mrp ecc 6

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MRP

Bill of Material (BOM)

A critical input to the MRP process is the bill of material (BOM), which shows how components

and semifinished products are combined to produce the final product. A graphical representation

of the BOM for the NR!A bar is shown below"

#he raw materials (Oats, $heat erm, etc.) are combined in a mi%er to produce a &'' lb. batch

of dough. #he dough is then transferred to the baing line, where it is formed into bars, baed

and pacaged. or simplicit*, we ha+e ignored the wrappers, bo%es and cases that are needed toproduce a complete case of itter nacer bars.

#o +iew the BOMs for itter nacer, follow the menu path"

Logistics Production Master Data Bills of Material Reporting BOM

Explosion Material BOM Multilevel Material BOM Browser

$hich will produce the following screen"

-

.. NR/A

(case)

.. 0ough NR/A

(lb)

.. Oats

(lb)

.. $heat erm

(lb)

.. 1innamon

(lb)

.. Nutmeg

(lb)

.. 1lo+es

(lb)

.. 2one*

(lb)

.. 3it4Min Powder

(lb)

.. 1arob 1hips

(lb)

.. Raisins

(lb)

.. NR/A

(case)

.. 0ough NR/A

(lb)

.. Oats

(lb)

.. $heat erm

(lb)

.. 1innamon

(lb)

.. Nutmeg

(lb)

.. 1lo+es

(lb)

.. 2one*

(lb)

.. 3it4Min Powder

(lb)

.. 1arob 1hips

(lb)

.. Raisins

(lb)

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MRP

5nter ##F!! for Material,##P"for Plant and PP! (P P ero One) for BOM Application,

then clic on the e%ecute icon ( ), which will produce the following screen"

6

#his screen shows 7 cases of snac bars re8uires &'' lbs. of

dough, and that to produce &'' lbs. of dough, 9'' lbs. ofOats, &' lbs. of $heat erm, etc. are re8uired

5nter ##F!! for Material,

##P" for Plant and PP!

for BOM Application, thenclic on the e%ecute icon

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MRP

#his screen shows the recipe re8uired for se+en cases of dough. #o learn more about an* of the

materials re8uired to mae an NR!A bar, select the item and clic on the detail icon. or

e%ample, clicing on the Nutmeg row and clicing on the detail icon ( ) will call up the

material master for Nutmeg"

#he Material Master is a multi!tabbed screen that contains all information about a material used

b* an* module in the AP 5RP s*stem.

1lic on the bac icon ( ) and then, with the nutmeg selected, clic on the where!used icon (

), which will call up the following screen"

9

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MRP

#his screen shows that Nutmeg is used in two products:NR!A and NR!B bars. According

to help.sap.com, the where!used list can be used to"

0etermine re8uirements for a specific material

elect products that are affected b* a change to an indi+idual part

ind assemblies that will be dela*ed if, for e%ample, there is a dela* in the deli+er* of a

raw material

1alculate the effect on the cost of a product if the price of a raw material rises

1lic on the e%it icon ( ) until *ou return to the AP 5as* Access screen.

Displa$ %or&centers

Production is carried out at worcenters. ;n the AP 5RP s*stem, worcenters can representmachines or groups of machines, production lines, assembl* lines, emplo*ees or groups of

emplo*ees.

#o displa* the worcenters used for itter nacer

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MRP

5nter ##P"for Plant, then clic on the search icon to call up the search window for $orcenters"

Mae sure that *ou select the %or& 'enter 'ategor$tab and that ##P"is entered for Plant,then clic on the enter icon ( ) to pull up a list of wor centers"

&

5nter ##P" for plant, then clic

on the $or center field, then

clic on the search icon

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MRP

0ouble!clic on the BEL*+Erow to select it"

#hen clic on the Basic 0ata icon to get the following screen"

>

1lic on the Basic data icon

with BA?5@;N5 selected

!

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MRP

#his multi!tabbed screen contains all rele+ant data for the worcenter. 1lic on the e%it icon () until *ou return to the AP 5as* Access screen.

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MRP

Routings

Routings define the worcenters that a product must +isit in the production process. Routings

also define the operations that must be performed at each worcenter and the components thatare needed for each operation.

