sap r/3 4.6 lo210 production planning

SAP AG 1999

LO210 Production Planning

Production PlanningProduction Planning

��System R/3

��Release 4.6C

��September 2000

��5004 1851

SAP AG 1999

Copyright 2000 SAP AG. All rights reserved.

Neither this training manual nor any part thereof maybe copied or reproduced in any form or by any means,or translated into another language, without the priorconsent of SAP AG. The information contained in thisdocument is subject to change and supplement without priornotice.

All rights reserved.

Copyright

Trademarks:

��Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.

��Microsoft®, WINDOWS®, NT®, EXCEL®, Word® and SQL Server® are registered trademarks of Microsoft Corporation.

��IBM®, DB2®, OS/2®, DB2/6000®, Parallel Sysplex®, MVS/ESA®, RS/6000®, AIX®, S/390®, AS/400®, OS/390®, and OS/400® are registered trademarks of IBM Corporation.

��ORACLE® is a registered trademark of ORACLE Corporation, California, USA. ��INFORMIX®-OnLine for SAP and Informix® Dynamic ServerTM are registered trademarks of

Informix Software Incorporated. ��UNIX®, X/Open®, OSF/1®, and Motif® are registered trademarks of The Open Group. ��HTML, DHTML, XML, XHTML are trademarks or registered trademarks of W3C®, World Wide

Web Consortium, Laboratory for Computer Science NE43-358, Massachusetts Institute of Technology, 545 Technology Square, Cambridge, MA 02139.

��JAVA® is a registered trademark of Sun Microsystems, Inc. , 901 San Antonio Road, Palo Alto, CA 94303 USA.

��JAVASCRIPT® is a registered trademark of Sun Microsystems, Inc., used under license for technology invented and implemented by Netscape.

��SAP, SAP Logo, mySAP.com, mySAP.com Marketplace, mySAP.com Workplace, mySAP.com Business Scenarios, mySAP.com Application Hosting, WebFlow, R/2, R/3, RIVA, ABAP™, SAP Business Workflow, SAP EarlyWatch, SAP ArchiveLink, BAPI, SAPPHIRE, Management Cockpit, SEM, are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other products mentioned are trademarks or registered trademarks of their respective companies.

��Design: SAP Communications Media

SAP AG 1999

Production Planning

Level 2 Level 3

ManufacturingPlanning &Execution forDiscrete & Repetitive

LO050 5 days

EngineeringChangeManagement

LO980 3 days

BatchManagement

LO955 3 days

KANBAN

LO235 2 days

Classification

LO985 3 days Special Features ofLIS in Production

LO275 2 days

Logistics InfoPlanning

LO935 2 days

CAP Calculation ofStandard Values

LO720 2 days

RepetitiveManufacturing

LO225 3 days

Capacity Planning

LO230 5 days

LogisticsInformationSystem (LIS)Reporting

LO930 2 days

Basic DataPart 2

LO206 3 days Basic Data forDiscreteManufacturing

LO205 3 days

ProductionOrders

LO215 5 days

ProductionPlanning

LO210 5 days

VariantConfiguration Part 1

LO990 5 days

VariantConfiguration Part 2

LO991 3 days

SAP AG 1999

z LO050 - Manufacturing Planning and Execution for Discreteand Repetitive

z LO205 - Basic Data for Discrete Manufacturing

Also recommended:

z LO206 - Basic Data Part 2

Course Prerequisites

SAP AG 1999

Target Group

z Audience:� Project team members and othre individuals

responsible for planning and scheduling.

z Duration: 5 Days

Notes for the user

��The training material is not suitable for a self-teach program. The course is only complete with the explanations from the instructor. There is space to note this additional information in the training material.

© SAP AG LO210 1-1

SAP AG 1999

z Course Goals

z Course Objectives

z Course Content

z Course Overview Diagram

z Main Business Scenario

Introduction

Contents:

© SAP AG LO210 1-2

SAP AG 1999

z explain the processes and implementation optionsof the planning strategies for non-configurableproducts,

z describe the process of long-term planning,

z use the most important transactions in MasterProduction Scheduling and Material RequirementsPlanning, analyze the Customizing parameters forMaterial Requirments Planning and evaluate theplanning results,

z describe the role of MRP areas in the planningprocess.

This course will prepare you to:

Course Goals

© SAP AG LO210 1-3

SAP AG 1999

z set up and use planning strategies andCustomizing for non-configurable products,

z implement long-term planning and masterproduction scheduling in production planning,

z execute material requirements planning andevaluate the results,

z configure the technical processes and relatedCustomizing,

z describe the planning process whereby MRPareas are used.

At the conclusion of this course, you will be ableto

Course Objectives

© SAP AG LO210 1-4

SAP AG 1999

Unit 6 Master Production Scheduling

Unit 7 Long-Term Planning

Unit 8 Technical Information onHow the Planning Run Works

Unit 9 MRP Areas

Unit 1 Overview

Unit 2 Introduction

Unit 3 Demand Management

Unit 4 MRP Run

Unit 5 Processing MRP Results

Preface

Appendix

Course Content

© SAP AG LO210 1-5

SAP AG 1999

Course Overview Diagram

22 Overview

44 MRP Run

Introduction11

33 Demand Management

Processing MRP Results55

Discontinued Parts1010

99 MRP Areas

88Technical Information onHow the Planning Run Works

66 MPS

77 Long-Term Planning

© SAP AG LO210 1-6

SAP AG 1999

z You are in a company, which manufactures pumps,as a member of a project team. This team isresponsible for the implementation of productionplanning, ranging from demand management tomaterial requirements planning. The pumps are notconfigurable.

z You want to apply planning strategies for theprocurement of non-configurable pumps in demandmanagement. The demand programs are to besimulated for the medium and long term. Certainproducts are processed more precisely using masterproduction scheduling, before material requirementsplanning is executed for all materials in the company.

Main Business Scenario

© SAP AG LO210 2-1

SAP AG 1999

Overview

Contents:

z Overview of Production Planning in theR/3 System

z MRP procedure in the R/3 System

© SAP AG LO210 2-2

SAP AG 1999

Overview: Unit Objectives

z describe the steps involved in the productionplanning process,

z name the different MRP procedures in the SAPSystem.

At the conclusion of this unit, you will be able to:

© SAP AG LO210 2-3

SAP AG 1999

Course Overview Diagram 2

11 Overview

44 MRP Run

Introduction22



Appendix1010

99 MRP Areas


66 Master Production Scheduling


© SAP AG LO210 2-4

SAP AG 1999

APO as a Planning Tool

APOAPOR/3R/3

GlobalATP

GlobalATP

DeploymentDeployment

SAP BW

Historicaldata

Keyfigures

Externaldata

SAP BW

Historicaldata

Keyfigures

Externaldata

Demand PlanningDemand Planning

Sales

Order

StockMgmt

Productionand

detailedscheduling

Productionand

detailedscheduling

SupplyNetworkPlanning

SupplyNetworkPlanning

Supply Chain Cockpit

��APO enables the global mapping, planning and monitoring of all processes in the logistics chain at a detailed level.

��Open standard interfaces allow a smooth integration of SAP systems (highly integrated solution for R/3), old systems and systems from other providers.

��APO has high efficiency levels with liveCache, an SAP tool for memory-resident data processing.

��APO is purely a planning tool: Inventory management, sales order creation, order execution and manufacturing execution take place outside of the APO system, for example in an R/3 system.

��You can use APO to create and change orders (planned, production and process orders) as results of a planning run.

��You can linke the APO system to R/3 using the APO-Core-Interface (CIF). Data thereby remains constant in both (APO and R/3).

��Planning with APO is covered in detail in the courses AP010 to AP230.

© SAP AG LO210 2-5

SAP AG 1999

Production Planning and Control

Sales

DemandManagement

Long-TermPlanning

MasterProductionScheduling

Sales &Sales &Operations PlanningOperations Planning

ProductionPlanning

MRP

Period-BasedPlanning and

Manufacturing

DiscreteManufacturing

Project-BasedManufacturing

ProcessManufacturing

KANBANKANBAN

Plnd Indep.Requirements

Dates andquantities forassemblies

Simulation

© SAP AG LO210 2-6

SAP AG 1999

Classic Planning Levels

OK?

Feed

back

Product group

Assembly 1 Assembly 2

Part 1 Part 2

Product 1 Product 2

SOP

OK?

OK?

OK?

Region 1 Region 2

MP

CO/PA

MRP

Profitability AnalysisProfitability Analysis- Revenue plans- Revenue plans- Sales plans (quantities)- Sales plans (quantities)

Sales & Operations PlanningSales & Operations Planning- Sales plan- Sales plan- Production plan- Production plan

Production PlanningProduction Planning- Demand program- Demand program- Adjusted master plan- Adjusted master plan

MRPMRP- Dependent requirements- Dependent requirements- Master plan- Master plan- Procurement plan- Procurement plan

© SAP AG LO210 2-7

SAP AG 1999

Production Planning

MPS

MRPMRP

ProductionProductionControlControlDemandDemand

ManagementManagement

SettlementSettlement

LongLong--TermTermPlanningPlanning

CapacityPlanningCapacityPlanning

InventoryMgmt

InventoryMgmt

SalesSales & &OperationsOperationsPlanningPlanning

Controlling

© SAP AG LO210 2-8

SAP AG 1999

MRP Procedures

based on consumption in the past

MRP ProceduresMRP Procedures

controlled byMRP type in

Material master

MRPConsumption-based

Reorder pointplanning

Forecast-basedplanning

Time-phasedplanning

��Consumption-based planning is based on consumption values in the past and uses forecasts or statistical procedures to determine future requirements. Consumption-based planning is characterized by its simplicity and is mainly used for B and C parts with a low value.

��In contrast to consumption-based planning, Material requirements planning takes current and future sales as it’s reference point and is executed for the whole BOM structure. The planned and, depending on planning strategy, actual requirements quantities trigger the MRP calculation. It produces better planning results than does consumption-based planning.

��In this course, we will be dealing with material requirements planning.

© SAP AG LO210 2-9

SAP AG 1999

Consumption-Based Planning

using reorder point planning as an example

Replenishmentlead time

Stock Lot size

Reorderpoint

Safetystock

Reorder point Deliverydate

Time

��Manual reorder point planning is a typical process in consumption-based planning. It is characterized by its simplicity.

��You control the planning using a manually entered reorder point (for example, 50 pieces). During the planning run, the system checks only whether stock has fallen below this reorder point or not (that is, whether there are less than 50 pieces in stock). If that is the case, the system triggers procurement of the amount of the lot size (a fixed lot size of 500 pieces for example).

��If schedule lines are created directly by the planning run, for example, for materials procured externally, the administrative work for this sort of planning is minimal.

��Consumption-based planning is appropriate only for materials with demand that stays relatively consistent. Real-time inventory management is also necessary.

© SAP AG LO210 2-10

SAP AG 1999

Overview: Unit Summary

z Alongside Production Planning, SAP also offersAPO as a planning tool for special tasks in theR/3 System.

z The basic MRP procedure in the R/3 System isdefined using the MRP type in the materialmaster: MRP or consumption-based planning.

© SAP AG LO210 2-11

Exercises

Unit: Overview Topic: Production Planning Procedure in the R/3 System

At the end of these exercises, you will be able to:

• execute the steps required for the production planning process in the R/3 System.

Precision Pumps Inc uses the make-to-stock production strategy. Pumps are produced to stock and then sold.

1-1 In plant 1000, enter a demand program (planned independent requirements) for material T-F1## (replace ## with your group number). Select make-to-stock production (LSF requirements) for the first 8 weeks of your planning period. To do this, proceed as follows:

1-1-1 Maintain the material master: Make sure in the material master for pump T-F1## in the MRP 3 view that the strategy group PP has been entered for plant 1000.

1-1-2 In Demand Management, enter the following planned independent requirements (requirement type LSF) for material T-F1## in plant 1000. Set the planning period to week format by entering the indicator W in the planning period field in the initial screen for the transaction. Enter the following planned independent requirements for pump T-F1## in plant 1000:

Current week + 5

Current week +6

Current week +7

... Current week +12

25 25 25 ... 25

(total quantity: 200 pieces)

Save your entries.

1-1-3 Starting from the MRP menu, display the stock/requirements list for material T-F1## in plant 1000. Note down the exact date of the second LSF requirement: ___________________

© SAP AG LO210 2-12

1-2 Starting from the MRP menu, carry out multi-level, single-item planning for pump T-F1##. In the initial screen of the planning run, enter the following creation indicators:

Processing key NETCH

Create pur.req. 2

Delivery schedules 3

Create MRP list 1

Planning mode 1

Scheduling 1

Also plan unchanged components Select

Display results before they are saved Do not select

Display mat. list Select

Simulation mode Do not select

1-2-1 In this initial screen for single-item, multi-level MRP, save the settings you have made for the MRP run by selecting the menu path Settings -> Save.

1-2-2 Start the MRP run by choosing Enter and confirm the system warning by choosing Enter again.

1-3 Once the MRP run has been carried out successfully, the system displays the statistics.

1-3-1 Choose the pushbutton List of materials and select the row containing your pump T-F1## by selecting the button at the beginning of the row with a mouseclick. Goto the Display of the stock/requirements list for the material. You can now see the planned orders created for the requirements.

1-3-2 Display one of the planned orders by selecting it and choosing Display element. Select the Component overview pushbutton and compare the order start date of the end product T-F1## with the requirements date for the assemblies T-B1##, T-B2## and T-B3##. Explain the logic behind the date.

____________________________________________________

Exit the display of the planned order.

© SAP AG LO210 2-13

1-4 In the stock/requirements list, you convert the first two planned orders into production orders, and then release each production order. Starting from the MRP menu, display the stock/requirements list for material T-F1## in plant 1000.

1-4-1 Display the Additional data for element for the first planned order in the list. Choose the Convert planned order into production order function. Release the production order and save the order.

1-4-2 Repeat the operation for the second planned order.

1-4-3 Refresh the display by selecting Refresh. Make a note of the production order numbers.

Production order number 1 __________________

Production order number 2 __________________

You may have to wait a few seconds for the asynchronous update to read the data from the queue and update it to the database. You can access the function several times again, until you see the production orders.

1-5 Now assume that you have produced the product, and can post the end product, the pump, to stock. (Completion confirmation is missed out for the purposes of this training example)

1-5-1 Execute the goods movement (more precisely: Goods receipt for order) from the Inventory Management menu using the following parameters:

Movement type: 101 (Movement type → Order to warehouse)

Order number: the first of the order numbers you noted down

Plant: 1000

Storage location: 0002.

Post the goods movement and repeat the operation for the second planned order number.

1-5-2 Check the stock situation in the stock/requirements list and make a note of

the quantity of the oldest plnd ind. reqmt: _____________________

the date of the oldest plnd ind. reqmt: _____________________

the quantity available today: _____________________

© SAP AG LO210 2-14

1-6 A customer arrives and spontaneously buys 8 pumps (over-the-counter sales).

1-6-1 From the Inventory Management menu, you now post the stock withdrawal to sales (i.e., a goods issue). When posting the goods movement, use the following parameters:

Movement type: 251 (Movement type → Consumption → To sales → From warehouse)

Plant: 1000

Storage location: 0002

Cost center: 3110 (sales pumps)

Enter the item for the material T-F1## and a quantity of 8 pieces. Post the goods movement.

1-6-2 After entering the data, call up the stock/requirements list again.

How has the oldest planned independent requirement (noted above) been changed (quantity of oldest planned independent requirement)?

__________________________

What quantity is now available from stock?

__________________________

Compare the two quantities and explain the new stock/requirements situation.

____________________________________________________

© SAP AG LO210 2-15

Solutions

Unit: Overview Topic: Production Planning Procedure in the R/3 System

1-1

1-1-1 Menu path: Logistics → Production → Master Data → Material Master → Material → Change → Immediately

1-1-2 Menu path: Logistics o Production o Production Planning o Demand Management o Planned Independent Requirements o Create

1-1-3 Menu path: Logistics o Production o MRP o Evaluations o Stock/requirements list

Date of second LSF requirement: Varies

1-2 Menu path: Logistics o Production o MRP o Planning o Single-item, Multi-level

1-3

1-3-1

1-3-2 Explain the logic behind the date. The requirements dates for the assemblies coincide with the order start date of the planned order for the finished product. The assemblies are therefore available at the start of production for the finished product.

1-4 Menu path: Logistics o Production o MRP o Evaluations o Stock/requirements list

1-4-1

1-4-2

1-4-3 Production order number 1: Varies

Production order number 2: Varies

© SAP AG LO210 2-16

1-5

1-5-1 Menu path: Logistics o Materials Management o Inventory Management o Goods Movement o Goods Receipt o For Order

1-5-2 the quantity of the oldest plnd ind. reqmt: 25

the date of the oldest plnd ind. reqmt: Varies

the quantity available today: 50

1-6

1-6-1 Menu path: Logistics o Materials Management o Inventory Management o Goods Movement o Goods Issue

1-6-2 Oldest planned independent requirement (noted above): 17

Available quantity from stock: 42

Explanation: 8 pumps have been sold and the corresponding stock withdrawal has been posted. The available quantity thereby falls from 50 pieces to 42 pieces. The sales reduce simultaneously the (LSF) planned independent requirements that you entered at the start. This follows the FIFO rule (first in – first out), whereby the oldest requirement is reduced first. It has therefore sunk from 25 pieces to 17 pieces.

© SAP AG LO210 3-1

SAP AG 1999

Demand Management

Contents:

z Managing Planned Independent Requirements

z Planning strategies

z Customizing settings

© SAP AG LO210 3-2

SAP AG 1999

Demand Management: Unit Objectives

z Create planned independent requirements inDemand Management

z Describe the functions and differences amongthe planning strategies

z Use the consumption and reduction procedures forplanned independent requirements.

z Apply the most important Customizing settingsfor Demand Management.

z Differentiate between the two availability checkingmethods.


© SAP AG LO210 3-3

SAP AG 1999


11 Introduction

55 Processing MRP Results

MRP Run44


Overview22


99 MRP Areas


66 MPS


© SAP AG LO210 3-4

SAP AG 1999

Categories of Planning Strategies

z Make-to-stock production

z Order production

(Make-to-order production)

z Order-specific final assembly

(Assemblies to stock using make-to-stock, finished productsto individual customer stock using make-to-order production)

© SAP AG LO210 3-5

SAP AG 1999

�� Make-to-stock production (anonymous) Make-to-stock production (anonymous) 1010

�� Make-to-stock production/grossMake-to-stock production/gross reqmts reqmts planning planning 1111

�� Production by lotsProduction by lots 3030

�� Planning with final assembly Planning with final assembly 4040

�� Planning at assembly level Planning at assembly level 7070

�� Planning at phantom assembly level Planning at phantom assembly level 5959

• Target: Smooth production load even if demand varies.

