PIR's and batch management issue, can this be solved in APO ?

[Former Member]

Hi All,

I've an issue. I honestly dont know where I can get a solution for that and thats why i will post it in mm and also pp forum.

Here is my issue.

All materials are batch managed. Each and every customer can get only certain batches and not all batches meet the requirement of a customer. Lets say I have 3 plants (plant 1, plant 2 and plant 3) and I have 3 customers ( cust1, cust2 and cust3). Lets say I get a demand for material and I create PIR's in plant 1. when I run MRP, it will generate planned orders. I convert that into purchase req and then into STO for plant 2. when plant 2 doesn't have the raw material to process into semi finished, I will create and sto from plant 2 to plant 3 to get the raw material. The reason we create sto to plant 2 initially is because it has to process something before it sends it to plant 1. so the link is from customer 1 --> plant 1 (finished goods) -- > plant 2 (semi finished) --> plant 3 (raw material).

Right from raw material it is specific to a customer. i.e. not all raw material batches from plant 3 will be accepted by customer 1.

so when the demand flows from customer 1 to plant 2, is there anywhere that I can keep track of for which customer that order is going and select raw materials based on the end customer ?

Can this be solved in APO ?

[Former Member · Accepted solution]

Hi sapcrs,

In SNP, you will be defining all your locations, products, resources, deployment between two locations, transportation lanes defined between locations, procurement, production and distribution requirements. You also need a cube which uses planning area/book details of forecast received from other external

sources.

In PPDS, you will be planning pegging, batch specific planning, source of supply planning, raw material procurement planning, production planning etc.,

Your existing PP/PI in ECC will help for execution level of all orders.

Regards

R. Senthil Mareeswaran.

[Former Member · Accepted solution]

thank you very much, I will do research on that.

[Former Member · Accepted solution]

Senthil,

One more quick question which just occured to me.

Not only raw materials are batch managed, every material is batch managed.

when we run MRP at plant 1 for PIR's it needs to generate customer specific planned order which will be converted into STO. once again when we don't have enough semifinished inventory at plant 2 when we run MRP again for the semifinished STO that we got from Plant 1, it will generate planned orders for raw material. this raw material planned order is converted into sto again for plant 3. since everything is batch managed at client level, do we need to implement CDP to plan ?

I'm not able to understand if we can still have a link at plant 2 through pegging. coz even in raw material STO for plant 3 we need to maintain somewhere that it is for specific to a customer.

please let me know your thoughts

[Former Member · Accepted solution]

Can you please let me know on my last question ?

[Former Member]

Hi sapcrs,

1) In general, you don't have to implement a badi. Once if a badi is identified for implementation, provide that to an abapper, they will take care of implementing it.

2) Some mass programmes or custom programmes or some global settings to be done for changing material types at a mass level

3) Class type 023 is perfectly ok to startwith batch management.

Regards

R. Senthil Mareeswaran.

[Former Member]

Thank you very much Senthil.

I will start a new thread if I have more questions. I'm sure I will as I go along.

[Former Member]

Hi sapcrs,

If you are selecting batch selection based on characteristics, then you can very well use CDP in your system.

CDP you can use it both from FG to RM level for pegging.

I am not clear with your second question whether you need general idea on BADI or specifically wanted to know details of badi SAPAPO/CULLRTOEXPL, please clarify.

Regards

R. Senthil Mareeswaran.

[Former Member]

Yes we want to do a batch selection based on the requirement. Thank you very much for clarifying that.

I wanted to know how I can implement a particular BADi if at all I want to apply that.

Also all my materials in ECC are ROH, HALB and FERT, if I want to use CDP, do i have to change the material types to KMAT ?

That would be a huge task for us coz we have been live for a long time and we have ~ 100,000 materials.

We have classified every material with batch 023 in ECC is that fine ?

thanks,

[Former Member]

Hi sapcrs,

As I already mentioned in my previous reply, sales orders either needs to be entered manually in system with suitable batch as per requirement or to use mass upload programs.

Other way around is as you have mentioned, you can create some custom reports to match raw material/semifinished material went to which finished goods and customer.

You can use any of the ways as per your preference and as per your scenario.

Regards

R. Senthil Mareeswaran.

[Former Member]

Hey Senthil,

If I can do batch selection based on characteristics in CDP, I can go for CDP right ?