, 'reate ##F!! (+R-. /ar) and ##F! (+R-.B /ar) Routings

#o create a routing for the NR!A bars, follow the menu path"

Logistics Production Master Data Routings Routings 0tandard Routings

'reate

which will produce the following screen"

5nter ##F!! for material, ##P" for plant and ##-roupfor group, clic on the enter icon ( )

and the following screen will appear"

5nter ##F!! for material, ##P"

for plant and ##-roup for roup,then clic on the enter icon

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MRP

5nter for sage and 1for tatus, then clic on the Operations icon ( ),


5nter BEL*+E for $or center, BEfor 1ontrol e*, Ba&e Doug2for 0escription, 3 forBase Cuantit*, then clic on the enter icon ( )"

D

5nter for sage and 1for tatus,

then clic on the Operations icon

5nter BEL*+E for $or center5nter BEfor 1ontrol e*

5nter Ba&e Doug2for 0escription

5nter 3for Base Cuantit*#hen clic on the enter icon

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MRP

5nter 4!for setup time (how long it taes to change the baeline from one t*pe of bar to another)and machine time (how long it taes to bae 7 cases of snac bars). 1lic on the 1ompAlloc

(component allocation) icon ( ), which will produce the following screen"

elect the onl* component listed (AP determined the list of components from the BOM) andthen clic on the New assignment icon ( ), which will bring up the

following pop!up window"

-'

elect the onl* component listed and then

clic on the New assignment icon

croll o+er and enter 4!for etup and 4!for Machine,

then clic on the 1ompAlloc (component allocation) icon

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MRP

1lic on the Operation4Acti+it* list icon to get the list of operations for this routing"

1lic on the enter icon ( ) to allocate the material (dough) to the onl* operation on the routing(bae dough), then clic on the sa+e icon ( ) to sa+e the routing. Eou will get a message lie

the following"

Return to the beginning of section - and

repeat the process to create a routing for material ##F! (NR!Bbars).

All entries are the same as for the ##F!! (NR!Abars).

--

1lic on Oper.4Act.(operation4acti+it*) list

1lic on the enter icon

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MRP

5, 'reate Routings for 6aterial ##05!! (doug2 for +R-. /ars)

and ##05! (doug2 for +R-.B /ars)

#o create a routing for 6'' (dough for NR!A bars), again follow the menu path"

Logistics Production Master Data Routings Routings 0tandard Routings

'reate


5nter ##05!! (dough for NR!A bars), ##P"for Plant and ##-roup for group, then clic on

the enter icon ( ) and the following screen will appear"

-6

5nter ##05!! for material, ##P"

for plant and ##-roup for roup,

then clic on the enter icon

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MRP

croll o+er and enter 4! for etup and 4! for Machine, then and clic on the 1ompAlloc

(component allocation) icon ( ) to allocate components to the operations. #his

will produce the following screen"

elect all components b* clicing on the select all icon ( ), then clic on the New assignment

icon ( ), which will bring up the following pop!up window"

-=

elect all components, then clic on the

New assignment icon

croll o+er and enter 4! for etup and 4!for Machine, then clic on 1om Alloc

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MRP

1lic on the Operation4Acti+it* list icon to get the list of operations for this routing"

1lic on the enter icon ( ) to allocate the materials to the onl* operation on the routing (mi%dough), then clic on the sa+e icon ( ) to sa+e the routing. Eou will get a message lie the

following"

Return to the beginning of section 6 and repeat the process to create a

routing for ##05! (dough for NR!B bars).

All entries are the same as for ##05!! (dough for NR!A bars).

-&

1lic on Oper.4Act.(operation4acti+it*) list

1lic on the enter icon

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MRP

4, 'reate Product -roup

Man* firms produce hundreds of products, and planning for each product indi+iduall* is not

feasible or desirable. $hat these firms do is create product groups, and then plan production fora small number of product groups and then transfer these plans to indi+idual products based on

historic percentages. $hile itter nacer does not ha+e a large of number products, we will use

the product group process an*wa*.

#o create a product group for itter nacer, follow the menu path"

Logistics Production 0OP Product -roup 'reate


5nter ## +R- -roup and ## +R-. and +R-.B Barsfor the title of the product group, enter

##P"for Plant and '0for Base unit then clic on the enter icon ( ). #his will produce the

following screen"

->

5nter ## +R- -roup and

## +R-. and +R-.B Bars

5nter ##P"for Plant

5nter '0for Base unit#hen clic on the enter icon

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MRP

5nter ##F!!and ##F! for the two members of the group. or both members, enter ##P" for

Plnt and for FAggr. fact.G 5nter 3!for the Proportion for +R-.bars and 4!for theproportion for +R-.Bbars. #hese proportions mean that whate+er production is planned for the

NR group, it will be assumed that 7'H of the production should be NR!A bars and 9'H

should be NR!B bars. 1lic on the enter icon ( ) to confirm that *ou ha+e the correct

products in the group"

1lic on the sa+e icon ( ) to sa+e the product group.

