Exercise Objectives
Exercise 3: Planning with Final Assembly
Exercise Objectives
After completing this exercise, you will be able to:
• Describe how planning with final assembly strategy works
• Describe the effects of a sales order when using planning with final assembly strategy
Business Example
Precision Pumps Inc. has produced pumps to stock. It now wants to change its strategy to planning with final assembly.
Task 1:
In plant 1000, you want to enter a demand program (planned independent requirements) beginning in six months time and distributed over a period of six months. For these 6 months of your planning, choose the planning with final assembly (VSF requirements) strategy to plan the production of 1200 pumps. To do this, follow the two steps described below:
1. Maintain the material master: In the material master for pump R-F1## enter the strategy group 40 (planning with final assembly). To do this, call the transaction Change material immediately from the production master data with the following parameters:
Select view(s): MRP 3
Organizational levels: Plant 1000
In the strategy group field, enter the value 40 and save the material master.
2. Maintain planned independent requirements: From the Demand Management menu create planned independent requirements for material R-F1## in plant 1000. Set the planning period to month format by entering the indicator M and Version 00 in the planning period field on the initial screen for the transaction.
Start the transaction.
Enter material number R-F1## and plant 1000 (field MPR area) on the table screen in a new empty row. Select this row and go to the Schedule lines tab page to access the schedule lines screen. Make sure the requirements type VSF, which belongs to strategy 40, is set automatically by the system.
Continued on next page
Call the Split period online function from the edit menu to instruct the system to automatically split the production quantity of 1200 pieces over the 6 month period. Use the following data:
From: M, current month + 6
months
To: Current month + 11
months
Planned quantity: 1200 pieces
Period indicator for automatic distribution of requirements quantity: M.
Confirm (including any potential warnings) with Enter and save the requirements.
Task 2:
1. Display the stock/requirements list for material R-F1## in plant 1000 and note a) the second VSF requirements date:
_________________________________
b) and the requirement quantity:
_________________________________
Task 3:
From the MRP menu, carry out multilevel, single-item planning for pump R-F1##.
Use the same creation indicators as in the previous exercises. Make sure the “Display Material List” indicator is selected. Start the planning by choosing Enter twice. Once the MRP run has been carried out, the system displays the statistics.
1. Choose the Material List function, select the row with pump R-F1## and goto to the stock/requirements list of the material. You now see the planned orders that have been created for the requirements (refresh the list if necessary).
2. What is the available quantity for the second VSF requirement date?
_________________________________
3. What is the planned independent requirements quantity for the second VSF requirements date?
Continued on next page
_________________________________
Task 4:
Now enter a customer requirement of 10 pieces from the Demand Management menu for material R-F1## in plant 1000.
1. Use the second VSF planned independent requirement date + 4 calendar days (that is, the date you noted above + 4 days) as requirement date for the customer requirement. Make sure the requirements type is KSV (sales order with consumption) and save your entries.
Task 5:
Call the current stock/requirements list again (If necessary choose the Refresh pushbutton after having called up the list) and analyze the behavior of the customer requirement that you have just entered.
1. What difference do you see compared to the customer requirement you created in make-to-stock production (previous exercise)?
______________________________________________________
2. What is the planned independent requirement quantity for the second VSF requirements date in the stock/requirements list now?
______________________________________________________
Task 6:
In the stock/requirements list, select the second VSF planned independent requirement and call the Details of element and Display element functions. In the planned
independent requirements table, select the row with the requirements that were created last and examine the VSF planned independent requirement quantities (as they appear on the database) on the schedule lines screen.
1. Note the requirements quantity on the date above:
______________________________________________________
2. Do the two quantities (i.e., the quantity in this question and the quantity in the previous question) differ? If so, by how much?
______________________________________________________
Continued on next page
Task 7:
Analyze the total planned independent requirements situation. To do this, access the Display Total Requirements function in the evaluations for Demand Management.
1. Which VSF requirements quantities were consumed by which customer requirements quantities?
______________________________________________________
2. Which planned independent requirements quantities are displayed in the stock/requirements list?
______________________________________________________
Task 8:
10 pumps from stock are delivered to the customer. Post the other goods issue. You must enter the customer requirement number and the item number here. You can find this number in the stock/requirements list in the VSF planning customer requirement (planning with final assembly). You will recognize the process of this goods movement posting from the exercise “sales orders in make-to-stock production”, task 2.
1. How has the stock situation changed?
______________________________________________________
2. Which planned independent requirements (customer requirements/planned independent requirements) were reduced by the goods issue from warehouse?
(From the current stock/requirements list, look at the schedule lines of the VSF requirements on the database.)
______________________________________________________
Solution 3: Planning with Final Assembly
Task 1:
In plant 1000, you want to enter a demand program (planned independent requirements) beginning in six months time and distributed over a period of six months. For these 6 months of your planning, choose the planning with final assembly (VSF requirements) strategy to plan the production of 1200 pumps. To do this, follow the two steps described below:
1. Maintain the material master: In the material master for pump R-F1## enter the strategy group 40 (planning with final assembly). To do this, call the transaction Change material immediately from the production master data with the following parameters:
Select view(s): MRP 3
Organizational levels: Plant 1000
In the strategy group field, enter the value 40 and save the material master.
a) Menu path: Logistics → Production → Master Data → Material Master
→ Material → Change → Immediately
2. Maintain planned independent requirements: From the Demand Management menu create planned independent requirements for material R-F1## in plant 1000. Set the planning period to month format by entering the indicator M and Version 00 in the planning period field on the initial screen for the transaction.
