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Multi Level Pegging in Production

  • 1.  Multi Level Pegging in Production

    Posted 15 days ago
    What are the benefits of using the multi level pegging in all production order?  I see more benefit in planning for multi level pegging, but not in production.  Net requirements seem to be more beneficial.

    Thanks.

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    Trent Aschliman
    McWane, Inc.
    Birmingham AL
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    Conference-AXUG_200x200


  • 2.  RE: Multi Level Pegging in Production

    TOP CONTRIBUTOR
    Posted 14 days ago
    Trent,

         Your question is going to be hard to fully answer in a simple forum post like this but hopefully, I can point you in the right direction.

          The primary benefit of multi-level pegging is for planning purposes.   It allows a single action(estimating a parent Production) to create any number of sub-productions automatically marked to the parent. In order to get the maximum benefit of pegging like this, your production process needs to be aligned as well.  At Tigercat we make extensive use of single-piece flow, which works well with pegging.   Every time we produce a parent, we also produce it's children regardless of inventory levels.

          In fact, ignoring inventory levels is one of the main reasons we use this feature.  We do not want a previous transaction error to cause us not to plan a future requirement.   In order single-piece flow we never intentionally make to inventory,  everything is make to order.

            The other major benefit is pegging enables multi-level costing natively.    Depending on your costing requirements this could be a major factor.

             For the purpose of full disclosure, we do not use pegging as it is natively delivered.  Instead, we have modified the system quite heavily to make pegging work for us.  Specifically, we do not want all of the sub-productions to be created when the parent is estimated.  Instead, we want the sub-productions created based on a physical signal once the parent has already been started.    Our modification allows this.


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    Corey Vantilborg
    ERP Analyst
    Tigercat International Inc.
    Brantford ON
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    Conference-AXUG_200x200


  • 3.  RE: Multi Level Pegging in Production

    GOLD CONTRIBUTOR
    Posted 14 days ago
    Corey - at what level is the multi-level pegging set?  Is it at the item level? Business unit? or System wide?

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    Jody Cronk
    HBD Industries
    ERP Supply Chain Specialist
    US-AXUG OH (Columbus) Chapter Co-Lead
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    Conference-AXUG_200x200


  • 4.  RE: Multi Level Pegging in Production

    TOP CONTRIBUTOR
    Posted 13 days ago
    Jody,

          We set pegging on a per BOM basis.  Each item's supply chain is evaluated to determine the appropriate method to plan/order the component.   Pegged-Supply is one of those options.   A single BOM could have components supplied via a number of methods.  We use KanBans, Pull Signals, MRP Requirements, Forecasting and vendor management to supply components.

           We do not apply any universal rules, each part is looked at.




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    Corey Vantilborg
    ERP Analyst
    Tigercat International Inc.
    Brantford ON
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    Conference-AXUG_200x200


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