26428240 sap production planning
DESCRIPTION
PPsas[TRANSCRIPT
PRODUCTION PLANNING MODULE
PPPPPPPP
FIFICOCO
SDSD
MMMMPMPM
QMQM
PSPS
HRHR
Organizational and Master Data
Business Process for Manufacturing Planning and Execution
Reporting and Analysis
Sales Info System
CO/PA
Forecasting
Procurement
Sales & Oper.Planning
DemandMgmt
MPS/MRPMaterial planning
ManufacturingExecution
Order Settlement
Planning Process
Execution Process
Requirement from sales/marketing
Production Planning
Check Availability
Components Capacity
Run Schedule Qtys
Sch & Cap Levelling
Mfg. Execution Backflushing
Receipt of Fin Goods In Stores
Shift dates / Provide Addl. capacitiesPurchasing
yes
nonoyes
REM
Requirement from sales/marketing
Production Planning
Check Availability
Components Capacity
Production Order
Sch & Cap Levelling
Mfg. Execution Production Confirmation
Receipt of Fin Goods In Stores
Shift dates / Provide Addl. capacitiesPurchasing
yes
nonoyes
Discrete
Sales Info SystemInformation contains total sales orders already obtained, incoming sales orders, pending sales orders – product wise, customer wise, region wise.
ForecastingBased on the past history of consumption, a forecast of the sales figures for a product can be made.Future projections are made using one of the Statistical forecasting methods.
COMPONENTS
Sales & Operations PlanningHigher level planning i.e.overall planning at company level Yearly/Half yearly/Quarterly Planning
Demand ManagementManagement of RequirementsRequirements can be from sales forecasts, sales orders,etc.
CO/PAProjections will be based on the company’s future projection of costing and profitability analysis.
MRPThis is the total planning of all the components taking into consideration the existing requirements and stocks.Creation of purchase requisitions, production orders,etc.Final step in the planning process.
MPSPlanning of items that greatly influence the company’s profits or consume critical resources/dominate production processes.After the production plan of these critical items are firmed up, the planning of other components are taken up.
Repetitive Manufacturing -Run Schedule quantities are viewedQuantities are confirmed by BackflushingGoods are received into stock
MANUFACTURING EXECUTION
Discrete Manufacturing -Production orders are releasedMaterials are issuedCompletion confirmations are performedGoods are received into stock
ORDER SETTLEMENTCosts accrued to an order are debited to one or several allocation receivers belonging to financial or managerial accounting.
STANDARD PRODUCTION PLANNING REPORTS
Stock/Requirements ListLists the latest stock/requirement position of a materialin the plant i.e.planned orders, production orders,etc.
Production PlanThis report lists the monthly production plans – materialand plant wise.
OrdersThis report lists the orders pending/completed for a materialmaterial wise or work center wise..
STANDARD PRODUCTION PLANNING REPORTS
Quantity producedThis report lists the quantity of the material produced during the Period in question.
Work center LoadsThis report lists the available capacities, required capacities,remaining available capacities and %load for the work center.
ConsumptionLists the consumption of a material for the period in question.
BacklogsLists the backlog of the load at a work center for the periodin question.
Missing partsLists the missing parts that are required for the production ofa material.
STANDARD PRODUCTION PLANNING REPORTS
Production Planning Basic Data
Routings
Work CentersMaterials
CapacitiesInspectionPlans
Production Facilities
Bills of Material
PP Basic Data Production Resources/Tools
F06010
SAP R/3 Integration Model
Sales &Distribution
Sales &Distribution
ProductionPlanning
ProductionPlanning
MaterialsManagement
MaterialsManagement
Finance &ControllingFinance &
Controlling
CustomerCustomerSales Order
Shipment
Receivable Accounts / Cash Receipt
Credit Limit
Material Availability Check
Transfer of Requirements
Goods Issue to SO
Goods Receipt
Invoice Receipt
Purchase Order
Accounts Payable
Invoice
Accounting DocumentProduction Cost
Production Order
Production Order Receipt
Sales Forecast / Plan
VendorVendor
Organizational Structures in R/3
Cost accounting
Accounts
Internal logistics(MRP/Production)
Inventory management
Group
Controlling areas
Sales organizations
Company codes
Valuation areas
Plants
Storage locations/batches/special stocks
External logistics Purchasingorganizations
LevelsLevelsViewsViews
Material Master Data
General Data St. Loc. Specific Data Plant Specific DataSales Specific Data
Material Master
Data applicable throughout the client
e.g.
