Grouping material requirements of Bottom level WBS

[Former Member]

We are stucked on material requirement planning

We are assigning the various BOM to level 3 WBS and taking MRP on it thru MD51.

The final product which includes all BOMs at bottom level is assigned to level 2 WBS.But while running MRP on level 2 WBS system regenerates the requirements which already part of bottom level BOM. I want to avoid it.

How shuld I achieve this ?

Rgds

[Former Member]

hai shri,

Grouping WBSE will not solve ur issue. System will behave as i told. Requirements are considered WBS specific. if you assign same material under diff WBSEs and have grouping at level 1 ...sytem will create two requirements. It will understand as if it is required for two WBSEs.

Grouping requirements is for acct assignment and stock management.

If you select 1 i.e. group all reuirements for project at top level.....then for all PRs, Planned Orders, acct assigment will be grouping WBSE and when you do GR, it will be posted to grouping WBSE stock.( assume ur using project stock).

So grouping is for aact assignment and Stock management.

If u follow Sol2, for cost report try below.

1) Create value categories. T-code OPI1. Create them as Statistical Key Figure (SKF) totals value.

2) Assign manufacturing and Procurement cst element grps to two separate value categories.

3) Check report S_alr_87013548. In the entry screen ...at bottom in selection groups, enter ur SKFs.

Advise -

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u work in consultation with CO consultant.

Try this and post ur findings.

Thanks

Saikishore Ganga.

[Former Member]

Hi,

Requirements are WBS specific. When you are assiging lower level sub assemblies at level 3 in ur project, system is exploding them in MRP run once WBS released and creating requirements against that WBSE. When u are assigning parent BOM, which is calling lower level sub assemblies, it is doing multilevel explosion of the paren BOM and requirements for lower sub assemblies are re created against level 2 WBSE.

System is understanding them as required for two different WBSEs and so it is generating both requirements, which makes sense.

To address your issue, please try following

Solution 1 :

1) Customize a BOM status say 'X' make it not relevant for MRP. T-code OS23.

2) Fix a suffix to all parent BOMs. Say should start with 'P'.

3) For all BOMs starting with 'P' make a rule status should be 'X'.

4) Assign Parent BOM at level 2 and sub assly at level 3 and run MRP @ Proj def level.

5) Check for any duplications.

When you do this, verify whether Planned order is created for Parent item or not ? I think u want it so that you issue lower level sub asslys to that and than complete assly.

Verify total cost. I think it will get doubled. To avoid it you can untick cost relavancy indicator for all line items in 'P' BOM, than only routing cost of 'P' BOM will be apportioned.

Solution 2 :

1) In your scenario for final assly it is a pre-requisite that all lower level sub asslys be ready. That means even if you assign "P' BOM before that it is of no use, I mean we can not complete final assly unless we manufacture all lower level BOMs.

2) Considering the logic of point 1. Try following

i) Manufacture all Lower level sub asslys.

ii) Stock transfer them to Level 2 WBS stock.

iii) Assign 'P' BOM to Level 2 WBS BOM.

iv) Then run MRP. MRP will consider the stock in WBS and it will not further xplode.

Ensure that ii & iii not inter changed. To have control we can put it thru program using BAPIs. Try this manually , if it works then we can think of program.

Solution 3

You can xplore assembly process through network. But for that all BOM items should be ready. Here u say it builds up gradually so I doubt to what extent it will be useful here. However, u can xplore.

Post ur observations.

Thanks

Saikishore Ganga.

[Former Member]

Thnks for helpfule Soln,

Soln two if I ctrate Sub assy at bottom level and then transfer it to actual cost will also get flown to Header WBS which shuld not happen due to which I cant get cost bifurcation assywise.

Sol 1 lookes appropriate but here If I make BOM usage as Non relevant to MRP How culd I generate planned order for Header Material? Is it manual ?

Rgds

[Former Member]

Hi,

Your requirement of cost posting is not clear can u elaborate. ?

And advise you test as suggested , if it works , cost report I think can be handled by any work around.

Suggest you test as is manual first.

Thanks

Saikishore Ganga.

[former_member131788]

Hi Saikishore,

Well the suggested scenario before was tried and results came as expected but to be honest i do not know how one can(transaction or steps) keep track of Costs in PS. I come from a Aerospace and Defence industry background and we run distribution DIS01 on Grouping WBS level which is the process where all the costs are consolidated (both production costs or procurement costs) in a single report or a table under grouping WBS element. But for this Discrete Industries and Mill Product should be active in the system. But yes i will try to get how it works in PS, infomation for you.

