Issue

Syensqo has different types of plants including virtual plants created to support different activities ex: Intercompany, Subcontracting etc.. Due to a large number of virtual plants, the supply chain transactions become very cumbersome, and the automation opportunities are limited. As a part of the ERP Rebuild program there is an opportunity to standardise and simplify the plant structure.

Recommendation

Background & Context

Plant represents a physical location where materials are produced, procured, stored, maintained or distributed. Following is some of the key functionalities at plant level

• Materials are valuated at plant level
•  Inventory management functions including inventory reporting are carried out at plant level
•  Materials Requirement Planning (MRP) is carried out at plant level
•  Production and production planning activities are executed at plant level
• Maintenance and maintenance planning activities are executed at plant level
• A plant is the location where the technical objects of a company are installed i.e. Workcenter, functional location etc.
• Many master data objects are maintained at plant level ex: Material master MRP, Purchasing, QM etc.
• Plant is a key element for application system security

The current plant structure has a lot of duplicate plants and virtual plants which increases the complexity of supply chain transactions as the stock movements have to be carried out on the virtual plants even though physically the stock is not moving, Increasing operational overhead as these virtual plants needs to be kept in sync wrt inventory , purchasing transactions and intercompany / intracompany transactions.

Assumptions

Constraints

Impacts

Business Rules

Options considered

Option A: 

Option B: 

Option C: 

Option D: 

Evaluation

	Option A	Option B	Option C	Option D
Criterion 1	Pro Con	Pro Pro	Pro Con	Pro Con
Criterion 2	Pro Con	Con	Pro Pro	Con Con
Criterion 3	Pro	Con	Con	Pro

See also

Change log

Workflow history