Material number
Description
Units of measure
Weight
Volume
Product hierarchy
Data dependent on sales organization and distribution channel
e.g.
Delivering plant
Sales text
Sales units
Shipping data
Division
Data relevantfor planning andproduction
e.g.
MRP profile
Production costs
Planning data
Valuation
Data referring to storage and inventory management
e.g.
Quantities
Special stock
Warehouse attributes
Material Types in the Standard SAPMaterial Type
DIEN
ERSA
FERT
HALB
HAWA
HIBE
LEER
NLAG
ROH
VERP
WETT
PROD
ServiceSpare PartFinished ProductSemi-finished ProductTrading GoodOperating SupplyEmpty ContainersNon stock ItemRaw MaterialPackagingCompetitor ProductProduction Resources/ Tools
Description
ProductData
EngineeringDesign
Sales
Production
Stock
Finance
Purchasing
Master data is a key pieceof information in the system
Master data can be seen froma number of views
Each view can correspondto an SAP module
Each view has a numberof information screens
Each view belongs to an org unit within the business
One product may have multiple plant and sales views, one for each plant or sales area
Master Data Views
EngineeringDesign
Sales
Production Stock
Finance
Purchasing
Examples of How Data is Used
Texts copiedto purchase orders
Maintains stock levels by plant, storage location, and batch
Data used tocalculate MRP
lead times
Controls customer ordering rules
for material
Controls whichGeneral Ledger
Account is updatedMaterial descriptionused in reporting
ProductData
Bills of Material
Simple BOM Variant BOM Multiple BOM
Simple BOM representing single material
Similar materials representedby variants on one BOM
BOM representing a material which can be made up of multiple compositions
e.g. different components
and quantities
Bill of Material Validity Area of Validity – The same Bill of Material can be allocated to several
plants. Before you can allocate the BOM to a different plant, the material
must exist at the new plant, the unit of issue on the BOM item must be
the same.
Validity Period (Valid from/to dates)
Becomes effective with the valid from date
The validity date is determined by the system automatically to be
either the next effective from date, or 12/31/1999.
A A
B C B D
X----------------------------------------------------------->>>>from 1/1/95 from 12/31/95to 12/30/95 to 12/31/99
BOM Structure
BOM Header
Item 10
Item 20
Item 30
Sub Item 10
Sub Item 20
Plant AssignmentValidity PeriodRelease Indicator
Stock ItemsNon-stock ItemsVariable Size ItemsDocument ItemsText Items
Additional component details
e.g. installation pointsfor components
Bill of Material Glossary�BOM Category – categorizes BOM’s to represent different objects; for example:
�Material BOM -- structure of products manufactured�Equipment BOM -- structure of equipment for plant maintenance�Document BOM -- structure of documents such as drawings (3.0)
�BOM Group – is a collective number for all BOM’s in a group which allows for one
or several similar products to be described under one number.�All Alternatives of a multiple Bill of Material�All variants of a variant Bill of Material
�BOM Usage – special view of the BOM which represents a specific area of
the company in which the BOM is used; for example, Engineering, Production,
Costing, Sales, Plant Maintenance
The BOM Usage allows different views to exist without
separate BOM’s for each usage.
�Technical Type – the system distinguishes BOM’s according to whether they
represent product variants or production alternatives. If you create a variant
for the BOM,the system marks it as a Variant Bill . If there is more than one
alternative for a material, the system marks the BOM as a Multiple Bill.
Bill of Material Glossary (cont.)
