MRP Plan - Alternate BOM vs Substitute Component

We have certain situations where ITEM B (length 5 in) can be used in place of ITEM A (length 3 in) in which just the amount cut off differs. To be recognized in MRP planning and work order creation, should an alternate BOM be used or a substitute component?
Is there a general rule of thumb that indicates when to use which feature?

Dear PP watson,
1.While giving the PIR's in MD61,after entering the values click on the schdule line tab page and then in
the top menu click on settings--->prod.version,now against the PIR enter the prod.version whould be
considered.
So this will be considered during MRP run.
2.IF 2 prod.versions exists for the same lot size and validity dates then the system always picksup the
first prod.version during MRP run.
3.IF you want the system to consider the second prod.version,then lock the first prod.version before
taking MRP run.
4.If quota is maintained in MEQ1,then as per this you will get the output in MRP.
Points 2,3,4 is generally used if PIR's are assigned without any prod.version.
Come back with your queries.
Regards
Mangalraj.S

Similar Messages

How to consider substitute component under two-phase plan(MPS vs MRP).

We try to run two-phase plan: Production plan and Manufacture Plan in ASCP.
We hope our planner can review production plan result and modify system suggestion date or qty for assemble component plan order.
Then we run Manufacture plan setting demand source is from production plan and "use substitute component" is checked in decision rule, we hope this Manufacture plan can consider substitute component.
But the Manufacture plan didn't consider substiute component.
How to make Manufacture plan consider substiute component when we set demand source is from production plan .

Stacey,
I understand your requirement. I also believe that the manufacturing plan should be able to plan substitute components, but it would take quite a bit of analysis to understand why it was not working correctly. If you want to pursue that approach, I would recommend you start a SR with oracle support to troubleshoot.
The most typical approach with two plans is to have the production plan constrained and attempt to use available substitute components marked as critical. If that is the case, these "critical item" orders would not be replanned in the second plan. Your purchasing planner would not be able to firm planned orders in the second manufacturing plan, but could only update dates and release from that plan. At best case, any changes would be overwritten entered by the purchaing planner for items controlled in the production plan would be overwritten in the next cycle.
The best use of a two plan approach is to simplify constrained planning efforts by have a second unconstrained plans for most items and a smaller constrained plan driving the process. That is not your intent, so you might want to stay with one plan. You will always have some lag in these planners actions in a two plan process, so I don't know if this approach is driving any real benefit for you from a one plan approach. In either approach you will have planners stepping on each other and having to review exceptions, or better yet... talk to each other to review plans.
So...
1. If your intent is to limit the complexity of the constrained plan, the two plan approach has benefits
2. If point # 1 is not your intent, and you are focused on allowing planners to react faster and communicate with each other as they plan their schedules, stay with a one plan approach.
You said
"Our planner will release the plan orders which suggest start date is inside two weeks. But when they review the result and release the plan order , purchase planner review the same plan and issue purchase request in the same time. It will happen some problem, purchase planner will obey system's purchase suggestion but can't meet the demand of those plan orders that production planner has released."
An assembly planner should not be releasing orders within two weeks when the materials are unavailable. That should not happen with a constrained plan unless they created an override the system recommendations. With unconstrained plans, the best you can do is implement a time fence control to prevent this and review exceptions.
I think the best you can do here is implement this process as constrained with substitutes considered for the Assembly planner. Then usining one plan, have the purchasing planner implement their orders based on the latest information. They should use safety stock planning techniques and be looking at a lonegr horizon for demands. They should also communicate these plans to each otherKevin

Issue in Exploding Alternate BOM while creating Planned Order to PR

Hiii All,,
I have maintained a two BOM's for a finished material one for In House production and one for Sub contracting the components for the Two BOM's are different.
i have maintained Two Versions for the finished material also.
when i covnvert a planned Order to an Sub Contracting Purchase Requisition alternate BOM doesnt explode. i have also maintained a production version in the Purchase info record. Still the main BOM explodes.
i have to manually change the planned order and give the other production version ie not the Inhouse BOM.
After creating the PR then again i have to go planned order and change to the normal InHouse BOM.
Please Provide me the solution.
Thanx & Regards,
Kumar Rayudu

