Multi Plant Planning – Part 1 (Production in Alternate Plant)

May 4, 2015 | 1,534 Views |

Prem Prabhakaran
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MAN Production Planning (PP)
ManufacturingSAP ERP enterprise resource planningManufacturingmaterial managementmaterial
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Multi Plant planning is a vast area which is conceptually strong and deep. This document is an
attempt to present some of the key features with some examples and screenshots.
Part 1: Production in Alternative Plant

Consider the scenario where there’s a planning plant and a production plant. The requirements
created in planning plant should auto transfer to production plant, and the same needs to be
produced directly in planning plant.

Let’s start with an example material PL2. I have created this in a plant, number 6000. This is FERT
material, MRP Type PD and has created with the strategy 40. You can have other strategies as well,
but let’s say we start with sales orders and the consumption for the same.
The MRP is as below. Consider this as a random situation.
Now, let’s start with production in another plant concept. I have extended the material to one more
plant, 6997. The configuration for special procurement key is added with code 91, which suggests
production in alternative plant 6997.

SPRO->Materials Management->Consumption-Based Planning->Master Data->Define Special

Procurement Types

Change the material master for PL2 in MRP2 view under planning plant 6000 and run MRP. All the
planned orders of plant 6000 will now refer to plant 6997.
If you choose the planning situation in 6997, it will be as below. The reference to plant 6000 will be
shown on the right side.
As mentioned earlier, the material PL2 has the strategy 40. This means that existing stock will not be
considered; the sales order requirements will consume PIR quantity; and VSF will be created for
excess quantity only.

The total order quantity in May is 12,001 MT.  (Order 15524, 15549, 15517, 15520, 15518).

So, if I create a PIR less than 12,001 for the month of May in planning plant (6000), there will not be
any independent requirement in MRP run. So, let’s create a PIR of 12,002 in planning plant 6000:

Check MD04 for PL2 on plant 6000:

Once we run MRP, then planned order will be created for the same. This will again go to Plant 6997:

What’s the difference between MRP screens of Plant 6000 and 6997?

If you observe, you can find that the available quantity is blank in case of 6997, which is quite
unusual. The reason is simple: The production happens at 6997 but the ownership plant is 6000. That
means, if you create a production order and produce the material, the stock will be received to 6000
plant ONLY. You cannot receive the stock in 6997. So, the stock will not be available in 6997 even if
you convert any of the planned orders. Let’s have a look at it:

Convert any of the planned order to Production order:

Let’s try producing to plant 6997:

The error occurs as order belongs to 6000. If I change the plant to 6000:
The stock situation in alternate plant will not show the produced material. It will remain 0.

If we create a PIR in production plant 6997, that will be specific to that plant, considering the MRP
strategy of 6997. It will be shown up as extra PIR, as the current production plan will not consume
the same.

Please let me know your comments / inputs on this topic. I’ll try to incorporate your valuable
suggestions to make it a comprehensive document.

If you have missed Part2, please refer the link Multi Plant Planning – Part 2 (Using Quota
Arrangements)