BOM Validity – Bills of Material are valid over an area and effectivity period.Area of Validity -- identifies which plants the BOM has been allocated toValidity Period -- identifies the from and to effectivity dates. The default to date is 12/31/9999
Item Category – When you enter a new Bill of Material item, an item category must be assigned.�It has important control functions such as:
Screen selection Specific processing, such as material number required, negative values supported. The Item Category cannot be changed once set. It must be deleted and re-added. Sizes are maintained for variable-size items Item categories include:
�Stock Items -- material in stock as a component�Non-stock Items -- material not stocked - with or without a material number�Variable-size -- system calculates the quantity required using formulas�PM Structure Item -- used with plant maintenance equipment�Document Item -- used with Document BOM’s
�Sub-Items – are typically used to represent different installation points for partial quantities of an item.
� In assembling resistors on a printed circuit board, the installation points are described.� There is no logic related to sub-items
Bill of Material Glossary (cont.)
AssemblyLine
Machines
People
ProductionLine
Capacity Requirements Planning
Scheduling, Execution Times
Costing
Work Centers
Work Centers
Cost Center
Work Centers and Routings
Routing
Operation 10
Operation 20
Operation 30
Work Center W1
Cost Center 100
Assembly
Cost Centre 200
Work Center W2 Finishing
Cost Center 200
Work Center W1
Cost Center 100
Assembly
Work Center Category Work centers are allocated to different work center categories
The work center category is used to control the field and screen selectionfor work centers during work center maintenance.
Work Center Category Screen View
Statistical Work center Basic Data
Production Work Center Basic DataDefault ValuesCapacity ValuesSchedulingCost Center Assignment
Cost Center Assignment to Work Center for Operation Costing
Cost Center
Oper 0010 Oper 0020 Oper 0030 Oper 0040
Routing with standard values
Set Up (SET)
Machine (MACH)
Labor (LAB)
Work Centerwith Activitiesduring production
Activity Rates
Set Up $70.00
Mach $60.00
Labor $80.00
Overhead $70.00
Work Center Capacity
Oper 0010 Oper 0020 Oper 0030 Oper 0040
Routing with standard values
Set up Formula
Machine Time Formula
Teardown Formula
Work CenterFormulas
Set up 1.0 hrs
Machine 5.5 hrs
Teardown .5 hrs
Operation Std Values
Work Center Schedule
Use of Formulas in Work Centers
8 hrs
1 hr
7 hrs
1 hr
6 hrs
WorkingHours
BreakTime
WorkingHours less
Breaks
PlannedDowntime
ProductiveWorkingHours
Available Capacity at a Work Center
Routing Structure Views
Routing
Operation 30Operation 20Operation 10
Work Centre: PP-ASSEM
Control Key:- Time Tkts- Costing
Operation Text:Pre-assemble
frame
Std Values:Lab:10 mins
Mach:10 mins
MaterialsComponents
BOM
Process Resource Tool
(PRT)
BOMGroupsBOM
Groups
Production Master DataMaterialsand PRTs
Materialsand PRTs
Bills of Material
Bills of Material RoutingsRoutings Work
CentersWork
Centers
RoutingGroups
RoutingGroups
CostCentersCost
Centers
ComponentsAllocated toOperations
Item Category
Material Type
W/C Category
Operation
Operation types
(Main) operation
Sub-operation
Sub-operation HierarchyCosting
Completion confirmations Scheduling always takes place on the
(main) operation level
The control key defines whether completion confirmations and costing are carried out on the (main) operation level, or on the sub-operation level.
Indicator: group operation sub-operation levelcombined operation (main) operation
Operation / Sub-operation
Operation0010
Operation0010
Operation0020
Operation0020
Sub Operation0010 / 10
at Work Center A1
Sub Operation0010 / 10
at Work Center A1
Sub Operation0010 / 20
at Work Center A2
Sub Operation0010 / 20
at Work Center A2
Sub Operation0010 / 30
at Work Center A3
Sub Operation0010 / 30
at Work Center A3
Schedule at Operation Level
Useful when processing for operation 0010occurs over multiple work centers
Capacity Planning & Costingpossible at Sub Operation Level Level
Material Allocation
Op. 10Op. 10
Op. 20Op. 20
Op. 30Op. 30
Op. 10Op. 10
Op. 30Op. 30
RoutingBOM
ProductProduct
Material
1
1
2
2
01
02
01
02
1
1
1
2
3
1
2
3
1
1
Routing Group
Routing GroupCounter
Material-Routing Allocations
A routing alterative can be allocated to several materials. A material in a plant can be allocated to several alternatives.