Hi
In order to explode your alt BOM in your PR do the following.
1. Maintian alt BOM
2.Maintain a Version using this alt BOM only. Do not select any routing /rcp group.
3.Give this Version name in your Inforecord (ME11).
4.Set the "MRP" field as "Record Relevant to MRP " in your Source List for the material.
5.In the material master, select the procurement type (MRP2) as " X " ( ie, both proc types).
I am sure it will work for you
Regards
Krishna

Substitute Component independent of the BOM

Does Oracle have the concept of a substitute component, irrespective of the BOM in which it could exists?
For example, Component A can always be replaced by Component B. This would be applicable to Product X or Product Y, both of them use Component A.
Oracle seems to have the concept of a substitute component on a specific BOM (BOM_SUBSTITUTE_COMPONENTS).
http://download-west.oracle.com/docs/cd/A60725_05/html/comnls/us/bom/bomtas05.htm
Using this functionality, I would have to specify B as a substitute in two different BOMs - one for Product X, one for Product Y.
I am wondering if there is a global "Subsititute Item/Component".
Edited by: user8578890 on Feb 19, 2010 10:27 AM

The substitute component relationship is used on Work orders and sales orders.
And in both cases, you need a constrained ASCP plan to make use of the relationship.
And no, there is no way in ASCP to globally subsitute A for B.

Alternate BOM explosion in planned order creation

Dear Experts,
We have maintained a alternate BOM 1 and 2 of a assembly which is defined as a Phantom (E-50). User wants a option of selecting the alternate BOM of this phantom assembly while creating the planned order of Header assembly. Is it possible?How?
Thanking you,
SR

Dear Sachin,
In my understanding it's not possible to select the different alternative BOM of a phantom assembly when creating the planned
order for a header material.
But give a try in this way,create 2 production version with different lot size or validity date for each laternative BOM and assign
the value as 2 in BOM selection method in MRP4 view for the phantom assembly.
Correct me if I'm wrong.
Regards
Mangalraj.S

*URGENT -Alternate BOM selection in MRP*

Dear gurus
I have an urgent requirement regarding alternate bom selection.
our scenarion is complete subcontracting and no production versions are maintained and for suppose i have a product X which has 3 alternative boms during the sales order creation iam able to select the required alternative but during the mrp run the system is selecting the alternative "1" by default.I want that during the mrp run also the system should explode the bom which i have selected during the sales order creation not the alternate "1".
please reply.
regards
Kumar

Dear Dharma
in my previous post I havent got suitable reply from my previous post so i have posted again waiting for answers.
regards
Kumar

How to Switching Alternate BOM to Primary BOM

Dear All
Need help...
I have already try to switch from alternate BOM to primary BOM. but why it can not effect anything? any step that i mis?
my step is :
1. Navigate to the Substitute Components window. choosing the Substitutes button from the Bills of Material window.
2. Enter a substitute item for the component.
3. Enter the quantity of the substitute item needed to replace the full component quantity.
its correct ??
Best Regards,
The pooh

MRP plans according to primary bom. If you run ASCP constrained plan, you can set the plan options such that it will look at alternates as well.
If you run MRP or unconstrained bom, you will have to change the primary bom itself (via ECO or BOM changes).
You can also consider using the alt. bom when creating the work order manually.
Sandeep Gandhi

How to maintain alternative material in a BOM for a component.

how to maintain alternative material in a BOM for a component.if stock for existing bom component is less then it should consider other alternative material in the same BOM