• Planning carried out using planned independent requirements

Strategies of Make-to-Stock Production

��The make-to-stock production strategies plan production or procurement using planned independent requirements, which can be created from sales or forecast figures. Sales orders are covered by stock from the warehouse.

��Make-to-stock production strategies are used in industries where demand and sales fluctuate but where production may be kept at full capacity. Fluctuations in demand and sales are smoothed by warehouse stock.

© SAP AG LO210 3-6

SAP AG 1999

MRP

Warehouse stockFinished product

Sales orders from whse

Demand program

Reduction

Make-to-Stock Production/Net Reqmts Plng (10)

Customerrequirementscovered bywarehouse

stock

��The demand program is defined without reference to sales orders.

��Sales orders are not relevant to MRP, but can be displayed for information purposes. You make this setting in the "No MRP" field in Customizing for the appropriate requirements class (workstep, "Defining Requirements Classes" in Customizing for SD).

��Sales orders are covered by warehouse stock. In Sales and Distribution, you can carry out the availability check according to ATP logic. Material withdrawals for a sales order reduce this sales order’s quantity.

��The consumption of the demand program (that is of the planned independent requirements) is carried out at goods issue (the indicator "PIR reduction" in Customizing of the requirements class 30 must be set if you want to reduce the demand program when delivering to a sales order). The oldest planned independent requirement is reduced first according to the FIFO (first-in-first-out) principle using the requirement date. Future planned independent requirements are also reduced by goods issues, if allowed by the consumption mode and the forward consumption period.

© SAP AG LO210 3-7

SAP AG 1999

Make-to-Stock Production

Gross reqmts planningGross reqmts planningGross reqmts planningNet reqmts planningNet reqmts planningNet reqmts planning

Strategy 10 Strategy 11

= WSWSWS

PIRPIRPIR

POPO _ RRR _ =PIRPIRPIR

POPO _ RRR

PO Planned orderPIR Planned independent requirementsR ReceiptWS Warehouse stock

PO Planned orderPIR Planned independent requirementsR ReceiptWS Warehouse stock

In gross requirements planning,NO warehouse stock is takeninto account.

InIn gross requirements planning gross requirements planning,,NO warehouseNO warehouse stock stock is is taken takeninto accountinto account..

In net requirements planning,the system takes warehousestock into account.

InIn net requirements planning net requirements planning,,the systemthe system takes takes warehouse warehousestock into accountstock into account..

��In addition to net requirements planning, gross requirements planning is another strategy of make-to-stock production.

��Planned orders, production orders, purchase orders and other elements are taken into account as receipts when determining requirements.

��In the case of gross requirements planning, no warehouse stock is taken into account. Only receipt elements are included in the net requirements calculation.

��In net requirements planning, the available warehouse stock for planning is taken into account.

© SAP AG LO210 3-8

SAP AG 1999

Make-to-Stock Production/Gross Reqmts Plng (11)

Demand program

MRP


Sales orders from whse

Reduction

Customerrequirementscovered bywarehouse

stock

��The demand program is defined with no reference to sales orders or existing warehouse stock. This is why one talks of "forced production" with regard to this production strategy.

��Sales orders are not relevant to MRP, but can be displayed for information purposes. You have to define this in the "no MRP" field for the appropriate requirements class in Customizing.

��Sales orders are covered by warehouse stock. In Sales and Distribution, you can carry out the availability check according to ATP logic.

��The demand program is reduced by the receipt of goods in the warehouse.

��You must have entered the gross requirements planning strategy in the strategy group of the material master (view: MRP 3) and have set the mixed MRP indicator to "gross requirements planning" in the material master (view: MRP 3).

��A separate segment is created for gross requirements planning in the current stock/requirements list and the MRP list.

© SAP AG LO210 3-9

SAP AG 1999

Sales order Warehouse reqmt

MRP


DeliverySales order Sale from stock

Reduction

Reduction

Production by Lots (30)

50 pc

Total reqmts 80pc

Procurement by lot size

(From stock)

30 pc

Example material: Pump

��In production by lots (strategy 30), the requirements for the finished product are transferred to MRP when a sales order is created. You can also plan additional warehouse requirements in Demand Management.

��Customer requirements do not consume planned independent requirements.

��Requirements are grouped according to the lot-sizing procedure defined in the material master record.

��Sales orders are covered by stock from the warehouse. The customer requirement is reduced by the goods issue. In Sales and Distribution, you can carry out the availability check according to ATP logic.

��The stock orders created additionally in demand management are reduced by the goods issue to the stock order (the reduction is carried out according to the FIFO principle as in strategy 10).

��You can use this strategy when you need to reduce orders for major customers and factory sales from the warehouse, for example.

© SAP AG LO210 3-10

SAP AG 1999

CR Customer reqmt

IR Plnd ind reqmt

PO Planned order

POPOPO POPOPOPOPOPO

Time

IRIR CRCR

IRIR

CRCR CRCRIRIR

Quantity

Time01.03. 07.03. 14.03. 21.03.

01.03. 07.03. 14.03. 21.03.

Production by Lots for Sales and Stock Orders

Example used here:Weekly lot sizes

��In production by lots, the system groups the procurement quantities for customer requirements and planned independent requirements into lots. To do this the system uses the lot-sizing procedure defined in the material master record.

© SAP AG LO210 3-11

SAP AG 1999

Customer reqmtCustomer reqmtIndep. reqmtsIndep. reqmts


Planning with Final Assembly (40)

ConsumptionConsumption

Target: Fast reaction to customers’ demands keeping productionas smooth as possible.

Pro

duct

ion

Pro

duct

ion

Sales orders affect requirements and consumeplanned independent requirements

��In planning with final assembly (strategy 40), the main focus is on flexibility in reacting to customers’ demands.

��Production, including final assembly, is triggered by the planned independent requirements before the sales order is received.

��You plan the planned independent requirements for the finished product in Demand Management. Incoming sales orders consume these planned independent requirements.

��Planned independent requirements left unconsumed increase the warehouse stock - as long as they are not adjusted to customer requirements (“Adjust Requirements“ is a function to be run periodically to ensure that old, unconsumed planned independent requirements no longer have an effect on planning).

��If customer requirements exceeds planned independent requirements, the system automatically creates a planned order for the unplanned quantity in the next MRP run.

��You can check availability using the ATP logic.

��The consumption of planned independent requirements by customer requirements depends on the settings defined for the consumption mode and the consumption periods.

© SAP AG LO210 3-12

SAP AG 1999

Plnd indep.reqmts

Customer req.

Time

Backward consumption only

Bwd per.Backward consumption per.

Forward consumption only

Time

Forward consumption period

1 2

Backward/forward consumption

Time

Fwd per.Bwd per.

Fwd per.

Consumption Mode

60

402020

Example: Withinthe given period oftime, 60 pieces areproduced for thesales order and 20pieces areproduced(anonymously) tostock.

Mode 1

Mode 3

Mode2/4

��You can use the consumption mode to define in which direction incoming sales orders are to consume planned independent requirements on the time axis.

��In backward consumption (consumption mode 1), the sales order consumes planned independent requirements that lie before the customer requirement.

��In forward consumption (consumption mode 3), the sales order consumes planned independent requirements that lie after the customer requirement.

��You can combine backward and forward consumption provided that you take the consumption periods into account (consumption mode 2 or 4).

��You can define the consumption mode and the consumption periods either in the material master or for each plant and MRP group. If no values have been entered, the system uses the default setting with backward consumption for 999 days (note: if you do not maintain mode 1 and the backward consumption interval, this means that only the requirements on the current day can be consumed).

© SAP AG LO210 3-13

SAP AG 1999

Sales order

Indep.reqmtsIndep.reqmts

MTS/MTO productionFinished product

MTS/MTO productionFinished product

Whse stockAssembly 02


Fina

las

sem

bly

Fina

las

sem

bly

Planning at Assembly Level (70)

Dep.req/Res.Dep.req/Res.

Consumption

1. Planning at assembly level using planned indep. reqmts1. Planning at assembly level using planned indep. reqmts

2. Consumption by the dependent reqmts of the finished product2. Consumption by the dependent reqmts of the finished product

Man

ufac

turi

ngM

anuf

actu

ring

��It makes sense to plan at assembly level (strategy 70) when processing variants if it is easier to specify a requirements forecast for certain assemblies than it is for the variant diversity of the finished product.

��In this planning strategy, the planned independent requirements for an assembly are planned separately. They are created at assembly level and they trigger the production of the assembly.

��When a sales order is received for the finished product, the BOM is exploded for the finished product. Dependent requirements or reservations are also created for the assembly as a result of planned orders or production orders for the finished product. These consume the planned independent requirements of the assembly.

��If, due to sales orders, planned orders or production orders at finished product level, the dependent requirements or reservations exceed the assembly’s planned independent requirements, a planned order is created for the assembly during the next planning run.

��In Sales and Distribution, the system does not perform a check of the assembly planning quantities.

��In the strategy group of the material master record, you must enter strategy 70 and the mixed MRP indicator must be set for assembly planning.

��The consumption indicator in the Demand Management item screen must allow consumption with reservations and dependent requirements.

© SAP AG LO210 3-14

SAP AG 1999

BOMexplosion

Indep. reqmts

Dep. reqmts

Sales, planned, production orders

AssemblyAssembly

Indep. reqmts

11

22

33

Finished productFinished product

AssemblyAssembly

Consumption in Assembly Planning

��In the first step, you create the requirement quantities expected in the future for the assembly. You do this in Demand Management.

��You create either sales orders, planned orders or production orders.

��The resulting dependent requirements or reservations (for the assembly) consume the planned independent requirements of the assembly.

© SAP AG LO210 3-15

SAP AG 1999

Time

Consumption period

Backward Forward

Dependentrequirement or

reservationAssembly’s plannedindep. reqmts

Assembly’s plannedindep. reqmts

Subassembly Planning: Consumption Periods

��The consumption logic is defined by the consumption mode and the consumption periods backward and forward as in strategy 40. These are defined in the material master record of the assembly or per plant and MRP group.

��The consumption periods are calculated starting from the dependent requirements or the reservations.

© SAP AG LO210 3-16

SAP AG 1999

PhantomPhantom

Phantom Assemblies

Definition: By the specialprocurement key in thematerial master record(can be overruled in theBOM)

Dep

. req

mts

Dep

. req

mts

Dep

. req

mts

Dep

. req

mts

Pla

nnin

g

��A phantom assembly can represent an assembly which is created in the production process, but is not placed in stock; rather it is used immediately. Phantom assemblies can also represent a logical grouping. For example, a car radio assembly consists of the radio, speakers and an aerial.

��You can indicate that an assembly is a phantom assembly by entering a special procurement type in the material master record (if necessary per MRP area).

��In the planning run, the dependent requirements of the higher-level assembly are directly passed down to the components of the phantom assembly.

��In exceptional cases, phantom assemblies can be placed in stock and withdrawn at a later date.

© SAP AG LO210 3-17

SAP AG 1999

Reservation DependentReservation Dependent reqmts reqmts

Reduction ofReservation

Finished product

Component 01

Sales orderSales order

Plnd indPlnd ind.. reqmts reqmts for for phantom assemblyphantom assembly

Phantom assembly

1.1.

2.2.

1.1.

Pro

cure

men

t

Production orderProduction order

BackflushBackflush

4.4.

3.3.

5.5.

3.3.

Fina

l ass

embl

y

3.3. Consumption of indep. reqmts

5.5.

5.5.

Reductionof plndind.reqmts

Planning at Phantom Assembly Level (59)

Component 02

Procedure as strategy 70Complication: missing

warehouse level

��In the strategy group of the material master, you must define the phantom assembly planning strategy (strategy 59) and you must set the mixed MRP indicator for assembly planning and the special procurement key for the phantom assembly.

��In step one, the planned quantities for the phantom assembly are set (1). This planned independent requirement leads to the creation of a dependent requirement for the components of the phantom assembly in the planning run and it triggers procurement (2).

��The dependent requirement (not relevant to MRP) of the sales order or of the planned order for the finished product or the reservation (not relevant to MRP) of the production order for the finished product consumes the planned independent requirements of the phantom assembly. Reservations for components that are relevant to MRP are reduced (3).

��Once final assembly has been carried out (4), the phantom assembly is confirmed and, if necessary, the components of the assembly backflushed. The planned independent requirements of the phantom assembly and the reservations are reduced (5).

��Backflushing is important so that the planned independent requirements and the reservations can be reduced consistently. Make sure that all components of the phantom assembly are backflushed simultaneously.

© SAP AG LO210 3-18

SAP AG 1999

• Make-to-order production 20

• Planning without final assembly 50

• Planning at assembly level without final 74

• Planning with planning material 60

Strategies for Order-Specific Final Assembly

• Assembly processing repetitive manufacturing 81

• Assembly processing with production order 82

• Assembly processing with network w/o project 83

Strategies for Make-to-Order Production

Sales Order-Related Planning Strategies

��When working with the strategies for make-to-order production, the sales order is the only pegged requirement.

��Alongside classic make-to-order production, you also have the option of planning without final assembly and assembly processing with production orders.

© SAP AG LO210 3-19

SAP AG 1999

Make-to-Order Production (20)

Sales order B

Production

Customer stockFinished product

DELIVERY

e

Sales order A

Production


DELIVERY

e

Material Requirements Planning

Material P-100Material P-100

��In make-to-order production (strategy 20), every sales order is planned individually and managed in its own segment in the MRP list or the current stock/requirements list.

��The system does not perform a net requirements calculation between individual sales orders or with the anonymous warehouse stock.

��In make-to-order production, the lot-for-lot order quantity is used as the default setting for the lot-sizing procedure, regardless of the entry you have made in the material master record. You define the lot-sizing procedure for make-to-order production in Customizing for MRP in the workstep "Checking the lot-sizing procedure" in the field "Lot-size calculation for MTO production". Depending on the setting of the lot-size indicator in the material master record, you can define a different lot size for make-to-order production from the one used in make-to-stock production.

��Using the "individual/collective" indicator, you can allow make-to-order production at any level of the BOM structure.

��You cannot switch the produced quantities from one sales order to another - the produced quantities are managed directly for each individual sales order (in the individual customer stock).

��The individual customer stock and the requirement is reduced by a goods issue to the sales order. As soon as the sales order is completed and the individual customer stock depleted, the individual customer segment disappears from the current stock/requirements list or the MRP list.

��The system manages the production and procurement costs specifically for each sales order in a settlement order or project.

© SAP AG LO210 3-20

SAP AG 1999

Prod.order 10 pc

SO stock 20 pc

Sales order A

SO stock 10 pcSO quantity 20 pc

Prod.order 15 pc

SO stock 15 pc

Sales order B

SO stock 0 pcSO quantity 15 pc

Plnd order 15 pcPlnd order 10 pc MRP

Material P-100

Make-to-Order Production: Example

��The net requirements calculation is carried out individually for every sales order. Stock cannot be swapped back and forth between sales orders.

��The procurement elements, that is the planned orders are created with reference to the sales order and are managed in the individual customer segment. This direct reference to the sales order also remains in the production order.

© SAP AG LO210 3-21

SAP AG 1999

Individual / Collective Indicator

MRP List: Pump

DateToday

TodayDateDate

TodayDateDate

MRP elementStock

Order APlanned order 123Order A

Order BPlanned order 124Order B

Qties

1010-

1212-

Avail.

0

0 10 0

0 12 0

MRP List: Spiral Casing

DateToday

DateDateDate

MRP elementStock

Planned order 127Dep. reqmts pumpDep. reqmts pump

Quantities

1710-12-

Avail.

5

22 12 0

Individual/collectiveind. = 1

Spiral casing

Pump

Shaft

Salesorder AQty 10

Salesorder BQty 12

Individual/collectiveind. = 2

MRP List: Shaft

DateToday

TodayDateDate

TodayDateDate

MRP elementStock

Order APlanned order 125Dep. reqmts pump

Order BPlanned order 126Dep.reqmts pump

Quantities 1010-

1212-

Avail.

0

010

0

012

0

To be set in the materialmaster record (can beoverruled in the BOM)

��The individual/collective indicator in the material master record determines whether a component is procured for a special customer requirement in the individual segment.

��The indicator "1" for individual requirements means that the material is being specially manufactured or procured for a sales order. A special individual segment is created for each requirement. An individual requirement is only created if the higher-level material does not create a collective requirement.

��The indicator "2" for collective requirements means that the material is produced or procured for various requirements. You can find these requirements in the net requirements segment.

��The indicator "blank" means that the component is to be planned in the same way as the higher-level assembly.

��In the above example, two individual segments are created for the shaft for sales orders A and B.

��If you want to control the material item individually for the respective BOM, use the "explosion control" field in the component’s item data (general data view). The setting in the BOM overrules the setting in the material master record.

© SAP AG LO210 3-22

SAP AG 1999

P-100

100-100 I

Strategy 20

I/C = 1 I/C = 2

100-210 CI/C = 1100-120 II/C = 1100-110 II/C = ’_’

100-200

Individual / Collective Indicator: Example

Example material: Pump P-100 Indiv./coll. ind. in thematerial master record

Individual reqmts

Collective reqmts

I/C

I

I

C

C

��All materials that, in the BOM, are under one material in collective requirements are planned as collective requirements irrespective of the setting in the material master record.

© SAP AG LO210 3-23

SAP AG 1999

Planning w/o Final Assembly (50): Plnd Ind.Reqmts

Pro

cure

men

t

Plnd indep.reqmts

MR

P1.1. 2.2.

3.3.

Whse stockSpiral casingWhse stock

Spiral casingWhse stock

ShaftWhse stock

Shaft

PumpPumpVP Plnd

order

��As make-to-order production, planning without final assembly (strategy 50) enables you to manufacture products specifically for a customer. However, with this planning strategy, certain assemblies should be produced or procured before the sales order for the finished product is received. The material is produced up to the production level below final assembly. That is, the assemblies and components are stocked in the warehouse until the sales order is received. Final assembly is only triggered upon receipt of the sales order. It makes sense to use this strategy if a large part of the value added process occurs at final assembly.

��Planning which is independent of the sales order is organized using planned independent requirements. These planned independent requirements are created for the finished product. In the MRP run, the system first creates planned orders for the finished product to cover these requirements. These planned orders cannot be converted into production orders (order type VP). When sales orders are entered and MRP is next run, the system creates planned orders to offset the sales orders; these planned orders can be converted to production orders or purchase requisitions. Also in the MRP run, the planned orders of type VP are adjusted to offset the remaining, unconsumed planned independent requirments.

