MRP & Production Planning

Course Objectives

Understand the principles of Demand Management (DM) Define the Materials Requirements Planning (MRP) process Describe how to valuate MRP planning runs Perform DM and MRP transactions

Table of contents

Course Map

Module 1: Master Data

Module 2: Demand Management Module 3: Material Requirements Planning Module 4: MRP Planning Runs Module 5: Summary

PP flow & Integration

FI /CO MM

Long Term Capacity Planning

Sales & Ops Planning

Demand Management

MRP

Capacity Req. Planning

Production Execution

MM LE (Stock Control)

CO (Cost Control)

QM (Quality Control)

Master Data Related Transactions

Practice the following transactions

MM03 Display Material Master CS03 Display BOM CR03 Display Work Center CA23 Display Rate routing MM03 Display Production Version

Table of contents

Course Map

Module 1: Master Data

Module 2: Demand Management Module 3: Material requirements Planning Module 4: MRP Planning Runs Module 5: Summary

What is Demand Management?

Demand Management is used to determine requirement quantities and delivery dates for finished products Demand Management provides a demand program which is used by MRP to generate production plans Depending on the planning strategy chosen in the material master, the demand program can use forecasts of demand, actual demand, or combinations of both Actual demand is created in sales order management (customer orders) and materials management (warehouse replenishment) Forecasts of demand are represented by planned independent requirements which are copied from the Sales and Operations Plan

What is the DM Process (1)?

SOP plans are transferred to Demand Management as Independent Requirements for end products The actual sales orders are for information purpose only and are not considered in planning. In case the sales orders significantly vary from the forecasted demand; Planners revise the demand before running MRP to generate manufacturing orders and purchase requisitions

Who is Responsible for DM?

Planner (DEM)
Responsible for managing the demand by comparing the actual demand with the forecast and manipulate the plan based on the actual demand before executing MRP

DM Related Transactions

Practice the following Transactions

MM03 Display Strategy MD63 - Display Independent Requirements MD04 - Display Stock Requirements List MD74 Reorganise Independent Requirements

Table of contents

Course Map

Module 1: Master Data

Module 2: Demand Management Module 3: Material Requirements Planning Module 4: MRP Planning Runs Module 5: Summary

Materials Requirements Planning

MRP compares the requirements for end products, from Demand Management, with the current stocks and creates planned manufacturing orders
Manual entry SOP SOP Production Sales Plan Plan Material Forecast Copy another plan

Demand Program
Planning options: Horizon Period splits History

Planning levels: Material Product group Versions

MRP

What is MRP?

MRP stands for: Materials Requirements Planning. The function of MRP is to provide material availability, that is, it is used to procure or produce the requirement quantities on time. This process involves the monitoring of stocks and demand, leading to the automatic creation of procurement proposals for purchasing or production. The main objective of MRP is to determine which material is required, the quantity required and by when it is required.

What is the MRP Process (1) ?

MRP compares the requirements for end products, from Demand Management, with the current stocks and planned manufacturing orders MRP chooses a Production Version which indicates the Bill of Material and Routing to be used MRP then explodes the product BOMs to determine the dependent requirements for intermediate products and purchased raw materials

What is the MRP Process (2) ?

MRP will normally be run weekly. The MRP process assumes infinite capacity
The Rough-Cut Capacity Planning check in SOP ensures that the loading is broadly correct before MRP runs.

MRP Type

For the MRP procedure, use MRP type PD in the material master MRP creates planned orders or requisition receipts to balance the demand plan Safety stock can be used to cover unplanned requirements

Receipts

Time

Requirements

Who is Responsible for MRP?

MRP Controller
Responsible for running and operating the material requirement planning to check and track the planned requirement for both finished products and raw material in order to generate Production Orders and Purchasing Requisitions

Table of contents

Course Map

Module 1: Demand Management

Module 2: Material requirements Planning Module 3: Master Data Module 4: MRP Planning Runs Module 5: Summary

Evaluations
There are several options for analyzing the Planning run
MRP list
By material Collectively

Stock requirements list

By material Collectively
Planning Result

Printed MRP list

MRP list

MRP list

Use the MRP list to analyze the planning result The MRP list displays the future stock/requirements situation at the time of the last planning run By using the collective display, you can select a specific MRP list based on plant and MRP controller Analyze the exception messages in the MRP list, judge and or solve problems Use the processing indicator to indicate that you checked the material

Planned order

Is the output of an MRP run Are automatically created Planned orders may be converted to production / process orders or purchase requisitions

Planned Order
10

Requirements MRP

20 30

MRP Related Transactions

Practice the following exercise

MD01 Total Planning Run Online MD02 Single-Item, Multi-Level MDBT Total Planning in Background MD07 Stock Requirements List Collective MD05 Evaluate MRP List MD44 Planning Situation Material