Dependent demand and manufacture of co-products key figure

[Former Member]

Hello All -

I have a PPM with 3 operations:

Operation 1: Ouput product is X

Operation 2: Input product is X and Ouput product is Y

Operation 3: Input product is Y and Output product is Z.

This PPM has been manually created in APO itself and not CIFfed from R/3.

When I create a planned order for product Z, the system creates a dependent demand ( as expected and populates the dependent demand Key figure) for Y AND also creates a receipt for manufacture of co-products and populates the "manufacture of co-products" key figure.

Would be grateful if somebody can help me understand why this is being created and how do I restrict it? I do not want to create a receipt for co-products..

SAP help document say the system should create any receipts for co-products ONLY if there are multiple output products but in my case, for one operation, there are never multiple output products.

Appreciate your help!

Varun

[srinivas_krishnamoorthy · Accepted solution]

I think what you see is a standard behaviour. You should model this using two PPMs instead. APO will otherwise gets confused on how to deal with the intermediate product.

The other thing you can do is to model it is as a single step operation process (since you are anyway maintaining PPM in APO) without considering the intermediate product. Not sure if it meets the Biz requirement.

[Former Member · Accepted solution]

Thanks Srinivas -

Thanks for the reply. This was my initial set up for one PPM plan:

Operations:

Operation1:output product X

Activity 1: Resource 1

Operation2:Input product X, output product Y

Activity 1: Resource 2

Operation3:Input product Y, output product Z

Activity 1: Resource 3

Activity Relationships:

operation3(activity 1) - operation2(activity 1)

operation2(activity 1) - operation 1(activity 1)

PPM:

PPM for product Z

PPM for product Y

PPM for product X

When I create a planned order for Z, the system is doing the following :

Create a planned order for Z using resource 3,

creates a dependent requirement for Y and a manufacture of co-product receipt for Y on Resource 2

Dependent requirement for X and a manufacture of co-product receipt for X on resource 1( CONSTRAINT is at this level). I should be able to do capacity leveling at this level.

So I was wrong in my initial post when I said I did not want to create a manufacture of co-product receipt because if we do not do this, then the resource 1 is not loaded and we cannot do any capacity leveling at this level. Since this product is an intermediate for other output products as well and there is a constraint on the capacity, it is necessary to do capacity leveling on resource 1.

Now, I have the following questions:

1) Is generating a manufacture of co-product receipt the only form of creating receipt and load resource 1? Is there any way we could just create a receipt in the planned order key figure EE?

2) As this process is messy, is there any other way of meeting this requirement?

Any idea how this is normally dealt by other companies?

Thanks a lot!

Varun

[srinivas_krishnamoorthy · Accepted solution]

Varun

Did you try having two PPMs instead of clubbing all operations in one PPM? since in any case you are creating PPM directly in APO, it will easier from maintenance perspective to have just one PPM per operation. It will be easier to do capacity leveling at intermediate and final level using such a structure.

Srinivas

[Former Member · Accepted solution]

Hi Srinivas -

I tried using 3 PPMs, I say 3 since we need a PPM for the lowermost product as well so as to load the resource which is used to make the this lowermost product ( X) to do capacity leveling on resource 1. But when I create a planned order for product Z, it just created a dependent requirement for product Y using the PPM for Z and just stops there.

It does not explode the PPM for Y and subsequently X. Am I missing something in the setup?

Thanks a lot

Varun

[srinivas_krishnamoorthy · Accepted solution]

Are you using multi-level Heuristics for doing the explosion or is it a stage-wise explosion ?

[Former Member · Accepted solution]

Hi Srinivas -

Earlier I was manually plugging in numbers in the planned order KF in the planning book to create planned orders. It was creating manuf of co-products receipt at the lowermost level ( intermediate X)since it was one single PPM.

With multiple PPM, it works(creates planned orders in this case and not manuf of co-products receipt for lowermost intermediate) when I run multi-level heuristic.

But I kind of see a problem with using multiple PPMs. IF I do capacity leveling at the lower most product X /resource level, the dates or orders are adjusted only( move to next bucket) for product X and not for the upper components Y or Z since its a different PPM altogether.

But with single PPM, If I do capacity leveling at intermediate product X level, the planned order for FG Z (and also Y) also changes and moves to the next bucket.

Thanks for your input. Do you think there is an easier way? If yes, please let me know. If at all I stick to single PPM, can this process of creating PPMs in APO automated? I think I saw some posts about APO Loader tool being used but I am not sure how. Can you please let me know how this can be automated?

Thanks

Varun