Unit Effectivity
Unit effectivity is a method to control the validity of variations on an end item. You can use unit effectivity for pegging purposes, or to model exceptions from a standard end item so that you can make variations without having to define separate item codes. As a result, you do not need to maintain separate BOMs for every combination of variations. End items can be, for example, airplanes or touring cars.
The deviations consist of relatively small variations of the end item. For example, fitting red seats instead of blue ones, or a special type of radar or air-conditioning, in an otherwise standard type of airplane.
You can use unit effectivity to apply changes if:
- Few changes are made.
- The changes apply to relatively small subsets of the end item.
- The changes result from customer requests, engineering, or production.
The main concepts in unit effectivity are:
- Effectivity units: An effectivity unit is a code that is linked to an end item for identification, and which can represent the deviation(s) from the standard end item. You can link an effectivity unit to manufactured items and purchased items.
- Requirements: A requirement in unit effectivity is a
business reason that you define to describe the modifications and the
variations for an item (the exceptions). The requirement is expressed by
exceptions, as:
Requirements can indicate, for example, regulations:
- USA: USA regulations
- EUR: European regulations
- ASIA: Asian regulations
Requirements can also, for example, concern an item’s model:
- LIGHT: Model with limited features
- NORMAL: Model with the normal features
- ADVANCED: Model with advanced features
- Exceptions: An exception in unit effectivity is the definition of a deviation that applies to a unit effective item. An exception indicates, for example, whether a specific BOM line or a specific routing operation is used for an effectivity unit. Exceptions are often created as a result of customer requirements, or technology upgrades.
- Print Pegging by Effectivity Unit (tcuef0412m000): You can use effectivity units for pegging purposes. If an effectivity unit is specified on a sales order line, Enterprise Planning provides Manufacturing, Procurement, and Warehousing with that effectivity unit. In this way you can trace a specific unit effective item.
- Print Progress Report (tcuef0414m000): You can print a report that outlines the progress on PCS activities, sales order lines, installments for sales orders, purchase orders, production orders, and service order activities that are related to an effectivity unit. The progress is indicated in the status column of the report.
- Unit Effectivity Parameters (tcuef0100s000): You can also maintain the unit effectivity parameters.
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.
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, ERP Enterprise 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.