Variance due to Two Production Versions

Dear Experts,
I am working for a cement Industry. We are having one FG Material. The material can be produced from two sources (Kinl1 & Kiln2).
Every month we produce the material from both the sources. 2 production orders will be created every month one for Kiln1 & another for Kiln2.
Standard cost estimate has been run for production version 1 (ie. Kiln1).
When activites are booked in production order 2 (i.e Kiln2) a huge variance is comming after settlement. Reason is
at the time of booking the activites its taking the activity price of Kiln1 and at the time of settlement its settling against kiln2 activity price due to which a huge variance is happening.
Kindly guide on how to resolve the situation since creating differenet material for kiln1&kiln2 is not feasible.
Thanks

Hi,
I think there is no problem in system behaviour. If you have two alternative production methods for a single product and one is cheaper than the other, you will eventually have to deal with and explain the variance. If some of the time you produce with high activity prices, I suppose you have your own justifications regarding this choice such as capacity constraints and delivery schedules. Suppose if you run cost calculation with a third production version (maybe with a third dummy source) which is in the middle of the two versions form cost perspective, you may lower the variance of second alternative with respect to standart cost, however difference of the actual costs of the two alternatives will not change. To summarize, if your data is correct (activity prices etc.) either try to produce with the cheaper version or document your justifications well.
Regards.

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Subcontracting and two Production Versions

Dear Friends,
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Subcontractor: V1,
Distribution Center: DC1,
Components: comp1 and comp2,
I have maintained two production versions for P1 with different BOMs:
Production Version 1 with comp1 is valid from past to 31.08.2008;
Production Version 2 with comp2 is valid from 01.09.2008 to far in the future.
In order to create PDS for product on subcontractor, I have to create subcontracting purchase info record for P1, V1, DC1. However, I found I could only create one info record with connection to one production version.
Does anybody know how to solve this? Or if you have any suggestion for better setup?
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Hi,
up to SCM 5.0 it is only possible to have one production version for subcontracting for each vendor.
With SCM 5.1 you also can have one than one.
So today the only solution is to use subcontracting PDS and have different validity dates for the components as already suggested.
Regards.
Hubert

MRP with selected production version

Dear PP experts,
I have two production version
Prod. Version      From lot        To lot size        Base Qty.
   1001                      1                   100                100 Kg.
   1002                      101             9999999          400 Kg.
The batch size mentioned in the material masters are Mimimum lot size 100 Kg. and Maximum lot size as 400 Kg.
I have entered PIR in MD61 for the material for 350 Kg. Since I need planned orders selectively of 100 Kg. in MD61 I have maintained in schedule lines tab production version as 1001.
After running MD41 system creates planned orders with the production version, but the batch size is not as per the production version.
Pl. let me know what needs to be done.
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Prashant

Hi Watson,
I can see some conflicts in your Master Data settings.
First of all you have set your Lot size ranges in Material Master Data from 100 to 400 Kg.
And your Production Versions (1001) set lot size range is 1 to 100 Kg.Which may creates conflicts.
Now your require qty is 350 kg.So as per your lot size restriction set in Material Master will force system to create one planning proposal of 350kg.I can guess you get one plan order of 350kg but due to selection made in (MD61) selected prod. version is 1001 instead of 1002.Which is again wrong
Now to make the things correct you can have below options,
1) change Lot size restriction to 1 to 100 in Material Master.So you wil get 3 Plan orders of 100 Kg and 1 of 50 kg.
or
2) Instead of changing Lot size in Material Master, use quota arrangement (MEQ1).For this you have to first activate Quota arrangement in MRP 2 view of Material Master.Then go to MEQ1 and create quota for the specified period.Here you can restrict lot size at production version level.
Regards,
Dhaval

Production version deletion

hi,
i have two production versions for material A, there is no open orders for this material. i am unable to delete production version 001 because its used in costing qty structure. but i amable to delete productioversion 002. we are using order based costing.. please help me delete production version which is used in costing qty structure....

HI,
Follow the below steps as Prerequisites before deleting the production version for a mterial :
1. You must settle the product cost collector you created for the production version.
2. No open planned orders exist in the system which are assigned to this production version.
3. Check that there is no wip exists on the production line if REM mfg strategy and No production order in WIP if DIscrete Mfg.
4. No open inspection lots are avl for the material with that PV.
5.For the period in which the last reporting point backflush was carried out and for all previous periods in which the run schedule header or the production version is valid.
the cutoff period is set for the WIP calculation
the cutoff period is set for the variance calculation (operation KVAR)
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radhak mk