��Using the strategy, "planning without final assembly", you can reduce delivery times since production and procurement should have already been triggered for the lower production levels before the sales order is received.

© SAP AG LO210 3-24

SAP AG 1999

Planning w/o Final Assembly: Sales Order

Fina

l ass

embl

y



ShaftWhse stock

Shaft

PumpPump Plnd indep.reqmts

5.5.

MR

P

6.6.

4.4.Sales order

ConsumptionConsumption

KD Plnd

order

��Final assembly is only triggered upon receipt of the sales order. The sales order appears in an individual customer planning segment in the current stock/requirements list where it is planned separately. In the next MRP run, the system creates a planned order for the newly created sales order. This planned order can be converted into a production order. This then allows final assembly. In the planning segment, the planned order quantity of the "VP" planned order is reduced corresponding to the new requirements situation.

��In this strategy, the sales order is managed in the individual customer planning segment. If this is not desired, you can also manage the sales order in the net requirements segment (strategy 52), although should you choose this procedure, you have to work with the lot-sizing procedure "lot-for-lot order quantity". You also need to make sure that neither rounding values/rounding profiles nor minimum or maximum lot sizes are maintained. Otherwise, the assignment logic is not compatible with an availability check which could lead to excess planning or incorrect results in the availability check.

��You can only carry out the availability check for planned independent requirements. That is, the check of planned independent requirements at finished product level.

© SAP AG LO210 3-25

SAP AG 1999

Planned Orders with Planning Type "VP"

SubcontractingDirect productionExternal procurementStock transfer

I cannot be changed manually !

I cannot be converted!

Capacity planning

VP Plndorder

��Planned orders with order type VP can be created for external procurement, subcontracting, stock transfer or direct production.

��These orders cannot be changed manually and cannot be converted into production orders or purchase orders.

��Capacity planning is possible for planned orders with order type VP.

© SAP AG LO210 3-26

SAP AG 1999

Quantities for Final Assembly

PlannedPlanned ind ind.. reqmts reqmts

Quantity

Time

Sales ordersSales orders

Triggers final assembly withsales order quantity

WhsestockShaft

Pump

WhsestockShaft

Pump

Whse stockSpiral casing

Quantity

Triggers production of assemblies

TimeCreated for pCreated for pumpump

Created for pCreated for pumpump

Whse stockSpiral casing

��Example: If a planned independent requirement of 100 pieces exists and you receive a sales order for 40 pieces which consumes the planned independent requirements then the sales order for 40 pieces remains in the individual customer planning segment and a planned independent requirement for 60 pieces remains in the net requirements segment. As soon as the product is planned again in the next MRP run, the system creates a planned order for 40 pieces in the individual customer planning segment which you can convert into a production order. At the same time, the system reduces the existing planned order of type VP from 100 pieces to 60 pieces.

© SAP AG LO210 3-27

SAP AG 1999

Planning w/o Final Assembly: Master Data



ShaftWhse stock

Shaft

PumpPumpStrategy group 50Strategy group 50

Indiv./collective = 2Indiv./collective = 2

��If you want to use the "Planning without final assembly" strategy for the finished product, you must make the following settings in the material master record ("MRP" view):

��Strategy group 50 ("Planning without final assembly") for the finished product.

��Indiv. / Collective indicator = 2 (collective requirements only) for the assembly, which is to be procured and stored (supplied for storage) before the sales order is received.

© SAP AG LO210 3-28

SAP AG 1999

Stocking Level

High valueadded

Stocking level

Low value added

PumpPump



ShaftWhse stock

Shaft

Plnd indep.reqmts

Sales order

��If a large part of the value added process occurs at final assembly it makes sense to use strategy 50 ("Planning without final assembly"). Here, final assembly is not triggered until a sales order has been received.

© SAP AG LO210 3-29

SAP AG 1999

Flexible Determination of Stocking Level



ShaftWhse stock

Shaft

PumpPump

Stocking level

Stockinglevel

Indiv./collective =1 or "blank"


Strategy group 50Strategy group 50


VP Plndorder

VP Plndorder

��The stocking level is the level in the product structure up to which the material is produced to stock. You can shift the stocking level for certain materials: If, for example, you should set the indiv. / collective indicator to "1" (individual requirements only) or enter "blank" (individual and collective requirements) for the material "shaft" in the material master record (MRP view), then this material will not be produced until a sales order exists for it or the pump; it will not be produced to stock in advance. Only the components for the material "spiral casing" are procured and placed in stock before the sales order is received. For this example, therefore, you must set the indiv. / collective indicator to "2" (collective requirements only) for both the assembly "spiral casing" and for the components of the shaft. However, you only have to enter the strategy group for the pump.

��If you do not wish to create VP planned orders in all BOMs of a particular material, you can assign the "No VP planned orders" explosion control indicator in the "Basic data" for the BOM item. You define this indicator in the workstep "Defining Explosion Control" in Customizing for BOMs.

© SAP AG LO210 3-30

SAP AG 1999

Pro

cure

men

t

Cooling system

Cooling system

ProcessorProcessor Processor cooling unitProcessor cooling unit

FanFan

Plnd indep.reqmts

MR

P

1.1. 2.2.

3.3.

Material: ?? Material: ??

MotherboardMotherboard

Planning at Assembly Level w/o Final Assembly (1)

Plnd indep. reqmts

��The strategy "Assembly planning without final assembly" (strategy 74) is a mixture of the strategies "assembly planning" (strategy 70) and "planning without final assembly" (strategy 50 or 52). As in strategy 70, in strategy 74 the planned independent requirements for an assembly are regarded separately and independent of any lot size. You do not have to know the finished production for which the assembly is required.

��The planned independent requirements are created at assembly level. As opposed to strategy 70 and as in strategies 50 and 52, the creation of the planned independent requirements does not trigger the production of the assemblies but the procurement of the components. The components are placed into stock until the planned order or the production order for the finished product is received. The production of the assembly is not triggered until the planned order or the production order for the finished product has been received.

��The planning run is carried out for the assembly and initially creates planned orders for the assembly’s planned independent requirements which cannot be converted into a production order nor can they be converted in repetitive manufacturing (order type VP). The planned independent requirements and the planned orders for the assembly are in the planning segment. Conversion and procurement (assembly) are not possible until a planned order or a production order for the finished product is created. At component levels below the assembly, however, the system creates planned orders in the planning run if a material shortage exists. These planned orders can be converted into a production orders or a purchase requisition.

��At this stage of planning, the stock at assembly level is not taken into account.

© SAP AG LO210 3-31

SAP AG 1999

Coolingsystem

Coolingsystem


FanFan

Plnd indep.reqmts

PCPC

Fina

l ass

embl

y

5.5.

MR

P

6.6.

4.4.

Dependent reqmts MotherboardMotherboard

Planned orderProduction

order

Reservation


Planned / production order

��Production of the assembly is not triggered until receipt of the planned order or the production order for the finished product. The dependent requirements and reservations created as a result of the planned order or the production order consume the planned independent requirements of the assembly (as in strategy 70).

��Depending on the strategy of the finished product and the individual/collective indicator of the assembly in the net segment, the dependent requirements and reservations of the assembly and the accompanying planned orders of the assembly appear in an individual customer segment or in the individual customer planning segment.

��In the planning run, dependent requirements and reservations in the net requirements segment or an individual customer segment result in planned orders that can be converted or that can be dispatched in repetitive manufacturing. This then allows the production of the assembly. At this stage of planning, stock at assembly level is regarded as stock in the net segment or as individual customer stock. In the planning segment, the planned order quantity of the "VP" planned order is reduced corresponding to the new requirements situation.

© SAP AG LO210 3-32

SAP AG 1999

BOMexplosion

Plnd ind.reqs

Reservation/dependent reqmts

Planned/production ordersAssemblyAssembly

Plnd indep. reqmts

11

22

33

Finished productFinished product

AssemblyAssembly


Consumption (carried out as in strategy 70)

��In the first step, you create the requirement quantities expected in the future for the assembly. You do this in Demand Management.

��Sales orders or planned orders or production orders are created for the finished product.

��The resulting dependent requirements or reservations (for the assembly) consume the planned independent requirements of the assembly.

��The consumption mode and the consumption periods are calculated according to the reservation or the dependent requirements.

© SAP AG LO210 3-33

SAP AG 1999

Cooling system

Cooling system


FanFan

Stocking level



Material: ?? Material: ??

MotherboardMotherboard


Strategy 74Strategy 74 Mixed MRP = 3 Mixed MRP = 3


Master Data

��If you want to use the "Planning without final assembly" strategy for the assembly, you must make the following settings in the material master record ("MRP" view):

• Strategy group 74 (planning without final assembly at assembly level) for the assembly

• Mixed MRP indicator = 3 (assembly planning without final assembly)

• Consumption parameters (consumption mode, backward consumption period, forward consumption period)

• Indiv. / Collective indicator = 2 (collective requirements only) for the components to be procured and stored (supplied for storage) before receipt of the planned or production order.

• Indiv. / Collective indicator = 1 (collective requirements only) or blank (individual and collective requirements) for the components not to be procured until receipt of the planned order or the production order for the finished product.

© SAP AG LO210 3-34

SAP AG 1999


Sales orderPlnd ind.reqsPlnd ind.reqs

Non-variable partAssembly 03

Fina

las

sem

bly


Planningmaterial

Planning with the Planning Material (60)

Non-variable partAssembly 02


Variant partAssembly 01

Note: Additional master data maintenance

1. You must create the planning material and assign it to its finished products

2. You must create BOM for planning material with variant parts (variant partsmust also be contained in the BOM of the finished product)

I am not produced!

Pro

duct

ion

Pro

duct

ion

��The planning strategy "Planning with planning material" is particularly useful if you have several finished products with the same main assemblies.

��Here, you define a planning material which contains the common assembly and its BOMs.

��The planning run is carried out for the planning material which triggers the production and procurement of the planning material’s components.

��The sales order for a finished product which refers to the planning material reduces the planned independent requirements of the planning material and simultaneously triggers final assembly.

��When processing the sales order, you can check whether the planned independent requirements quantities cover the demand (that is, the availability check as a check against the planned independent requirements).

��In the material master record of the planning material, you must enter strategy 60, the consumption mode and the consumption periods. In the material master records which refer to the planning material, you must enter the planning material as a reference and strategy 60. The consumption periods are calculated starting from the planned independent requirements of the planning material.

© SAP AG LO210 3-35

SAP AG 1999

Time

Consumption periodBackward Forward

Independent Reqmts Qtyof the Planning Material

Sales Order Sales Order

Materials notplanned

Planning Material: Consumption Periods

��The consumption periods are calculated starting from the planned independent requirements of the planning material.

��Consumption is carried out on receipt of the sales orders for the finished product which refer to the planning material. The link between the finished product and the planning material is created by assignment in the material master record.

��To ensure that quantity reductions are consistent, you must make sure that all assemblies contained in the BOM of the planning material are really contained in all the finished products which refer to this material. You must be particularly careful if the BOM is changed.

© SAP AG LO210 3-36

SAP AG 1999

Finished product 1

Finished product 2Planning material

100-100 100-200

1 11

1) Planned indep. reqmts 50 pc for planning and MRP

2) VP planned order 50 pc for planning

3) Procurement of the components from planning material:

a) Planned orders for 100-100 (50 pc) and 100-200 (50 pc)

b) Conversion of the planned orders to production orders for

100-100 and 100-200

c) Goods receipt of production order to warehouse

for 100-100 and 100-200 each for 50 pc

Optional: Planning Material Example (1)

��On this and on the following slides is example data to demonstrate how the strategy "planning with planning material (60)" works.

��The materials Finished product 1 and finished product 2 are finished products which refer to the planning material Planning. In all material master records, you must enter the strategy group 60 and in the material master records for Finished product 1 and Finished product 2 , you must enter the planning material Planning.

��The corresponding BOMs must also exist. The BOM for Planning contains two assemblies 100-100 and 100-200 and these two assemblies must also be included in the BOMs for Finished product 1 and Finished product 2.

��With these prerequisites, and using the steps described in the following slides, it is possible to describe a typical procedure in planning using strategy 60.

© SAP AG LO210 3-37

SAP AG 1999

4) Warehouse stock 100-100 and 100-200 50 pc each

5) Sales orders:

Dep. reqmts

Sales orders consume planning material quantities:

6) MRP run Planning VP planned order reduced

7) MRP run Finished product 1, Finished product 2:

The dependent requirements for the sales order are covered bystock.

5 pc 100-100

20 pc 100-100

5 pc 100-200

20 pc 100-200

20 pc Finishedproduct 15 pc Finished

product 2

Optional: Planning Material Example (2)

© SAP AG LO210 3-38

SAP AG 1999

Assembly Order

Confirmed quantityConfirmed dateConfigurationAssembly typesSales price

Production orderPlanned order Project

CustomerCustomer Sales orderQuantityMaterialDesireddate

Strategy 81 Strategy 82 Strategy 83

Creates procurement elementsAvailability check at assembly level

��Assembly processing is a form of sales order processing. The procurement elements are created when you create the sales order items.

��In general, the components of the finished product have already been manufactured.

��Once you have created the sales order, the system checks the availability of the components (for the production order). It also determines a possible delivery date and costs the order.

��With strategy 82, creating the sales order triggers the creation of a production order. It is not necessary to carry out a separate MRP run. With strategy 81, when you create a sales orders, the system creates a planned order for repetitive manufacturing and with strategy 83, it creates a network for engineer-to-order production.

��Order processing is carried out using the tools available in production control, delivery is made in Sales and Distribution.

��The total confirmation date depends on the date of the components which are last to be available.

��The confirmation quantity depends on the available quantity of the components with the lowest confirmed quantity on the requirements date.

��Assembly processing can either be carried out statistically (an assembly order per sales order item) or dynamically (several assembly orders per sales order item). Dynamic processing enables you to execute partial deliveries. In this case, however, the direct reference to the sales order is lost.

© SAP AG LO210 3-39

SAP AG 1999

Changes to Assembly Processing

z Changes to the sales order directly effect the procurementelement (planned order, production order, network).

z Changes to the procurement element also affect the sales order.

Procurementelement

Salesorder Integration

��Schedule lines are automatically changed in the sales order.

��Changes have an affect on the assigned production order until an operation has been backflushed or until the order header has the status deleted, locked or technically completed.

© SAP AG LO210 3-40

SAP AG 1999

Planning with Production Lots (SEIBAN)

Planned ind. reqmtsfor production lots

Pro

duct

ion

lot

BO

M/r

outin

g

MRPfor production lot

Planned costs forproduction lot

PP order updateControlling perproduction lot

Backflush perproduction lot

Production lotactual costs

BOM Explosionper production lot Production lot

per component


ProjectProject

��The planning of production lots provides you with the possibility of determining the costs for a product when planning (planned independent requirements) before any actual sales orders are received. All evaluations from the Project System are available (overview PS: course CA080).

��You define production lots in the master data of Material Requirements Planning. You can create a BOM and a routing with reference to the production lot. Planning, production and cost evaluation is carried out with reference to the production lot.

��When creating the production lot, a WBS element is created. Master data maintenance, planning, production and cost determination is carried out with reference to the WBS element as individual project production and planning. Two types of production lots are available for planning:

1. Production lots with individual stock: For each production lot, material stocks are managed separately in individual project stock right up to delivery.

2. Production lots with transfer posting to plant stock: Once production for the production lot has been completed, the assemblies are posted to plant stock (in a transfer posting).

��In the planning run, the system creates planned orders and purchase requisitions with reference to the production lot for the material to be planned and all components with the individual requirements indicator. You create a standard cost estimate for the production lot. The value calculated provides the basis for valuating the stock.

��You produce the production lot either using make-to-order production or repetitive manufacturing whereby the reference to the production lot number remains intact. Incoming sales orders trigger the creation of reservations of stocks of a production lot without a new production process being triggered. This type of planning is known as SEIBAN in Japan.

��After production, you carry out confirmations/backflushes specifying the production lot number.

© SAP AG LO210 3-41

SAP AG 1999

Grouping Production Lots

Mouldedblank

Production lot "L3211"

10 Pumps

Production lot “S8711”

20 Spiral casing

Seal Screw

Spiral casing

PumpPump

WheelWheel LidLid

RawRawMaterialMaterial

RawRawMaterialMaterial

��A multi-level BOM structure can be grouped by production lots. To do this, you must enter the following data in the MRP data of the material master record of the material for which you want to create a production lot number.

• Planning strategy: In the standard system, the requirements type KSB1 is set for production lots with individual stock and KSB2 is set for production lots with transfer posting to plant stock. You can use the requirements types for assembly planning (VSFB), planning for make-to-stock production (LSF) or planning with final assembly (VSF) as the requirements type for planning.

• In the field, "MRP-dep. reqmts", you must enter the indicator 1 so that dependent requirements (dependent requirements, reservations) are not included in planning. This means, per production lot group, planning is only triggered by the planned independent requirements and the dependent requirements are not planned for all groups.

• When planning production lots with individual stock, set the indicator "1" in the field "indiv./collective" for individual requirements and for the availability check set no indicator in the field "Multi-project availability check" so that the availability check is only carried out in the individual segment of the production lot.

• When planning production lots with transfer posting to plant stock, set the indicator "2" in the field "indiv./collective" for collective requirements and for the availability set indicator "1" in the field "Multi-project availability check" so that the availability check is carried out for all individual segments of all production lots.

��In Customizing for the Project System, you must maintain profiles for the production lots in the workstep "Maintaining Project Profiles". If you work with production orders, you should use a profile for valuated stock. If you work with repetitive manufacturing, you should use a profile for nonvaluated stock.

© SAP AG LO210 3-42

SAP AG 1999

z ATP (Available-To-Promise)

z Check against planned independentrequirements

Availability Check

��In the R/3 System, you have the option of performing availability checks according to ATP or against the planned independent requirements.

��The strategy determines which type of availability check is carried out (via the corresponding requirements class).

© SAP AG LO210 3-43

SAP AG 1999

( + )

SalesSales orders orders

ATP quantities

Production and planned orders

( - )

Sto

ckS

tock

Availability Check Using ATP Logic

��In the check according to ATP logic (ATP: available-to-promise), the system checks whether all issues are covered by existing receipts and whether there are still any open receipt quantities available to cover new issues. These open quantities which have not yet been assigned are added together to give the ATP quantity.

��In the availability check using ATP logic, the system checks whether the requirement quantities are covered by specially defined receipt and goods elements or by a specific stock. If you can confirm a quantity for the requirement date, this quantity is flagged as confirmed in the requirement and the ATP quantity of the component’s stock or receipt is reduced correspondingly. In the next availability check, you can only confirm requirements for the amount of the remaining ATP quantity.

��The system copies the result of the component check to the planned order header as the confirmed quantity and the order confirmation date.

