Component Use Up

Frequently, you may need the ability to plan for end of life of components and beginning of life for their replacements. This occurs when one component is replaced by another component for reasons such as an engineering change, a more technically advanced component, or lower cost.

Here are some examples when you might want to use this functionality:

• You want to replace a component with another component at a certain point in time, and you want the system to help plan for this occurrence.

• The system should use up the remaining stock of an old component before introducing the new component into production.

• From the key date to begin use of the new component, PeopleSoft Supply Planning needs to plan for the new component while continuing to use the old stock until such time as the old component is used up.

You can define items that are going to be used up or phased out, drive the inventory level of the use up item to zero, and then manually replace the discontinued item on the BOM with a new item. You can store the use-up date for the item at the BU level because each BU can discontinue items with different use-up dates. Use up works in conjunction with item substitution. After the use-up item is consumed, one of the substitutes for the use-up item on the BOM substitution list can replace it on that particular production order or schedule. If no substitution items are defined for the use-up item and the obsolete date for the item has not been changed, the use-up item will be short.

At the Item Attributes by Unit level, you indicate a discontinue date for the item. After this date, PeopleSoft Supply Planning does not create any planned production, purchase, or transfer orders for that item. Define two new statuses, one representing the current item status and the other representing the future status of the item. To use up the item, set the future status to Discontinued. When you select a future status, you also define the date that the future status becomes effective, which is the date that planning begins to use up existing supply of the item.

PeopleSoft Supply Planning verifies the current and future status for the item. If the status is set to Discontinued, PeopleSoft Supply Planning begins to use up the item on the date indicated.

After the item is used up, PeopleSoft Supply Planning uses substitution logic to determine replacement items. PeopleSoft Supply Planning calculates a projected use-up date and passes it back to production. This is the date when the on-hand balance is projected to reach zero or remain constant for the duration of the planning horizon. You can use this date to initiate ECOs or BOM effective and obsolete changes for the used up item.