If you plan to use the volumes for non-SMS allocations, you need to delete or move all system-managed data sets. The following procedure shows how to do this and how to remove the storage group from the SMS configuration:
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To declare volumes non-SMS-managed, you need to INIT them through ICKDSF to non-SMS or CONVERT them through DFSMSdss to non-SMS.
When you delete a VIO or dummy type storage group, you do not have to worry about redefining volumes to other storage groups, but you might need to modify the storage group ACS routine.