��The ATP quantities are not calculated across planning segments and do not take any periods into account.

© SAP AG LO210 3-44

SAP AG 1999

Time

PIRPIRPIRPIRPIRPIR

TimePIRPIRPIR

01.05. 01.06.

Completelyconfirmed

Partiallyconfirmed Rest cannot be

delivered until 6.1.Rest cannot beRest cannot be

delivered until 6.1. delivered until 6.1.

Plnd indPlnd ind..reqmtsreqmts

AllocationAllocation

10.510.5

20.520.5

SOSOSOSOSOSO

Availability Check w. Plnd Ind. Reqmt Allocation

Check only carriedout against plannedindep. requirements,warehouse stock or

fixed receipts are nottaken into account

SOSOSO SOSOSO

10.05. 20.05.Time


��In the check against planned independent requirements, the system only checks against the open planned independent requirements quantities. This means that no ATP quantities, receipts or stocks are included in the availability check.

��The check by planned independent requirements allocation determines whether sufficient planned independent requirements have been planned to cover a customer requirement.

��In this check, the system uses the consumption mode (in the above example, a backward consumption) and the corresponding consumption periods.

��Generally, you can define the type of availability check to be carried out by the requirements class in the strategy. In strategy 50 (planning without final assembly), for technical reasons, you can only carry out the availability check against planned independent requirements. In strategy 60(planning with planning material), when processing the sales order, you can check against the planned independent requirements of the planning material.

© SAP AG LO210 3-45

SAP AG 1999

Customizing: Planned Indep. Reqmts Management

Period of Adjustment

Planning Strategy

Strategy Group

Consumption Mode and Periods

Reorganization Period

Requirements Type / ClassClass

��The planning strategy is an effective procedure for planning a material.

��You define the planning strategy using a requirements type from planned independent requirements management, a requirements type from sales order management or by effectively combining both requirements types.

��The strategy group enables you to combine several planning strategies.

© SAP AG LO210 3-46

SAP AG 1999

Planning Strategy

Strategy (40)

Reqmts typeCusReq. (KSV)

Reqmts typeInd.Req. (VSF)

Reqmts class (101) Reqmts class (050)

��Generally, a planning strategy groups two requirements types - for planned independent requirements and for customer requirements.

��The requirements type is allocated to exactly one requirements class. Therefore, the requirements class represents a kind of "values list" for the settings of the requirements type. This means that any changes to the requirements type are made via the corresponding requirements class.

��In the requirements class, you can control how the customer requirements are to consume the planned independent requirements,, for example.

��The definition of the requirements class is made in Customizing for Demand Management for the planned independent requirements classes and in Customizing for SD for the customer requirements classes.

© SAP AG LO210 3-47

SAP AG 1999

Reqmt

Acct Assignment

AvailabilityRequirements transferConsumptionReduction of reqmtsRelevancy to MRP

Assembly

Assembly processingOrder typeComponent availabilityMissing parts displayCapacity check

Costing

A B

XX XX

Requirements Class

��The requirements class controls requirements functions for Demand Management and Sales and Distribution in Logistics. In the requirements class, you define the type of availability check, whether the requirement is relevant to MRP ("No MRP" field) and which type of consumption should be carried out ("Assignment indicator" field).

��Furthermore, you save specifications that are used in cost accounting (for example, in the settlement profile for settling a requirements class).

© SAP AG LO210 3-48

SAP AG 1999

Plnd ind.reqs type Customer reqs type

Planning Strategy

Plnd indPlnd ind..reqsreqs type type Customer Customer reqs reqs type type

Planning Strategy

1. Main strategy2. 2. Alternative strategyAlternative strategy......8. 8. Alternative strategyAlternative strategy

Strategy Group

Strategy groupStrategy group MaterialMaterial

Allocation in the material master record

Strategy Group

Unless otherwisespecified, planning iscarried out using myrequirements types.

Planning can alsobe carried out

using our reqmts types.

��You can create the strategy groups in Customizing, in workstep "Defining Strategy Groups". A strategy group can contain a main strategy and up to seven alternative strategies. You can also create the strategies in Customizing for Demand Management.

��You assign the strategy group to the material in the material master record (MRP view) or via the MRP group.

��When you create the customer requirements or the planned independent requirements, the system uses the customer requirements type or planned independent requirements type defined in the main strategy of the strategy group assigned to the material. You can do this provided that the requirements type is not defined by user parameters or manual entry when creating the planned independent requirements or customer requirements (sales order). You can determine the requirements types that can be used for a material in the alternative strategies.

��In the sales order, you can access the customer requirements type in the sales order item, in the "procurement" view

��You can also determine the customer requirement type from the item type of the sales order if no strategy group has been assigned to the material (in Customizing for SD, workstep "Determining the Requirements Type via Operation").

© SAP AG LO210 3-49

SAP AG 1999

Planned Independent Requirements Reduction

10 Goods issue (sales order; "anonymous")11 Goods receipt20 Goods issue to sales order30 Goods issue (sales order; "anonymous")40 Goods issue (sales order)50 Goods issue (sales order)59 Goods issue (backflushing)70 Goods issue (production order)74 Goods issue (production order)82 Goods issue (sales order)

��The independent requirements of make-to-stock production, strategy 10 (requirements type LSF) are reduced by the goods issue. The oldest planned independent requirement is reduced first according to the FIFO (first-in-first-out) principle using the requirement date. Future planned independent requirements are also reduced by goods issues if the consumption mode and the forward consumption period permits this. It is important that the main strategy in the strategy group corresponds to anonymous make-to-stock production. At the goods issue for a sales order, the requirements are also reduced, provided that this has been set in the requirements class.

��In strategy 30, the sales order requirements are reduced when withdrawals are made for the sales order, the planned independent requirements upon sale from stock (similar to strategy 10).

��In strategy 59, the planned independent requirements are reduced by the goods issue for the production order of the finished product. You backflush the material components.

��In strategy 70 and 74, the assembly’s planned independent requirements are reduced by the goods issue for the production order or a cost center.

��The movement type must allow the reduction of the planned independent requirements. In addition, the system only reduces the planned independent requirements of the requirements type controlled by the main strategy of the strategy group assigned to the material. Planned independent requirements of the requirements types of the alternative strategies are not usually reduced by the material movements.

© SAP AG LO210 3-50

SAP AG 1999

Planned Indep. Requirements Reduction: Options

Plnd indep.reqmts

Customer requirement

Time

Period of adjustment

Plnd indep.reqmts


Time

Period of adjustment

BEFORE

AFTER

��As well as the reduction by goods issues/goods receipts, depending on the planning strategy, you can also reduce the planned independent requirements by adjusting them to the sales order quantities (especially in strategy 40) and by reorganizing the planned independent requirements.

��The adjustment can be carried out automatically in every planning run. You maintain the period of adjustment and the adjustment indicator in Customizing of the MRP group.

© SAP AG LO210 3-51

SAP AG 1999

Demand Management: Summary (1)

z Make-to-stock production strategies plan theprocurement of materials using planned independentrequirements. In make-to-orderproduction procurement is only triggered by the salesorder.

z The consumption of planned independentrequirements by customer requirements depends onthe strategy using the consumption mode and theconsumption period.

z The effects of the strategy are controlled by therequirements types or the correspondingrequirements classes.

© SAP AG LO210 3-52

SAP AG 1999

Demand Management: Summary (2)

z ATP checks against receipt and issue elements. Or, inthe check against planned independent requirements,the system only checks the planned independentrequirements.

z Planned independent requirements can be adjusted tocustomer requirements.

© SAP AG LO210 3-53

Exercises

Unit: Demand Management Topic: Sales Orders in Make-to-Stock Production


• Describe the effect of a sales order in make-to-stock production.

Precision Pumps Inc. has produced pumps to stock using make-to-stock production. A sales order is received. The sales order does not influence planning, but is displayed in the MRP list and stock/requirements list. The sales order is delivered.

1-1 Create a customer requirement in make-to-stock production and examine its effect in planning.

1-1-1 In the Demand Management menu, create a customer requirement of 10 pieces for pump T-F1##. The date should lie 4 days after the second planned independent requirements date in the stock/requirements list (that is, the date of the second LSF requirement, which you made a note of as first date in the previous exercise). Use the following data:

Delivering plant: 1000

Requested delivery date: 4 days after the second planned independent requirements date in the stock/requirements list

Material: T-F1##

Quantity: 10 pieces

Choose Enter and then check that the requirements type KSL is selected (sale from stock without independent requirement reduction). Save the customer requirement.

1-1-2 Access the stock/requirements list for material T-F1## in plant 1000. (You can access the stock/requirements list directly from Demand Management.) You can see that the sales order is displayed for information purposes only but it is not relevant to planning (that is, it has no effect on the available quantity).

Take note of the sales order number/item number:

__________________ / ______

and the sales order quantity:

___________________

© SAP AG LO210 3-54

1-2 Now, you reduce the planned independent requirements by withdrawing stock for the sales order.

1-2-1 The customer appears at the sales desk and wants to collect 8 of the 10 pumps ordered. The customer placed the order per telephone quite a while ago. You created the sales order in the system and it is displayed in the evaluation for informative purposes, although the material ordered is from make-to-stock production.

From the Inventory Management menu, post the withdrawal to the customer (goods issue). Carry out the goods movement using the following parameters:

Movement type: 231 (Movement type -> Consumption -> To sales order -> From warehouse)

Plant: 1000

Storage location: 0002.

Enter the sales order number and item you took note of above, the material number T-F1##, the quantity 8 pieces and then save.

1-2-2 Access the stock/requirements list and examine the stock situation.

How has the stock situation changed?

_______________________________________

Which planned independent requirements and sales orders have been reduced?

_______________________________________

© SAP AG LO210 3-55

Exercises

Unit: Demand Management Topic: Planning with Final Assembly


• Describe the functions of the strategy planning with final assembly.

• Describe the effects of a sales order when using the strategy planning with final assembly.

Precision Pumps Inc. has produced pumps to stock. They now want to change their strategy to planning with final assembly.

2-1 In plant 1000, you want to enter a demand program (planned independent requirements) beginning in six months time and distributed over a period of six months. For these 6 months of your planning, choose the strategy planning with final assembly (VSF requirements), whereby you plan the production of 1200 pumps. To do this proceed as described below:

2-1-1 Maintain the material master: In the material master record of pump T-F1## enter the strategy group 40 (planning with final assembly). To do this, access transaction Change material immediately from the master data of production with the following parameters:

Select view(s): MRP 3

Organizational levels: Plant 1000

In the field strategy group enter the value 40 and save the material master record.

2-1-2 Maintain planned independent requirements: From the menu of Demand Management create planned independent requirements for the material T-F1## in plant 1000. Set the planning period to monthly format by entering the indicator M in the planning period field in the initial screen for the transaction. Start the transaction.

Enter the material number T-F1## and the plant 1000 in the table screen in a separate row, select this row and select the schedule lines tab card to access the schedule lines screen. Make sure the requirements type is VSF.

© SAP AG LO210 3-56

Access the function Split period online to instruct the system to automatically split the production quantity of 1200 pieces over the 6 month period. Use the following data:

From: M, current month + 6

To: Current month +11

Planned qty: 1200 pieces

Split (period indicator for automatic distribution of requirements quantity): M.

Confirm your entries with Enter and save the requirements.

2-2 Display the stock/requirements list for material T-F1## in plant 1000 and take a note of

the second VSF requirement’s date: ___________________

and the requirements quantity: ___________________

2-3 Starting from the MRP menu, carry out multi-level, single-item planning for pump T-F1##. Use the same creation indicators as in the previous exercises. Start the planning run by choosing Enter twice. Once the MRP run has been carried out successfully, the system displays the statistics.

2-3-1 Choose the function Material list, select the row with the pump T-F1## and goto to the stock/requirements list of the material. You now see the planned orders that have been created for the requirements (refresh the list if necessary).

2-3-2 What is the available quantity for the second VSF requirement date? ___________

2-3-3 What is the planned independent requirements quantity for the second VSF requirements date? ___________

2-4 Now, enter a customer requirement of 10 pieces from the Demand Management menu for material T-F1## in plant 1000. Use the second VSF planned independent requirement date + 4 days (that is, the date you noted above + 4 days) as requirement date for the customer requirement. Make sure the requirements type is KSV (sales order with consumption) and save your entries.

© SAP AG LO210 3-57

2-5 Access the stock/requirements list again and analyze the effect of the sales order you just created.

2-5-1 What difference do you see from the sales order you created in make-to-stock production (previous exercise)?

____________________________________________

2-5-2 Note the date and the quantity of the planned independent requirement for the second VSF requirements date in the stock/requirements list:

____________________________________________

2-6 In the stock/requirements list, select the second VSF planned independent requirement and access the function Display element, which will display the planned independent requirements. In the planned independent requirements table, select the row with the VSF requirements and examine the VSF planned independent requirement quantities in the schedule lines screen (as they are on the database). Take note of the requirements quantity on the same date as you noted in the previous question: ________

Are the two quantities (i.e., the quantity in this question and the quantity in the previous question) different? If yes, by how much?

_______________________________

2-7 Analyze the total planned independent requirements situation. To do this, access the function Display total requirements in the evaluations for Demand Management. Start the evaluation for material T-F1## in plant 1000 with the assignment indicator 4 (information on all allocations).

2-7-1 Which VSF requirements quantities were consumed by which customer requirements quantities?

____________________________________________

2-7-2 Which planned independent requirements quantities are displayed in the stock/requirements list?

____________________________________________

2-8 10 pumps from stock are delivered to the customer. Post the goods issue. Here you must enter the sales order number and the item number. You can find this number in the stock/requirements list in the VSF planning sales order (planning with final assembly). You already know the procedure for this goods movement posting from the previous exercise.

2-8-1 How has the stock situation changed?

_____________________________________________

2-8-2 Which planned independent requirements (customer requirements/planned independent requirements) were reduced by the withdrawal? (Here, from the stock/requirements list, look in the schedule lines of the VSF requirements on the database.)

_____________________________________________

© SAP AG LO210 3-58

Exercises

Unit: Demand Management Topic: Subassembly Planning


• Describe the functions in subassembly planning.

• Monitor the consumption of the assembly’s planned independent requirements by dependent requirements or reservations created by the procurement elements for the finished product.

Precision Pumps Inc. wants to reduce delivery times for the pump. Therefore procurement of the assemblies is to be triggered in advance, not just when the pump is planned. This reduces the total replenishment lead time for the end product.

3-1 You want to plan subassemblies in order to reduce delivery times for the pump. To do this, you must create planned independent requirements for the assemblies of the pump T-F1## using an appropriate requirements type. We are now going to carry out subassembly planning using assembly T-B1## in plant 1000 as an example.

3-1-1 Modify the material master for T-B1## as follows: Enter the following parameters in the MRP 3 view in plant 1000:

Strategy group: 70 (assembly planning)

Consumption mode: 2 (Backward/forward)

Consumption period Forward: 12 (workdays)

Consumption period Backward: 12 (workdays)

Mixed MRP: 1 (assembly planning)

Save the material master record.

3-1-2 For material T-B1## in plant 1000, you enter a planned independent requirement of 180 pieces for the month after next. Set the planning period to “ monthly” by entering the indicator M in the planning period field in the initial screen of the transaction. Use the following data:

Requirements date: Current month +2

Requirements quantity: 180 pieces.

Make sure the requirements type is VSFB and the consumption indicator is 3 in the item screen of the planned independent requirements. Save the requirement.

© SAP AG LO210 3-59

3-2 Access the stock/requirements list for material T-B1## in plant 1000.

3-2-1 Which planned independent requirement quantity for the assembly independent requirement created above is still relevant for requirements (displayed)?

___________________________________________

3-2-2 Examine the consumption in the display of the total planned independent requirements situation of material T-B1## in plant 1000 with assignment indicator 4 (complete information on assignments). You can access this screen from the demand management menu or directly from the stock/requirements list. Which type of requirements consumed the VSFB planned independent requirements and which quantity?

___________________________________________

3-2-3 Is the VSFB requirement covered by a procurement element?

_________

3-3 Select the VSFB planned independent requirement in the current stock/requirements list.

3-3-1 Which VSFB planned independent requirement quantity appears when you access the Display element function?

__________________________

3-3-2 Explain the difference of the display in the list?

____________________________________________________

3-4 Now carry out single-item, multi-level planning for material T-B1## in plant 1000. Proceed using the same transaction and settings as in the previous exercises.

3-5 Access the stock/requirements list for material T-B1## in plant 1000.

3-5-1 Which planned independent requirement quantity for the assembly independent requirement created above is still relevant for requirements (displayed)?

________________________________________

3-5-2 Is the requirement covered by a procurement element?

____________

© SAP AG LO210 3-60

Exercises

Unit: Demand Management Topic: Customizing


• Check the Customizing settings of the planning strategies.

The SAP person responsible for the project checks the settings for strategy 50 in Customizing.

4-1 In Customizing for Demand Management, check which requirement types and classes are assigned to strategy 50 (planning without final assembly) (you can see these settings in Customizing, in the step Define Strategy).

Planned independent requirements

Customer reqmts

Reqmts type

Requirements Class

4-1-1 For which data object (requirements class or requirements type) do you make the individual settings to activate strategy 50.

_____________________________________________________

4-1-2 What is the Customizing path you must access to modify this data object?

Planned ind. reqmt: ______________________________________

Customer reqmts: ______________________________________

© SAP AG LO210 3-61

4-2 When planning with strategy 50, customer requirements consume planned independents. What values do the consumption or assignment indicators have in customizing?

Requirements Class

Consumption or assignment indicator

4-3 Which planning strategies are allowed by strategy group 50 (Planning without final assembly)? __________________________________

4-4 In Customizing, display the MRP group L210 (Customizing step Total Maintenance of the MRP Groups).

4-4-1 Which strategy group is maintained for plant 1000 in the MRP group L210? ___________

4-4-2 Which values have been maintained for the planning horizon and the rescheduling horizon in this MRP group?

______________________ ____________________

Your system administration informs you that material T-F1## is to be planned with the MRP parameters saved in the MRP group L210 Therefore, assign this MRP group to the material master by maintaining the MRP group field in the MRP 1 view.

© SAP AG LO210 3-62

Solutions

Unit: Demand Management Topic: Sales Orders in Make-to-Stock Production

1-1

1-1-1 Menu path: Logistics o Production o Production Planning o Demand Management o Customer Requirements o Create

1-1-2 Sales order number/item number: Varies/10

Sales order quantity: 10 pc

1-2

1-2-1 Menu path: Logistics o Materials Management o Inventory Management o Goods Movement o Goods Issue

1-2-2 Stock change: Stock reduced from 42 pieces to 34 pieces.