HI,
You can maintain alternate material for BOM Component by specifying Alternate Item group as below;
Go to CS03/CS02--> Items-> Select Component and go to details->Basic Data Tab--> General Data
Pls. find more details about Alternate Item group maintainance as below:
Alternative item: group
Consolidation of alternative items within a BOM. Every material in the assembly can be included in the alternative item group.
Use
As soon as you enter an alternative item group, you see an additional dialog box with the following data: ranking order, strategy, usage probability.
You can maintain alternative items in the following situations:
Alternative positions with specific usage probability
These alternative items are incorporated with a specific usage probability. Enter the usage probability for each alternative item in the group, so that:
dependent requirements are determined in requirements planning
dependent requirements are changed to a reservation in the production order
Alternative positions as information
You can enter an alternative item for information purposes. This item would then, for example, only be taken into account in situations involving missing parts.
As there should be neither dependent requirements nor a reservation for this item, enter no usage probability.
Procedure
Enter the same character string to denote the alternative items of an alternative item group.
Enter the same strategy for all alternative items in the alternative item group.
Dependencies
Alternative items are valuated in the following way:
Dependent requirements determination
Requirements planning determines the dependent requirements according to the usage probabilities that have been entered.
If the usage probability is 0%, then no procurement is planned for the item. For information purposes, however, dependent requirements with 0 as quantity are created.
Withdrawal posting
You can control the withdrawal posting for the resevation in the production order in the following way:
Withdrawal according to usage probability (manual change is possible)
Withdrawal if there is 100% availability
(Check ranking order and strategy)
Example: See Strategy for alternative position
Further you can also maintain alternate material if you want to stop using this material at certain time as below:
In material master of the material ,
Go to MRP-4 View----> Under Discongtinued parts specify
Discontinuation Indicator
Eff-out.
Follow-up matl
So system will automatically consider follow up material in BOM as per the settings you have maintained for the material to be replaced.
Hope this helps.
Regards,
Tejas

MRP RUN- KIT BOM explosion not working

We setup one layer BOM’s for our maintenance KITs as parent material and components as child material. For example KIT is TS10000-K1 and components are TS10001, TS10002 etc setup as next layer with in the BOM. Both KITS and components are defined as material types ERSA (Spare parts). These one layers BOMs are setup as production BOMs and expected to create purchase requisitions for KITS and components by exploding BOMs during MRP runs. We use purchase requisitions and convert them into POs to procure both KITS and components. We DO NOT USE Panned orders and Production orders.
The safety stocks / reorder point are considered as demand for KITS and components as we do not have any external demand for KITS and components.
MRP run is creating purchase requisitions automatically for both KITS and components as per safety stocks and reorder point defined in MRP Views of Material Master. This is working as expected.
The issue is: KIT BOM’s are not exploding to generate purchase requisitions for the dependent components of KIT BOM. Please suggest the way to resolve this issue.
Split valuation: Also we plan to use split valued KITS with both new and refurbished. So we need BOM explosion for split valued KITS
also (after the 1st issue is resolved).
I verified the following items to make sure the required configuration and data setup is defined correctly.
1) Planning file activated Plant - OMDU
2) Executed MRP run with Total Planning - MDBT and MD02 (single item, multiple levels)
3) BOM explosion for MRP activated- OS23
4) MRP type in MRP1 view- PD and VB (I tried both separately but BOM is not exploding).
5) Procurement type “F” (MRP 2 view) and lot size “EX”
6) Planning strategy in MRP 3 view (tested w/o planning strategy and with strategies 10 and 40. But BOM is not exploded)
7) BOM status and usage (status is active and usage is for production-CS02 and OS20)
8) BOM Validity date (Valid)
9) BOM structure in CS12 (BOM is exploding in CS11)
10) Availability check
11) Selection of BON ID to have BOM usage indicator assign (OS31).
12) No alternate BOMs or production versions or work scheduling view are used.
Please review the above 2 issues and suggest any workable solution. Thanks in advance!
NOTE: I extensively used MRP with multi-level BOM explosion in my earlier projects without any issue. However the above issue is a bit strange why one layer BOM is not exploded in this case.
Regards
Srini

Hi
Thanks for your response. I reviewed all SAP notes and none of them are applicable to my scenario.
1808396 - BOM changes not considered by MRP: I have not changed BOMs.
1781324 - MD11: Valid BOM alternative is not found. We do not have alternative BOMs.
1791009 - No BOM explosion after changing production version: We am not using production versions.
Our Material KITS are PM spare assemblies set up as BOMs and consists of individual spare parts as components. We are creating purchase requisitions and not planned orders. We are not using PP functionality/Production orders.
MRP is generating purchase requisitions for KITS and components as per ROP and safety stocks. In other words it is working as expected. The issue is BOMs which are parent assemblies are not exploding to the next lower level components.
Please note that I am not getting any error messages when MRP is executed.
Regards
Srini.

