Pegging for planned orders

This topic introduces the concept of order pegging and explains how you can use order pegging.

Pegging is the recording of the source of demand requirements on which planned orders are based. Pegging enables you to trace requirements for a given component, up to its ultimate end item, customer, or project. This information assists you in the analysis of planning problems, and in the evaluation of corrective actions, such as:

  • Increasing production capacity.
  • Cutting order quantity.
  • Substituting materials.
Example

If a production order produces a component for another production order, the pegging relationship identifies the production order to which the component has been allocated. If a part of the stock of this component is destroyed accidentally, the pegging relationship shows which end products and customers are affected.

In this context, the order that is the origin of the demand (for example, a sales order), is called the parent order.

Note

The parent order can be of any type. For example:

  • Sales order
  • Sales schedule
  • Actual production order
  • Planned production order
  • Warehousing order (of Transfer type)
  • Planned distribution order
  • Forecast
Single-level pegging data

LN automatically maintains the next-level parent order of a pegged planned order.

To view the origin of the demand for a planned order, take the following steps:

  1. Start the Planned Orders (cprrp1100m000) session.
  2. Select the planned order.
  3. On the appropriate menu, click Details to start the details session.
  4. In the details session, click the Pegging Info tab.
Multilevel pegging data

To make it possible to browse all levels of pegging information, you must generate pegging relations.

To generate the pegging relations

You can generate the pegging relations in two ways:

  • In the Generate Order Planning (cprrp1210m000) session, in combination with the planning of orders. Select the Update Pegging Relations check box.
  • In the Generate Pegging Relations (cprrp0240m000) session.

To add the pegging relations between the forecast received from a customer for which you plan the supply and the confirmed supply you send to that customer, use the Generate Pegging Relations Forecast - Confirmed Supply (cpvmi1212m000) session.

LN generates the pegging relations up to the horizon defined in the Pegging Horizon field in the EP Parameters (cprpd0100m000) session.

Note

If the Update Pegging Relations during Order Planning field in the Scenarios (cprpd4100m000) session is Always or Never, LN automatically determines the setting of the Update Pegging Relations check box in the Generate Order Planning (cprrp1210m000) session. In that case, you cannot modify that check box.

Delete all Pegging Relations

If you select the Delete all Pegging Relations beforehand check box, LN deletes all previously generated pegging information for all plan items in all scenarios.

The following policy is recommended:

  • If you want to regenerate pegging relationships for one of the scenarios or for a limited set of plan items, clear the Delete all Pegging Relations beforehand check box to retain the pegging relations for other scenarios and plan items.
  • If you execute a full order simulation run for all plan items, you can better select this check box, because that gives you a better system performance.
Pegging signals

If you generate the pegging relationships, LN identifies any problems and generates signals to communicate these problems. For more information, refer to Pegging signals.

Net-change pegging update

Between two regenerative or net-change planning runs, you can perform multiple net-change updates of the pegging information. A net-change pegging update gives you a quick update of the pegging information. If you perform a net-change pegging update, LN recalculates the pegging information only for the items of which the item structure, inventory transactions, or planned orders have changed since the previous pegging update.

LN takes the following types of changes into account:

  • Changes in the planned orders for an item.
  • Changes in the item structure of an item, such as the bill of material (BOM).
  • Changes in the inventory transactions recorded for an item, such as inventory movements related to sales orders and purchase orders.

The Pegging Net Change check box in the Items - Planning (cprpd1100m000) session indicates whether a plan item changed after the previous planning run. LN selects this check box if any of the following events occur:

  • LN selects the Net Change check box in the Items - Planning (cprpd1100m000) session, because item-related data has changed.
  • You perform an order-planning run without updating the pegging relations. In other words, if you run the Generate Order Planning (cprrp1210m000) session or the Generate Order Planning (Item) (cprrp1220m000) session and clear the Update Pegging Relations check box.

If you update the pegging relations, LN clears the Pegging Net Change check box for the related plan item.

To perform a net-change pegging update

To perform a net-change pegging update, select the Net Change Run check box in the Generate Pegging Relations (cprrp0240m000) session.

To browse the pegging relationships

To browse the pegging relationships in a graphical browser, use the Browse Order Pegging (cprrp0740m000) session. To start that session, you can zoom from many order-related sessions or immediately from the menu.

To start the graphical browser from the Planned Orders (cprrp1100m000) session, on the appropriate menu, click Pegging - Upstream or Pegging - Downstream.

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