Which planned independent requirements and sales orders have been reduced? The oldest planned independent requirement has been reduced from 17 pc to 9 pc. Simultaneously, the customer requirement was reduced from 10 pc to 2 pc.

© SAP AG LO210 3-63

Unit: Demand Management Topic: Planning with Final Assembly

2-1

2-1-1 Menu path: Logistics o Production o Master Data o Material Master o Material o Change o Immediately


2-2 The second VSF requirement date: Varies

Requirements quantity: Varies

2-3

2-3-1

2-3-2 Available quantity on the second VSF requirements date: 0 pc

2-3-3 Planned independent requirements quantity on the second VSF requirements date: As above

2-5

2-5-1 Sales order reaction in make-to-order production: The sales order with requirements type KSV is relevant to requirements. This means it affects the available quantity.

2-5-2 Planned independent requirements on the second VSF requirements date now: The planned independent requirements displayed in the current stock/requirements list is 10 less than the original requirement you took note of above.

2-6 Requirements quantity on the above date: Varies (original quantity)

Difference between the two quantities? Yes, by 10 pc.

© SAP AG LO210 3-64

2-7 Menu path: Logistics o Production o Production Planning o Demand Management o Evaluations o Display Total Requirements

2-7-1 Consumed VSF requirements quantities: The second VSF planned independent requirement quantity is consumed by the KSV customer requirement.

2-7-2 Displayed planned independent requirements quantities: In the current stock/requirements list, the system displays the planned independent requirement quantities that have not been consumed.

2-8

2-8-1 New requirements situation: The available plant stock has been reduced from 34 pieces to 24 pieces.

2-8-2 Planned independent requirements reduction: The customer requirement was reduced and is no longer included in the list. The VSF planned independent requirement was also reduced. That is, the second VSF quantity was also reduced by 10 pc. These 10 pc are recorded as a withdrawal quantity in the planned independent requirements schedule lines.

© SAP AG LO210 3-65

Unit: Demand Management Topic: Subassembly Planning

3-1

3-1-1 Menu path: Logistics o Production o Master Data o Material Master o Material o Change o Immediately


3-2

3-2-1 Planned independent requirements quantities still relevant to requirements: Varies, for example 55 pc.

3-2-2 Consumption with the VSFB planned independent requirement: Varies. The dependent requirements (each for 25 pc) consume the VSFB independent requirements.

3-2-3 Procurement elements for the VSFB requirements: No, there is not an appropriate procurement element available as no planning run has been carried out yet.

3-3

3-3-1 VSFB planned independent requirements at Display element: The complete quantity of 180 pc is displayed.

3-3-2 Explanation: The system only displays the non-consumed quantity in the list. It did not find a reduction of the planned independent requirements so that the complete quantity is still available on the database.

3-5

3-5-1 Planned independent requirements quantity displayed: Varies, as above, for example 55 pc.

3-5-2 Procurement element: Yes, the requirement is now covered by a new planned order.

© SAP AG LO210 3-66

Unit: Demand Management Topic: Customizing

4-1 Menu path: Customizing-Production o Production Planning o Demand Management o Planned Independent Requirements o Planning Strategy o Define Strategy


Customer reqmts

Reqmts type VSE KEV

Requirements Class

103 045

4-1-1 Settings to activate strategy 50: You make the individual settings in the requirements class. You then assign the requirements class to the requirements type.

4-1-2 Customizing path to modify the requirements classes:

Planned ind. reqmt: Customizing-Production o Production Planning o Demand Management o Planned Independent Requirements o Requirements Types/Requirements Classes o Maintain Requirements Classes

Customer reqmts: Customizing-Sales and Distribution o Basic Functions o Availability Check and Transfer of Requirements o Transfer of Requirements o Define Requirements Classes

4-2 Consumption indicator or assignment indicator in Customizing: You make the settings in Customizing in step, Define Strategy.

Requirements Class

103 045

Consumption or assignment indicator

2 2

© SAP AG LO210 3-67

4-3 Planning strategies of strategy group 50: As well as 50, the strategies with numbers 40 and 20 are allowed (menu path: Customizing-Production o Production Planning o Demand Management o Planned Independent Requirements o Planning Strategy o Define Strategy Group).

4-4 Menu path: Customizing-Production o Material Requirements Planning o MRP Groups o Carry Out Overall Maintenance of MRP Groups

4-4-1 Strategy group of MRP group L210: Strategy Group 40 (choose Strategy Group in the MRP group maintenance screen).

4-4-2 Planning horizon and rescheduling horizon:

200 workdays, 200 workdays (choose Planning horizon or Rescheduling horizon in the MRP group maintenance screen).

© SAP AG LO210 4-1

SAP AG 1999

MRP Run

Contents:

z Scope of planning

z Low-level coding

z Net change planning in the long-term and short-termplanning horizon, regenerative planning

z Planning file

z Customizing structure for MRP

z MRP in simulation mode

z Planning table

© SAP AG LO210 4-2

SAP AG 1999

MRP Run: Unit Objectives

z explain the Customizing structure and theprerequisites for MRP,

z carry out total planning and single-item planning,z control the scope of planning,z execute the MRP run in simulation mode.


© SAP AG LO210 4-3

SAP AG 1999


11 Introduction


MRP Run44


Overview22


99 MRP Areas


66 MPS


© SAP AG LO210 4-4

SAP AG 1999

Complete MRP Overview

Plannedorder

Dep. reqmts

Reservations

PurchaserequisitionsProduction

order

Purchase order

Schedule lines

MRPMRP

Only formaterials procured

externally

Only formaterials procured

externally

Convert

Warehouse

Sales ordersPlanned ind reqmts

��Material requirements planning takes current and future sales as it’s reference point. The planned and, depending on planning strategy, actual requirements quantities trigger the MRP calculation. In MRP, the requirements elements include sales orders, planned independent requirements, material reservations, the dependent requirements created by exploding the BOM and so on.

��If the MRP run determines shortage quantities, the system creates procurement proposals: Purchase requisitions and planned orders are elements planned in-house, and which can be changed, rescheduled or deleted when and where necessary.

��In the case of in-house production, the system creates planned orders for the planning of production quantities. When planning is complete, plannned orders can be converted into production orders. When this is done, the system transforms the planned order’s dependent requirements into production order reservations.

��In the case of external procurement, the system creates either a planned order, or directly creates a purchase requisition, or a schedule line for a pre-existing scheduling agreement for planning the external purchase order quantity. When planning is complete, planned orders can be converted into purchase requisitions and, at a later date, the purchase requisitions can be converted into purchase orders.

��You control whether the system immediately creates purchase requisitions or firstly creates planned orders in the initial screen of the planning run using the "creation" indicator for purchase requisitions.

��If a scheduling agreement exists for a material and is relevant to MRP in the source list, then you can also create schedule lines directly in MRP. You control this using the creation indicator for schedule lines in the initial screen of the planning run.

© SAP AG LO210 4-5

SAP AG 1999

Activate MRP

Set up planning file

Maintain MRP data:valid MRP typevalid material status

PlantPlant

MaterialsMaterials

AA

MaterialMaterial

Prerequisites for MRP

��By selecting "Material requirements planning" in the Customizing IMG activity "Activate MRP and set up planning file", you can specify for which plant an MRP run is to be carried out. Entries in the planning file can be made only after this indicator has been set. That means, once the indicator has been set:

• when a material that is relevant for MRP is created, the system copies the material number to the planning file and sets both the "total change indicator" and the "net change indicator",

• whenever a change relevant to MRP is made for the material, the system sets the "total change" or the "net change planning" indicator (dependent on the planning horizon) in the planning file.

��If materials have been created, and subsequently the MRP run for a plant is activated, you must create an entry in the planning file for all materials relevant to MRP in this plant. This function can only be used as background processing. You activate this function in the activity "Set up planning file" in the Customizing IMG activity "Activate MRP and set up planning file", which you can access directly from the MRP menu.

��Materials already in the planning file can be excluded from the MRP run using the MRP type in the material master (for example, by using the MRP type ND).

��In addition, you are able to lock a material using the material status for MRP or generate a warning regarding the planning.

© SAP AG LO210 4-6

SAP AG 1999

Material Status

Application No dialog Warning Error

ApplicationApplication ControlControl

PurchasingBOM headerBOM itemRoutingInd reqmtForecastMRPProduction order headerProduction order itemQuality checkPRT (prod./resource tool)Plant maintenanceInventory management

Material StatusMaterial Status Field FieldBasicdata

PlantXXX

X

XX

XXX

X

XX

��The material status enables you to control how a material is used in various business applications. You define this in the Customizing IMG activity "Define material status".

��You can define the material status cross-plant ("Basic data 1" view) or for an individual plant ("MRP 1" view). If both have been maintained, the more restrictive of the two applies for the respective application.

��In general, you can limit how a material is used in various ways:

• It can be flagged for deletion.

• It can be locked for specific business transactions by the material status (materials management and production planning and control views).

��You can display whether a material is subject to certain restrictions by means of the status information function. You call up this function from the MRP 1 view of the material master by choosing the pushbutton "Information on material".

© SAP AG LO210 4-7

SAP AG 1999

MRP group

AA

MaterialMaterial

Material master

BBMaterial 002Material 002

AAMaterial 001Material 001

...

Plant parameters

Pri

ority

Customizing for MRP

��The Customizing settings for MRP are essentially controlled on three levels:

• Material master,

• MRP group (Customizing IMG activity: Carry out overall maintenance of MRP groups),

• Plant parameters (Customizing IMG activity: Carry out overall maintenance of plant parameters).

��The MRP group is an organizational object, with which you can assign special planning control parameters to a group of materials. Included in these are, for example, the "creation" indicator for purchase requisitions, schedule lines, the planning horizon and so on. You define the MRP group with these specific control parameters and assign the materials in the material master record (MRP data screen 1) to the corresponding MRP group.

��If you have the option of entering a setting on more than one of these levels, the setting in the material master overrides the setting in the MRP group to which the material is assigned. The setting in the MRP group has, in turn, greater influence than the setting in the plant parameters.

© SAP AG LO210 4-8

SAP AG 1999

MRP Run

Planning run for one plant - online (total planning)Planning run for one plant - online (total planning)

Planning run for one plant - background processing(total planning)

Planning run for one plant - background processing(total planning)

Planning run for one material - online (single-item planning)Planning run for one material - online (single-item planning)

AA

MaterialMaterial

Plant

Plant

��You can execute the planning run on two levels: for an individual material or as a total planning run for a plant. In addition, it is possible to execute a total planning run for several plants and/or MRP areas.

��You can execute a single-item planning run either for a specific material only (single level) or for all BOM levels (multi level).

��A total planning run can be executed online or as a background job.

��Total planning for a plant encompasses all materials relevant to MRP for this plant and includes the BOM explosion for materials with BOMs.

��From the MRP menu, you can execute total planning "Online" or "As background job". In order to execute the total planning run as a background job, you select a report variant limiting it to the corresponding plant and plan the job.

��A user exit enables you to limit the total planning run specifically to those materials which fulfill freely definable criteria. You can use this, for example, to select all the materials belonging to a particular MRP controller.

© SAP AG LO210 4-9

SAP AG 1999

Finished product 1 Finished product 2


Component 1 Component 2 Component 3

Component 4

Low-level code 000Low-level code 000



BOMsBOMsFinished product 1

Assembly 1 Component 2

Component 1 Component 2

Finished product 2

Assembly 2 Component 4


Low-Level Coding

Planning Sequence

Low-levelcode

the lowest level at which thematerial appears in a BOM=

��The low-level code is the lowest level at which the material appears in a BOM. A material’s low-level code is always greater than the low-level code of all its predecessors in all BOMs.

��The low-level code controls the sequence of the planning run. The system plans the materials with low-level code 0 first, then those with low-level code 1 and so on. All materials are thus planned in the correct sequence in a planning run.

��The low-level code is calculated and saved at client level during BOM maintenance. You can display the low-level code in the material master from the MRP 1 view by choosing "Information on material" or in the planning file entry, provided that an entry for that material exists in the planning file.

© SAP AG LO210 4-10

SAP AG 1999

StockStocktransfertransfer

Product

Assembly

Plant 1100+

+

-.Plant 1000

Product

Assembly -

Scope of planning Scope of planning inCustomizing:(1) Plant 1000(2) Plant 1100

Planning sequence:

Mat. product: Plant 1000 Plant 1100

Mat. assembly:Plant 1000 Plant 1100 Plant 1000

Cross-Plant Total Planning

��The total planning run can be triggered per plant, for example, as a background job with a separate job for each plant to be planned. If there are mutual dependencies (for example, due to stock transfer), plants may have to be planned several times (the plant 1000 in the slide).

��It is therefore possible to group together several plants (or MRP areas) in a scope of planning for a planning sequence and to plan on a cross-plant basis in a total planning run. The system takes mutual dependencies, such as those arising through stock transfer, into account automatically (the situation displayed in the slide requires that both plants 1000 and 1100 are entered in the scope of planning: the planning then takes place in the suggested sequence of plant 1000, plant 1100 and, if necessary, in plant 1000 again).

��You define the scope of planning for total planning in the Customizing for MRP activity "Define scope of planning for total planning". If you have activated the MRP with MRP areas, you can group together plants and MRP areas into a scope of planning. In particular, it is possible to plan all the materials in an MRP area.

��By using scope of planning, you can execute a total planning run online or as a background job for a plant, for several plants, for an MRP area, for several MRP areas in MRP, in MPS and in Long-term Planning. The planning run using scope of planning must always be started with parallel processing.

© SAP AG LO210 4-11

SAP AG 1999

Parallel Processing During the Planning Run

Sessions on several computers or processors

Split into independent workpackages

Planning run with "Parallel processing"

��In the case of planning with scope of planning, you must set the indicator "Parallel processing" in the planning run.

��Parallel processing means that the planning run is divided into several independent work packages that run parallel to each other in different sessions. You define the sessions in the Customizing IMG activity "Define parallel processing in MRP". You can access this activity directly from the MRP menu.

��Advantages of parallel processing:

• Improved performance: if several computers or processors are available for these sessions, the time required for a planning run can be reduced significantly.

• Robustness: the planning run can continue further if there is a runtime error for a material. This material is indicated with a corresponding entry in the material list. (Without parallel processing, the planning run terminates with a dump and the remaining materials are not planned further.)

��The work packages are divided up by low-level code. The improvement in performance is particularly clear if the BOMs have a wide structure; if therefore the individual elements in the BOM are made up from many components.

© SAP AG LO210 4-12

SAP AG 1999

Extent of the Planning Run

Planning Types:

Planning all materials in a plant

Planning all materials which have undergone a change relevant to the planning run

(net change planning procedure)

Planning horizon:

Unlimited, or

Planning in the planning horizon

Plant

Planned receipts

Reqmts

TimePlanninghorizon

��During regenerative planning, the system plans all materials for a plant. This is practical when carrying out the planning run for the first time and on rare occasions when, due to technical errors, the consistency of the data cannot be guaranteed.

��During the everyday running of the company, it is usually practical to carry out MRP for only those materials that have been subject to a change relevant to MRP such as outward stock movements, sales orders, and alterations to the BOM structure. Net change planning enables the planning run to execute in a shorter time.

��During net change planning in the planning horizon, the system only takes changes within the planning horizon into account. The system plans only those materials that have been subject to a change within the planning horizon that is relevant to MRP. The materials are planned only within this horizon.

��You set the planning horizon in Customizing for MRP as a plant or MRP group parameter. The planning horizon should at least span the time period in which sales orders are received, and, furthermore, contain the delivery and total lead times for the material.

��You specify the type of planning run via the "processing key" field in the initial screen for planning. In single-item planning, you are only able to differentiate whether "net change planning" (NETCH) or "net change planning in the planning horizon" (NETPL) is to be performed. In total planning, you also have the option of the key NEUPL, with which all materials in the planning file are planned.

© SAP AG LO210 4-13

SAP AG 1999

Control Parameters for MRP

Processing key

NEUPLNETCHNETPL

Create purch. requisition

123

in the opening periodSchedule lines

123

in the opening period

Create MRP list

123

only for exc. messagesnever

Planning mode

123

new BOM and routingdelete planning data

adjust data

MRP group

always

��The following control parameters for MRP are required for the planning run:

• Processing key: you define the planning type as regenerative planning or net change planning over the whole period or restricted to the planning horizon.

• The indicators "Create purchase requisition" and "Schedule lines" are only relevant for materals that are procured externally. You can determine whether or in which period purchase requisitions and schedule lines are required as the result of the planning run.

• You can determine further whether the planning run is to generate MRP lists. It is also possible to have the system generate MRP lists only when certain exception messages have appeared for a material (the exception messages that should trigger an MRP list to be generated can be defined in the Customizing IMG activity "Define and group exception messages").

• The planning mode defines whether the existing planning data should simply be adjusted, whether BOMs and routings should also be re-exploded or whether the planning should be started from the very beginning again.

��You can also set the creation indicator for purchase requisitions, schedule lines and MRP lists in the MRP group. The materials that are assigned to this MRP group are then planned accordingly in the total planning run.

© SAP AG LO210 4-14

SAP AG 1999

Material undergone achange relevant to MRPMaterial undergone achange relevant to MRP

Planning filePlanning file

Rea

d

Res

et

Planning file

entry made

Up-to-datemaster plan

AA

MaterialMaterial

PlanningPlanningrunrun

Planning File and Material Requirements Planning(1)

��The planning file contains all materials relevant to MRP for each plant.

��Net change planning only plans those materials that have been subject to a change relevant to MRP. Changes relevant to MRP lead to a planning file entry being created specific to the plant and material.

��The planning file entry includes the following information:

• the low-level coding,

• whether the material has been subject to a change relevant to MRP (NETCH or NETPL indicator),

• whether the BOM must be re-exploded or whether all existing order proposals are to be deleted.

��The respective entries in the planning file are made automatically by the business application of the system. They can, however, also be made manually from the MRP menu in individual cases. (When doing this, you should remember that a change in the routing does not cause an indicator to be set in the planning file automatically.)

��You can use the transaction "Display planning file entry" from the MRP menu to analzye the contents of the planning file entry record for the materials.

© SAP AG LO210 4-15

SAP AG 1999

Planning File and Material Requirements Planning (2)

Total periodPlanning horizon

ChangesChanges

x

x

x

Planning runPlanning run NETPLNETPLNETCHNETCH

NEUPLNEUPL

Materialnumber

Plant NETCHindicator

NETPLindicator

4710 0001 x -4711 0002 x -4712 0001 x4713 0003 x

Materialnumber


NETPLindicator

4710 0001 - -4711 0002 - -4712 0001 - -4713 0003 - -

Materialnumber


NETPLindicator

4710 00014711 0002 x x4712 00014713 0003 x

. .