I dont know in CDP if I can go multilevel i.e from finished to semifinished and then from semifinished to raw.

I'm doing research and found out that this BADi might be useful for me /SAPAPO/CULLRTOEXPL.

Also I have no idea how to use a BADi, if you can throw some light on that that would be very helpful.

thanks again for all your time !

[Former Member]

Hi sapcrs,

Your requirement is too complex and can be worked out in this manner.

1) Enter Forecast as PIRs at the FG level at Plant 1 so that it will throw dependent requirements at Plant 2 for SFG and at Plant 3 for RM during planning run.

2) As per your requirement, all items are batch managed ie FG, SFG, RM

3) Initially RM will be made available at plant 3 in different batches as stocks

4) During procurement of RM, sales orders with the required batches has to be made available at plant 3 and so whenever it is made, the sales order pegs the specific batch.

5) Once this pegging is done, this RM at plant 3 will be taken to plant 2 for mfg SFG via lane maintained. During this process, sales order has to be made available at plant 2 with required batches so that once SFG is made at plant 2, it will get pegged to its corresponding patch

6) Similar way, once SFG is done at plant 2, it will be taken to plant 3 for further processing. During this process, sales order has to be made available at plant 1 with required batches so that once FG is made at plant 1, it will get pegged to its corresponding patch.

7) Once FG with the required batch is made, customer sales order with specific batch to be made available for distribution to customer. Once the delivery is made, the despatched qty will get reduced from the original forecast qty.

Here sales order flow has to be maintained properly throughout the network.(you can use mass programs).

Regards

R. Senthil Mareeswaran.

[Former Member]

How can we make the sales order available at different levels i.e. plant 2 and plant 3 ?

or if the system cannot peg the requirements automatically, can I do it manually by specifying the batch by looking in ECC as per our requirement and keep the pegging relationships and generate some reports later as to which batch of raw material/semifinished material went to which finished goods and customer?

sometimes what happens is semifinished good making plant (plant 2) might already have the material and they can ship it directly without procuring anything.

[Former Member]

Hi sapcrs,

It is not realistic and logical to put the sales order for a specific batch in advance when the FG is not ready.

What you can do is that you can forecast your items through PIRs initially and the forecast will be available in SNP for reference and for forecast consumption with sales order.

As and when you get firm customer demands, sales order will be entered in R/3 system with details of batch information and accordingly it triggers production & procurement information to other supply modules.

Entering sales order in advance with specific batch cannot be possible.

Regards

R. Senthil Mareeswaran.

[Former Member]

Senthil,

We have to segregate the inventory based on the customer right from raw materials.

lets say we have roh which have 2 batches at plant 3. batch 1 can go to customer 1 and 2 and batch 2 can go only to customer 2. semifinished processing is done in plant 2. when customer 2 orders something at plant 1, we have to pick roh with batch 2 for semifinished processing for plant 2. then plant 2 converts roh into semifinished and sends it to plant 1 to convert it to finished. we manufacture everything based on the forecast of each and every customer which makes it a MTS scenario. just an fyi, our customers are our dealers.

Is this possible with your suggestion ?

[Former Member]

Hi sapcrs,

The other way round as you require also will work.

But not as PIRs but as Sales orders.

The customer orders will be mapped in system as sales orders. The sales order will contain the information of required batch. It cannot be forecasted earlier. It depends upon the stock availability of suitable batches.

ie Pegging based on available batch stock vs sales order requirement.

Hope it is clear now

Regards,

R. Senthil Mareeswaran.

[Former Member]

Ours is MTS scenario.

how can I create sales orders for a specific batch before ?

Is there any setting that I have to make ?

[Former Member]

Hi sapcrs,

For reporting functionality, you can use two options.

1) First option is the option provided by SAP standards by using transaction /SAPAPO/PEG1 - Pegging Overview.

Either you can use this transaction directly to view your pegging scenario or you can create your own custom report with this transaction as base model.

2) Second option is to use BW for data extraction and report construction.

Regards

R. Senthil Mareeswaran.

[Former Member]

Senthil,

I shouldn't have closed the thread. sorry about that.

As I read I'm getting so many questions.

What if my scenario needs to work other way around ?

