Project manufacturing - Question about process

[Former Member]

Hi All,

I am trying to represent the following scenario in a project:

Finished Product (FP)

---RM1 (raw material 1)

---RM2

---semi-finished assembly 1 (SF)

-

---

RM3

-

---

RM4

We have to assemble FP in the project. If I assign only FP as a material component in the project and run MRP, the system successfully generates planned orders for SF, RM1, RM2, etc.... I can then convert planned orders into purchase requisitions or production orders and do all consumption postings.

But, I want to represent the assembly process in the project, and I think the below assignment should be possible.

WBS

---Network

-

---

Activity 1

-

---

RM3

-

---

RM4

-

---

Activity 2

-

---

SF1 (-1 - negative quantity)

-

---

Activity 3

-

---

RM1

-

---

RM2

Activity 4

-

---

FP (-1 - negative quantity)

The negative quantity should mean that the specified component (SF1 or FP) is assembled in that network activity. However, when I have a negative quantity in the component, MRP is not generating the planned order for that material. Also, it's generating redundant planned orders for RM1, RM2, etc... - once for the reservation for that component and once by exploding the reservation for SF1 or FP. Should I have the reservation / purchase requisition indicator for the individual components set as Never? In that case, do I just post consumption to the respective network activities when the respective RM* is received to stock? Any input you could provide would be greatly appreciated.

[former_member203108 · Accepted solution]

Dear, If you are using PS to produce FG then dont run MRP for Project.MRP will create planned order, but you are not using PP to produce material, So dont run MRP for project. In this case your network order will be like production order and activities will be like operations.

[Former Member · Accepted solution]

Thanks a lot for the responses so far Mahendra and Ahmed. If I don't use MRP, how do I procure materials? I think this approach will only work if it's a subcontract or third-party manufacturing. And I am using PP to produce FG.

Now, coming to Mahendra's response, I think that's the solution I need. But, one question is don't I need a planned order / production order to produe FG by consuming all the raw materials and subassemlies? In this case, since there is no production order for FG, where are all the components consumed? Do I consume RM1, RM2 and SF1 to the network that produces FG and then deliver FG?

[Former Member · Accepted solution]

Yes, anwer lies in your question. You are going to consume RM1,RM2 and SF1(movement 281) to network and going to produce FG(movement 581) from the same. Here network is going to act like production order.

Regards,

Mahendra

[former_member203108 · Accepted solution]

Murali, here you say that you use PP to produce to FG

I am using PP to produce FG.

But here you say that you dont use PP but network to produce FG

there is no production order for FG

 network that produces FG

Now, which is correct???

[Former Member · Accepted solution]

Hello Ahmed,

My ultimate goal is to produce FG, right? Now, I am using PP as well. I am trying to figure out what level of BOM should be represented in the project using component assignments also using MRP to create the corresponding procurement parameters. I was asking about the production order for FG, because Mahendra's solution doesn't create a production order for the FG due to the negative quantity in the project. I think he answered that part of the question saying that for the FG, the network acts as the production order and delivers FG to stock. Am I correct? Please let me know.

My explanation may be a little confusing, but please let me know if you need any further clarifications to solve the problem .

[Former Member · Accepted solution]

Your understanding about network being acting like production order is correct. But you still need to use PP-Production order as you also need to produce SF1. MRP will generate planned order for SF1 which need to be converted in production order and process it. The output of this production order will be SF1 which will be consumed in network activity subsequently.

So, you are require to use network as production order only for conversion of SF1 to FG. Further levels down, you still need to have production order for SF1.

Regards,

Mahendra

[fortian]

Did you finally solved this scenario?

In which step the component with negative quantity appears as an available quantity at the storage location?

[Former Member]

The case you have mentioned can be handled using assembly processing. Attach FG as negative qty and its 1st level BOM components SF1,RM1 and RM2 as positive. When you run MRP, system will generate requirement for RM1 and RM2. While for SF1 it will explode the BOM and will generate the requirement for RM3 and RM4 and also for SF1. So, SF1 you need to either produce or procure(subcontract) and bring in stock and consume RM3 and RM4. Similarly procure or produce RM1 and RM2. After all the components of FG are in stock, then you do the goods issue to network. This will make sure you are consuming SF1,RM1 and RM2 and producing FG.

Hope this works for you.

Regards,

Mahenra