Question:
Hi experts,
I have a prod. order, where the qty is 5000 sqf. In my material master i maintained the under delivery tolerance as 10%. So i confirmed the qty of 4900 and delivered against the sales order stock (whose item qty is 5000). But when i run the MRP, it is still generating the planned order for the balanced qty of 100 (5000 - 4900). Why it is like this. As i have under tolerance of 10%, why the system is planning for the rest of the quantity.
Did i miss out anything to maintain?
Looking for your great help.
Thanks in advance.
Gurunath.
Answer:
Hello,
As I understand over and under delivery tolerances, they do not tell the system that the order is finished, they just allow you to close the order when the confirmed qty is not equal to the planned qty but within the tolerances.
In your example your order is for 5000 qty and you have confirmed 4900 qty. The system doesn't know that you are finished but it will allow you to TECO the order between 4500 qty and 5000 qty. You have to tell it that you are now finished. If you want the system to close the order when you get to 4900 qty what would have prevented it from closing it at 4500 qty ?
As a result you still have a shortfall between demand and both stock and planned qty so MRP creates another order to satisfy the demand fully. Even if you close the order MRP will still create another planned order to make up the shortfall.
An example with over delivery, if you had a 10% over delivery tolerance, you submit an order for 5000 Pcs, you are able to confirm up to 5500 Pcs but when you try to confirm 1 Pcs more you will get a hard error (Error in BA...) that will prevent you from continuing until you change the order.
I hope that helps
Mark
Answer:
Hi Mark,
Thank you very much for your response. Your information is helped a lot.
If my prod. order is confirmed(CNF) and delivered to warehouse(DLV),
and the quantity delivered(4900) is less than the prod. order qty(5000), where the balance is within the tolerance limit, is there anyway, to restrict the MRP , not to consider the rest of the requirement(balance is 100 if sales order qty is 5000) in the planning run. Because, now as it is generating the planned order for the rest of the 100 qty, it is becoming bit confusion to the planners.
Looking for your great help.
Thanks in advance.
Regards,
Gurunath
Answer:
Hi Gurunath,
Maybe this can be solved by manually teco your Production Order so that PO have status TECO. This can be done with trx CO02, Menu Functions - Restrict Processing - Technically complete. I hope that can help you
Answer:
Hello again,
TECOing the order will certainly close the order but it doesn't fill in the shortfall that you have between your demand and your delivered qty. If you TECO the order there will still be an outstanding demand for the remaining 100 qty that MRP will still try to make via a new planned order.
I don't know of any single piece of config that does exactly what you are asking for but you could dampen your demand by using a safety stock that uses days supply. This would work if your shortfall qty was not too much when considered with your total demand pattern.
Obviously, the best way of preventing MRP from creating new orders is to have the shop floor actually make the qty that was asked of them but this is not always realistic. What I can say though is that the over and under delivery tolerances are nothing to do with the MRP run and relate to the execution of the order.
Maybe a more expereienced PP person could help us on this one ?
Mark
Answer:
Hi Mark and vieryfl, thanks for your response.
Just putting my thought in front of you. What i would like to advice my client is, upon DLV status of prod order, to change the schedule line item category in the sales order, from CP(current) to CN. So that, this item will not be considered for the next MRP run . Please advice.
Looking for your great help.
Thanks in advance.
Regards,
Gurunath
Answer:
HI this is the best solution....
carry out the following
1. Put a delivery completed status in the production order GR (its ok even if you dont put, but the status mgmt will always be in real time if you click this)
2. Teco the order, close the order if required----this is not a mandatory step
3. Then do a Sales Delivery and pick the quantities for the required qty
4. Go to the sales order and change the item status, by putting a Reason fo Rejection for the item....you will have to create a reason called short closing the order or use an existing reason.
5. In the next MRP run, this sale order line item will vanish, i think you can do similar activities for the PIR, if you cant then go and change the PIR qty to the reduced qty.
6. Enjoy, the job is done
7. Submit a Paycheck
8. Mail to ulhas_kavle@satyam.com for further clarifications
Answer:
Hi Ulhas,
Thanks for your response. Just to share something with you, in my case, upon delivery, i have no problem. As long as it is within the tolerance limits, upon delivery, SO status considering as "completed", because we have tolerance limit in customer master. Once it shows "completed", MRP is not considering this as a requirement.
Thanks & regards,
Gurunath.
Answer:
Hey boss, what ever be the tolerance limits forget those,
You wanted to delete the extra planned order created for the shortage qty (which u have not delivered atall) in the MRP. so the best way is after delivery, put a reason for ejection in the sales order. This will aviod Pl order creation in the next MRP Run
Answer:
There is a whole chain of interesting communications about how to do what you want, but I'd just like to add a basic principle.
Sales asked for 5000 qty so you need to deliver 5000 to satisfy that need. Your tolerance is defined within production order, and is meant solely for production purposes. Because of the tolerance, your production order was able to close (status DLV) and that is the reason why you see a new "planned" order in MRP. If the production order closing was a problem you should have seen balance qty with ref to that same production order.
Now, if the sales is not keen to supply that addl. 100 qty - then I'd expect the tolerance to be defined somewhere in SD side (pl check with SD forum for possible places and means to do that).
Anyhow, unless you're using pure MTO strategy - production is not hardpegged to sales. Therefore any tolerances defined within one do not automatically get into another.
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- Ram