Different fix lot size depending on the production version

Hi all,
I have the next scenario:
2 production versions. 2 different fix lot size por each. So:
Prod Version 1 - Fix lot size 200
Prod Version 2 - Fix lot size 300
I created the Quota Arrangement just to make SAP to take my favourite version. And trought the quota, I can define the lot size for each version. BUT.
If I change the version in the order or in the planned order, the quantity don't change.
So: How can I manage 2 different fix lot size for 2 different product versions? If I change the version once the order is created, how can I do the system change de quantity to the right one?
Thanks in advante
<< Please do not offer points >>
Edited by: Rob Burbank on Oct 1, 2010 2:53 PM

I have n't tried this scenario,
This is my Idea
Create a two production version
for ex: lot size 100 to 1000, set the rounding profile qty as 1000
for lot size 1001 to 99999, set the lot rounding profile value to 5000
BY this way u can get the two lot based on the rounding profie
Expert; please correct if i am wrong
Edited by: Sundaresan . E. V on Oct 1, 2010 4:12 PM

Selecting production version in MRP run

Hi dudes,
our client is having reuirement is he will select the production version irrespective of lot size, but he select the production version at the time of manual creation of process order where it depends on resource(work center used in recipe of particular production version, BOM will be 1 alternative only.
now while running MRP how to make system to allow manual selection of production version at the time of converting planned order to processs order.
respond asap plz...
Daniel.

Hi ,
During MRP, system will select the production version based on Validity date & Lot size.
If a material contains two production versions with same validity date & Lot size qty , system will select the First valid PV by default (unless it is locked) & will copy to planned order.
When u convert the planned order to production order,default PV will be copied automatically from planned order. Here u cannot select PV manually.
Settings:
Create valid production version with lot size and Valid routing , BOM at MRP view of Planning material.
Assign the selection method = 2 or 3 at MRP view of Planning Material
Regards,
Anand.

How to select the production versions for MTO?

Hi PP Experts,
In our scenario we have two production versions and also we are in MTO strategy. While creating the sales order is there any option to select the production version (i.e.) before planning for that corresponding sales order I have to choose the production versions.
Example:
Material u2013 A -
sale order u2013 666001 u2013Prod version - 0001
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How to map the above scenario?
Thanks in advance.
Regards,
Vimal

In our scenario we have two production versions and also we are in MTO strategy. While creating the sales order is there any option to select the production version (i.e.) before planning for that corresponding sales order I have to choose the production versions.
If the Production version selection is based on Lot size means No problem.
If both the Production version is same lot size, system will select the first PV only in MRP
In STD SAP, we can't Give Production Version in sale order level,
If you want after MRP run , U can assign Production version in plan order or in production order Manually

Production version selection based on Process order type

Hi,
I have the following requirement.
A material is having two production version one is for R&D and one is for regular production. Now two process order types one for R&D and one for regular production. Now during creation of process order if we use order type of R&D then it has to select production version of R&D and if we use order type of regular productionthen it has to select production version of regular production. This selection has to be happened automatically. How this can be configured.
Thanks
Vinamrath.

Dear Kumar,
Assuming the production version selection is automatic in the order type dependent parameters,then during order creation this
can be automated only through validity date of the production version or else by locking the production version manually which
should not get picked or else only through different Lot Size.
Check and revert.
Regards
Mangalraj.S

Automatic selection production version in MFBF

Hello !
I have a material setted with Selection method = 2(Selection by production version) in Material Master, so, I have two production version: V001 & V002, the last one is locked for any usage.
I need automatic selection of production version in MFBF , but when I'm doing the confirmation the system show the screen of production version selection with two versions .
Do you know what is missing for automatic selection works ?
Thanks a lot.
Vero

Hi Vernoica ,
Good Day , PV will be selected based on the lot size and the creation dates.
It will copy the PV (BOM & Routing ) based on Lot size or Explosion date you defind in MRP-4 view i.e. BOM selection ,BY -explosion date,1-lot size,2- by PV and 3 by PV only.
If you would like to get rid the selection of PV,
why dont you try created a production version than only go to material master change screen MM02 in MRP4 view and Select 2 at selection method field.
In the IMG (OPLD) for Order Type Dependent Parameters, the production version selection is already set to manual selection. But the production version is always defaulted as version 1 which is the first one in the material master and is not asking to select the version at the time of converting the planned order to a production order!
You can also check settings in configue trans OPL8 to have routing selection set to automatic selection if you want to avoid placing routing versions in each individual material master. Just another way to look at it
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MRP Scheduling with a material with multiple production versions scrap rate

Greetings all.
I have a problem with MRP scheduling. How do you account for different loss rates or scrap rates on a material because of multiple versions of a material that are in production. For example, we have an item. There are two differen ways to make that item and both have different loss rates or scrap rates. How do we account for this. And whatt happens when you have these with multiple routings. Thanks.