. .

. .

��During the planning run, the system checks every entry for a material in the planning file.

• In the case of regenerative planning, the system plans all materials contained in the planning file without taking the indicators into account.

• In the case of net change planning, the system only plans those materials that have been flagged with the "NETCH planning file entry" indicator.

• In the case of net change planning in the planning horizon, the system only plans those materials that have been flagged with the "NETPL planning file entry" indicator.

��Once the planning run has been carried out, the respective entry in the planning file is reset. The "NETCH planning file entry" and "NETPL planning file entry" indicators are reset upon regenerative and net change planning. During net change planning in the planning horizon, only the "NETPL planning file entry" indicator is reset.

��You can define whether a planning entry is to be retained or deleted if a termination should occur while planning a material, in the IMG activity "Define error processing in the planning run" in Customizing for MRP calculation by choosing "Del. planning flag". This determines whether the material will be taken into account in the next planning run or not.

© SAP AG LO210 4-16

SAP AG 1999

Net Change Planning in the Planning Horizon

Planning horizon

Time

Net change planning inplanning horizon (NETPL),no change in planninghorizonrequirement is not planned

Net change planning inplanning horizon (NETPL),no change in planninghorizonrequirement is not plannedPlanning horizon

Time

Reqmt Receipt

Today

Last planning run

Problem Solution: regular MRP or regenerative

planning

Net change planning in theplanning horizon (NETPL),NETPL indicator setrequirement is planned,NETPL indicator reset

��In order to accelerate MRP, you have the option of limiting it to the planning horizon. Only those requirements within the planning horizon are then covered by goods receipts. If you only execute change planning in the planning horizon, the system does not plan those requirements lying outside the planning horizon.

��It is important to note that, as time lapses, requirements may fall into the planning horizon that have not yet been covered by goods receipts. As long as no other changes relevant to MRP are made, these requirements will not be covered until the next planning run for the whole time axis ("NETCH" indicator). You should therefore carry out this type of planning run on a regular basis.

��A further possibility for dealing with the problem shown in the slide is to set the indicator "Regular MRP" in Customizing for the MRP type of the material and to also maintain the maximum MRP interval in the MRP group. The material is then included automatically in MRP after the maximum MRP interval has gone by, regardless of the settings in the planning file.

��In order to be able to plan the changes outside the planning horizon, you must carry out net change planning at larger intervals.

© SAP AG LO210 4-17

SAP AG 1999

Executing the Planning Run for Single Items

Single-Item, Multi-Level Planning

Planning a BOM structure

Possibility of changing the masterplan for each material in the BOM manually.

Single-Item, Single-Level Planning

Planning one BOM level only

Dependent requirements are transmitted for the next BOM level

Manual changes can be made atany time

��In single-item, multi-level planning, the system plans the materials that are planned using MRP in the BOM of a material.

��During single-item, single-level planning, the system generates dependent requirements for materials at the next BOM level. The single-item, interactive planning is available as a variant in which the system displays the current planning situation before the planning run can be triggered manually.

��The single-item, interactive planning is available as a variant in which the system displays the current planning situation before the planning run which can then be triggered manually.

��You can check and process planning results for single-item, single-level or multi-level planning before saving them (indicator "Display results before they are saved" in the initial screen). The MRP controller is able to create, change, delete and reschedule order proposals before planning is resumed.

© SAP AG LO210 4-18

SAP AG 1999

Single-Item, Multi-Level Planning

optionaloptionalMaterials overview

Select materials Utilities:

- Sort- Search- in the overview- in individual lists

Executeplanning

Executeplanning

Finished product



Processplanning results

Top-downTop-downplanningplanning

��During single-item, multi-level planning, the system explodes the material’s BOM and creates and plans the dependent requirements of the assemblies and components. If the components also have BOMs, these are also exploded and then the components are planned. This is repeated until all BOM levels have been exploded. All materials are planned according to the parameters entered in the initial screen of single-item, multi-level planning. Planning is carried out as "top-down planning".

��When executing single-item, multi-level planning, you have the option of displaying and checking the planning result before saving it (indicator "Display results before they are saved" in the initial screen):

• If you do not display the planning results, they are automatically written to the database during the MRP run. In addition, you have the option of checking the result for all planned materials directly at the end of planning by selecting the "Display matl. list" function in the initial screen.

• Single-item, multi-level planning with an interactive check of the planning results (whereby the indicator "Display results before they are saved" is set) has the advantage that the results are only saved to the data base once they have been checked and, if necessary, changed by the MRP controller. The materials to be planned this way are displayed as breakpoints, and you are able to control at which material you would like to stop. You are then able to display the planning result for the desired breakpoint and change the planning result before proceeding with further planning. The changes take immediate effect on subsequent planning.

© SAP AG LO210 4-19

SAP AG 1999

Options in "Interactive" Planning

"Single-item, interactive"single-level, when accessed only the current situationis read, planning is triggered manually

"Single-item, multi-level" with "Display results before they are saved"

multi-level, the system displays the planning result breakpoint bybreakpoint, you can vary breakpoints

"Single-item, multi-level" with "Simulation mode"

multi-level, option of mulit-level planning of a planned order

��You have the following options for influencing the planning result interactively:

• "Single-item, interactive planning": you plan on a single-level, the system displays only the current planning situation when you access the function, you trigger the planning manually from the menu for single-item, interactive planning and save the result when closing the function.

• "Single-item, multi-level planning" whereby you set the indicator "Display results before they are saved" (this function is also possible for single-level planning): the system displays the planning result breakpoint by breakpoint and you can define the breakpoints on a variable basis. The result is to be saved at every breakpoint.

• "Single-item, multi-level planning" whereby you set the indicator "Simulation mode": you have the option of multi-level planning of a planned order.

© SAP AG LO210 4-20

SAP AG 1999

MRP in Simulation Mode (1)

Today

8 Days

Time Reqmtsdate

Situation: Problem

12 Days

Business Situation

��A simulation mode is available for single-item, multi-level planning (indicator "Simulation mode" in the initial screen). You can use this planning type to analyze and, if necessary, change the planning situation for a planned order on all BOM levels.

��This example depicts a BOM structure with a replenishment lead time of 20 days. This time period is eight days longer than requirements date of the finished product, which lies in the future.

��There is an eight day delay in the procurement for the finished product, when taking the whole BOM structure into account. The procurement or production process for several assemblies or components should have already been instigated in order for the requirements date for the finished product to be met. In this situation, the system generates an exception message "Opening date in the past" for the affected procurement proposals.

© SAP AG LO210 4-21

SAP AG 1999

Scheduling Problems after MRP Run

Today

Time Reqmtsdate

Main Memory

��Simulative MRP performs a multi-level BOM explosion and schedules the procurement elements in the same way as non-simulative MRP. Using the requirements date of the finished product as a starting point, the MRP run schedules backwards over all BOM levels. Procurement elements whose opening date has slipped into the past are scheduled from today’s date onwards.

��In the case of scheduling problems arising (for example, with dates in the past), the system creates an exception message in all affected planned orders of the higher-level materials. The time delay is also displayed. The system indicates the total number of days that you are behind schedule as a result of the scheduling problems in the lower-level assemblies or components. This presupposes that, in Customizing, you have not permitted the start date in the past.

��The procurement element (or elements) which have caused the time delay or exception message are easily identified and analyzed using the tools provided by the simulative MRP.

��You initiate simulative planning by flagging the "Simulation mode" function in addition to the usual parameters, in the initial screen for single-item, multi-level planning and choosing "Enter" twice.

��In simulative MRP, the system stores all procurement proposals of the same BOM structure in the main memory. The planning results can be checked and changed by the MRP controller. You also have the option of carrying out planning again without leaving the transaction and having to re-enter it.

© SAP AG LO210 4-22

SAP AG 1999


Delay

Today

Time Reqmtsdate

Main Memory

3

2

1

Delay 2

Delay 1

Delay = delay 1 + delay 2

��You can analyze scheduling problems in simulative MRP by looking at the delay. The delay for the planned order 3 of the finished product shows the number of days by which the procurement chain must be moved into the future, so that the start dates of all the planned orders for the assemblies and components do not lie in the past.

��The delays are calculated for each element as the time that the element is behind with regards to the start date of the superior element in the BOM. The delay for the procurement chain is the total of these individual delays. In our example, the delay is 8 days.

��Delays stemming from the planned order for the finished product are not taken into account. These delays only come about, if the planned order’s start date, which is correct with regards to the requirements date, already falls in the past and there is already a corresponding exception message for this order.

© SAP AG LO210 4-23

SAP AG 1999


Today

Time

8 Days

Reqmtsdate

Availabilitydate

Main Memory

Possible Solution

*

��In order to resolve problems, you have the option of changing the procurement elements and repeating the planning process for the dependent BOM branches. So that the changes made to the planning process remain effective, you must set the "firming" indicator in the modified procurement element.

��In the planning result, the MRP controller moves the planned order finish date of the finished product eight days in the future and firms the planned order. Finally, he / she flags the planned order in the individual lines overview and starts another planning run for the dependent BOM branches, specifically for this planned order. This is done using the "Execute planning run" function. You do not need to exit the transaction to do this.

© SAP AG LO210 4-24

SAP AG 1999


Database

Today

Time

8 Days

Reqmtsdate

Availabilitydate

Main Memory

Main Memory and Database

��All changes are stored in the main memory and the results are only written to the database when you save. Once you have accepted the planning results, all simulation results are transferred from the main memory into the database and saved there. If you do not want to save the planning results, they are discarded by the system.

��During simulative MRP, you are able to change all data in the database independent of the data in the main memory, since the database is not locked. You are, on the other hand, unable to read data in the database - for example, when a supplementary requirement has been received by the system.

© SAP AG LO210 4-25

SAP AG 1999

Planning Table / Period-Based Planning

Material dataMaterial data UnUn DueDue 4.9.20014.9.2001

CapacityCapacity data data UnUn DueDue 4.9.20014.9.2001

Line 1RequiredAvailable

Material AReqmtsAvailable qty ver

Production Line 1Production Line 2Not yet assigned


5.9.20015.9.2001

5.9.20015.9.2001

Assignment mode

Pegged reqmtsdisplay:Material A: 8 hMaterial B: 16 h

%hh%hh

00

1600

16

100161600

16

508

161502416

In this section, you canmonitor the capacity load utilization

on the production lines.

pcpc 200

100200

100200

In this section, you can assign the quantities to the

production lines.

pcpcpc 0

100

200

50500

��The planning table enables the work scheduler to process the master production schedule. He / She can check the production quantity at a glance, change it if required and create new production quantities (planned orders). The work scheduler can also determine the capacity load utilization of the production line and the product’s availability situation. Capacity pegging can also be carried out by double clicking on the capacity requirements.

��Since, in Repetitive Manufacturing, orders are planned according to quantity and period, the planning table is also based around this principle. You can choose from any planning period (shift, day, week, month, planning calendar period).

��In the assignment mode, the work scheduler can assign production quantities (planned orders) to a production version and therefore to a production line. If this has already been executed in the MRP run, he / she can also change assignments that have already been made . Planned orders that have already been manually assigned to a production line are classified as order type PE (run schedule quantities) and usually firmed. This firming method can either be limited to the planning time fence or completely deactivated per material using the repetitive manufacturing profile.

��In the planning table, you can display various key figures (the range of coverage and the available quantity and so on) in a separate line or even define the order in which they are displayed.

��Changes made to the planning table are only written to the database when you save.

© SAP AG LO210 4-26

SAP AG 1999

Planning in the Planning Table

pc 100 50pc 50pc 0 0 0

pc 100 100pc 200 200 200

% 0 100 50h 0 16 8h 16 16 16% 0 0 150h 0 0 24h 16 16 16

Material dataMaterial data UnUn DueDue 4.9.20014.9.2001

Capacity dataCapacity data UnUn DueDue 4.9.20014.9.2001


Material AReqmtsAvailable qty

Production Line 1Production Line 2Not yet assigned


In this section, you can:- assign production quantities to production lines- enter new production quantities- increase production quantities- monitor capacity load utilization on the production lines

In this section, you can process the following receipts:- planned orders - production orders for discrete manufacturing- process orders for process manufacturing

��The whole Repetitive Manufacturing planning process can be be carried using the planning table. Alongside planned orders, you also have the possibility of displaying and processing production orders for discrete production and process orders for process manufacturing in the planning table. Production and process orders are displayed in a separate row - PR.ORD: You are able to make changes to production orders by directly branching from the planning table to the order. This is achieved using the change mode. It is, however, not possible to execute mass change functions such as distributing by shifts for production and process orders.

��You can convert planned orders directly into production orders via the "convert quantities" function in the planning table. The system then shows the line PR.ORD: , where you can view these orders. You must call up the planning table again before you are able to make changes to these newly created orders.

��A prerequisite for displaying production and process orders in the Repetitive Manufacturing planning table is a valid production version in the material master.

© SAP AG LO210 4-27

SAP AG 1999

Production Version for the Planning Table

MaterialMaterialmaster recordmaster record(MRP4)(MRP4)

Production version 1


Describes production procedure

Routing

- Receiving storage location for assembly- Default issue storage location for components

��At least one production version must exist in the material master of the corresponding material in order to work with the planning table. The production version contains data relevant to production that describes a manufacturing process:

• You determine in which period the version can be used with the fields "Valid from" and "Valid to". You can enter a lot-size range for the version in the fields "From lot size" and "To lot size".

• You can define a routing for detailed planning, rate-based planning and rough-cut planning. You enter a task list group and a group counter for the detailed planning. The routing entered is then used for capacity requirements planning.

• You can assign a particular BOM to the version using the fields "BOM usage" and "Alternative BOM".

• In the field "Production line", you define the work center (production line) for the assignment of production quantities in the planning table. Only the capacity requirements for this work center are displayed in the planning table. In order to execute capacity planning, this work center (production line) must be contained in the routing.

© SAP AG LO210 4-28

SAP AG 1999

MRP Run: Summary (1)

z All MRP-relevant materials in a plant are planned in thetotal planning run. When using the scope of planning,you can also plan several plants or MRP areas.

z In a single-item, multi-level planning run, the systemplans a complete product structure, whereas a single-item, single-level planning run plans one BOM level of amaterial.

z The MRP run can be carried out as regenerativeplanning or as net change planning in the short-term orlong-term.

© SAP AG LO210 4-29

SAP AG 1999

MRP Run: Summary (2)

z MRP must be active for each plant and the planning filemust be set up.You can maintain the parameters for MRP in the materialmaster, in the MRP group or you can maintain the plantparameters in Customizing.

z The delay is calculated in simulation mode and the datais kept in the main memory.

z The planning table is also available to you as a furtherplanning tool.

© SAP AG LO210 4-30

Exercises

Unit: MRP Run Topic: Planning file


• explain the relationship between the planning run and the planning file.

A different BOM is to be used for the material T-F2## for small lots than the BOM used for larger lots. Planned independent requirements are to be created in the short-term planning horizon and in the long-term planning horizon. This will help the project team become familiar with the planning file indicators.

1-1 You create a new alternative BOM for the material T-F2##, in plant 1000 and then monitor the entries in the planning file:

1-1-1 Create an alternative BOM: Create a new alternative BOM (alternative 2) for the material T-F2##, in plant 1000. Use the existing alternative BOM 1 of the materials T-F2## in plant 1000 as a reference. The alternative BOM 1 will be used in the future for lot sizes smaller than 101 pieces, the alternative BOM 2 for lot sizes ranging from 101 pieces to 1500 pieces. For safety reasons, the alternative BOM 2 uses double the amount of pressurized lids than the alternative BOM 1.

Access the transaction Create material BOM in the master data for production planning and enter the following parameters in the initial screen:

Material: T-F2##

Plant: 1000

Usage: 1 (Production)

Choose the Copy from ... pushbutton. Confirm the warning: “Alternative 2 added to BOM” by choosing Enter.

In the dialog screen that follows Copy from ..., you enter the 01 that is to be copied and confirm by choosing Enter. Select all BOM item(s) and choose Copy.

The alternative BOM 2 now appears. In the item overview on the tab page Material in the item T-B4##, enter the quantity 2 pieces. Save the new alternative BOM.

© SAP AG LO210 4-31

1-1-2 As both alternative BOMs are to be valid for different lot sizes, you change the lot-size ranges for the alternatives: Access the transaction Change material BOM and enter the following data in the initial screen:

Material: T-F2##

Plant: 1000

Usage: 1 (Production)

Alternative: 1.

You access the corresponding alternative by choosing Enter. Display the header data for the alternative by choosing the button Header. In the tab page Quantities/long text, enter the value 1 as the From lot size and the value 100 as the To lot size. Save your entries.

Enter an appropriate lot-size range from 101 pieces to 1500 pieces for the alternative BOM 2.

1-2 Evaluate the planning file for T-F2## in plant 1000: Starting from the MRP menu, display the planning file entry for material T-F2## in plant 1000. (Do not restrict the selection any further.)

1-2-1 Which of the following indicators are set?

PlgInd. NETCH _______ PlgInd. NETPL _______

Re-expl.BOM _______

1-2-2 What do these indicators mean?

PlgInd NETCH: __________________________

PlgInd NETPL: __________________________

Re-expl.BOM: __________________________

1-3 Carry out a single-item, multi-level planning run with net change planning for the material T-F2## in plant 1000. Use the processing key NETCH (do not work in the simulation mode). Display the planning file entry for material T-F2## in plant 1000. Which of the following indicators are set?

PlgInd. NETCH ____ PlgInd. NETPL ____ Re-expl.BOM _____

© SAP AG LO210 4-32

1-4 In the following, you create a planned independent requirement, check the planning file entry, carry out single-item, multi-level planning and check the planning file entry again. This should be done for the net change planning in the short-term planning horizon and also in the long-term planning horizon.

The planned independent requirements that you create in this exercise are a prerequisite for the following exercise.

1-4-1 Starting from the Demand Management menu, enter a planned independent requirement in day format with the following parameters:

Material: T-F2##

Plant: 1000

Requirements date: Today + 5 months (date in day format)

Quantity: 110 pieces.

(Note: It makes sense to enter the planned independent requirement in the schedule lines screen.) Save the requirement.

Select the planning file entry for material T-F2## in plant 1000. Which of the following indicators are set?

PlgInd. NETCH _____ PlgInd. NETPL ____

Re-expl.BOM _____

1-4-2 Carry out a single-item, multi-level planning run with net change planning for the material T-F2## in plant 1000. Use the NETCH processing key. Select the planning file entry for material T-F2## in plant 1000. Which of the following indicators are set?


Re-expl.BOM _____

1-4-3 Enter a planned independent requirement of the following form:

Material: T-F2##

Plant: 1000

Requirements date: Today +1 month (date in day format)

Quantity: 90 pieces.