Routing Default Values
RoutingRoutingMaterialMaster
MaterialMaster
WorkCenter
WorkCenter
Base Unit of MeasurePlanner GroupShort Text
Control KeyStandard ValuesActivitiesStandards Text KeyHR data
External ProcessingOper 0010Oper 0010
Oper 0020Oper 0020
Oper 0040Oper 0040
Oper 0050Oper 0050
Purch ReqnPurch Reqn
Purch OrdPurch Ord
Vendor ProcVendor Proc
Goods RecGoods Rec
Routing data copied to orderincluding quantities and dates
Purchasing creates P.O.
At goods receipt, the operationis confirmed
Operation Lead Time
Float Before Float AfterOper 0010 Oper 0020 Oper 0030
Queue | Setup | Process | Teardown | Wait | Move
Execution TimeInteroperation Time
Interoperation Time
Operation Lead Time
Routing Operation SequencesStandard
Routing represents a standard sequence defining production procedure
ParallelRouting includes processes which can be performed simultaneously to achieve time efficiencies
SplitRouting includes processes which can/must be split across a numberof work centers
OverlappedRouting defines process where one operation is to overlap with the following operation
The Planning Concept in SAP
SalesPlan
SOP
ProductionPlan
MPS
PlannedIndependent
Requirements
Customer IndependentRequirements
Requirements (Orders) from SD ModuleOffset
Keep Balanced
Order Proposals
MRP
Planned Orders
Production Orders
Purchase Requisitions
Demand ieRequirements
Order proposals, planned orders etc are created and adjusted by running the MRP or MPS programs.
SOP specifies sales quantities for the long and intermediate term to roughly assess the feasibility of sales and operation plans
Sales and Operations Planning at the Product Group or F/G level
Materials may be planned together in Product Groups
Sales quantities are determined for future periods
Production quantities are then determined on the basis of sales
Sales and Operations Planning Functions
MRP II is concerned with integrating individual plans within a supply chain
Profitability Analysis – Revenue and Sales Plans
Sales and Operations Planning – Sales and Production Plans
Master Planning – Demand Program and Master Schedule
Material Requirements Planning – Dependent Requirements and Procurement Plan
Sales and Operations Planning – Planning Levels
Step 1 – Sales Planning of Future Sales Quantities
Copy in from Sales Information System or Profitability Analysis
Automatic forecast based on historical factors
Manual entry of sales quantities
Step 2 – Production Planning
Synchronize production plan with sales plan
Stock level equal to zero
Specify a target days supply by period
Specify a target stock level by period
Enter planning data manually
Sales and Operations Planning – Steps
Step 3 – Disaggregation of Planning Values
Determine the sales and production quantities of product group members
Modify the disaggregated sales planning data and create a production plan for each member
Step 4 – Transfer of Planning Values to MRP
Pass the planned sales and production quantities as independent requirements to demand management
If product group data is transferred, the system automatically disaggregates the planning data to the finished product level
Sales and Operations Planning – Steps
Sales and Operations Planning – Product Groups A Product Group brings together materials according to some criteria such as
similar type or manufacturing process.