Instead of tracking raw material, if I want to enter demand at PIR level for a specific batch (i.e. for a particular customer) without CDP, do we have an option to enter that ?

If so, can that customer id be linked to the raw material level through pegging ?

sorry about all my questions, I really appreciate your time !

thanks,

[Former Member]

Hi sapcrs,

CDP may not be relevant to your scenario.

CDP is applicable for scenarios like

A particular feature of these industry production processes is that many end products are produced from a single output product. The characteristics required by the preliminary product are derived either from the characteristics that a customer determines for a particular product in the order, or from the planned process steps and considerations regarding the optimal use of resources and materials.

In CDP, the characteristics of the end product determine the characteristics of the preliminary products. As the configuration of preliminary products is not known at the time of sales order acceptance, the characteristics are determined by the selected production process and propagated from the end product. Similar products with the same basic characteristics can be combined, and the particular features of these products are described with characteristics. These types of products are called configurable products.

Hope it is clear now.

Please confirm

Regards

R. Senthil Mareeswaran.

[Former Member]

Thanks,

For the reporting functionality like if we want to find out which batches went to which customer and where all it went processing, how can we do that ?

is that through BW ?

[Former Member]

Hi sapcrs,

Your planning scenario work better if all materials in your planning system are batch managed. Pegging can be easily achieved in this scenario and will be traceable throughout the supply chain network.

In Pegging, there are two strategies, one is fixed pegging and another is dynamic pegging. In fixed pegging, there is limitation in pegging between receipts and requirements and are limited. In Dynamic pegging, the pegging is distributed randomly between receipts and requirements. You can select fixed pegging to meet your scenario.

Regards

R. Senthil Mareeswaran.

[Former Member]

Thanks a lot for your input

Do I need CDP ?

[Former Member]

Hi sapcrs,

You need to implement only SNP & PPDS modules to achieve your scenario. DP is not required as you have forecast coming from external system. You can have BW for data extraction & reporting purposes.

The following is the link which will take you to integrate R/3 with APO for batch management

http://help.sap.com/saphelp_scm70/helpdata/EN/48/646f4be7fb4f93e10000000a42189d/frameset.htm

Please confirm whether all your queries are resolved.

Regards

R. Senthil Mareeswaran.

[Former Member]

why do we need SNP ?

We dont have a reqt to identify any bottleneck resource. All we need is to track between raw material batch and finished good customer/sales order.

By the way we have PP/PI in place right now.

Please let me know

[Former Member]

Hi sapcrs,

Your requirement is meet the solution of configuration of the following scenario.

customer 1 --> plant 1 (finished goods) -- > plant 2 (semi finished) --> plant 3 (raw material).

The conditions are

a) Raw material is batch managed

b) Keep track of order flow

Solution:-

1) Maintain raw material as batch managed in R/3. Suitably class and characterisitics to be developed to send the information to APO as that the RM is batch managed.

2) The Bom of semi-fnished item at plant-2 to be maintained with raw material. The source of supply has to be linked with plant-3. The RM will be externally procured from plant-3 for plant-2 which is batch specific. The Bom item will be send to APO as PPM which contain all bom and routing details.

3) Now once RM is ready at Plant-3, it will be sourced to plant-2 and at plant-2, semi-fnished item will be made with the production orders triggered from bom & routing data at plant-2

4) Now semi-finished item is ready at plant-2. Once it is ready, it has to be sent to plant-1 for mfg FG. This can be achieved by creating lane between plant-1 and plant-2.

5) Through lane, semifinished item reaches plant-1 which is made at plant-2 which contains RM made at plant-3 which is batch specific.

6) Using semifinished item, Finished product can be made at plant-1

7) Now your final requirement is to track all order flow changes. This can be achieved by mechanism in APO called pegging. Using pegging, the order flow can be tracked right from FG to RM.

Regards

R. Senthil Mareeswaran.

[Former Member]

Thanks a lot for your input !

We use MTS and we get the forecast from external system. Our main requirement is to track batch managed raw material level to the finished good level. Which batch went to which finished good. Also we have to plan based on batch characteristics coz batches are specific to customer.

I dont have prior exp with that. Which all modules do I have to implement for this purpose.

If you can share some documentation that would really help me.

Thanks again Senthil !