Understanding Firming Types in SAP PP: A Guide for Material Planning Efficiency

In the fast-paced world of production planning, ensuring smooth material flow is critical. SAP PP (Production Planning) offers a robust set of features to manage this, and the “firming type” concept plays a key role. This blog post dives into firming types and how they impact your material requirements planning (MRP) process in SAP PP.

What is a Firming Type?

Simply put, a firming type dictates how procurement proposals (planned orders or purchase requisitions) are firmed and scheduled within the planning time fence during an MRP run. The planning time fence, defined in the material master’s MRP 1 view, represents a timeframe where confirmed material requirements are considered reliable.

Types of Firming and Their Impact

There are several firming types available in SAP PP, each with distinct functionalities:

• Blank or ‘0’ indicates that no firming is done during MRP. Procurement proposals remain unconfirmed and subject to change in subsequent MRP runs.
• ‘1’ – Automatic Firming: This is the most common type. Proposals falling within the planning time fence are firmed, while those outside are rescheduled beyond the wall as order proposals. This ensures confirmed material availability within the critical timeframe.
• ‘2’ – Firming Within PTF: This type firms only the portion of a requirement that has already been transferred (e.g., confirmed purchase orders). Useful for short lead times, and firm commitments are needed only for confirmed quantities.
• ‘3’—Firm Within PTF, Plan Outside: This is similar to type ‘1’, but planned orders are created to cover shortages even outside the planning time fence. This offers more flexibility but requires closer monitoring.
• ‘4’ – No Proposals Within PTF: This type prevents any firming or creation of proposals within the planning time fence. MRP focuses on planning requirements beyond the wall.

Choosing the Right Firming Type

The optimal firming type depends on your specific production environment and material characteristics. Here are some factors to consider:

• Lead times: For materials with long lead times, type ‘1’ or ‘3’ ensures timely procurement within the critical period.
• Demand predictability: If demand is volatile, type ‘0’ or ‘2’ might be suitable for more dynamic planning.
• Inventory management strategy: Firms with just-in-time (JIT) practices might prefer type ‘4’ to avoid excess inventory buildup within the planning fence.

Conclusion

Understanding firming types empowers you to fine-tune your MRP process in SAP PP. By selecting the appropriate type for each material, you can achieve a balance between material security, responsiveness to demand fluctuations, and efficient inventory management. For a deeper dive into firming types and their configuration in SAP PP, refer to the SAP Help Portal or consult an experienced SAP consultant.