MRP/RDA/ME59/BOM

Hi guys,
I have two great questions to ask you:
1- I have run MRP that has created a Purchase Request with item category 'L' and so with bill of materials.
Then I created a Purchase order with tr.ME59 but this PO has not taken the components from PR and so, after I entered the good receipt with MIGO, the components have not been downloaded from storage of the vendor !! Now it has been already registered the invoice and the delivery and I don't know how can I delete the reservations of this components..!!!
In your opinion what is it happened?But first of all how can I delete the append reservations of that components,perhaps by a tr.MB11, mov.type 261 or 543 and special stock K,is it right?
2 - When I run the table RESB and I enter the material code(component) I DON'T see the purchase requisition code but for me it is necessary to see the PR code..I have verified in others customer systems and the RESB registers the PR code..Must I set something in the customizing or something when I convert the PR by ME59?
Thanks in advance to all,it is important for me to have right answers, I will regards suddenly with 10 points.Bye
Maximilian

Hello Abhik,
You have more options. You can use:
- lot size (defined in BOM header)
- production version (several option you have: lot size, manually assign a PV to a planned order) - it was mentioned by you
- you can use explosion date (OPPP, Logistcs > Production > MRP > Master Data > BOM by date)
MRP 4 (in material master) > 'BOM explosion/dependent requirement' tab > you can set selection method according to your wish.
Details:
http://help.sap.com/saphelp_46c/helpdata/en/f4/7d2b1144af11d182b40000e829fbfe/frameset.htm
BR
Csaba

Alternate BOMs and Purchase Requisitions

Hi
The scenario is that the material M1 has two alternate BOMs. These two alternate BOMs(A1 & A2) are specific to two different vendors(V1 & V2). During the planned order conversion to a Purchase Requisition, the business needs to decide/assign the vendor based on the component material availability as per the BOM. We creatred production versions(P1 & P2 ) for A1 & A2 and and assigned them to the respective PIRs.
(1) M1>P1>A1>PIR1>V1
(2) M1>P2>A2>PIR2>V2.
When the user picks vendor V2 at the pur req., the system defualts to the A1 BOM but NOT to A2 BOM. However, on converting the pur req to a PO, the BOM picked up is A2.
The question is, the release strategy id defined at the pur req level and not at the PO level (business decision), the person who releases the pur req does not know if A2 BOM is assigned to it or not. Is there a way to show that the A2 bom is picked up at the pur req level?
thanks
BE.
Edited by: Brian Elfie on Jan 23, 2008 7:45 PM

Hi,
For BOM selection, system will check BOM selection method in material master of MRP4 view.
BOM selection by Lot size, Date, Production version & Only by prod version.
Addition to that BOM selection by Selection ID defined in plant parameter. This selection ID consists of BOM priority & Usage.
Manually you can not control BOM selection.
For routing selection, system will check Lot size. If lot size not matched with required qty, system avoid the lot size & consider the date.
In addition to that system will consider Task list type, priority, Usage & Status.
In Order type dependent parameter(OPL8), you can configure whether system should select routing automatically or manually.
Regards,
Dharma

Production order for alternate BOM and Routing

Hi All,
In my business(Discrete) scenario I have alternate bom and routing has group counters. some times i should use first BOM and First group counter. Then next Bom and next group counter. But lotsize is same( prodcution version how to assign).
When creating production order i should select which ever i need.
Regards,
S.Suresh.

> In my business(Discrete) scenario I have alternate bom and routing has group counters. some times i should use first BOM and First group counter. Then next Bom and next group counter. But lotsize is same( prodcution version how to assign).
>
> When creating production order i should select which ever i need.
>
Hi,
For your requirement you can define your Order Type Dependent parameters OPL8 as:
Production Version : 1 Manual Selection of production Version.
In this case every time when you creat your Production order System will ask for the Production version to be selected. You need to select the PV manually then only you can proceed further.
This setting is applicable only when the Production Order is Created.
It will not effect the Planned Oredr creation via. MRP Run..
Hope this helps..
Regards,
Siva

Concept of Alternate BOM in Process Order.