-7

5nter ##F!!and ##F! for member numbers

5nter ##P" for Plnt, for Aggr. fact. for both bars5nter 3!for the Proportion for +R-.and 4!for the

proportion for +R-.Bbars

1onfirm the two products are the

NR!A and NR!B bars

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MRP

1, Run MRP

$e can run the MRP process on our new product group. #o do this, follow the menu path"

Logistics Production MRP Planning 0ingle.*te69 Multi.Level Planning


5nter the information shown abo+e, then clic on the enter icon ( ). #his will produce thefollowing message"

1lic on the enter icon ( ) again and *ou should get a report lie the following"

-

5nter (or search for) ## +R- -RO:P for Material

5nter ##P"for Plant1hec Product groupfor cope of planning

1onfirm the following MRP control parameters"

Processing e*" +E"';1reate purchase reg." 50eli+er* schedules" 41reate MRP list"

Planning mode" cheduling"

#hen clic on the enter icon

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MRP

#he details of *our report ma* be different, but that is not a problem. As long as *ou don

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MRP

5nter ##F!! (NR!A bars) and ##P"for Plant, then clic on the enter icon ( ). #his willproduce the following screen"

#his screen shows that we ha+e no material on hand, no sales orders and, as we ha+en

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MRP

#here is an easier wa* to +iew the toc4Re8uirements list for different materials. se the bacicon ( ) to get to the first screen of the toc4Re8uirements list"

5nter !##for MRP controller, then clic on the enter icon ( ), which will produce the followingscreen"

6-

1lic on the 'ollective accesstab.

5nter ##P" for Plant and !##for MRP

controller, then clic on the enter icon

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MRP

elect ## 'anola and then clic on the 0ispla* elected stoc4re8uirements lists icon (

), which will tae *ou to the standard

toc4Re8uirements list"

66

elect ## 'anola and then clic on the

0ispla* elected stoc4re8uirements lists icon

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MRP

1lic on the bac icon, which will bring *ou bac to the list of *our materials. Note that there is

now a chec mar ne%t to ## 'anolain the column lread$ accessed>

#his feature helps the MRP controller eep trac of which materials the* ha+e alread* re+iewed.

#he traffic lights also help the MRP controller focus on critical materials. #he traffic light

concept is used in man* areas of the AP s*stem to help the user prioritiIe tass. ;n our case, thematerials with a red traffic light ha+e a non!Iero safet* stoc specified. As there ha+e been no

goods receipts for these materials, the* are below their safet* stoc le+els and, hence, the red

lights.

;t is possible to customiIe the traffic lights. 1lic on the 0efine traffic lights icon (

), which will produce the following icon"

69

1lic on the bac icon

lread$ accessed

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MRP

#his screen shows that the AP s*stem pro+ides the user with a great deal of fle%ibilit* in how toconfigure the traffic light s*stem. 1lic on the cancel icon ( ) to close this window.

$e will eep the toc4Re8uirements list open so that we can easil* re+iew the results of theMRP process. $e will use the following materials to e+aluate the MRP process"

## +R-.

## +R-.B

## Doug2 +R-.

## Doug2 +R-.B

## 'anola

$hich are illustrated in the following figure"

6=

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MRP

At this point, the toc4Re8uirements list for these materials is prett* boring as there is no

production scheduled.

8, 'reate 0ales and Operations Plan

;n AP, the ales and Operations Planning process is one wa* to create demand for the MRP

process. ;n practice, ales and Operations Planning is the process where operations and

mareting agree on a demand forecast and a production plan to meet that demand. ;deall*, thisales and Operations Plan should optimiIe profit for the organiIation.

#o perform ales and Operations Planning, open a second session b* following the pull!down

menu path"

0$ste6'reate session;n this second session, follow the menu path"

Logistics Production 0OP Planning For Product -roup 'reate


6&

.. NR/A(case)

.. 0ough NR/A

(lb)

.. Oats

(lb)

.. $heat erm

(lb)

.. 1innamon

(lb)

.. Nutmeg

(lb)

.. 1lo+es

(lb)

.. 2one*

(gal)

.. 3it4Min Powder

(lb)

.. 1arob 1hips

(lb)

.. Raisins

(lb)

.. 1anola

(gal)

.. NR/B(case)

.. 0ough NR/B

(lb)

.. roup NR

(case)

.. NR/A(case)

.. 0ough NR/A

(lb)

.. Oats

(lb)

.. $heat erm

(lb)

.. 1innamon

(lb)

.. Nutmeg

(lb)

.. 1lo+es

(lb)

.. 2one*

(gal)

.. 3it4Min Powder

(lb)

.. 1arob 1hips

(lb)

.. Raisins

(lb)

.. 1anola

(gal)

.. NR/B(case)

.. 0ough NR/B

(lb)

.. roup NR

(case)

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MRP

5nter ## +R- -roupand ##P", then clic on the enter icon ( ), which will produce thefollowing pop!up window"

