Sub-Con with SNP

[Former Member]

Hi Experts,

Could any one explain SNP & PP modeling in detail for sub-con scenario where the client wants to confirm the all activites performed by sub-con vendor at all resources.

Thanks,

Naveen

[Former Member]

Thanks

[Former Member]

Not sure how that will work with subcon. If you create the subcon as a plant, then you can convert the snp planned orders into ppds planned orders which can then be converted into production orders which allows confirmations.

But then R/3 will not recognize them as a subcon. The orders will simply the same as inhouse production.

You could set up external processing to pay the vendor, but again, it won't be the same as subcon.

But with your goal of managing the production at the subcon, you really don't have any option.

Ken

[Former Member]

Hi Naveen,

The subcontracting location needs to be treated and maintained as a normal location with

subcontracting parameters embedded to it.

The material master needs to have inhouse production maintained alongwith bom//routing.

The distribution locations needs to be connected with quota/transportation lane so that

as and when incoming demand comes, it checks the lane and produces purchase

requisitions to the plant. Based on the purchase requisitions, during SNP run, it

generates SNP planned orders which can be converted to planned orders and inturn

to production orders with the available capacity.

Please try this and let me know if you face any issues

Regards

R. Senthil Mareeswaran.

[Former Member]

Hi Naveen,

You model Sub-con scenario with SNP/PP as follows:-

1) Create sub-contractor as a separate plant or location in R/3

2) Maintain all relevant products material master data in R/3

3) Maintain the bom, routing, receipe etc., wherever required

4) Create separate resources for sub contractor and assign it to the items

5) Keep sub contractor capacity as finite or infinite depending upon your

business scenario. But ideally keeping infinite is advisable assuming

subcontractor is made to cater as per overloading cases

6) Transfer all data maintained in R/3 to APO via CIF

7) Maintain both bucket resources for SNP and time continuous resources

for PPDS for sub-con

😎 During capacity levelling, the SNP & PPDs orders will needs to be

levelled for other resources than sub-con.

9) Followed by step 9, the sub-con resources will be levelled so that

the SNP & PPDS orders will get aligned accordingly

Let me know if you have any issues

Regards

R. Senthil Mareeswaran.

[Former Member]

Thanks Senthil & Kishore.

If I ran SNP/MRP with your proposed model then I will get sub-con Purchase Order not Production Order but client wants to confirm the activities performed by sub-con vendor for which we need Production Order

Could you please through some light on this

Thanks,

Naveen

[Former Member]

Hi,

For Subcontracting you have maintain special procurement key in marerial master.

Create production version (BOM, routing also), create sub-con inforecard and maintain that production version in inforecard version feild.

Transfer material to apo. Maintain product-vendor location in APO. Transfer Inforecord to APO.

Transfer PPM selacting Sub-con indicator.

Maintain MRP relevent settings as usual. Maintain Routing controle key as per the businesss.

I hope this helps.

Regards,

Kishore Reddy.