Direct Production/Collective Order in Material Requirements Planning
Description
The aim of direct production is to jointly consider scheduling and costs for the finished products, assemblies, and components within a BOM structure. Without direct production, no link exists between the planned orders/production orders within the BOM structure. This means that for each assembly and component, the production order is scheduled separately and costs are regarded separately (with the exception of make-to-order production: here costs can be considered for several levels of production for the sales order). On completion of production, the goods receipt for these components is posted in the warehouse so that the goods issue of the components can be carried out for the production order of the higher-level assembly.
In direct production, the components are directly produced for the higher-level assembly, that is, they are not placed in the warehouse and no goods receipt or goods issue postings are made for components that are produced directly. The production orders of such components are assigned to the account of the higher-level production order. In this way, the system recognizes that the production orders are linked to each other. It is possible to make this link across several production levels. Therefore, this is known as a collective order. This collective order can be scheduled jointly and costs can also be jointly dealt with.
Please find more information in the Release Note, "Production orders/ collective order".
Planned orders for components that are produced directly are provided with an account assignment. They receive either the account assignment category 'unknown' or, in the case of finished products are assigned to the sales order account. In the conversion to a production order, planned orders with unknown account assignments are then assigned to the production order account of the higher-level assembly.
Procedure
A material is given the special procurement key that makes it a material to be produced directly in the material master record. This material is then produced directly for the higher-level assemblies in every BOM in which it appears as a component.
The special procurement key, along with the account assignment produces the
link between the components and the assemblies. This means that the planned
order that is created for the components is directly linked to the planned
order for the assembly via the special procurement key.
This planned opder for the components to be produced directly is assigned to
the account of the source planned order with the account assignment category
'unknown' and is not placed in stock.
If the source planned order is converted into a production order, the dependent planned order that is to be produced directly is also converted and is assigned to to the account of the source production order. The costs for the production order to be produced directly are also transferred to the account of the source production order.
The dependent requirements of components to be produced directly are escecially marked as such. Thus, MRP receives the necessary information for the direct production procedure. A special planning segment is created entitled Direct production . When planning the components, an appropriate planned order is created for these dependent requirements (with account assignment category 'U' for unknown account assignment).
The dependent planned orders are adjusted as described below to suit changes to either the scheduling or to the quantities of the assemblies:
In the second instance, the MRP controller receives a mail with information of the changes. The control of these mails is organized in Customizing.
Note
A material that has been allocated the special procurement key, 'direct production' is produced directly for the higher-level assembly in every BOM in which it appears. If you do not want this to be the case, you can switch off direct production for the component in the appropriate BOM by means of the 'explosion type'. This key is defined in Customizing for bills of material and is allocated to the item in the general data screen of the BOM in the MRP data section. Using this indicator, you can switch off direct production and further control data of the explosion (for example, the indicator for individual and collective requirements, the phantom assembly procedures, and so on).
Change system parameters in customizing
You must set in Customizing, either per plant or per MRP group, whether the planning run triggers direct production. Otherwise, the production orders of the lower-level components are only created when opening the production orders of the assembly.
The mail partner (the MRP controller who receives the messages) is
determined in Customizing of MRP.
For more information on this subject, see the chapter in the Implementation
Guide:
Proceed
The explosion type which is used to switch off the direct production
procedure for a BOM item is defined in Customizing for bills of material.
For more information on this subject, please refer to the relevant chapter in
the Implementation Guide
Proceed