Planning Strategy – 70 – Planning at Assembly Level
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:
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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Note: Please do mention if you find any content as inappropriate or incorrect. I will try to change it in the document or feel free to update this document for better understanding. Thank You !
Good One Rohit.
rohit it was good explanation can we have document on strategy 74
Thank you Sam !
Very well explained.
Thanx a lot for sharing..!!
Thank you !
Appreciate your efforts Rohit, Good one.
Thank a lot Kiran !
Great work Rohit,
Thank you Debraj,
Appreciating your helping nature.
Its useful document
Thank you Raj !
Thanks Neha, good to know it helped !
Thanks for the doc Rohit. If i may suggest i think it is better to remove the picture after the line "Let’s say all planned orders are converted to production orders and first production order is released to shop floor to manufacturing process"
Since the available qty after the production order of qty 100 shows only 50, which is incorrect. Maybe due to the reason that PIR has already been consumed by the sales order as mentioned later in the doc.
Just a suggestion.
Thank you Sriram for pointing out the error in above document. Your observation is right about the incorrect screenshot. I have reviewed and replaced it with correct one (version 5).
It seems I mixed multiple screenshots and placed the incorrect one while publishing the document. Really sorry to act on your comment after so many days.
Very well explained..
Thanks for a great document!
Just a clarification about the consumption of PIR for the semi finished material, here the system will consum PIR when receipt element are created for the header materials, it can be dependent requirement or reservations (not only reservations).
Thank you for the explanations above. One questions though, I see from the last comment that it is possible to control whether consumption takes place based on dependent requirement from planned orders or reservations from production orders.
Where is this configuration maintained?
I have to say, this is really elaborate and useful blog that showed us the strategy 70;