Example of unit effectivity

This example describes unit effectivity when it is used as a lean configurator. For more information, refer to:

Example

Your company produces touring cars. The standard configuration of a touring car has blue seats and air conditioning. However, some extra requirements can be built in on customer request. For example, a customer wants green seats instead of blue seats, or the customer wants a television set installed.

Define two requirements in LN:

  • Requirement 1: Television set (TV)
  • Requirement 2: Green seats (GREEN SEAT)

Green seats and a television set must be included in the BOM. Those components are not part of the standard configuration. Exceptions must be defined for those components, and also for one of the standard configuration components:

  • The BOM component TELEVISION (non standard configuration) has an exception that is valid for requirement TV.
  • The BOM component GREEN SEAT (non standard configuration) has an exception that is valid for requirement SEAT.
  • The BOM component BLUE SEAT (standard configuration) has an exception that is not valid for requirement GREEN SEAT.

If a customer orders two different configurations, two sales order lines must be created. An effectivity unit is generated for each sales order line, for example effectivity unit 4500 (green seats) and 4501 (television set installed). You can configure the touring car from the sales order line. Requirement GREEN SEAT is selected for 4500, and requirement TV is selected for 4501.

The effectivity units are used in the order-planning engine in Enterprise Planning. During the BOM explosion in the MRP run, LN determines the validity of each BOM line for effectivity units 4500 and 4501. The effectivity units can be pegged to the resulting production orders and purchase orders, for all BOM levels.