(Note: It makes sense to enter the planned independent requirement in the schedule lines screen.) Save the requirement.



Re-expl.BOM _____

© SAP AG LO210 4-33

1-4-4 Carry out a single-item, multi-level planning run with net change planning in the short-term planning horizon for the material T-F2## in plant 1000. Use the NETPL processing key.



Re-expl.BOM _____

1-4-5 Carry out a single-item, multi-level planning run with the processing key NETCH for the material T-F2## in plant 1000.

1-5 Analyze the effect of an MRP-relevant change to the material master. The component T-T5## is contained in the BOM structure for material T-F2##. In the last step, you have executed a multi-level planning run. You have therefore planned all the components.

1-5-1 Select the planning file entry for material T-T5## in plant 1000. Which of the following indicators are set?


Re-expl.BOM _____

1-5-2 Change the material master of the material T-T5## by entering a value of 950 pieces as the safety stock in the view MRP 2.

Select the planning file entry for material T-T5## in plant 1000. Which of the following indicators are set?


Re-expl.BOM _____

© SAP AG LO210 4-34

Exercises

Unit: MRP Run Topic: MRP in simulation mode


• execute the MRP run in simulation mode,

• in particular: analyze situations with scheduling problems using the delay and implement measures for solving the problem in the simulation mode.

You know that there are situations critical to planning for material T-F2## in plant 1000. You want to analyze the delay and, where appropriate, adjust the procurement dates of the assemblies and components.

2-1 Executing the MRP run in the simulation mode: Starting from the MRP menu, execute the single-item, multi-level planning for material T-F2## in plant 1000 with the following parameters:


Create pur.req. 2


Create MRP list 1

Planning mode 1

Scheduling 1




Simulation mode Select

© SAP AG LO210 4-35

Do not exit the transaction.

2-2 Evaluating the planning result: After you have executed the multi-level requirements planning run, display the planning results on the material overview screen. Select the planning result for finished product T-F2## by choosing the function 1st material.

2-2-1 Examine the first planned order that a delay is shown for. Note down the number _______________ and the quantity __________ of this planned order.

How many workdays does the total delay of the planned order that is caused by assemblies and components amount to? ________________ workdays

2-2-2 Select the planned order and choose Order structure. On the next screen, choose All lines in detail. Note which procurement elements of which material cause which delay.

MRP element Number of MRP element

Material Delay (work days)

Return to the display of the Planning result: individual lines for the material T-F2##.


© SAP AG LO210 4-36

2-3 Re-schedule the planned order into the future: Select the planned order in question and choose Reschedule procurement proposal. Using the displayed availability date of the planned order, postpone the planned order by the number of workdays + 1 that was displayed as the delay time for the planned order (see above). Enter the appropriate new order finish date for the planned order.

To help you do this, you can use F4 in the ReschDate field. The new end date is calculated as previous end date + delay time of planned order + 1, calculated in workdays.

Make sure that the planned order is firmed. To do this, display the detail screen for the relevant planned order by selecting it in the list and choosing Change element. Check that the indicator is set in the field Firmed. Return to the list by choosing Copy procurement proposal.


2-4 Display the current stock/requirements list for material T-F2## in plant 1000 in a separate session. Is the changed end date displayed for the planned order that you have just edited?

__________

Give a reason for the result:

________________________________________________________

2-5 Execute planning run for the planned order again: The assemblies components that lie below the planned order, which you have rescheduled, have not yet been planned. Select the planned order that you have processed and choose Execute planning run.

2-5-1 How many work days does the total delay time of the planned order that is caused by assemblies and components now amount to?

_______ workdays

2-5-2 Save the planning result (and exit the transaction).

2-6 Call up the stock/requirements list for material T-F2## in plant 1000 in a separate session (if necessary, refresh the list). Is the changed end date now displayed for the planned order that you have just edited? ________

Give a reason for the result: ________________________________

© SAP AG LO210 4-37

Solutions

Unit: MRP Run Topic: Planning file

1-1

1-1-1 Menu path: Logistics o Production o Master Data o Bills of Material o Bill of Material o Material BOM o Create

1-1-2 Menu path: Logistics o Production o Master Data o Bills of material o Bill of material o Material BOM o Change

1-2 Menu path: Logistics o Production o MRP o Planning o Planning File Entry o Display

1-2-1 Indicators set:

PlgInd. NETCH Yes PlgInd. NETPL Yes

Re-expl.BOM Yes

1-2-2 Meaning of indicators:

PlgInd NETCH: The material is flagged for a planning run with the processing key NETCH.

PlgInd NETPL: The material is flagged for a planning run with the processing key NETPL.

Re-expl.BOM: The BOM is re-exploded in the MRP run. This indicator also controls that the BOM is re-exploded for existing order proposals when you use the planning mode 1 (Adapt planning data).

1-3 Indicators set:

PlgInd. NETCH No PlgInd. NETPL No Re-expl.BOM No

© SAP AG LO210 4-38

1-4


PlgInd. NETCH Yes PlgInd. NETPL No

Re-expl.BOM No


PlgInd. NETCH No PlgInd. NETPL No

Re-expl.BOM No



Re-expl.BOM No


PlgInd. NETCH Yes PlgInd. NETPL No

Re-expl.BOM No

1-5


PlgInd. NETCH No PlgInd. NETPL No

Re-expl.BOM No



Re-expl.BOM No

© SAP AG LO210 4-39

Unit: MRP Run Topic: MRP in simulation mode


2-2

2-2-1 First planned order with delay:

Number Varies, Quantity 90 pieces

Total delay: Varies, for example 10 workdays

2-2-2 Procurement elements that cause the delay:

MRP element Number of MRP element

Material Delay (work days)

PlOrd

Varies T-B4## Varies,

for example, 3 days

PurRqs

Varies T-T5## Varies,

for example, 7 days

2-3

2-4 Changed finish date in stock/requirements list: No

Reason: The planning in the simulation mode is only executed in the main memory. The stock/requirements list displays the planning situation as it is in the database. Only once you exit the single-item planning in the simulation mode by choosing Save does the system update the planning results in the database.

2-5

2-5-1 Total delay now: 0 workdays

2-6 Changed finish date in stock/requirements list now: Yes

Reason: When you choose Save, the planning result is updated in the database.

© SAP AG LO210 5-1

SAP AG 1999

Processing MRP Results

Contents:

z MRP list

z Stock/reqmts list

z Collective evaluations

z Days’ supply and receipt days’supply

z Exception messages

z Rescheduling

z Order report

z Pegged reqmts

© SAP AG LO210 5-2

SAP AG 1999

Processing MRP Results : Unit Objectives

z Use the MRP list and the stock/requirements list,

z Execute collective evaluations,

z Process exception messages and executerescheduling,

z Interpret days’ supply and receipt days’ supply.


© SAP AG LO210 5-3

SAP AG 1999


11 Introduction

44 MRP Run



Overview22


99 MRP Areas


66 MPS


© SAP AG LO210 5-4

SAP AG 1999

Planning Segments

Net reqmts planning

Gross reqmts planning

Storage location MRP

- Storage locations planned separately

- Storage locations not in planning run

Make-to-order production

Individual project planning

Planning without final assembly

Direct production/direct procurement

��The MRP list and the stock/requirements list are divided up into various planning segments. Related MRP elements are therefore displayed together within their respective segments.

��The individual stocks, receipts and issues are displayed and planned within the appropriate segment. The MRP calculation takes place within the respective individual sections.

© SAP AG LO210 5-5

SAP AG 1999

Planned ordersPurchase requisitionsProduction ordersPurchase orders

Plant stock/Storage location stockSales ordersPlnd ind requirements

currentcurrent

Stock/Requirements List and MRP List

PlanningPlanningrunrun

General structure

Ove

rvie

w T

ree

Variable header

MRPMRPelementselements

......

Stock/requirementslist

MRP list

��You can evaluate the planning situation or planning run result using the stock/requirements list or MRP list. You can do this using individual access or collective access.

��The stock/requirements list is a dynamic list: it contains up-to-date information on the current status of stocks, requirements and receipts. You are able to view any changes immediately. This can be done as soon as the current stock / requirements list is called up or, upon displaying the current stock / requirements list, the elements are re-read from the database using the "Refresh" function.

��The MRP list represents the result of the last planning run and is therefore static: changes that were made after the planning run are not visible. You can define whether or not the planning run is to generate an MRP list, or as a result of which exception conditions the MRP list is generated for a given material.

��The basic structure of both lists is the same:

• Links are in the form of a tree for the worklist of the MRP controller.

• Above the list is the header with the material number. You can display additional data in the header details.

• The list itself contains the individual MRP elements and the corresponding available quantities.

��User-specific settings enable you to adapt the lists to personal requirements - these apply to both lists (see Customizing, Evaluations for MRP "Configure MRP list / stock/requirements list"). You can display additional data, which can then be accessed using a function key, over a customer exit (see Customizing, "Customer-Exit: program additional columns").

© SAP AG LO210 5-6

SAP AG 1999

Goto

Stock/Reqmts List: Functions

Material memo

Search

ATP quantities

DisplayChangeConvertPegged reqmtsOrder report

Variable header

Planning Segments

Receipts

Reqmts

Material master data

Stocks

Consumption values

Header dataHeader data

Actions for MRP elementsActions for MRP elements

ProcessingProcessing

Period totals

Grouping reqmts

Variable display ofdates

DisplayDisplay

.

..

.

..user-specific

user-specificuser-specific

Capacity check

��The stock/requirements list offers several display options: You can display different dates (the availability date or the goods receipt date, with/without safety time), you can work with display filters and selection rules, you can work in the period totals display and lots more. You define the display accordingly in your personal settings.

��"Period totals" is a display function in the MRP list and stock/requirements list evaluations which groups the planning results into periodic buckets (e.g., weekly or monthly buckets). In the Customizing IMG activity "Define period display for period totals", you define which periods are to be depicted when you display the period totals. The periods selected here are displayed on various tab pages in the period totals display.

��You can process individual MRP elements from the list. Alongside the standard functions, you also have functions defined on a user-specific basis that can be accessed through the "Navigation profile" and personal favorites.

��You can also process the list with various functions, also user-specific ones, on a material level.

��You can analyze the capacity situation from the stock/requirements list. For this, the system displays the available capacity, the total capacity requirements for all materials and the capacity requirements of this material are displayed in periods for each work center and capacity category. Overload situations are highlighted in color. You should note that planned orders that are have not been scheduled using detailed scheduling (created by a planning run with the scheduling indicator 1) do not create capacity requirements.

© SAP AG LO210 5-7

SAP AG 1999

Material memo

Search

Processing indicator

Display

Change

Convert

Pegged reqmts

Order report

Variable header

Planning Segments

Receipts

Reqmts

Additional data fromplanning runMaterial master dataConsumption values

Header dataHeader data

Actions for MRP elementsActions for MRP elements

ProcessingProcessing

Period totals

Grouping reqmts

Variable display ofdates

DisplayDisplay

.

..

.

..

user-specific

user-specific

user-specific

MRP List: Functions

��The functions in the MRP list are, for example, those related to the processing of MRP elements or are display options. To a large extent, these functions are identical to those in the stock/requirements list. Selection rules, however, are only used in the stock/requirements list.

��In contrast to the stock/requirements list, you can set a processing indicator for the MRP list. This indicator serves to highlight lists that have already been processed (i.e., managed) by the MRP controller.

��You define the display of the header details for the MRP evaluations in the Customizing IMG activity "Define screen sequence for header details". The header details of the MRP list contain additional data for the planning run. In particular, they contain the number of exception messages that have occurred during the planning of a material.

��The header details provide an overview of the master and movement data. Related data are grouped thematically into individual screens. You control which screens are displayed in the MRP evaluations using the MRP type. For this, the screen sequences are provided with a Customizing profile key, which is then assigned to the MRP type. It is therefore possible to display different master data for the evaluation of consumption-based materials than for planning based materials.

© SAP AG LO210 5-8

SAP AG 1999

Collective Display of Stock/Requirements List

Materials overview

Select materialsUtilities:- Traffic lights- Sort- Search - in the overview - in the individual lists

Stock /reqmtslists

Stock /reqmtslists

ProcessProcessSelection according to:

Product groupClassMRP controllerVendor

- Purchase orders/ Schedule lines - Purchase requisitions

Production line - Production orders - Planned orders

Restrict further using: Material dataPlanning file entries

Selection according to:

Product groupClassMRP controllerVendor

- Purchase orders/ Schedule lines - Purchase requisitions

Production line - Production orders - Planned orders

Restrict further using: Material dataPlanning file entries Lists set up

in background?

��Collective display of the stock/requirements list is possible with various selection criteria. You can, for example, display all lists, for which you are responsible as MRP controller.

��The system then displays a material overview with all the materials selected. If you have set the "Set up lists in background" indicator, the following are available as orientation help: traffic lights (you can define the criteria for the display), various search functions in the overview and in the individual lists, sort functions (also for individual customer segments by date or number). It is also possible to use the search function to select materials by certain exception messages.

��You access the individual lists from the overview and can process the materials there. If, for example, you have selected several lists for processing over the search function, you can jump from one list directly into the next list selected.

© SAP AG LO210 5-9

SAP AG 1999

Collective Access of MRP Lists

Materials overview

Select materialsUtilities:- Traffic lights- Processing indicator- New exceptions

- Sort - Search - in the overview - in the individual lists

MRP listMRP list

ProcessProcessSelection according to:

MRP controllerProduct group

Restrict further using:

MRP dateProcessing dateRanges of coverageException groupsProcessing indicatorMaterial data

Selection according to:

MRP controllerProduct group

Restrict further using:

MRP dateProcessing dateRanges of coverageException groupsProcessing indicatorMaterial data

��The selection criteria in the collective display of the MRP lists are different to those for the stock/requirements lists. For example, here you have the MRP date or processing date or even the processing indicator for the selection.

��The features and operation in the MRP list collective display overview correspond to those for the stock/requirements list. In addition, you also have the option of searching by processing indicator or new exceptions.

© SAP AG LO210 5-10

SAP AG 1999

Overview Tree

Light Mat.no.

P-100100-100

100-200100-300

...

...

Worklisttree

... all materials in thecurrent session ...

Worklisttree

... all materials in thecurrent session ...

Order tree ... all materials in

an order ...

Order tree ... all materials in

an order ...

Product grouptree

... all materials in aproduct group ...

Product grouptree

... all materials in aproduct group ...

Configurableselection and sequence

��Displaying the overview tree is optional (it can be defined for each user in the settings). Choose the pushbutton "Show overview tree".

��You can switch between showing and hiding the tree. You can display:

• Worklist tree: the system displays all the materials in the current session (particularly in the collective display function).

• Order tree: the system displays all components or assemblies for a selected MRP element corresponding to the order report.

• Product group tree: the system displays all materials in a product group (only for collective display by product group).

��You display a material by double-clicking on it in the tree.

��For the worklist tree and product group tree, you can define which fields are to be displayed and in which sequence (over the "settings" menu). You can also define groupings on a user-specific basis, for example, by processing indicator.

© SAP AG LO210 5-11

SAP AG 1999

Selection Rule and Display Filter

Database

MRP elements Stock/reqmts list

Selectionrule

Displayfilter

MRP listStock/reqmts list

MRP listStock/reqmts list

Avail. qty accordingto selection rule

Available qty Available qty

��You define if selection rules and display filters are to be used when accessing the list. This is done by choosing the indicator "With filter" in the initial screen, or in the list itself by choosing the icon "Filter on", or in the user-specific settings.

��Selection rules apply to the stock/requirements list only. You define which MRP elements are displayed and which of these elements are used in the calculation of the available quantity. They enable the analysis in the stock/requirements list of various planning situations that are different with regard to the MRP elements that are taken into account. Selection rules have no influence on the calculation of requirements! You define these in the Customizing IMG activity "Define selection rules".

��Display filters are used in the stock/requirements list and in the MRP list. This is purely a display function and display filters have no influence on the MRP elements that are used in the calculation of the available quantity. You define display filters in the Customizing IMG activity "Define display filter".

© SAP AG LO210 5-12

SAP AG 1999

Navigation Profile

List

Details for element

Navigation ProfileGeneral transaction calls

Transaction calls perMRP element

context-sensitive context-sensitive

......

Own favorites

��A navigation profile contains transaction calls for transactions that are accessed directly from the stock/requirements list or the MRP list. The transactions are either general, (meaning actions at material level), or they refer to a particular MRP element.

��You define a navigation profile in the Customizing IMG activity "Define navigation profiles" and a user can be assigned to a profile in the user-specific settings (on the tab page "General settings").

��You can define any number of transaction calls you wish in a navigation profile. The display in the list, however, is restricted to five general transaction calls and two transaction calls per MRP element: the system displays the first five and first two transaction calls that are valid for the respective context.

��For each transaction call, you can specify three default parameters for the initial screen of the transaction. You can also link whether the system offers a transaction with particular parameters from the material master: procurement type, material type, MRP group, MRP type.

��The selection of own favorites is similar to the navigation profile, in that you can activate up to an additional five general transaction calls on a user-specific basis (choose "Environment - Own favorites").

© SAP AG LO210 5-13

SAP AG 1999

Personal Settings

Date

Requirements/receipt date BedarSafety timeTotal replenishmentlead time

General settings

Unit of measureChecking ruleNavigation profile

Period

Individual-linedisplayPeriod totals display

Display

Header detailsOverview treeIndividual segmentsGroupingrequirements

Filter

Access with filterDisplay filterSelection rule

Settings for user MUSTER

+ Own favorites

��You can use your personal settings to specify a selection of default display options for the stock/requirements list and the MRP list.

��Your personal settings (as well as your "Own favorites") determine the screen that appears when accessing the lists. From the lists, you can change the various settings at any time - for example, you can show or hide the overview tree.

© SAP AG LO210 5-14

SAP AG 1999

Creation of the MRP list depending on the exception message created

The following settings can be made in Customizing:

Exceptions indicate:

New order proposals created in the planning runDates in the past (start, finish or opening date)Problems in BOM explosionProblems in schedulingRescheduling

Exception Messages

Priority: if several exception messages exist for one MRP element, the systemwill display the message allocated the highest priority

Splitting into exception groups for the selection

��The MRP results are monitored with the help of exception messages. Exception messages alert you to situations that require further processing such as start date in the past, stocks falling below the safety level and so on. Using exception messages to highlight planning situations problems, the MRP controller can select those materials from the planning results that require additional processing.

��In the Customizing IMG activity "Define and group together exception messages", you can specify the characteristics of the exception messages.

��The system displays a maximum of two exception messages per MRP element.

