Switching from purchased to manufactured

[Former Member]

Dear All,

               We are going to change few products from purchased to manufactured in production environment because of the way we do the business changed.  We are going to do the master data changes including the valuation class, procurement type etc. Also, since this is done is production we are planning to take the inventory out form the plant, run the standard costing and then put the inventory back in the system. What I would like to know is :

1. complete list of master data and any other parameters which needs to be taken care of .

2.Do we need to close all the open orders for that list of material/plant combination before we bring the inventory back into the system.

Thanks

Sai.

[former_member182805]

Please consult your PP consultant since most of the changes are in the PP area.

Also, if Availability check and MRP are on, you will need to ensure that the schedule line category has the availability check field turned on and the transfer of requirements field turned on.

MRP will have to be run for each of the materials. The schedule lines will create a requirement in the stock requirement list (in case of individual requirements). from there, a Production order will be created.

There is very little change in the SD and LE process. Most of the changes are in the MM and PP areas.

[former_member218251]

Ganesh

Please explain question 1: What is your question?

Basically, when you change the procurement type, and run MRP with deletion of all open planning elements, then you are on the procurement planning. Mind that there can be fixed planned orders, these need manual deletion and after that replanning so a purchase requisition is created.

Regarding question 2:

Either complete production, or delete the production orders and create purchase orders.

[Former Member]

Hi Hofman,

                    Let me rephrase the question. When we change the material from purchased to manufactured item in production, what are the things we need to take care of from the process  level.

We are going to make sure that during the 1-2 hr window when we do this change in material master , no new PR/PO/SO are created.

For example, say we already have a planned order in production , which was created before we do the changes to  the material. Will it impact the planned order or purchase req, or PO's?

Do we need to worry about the open sales orders when we do this change. I am assuming that since the open order would have already been assigned a schedule line date against the item, taking out the inventory , changing the procurement type, valuation class , price control ( from V to S) etc shouldn't impact the order as such.  I might  be wrong, but this is where I want to make sure what things I need to take care of before doing the change.

Thanks

Sai.

[former_member218251]

Sai

I think you have 2 streams to consider:

1: Make to stock

2: Make to order

For the make to stock, there are planned orders, these can be fixed. The non fixed can be deleted by the MRP run to be replaced by Purchase requisitions. For this, you will have to run MRP, so during the window you can stop MRP from running.

The fixed planned orders must be deleted manually, so this will not be a problem for your window.

For the make to order stream, it is somewhat more complicated. You can have sales orders creating planned orders directly (from position type in sales order). First off all you will have to stop these orders from being entered, and also you have to think about a replacement position type to be used (TAB, TAS of ALES). The other option is that it is controlled from master data (MRP3 tab), here you can stop MRP from running and you do not have to worry.

Overall: The master data change can be deducted to changing E to F (procurement type). The BOM and Routing can remain in SAP without a problem, also most of the master data settings will not harm you. You can check the setting for the availability (procurement time, GR processing time, etc.) but basically, when you change the procurement type, most work is done that effects you core processes.

[Former Member]

Thanks Hofman. We have only 5-6 materials for now  and all of them are made to stock .If I understand your statement correctly , you are asking to convert the open planned orders into PR by running MRP. right?. I didn't understand what you meant by " during the window you can stop MRP from running". I also didn't get how you differentiate between fixed and non fixed planned orders.

Anything related to open sales orders? Do we need to address this ?

Overall you are saying, apart from  changing the procurement type and few other master data settings in the material , nothing much has to be done. Is that correct.

Thanks

Sai.

[former_member218251]

Hi Sai

You have stated you have a 1 to 2 hour window when no Planned orders or purchase requisitions should be created. Since you have make to stock, simply do not run MRP for these materials during this 1 to 2 hours.

Regarding the fixed planned orders: When a planner has made manual adjustments to the planned order, it will be fixed. You can recognize these by going to MD04: Here the fixed planned orders will have a astrix (*) with the number.

Now when all is done, run MRP. When you go to MD02 and run with planning mode 3.

So what you have to do, step by step, is this (I think):

1: Stop the MRP run, it is probably scheduled to run with an interval. Make sure it is stopped.

2: Change material master. Change procurement type to F (MRP2), and look at settings MRP type (MRP1), Planned delivery time and GR Processing time (MRP2), Strategy group and availability check (MRP3).

3: Do a costing run with these new settings (optional).

4: Do a new MRP run with planning mode 3.

5: Reschedule the MRP run to run with the interval again.

After this, you are switched over from make to stock, to buy to stock. 

[Former Member]

Thanks so much Hofman. As I asked earlier, do I need to take care of open sales orders.

Sai

[former_member218251]

Sai

In the make to stock scenario, sales orders confirm against stock. For the creation of planned orders or purchase there is the need of a demand from stock, in this case the sales order.

In this case, the link is the stock, there is no direct link between sales order and planned order. When you execute MRP with planning mode 3 after the change of master data, it will delete the planned orders, look at demand, finds sales orders, want to create 'things' to do replenishment, looks at master data if that 'thing' should be a planned order or purchase requisition and creates according to its fining (thus a purchase requisition).

So: You do not have to take care of open sales orders for this.

However: You might have changed replenishment times, for this you have to reconfirm the sales orders. You can do this with V_V2.