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Demand driven Planning with MTOProduction(Stg:50)

Requirement:In massive coach manufacturing industry there are different type of finished products to be manufactured

where BOM of each finished product consists of more than 2000 components which includes different types of

assemblies and raw materials.

 

It is essential to plan the demand of finished material for year and requirement of raw material to meet the

demand. Apart from this each finished product demand quantity will vary from customer to customer which

requires proper tracking and cost accounting of all the assemblies manufactured specific to the customer.

Solution:

Maintained strategy 50(Planning w/o Final Assembly) for the finished product with PIR and Manufacturing

against the sales order is the solution for this requirement.

 

About strategy 50:

Strategy 50 is probably one of the most widely used strategies in a make-to-order environment. Like all make

to order startegies, we can use stategy 50 if production is unique for each and every customer and raw material

planning to be based on the finsihed product demand.

 

1. Production quantities are planned effectively by using information from the Sales Information System,

SOP, or other planning tools to

plan production quantities.

2. Prrocurement of the components is planned by means of PIR entered at the finished product level. Thesystem creates special planned orders at the finished product level for these PIR's. These orders areonly relevant for production once a sales order for the finished product exists.

3. PIR's that are planned using this particular strategy are listed in a separate segment in the MRP list.The planned orders are created with the order type VP and are unconvertible. The sales orders for thisstrategy are entered as individual customer requirements and are maintained in a separate segment in

the planning run4. Production Process(Final assembly/assemblies) is triggered once a sales order has been entered

5. The incoming sales order consumes the planned independent requirements, and this in turn reduces theunconvertible planned order quantity.

6. System creates a new convertible planned order for the sales order quantity.7. Planned independent requirement of the finished goods quantities that are left unconsumed increase the

warehouse stock of the components and cause procurement to be decreased.

 

Prerequisites:

Master date to be maintained are listed below

1. Startegy Group 50 for finished material2. Consumption parameters (Consumption mode, Bwd consumption, Fwd consumption ) so that the

independent requirements can be found.3. Item category group (for example, NORM) on the Sales Organization view.

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Demand driven Planning with MTO Production(Stg:50)

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4. MRP Type PD in MRP 1 view

5. Individual/coll.indicator 2 in MRP 4 View

Process Flow:

1. Maintain Planned independent requirements2. Run MRP for generating Purchase Requsitions for Raw materials against the PIR

3. Creation of Sales Order which intern reduces the PIR quantity4. Sales order based MRP, Production Planning and Execution.

5. Delivery of sales order consumes the PIR quantity.

 

Conclution:

With strategy 50 we can maintain PIR and at the same time production can be driven as order based

manufacturing. Required raw material planning will done based on the FERT PIR demand.

 

Refer the attachment for detail steps.