Subcontracting in PP/APO - Fabless

Hi SAP Gurus,
I am supporting Semiconductor client. So far we have been doing some of the production activities inhouse and some of them were subcontracted. Now we are planning to move to complete subcontracting and doing nothing at the plant location. they call it fabless methodology.
In such a scenario, please advise on what are all the challenges we may face and methodology to apply for modules like APO and PP-PI.
As and when clear cut business requirements are laid out, i may want to reach out to you all on this.
Please share your thougths.
Thanks.
Jagadeesh

Hi,
Here are my thoughts,
1. You can use PPDS or SNP subcontracting process, if you want to plan the production at Subcontractor location. By using PPDS or SNP, the capacity constraints at the vendor locations can also be planned. For further details, refer the below link.
http://help.sap.com/saphelp_scm50/helpdata/EN/68/f3593b0972fa72e10000000a11402f/frameset.htm
2. If you want to include negotiations in the purchase order, and to track the material consumption/ production, In-transit, ASN- then Work order collaboration scenario with SNC is the best option.
http://help.sap.com/saphelp_scm50/helpdata/en/43/0bdaf1fe6a21ace10000000a1553f6/frameset.htm
Regards,
Manimaran M.

Similar Messages

Subcontracting process in APO

Hi All,
I am trying to create a typical subconracting process in APO as in R/3.
Questions:
1-Do I have to create a resource in R/3?
2-Do I have to create a routing in R/3?
3-Do I have to create a subcontracting location except vendor location?
4-How should I transfer bom and routing, as PDS or BOM?
I created bom, routing, production version. I transfer it to APO. I receive no error but I do not see PDS in APO. Can anyone please help?
Thanks,
E

Not sure if you are asking in PPDS or SNP context.
The procedures are slightly different
http://help.sap.com/saphelp_scm41/helpdata/en/f7/626f39ff1ee32ce10000000a114084/frameset.htm
You always have a choice to create master data like PPM in APO instead of specifically creating in R/3 and CIFing to APO. PDS however would need to be created in R/3 and CIFed to APO.
Important points:
1. Have to create a Subcontracting Purchase Inforecord that will create a TLane on cifing PIR. So PIR needs to be in an active integration model
2. Have the Subcontracting Vendor in an active integration model
3. Have the plant and material in active integration models
4. If you take PDS route, have the PDS in active integration model. If you take PPM route, you have a choice of creating it in APO/R3.

Subcontracting in APO scm 4.1

We are trying to plan subcontracting items in APO but when the requisition is created by APO the item category "L" is not inserted automatically. Are there additional settings to be made?

The master data in R/3 is correct. When we change the items to PD and generate the requisitions in R/3 the item category is automatically inserted. The only difference is when we change the item to X0 the requisition generated by APO does not have the item category for subcontracting. Even after the requisition is transfered to R/3 and the item category is inserted, we cannot process the goods issue of the material to the subcontractor and we cannot receipt the new item. The reservation for the item is not found. However the process works when the material is planned by MRP. We currently run a heuristic.

Upgrade APO 3.0 to SCM 5.0 SR2 (requirements in source system)

Hello!:
We want to do and upgrade upgrade APO 3.0 to SCM 5.0 SR2
And we have seen the Guides SCM5.0 SR2 and SCM5.0 SR3, but appears info in the page 26 only about check the software requirements from APO 3.0 to SR3, but we want to check the information about APO3.0 to SR2.
Regards,
Alfredo.

