SAP PP (Production Execution) - Consumption from Alternative Plant

[RAHEEL_BABAR]

Summary: 

Consumption from an alternative plant is helpful in situations where a material shortage may occur at the main plant or a specific plant may be better suited for the production of a particular material. By allowing consumption from an alternative plant, the production process can continue without interruption or delay, and the material can be sourced from a different location.

For example, if a specific plant has an excess inventory of material, but the main plant requires that material for production, consumption from the alternative plant can be enabled, and the material can be sourced from the alternative plant, preventing any production delays. This can also be useful in emergency situations where a particular material is needed urgently, and the main plant cannot supply it in time.

In addition, consumption from an alternative plant can help optimize inventory levels and reduce the risk of overstocking or stockouts, by allowing the material to be sourced from a plant with excess inventory instead of ordering new materials.

Overall, consumption from alternative plants provides flexibility and contingency in the production process, enabling a more efficient and reliable supply chain.

Prerequisite:

• Create Bill of Material (In the Manufacture Plant)


• Material Master (Maintain Consumption Material at Both Plants, Manufacture Plant + Consumption Plant)


• Maintain Special Procurement Key

Configuration (Special Procurement Key):

SPRO > Production > Material Requirements Planning > Master Data> Special Procurement Key

Define Special Procurement Type

Note: in our example

1710 - Manufacture Plant

1715 - Consumption Plant

Master Data:

1. Bill of Material

BOM (Bill of Material)

 

2.  Material Master

Material Master - MRP2

 

Process:

Create Production Order - CO01

Production Order Header

now we can see in the components tab system picked plant 1715 for component RM15 due to special procurement key Z1.

Production Order - Components

Now after the release system creates reservations as follows;

For Material RM15 (Consumse for alternative plant 1715)

Reservation

For Material RM16 (Consume for Manufacturing Plant -1710)

Reservation

During the confirmation of production orders in SAP, there may be a need to consume stock from alternative plants for certain materials. This can be achieved by maintaining the necessary settings in the material master data and production order, and ensuring that the alternative plant has enough stock available for consumption. For example, during the confirmation process, the system may consume stock for material RM15 from an alternative plant (e.g. plant 1715), while for material RM16, the system may consume stock from the manufacturing plant (e.g. plant 1710). By properly managing the consumption of stock from alternative plants, companies can ensure efficient production processes and avoid delays due to stock shortages.

Conclusion

In conclusion, consumption from an alternative plant in SAP can be a useful tool for companies to optimize their production and inventory management processes. By enabling the consumption of components from different plants, companies can take advantage of available stock in other locations and reduce the need for costly transportation or warehousing of excess inventory. However, it is important to set up the necessary configuration and processes to ensure accurate tracking and management of inventory and costs. With proper planning and execution, consumption from alternative plants can help companies streamline their operations and improve their bottom line.

I hope that you found this blog informative and helpful. If you have any questions or comments, please don't hesitate to share them. Your feedback is valuable and will help improve our collective knowledge. Thank you for reading and stay tuned for more SAP-related content in the future!

 

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