Pegging (business informatics)

In MRP invoices (also MRP II or ERP ), pegging or cause of demand is the ability to see the origin of a demand that led to a triggered order.

The material planning function of classic MRP / MRP II / ERP systems adds up primary and secondary requirements according to parameterized specifications. As a result, the relationship between the production order and the sales order is lost - one component could be incorporated into products for different sales orders. In order to remain able to act with changes, the function of was Pegging (Engl. Pinning ) - in the jargon also drill down called - introduced with a dispatcher can find the job whose schedule, quantity or storage change to the change in the resulting secondary demand.

A distinction is made between fixed and dynamic pegging.

• With fixed pegging, the assignment of a higher-level requirement to a lower-level requirement is retained during planning.
• With dynamic pegging - depending on the planning situation - the assignment of higher-level requirements to lower-level requirements can change.

example

A component "A" is assembled from 2 parts "B" and 1 part "C".

For component "A" there is a requirement of 10 pieces and a second requirement of 20 pieces in the same week.

It follows that 60 parts B ((10 + 20) * 2) and 30 parts C (10 + 20) must be made in the previous week.

If one of the higher-level requirements changes, e.g. B. the order for 10 parts is reduced to 5), then the requirement "suddenly" shows 50 parts B and 25 parts C.

Pegging allows the dispatcher to see which order (i.e. the one for 10 or the one for 20 parts A) has changed.

Sources and individual references

1. ↑ Hopp, Wallace J .; Factory Physics: foundations of manufacturing management; 2nd ed. / Wallace J. Hopp, Mark L. Spearman; McGraw-Hill Higher Education; ISBN 0-256-24795-1
2. ↑ Jargon buster at www.bpic.co.uk comments and suggestions to [e-mail]