Alfredo,
This is not a easy question, since you are several releases behind on APO. I have done upgrade from APO 3.0 to SCM 4.1 and then subsequently to 5.0 so there were lots of learnings specific to the Projects and develoments. The Setup being different in different industries and companies, there is no one answer to this question. Try the following ...
- Read the Release Notes of SCM 3.1, 4.0, 4.1, 5.0. You will see a Host of New Functionalities - Newer in SNP, PPDS, TPVS, Master Data (PDS along with PPMs).
I do not know what functionality you are live with in APO 3.0.
On the Existing Setup that you may find changed, I remember the following big changes ...
- GUI Changes are galore in master data, less
- SNP Side - Changes in TLB Engine & TLB Prioritization.
                 - Deployment Split Functionality
                 - Changes in User Exits (old code would not work). You will find this painfull if you've implemented User Exits. eg : If you were determining OrderTypes in orders sent from APO to R3. TLB User Exits. Lesser changes in Masterdata userexits.
                  - Newer fields in Master Data (eg : SNP Checking Horizon in Product Master and it's implications on Deployment & TLB. ).
                 - Subcontracting Planning in APO.
- Enhancements in VMI.
- Use of Parallel Processing for all Modules planning.
- Enhancements in Aggregated Planning
- Enhancements in Product Interchangeability.
- Several Newer Functionalities like ICH to make/replace the earlier Collaborative Planning better.
- Master Data several changes (eg : PDS)
- Several improvements in CoreInterface Function and Que Issues. In 4.0 onwards there is new functionality around CIF Postprocessing
- Use of Process Chains to streamline Batch Jobs and especially BI Loads into Cubes and Planning Areas.
- Several enhancements in PPDS (newer heuristics), Alerts
- BW underwent a Major change from BW 2.0 to BW 3.0 to now BI 7.0 which impacts Setup for Demand Planning. eg : The InfoCube got renamed to InfoProviders.
I suggest you start with the Release Notes. Form a List of your Test Scenarios, then Upgrade in your Development and start to Test. Don't plan less, but more time for testing since you are undergoing a several releases change. First start to get your Existing Business Scenarios documented as Test Scripts in Order.
I STRONGLY recommend doing a Technical Upgrade Only (i.e : do not upgrade Major Functionality unless there is no other way). In Summary for SURE SCM 5.0 is a Much better and Stable System than APO 3.0.
Hope this helps. Reward Points If you find it usefull.
Regards,
Ambrish Mathur

Subcontractor stock

I have stock provided to vendor of material in r/3 for the plant .But this stock is getting displayed in the stock (as subcontracting category) in apo.
This stock has supposed to be get reduced in apo from that plant location as per the logic.
I checked the intregation model for stock which is active.
May i know reason ?
Regards,
Sunil

Hi Sunil,
Check on the following lines.
1) Run delta report and check any inconsistencies for stock
2) Check for any stock queues or sysfails
3) Also run om17 if required
Please let me know your observations.
Regards
R. Senthil Mareeswaran.

Subcontracting Purchase Order from ECC sent to APO creates a Plnd Order

Subcontracting Purchase Order from ECC sent to APO creates a Plnd Order with the same Purchase Order# in APO.
We want to influence the source of supply for this internally APO created planned order.
For this, I would like to know what user exit can be used, I have already looked at
(1) BADI: SOURCE DETERMINATION
(2) CIF INBOUND EXTERNAL PROCUREMENT on APO side.
Any other user exits or has someone worked on this scenario.
Thanks
Kumar

sources of supply for planned orders can be changed with the following BADI method:
Definition name /SAPAPO/RRP_SRC_EXIT
method RRP_USEX_SOURCE_FILTER

How can I send multiple subcon PPMs to APO since one PV must be in the PIR?

We often have two or three production versions for a single subcontracting material. For example, PV 01-1 from now until June, then PV 02-1 from June until November. To create the PPM in APO via CFM1/CFM2 we must have one PV in the subcontracing PIR. This means we can only send the currently active PV 01-1 to APO and we can not plan with 02-1 in the future! I know I can manually create this in APO or I can temporarily change the PIR, send the PPM, and then change the PIR back but I would like an automatic process for this.
Why can't I leave the PV blank in the PIR and that would mean to send ALL PPMs? This is essentially how R/3 planning works... if you leave the PV blank in the PIR it will automatically choose the PV with the correct date ranges.
I'm sure many people have had this issue but SAP offers no solution. Does anyone know of a user exit or have any ideas on how to resolve this?
Thanks,
Eric Strehlow