1lic on the enter icon ( ), then the following screen will appear"

6>

5nter ## +R- -roupand ##P",then clic on the enter icon

5nter !##for 3ersion number and

?ersion ##for +ersion description

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MRP

#here are a number of wa*s to de+elop a sales forecast in the AP 5RP s*stem, howe+er, we

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MRP

#o do this, enter 8, 8and 58for #arget stoc le+el, then follow the menu path"

Edit'reate productn plan"arget stoc& leveland the s*stem will create a production plan that allows for a #arget stoc le+el"

Note that the s*stem calculates a production plan that will produce enough to meet the sales le+el

and ha+e the appropriate #arget stoc le+el. #he s*stem will also calculate the Da$@s suppl$,

which is calculates as"

6

5nter 8, 8and 58for #arget stoc le+el

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MRP

( )le+elstoc(#arget,ales

monthin0a*ssuppl*s0a*K =

Note that Da$s in 6ont2is taen from the factor* calendar, which considers weeends, holida*sand number of da*s in the month.

1lic on the sa+e icon ( ) to sa+e the ales and Operations Plan (OP). Eou should get amessage lie the following"

A, "ransfer 0ales and Operations Plan to Products

Ne%t, we ha+e to transfer the production plan de+eloped in the 0OPtransaction to the products

in the product group. #o do this, follow the menu path"

Logistics Production 0OP Disaggregation "ransfer Product -roup to

Planning


6D

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MRP

5nter the information shown abo+e, then clic on the "ransfer nowicon ( ).

#his will produce the following screen"

0ouble!chec that *ou entered !##for the 3ersion, then clic on the enter icon ( ), which will

produce the following message"

9'

5nter Product group ## +R- -RO:P andPlant ##P"5nter !##for 3ersion

elect Prod,plan for 6at, or P- 6e6/ers

as proportion of P-

1hec *nvisi/le transfer1hec ctive

then clic on the #ransfer now icon

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MRP

$hile this sounds ominous, ignore it (it

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#he results from transferring the ales and Operations Plan are not *et displa*ed. #o update the

toc4Re8uirements list, clic on the refresh icon ( )"

Note that there are planned independent re8uirements for three months. $here did the 8uantit*

-- come from in this monthL ;n the ales and Operations plan, the production 8uantit* planned

for NR bars in this month was -& (-' for sales, & for the target stoc le+el). e+ent* percent of-& is -- (actuall*, -'.&). #hirt* percent of -& is = (actuall* =.&).

1hec on ## 'anolato +erif* that it has remained unchanged"

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MRP

3, 'reate Planned Orders wit2 MRP

#o meet the demand that is predicted b* the OP process, the MRP process will create planned

orders. #hese planned orders can be con+erted into production orders (for internall*

manufactured materials) and purchase re8uisitions (for e%ternall* procured materials). #o dothis, we will repeat the MRP process as we did before. #o run MRP, switch bac to the othersession (the one without the toc4Re8uirements @ist) and follow the menu path"

Logistics Production MRP Planning 0ingle.*te69 Multi.Level Planning


99

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MRP

5nter the information shown abo+e, then clic on the enter icon ( ). #his will produce thefollowing message"

1lic on the enter icon ( ) again and *ou should get a report lie the following"

9=

5nter (or search for) ## +R- -RO:P for Material

5nter ##P"for Plant

1hec Product groupfor cope of planning

1onfirm the following MRP control parameters"Processing e*" +E"';1reate purchase reg." 5

0eli+er* schedules" 4

1reate MRP list" Planning mode" cheduling"

#hen clic on the enter icon

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MRP

#his message shows that, because of the demand we created in the OP process, there ha+e been

a number of calculations made in the MRP process.

9&

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MRP

witch to the session with the toc4Re8uirements list, and loo at the material ##F!! (doughtfor NR!A bars). Remember to use the refresh icon ( )"

Note that the AP s*stem has created production orders of 7 cases (which is the fi%ed lot siIe for

NR!A bars) to meet the demand. 1hec on the material ##05!! (dough for NR!B bars) b*entering the material number (6'') and clicing on the refresh icon ( )"

9>

Notice that the AP s*stem has created planned orders to meet the predicted demand

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MRP

As the dough has a lot siIe for dough is &'' lb., the AP s*stem has create planned orders in &''

lb. batches. 1hec on the material ##R4!!, 1anola"

97

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MRP

Note that the AP s*stem has created a planned order for &'' gal. of 1anola to meet the

predicted demand.

Print the stoc4re8uirements list for 1anola oil to hand in b* clicing on the print icon ( ).

Be sure to neatl$ print $our na6e on a printout of t2e0toc&

mrp ecc 6

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