Strategy for planning components

Strategy 70 – Planning at Assembly Level

As we know planning strategies represent a business procedure for planning production quantities and dates. There are wide ranges of planning strategies available in ECC covering MTS, MTO, and Configurable Material scenarios. Most of them are assigned to finished product and they drive the planning & procurement of complete BOM structure (Sub-Assemblies & Components).

In this document, we will be covering Planning strategy 70 which is maintained at assembly level (SFG) and not at the header level (FG). In other words, this strategy is designed for planning of components.

Such strategies are called “Strategies for Planning Components”. Following are few predefined strategies in SAP:

• Strategy 70 – Planning at Assembly Level
• Strategy 59 – Planning at Phantom Assembly Level
• Strategy 74 – Planning w/o Final Assembly at Assembly Level.

In this document, we will be covering Strategy 70 in detail.  

Link to SAP Library for Strategy 70:

http://help.sap.com/saphelp_erp60_sp/helpdata/en/42/23bf53d25ab64ce10000000a174cb4/content.htm?frameset=/en/7a/2eb853dcfcb44ce10000000a174cb4/frameset.htm&current_toc=/en/7a/2eb853dcfcb44ce10000000a174cb4/plain.htm&node_id=22&show_children=false

This planning strategy 70 is particularly useful when you have multiple variants of finished product that are manufactured using common assemblies and If you can forecast these assemblies well in advance.

In such scenario, you have plan production Quantity / Date of assemblies with strategy 70. However, finished product can have any strategy MTO or MTS. PIR of assembly are consumed by Production Order requirement of header material (not by sales order)

Let’s have a Demo in SAP to understand this better. Below is the graphical depiction of test product structure of materials with strategies

In combination with Make to Order

Planning strategy 70 is assigned to Semi finished level (Material: IMSFG01)

Planning strategy 20 is assigned to Header Material (IMFG01)

Raw Materials (IMRM01 & IMRM02)

Pre-requisite for Strategy:

Strategy Group – 70 in MRP 3 view of Material Master

Mixed indicator “1” in MRP 3 view of Material Master (Subassembly planning with final assembly)

Consumption mode & period in MRP3 view of Material Master (to allow consumption of PIRs)

The process starts with PIR for assembly (in this case material IMSFG01)

These PIRs may come from different areas (Material forecast, SOP, Manually etc). If you have forecasting in place then this gets calculated using forecast run and copied to Demand Management.

Let’s consider below requirement for assembly for next 3 months (copied from forecast). The requirement type assigned to strategy 70 is VSFB.

After MRP run:

Planned order are created against each independent requirements

Based on these requirements, planner can start production.

Let’s say all planned orders are converted to production orders and first production order is released to shop floor to manufacturing process.

This semi-finished assembly IMSFG01 is used in a header material of IMFG01

Since its a MTO scenario, lets consider a sales order of 50 Quantity is received for finished product.

Please note that the requirement from sales doesn't reduced PIR for assembly

After MRP run, Planned order gets generated

The dependent requirement from header material is passed on to lower level assembly for which production is already in place.

MD04 of Assembly:

Dependent requirement from header material consumes PIRs of assembly. This is how PIR gets consumed from the dependent requirement of header material

In combination with Make to Stock

Let’s consider another material IMFG02 which is MTS and same assembly IMSFG01 is used.

In case of Make to Stock, individual/collective indicator should be “2” (Collective requirement) in MRP 4 of Material Master

If planned order of 100 quantity is created for header material IMFG02.

The dependent requirement of header material will consume PIR of assembly

In this way, Assembly (Components) can be planned using strategy 70 for various MTO & MTS scenario of Finished Product.

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