Hi Vinodkumar,
You have desribed the way that I run my process. However, for subcontracting we must also put the PV into the PIR or the PPM creation will have no link from PV to Vendor and therefore it will not create a PPM.
In R/3 planning, we leave the PV blank in the PIR so the system will automatically choose the correct PV based on the validity dates. I would like to leave the PV blank in the PIR and have APO create PPMs for all Vendors that this material is extended to for each PV. But as far as I know this is not possible. Then APO planning can choose the correct PPM based on validity dates.
Thanks,
Eric

Item category determination during Purchase Requisition creation from APO

Im creating a SNP Purchase Requisition in APO and when it is published to R/3, a Purchase Requisition document is created in R/3.
When this PR is created in R/3, I want the Item Category to be determined based on the Material master Special Procurement Type. ( eg: Id like the Item category to be L if the Material master Special Procurement Type = 30 (Subcontracting) ). But by standard, this field is coming as Blank and this field could only be populated during the creation from APO.
I found a user exit ( CIFPUR02 : Enhancement of Purchase Order Interface (Inbound) ) on R/3 where I tried to populate the Item Category, but when I do this, all the purchase order related data is getting deleted and hence no PRs are getting created in R/3.
Could anyone please tell me if this could be resolved using configuration and if not any tips to do this technically would be very helpful.
Thanks,
Harsha

Hi Karun,
This is the code i'm using...
select single * from marc into lit_marc
where matnr = c_eban-matnr
and    werks = c_eban-werks.
append lit_marc.
read table lit_marc with key matnr = c_eban-matnr
                             werks = c_eban-werks
                             sobsl = 30.
if sy-subrc = 0.
c_eban-pstyp = '3'.
endif.
Here sobsl = 30 is the Special procurement type
But when i try to populate c_eban-pstyp = '3', during the creation of Purchase Requisitions in R/3, in the program SAPLEMPI -> LMEPIF01
this condition is encountered which deletes all the data in the tables that is used to create Purchase requisitions.
<i>* get rsnum in the case of subcontracting
      IF XEBAN-PSTYP EQ PSTYP-LOHN AND                      "RB240999
         EXITFLAG_ORDID IS INITIAL.                         "RB240999
refresh all component tables
        CALL FUNCTION 'ME_COMPONENTS_REFRESH'
             EXCEPTIONS
                  OTHERS = 1.</i>
Could you please suggest me anything to get around this.
Thanks,
Harsha

Special procurement Key in APO

How do I define in APO the special procurement key relationships between plants within the company or consignment/ subcontracting, just want to maintain the same relationship as in R/3. I know you answered about special procurement type U: stock transfer which I got it, could you please explain how I maintain the above Sp. procurement keys in APO.
Thanks Mono
Harish's reply:
As far as i know you cant maintain Spl procurement keys in APO. This is used as an indicator in the material master for CIF and for creation of Transportation lanes in APO. So if you create manually more transportation lanes in APO to other source locations it will all be considered as sources of supply unlike in R3.

Hi Mono
Are you planning to run MRP in R3 and also plan in APO for the same materials. Depending on the sequence one of the runs is wasted
you normally plan selected materials in APO and the rest in R3
You can use the X0 in product master for APO relevant indicator and CIF only these materials to APO and plan it here
as for the spl procurement keys
If you have a special producrement key in R3 the Transportation lanes are created automatically with the correct source of supply or you can ensure you manually create this(and block or delete the others) so the planning will be the same as it would be in R3

Third-party scenario in APO

Hi expert,
Has some of you manage a third-party scenario in APO?
We have some products that are direcly delivered using a third-party sales order from our vendor, while the same product for another customer is delivered from our stock in our distribution.
Do you have some information? Could you please share your experiencies?
Thanks,
Raü