The aim of our process is to group all simpilar material under diffrent WBS and create a single replenishment element and avoiding complexity, peg all requirements and get the cost distribution.

Will check for your cost related query.

Thanks and Kind Regards

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Mohan

[former_member131788]

Hi Shrikrishna,

Strictly speaking the way MD51 is creating demand is correct, its working right. Now coming to your scenario, lets take an example which can assist understand your scenario.

Step 1:

I create following materials

1 FERT material

1 HALB material

1 RAW material

Step 2:

I create BOM HALB --> RAW

FERT --> HALB

Step 3:

Create routing and assign work centre and activities

Step 4:

FERT is your final material.

Step 5:

Lets create a project "Projectest" with following structure or requirements

Project test

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> WBS1 <Set the grouping indicator in WBS basic tab to one 1 Grouping WBS element for all materials>

--> IWBS < Individual WBS >

--> Network

--> Cost element

--> FERT < Your final assembly >

5 EA

Step 6:

Run MD51 on Project with 1,3,3,1

You will get replenishments created as below

RAW --> 1 PR --> for procurement of 5 EA

HALB --> 1 PO --> for production of 5 EA

FERT --> 1 PO --> for Production of 5 EA

Only one PR,PO's are created since we have set the grouping indicator in Level one WBS there by reduce the number of repleninshment elements created.

Step 7:

Get the RAW into stock (GR 101 Q --> Mvt type)

Step 8:

Create the Production order with ref to Planned order for HALB

Issue the stock of RAW to HALB( 261 Q)

Confirm the production order

Step 9:

Create the Production order with ref to Planned order for FERT

Issue the stock of HALB to FERT (261 Q)

Confirm the production order

By this you will complete the entire cycle.

In you scenario there is lot of duplications that can be avoided if you try implementing this scenario.

I hope this example will help fix your issue.

<<Rewad Poins if Usefull>>

Thanks and Kind Regards

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Mohan

Edited by: Mohan Kumar K on Sep 16, 2008 9:03 AM

[Former Member]

Hi ,

Thnks for the descriptive answer it is certainly helpful to me an added new to my views.

I tested as suggested by u but still the system shows the repeated actions.System would not able to find material which is at lower level WBS.

In my scenario Initial BOM of the FERT material didn't get created at initial stage.It get created with all BOMs at bottom levels that to as and when required.

I want if I attached FERT at level 2 WBS and Semifinished material at Level 3 WBS while running the MRP on FERT system shuld consider all the bottom material as Project stock and shuld not create any request/planned order as this duplications adds Order cost plan as well as lots of confusion during MRP run.

Rgds

[former_member131788]

Hi Shrikrishna,

Can you please give more information as in your masterdata (project structure, materials, BOMS, routing and so on) so that i can try reproducing your scenario.

Thanks and Kind Regards

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Mohan

[Former Member]

Hi ,

My Project Structure is as follows

E-12345678 --- Project headr

E-12345678 --- Level 1 WBS

E-12345678.01 --- Level 2 WBS Preporduction Expense

E-12345678.02 --- Level 2 WBS Porduction Of Special purpose m/c

Mterial BOM for SPM ( Mountg Bed Assy + Cross travel assy )

E-12345678.02.01 --- Level 3 WBS Porduction Of M/c Mounting Bed Assy.

Mterial BOM for Mounting Bed

E-12345678.02.02 --- Level 3 WBS Porduction Of Cross travel Assy

Mterial BOM for Transverse Assy.

MRP is run in MD51 firstly on E-12345678.02.01 and E-12345678.02.02 project stock is creatd.

MRP run on E-12345678.02 but sustem creates planned order for SPM also for Mountg Bed Assy + Cross travel assy where I want Planned order for SPM and Project sock for Mountg Bed Assy + Cross travel assy.

Routing is maintained for all materials in PP module .Planned orders are executed in PP itself.

Rgds

[former_member131788]

Hi Shrikrishna,

As i told before the way MRP is done correct and even the previous (Saikishore Ganga reply) reply also says that. Here the MRP is exploding BOM in each level meaning BOM under each WBS.

You can also try doing this there by we can avoid duplication and manufacturing(production can be completed) at one shot but i am do not know whether your requirement permits doing that.