Hi,
We are having Process order Scenario & we watn following options.
1.       Having 2-3 BOM of the same FERT/HALB with alternate Raw Materials.
2.       Selection of Specific BOM for Process Order depending on the Availability / Requirement.
3.       Creating Issue Slip / Reservation for the Specific BOM.
4.       Issuing Material accordingly.
5.       Booking consumption accordingly.
Thanks in advance.
DON

Dear
Please find below the answers of your question ;
1.Having 2-3 BOM of the same FERT/HALB with alternate Raw Materials. ; Goto CS01-Enter Plant-Enter Material -Enter Usage and List down all the items in frist Alternative .Again to create Alternative 2 and so on , you need to go CS02 with same menu path -System will automatically take the Alternative 2 or you can copy Alternative 1 if you have similar items with additional new items..
2. Selection of Specific BOM for Process Order depending on the Availability / Requirement ; As far as MRP is concern , BOM selection and explosion of BOM for depdent , needs to have BOM Selection methods Blank , 1,2,3 in MRP4 view .If you have maintained Producton version with all those aternative with proper validity and lot size , then MRP will explode as per lot size and valididrt depeding on the order qty or you can also create demand MD61 with Production Version based on the avalabity of BOM [MD61-Enter User parametes -Scheculie Tab -Goto Settings-Production Version -Enter PV with spefic BOM based on availablity ]   and then run MRP in MD02-NETCH ,3,1,1,3,2 .Howver , you can also select this production version manually while creation of Process order based on the Order Type Depent Parameters in OPL8-Select Process Order Type-Goto Detals-Here Master data tab -Select Production Version -Keep it 1-Manula Selection .Remember , as sequence , MRP will select the frist PV listes in MRP4 view of Material master if it does not find proper lot size and validity.
3.Creating Issue Slip / Reservation for the Specific BOM. ; Generally , MMD/Store will be given Reservation Number and they will chekc in MB51 for open reservation for Goods Issue and carry out MIGO-261.Frosm Shop Fllor you can try Pick List or you can print Process Order Print out in COP1 or MD4C print out also .Otherwise develope customs Forms as per the information permissible from you business to store .
4. Issuing Material accordingly.; It will happen in MIGO-261 or automatcally based on Backflkashing in MRP2 view -Always back flash so that at the confirmation time in co15/c011 , you can automatically goods issue the material .
5.Booking consumption accordingly ; It is Process Order Cycle from Releasing of Process order to till Goos Recipt of Process Order in MIGO-101.You can also use Auto GR based on the Control Key set up in Master Recipe which triggers the Auto GR.
Regards
JH

MRP Planning

Hi,
We have an issue where the part created the purchase requistion and gets rescheduled daily and thus the Release date in the purchase requistion gets Changed daily.As of result of which, the PR is not falling within a varint which is used to convert PR into PO.
Part is not used in any BOM and there are no open orders or sales orders for this part. MRP considered this part and created a PR as the safety stock has been consumed. Now whenever MRP runs(MRP runs daily), the requirement date gets Changed automatically, though there is no entry observed in planning file.Backward scheduling is applied in this case.
Your thoughts on this issue is appreciated!
MRP type for the part is PD - MRP
Safety stock is in negative
Planning mode 1 - Adapt Planning data (Normal) in MD03.
Planning file entry - no MRP planning type is checked
let me know if I am missing anything!
Thanks

Hello
On the tab "Quantities/dates" you should check the flag "Fixed ID" so that MRP won't change the requisition anymore.
BR
Caetano

SUB CONTRACTING PO FOR MATERIAL HAVING ALTERNATE BOM

Hi,
we are having following scenario for subcontracting process.
FIN1 material can be produced either from RAW1 or RAW2.
In PO for FIN1, in BOM assignment , BOM for FIN1 with RAW2 as sub component is assigned. But when thay want to make FIN1 from RAW1, system allows to issue RAW1 to subcontractor as it is maintained as subcomponent in alternate BOM of FIN1(not in PO) but while doing GR it gives message of " DEFICIT OF STOCK W. VENDOR UNR. 10 EA : RAW2 1000 O"
I thot that this msg is arrising as component RAW2 is not provided to vendor ( as it is maintained in PO a subcomponent for FIN1). So what I did , I added another item as FIN1 in same PO with sub component as RAW1, and then carried out the process, so it worked. But this makes confussion to user as there are severel items in PO, and to judge against which item he will hav to make GR.
So my question is, is there any setting or scenario in SAP to solve this issue?
Regards

1. You will definitely create two subcontracting info records for two raw materials say RAW1 and RAW2.
2. There will be two seperate production versions for these two materials.
3. Update respective production versions in respective subcontracting info-records.
4. This will help to upload the alternate BOM even you changed the material from PO
Amol

MRP Plan - Alternate BOM vs Substitute Component

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