This document is in continuation to http://scn.sap.com/docs/DOC-65985 (Strategy for planning Components) where we checked how components can also be planned using planning strategies (without planning Finished Product in advance). In this document we will go though the similar concept & demo on another such strategy 59, also known as Planning at Phantom Assembly level.

Use of strategy 59:

This strategy is particularly useful in the case when certain set of materials are always planned together or assembled together for finished product (consider a KIT). As the name & definition of strategy suggest, these are phantom in nature i.e. only the logical combination of components. The physical assembly does not exist and hence constitute a Phantom Assembly.

The purpose of this strategy is to plan components. The Header Material (Finished Product) can be planned either as Make-to-Stock(MTS) or Make-to-Order(MTO). Only in case of MTS, one has to set “Individual/coll.” field as 2 – “Collective requirements only” in MRP 4 view. Due to inherent nature of phantom assembly, dependent requirements are not created at Phantom assembly level but passed on to lower level components. If backflush indicator is set at phantom assembly level, goods issue of all the components in Phantom assembly BOM will happen at same time.


Overview of Scenario:


Lets consider a case where finished material (MAT-A) is Make-to-Stock (with strategy 40) and planning is needed for lower level components (MAT-C & MAT-D) as they are always used together in certain combination. In such a case, MAT-B can be created as Phantom Assembly and have strategy 59 assigned. In this particular case, planning can start from phantom assembly level (based on forecasting) and later can be consumed by finished product. 


Lets consider below product structure for better understanding.

sTRUCTURE.png

Note: In contrast to strategy 70, stock does not exists at assembly level (due to its Phantom nature)


Master Data Setting for Strategy 59:


Special Procurement key 50 for Phantom Assembly (MAT-B in this demo)

Planning strategy 59 for Phantom Assembly

Mixed MRP Indicator as “1”

Backflush Indicator in MRP 2 view  “1” – Always Backflush


For MAT-B :-

1-MRP3.png

1.1-MRP2.png1.2-MRP4.png



Step 1: Planned Independent Requirements (PIR) are created at Phantom Assembly level (MAT-B). These figures can be based on forecasting. The planning can start at Phantom Assembly level.



2.PNG


Step 2: Material Requirement Planning for Phantom Assembly generates planned orders for of type “VP” that are nonconvertible as they belong to Phantom assembly


3.PNG


/wp-content/uploads/2015/09/5_893271.png


Step 3: Dependent requirement are created for lower level components (MAT-C & MAT-D) so that procurement can start


4.PNG

Based on the requirement Purchase order can be converted into Purchase order (shown below)

41.PNG

Against this Pur Order, goods receipt takes place and stock of raw material MAT-C is increased (shown below)

42.PNG

Now if a planned order is created for header material MAT-A of 50 quantity from MRP run (based on PIR), then the dependent requirement will pass to next level material (i.e. MAT-B, Phantom Assembly). If will consume the PIRs maintained for MAT-B.

Now, due material MAT-B being phantom in nature will pass on the requirement to lower level and adjust the demand situation.

MAT-A : Header Material

7.PNG

MAT-B Semi Finished Material : Phantom Assembly

8.PNG


MAT-C: Raw Material

9.PNG

Once planned order for header material is converted into production order and availability check is performed, the source of requirement for component of phantom assembly will shift from planned order to production order. After goods issue for production order, PIRs for phantom assembly and dependent requirement for component level will again get adjusted.


The Important point to note here is that the stock is not maintained at phantom assembly level and it passes the dependent requirement to lower level.


In this way group of components can be planned together using phantom assembly strategy.   



~ End of the Document ~


Note: Please mention if you find any content as inappropriate or incorrect or feel free to update this document. I have kept collaboration document setting to “anyone” so that it can be modified by anyone. Thank You !


To report this post you need to login first.

4 Comments

You must be Logged on to comment or reply to a post.

  1. Mohammed Suheel

    Hi Rohith sir.
      very good document , as i am new to SAP PP this document made me to learn this concept and plzz keep sharing documents like this

    regards

    Suheel

    (0) 

Leave a Reply