Pegging Area Inconsistencies in SAP APO PPDS

Introduction

Pegging is a concept in SAP APO Production Planning and Detailed Scheduling (PP/DS) to 'link' a receipt element with a requirement element.

A Pegging Area in the context of SAP APO PP/DS is a combination of product, location, account assignment object and planning version.

The concept of pegging area in APO is similar to the concept of 'Planning Segment' in SAP ECC (does not include planning version). The concept can be understood in most simple manner in the following way. A requirement as well as a receipt element lies in a specific "pegging area". Only a receipt element which lies within the same pegging area as that of a requirement element, can be assigned to it.

Pegging relationships are of two types:

1. Fixed Pegging – if used, fixed pegging relationships are retained even if there are document changes; it also keeps component assignment stable over multiple levels.
2. Dynamic Pegging – system does automatic pegging and can change it in situations for example when a new requirement or receipt element is created.

Pegging is an important concept during detailed scheduling. Using ‘Detailed Scheduling Strategy’ we can define if system should consider pegging relationship; not using which could result in availability dates either too late or too early.

While pegging areas play an important role in APO PP/DS, sometimes system encounters "inconsistencies" in pegging areas. In below section we go through how to deal with pegging areas inconsistencies. Cleaning up inconsistent or obsolete pegging areas results in improved system performance.

Pegging areas inconsistencies

Pegging areas inconsistencies could be because of multiple reasons:

1. Pegging areas without Orders [in Make to Order (MTO) production]
2. Pegging areas without Account Assignment Objects (in MTO Production)
3. Pegging areas without Product Master
4. Pegging areas without Planning Version
5. Pegging areas without Model

In the next section we shall go through method to deal with these inconsistencies.

How to deal with pegging areas inconsistencies

SAP has provided a standard report to remove pegging areas inconsistencies: /SAPAPO/DM_PEGKEY_REORG

The program’s behavior in case of different types of inconsistencies are described as below:

1. Pegging areas without orders: The program deletes these pegging areas for which there are no orders. (In MTO Production)
2. Pegging areas without account assignment objects: The program deletes such pegging areas only if these have no firmed orders. If there are firmed orders, then this program does not delete the pegging areas or the orders. (In MTO Production)
3. Pegging areas without product master: The program deletes such pegging areas along with all unfirmed orders.
4. Pegging areas without planning version: The program deletes such pegging areas along with all unfirmed orders.
5. Pegging areas without model: These are pegging areas for which location products are not assigned to the model. The program deletes a pegging area if no requirement and receipt elements are existing which use this pegging area. If there exists such requirement or receipt, then we need to re-assign the location product to the model in order to resolve this inconsistency.

The other three fields available for use in the program are as follows:

1. Account assignment objects without pegging area or operations: (Used in MTO production): System deletes such account assignment objects for which there are no pegging areas or operations.
2. Forecast consumption flag: Used to delete flags which system has put for consumption of forecast, for which there are no longer any pegging areas.
3. Stock history: To delete stock history.

Removing Inconsistencies:

Go to SE38 transaction and put Program name: /SAPAPO/DM_PEGKEY_REORG and execute:

Executing the program brings the screen to this selection screen:

The initial fields are for different types of inconsistencies as discussed in previous section.

The “Restrictions” fields are for restricting the action for the desired set of product/location/production version combination.

An option of “Execute in Test Mode” is given so that we could review which pegging areas are selected by the program, before making a decision on deleting those.

Now we shall go through a test case where we shall do the cleanup. Before pegging areas cleanup, there are 89 pegging areas (t-code /SAPAPO/RRP_NETCH):

MRP Heuristics Run found 89 pegging areas during the stage numbering algorithm step (to calculate low level code for the products)

Cleanup of obsolete pegging areas:

It deleted 39 pegging areas:

Since it deleted 39 out of 89 planning files (pegging areas), the count should become 50 (89-39) now.

Re-checking planning files (t-code: /SAPAPO/RRP_NETCH):

The pegging areas count is now 50:

Running MRP and detailed scheduling jobs:

Checking Planning Logs:

This time, the stage numbering algorithm step found pegging areas to be planned as “50” (updated figure); thereby indicating the success of cleanup of obsolete pegging areas.

Conclusion:

Benefit of removing inconsistent / obsolete pegging areas:

The important benefit of removing or cleaning up of inconsistent pegging areas is that it improves system performance.

SAP recommends scheduling of this standard program /SAPAPO/DM_PEGKEY_REORG on a periodic basis.

References

Based on work experience and SAP Help.

All images used in the document are taken by author Kr. Rahul from SAP SCM 7.0