Link material master data with product groups
Materials and product groups can be members of more than one group for different planning scenarios
Assignment of members from different plants to the same product group for cross-plant planning
A product group may have a different unit of measure from its members e.g. aggregate in cartons vs pieces
Proportional factors for disaggregation - how the product group quantitiy is distributed to its members
Supports production versions for a material or group
Supports multi-level product group hierarchy
Graphical support of one or more levels
Sales and Production Planning is carried out using a Planning Table which
shows the stock level that results from the sales and operations planning for
both materials and product groups
The Planning Table is divided into:
Sales Quantities
Production Quantities
Target Day’s Supply and Target Stock Levels
Sales and Operations Planning – The Planning Table
Sales and Operations Planning – Creating a Sales Plan
Manual Data Entry and Distribution Functions
Entered directly into the Planning Table as a % or qty
Copying Data from Sales Information System
Planned order, invoiced or delivery quantities
The planning data is aggregated across all materials in the group
Copying from Profitability Analysis
Quantity and performance measures
Copying the Forecast
Aggregates the consumption values for all the materials in the product group
Sales and Operations Planning – Creating a Production Plan
Determine the quantities to produce to meet the sales plan
Synchronize to the Sales Plan – the system copies the sales quantities into the
production quantities
Zero Stock Level – Use existing stock to cover sales quantities. When used up,
production quantities will synchronize with the sales quantities
Target Stock Level – The system determines production quantities based on
sales and target stock levels
Target Days Supply – Coverage is expressed in days
Sales and Operations Planning – Disaggregation
Functionality is based on proportionality factors of product group members
The result of disaggregation is the sales plan of its members
Strategy parameters are used to create the production plan from the sales plan
on to a product group member
Disaggregation can be carried out for the product group or for selected members
only
Sales and Operations Planning – Transferring Data to Demand Management
Transfer a single-level product group (multiple) or individual material (single)
Independent Requirements Parameters
Specify Requirements Type
Version Number
Limit scope of the time period
Master Planning
Demand Management
Planning and Consumption Strategies
Specification of Requirement Quantities and Delivery Dates
Master Production Scheduling
Planning for Master Schedule Items
Planning Time Fence
Interactive MPS
Copy from Sales Plan
Copy from Prodn Plan
Copy from Forecast
Copy from Orig Plan
Demand Management“Demand Program”
Manual Planned Independent
Requirements
Sales Demand fromSales Orders
MRP/MPS
Sales and Operations Planning
Make product for stock in expectation of customer sales
Plan using planned independent requirements for “anonymous” make-to-stock
production.
Use Net or Gross Requirements Planning
Net Requirements -- includes warehouse stock, planned issues and receipts
Gross Requirements -- excludes warehouse stock. Just includes planned and open orders
Example is a shelf stock item such as a bike accessory light
Planning Requirement Type is LSF - make to stock which is used in the planned independent requirements transaction
Sales Order Requirement is KSL - which is sale from stock
Planning Strategy – Make-to Stock
Sale from stock Planning
Production Push
Warehouse Stock Finished Product
Strategy: Make-To-Stock Production
Example: Common shelf items such as a bike accessory (light)
Make product in expectation of customer sales
Plan using planned independent requirements at finished goods level to drive
demand to long lead time components
Typically there is a longer lead time to produce than the customer is
willing to wait for
Sales orders consume the planned independent requirement quantities
Planned quantities that are not consumed by sales orders result in excess stock
Example is a long lead time custom product
Planning Requirement Type is VSF – planning with final assembly
Sales Order Requirement is KSV – which is sales order with consumption
Planning Strategy – Planning with Final Assembly
Sales Order Planning
Production Push
Warehouse Stock Finished Product
Example: Custom furniture such as a cherry table
Final Assembly
to Sales OrderPurchase Produce
MRP without reference to sales order
Planned Independent Requirements
Strategy: Planning with Final Assembly
Planning Strategy – Planning Without Final Assembly
Final assembly is initiated by the customer sales order
Stop production at sub-assembly level
Final assembly pull
Example is automobile assembled with unique combination of features (sub-
assemblies)
Planning Requirement Type is VSE -- planning without final assembly
Sales Order Requirement is KEV -- independent customer order with
consumption
Sales Order
Planning
Production PushFinal Assembly Pull
Warehouse Stock Finished Product
Warehouse StockAssembly 01
Warehouse StockAssembly 02
Example: Option oriented product such as a car
Stop at level
Planned Independent Requirements
Assembly when Sales Order Scheduled
Purchase Produce
Strategy: Planning Without Final Assembly
Planning Strategy – Planning with Planning Material
Planned independent requirements of Planning Material initiate procurement of
the planning bill components
Sales orders for the final assembly create planned orders of the finished product
and reduce planning quantities for the planning material
Possible to plan a family of products from forecast placed on the planning bill.