Hi,
The problem is that we are not "subcontracting" and we are not providing any component to the vendor.
We are selling a product that we are not producing at all (just buying it to an external vendor). So that, this product has Procurement Type = "F" in our location.
Imagine we have a vendor in "Holland" that is producing the finish good. And we are selling that product to two customers (one in Italy and the other in Belgium). All requirements for the italian customer are delivered to our distribution center in Italy, and Sales Orders to that customers are delivering the stock place on that distribution center. For the Belgium requirements there is need to send the stock to our warehouse (Italy) in order to send it later to Belgium
In that case our company has an agreement with the vendor, so that the keep the stock for the Belgium needs (we are not the owners of that stock), and then we create Third-Party Sales Orders.
If you have any experience in such a kind of scenario I would appreciate.
Regards,
Raü

Stock transfer are not showing correct expire date for Shelf life subcontracting

Hi Gurus,
We have shelf life active for PPDS. We had added 5 characteristic to have min and Max shelf life in APO so that data will be considered during pegging.
Self life works perfectly fine for production plant where based on manufacture date min shelf life is considered.
LOBM_APO_SL_MIN
LOBM_APO_SL_MAX
LOBM_APO_SL_UTC
LOBM_VERAB
LOBM_HSDAT
Question is for sub contracting process stock or inventory date is giving back dated where when we run planning run stock is getting expired.
Can any one help in getting stock correct expire date instead of 1982---- some thing like this.
Thanks in advance
Thanks & Regards,
Rajesh Kumar

When you plan subcontracting in SNP following is generated.
Object                             Source                                   Destination
Sub Con PR (Header)       Sub contractor                       Plant
PR/STR (Child)                Plant                                     Subcontractor
PR (Child)                       Child Mat Vendor                    Plant (or direct to Sub Contractor)
Usually first and third items will get converted to Purchase orders and will vanish as and when Goods Receipts are posted against them.
The second order may not get converted in SAP. Tis will remain in the system. But in the next planning run, these will be deleted if the quantities have been already fulfilled.
Regards
Nitin Thatte

SOP process in APO

Hi Experts,
We are planning to execute SOP process in APO (12 months), Could you please suggest how to setup Planning area Key figures for SOP (SAP has not complete development for SNP01 planning area)
Example: we have Consensus forecast key figure In DP and then release to SNP (Using copy of SNP02 planning area, all key figures are order series)
Which key figure we need to send back to DP from SNP for comparison for constrained forecast plan?
How to setup Key figure from order series to time series from SNP planning area (all key figures in SNP02 is order series?
Please suggest me.
Thanks&Regards
Krishna.

Not sure if you are asking in PPDS or SNP context.
The procedures are slightly different
http://help.sap.com/saphelp_scm41/helpdata/en/f7/626f39ff1ee32ce10000000a114084/frameset.htm
You always have a choice to create master data like PPM in APO instead of specifically creating in R/3 and CIFing to APO. PDS however would need to be created in R/3 and CIFed to APO.
Important points:
1. Have to create a Subcontracting Purchase Inforecord that will create a TLane on cifing PIR. So PIR needs to be in an active integration model
2. Have the Subcontracting Vendor in an active integration model
3. Have the plant and material in active integration models
4. If you take PDS route, have the PDS in active integration model. If you take PPM route, you have a choice of creating it in APO/R3.

Subcontract MRP Area with quota usage - urgent

We have a subcontractor supplying assembly X which in turn require us to supply component Y to the subcontractor. We have two vendor for supplying component Y to subcontractor. Scheduling agreement with component vendors are set up for direct delivery to subcontractor. Both the scheduling agreements are included in the source list with MRP indicator 2. Quota arrangement is set up for the component.
We have set subcontractor MRP area and assigned the same to component Y material master. Special procurement key 20 is assigned in subcontractor MRP area. Quota usage and source list are duly enabled. Quota usage indicator is 3 which provides for MRP, PR, schedule line etc.,
When we run MRP ffor component Y for subcontract MRP area, system is generating schedule line for but without update quota file. Further, the scheduling agreement picked up is not of the correct vendor as per Quota logic.
Does SAP support quota usage with subcontract MRP area. If not, is there a work around.
Shall appreciate urgent response

