Project Pegging in Manufacturing

Production orders

Production orders with peg information are created as follows:

Transferred from Enterprise Planning

Peg information from planning is transferred during creation.
Created manually

You can specify peg information based on the item settings such as Inherit Project Peg and Mandatory Project Peg. The peg distributions that you specify are checked against commingling rules to verify that the pegs can be on the same production order.

You can also specify a peg on a production order for an anonymous end item.

Note: When you print production order documents in the Print Production Order Documents (tisfc0408m000) session, peg information is also printed.

Bill of material

Because you can modify the Inherit Project Peg setting for an item, inconsistencies in the BOM can occur. To prevent inconsistencies, you must set up a multilevel bill of material that is validated when you change the setting of an item.

Estimated materials

Estimated materials can be updated with peg information from a production order. Each material line requires its own peg distribution that is sent to planned inventory transactions. You cannot change the peg information in the peg distribution for an estimated material line. For each line, the quantity is prorated based on the planned quantity that is required per peg.

Material issue

When parts that are project pegged are issued to a production order, the associated costs are updated in that production order. Because the material costs are already included in the production order, the project costs are not updated.

If there is a shortage of pegged inventory on a peg, and excess inventory is available from another peg, transfer rules determine whether inventory can be transferred between pegs.

When anonymous items are issued to a peg production order, costs are updated in the project ledger and in the production order. When a customer furnished material item is issued to a production order, costs are not updated in the project ledger or production order.

Safety stock calculation

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

An item that is not project pegged can be used to fulfill project pegged demand and also adjust the safety stock at the same time. In this case, the supply order includes a combined distribution of project pegged demand and safety stock demand (no project peg).

Note: If the supply for a specific project cost account is excluded from commingling, this supply cannot be combined with the supply for safety stock.

Report operations completed

The distribution line to choose when reporting a certain end item quantity complete is based on priority of the different lines. The priority is determined by requirement or need date and by the distribution line sequence of the project pegs. To always work with correct values the Generate Order Planning (Item) (cprrp1220m000) and Generate Pegging Relations Forecast - Confirmed Supply (cpvmi1212m000) sessions must be run regularly.

For a specific production order and project peg, Enterprise Planning can specify zero, one or more requirement dates with a specific quantity for each.

If more than one date exists for a distribution line, they may not be reported completed for the full quantity, but partially per the different requirement dates.