The planning bill details, through percentages, the quantity required for common
parts
Example is a bike with common sub-assemblies used in many finished items
Planning Requirement Type is VSEF -- planning with planning material
Sales Order Requirement is KEVV -- independent customer order with planning
material
Sales Order Planning
Production PushFinal Assembly Pull
Customer StockFinished Product
PlanningMaterial
Warehouse StockAssembly 01
Warehouse StockAssembly 02
Example: Bikes with the same features except for the color
Purchase Produce Note: Percentages drive lower level demands for sub assemblies
Strategy: Planning with Planning Material
Planned Independent Requirements
Sales Order
Production by Lot Size Pull
Warehouse Stock Finished Product
Example: Combine customer orders for the same item
Strategy: Production by Lot Size
Planning Strategy – Make to Order Production
Sales orders are planned according to sales order number
Produced quantities for each sales order are managed individually
Production and procurement costs are managed in either a settlement order or
a project
Example is a custom product with a unique structure such that it only applies to
a particular customers order
Sales Requirement Type is KE -- independent customer order without
consumption
Sales Order
Production by Lot Size Pull
Warehouse Stock Finished Product
Example: New machinery
Strategy: Make-To-Order Production
MRP Features
MRP
Lot sizing
Order schedulingand generation
Internal productionand external purchasing
Net requirementscalculation
Bill of MaterialExplosion
Forecasting
MRP Overview
Overview Purchased Items MRP
Purchasing
Accounting
Warehousemanagement
system
Goods receipt
Inventory managementValuation
Goods Transfer issue posting
Invoice receipt
Invoice verification
Master data
MaterialBatchesVendors
Customers :
MRP: Reorder Point Planning
Reorder Point
Safety Stock
Order Date Delivery DateTime
Stock
PurchasingProcess Time
Vendor Planned Delivery Time
Desired Delivery DateRelease
Order Date
Forward Scheduling for External Procurement
Today
Goods ReceiptProcess Time
Forward scheduling used for reorder point material
Daily Accumulation:
Sales Orders
Planned Individual Requirements
Reservations
Entriesfrom
Planning File
Warehouse Stock
+
Open Order Proposals
Shortages
Order Proposal
Net Change Planning
Coverage calculation per requirement date
MRP Prerequisites
Activated for MRP PLANT LEVEL
MATERIAL LEVEL Valid MRP Type
Valid Material Status
Material MRP Views Maintained MRP Controller Planned Lead Time MRP Group Lot Size Data
Material Master – MRP I Key Fields
Basic, General, and Lot Size Data
Procurement Type indicates if the material is externally procured, or produced internally or both.
Special Procurement identifies special planning rules which may be used for in-house production or external procurement
MRP Type determines how the material is planned such as MRP, MPS, or consumption based planning
Material Lead Time identifies for material planning the planned delivery days or in-house production days
Lot Size determines which lot-sizing procedure the system uses to calculate order quantities
Material Master – MRP 1Key Fields
Scheduling Parameters
Planning Time Fence: defines a period during which MRP/MPS will not automatically add or reschedule orders
Scheduling Margin: controls the release period, opening period for a material and scheduling floats for production
Release period is the number of working days in the release period
Opening period is the number of working days between the order creation and planned start date
Order floats allows for safety margin before and after production
Planned Delivery: lead-time for purchased material
In-house Production: lead-time for manufactured material
GR Processing Time: goods receipt processing time
Example: dock-to-stock time
Material Master – MRP 2 Key Fields
Availability Check indicates whether the system generates individual or summarized requirements for sales orders for this material and for planning, which MRP items the system includes in the availability check.
