subcontracting 2
Production Planning Explain System
Production Planning Planned Order
Production Planning Delete New Planned Orders
Production Planning Planned Order Conversion

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PP - The Common Planning Strategy used

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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 

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 ----+
   ^                                                                                                               |
   |                                                                                                                | 

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.

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Keywords: PP - The Common Planning Strategy used, SAP Production Planning, SAP Production Planning, SAP Production Planning tutorial, SAP Production Planning tutorial pdf, history of SAP Production Planning, learn SAP Production Planning

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