SAP. PRODUCTION DETAILED PLANNING Curs
SAP. PRODUCTION DETAILED PLANNING Curs
SAP. PRODUCTION DETAILED PLANNING Curs
Prerequisites:
Set a MRP type for MPS in the material master (MRP 1 view) or in the MRP configuration.
Enter a planning time fence in the material master.
The planning time fence is the number of work days, within which the master plan (or better say the
procurement proposals of a master plan) is protected from being disturbed or changed from any automatic
changes (of a MRP Run). The procurement proposals are firmed so as to protect them from any changes. In
other words, in the planning time fence, the system does not create, change or delete any procurement
proposal.
The system calculates the time fence from today’s date plus the “number of days mentioned as planning time
fence” in the material master (MRP1 view) or in the MRP configuration (where the planning time fence can be
defined for plant or a given MRP group). It is needless to say that any new requirements are not included in
this time period nor the existing requirements are changed. MRP carries its usual planning outside this fence
(without disturbing this fenced period).
1. Start the total planning or single-item planning for master schedule items (MSI).
All changes to be made to the master plan are only proposed within the planning time
fence.
Logistics --> Production --> Production Planning --> MPS --> MPS --> Single-Item,
Multi-Level
(OR Single-Item, Single-Level used for planning run for one material only)
2. Start the total planning run for all dependent parts (work with the single-item,
multi-level planning in the menu for MPS or choose to run the MRP for the dependent
parts).
Scenario 1. Finished material is A, which contain Components B,C and D. Component C has to be
planned for MPS because is a costly one and will be imported (ROH), the other Component B and D are
also ROH but are locally purchased.
Set MRP types to M1 - M4 (depending on the planning time fence) for A and C. Set PD for B and D. Run
MD41 (Single Item Multi Level MPS) for A first (because if C is MSI, then A should be treated as one),
and see how C look like. Adjust plan for A and C until satisfactory. Then later, run MRP for B and D.
Scenario 2. There is an assembly 'A' having component assembly 'B'. 'C' is the raw material for 'B'. Item
'A' is a MSI and is duly marked in Material Master. Item 'B' and 'C' are marked as 'PD'.
With MD42 is run only the top MPS item ('A' in this case).
Dependent requirements will be passed to MRP item ('B’): MRP run is required with MD02 (Single Item
Multi Level) to plan 'B' and all MRP items below (recte ‘C’).
As a general rule, the materials marked for MPS in Material Master will be picked when MD41 or MD42
are used, while MD02 will pick the material marked as PD in MRP type.
MRP's popularity is largely due to its simplicity, both in concept and execution. The three objectives of a
MRP system are:
1. to maintain the least inventory required to adequately meet the job requirements;
2. to guarantee the finished products can be produced and delivered in a timely manner;
3. to efficiently plan purchasing, manufacturing, and delivery to flow without interruption or incident.
Failure to perform in any of these three areas will adversely affect the outcome of the entire system.
Traditionally, Material Requirements Planning is a system of increasing profits through improved planning
of production times, inventory needs, and final delivery of products. Remark that the MRP was
developed in 1964 by Joseph Orlicky and Black&Decker was the first company to implement this
system in the same year. The system is normally used as a software application, but it can also be
successfully implemented using pencil and paper. MRP software is regularly updated to meet the
changing needs of different companies and industries.
The Material Requirements Planning concept was developed in the 1960s and refined and enhanced
into the early 70s. By 1975, it was so successful that it had been implemented in about 150
companies in Europe and the United States. By 1981, around 8,000 companies had embraced the
MRP methodology. Less than ten years later, in 1989, approximately a third of all software sales in
America were MRP-based.
Dependent demand and independent demand were also defined as MRP concepts: independent demand
as demand originating outside the plant or production system, and dependent demand as demand for
components. The same goes for the bill of materials (BOM) defined to specify the relationship between
the end product (independent demand) and the components (dependent demand). MRP take as input the
information contained in the BOM.