Mat./PPC Status is used to limit the usability of materials for certain activities such as, purchasing, bills of material
Material Master MRP 3 Key Fields
Independent Requirements
Consumption Mode: controls consumption of planned independent requirements by customer requirements
Selections: backward, forward, or both
Consumption Periods Backward/Forward: specifies the number of periods of forward or backward consumption
Used in conjunction with consumption mode
Storage Location MRP
MRP Indicator: determines whether or not requirements, for a specific storage location, are planned separately from the overall plan
Reorder Level: used for storage location MRP
Replenishment Quantity: used for storage location MRP
MRP TypesVB
VM
VV
PD
M0
Manual Reorder Point Planning:MRP produces order proposals when stock falls below a “reorder point”. The reorder point and safety stock levels are entered manually
Automatic Reorder Point Planning:The reorder point and safety stock level are calculated based on the forecast results
Forecast PlanningThe latest forecast is copied as requirements which are used to create order proposals
Deterministic PlanningMRP produces order proposal(s) to match the exact quantity of the requirements based on independent and dependent demands
Master Production SchedulingSimilar to PD but used for master schedule items
Lot Sizing
Static Periodic Optimum (Cost )
Lot for Lot
Fixed Lot size
Replenish up tomaximum stocklevel
Daily Lot size
Weekly Lot size
Monthly Lot size
Flexible period
Lot size accordingto planning calen.
Part period balancing
Least unit cost procedure
Dynamic Lot size creation
Groff reorder procedure
MRP: Static Lot Sizing
Lot for Lot Order Quantity: Shortage Quantity = Ordered Quantity
Replenishment up to Maximum Stock Level:
Stock required to achievemaximum stock level set in
the material master
Order Quantity =
Material Fixed Order
Quantity
= ShortageQuantity
Order =Fixed Order
QuantityIf
Order
Order
OrderFixed Lot Size:Shortage Quantity
>Fixed Order Quantity
If
Carrying Out the Planning Run
Total Planning – All materials in a given plant
All materials are reviewed by MRP regardless of activity
Only the materials in a plant that have undergone a change relevant to planning since the last planning run (net change planning)
Planning Interval – Limiting the MRP Planning Interval
Time
Planned requirements andsupply order receipts
example:100 days
MRP Planning Horizon
Planning Run Options for Automatic Creation of Requisitions and Delivery Schedules
MRP Control Parameter: determine whether or not MRP will
automatically create requisitions or delivery schedules
Options are:
Do not automatically create. Only create planned order
Automatically create within the opening period
Automatically create for the entire planning horizon
Opening Period Parameter: allows the user to take advantage of
MRP’s automatic creation features while retaining control over the
number of open purchasing documents
MRP List
MRP Controller
Group of Materials for which controller
is responsible
Controller’s MRP Listing
Goods ReceiptGoods Issues
MRP Order Proposals and Planner Messages
from MRP Planning run.
Planner can drill down to review material movement activity
Stock Requirements List
Date MRP Element Supply/Demand Ref EM Quantity Available
01/01 STOCK 10001/08 ORDER Sales Order 25 7501/15 PL ORD 1000 120 05 100 17502/01 -----------------------------------------------------> Planning Time Fence
Stock Requirements List brings together all the supply orders, independent and dependent demands and stock balances for the material. MRP makesorder proposals to balance the supply/demand position for the material
MRPPlanningResult
MRP List vs Stock Requirements List
The MRP List displays the result of the last planning run
The Stock Requirements List displays the most up-to-date stock and
requirements situation
MRPPlanningProcess
MRPPlanningProcess
Last planningrun results
Stock RequirementsList uses current data
Current Stock, Rqmts, Balances, planned Receipts, Issues
PurchasingProcess Time
Vendor Planned Delivery Time
Desired Delivery DateCalculated OrderRelease Date
Backward Scheduling for External Procurement
Future RequirementDate
Goods ReceiptProcess Time
MRP determines the basic scheduling dates using backward scheduling If the release date lies in the past, the system automatically switches to
forward scheduling
MRP PlanningDate -- today
MRP Planning Lead Time
Order ReleaseProcess Time
In-houseProduction Time
Order Finish Date
OrderStart Date
Backward Scheduling for In-house Production
Future Requirement
Date
Goods ReceiptProcess Time
MRP determines the basic scheduling dates using backward scheduling
If the release date lies in the past, the system automatically swithches to forward scheduling
MRP PlanningDate -- today
MRP Planning Lead Time
Order Release
Date
E1
Independent RequirementsCustomer Requirements
Planned Orders
Dependent Requirements
B2B1
R1 R2 R3
Planned Orders
DependentRequirements
DependentRequirements
Level 0
Level 2
Level 1Planned Orders
Planned OrdersPlanned OrdersPlanned Orders
= Demand= Supply
Planning Structure
Multi-Level
Order Proposals: Planned Orders
Procurement Type isIn-house Production
MRPMRP
Controller
Planned OrderOrder QtyOrder DateCapacity Reqts.Resource Reqts.
