Pegging in Manufacturing - Overview

Production Orders

Production orders are created:

  • Via transfer from Enterprise Planning

    Peg information from planning is transferred during creation.

  • Manually

    Peg information is defined manually by the operator based on the item settings such as inherit peg and peg mandatory. The peg distributions entered must be checked against commingle rules to verify that manually entered pegs are allowed to be on the same production order.

    It is possible to add a peg on a production order for an anonymous end item.

Peg information is included in Print Production Order Documents (tisfc0408m000).

Bill of Material

The Inherit Project Peg can always be modified for an item. The modification can cause inconsistences in the BOM. To prevent this a multilevel bill of material setup must be validated in regard to setting of the item.

Estimated Materials

Estimated materials can be updated with peg information from a production order. Each material line needs its own peg distribution that is sent to planned inventory transactions. The peg distribution for each estimated material line does not allow changing any of the peg information. The quantity of each line will prorate to the pegs based on planned quantity needed per peg.

Material Issue

The issuing of project pegged parts to production orders updates the costs of the production orders, project costs are not updated because the material costs already exist there.

If there is a shortage of pegged inventory on a peg while an excess from another peg exists it can be used if commingling is allowed by the peg parameters. In this case the cost is updated in project per the peg distribution.

  • The issuing of anonymous items to a pegged production order causes costs to be updated in the project ledger as well as in the production order.
  • The issuing of a customer furnished item to a production order does not get updated in the project ledger or the production order.
Safety Stock Calculation

It is possible for non-mandatory project pegged items to receive orders for an inventory item to fulfill project pegged demand, and at the same time adjust the safety stock. The supply order in such case is a combined distribution of a project pegged demand and a safety stock demand (no project peg).

Note

If the supply for a specific project cost account is excluded from commingling it can not be combined with supply for safety stock.

Project Cost Account

A project has two main structures:

Users must define a structure of elements to model a work break down, model a structure of activities or a combination of both. Within project pegging, demand -, and supply orders for project pegged items refer to a project cost account.

A project cost account can be composed out of the cost peg attributes:

Note

The Project Parameters have a new company parameter to indicate which combination of attributes is used to show the cost peg.

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