The Importance of FIRMING type as an Important Control Parameter in Planning Result

The 2 major types of planning methodologies available in SAP are:

• MRP (From a PP Perspective)
• Consumption based Planning (MM Perspective)
  • Reorder point procedure
  • Forecast-based planning
  • Time-phased materials planning

1.  What is the purpose of Firming?

For the planning run, the firming type determines how procurement proposals are firmed and scheduled within the planning time fence. This instructs the system to firm all planning proposal planned order or PR within the planning fence as identified by Planning time fence maintained in MRP1 View of the material master. Once the MRP run is saved with firmed proposals, a new planning run cannot erase these proposals, unless manually the MRP Controller removes the indicator as shown below.

Go to MD12 to change a planned order

2.  Types of Firming

The firming type is maintained as a control parameter in the definition of MRP type. The path is mentioned below. IMG → Production → Materials requirement Planning → Master Data → Check MRP Types

The following are the types:

• Blank
•   ‘0’ – Planning Results not firmed.
•   ‘1’ – Automatic firming and order proposals rescheduled out.
•   ‘2’ – Automatic firming without order proposal.
•   ‘3’ – Manual firming and order proposals rescheduled out.
•   ‘4’ – Manual firming without order proposal.

This field MRP procedure is also important, which determines what kind of planning is followed and whether the firming type is allowed or not.

Note:

Firming type cannot be set for Reorder Point Planning and Time-phased planning as identified by MRP procedure B and R respectively.

3.  Scenarios with different firming type for PD MRP Type

Material : 400-200

      Plant : 1000

      MRP Type : PD

   Planning Time Fence : 50 (This becomes Mandatory if Firming type is other than 0 and Blank)

   Strategy Group : 10 (MTS)

  Demand MD61 : 1000 in Oct., 2013, 1200 in Dec., 2013

  Opening Stock :  0

Starting MD04 (Refer Screen Shot Below)

Scenario 1

Firming Type (FT): Blank

Planning Time Fence (PTF): Blank

MD63:  Oct., 2013 – 1000 PC, Dec., 2013 – 1200 PC

Run MD02, Save and then see MD04 below

Result

Planned orders are created for both demands but the orders are not firmed as indicated by an asterisk. There is no reference of end of planning time fence, since the data is not maintained in the material master.

Scenario 2

Firming Type (FT): 0 – Planning Result Not Firmed

Planning Time Fence (PTF): Blank

MD63:  Oct., 2013 – 1000 PC, Dec., 2013 – 1200 PC

Run MD02, Save and then see MD04 below

Result

Planned orders are created for both demands but the orders are not firmed as indicated by an asterisk. There is no reference of end of planning time fence,  since the data is not maintained in the material master.

Scenario 3

Firming Type (FT): 1 – Automatic firming and order proposals rescheduled out

Planning Time Fence (PTF): 50 – If it is not maintained system doesn’t firm any proposal and if we go to MM02 the field PTF becomes mandatory in MRP 1 View.

MD63:  Oct., 2013 – 1000 PC, Dec., 2013 – 1200 PC

Run MD02, Save and then see MD04 below

Result

The end of planning time fence is calculated based on the 50 workdays maintained in material master MRP1 view. System creates 2 planned orders. One is firmed (37621), and for the other system creates order proposal (37622) because firming type 1 instructs the system to create order proposal even if requirement falls outside planning time fence.

Scenario 4

Firming Type (FT): 1 – Automatic firming and order proposals rescheduled out

Planning Time Fence (PTF): 50 – If it is not maintained system doesn’t firm any proposal and if we go to MM02 the field PTF becomes mandatory in MRP 1 View.

MD63:  Oct., 2013 – 1100 PC (Increase by 100 PC), Dec., 2013 – 1200 PC

Run MD02, Save and then see MD04 below

Result

The end of planning time fence is calculated based on the 50 workdays maintained in material master MRP1 view. The first demand of 1000 in Oct 2013 gets firmed through planned order 37621. When we added a fresh demand of 100 in Oct 2013 and re ran MRP, system created a fresh order proposal 37623, but has rescheduled outside planning time fence as per firming type ‘1’. The demand in Dec 2013 remains un-firmed as it lies outside planning time fence (37622).

Scenario 5

Firming Type (FT): 2 – Automatic firming without order proposals

Planning Time Fence (PTF): 50 – If it is not maintained system doesn’t firm any proposal and if we go to MM02 the field PTF becomes mandatory in MRP 1 View.

MD63:  Oct., 2013 – 1100 PC (Increase by 100 PC), Dec., 2013 – 1200 PC

Run MD02, Save and then see MD04 below

Result

The end of planning time fence is calculated based on the 50 workdays maintained in material master MRP1 view. The first demand of 1000 in Oct 2013 gets firmed through planned order 37621. When we added a fresh demand of 100 in Oct 2013 and re ran MRP, system did not create a fresh order proposal for the extra 100 since the instruction as per firming type 2 is not to create order proposal for any increase. The demand in Dec 2013 remains un-firmed as it lies outside planning time fence (37622).

Scenario 6

Firming Type (FT): 3 – Manual firming and order proposals rescheduled out

Planning Time Fence (PTF): 50 – If it is not maintained system doesn’t firm any Proposal and if we go to MM02 the field PTF becomes mandatory in MRP 1

View.

MD63:  Oct., 2013 – 1200 PC (Increase by 200 PC), Dec., 2013 – 1200 PC

Run MD02, Save and then see MD04 below

Result

The end of planning time fence is calculated based on the 50 workdays maintained in material master MRP1 view. Since we have used manual firming and order proposal reschedule out. System doesn’t do any firming and it is scheduling the demand of Oct 2013 1200 fully outside planning time fence because of the change in demand. We can now firm up to the period we want by manually by selecting, enter date and save.

Scenario 7

Firming Type (FT): 4 – Manual firming without order proposal

Planning Time Fence (PTF): 50 – If it is not maintained system doesn’t firm any proposal and if we go to MM02 the field PTF becomes mandatory in MRP 1 View.

MD63:  Oct., 2013 – 2000 PC (Increase by 800 PC), Dec., 2013 – 1200 PC

Run MD02, Save and then see MD04 below

Result

The end of planning time fence is calculated based on the 50 workdays maintained in material master MRP1 view. Since we have used manual firming and no order proposal, system doesn’t create any order proposal for the period in Oct 2013 and for Dec 2013 it creates a planned order. We can now firm up to the period we want by manually by selecting, enter date and save.

4.  Conclusion

From the above scenarios we see how important the indicator firming type can be and how we can use the same to manage existing demand, firm plans and any changes to our existing plans both within the planning time fence and outside it. The correct selection of firming type will lead to more stringent inventory control and Purchase streamlining.