Planned OrderOrder QtyOrder DateCapacity Reqts.Resource Reqts.
Production Order
Planning for In-house Production
PlannedOrder
PlannedOrder
ProductionOrder
Auto Change/ Delete if situation changes
AutoCreation
Collective Conversioninto Production Order
Manual changes/deletion
ManualCreation
Planning Run MRP Controller
Individual Conversioninto Production Order
ProductionOrder Release
The Production Cycle
Issue Materials to Order
SelectBOM
SelectRouting
ScheduleTimes & Dates
CalculateCapacity
Purchase Requisitions
GoodsIssue
Production Order
CalculatePlanned Costs
ReleaseOrder
Check Availability
Print Shop Floor
Papers
CreateOrder
CreateRequired Purchases
ConfirmCompletion
Receive complete goods into stock
GoodsReceipt
Confirmation Slip
CalculateActual Costs
ActualLabor
Production Order CreationManual
Order CreationOrder Proposal
MRP Conversion
DetermineOrder Type
RoutingSelection
Lead TimeScheduling
Bill of MaterialSelection
Enter start or finish datedepending on scheduling direction
Component Overrides Material Reservations Item Categories
Alternate Sequence Assignments One operation is required
Changes are allowedbefore order release
OAK BROOK TECHNOLOGIES
Production Order Release
Production OrderReady for Release
Material AvailabilityCheck
Order orOperation Release
Shop Paper Printing Possible
MaterialWithdrawals Possible
Order release is carried out manually
Uses checking rules defined in configuration
On-line or in background Pick List, Confirmation Slips,...
Material Availability Check
Stock on Hand
150 Units
Reservationfor
50 UnitsNetAvailable 150 100 300 100
Planned Orderfor
200 Units
Dependent Requirement
for 200 Units
Requirement for 50 Units are Available
Goods Movement for a Production Order
Material 1
Material 2
Production
Goods receipt of Material 3
Goods Issue Consumption ofMaterial 1 and 2
Reservation
Planned Goods Issue
Unplanned Goods Issue
Goods issues only apply to stock items
Goods Issue Results
Goods Issue Posting
UpdateReservations
G/L AccountUpdate
Accounting
Material Document
MaterialUsage
Statistics
Cost ObjectAllocation
Completion Confirmations
Production OrderOperations
0010 - Assemble Board
0020 - Assemble Case
0030 - Assemble unit
0040 - Final Test
Production OrderOperations
0010 - Assemble Board
0020 - Assemble Case
0030 - Assemble unit
0040 - Final Test
C
ConfirmOperation 0010
Activities
ConfirmOperation 0010
Activities
ConfirmOperation 0020
Activities
ConfirmOperation 0020
Activities
ConfirmOperation 0030
Activities
ConfirmOperation 0030
Activities
ConfirmOperation 0040
Activities
ConfirmOperation 0040
Activities
Partial or Final Confirmation Single or Collective Confirmation Milestone Confirmation Reduction of Capacity Requirements Determination of Actual Costs
Milestone
Confirmation Data
Quantity
Dates
Labor
Yield Scrap Quantity Scrap Reason
Start date Finish date
Work Center Personnel Number Qualification Wage Group Wage Type