Underproducing on process orders for HALBs - PPDS

[Former Member]

HI -

I have the following scenario and would appreciate if somebody can help me out.

I have a FG A which has input components B and C. For making 10 pieces of A, I need 20 pieces of B and 20 pieces of C. I run product heuristic to create a planned order for A for a quantity of 10 and a dependent demand of 20 is generated for both B and C.I run the standard lot heuristic at the component level to generate planned orders of quantity 20 for both B and C.

All the orders are now converted to process orders and released for production. The production of this order of 10 for A can happen over 2(or multiple) days even though B is produced on day 1.

During production, we realize that we can make only 16 pieces of B (instead of 20) due to some problem.

So we make 16 pieces of B on day 1 and the order is closed(TECO). And in effect only 8 pieces of A can be produced on day 2.

So the problem is that since the FG A process order quantity still says 10, When our nightly heuristic job runs(multi-level MRP heuristic), system rightly thinks we are short by qty 4 on B and then creates a new planned order (for 4 if its lot for lot or fixed qty is its fixed-lot) outside of the planning time fence. This is not desirable as it messes up reporting etc and also gives an inaccurate representation.

One option which I see is keep the order for B open ( not do a TECO) till the order for A is closed(TECO'd). This process is very cumbersome and difficult to track.

Another option, changing the order quantity of A ( to 8 in this case) is also a pain as manufacturing folks have to manually calculate the new order qty for A based on what was produced for B.

BAsically, I am looking for a way to stop the system from creating these new planned orders for B.

Would appreciate it if someone can help me figure out the best possible way.

Thanks!

Varun

Edited by: Varun Muni on Sep 10, 2008 10:21 PM

[Former Member]

Hi Varun,

System tries to fulfill whatever demand is there i.e. the orders which are coming on the plant are as per the demand. If you want to restrict the orders it might have an impact on Customer supplies. As you said, the Mfg plant was not able to produce the required quantity, Do explore the possibility of postponing the production of remaining quantity to the next day to avoid impacts on the supplies. I was not able to make out with the present information avalable that how it is effecting the reports?

Anyways, If you want to stop the system from creating any further orders of remaining quantity for Product B. Then you can change its procurement type at the Mfg plant from E to P before the Heuristics Run and change it back to E once it is over. This would be a simpler way of handling it.

The system behaviour in this case will be:

System will not try to plan any further quantity of Product B and will Create a planned order of A to an extent to which the quantity of B is avalable.

Hope this helps...

Regards,

Manjit