Pegging

Purpose

Pegging is used to assign suitable existing product receipts and product stocks, which can cover the requirement, to a product requirement. Pegging organizes the material flow through all BOM levels, from the procurement of components and raw materials to delivery of a sales order, for example. Orders that are linked together, and their pegging relationships, form a pegging structure.

The graphic below gives an example of a pegging structure. The arrows represent the pegging relationships; that is, the material flow.

Based on pegging relationships, the system can:

  • Identify planning problems on various production levels and display them using alerts

  • Automatically forward scheduling specifications for an order to the dependent orders in the pegging structure, in Detailed Scheduling

  • Optimize delays and storage costs in PP/DS optimization

    Note Note

    Pegging should not be confused with the net requirements calculation : During planning, using the net requirements calculation, the system identifies shortages in order to then create receipts to remove these shortages.

    End of the note.

Features

Pegging Procedure

The following pegging procedures are available:

  • The system automatically executes dynamic pegging , if planning has changed, for example, after you have created new requirements or new receipts. With dynamic pegging, the system deletes existing pegging relationships and creates new ones. Thus, with dynamic pegging, the assignment of a receipt element or a stock element to a requirements element is generally not retained for long if the planning changes.

  • You use fixed pegging if you want to fix assignment of a receipt or stock element to a requirements element. The system cannot change manually fixed pegging relationships. In a Capable-to-Match planning run, the system can also automatically create fixed pegging relationships; however, the system can change these in a subsequent CTM planning run.

Pegging Area

Pegging can only link requirements elements, stock elements, and receipt elements within a pegging area; that is, the elements must:

  • Consume or deliver the same product

  • Be in the same location

  • Have the same account assignment

  • Be planned in the same planning version

In addition, the elements have to be able to be linked, in accordance with the requirements strategy. For example, a requirement from planning without final assembly may not be linked with a receipt for make-to-stock production .

Note Note

With the exception of the attribute planning version , the pegging area is identical to the planning segment in SAP R/3. For that reason, the term planning segment is often used as a synonym for pegging area in SAP APO.

End of the note.
Alerts

Based on pegging relationships the system can identify planning problems and display alerts . If, for example, a delayed receipt is assigned to a requirement, the system can display a date/time alertfor this delay. If too few receipts are assigned to a requirement, there is a shortage for the requirement. If a receipt is not assigned to any requirement, the receipt generates a surplus. The system can display quantity alertsfor these quantity problems. In Monitoring PP/DS Alerts , you can find a detailed description of PP/DS alerts that the system determines based on pegging relationships.

The system can display direct alertsand network alertsfor receipts or requirements. A direct alert is an alert that directly concerns a receipt or a requirement. If, for example, not enough receipts are assigned to a requirement, the system can display a direct shortage alert for this requirement. Using the pegging structure, the system can also display alerts for planning problems that occur at lower production levels for a receipt or a requirement. These alerts are known as network alerts. For example, if there is a shortage for a component requirement, the system can also create an alert for the finished product that points to the shortage at component level. You specify if the system should create direct alerts and network alerts for a product in the location product master. In Customizing for Production Planning and Detailed Scheduling under Set order view/periodic product view , you can make separate settings for receipts and requirements, as to whether the system should display network alerts in the order view .

Displaying Pegging Information

You can display pegging information in the order processing view. For more information, see Displaying and Changing Pegging Information .