Planning Strategy 60 in SAP is known as "Make to Order" (MTO). It’s used for producing goods specifically based on customer orders, allowing for customization.
Business Scenario: Customized Furniture Manufacturing
A manufacturing company specializes in producing customized items such as X, Y, and Z based on customer specifications. The company uses SAP ERP for managing production, inventory, and sales processes.
Key aspects of scenario
Product Offering
The company offers a range of X,Y & Z items that can be customized in size, color, and material.
Each product variant is defined in the system as a planning material.
Sales Process
Customers place orders via the company website or through sales representatives.
Each sales order captures specific customization details, including dimensions, materials, and finishes.
Planning Material Setup:
Material Master:
Each type of item is defined as a planning material in SAP with planning strategy 60.
Item Category group sales organization screens are not required.
Consumption Parameters(Consumption mode, Bwd consumption per, Fwd consumption per.) Need to be maintained so that planned independent requirement can be found.
Bill of materials required and contains non variable parts.
Variant Material Setup:
Material Master:
Strategy group 60 need to be maintained(MRP screen).
Item Category group needs to be maintained example NORM.
Consumption Parameters(Consumption mode, Bwd consumption per, Fwd consumption per.) not to be maintained, the values of planning materials are used.
Planning material, Planning plant and planning conversion fact (MRP screen) need to be maintained.
Bill of materials required and contains all parts.
Illustration with SAP screens:
The below 3 BOMs FGs all have common components but packing materials are different.
Planning Material BOM is entered only with common components from SM_FG1, SM_FG2 & SM_FG3.
Material Master Data setup for planning material.
The Planning Material is assigned to SM_FG1 , SM_FG2 & SM_FG3 in the MRP3 view. Also assign strategy group ‘60’ to FGs. Consumption mode is not required for FGs as the consumption mode in the planning material is used. Conversion indicator should be mentioned.
A forecast is created for the planning Material(PIR). MD61/MD62/MD63.
When MRP executed for Planning Material, no conversion allowed for the Planned orders as the Planning material is not for execution. Planned order type is VP which is non-convertible and unchangeable.
All the common Parts are the being planned and can be executed.
Sales Order Created for FG materials. For Illustration purpose sales order created for SM_FG1.
MRP run executed for all 3 FGs and will be planned as MTO scenario.
Original PIR of 50 reduced to 35= 50 –(5+5+5).
MD73 shows the consumption statistics.
Dependent requirement of the planning Material is tagged with raw material.
Now we convert variant SM_FG1 planned order to production Order.
Note its MTO production order.
Production order got created and visible in MD04.
The order reservation due to production order conversion.
Purch requisition of Common material is converted to PO.
Procurement of RM is received now. Now we can perform GI to production Order.
Goods Issue for SM_COMMON1
Order reservation gone and raw material stock consumed.
Perform Goods Receipt to Production Order of SM_FG1.
SM_FG1 now is in stock.
We can deliver the stock quantity to against sales order.
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