Dear,
It can be handled in 3 ways.
1st way - Create 2 versions to represent 2 ways of production. Create a 3rd version name it as total and make it as a first version so that MRP will take this version for scheduling. In total version give the most correct scrap qty and timming in routing. Hence when you run MRP system will consider the total version, then change the varsion in planned order as per your requirement.
Second way - Create 2 version and if you are using Demand planning, in MD61 against the qty represent the version number so that when youn run MRP, the planned order will carry the version.
3rd way - Create 2 Production version and create a quota arrangement and assihgn these two Production version as Quota items and give the % share. Hence when youn run MRP system will share the demand qty into two different version as per Quiota arrangement(setting in MRP2 is necessary fir planning).
Please come back which one you are looking for so that we can give furthur information

Automactic Selection of production Version

Hi.
I have created a material "A"
I maintained in material master's MRP4 view selection method "2"
I have created two production version with same validity period & same lot size "0001" & "0002"
I maintained in order type dependent parameter's masterdata tab in production version column "Automatic production version selection"
Now when i am going to create a process order system is selection production version "0001".
But I want automatic selection of production version "0002".
What setting shall I do?
Regards
Vivek

Dear Vivek,
I maintained in order type dependent parameter's masterdata tab in production version column "Automatic production version selection"
In order type dependent parameters maintain as manual selection
Then system will raise an pop-up to select production version while creating prodiuction order
The above setting is only useful while creating manual production order
If you are converting plan order to production order then above setting will not play any role
System will default take 1st PV
All you can do is you can change manually in plan order
Or if you want system to take automatically in MRP then you need to lock 1st PV
Also refer my reply from this thread
[Alternative BOM selection|Using customer to determine what BOM to use in Production order (tx:CO41);
Regards
Madhu

Selection of production version

dear
I have scenario like below
have a BOM for Halb with BOM usage as 1Have another BOM for same material with usage as 3
So i created two production version...i have a common routing for both version
This particular halb is phantom item in bom level
No what i want to achive is that
1.system need to select first PV if the demand from Fert
2.System need to select second PV if the demand from Halb itself(sometime a manual production order)
So psl tell how to control selection of production versionon this scenario
AF

Dear Abu,
Check by making these settings.
1.When the demand flows from the finished product to sub-assemblies and components,then in this case the system always
picks the first production version(assuming the lot size,valid from and to date is same for the different production versions for
the sub-assembly) when you maintain the BOM selection method as 2 in the MRP4 view of the sub-assembly.
2.When you provide the demand for the sub-assembly directly mention the second production version in MD61 and carryout
MRP and check the results.
Regards
Mangalraj.S

Production Version Selection - Manually

Hello Sir,
         I created two Production Versions for my FERT.In the Order Type i am
         defining that Versions to be selected manually.But when i am converting
         my planned order , the version is selected automatically.
         When i am creating production order manually the system is asking which
         version is to be selected. I am unable to trace where i am doing mistake.
         Kindly help me in solving this problem.
Thanks in advance.
   S.Nandhakumar.

Hi abhi
Could you please send the screen shots of the order type dependent parameters and the MRP4 view to my personal id [email protected] so that i ca check at my end.
Chandra
Message was edited by:
        chandra nalam

Production version selection

Hi
If we have two production version with same lot size quantity and same validity date
On what basis system determines IN THE PRODUCTION OR PROCESS ORDERS.
The selection key in Material master is Production version only
Please explain the logic
Regards
Sasikanth

What is the basis for the Selecting the production version .
How the system identify this is the first production version ?
system will check the validity date, from lot size and to lot size with requirement qty, if both the PV has valid on date having same lot size, System will take first created PV, if the first created PV is locked, then system will take second PV
If i created Version with Number 1000, 1001
and if we kept 1001 as the first , Which version system will create ?
System will take first created PV, if 1001 is created as first then system will take 1001

Automatic Production Version Selection

Dear All,
There are two production versions 0001 and 0002 for a finished material. When I create production order from planned order it automatically selects version 0001. If I want it to select version 0002 automatically what should I do?
Regards
Hammad

Hi Hammad,
As per your querry, you want production version 0002 should be selected automatically when you create production order instead od PV 0001. If you want PV 0002 should be selected automatically then,
1. Maintain lot size of of PV 0002 to quantity which you usually use for the production. So when you create production order system will use PV0002 based on lot size.
2. Or change validity period of PV0001 to a date which is outside the planning period. So it will be no longer valid in the period in which you are creating production order.
3. As specified by experts, you can change PV selection to manual by going to transaction COR4. And change selection of PV to manual selection for your order type or you can change it by going to transaction MM02. Then lock production version by selecting locked for any usuage.
Hope this resolve your issue, please reward if it is usefull.
Regards,
Avinash.

Variance due to Two Production Versions

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