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    Pegging

    Uploaded by

    Sai Yakkala
    Pegging is a process that assigns product receipts and stocks to fulfill product requirements based on their relationships. This creates a pegging structure that links related orders and materials. The pegging relationships allow the system to identify planning issues, automatically schedule dependent orders, and optimize delays and costs. Pegging can be done dynamically by the system or manually fixed. It only links items within a defined pegging area based on attributes like product, location, and account. The system uses pegging relationships to determine alerts for any quantity or timing issues at different production levels.

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    © All Rights Reserved
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    Pegging

    Uploaded by

    Sai Yakkala
    264 views3 pages
    Pegging is a process that assigns product receipts and stocks to fulfill product requirements based on their relationships. This creates a pegging structure that links related orders and materials. The pegging relationships allow the system to identify planning issues, automatically schedule dependent orders, and optimize delays and costs. Pegging can be done dynamically by the system or manually fixed. It only links items within a defined pegging area based on attributes like product, location, and account. The system uses pegging relationships to determine alerts for any quantity or timing issues at different production levels.

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    Pegging

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    Pegging is a process that assigns product receipts and stocks to fulfill product requirements based on their relationships. This creates a pegging structure that links related orders and materials. The pegging relationships allow the system to identify planning issues, automatically schedule dependent orders, and optimize delays and costs. Pegging can be done dynamically by the system or manually fixed. It only links items within a defined pegging area based on attributes like product, location, and account. The system uses pegging relationships to determine alerts for any quantity or timing issues at different production levels.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    264 views3 pages

    Pegging

    Uploaded by

    Sai Yakkala
    Pegging is a process that assigns product receipts and stocks to fulfill product requirements based on their relationships. This creates a pegging structure that links related orders and materials. The pegging relationships allow the system to identify planning issues, automatically schedule dependent orders, and optimize delays and costs. Pegging can be done dynamically by the system or manually fixed. It only links items within a defined pegging area based on attributes like product, location, and account. The system uses pegging relationships to determine alerts for any quantity or timing issues at different production levels.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
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    At a glance
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    Pegging is used to assign product receipts and stocks to requirements and organize material flow through all BOM levels. It identifies planning problems and optimizes delays and storage costs.

    The main pegging procedures are dynamic pegging, which deletes and creates new relationships when planning changes, and fixed pegging, which does not allow manually fixed relationships to be changed.

    For elements to be linked in pegging, they must consume/deliver the same product, be in the same location, have the same account assignment, and be planned in the same planning version.

    Pegging

    help.sap.com/saphelp_scm70/helpdata/en/02/e4ab50135e0c0be10000000a423f68/frameset.htm

    Purpose

    Pegging is used to assign suitable existing product receipts and product stocks, which can cover the requirement, to
    a product requirement. Pegging organizes the material flow through all BOM levels, from the procurement of
    components and raw materials to delivery of a sales order, for example. Orders that are linked together, and their
    pegging relationships, form a pegging structure.

    The graphic below gives an example of a pegging structure. The arrows represent the pegging relationships; that is,
    the material flow.

    Based on pegging relationships, the system can:

    Identify planning problems on various production levels and display them using alerts

    Automatically forward scheduling specifications for an order to the dependent orders in the pegging structure,
    in Detailed Scheduling

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    Optimize delays and storage costs in PP/DS optimization

    Note

    Pegging should not be confused with the net requirements calculation : During planning, using the net
    requirements calculation, the system identifies shortages in order to then create receipts to remove these
    shortages.

    Features

    Pegging Procedure

    The following pegging procedures are available:

    The system automatically executes dynamic pegging , if planning has changed, for example, after you have
    created new requirements or new receipts. With dynamic pegging, the system deletes existing pegging
    relationships and creates new ones. Thus, with dynamic pegging, the assignment of a receipt element or a
    stock element to a requirements element is generally not retained for long if the planning changes.

    You use fixed pegging if you want to fix assignment of a receipt or stock element to a requirements element.
    The system cannot change manually fixed pegging relationships. In a Capable-to-Match planning run, the
    system can also automatically create fixed pegging relationships; however, the system can change these in a
    subsequent CTM planning run.

    Pegging Area

    Pegging can only link requirements elements, stock elements, and receipt elements within a pegging area; that is,
    the elements must:

    Consume or deliver the same product

    Be in the same location

    Have the same account assignment

    Be planned in the same planning version

    In addition, the elements have to be able to be linked, in accordance with the requirements strategy. For example, a
    requirement from " planning without final assembly" may not be linked with a receipt for " make-to-stock production"
    .

    Note

    With the exception of the attribute " planning version" , the pegging area is identical to the planning segment in SAP
    R/3. For that reason, the term " planning segment" is often used as a synonym for " pegging area" in SAP APO.

    Alerts

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    Based on pegging relationships the system can identify planning problems and display alerts . If, for example, a
    delayed receipt is assigned to a requirement, the system can display a date/time alertfor this delay. If too few
    receipts are assigned to a requirement, there is a shortage for the requirement. If a receipt is not assigned to any
    requirement, the receipt generates a surplus. The system can display quantity alertsfor these quantity problems. In
    Monitoring PP/DS Alerts , you can find a detailed description of PP/DS alerts that the system determines based on
    pegging relationships.

    The system can display direct alertsand network alertsfor receipts or requirements. A direct alert is an alert that
    directly concerns a receipt or a requirement. If, for example, not enough receipts are assigned to a requirement, the
    system can display a direct shortage alert for this requirement. Using the pegging structure, the system can also
    display alerts for planning problems that occur at lower production levels for a receipt or a requirement. These alerts
    are known as network alerts. For example, if there is a shortage for a component requirement, the system can also
    create an alert for the finished product that points to the shortage at component level. You specify if the system
    should create direct alerts and network alerts for a product in the location product master. In Customizing for "
    Production Planning and Detailed Scheduling" under " Set order view/periodic product view " " ," you can make
    separate settings for receipts and requirements, as to whether the system should display network alerts in the order
    view .

    Displaying Pegging Information

    You can display pegging information in the order processing view. For more information, see Displaying and
    Changing Pegging Information .

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