Start the transaction.
Enter material number R-F1## and plant 1000 (field MPR area) on the table screen in a new empty row. Select this row and go to the Schedule lines tab page to access the schedule lines screen. Make sure the requirements type VSF, which belongs to strategy 40, is set automatically by the system.
Call the Split period online function from the edit menu to instruct the system to automatically split the production quantity of 1200 pieces over the 6 month period. Use the following data:
Continued on next page
From: M, current month + 6 months
To: Current month + 11
months
Planned quantity: 1200 pieces
Period indicator for automatic distribution of requirements quantity: M.
Confirm (including any potential warnings) with Enter and save the requirements.
a) Menu path: Logistics → Production → Production Planning → Demand Management → Planned Independent Requirements → Create
Task 2:
1. Display the stock/requirements list for material R-F1## in plant 1000 and note a) the second VSF requirements date:
_________________________________
b) and the requirement quantity:
_________________________________
a) Varies b) Varies
Task 3:
From the MRP menu, carry out multilevel, single-item planning for pump R-F1##.
Use the same creation indicators as in the previous exercises. Make sure the “Display Material List” indicator is selected. Start the planning by choosing Enter twice. Once the MRP run has been carried out, the system displays the statistics.
1. Choose the Material List function, select the row with pump R-F1## and goto to the stock/requirements list of the material. You now see the planned orders that have been created for the requirements (refresh the list if necessary).
a) No solution required
2. What is the available quantity for the second VSF requirement date?
Continued on next page
_________________________________
a) Available quantity on the second VSF requirements date: 0 pc
3. What is the planned independent requirements quantity for the second VSF requirements date?
_________________________________
a) Planned independent requirements quantity on the second VSF requirements date: As above (see task 2)
Task 4:
Now enter a customer requirement of 10 pieces from the Demand Management menu for material R-F1## in plant 1000.
1. Use the second VSF planned independent requirement date + 4 calendar days (that is, the date you noted above + 4 days) as requirement date for the customer requirement. Make sure the requirements type is KSV (sales order with consumption) and save your entries.
a) Menu path: Logistics → Production → Production Planning → Demand Management → Customer Requirements → Create
Task 5:
Call the current stock/requirements list again (If necessary choose the Refresh pushbutton after having called up the list) and analyze the behavior of the customer requirement that you have just entered.
1. What difference do you see compared to the customer requirement you created in make-to-stock production (previous exercise)?
______________________________________________________
a) The sales order with requirements type KSV is relevant to requirements.
This means it affects the available quantity.
2. What is the planned independent requirement quantity for the second VSF requirements date in the stock/requirements list now?
______________________________________________________
a) The planned independent requirements displayed in the current
stock/requirements list is 10 less than the original requirement you noted above. The procurement element remains unaffected by this for the time being; no new planning run was triggered.
Continued on next page
Task 6:
In the stock/requirements list, select the second VSF planned independent requirement and call the Details of element and Display element functions. In the planned
independent requirements table, select the row with the requirements that were created last and examine the VSF planned independent requirement quantities (as they appear on the database) on the schedule lines screen.
1. Note the requirements quantity on the date above:
______________________________________________________
a) Varies (original quantity)
2. Do the two quantities (i.e., the quantity in this question and the quantity in the previous question) differ? If so, by how much?
______________________________________________________
a) Yes, by 10 pc.
Task 7:
Analyze the total planned independent requirements situation. To do this, access the Display Total Requirements function in the evaluations for Demand Management.
1. Which VSF requirements quantities were consumed by which customer requirements quantities?
______________________________________________________
a) Menu path: Logistics → Production → Production Planning → Demand Management → Evaluations → Display Total Reqmts
Consumed VSF requirements quantities: The second VSF planned independent requirement quantity is consumed by the KSV customer requirement.
2. Which planned independent requirements quantities are displayed in the stock/requirements list?
______________________________________________________
a) Displayed independent requirements quantities: In the current
stock/requirements list, the system displays the planned independent requirements quantities that have not been consumed (that is, the planned independent requirements that still exist after consumption).
Continued on next page
Task 8:
10 pumps from stock are delivered to the customer. Post the other goods issue. You must enter the customer requirement number and the item number here. You can find this number in the stock/requirements list in the VSF planning customer requirement (planning with final assembly). You will recognize the process of this goods movement posting from the exercise “sales orders in make-to-stock production”, task 2.
1. How has the stock situation changed?
______________________________________________________
a) New requirements situation: The available plant stock has been reduced from 40 pieces to 30 pieces.
2. Which planned independent requirements (customer requirements/planned independent requirements) were reduced by the goods issue from warehouse?
(From the current stock/requirements list, look at the schedule lines of the VSF requirements on the database.)
______________________________________________________
a) Planned independent requirements reduction: The customer requirement was reduced and is no longer included in the list. The VSF planned independent requirement was also reduced, that is, the second VSF quantity (affected by the consumption) was also reduced by 10 pc.
These 10 pc. are recorded as a withdrawal quantity in the planned