Manufacturing SAP

The Advantage of ATP Full Confirmation in REM

By: | Velmurugan Arunachalam

Publish Date: November 27, 2017

Repetitive manufacturing or REM is used in production scenarios with high product stability, high repetition rates, and low product complexity. Manufacturers, whether small scale or large scale executes their production process through a system which is quantity-based or period-based not usually an order-based. At the end of the planning phase before the planned orders for the finished product are transferred to production, an ATP (Available to Promise) check is executed for the planned orders with interchangeable components. The ATP check must be executed before proceeding with the other steps in the production process.
ATP check helps to check whether the available quantities of components in the planned order are sufficient enough to produce the planned order quantity on time. The system checks availability for planned orders only on request, that is, the planning run does not automatically check availability. In the collective availability-check, it is possible to check if the required components are available for several planned orders simultaneously. This is particularly useful if the need is to convert several planned orders simultaneously, for example, and to check beforehand if & by when the components are available.
Most manufacturers would wait for the availability of all the components required for the production for the entire batch needed (Full confirmation logic). Systems were set to execute partial confirmation logic, as that was the default setting. The true visibility of all the components is not displayed to the planner on the partial confirmation procedure when production must be executed for the entire batch quantity.
REM Planned Orders ATP
Default Setting

  • By default setting ‘Full Confirmation Logic’ will not be active. It means that the availability is checked with Partial Confirmation Logic. In this, the lowest committed quantity decides the committed quantity for rest of the components in the planned orders.

Availability check on planned orders

  • Fully committed planned orders are in green
  • Partial, non-committed orders appear in red

Partial confirmation for components
Modified Setting
ATP check by full confirmation logic
ATP check facilitates the control over the total available quantity of the component confirmed in an availability check. When this full confirmation logic indicator is not set, only partial quantities are confirmed in availability check, whereby the component with the lowest degree of availability determines the confirmed quantities of all components.
Since only 40% of component B can be confirmed, partial confirmation logic leads to just 40% of components A and C getting confirmed.
A check with full confirmation logic will lead to the confirmation of the total available quantity for all components.
Full confirmation for components
Practical Application
In the case of Full Confirmation Logic, each REM order must be checked for the full availability of all the required components before issuing it to the production floor. Availability of all the components should be confirmed, to begin production.
With the Partial Confirmation Logic, orders can be confirmed partially and issued to the production line without waiting for the full planned order confirmation.
The right choice of this setting gives a notable advantage to any manufacturing business.
Velmurugan Arunachalam -Solution Architect – SAP PP/QM @ YASH Technologies

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