MRP software simplifies the process and can be adapted for any type of manufacturing or production
environment. It develops a plan based on information entered into the system regarding the production
type and characteristics. The software program then develops a manufacturing plan based on bills of
material, inventory status, master production schedules, open orders, and sales forecasts.
Definition: MRP is a production planning and inventory control system used to manage manufacturing
processes. It determines the quantity and timing of the production or purchase of subassemblies and raw
materials needed to support the production plan.
In order to ensure the availability of materials based on the need generated by MPS and the Demand
Program, MRP includes and covers the following aspects:
the system calculates the net requirements while considering available warehouse stock and
scheduled receipts from purchasing and production
all levels of the bill of material are planned during MRP
the output of MRP is a detailed production and/or purchasing plan
To overview the main steps in MRP, we identify 5 issues:
• Net Requirements Calculation
• Lot Size Calculation
• Procurement Type
• Scheduling
• BOM Explosion
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MRP schedules the procurement proposals (automatic task). To expect the MRP run to schedule the
procurement proposals correctly, following data in the masters have to be properly maintained:
a) In-house production times (for in house manufacturing, maintained in the material master MRP 2 view),
b) Planned delivery times (for external procurement, in the material master MRP 2 view),
c) Interoperation times, set up times and tear down times (optional for in house production, in the material
master or routing),
d) Planned goods receipt times (optional for external and internal procurement)
In scheduling, the element of calculation is the lead time. For example, if the material externally procured
is a make-to-stock item, the lead time is the sum of the time required for the supplier to receive and
process the order, take the material out of stock, package it, load it and deliver it to us. In addition, we
might want to add the time required to receive the material in the warehouse (unload, inspect, move).
Scheduling for externally procured materials: SAP uses the planned delivery time (lead times) and
goods receipt times in Material master (MRP2 view) to schedule the delivery & release dates for the
procurement proposals. Either forward scheduling or backward scheduling can be used for these
materials. SAP uses the basic date scheduling in the case of externally procured materials.
2.Lead time Scheduling – where the addition of all the operation times in the Routings/Recipes are used to
calculate the planned order start and end dates. The capacity requirements are also calculated for the
planned order. It is used when detailed scheduling and capacity allocation on the work centers is necessary.
The production dates are determined using the routing. The system uses the floats that are allocated to the
material via the scheduling margin key in the material master. These floats include the float before
production and the float after production, as well as the extra time factors specified in the routing such as the
queue times, setup times, labor times, machine times, and so on.
E X
Planning mode parameter defines how to deal with procurement proposals from the last planning run:
1. The system reactivates unfirmed procurement proposals and, if necessary, adapts the quantity and date
to the new planning situation. The BOM is re-exploded only for procurement proposals that are to be
adapted.
2. The system reactivates unfirmed procurement proposals and, if necessary, adapts the quantity and date
to the new planning situation. The BOM is always re-exploded.
3. The system regenerates unfirmed procurement proposals completely.
When the MRP run is complete, evaluation follows. The main instrument used for evaluation and next for
carrying on the flow is the Stock/Requirements List (S/R List with transaction MD04).
Logistics --> Production --> MRP --> Evaluations --> Stock/Requirements List
SAP also offers a MRP list, which is displayed right after the planning is carried out for the material. MRP
list contains the results of the planning run and it is not a real time situation list of a given material or
materials.
Logistics --> Production --> MRP --> Evaluations --> MRP List
When accessing the MRP list after the planning run is carried out, using the transaction codes MD05
(individual material at a plant) or MD06 (collective display for multiples of a given MRP controller, product
groups, or vendors), it will display the planning situation as per the last MRP Run (it will mention the time
and date of the last planning run on the top of the screen).
A planned order is a MRP request for the procurement of a particular material at a determined time.
It specifies when the inward material movement should be made and the quantity of material that is
expected.
As already mentioned, planned orders are converted into production orders for in-house
production and into purchase requisitions for external procurement.