This is the standard situation.

Alternative sequences can mainly be represented as alternative modes in SAP APO. For displaying alternative sequences you have to distinguish between the different business backgrounds:

If the alternative sequences in SAP R/3 are chosen dependent upon of lot size because, for example, as of a certain lot size an alternative resource is more economical, you have to create your own production version per lot size dependent on lot size in SAP R/3. SAP APO cannot carry out a lot size dependent mode selection when using the PPM. In this way you can carry out planning for the correct resources in SAP APO.

If the planning of alternative resources does not play a role you can ignore this procedure and carry out a sequence exchange in the SAP R/3 production order. In the associated SAP APO production order this leads to the deletion of the exchanged operations in the standard sequence and to the addition of the exchanged operations to the alternative sequence.
If the alternative sequence represents an alternative as regards capacity, you can show these alternative sequences as alternative modes in SAP APO. For this, there are three different cases:

• Number of operations in alternative sequence = number of operations in standard sequence

• Number of operations in alternative sequence < number of operations in standard sequence

• Number of operations in alternative sequence > number of operations in standard sequence

The solution outlined here must be implemented via a customer exit (see SAP R/3 note 217210 "Mapping of Alternative Sequences in SAP APO System") when transferring the PPM to SAP APO. Note that the choosing of alternatives should take place exclusively in SAP APO, because SAP APO plans capacities and has the most comprehensive optimizations at its disposal.

Special Case Alternative Work Centers
If there are alternatives to operations that only differ in the resource, you can integrate this directly into the PPM as an alternative mode using the work center classification function of PP-PI. For this, after the work center classification you have to select the corresponding operation in routing and enter the function code =opca. From then on you can use the function of alternative resources described in PP-PI

Sub-operations are subject to the following restrictions in SAP R/3:

The sub-operations can only be scheduled relative to the superordinate operations. A sub-operation can have an alternative work center. The assignment of material components and production resources/tools occurs exclusively in the operation and is not intended for sub-operations.

The following prerequisites apply to the transfer of operations to SAP APO:

• A control key relevant to scheduling must be assigned to the operation.
• An SAP APO relevant work center must be assigned to the operation. SAP APO relevant means that the work center for the target system is contained in an active integration model for work centers.
• The operation must have a duration. That means that in the work center a formula must be assigned to the capacity category relevant to scheduling.
  Exception: Operations with duration 0 and setup key information are transferred to the PPM. In addition, you can influence these requirements using the customer exit EXIT_SAPLPGS1_002.

The queue time is not taken into account.

The minimum wait time and the normal move time are represented in the relationships.

In SAP R/3 the setup and processing times are calculated according to the formulas given in the work place and the corresponding standard values. The formulas can be user defined.

For SAP APO fixed and variable durations related to the quantity of the output material are calculated via CIF: SAP R/3 formulas and SAP R/3 standard values are taken into account.

The fixed and variable durations are determined for formulas that are not known in the SAP R/3 standard using calculations with two different fixed order quantities and using interpolation. Standard SAP R/3 formulas are recognized by the system.

Required splitting without SAP R/3 individual capacity functions is taken into account via CIF when calculating the fixed and variable durations.

Overlaps are not integrated via CIF.

A distinction is made between:

• Assembly scrap
• Component scrap
• Operation scrap

Quality control can ascertain at the end of a process that a certain percentage of the processed parts cannot be used. If this scrap arises for each production process you can take into the assembly scrap account at the planning level. If you work with a fixed lot size the system calculates the planned order quantity. The system then increases these planned order quantities by the amount of the scrap quantity. The calculation of scrap also takes into account co-products. Assembly scrap can be maintained in the material master record.
Requirements planning automatically increases the expected yield by the scrap percentage.

Calculation:
Planned order quantity = yield * (1 + assembly scrap in %)

Example:

220 = 200 *(1 + 10)
The component quantities are correspondingly increased.

The quality of a component or the processing of a component can be the reason that you have an increased components requirement.

You can maintain component scrap in the Bill of Material (BOM) at the item level, or in the material master record. Component scrap increases the dependent requirement quantity of the component whether BOM dependent or independent. If you also work with assembly scrap the system first calculates the component quantity taking into consideration the assembly scrap. Using the quantity calculated, the system calculates the component scrap quantity. The component quantity is figure that results when both quantities are added together.

A quality check takes place before high-cost components can be installed in an assembly. Materials with errors that had to be taken into account for assembly scrap are not carried across to the subsequent operation.

Operation scrap can be maintained in the BOM at item level. You also have to set the net indicator. In requirements planning the system determines the component scrap quantity without taking into account the assembly scrap.

You can use the net indicator without maintaining operation scrap. In this way you can prevent assembly scrap being taken into consideration at the component level.

In routing at operation level it is also possible to maintain scrap in percent. This scrap is relevant to scheduling. The operation quantity of the subsequent operation is reduced.

In principle, SAP APO only works either with assembly scrap or operation scrap due to the difference in the way scrap is considered compared to in SAP R/3.

Assembly scrap is represented in the same was as in SAP R/3. However, the calculation is different to that used in SAP R/3. If you work with a fixed lot size, the planned order quantity is not increased as it would be in SAP R/3. The yield is a result of the planned order quantity minus the scrap quantity.

Co-products are included in the scrap calculation.

Calculation:
Planned order quantity = yield / (1 - assembly scrap in %)

Example:

222=200 / (100% - 10%)

If you maintain the assembly scrap in SAP R/3, this is not transferred via CIF 1:1 to SAP APO. It is instead converted in order to maintain the calculated scrap quantity.

The component scrap is included when the PPM is created in the quantities of the input materials.

In SAP APO you can also maintain a scrap factor at the activity level. If operation scrap is maintained in SAP R/3 routing, this is set as the activity scrap. You can only maintain one scrap factor at the activity level. The quantities are increased for all components that are assigned to the activity.

Calculation:
Planned order quantity = yield / (100% - activity scrap in %)

If, however, you work with assembly scrap (which should be avoided), the following calculation applies:

Planned order quantity = yield / (1 – assembly scrap in %) / (1 – activity scrap in %)

Example:

247 = 200 / (100% – 10% ) / (100% – 10 %)