Lets take your own example and lets break it down

E-12345678 --- Project headr

E-12345678 --- Level 1 WBS -

---

> Grouping WBS indicator 1

E-12345678.01 --- Level 2 WBS Preporduction Expense

E-12345678.02 --- Level 2 WBS Porduction Of Special purpose m/c

Mterial BOM for SPM ( Mountg Bed Assy + Cross travel assy ) --> Final assembly (lets say FERT 3 EA)

E-12345678.02.01 --- Level 3 WBS Porduction Of M/c Mounting Bed Assy.

Mterial BOM for Mounting Bed --> lets say HALB1 of 1 EA

E-12345678.02.02 --- Level 3 WBS Porduction Of Cross travel Assy

Mterial BOM for Transverse Assy. --> Lets say HALB2 of 1 EA

Now we have to run run MRP on project level E-12345678 and not on WBS element level and we should get following replnishments a/c assigned to Grouping WBS in MD51

Material BOM for SPM 3 EA --> 1 planned order for 3 EA

Mterial BOM for Mounting Bed --> 1 Planned order for 4 EA (3 for production FERT and 1 for HALB1)

Mterial BOM for Transverse Assy. --> 1 Planned order for 4 EA (3 for production FERT and 1 for HALB1)

Produce or Procure your lower level(HALB or ROH) assembly and issue it to the higher level for the production of final assmbly.

note: if there are any more materials like RAW under Mterial BOM for Mounting Bed and Mterial BOM for Transverse Assy, even they would be grouped and a single replenishment elemement PR for so many quantity would be created.

Please try this and let me know about your observation.

Thanks and Kind Regards

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Mohan

Edited by: Mohan Kumar K on Sep 17, 2008 12:02 PM

[Former Member]

Hi ,

Thnks for the help but I am looking for the following situation

E-12345678 --- Project headr

E-12345678 --- Level 1 WBS -

---

> Grouping WBS indicator 1

E-12345678.01 --- Level 2 WBS Preporduction Expense

E-12345678.02 --- Level 2 WBS Porduction Of Special purpose m/c

Mterial BOM for SPM ( Mountg Bed Assy + Cross travel assy ) --> Final assembly (lets say FERT 1 EA)

E-12345678.02.01 --- Level 3 WBS Porduction Of M/c Mounting Bed Assy.

Mterial BOM for Mounting Bed --> lets say HALB1 of 1 EA

E-12345678.02.02 --- Level 3 WBS Porduction Of Cross travel Assy

Mterial BOM for Transverse Assy. --> Lets say HALB2 of 1 EA

Now we have to run run MRP on project level E-12345678 and not on WBS element level and we should get following replnishments a/c assigned to Grouping WBS in MD51

Material BOM for SPM 3 EA --> 1 planned order for 1 EA

Mterial BOM for Mounting Bed --> 1 Planned order for 1 EA (3 for production FERT and 1 for HALB1)

Mterial BOM for Transverse Assy. --> 1 Planned order for 1 EA (3 for production FERT and 1 for HALB1)

I tried as per ur soln but still not came to final conclusion

Rgds

[former_member131788]

Hi Shrikrishna,

Can you please be little descriptive as in what was your observation after executing my suggested scenario because i couldnt understand by the statement "I couldnt come to a conclusion"?

Thanks and Kind Regards

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Mohan

[Former Member]

Even after grouping the WBS at level One system generates the requirements for every material which is assigned to all Bottom level WBS elements as well as at the Header it Duplicates which I want to avoid.

I thnk this purpose culd not be solved by grouping the WBS or still I culdn't understand the functinality of grouping the WBS.

I was thnking if I group a particular WBS elelements their requirements will be treated as One and wont get repeated at Header.I culdn't find any noticable changes in system behaviour even after grping.Just one that on the Grouping WBS Material proposals cant be generated.Even I run MRP on the Project the requirments are generated at respective WBS level not at Header.

I referred the help file from below link.

http://help.sap.com/saphelp_erp2005vp/helpdata/en/07/ca943a25aa8623e10000000a114084/frameset.htm

Rgds

[virendra_pal]

why are you putting bom in level 3 at all

you should run MRP from level 2

[Former Member]

Hi ,

It is a requirement of the project.Initially my bottom level material gets produced which forms togetther a final assembly which is the final product consists of all material which I assigned at bottom level WBS.

rgds

[virendra_pal]

in that case for the BOM at level 2 put qty zero for the items under BOM at level 3 ???

Alternatively pout the BOM at level 2 twice one with a qty +1, and another with a qty -1 so that no demand is created when you run MD51