Dear Ravi,
you will get a seperate location product for your material. MRP areas in apo are represented by a seperate location (type 1007 = storage location mrp area). You can transfer your ecc mrp areas via cif (CFM1). The master data you maintain in mrp section of the material master in R/3 will be trasfered to that location product. Furthermore you can maintain it manually in apo MAT1 (location = name of your mrp area). That technique provides you the possibility to maintain different parameters for the plant and the mrp area.
Kind regards,
Christian

PPDS Subcontracting Process

Hello Experts,
I am trying to replicate the subcontracting process through PP/DS run.
Business case: Handover the components from the destination location (DEST) to the subcontracting vendor (SUBV) to manufacture the finished goods. There is absolutely no operation that we do related to this. Subcontracting vendor provides us back the finished goods and we sell it.
Steps I followed:
1. For the finished goods product, I have created the BOM which includes the components which we handover to subcontracting vendor.
2. I have defined the finished goods product as procurement type X and Special Procurement key as 30 (Subcontracting)
3. The PDS is created. With production line as Subcontracted workcenter. Routing set up as N.
4. On the APO system, I have created a handling resource and assigned to model 000 and then assigned this Inbound handling resource for the location DEST. Please note that SUBV is not part of our supply chain, we are planning without source location.
5. Inforecord is created as a subcontracting inforecord and Production version is assigned at this Inforecord.
6. SUBV is CIFfed, Part is CIFfed, PDS is CIFfed, Subcontracting Inforecord is CIFfed and it created the transportation lane as well and default means of transport is assigned (and not product specific means of transport). Also there is no transportation resource assigned to this means of Transport.
7. Now when I ran the PP/DS Heuristics, it creates a Planned order. At this point, there is no subcontracting purchase req or order created on ERP system. And we don't CIF the planned order as well to ERP.
8. Now I trigger the convert planned order to production order manually by setting the conversion indicator. At this moment, a production order of type PP01 is created on ERP system. And this production order is also visible on APO system.
But the issue is still there is no Subcontracting purchase requisition or Subcontracting purchase order created in the ERP system. Is there something else like a basic settings which I am basically missing? Or is there anything wrong in my steps?
Thanks,
Suresh

Hi Shankar,
Yup, I can see the PDS. And regarding the second point, planned order is created as Inhouse. And it doesn't choose the subcontracting PReqs. I see the following error message, if I try to change the source of supply as Externally procured. I have maintained the Inbound Handling resource on DEST location. But I haven't maintained any transportation resource. Is there anything I am doing wrong?
Subcontracting PurchReq from location SUBV to loation DEST not created
Message no. /SAPAPO/RRP156
Diagnosis
The following causes are possible:
No handling resource has been specified in one of the locations involved.
No transportation resource has been specified in the transportation lane between the locations.
These resources must be available for subcontracting since the system executes detailed scheduling for the relevant orders on the basis of the resource calendar. (The relevant orders are a purchase requisition in your own location and a planned order at the subcontractor's location. The orders are linked by a cross-order relationship.)
System Response
The system cannot create the subcontracting purchase requisition.
Procedure
Enter the resources required in the location or in the transportation lane.
Thanks,
Suresh

Customer, Vendor transfer to APO

Hi,
When we are working with non-VMI scenarios, do we need to CIF customers and vendors to APO? Somebody said we need to transfer customers to APO only in VMI scenario. is this correct? What about vendors?
THanks.

Depends on your scope in APO
If you are doing scenarios where you need vendors(as in subcontracting)
or if you have VMI or even larger customers with whom you expect to share plans with collaborative planning .... you would want to CIF them to APO
Customers and Vendors are created as locations in APO with different location types

Subcontracting in PP/APO - Fabless

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