BOM PS transfer

[Former Member]

Hello PS Gurus,

Need some direction in PS in relevant to production of finished material in PS and which option is the best consume the compo

I have header material 1000 which has structure like this.

Header 1	Header 2	Header 3	Header 4
Mat No	Mat no	Reference point
1000
	2000		PM1
		2001
		2002
		2003
	3000		PM2
		3001
		3003
So the objective is to produce material 1000 which consist of sub assemblies 2000, 3000. I have assigned the reference points to them as PM1 and PM2. Option 1: I assign the header material 1000 to one activity and run MRP in MD51. This will create planned order at various levels like for 1000, 2000 and 3000. When I will convert planned order of 1000 to production order, the routing of 1000 already has component 2000 and 3000 assigned to them hence I can consume the subassemblies. When I confirm the production order for 1000, it will consume the sub assemblies which lets say were also produced through production order assigned to the same project. At the end, finished product will be in project stock which I can deliver. Option 2: I use the BOM PS interface and transfer the components to activities. I will run MRP for project and lets say that at the end all the components are now available. Then how do I produce the finished material? Do I need to have an activity for material 1000 with -ve quantity which at the end when I confirm will produce header material? Is this the correct way? Option 3: I have the components assigned in standard network already (bom header material 1000 to be included too? ) and I need not use BOM PS interface (CN33). So when I create a project with operative network in it, it already has all the components. Option 4: I have header material 1000 assigned to an activity and I explode the bom in CJ20N itself. As a result, the BOM components come up in activity but header material’s item category changes to T. So when is this scenario used and how do I deliver the finished material. By confirming an activity with –ve qty? So which option is the best and in which scenario they are to be used up to produce the finished material. Many thanks in advance. regards Sunny

[Former Member · Accepted solution]

Hello Sunny,

Option 1 : This option will not be able to reflect costs at sub assembly level in project.Everything will be done at production order level.

Option 2 : This is ideal. Only the first level sub assemblies need to be tranferred and preferrably to activities in different WBS elements so that the sub assembly level cost can be effectively tracked.As you mentioned, the negative quantity of sub assembly should be built in ( blackflushing on activity confirmation) and the same material with positive quantity has to be added so that it can be delivered.

Option 3: If the BOM structure does not change from project to project , then this also an option.Here as well, if the materials belong to activities of different WBS elements then the better.We can save having a BOM , and reference parameters in BOM and project--but there will no flexibility with BOm structure and hence less preferred.Here as well, the same process for building and delivering the final assembly.

Option 4:Better option than option 1.(All the cost goes to single WBS element).  Also if we want all the requirements to be assigned to projects, then we can have a multilevel explosion.Else, we can do single level explosion to have only the sub assemblies in project.The process for building and delivering the final assembly remains same as in option 2 & 3.

Regards,

Jindow Joseph.

[Former Member · Accepted solution]

Thanks a lot Jindow !!!!

[Former Member]

Here are some questions to ask:

1.  Is the production of material 1000 the same every time?  If you can define how to produce a material 1000 with BOMs and routings and it is not changed for an individual customer then you do not need PS at all.  Option 1 is your simpliest approach for repeatable production.  You can have the MRP demand for material 1000 come from a Sales Order and skip PS all together.

2.  Otherwise, in what ways are the subassemblies or final part customized for the customers?

3.  Is the final BOM complete when the customer places the order or do you have to do long lead material ordering before the design is done?

4.  Do you have subassembly scheduling requirements that PP/MRP cannot meet? 

5.  What is your basic requirement for using PS?

PS allows flexibility while PP allows repeatability.

[Former Member]

Thanks Ken !!!