��While not all exception messages will be displayed in the stock/requirements list, in the case of scheduling problems, the system displays both a corresponding exception message in the stock/requirements list as well as in the MRP list. A rescheduling proposal is also displayed. If this proposal is to be accepted, you must adjust the dates for the receipt element manually. The automatic adjustment of these dates is possible in the planning result display or evaluation (for example, in interactive planning or when the indicator "Display result" has been selected in the initial screen of the planning run): you can accept the rescheduling proposal here using the function "Reschedule order proposal".

© SAP AG LO210 5-15

SAP AG 1999

Firmed receipts: production order, purchase order, firmed planned order

Reschedule in Reschedule out

Tolerance

In-house production time+

Goods receiptprocessing time

+Rescheduling horizon

Receipts

Reqmts

Time

Rescheduling Check for Firmed Receipts

* *Tolerance Tolerance

Exceptionmessage

Exceptionmessage

��The planning run will not automatically displace firmed receipts. If the dates of these elements no longer fall within the rescheduling horizon, the system generates the following exception messages:

• "Reschedule in operation", when the requirements date lies before that of the receipt element,

• "Reschedule out operation", when the requirements date lies after that of the receipt element,

• "Reverse operation", when the requirement no longer exists.

��Using the rescheduling horizon, you can stop the system from using receipts lying a long time in the future to cover requirements in the near future. In this case, the system checks whether within the time from the planning date and including the in-house production time and the rescheduling horizon, the existing dates for firmed receipts are still suitable or whether firmed receipts can be rescheduled in to cover requirements.

��In Customizing, you define at plant level which firmed receipts the system checks. You can maintain the rescheduling horizon and the tolerance values for each plant and each MRP group.

��If the system cannot find a receipt element within the rescheduling horizon that can be rescheduled in or out to cover requirements, it creates a new one. The rescheduling check of firmed elements is not restricted to a horizon.

��In order to reduce the number of exception messages, you can set tolerance values for rescheduling in and out. The system only creates an exception message when the difference between the current receipt date and the rescheduling date exceeds the given tolerance value.

© SAP AG LO210 5-16

SAP AG 1999

Exception: bring forward

Old MRP list

Same exception ==> Old exception

New MRP list after the next planning run

Reschedule

10.10.

10.10.

Purchase order 4711/10

Purchase order 4711/10

Time

Time

Time

Old / New Exception Messages

Processing by MRP controller;Processing indicator set

��You can differentiate between MRP lists that you have worked on and those you have not through the use of the processing indicator. When working with collective access to MRP lists, you can select on the basis of whether or not the processing indicator has been set. If you do not restrict selection on the basis of the processing indicator, it is possible to sort the collective display by the processing indicator, and to select materials to review or process on the basis of the processing indicator.

��If using net change planning, and the planning situation for a material has not changed since the previous MRP run, then a new MRP list is not generated. If you had already set the processing indicator, it remains set. In this case, selecting only unprocessed MRP lists will result in this particular material being excluded.

��For those materials planned in the planning run, the system compares the exception messages in the new MRP list with the exception messages in the old list: If one exception message appears in both lists, it is indicated as an ’old’ exception message; the remaining exception messages are considered to be new messages.

��In the collective list display, you can select lists with new exception messages only.

��When using collective display of the MRP lists, you can choose only lists with new exceptions and even search for new and old exceptions in the individual lists.

© SAP AG LO210 5-17

SAP AG 1999

Converting Planned Orders Collectively

ConversionConversionperiodperiod

OFOSOD

OFOSOD

OFOSOD

OD Opening dateOS Order start dateOF Order finish date

Planned order dates

Further selection by:PlantMRP controllerMaterial

...

StatusAvailability

Opening date inconversion period

��The opening period describes the period of time between the opening and start dates of a planned order. It is defined for each material by the scheduling margin key in the material master. The opening period reflects the processing time that the MRP controller requires to convert planned orders.

��In collective conversion, selection takes place according to the opening date. You could, for example, select planned orders whose opening date lies in the past.

��Alongside the opening date, you can use further selection criteria for selecting the planned orders to be converted. An MRP controller can, for example, select the planned orders of the materials for which he/she is responsible and collectively convert them into production orders, process orders or purchase requisitions.

© SAP AG LO210 5-18

SAP AG 1999

Evaluating the current situation:

- Early recognition of bottlenecksin material supply

- Analysis of dependencies

Using safety stocks and safety times to cope with unforeseeable events

Monitoring Material Supply for Production

© SAP AG LO210 5-19

SAP AG 1999

ReqmtsReceiptsKey:

Time

Days’ supply(until falls below physical

stock level)

Days’ supply(until falls below physical

stock level)

Safetystock

Safetystock

Availablequantity

for planning

Days’ Supply

Days’ supply(until falls below safetystock level)

��The days’ supply enables you to recognize potential shortages at an early stage.

��This function provides you with information about when the material shortage will occur if no goods receipt is delivered (worst case).

��In the "Safety stock" field in the IMG activity "Define receipt elements for receipt days’ supply" you define, per plant, whether the days’ supply should be defined as the point where stock falls below the physical stock (indicator "Safety stock" = "1") or the safety stock level (indicator = "blank").

© SAP AG LO210 5-20

SAP AG 1999

ReqmtsReceiptsKey:

Time

Receipt days’ supply

Receipt days’ supply (until falls below

physical stock level)

Safetystock

Safetystock

Availablequantity

for planning

Receipt days’ supply(until falls below safetystock level)

��The receipt days’ supply provides you with information about when the material shortage will occur if certain firmed receipts are delivered. You can define two different receipt days’ supplies that are different with regard to the selection of firmed receipt elements that are taken into account.

��You choose which firmed receipts are to be taken account in the calculation per plant and using the following IMG activity: "Define receipt elements for receipt days’ supply". In the "Safety stock" field, you define whether the range of coverage should be defined as the point where stock falls below the physical stock level or the safety stock level (see days’ supply).

© SAP AG LO210 5-21

SAP AG 1999

Key: ReqmtsFirm planned orderProduction order

TimeReceipt days’ supply2

Receipt days’ supplyReceipt days’ supply22

TimeReceipt days’ supply 1Receipt days’ supplyReceipt days’ supply 1 1

Only production orderstaken into account

Production and planned orderstaken into account

Receipt Days’ Supply 1 and 2 (Example)

Sto

ckS

tock

��You can analyze two different receipt days’ supplies (1 and 2). These two receipt days’ supplies are different with regard to the selection of their receipt elements, which is defined in the Customizing IMG activity "Define receipt elements for receipt days’ supply". You thereby define for various firmed receipts whether they are not taken into account (blank), are taken into account for both receipt days’ supplies ("X"), are taken into account only for receipt days’ supply 1 ("1") or only for receipt days’ supply 2 ("2").

��In the above example, production orders and firmed planned orders are taken into account in the calculation of receipt days’ supply 1, while the receipt days’ supply 2 supplies information on the size of the range of coverage having only taken the production orders into account.

© SAP AG LO210 5-22

SAP AG 1999

Sales order Plnd ind.reqs

Time

Time

Pegged Requirements

Planned orders

Dependent reqmts

FinalProduct

Assembly

...

Purchase orders

��You can use the evaluation "Pegged requirements", which you can access directly from the stock/requirements list and MRP list, to trace from any BOM level on a multi-level basis which requirements have caused an order proposal and which independent requirements (particularly sales orders) are affected by the change in date or quantity of an order proposal on a lower level.

© SAP AG LO210 5-23

SAP AG 1999

Sales orderFinished productFinished productFinished product

AssembliesAssembliesAssemblies

ComponentsComponentsComponents

Dependent reqmts

Reservation

StockStock

Dependent reqmts

Planned orderPlanned orderPlanned order

Dependent reqmts

PlannedorderPlannedorder

Reservation

Production orderProduction orderProduction order

PurchaseorderPurchaseorder

Problem !!!Problem !!!Problem !!!

Order Report

��The evaluation "Order report" enables you to gain an overview of the situation for all BOM levels from the following MRP elements: sales order, production order (also collective and process order) and planned order. You can thus recognize problems in the production and procurement of assemblies and components at an early stage.

��You access the transaction directly from the stock/requirements list or MRP list.

��The system determines which receipt elements are planned for each MRP element. The MRP controller is therefore able to check how the production of a certain sales order is progressing, or if there are missing parts or scheduling problems on a certain BOM level or for certain components.

��The receipt elements are color coded. This enables the MRP controller to foresee possible future problems on subordinate BOM levels:

• Red: there are exception situations on subordinate BOM levels.

• White: the requirement is covered by warehouse stock on the uppermost level.

• Green: receipt elements have been created on subordinate BOM levels, yet no exception situations exist.

• No color coding: the receipt element cannot be exploded any further.

© SAP AG LO210 5-24

SAP AG 1999

Processing MRP Results : Summary (1)

z The MRP list displays the planning results of the lastMRP run, whereas the stock/requirements listdisplays the current stock/requirements situation.

z There are a number of options for adapting the lists toyour personal requirements.

z Using the collective evaluations function, you candisplay several materials in succession.

z The days’ supply enables you to recognize potentialshortages at an early stage.

© SAP AG LO210 5-25

SAP AG 1999

Processing MRP Results : Summary (2)

z The receipt days’ supply indicates how manyworkdays the production supply will last.

z Exception messages indicate problem situations.

z You can use the evaluations "Peggedrequirements" and "Order report" to analyze theplanning situation on several BOM levels.

© SAP AG LO210 5-26

Exercises

Unit: Processing MRP Results Topic: Stock/Reqmts List: Functions


• describe the functions and display options of the stock/requirements list,

• make your own personal settings for the display.

As a member of the project team, you make yourself familiar with the display options that are available for the stock/requirements list and the MRP list.

1-1 You check the personal settings, with which you can define the screen for the stock/requirements list and the MRP list, and make, if necessary, different settings.

1-1-1 Starting from the MRP menu, display the stock/requirements list for material T-F1##. In order to view the default settings, which are used when accessing the list, you choose Settings. The data for the settings is sorted thematically on several tab pages. What are the titles of the individual tab pages?

__________________ __________________

__________________ __________________

__________________

1-1-2 In what form are the requirements displayed with the existing settings (tab page Display)?

__________________________________________________

1-1-3 Does the system display the availability date or the goods receipt date as the date of an MRP element (tab page Deadline)?

__________________________________________________

1-1-4 Return to the tab page Display and select the field With header details for material. Return to the list by choosing Continue. Does the system now display the header details? __________

Find in the header details which strategy group is in the material master: __________

Choose Collapse header details from the list.

© SAP AG LO210 5-27

1-2 You want to access transactions that are used often directly from the stock/requirements list. Assign yourself to a navigation profile:

1-2-1 From the stock/requirements list, choose Environment ### Navigation profile ### Assign. Use the F4 help to enter the profile NAVLO210 in the Navigation Profile field and confirm the entry by selecting Continue Enter.

1-2-2 Which transaction calls are now displayed over the header for the list?

__________________ __________________

__________________ __________________

__________________

1-2-3 You decide to copy this setting to your personal settings. To do this, choose Save settings and save them.

1-2-4 Exit the stock/requirements list and then access it again. Does the system now display the transaction calls? ____

1-3 You familiarize yourself with the effect of display filters and selection rules. In the stock/requirements list for material T-F1##, choose Filter on. The system then displays two new fields in the list header where you can define a display filter or a selection rule.

1-3-1 Enter the display filter with the description SAP requirements and firmed receipts. What changes do you observe in the display of the MRP elements?

_____________________________________________________

1-3-2 Do you also see changes in the available quantity that is calculated for each MRP element? _____________

1-3-3 Now enter the selection rule with the description SAP requirements and stocks. What available quantity is now displayed at the end of the list? __________________

Give a reason for this:

_____________________________________________________

1-3-4 You decide to work without a display filter and choose Filter off.

© SAP AG LO210 5-28

1-4 In the stock/requirements list, display the material tree by choosing Show material tree.

1-4-1 Which materials are displayed in the overview?

_________________________________________________

1-4-2 Switch to the stock/requirements list for the material T-B1## by entering the corresponding material number in the field Material in the list header and choose Enter. Which materials are displayed in the material tree now?

_________________________________________________

1-4-3 Return to material T-F1## by double-clicking on the corresponding material number in the material tree. Select the first planned order in the list and switch to the order tree by choosing Order tree. Which materials are displayed in the material tree?

__________________________________________________

What connects these materials?

__________________________________________________

1-4-4 If you prefer this, you can make the display of the material tree a default setting for the initial view of the stock/requirements list by choosing Save settings. You know that the display of the tree in the list can be switched on or off at any time.

© SAP AG LO210 5-29

Exercises

Unit: Processing MRP Results Topic: Collective Display of MRP Lists


• use the collective display of MRP lists,

• use the processing indicator.

You process the MRP lists of the materials, for which you are responsible as MRP controller and which were created this week. You especially concentrate on situations for which rescheduling proposals exist. After having clarified the situation in production, you change the scheduled dates of the planned orders according to the rescheduling proposals that are in the MRP list.

2-1 Evaluate your planning results by using the collective procedure. For this use the collective display of MRP lists.

2-1-1 Starting from the MRP menu, access the MRP list - Collective display. Restrict your selection to MRP lists for materials in plant 1000, for which you are the MRP controller 0## and for which MRP lists have been created in the current week. That means, enter in the initial screen:

Plant: 1000

MRP controller: 0##

MRP date from: beginning of the week to: Today

You especially want to edit MRP lists with exceptions that affect the rescheduling of procurement proposals (Selection group 7). Restrict the selection further by selecting the exception group 7 on the tab page Exception groups. Start the selection by choosing Enter.

2-1-2 The system displays the overview of the materials selected; that means, it displays all materials for the MRP controller 0##, for which there are MRP lists in which receipt elements with exception messages for rescheduling have been created. Choose Select all and Display selected MRP lists in order to display the corresponding lists in order.

© SAP AG LO210 5-30

2-2 In the lists, find a planned order for which an exception message 10, 15 or 30 is displayed and for which the rescheduling date is not today if possible (use Next material and Previous material to switch between the lists).

2-2-1 Display the Additional data for element for this order. In the additional data a maximum of 2 exception messages are saved. To display the longtext of an exception message you can select the respective message in the detail screen for the MRP element and choose Exception-Info.

Choose Enter to exit the detail screen and note the rescheduling date of the selected MRP element:

Rescheduling date: _________________________

Number of MRP element: _________________________

2-2-2 You then change the planned order: In the MRP list for this order, choose Change element, and enter the suggested rescheduling date as the finish and today’s date as the start in the dates segment and delete the date in the field Plnd open. Choose Enter so that the system determines the current opening date. Save the planned order data.

2-2-3 Choose Processing indicator on in the list. Check in the header details that the processing indicator is set. (If not, repeat the last step.) In which MRP list, i.e. in which material MRP list, did you set the processing indicator?

Material: ____________________________

Exit the collective display of the MRP lists.

2-3 Repeat the selection of the MRP list – Collective display: Restrict the display again to MRP lists for materials in plant 1000 for which you are responsible as MRP controller and which have been created in the current week. As some of the MRP lists have already been edited, restrict your selection to MRP lists that have not yet been edited; that means, enter as selection criteria:

Plant: 1000

MRP controller: 0##

MRP date from: beginning of the week to: Today

Exception groups: 7

Processing indicator: Only unprocessed MRP lists

Start the selection by choosing Enter.

© SAP AG LO210 5-31

2-3-1 Was the MRP list selected for which you set the processing indicator? _________

In order to gain a clearer overview in the following exercises, delete old planning data at this point:

1. Call up the stock/requirements list for material T-F1##, select a planned independent requirement and choose Change element. In the table for the maintenance of planned independent requirements, select all the rows (items) and choose Delete item. Choose Save.

2. Change (for example, from the stock/requirements list) the material master for the material T-T5##, by deleting the safety stock in the view MRP 2. Save the material master record.

3. Carry out single-item, multi-level planning for material T-F1## in plant 1000.

© SAP AG LO210 5-32

Solutions

Unit: Processing MRP Results Topic: Stock/Reqmts List: Functions

1-1

1-1-1 Titles of the individual pages:

Display Period totals

Deadlines Filter

General Settings

1-1-2 Displaying requirements: The requirements are displayed individually (and are not grouped in days).

1-1-3 Availability date or goods receipt date: The availability date is displayed.

1-1-4 Header details: Yes

Strategy group in the material master: 40

1-2

1-2-1 Menu path: from the display of lists Environment o Navigation profile o Assign

1-2-2 Displayed transaction calls:

Create WO planned order Single-item, interactive

Create customer requirement Display planning file entry

Single-item, multi-level

1-2-3

1-2-4 Transaction calls displayed: Yes

© SAP AG LO210 5-33

1-3

1-3-1 Changes to the display: Only the requirements are still displayed. Firmed planned orders would also be displayed (but none exist normally at this stage in the exercises).

1-3-2 Changes in the available quantity: No, the available quantity is not changed by the display filter. Even without displaying planned orders, the available quantity, for example, at the end of the list is still zero pieces.

1-3-3 Available quantity at end of list now: Minus 1350 pieces

Reason: In contrast to display filters, selection rules have an effect on the calculation of the available quantity. When using the selection rule “Requirements and stocks”, only requirements and stocks are used in the calculation whereas receipt elements are not taken into account. In this example, the available quantity is the total of all requirements and stocks.

1-4

1-4-1 Materials in material tree: Varies. All materials that you have edited in the current session are displayed If you access with the material T-F1## again, only this material is displayed.

1-4-2 Materials in material tree: The material T-B1## is now also displayed.

1-4-3 Materials in material tree: Alongside T-F1##, the materials T-B1##, T-B2##, T-B3##, T-B4##, T-T0##, T-T1##, T-T2##, T-T4##, and T-T5## are also displayed.

Reason: These materials are the assemblies and components for the finished product T-F1##. The system therefore displays all materials that flow into the production of the planned order selected by you.

© SAP AG LO210 5-34

Unit: Processing MRP Results Topic: Collective Display of MRP Lists

2-1

2-1-1 Menu path: Logistics o Production o MRP o Evaluations o MRP List – Coll Displ.

2-2

2-2-1 Data of MRP element selected:

Rescheduling date: Varies

Number of MRP element: Varies

2-2-2

2-2-3 Material: Varies, for example T-B2##.

2-3

2-3-1 MRP list with processing indicator selected: No

© SAP AG LO210 6-1

SAP AG 1999

Master Production Scheduling

Contents:

z Master production scheduling (MPS) and materialrequirements planning (MRP)

z Firming

z Capacity planning in MRP and MPS

© SAP AG LO210 6-2

SAP AG 1999

Master Production Scheduling: Unit Objectives

z Define materials as master schedule items and carryout master production scheduling,

z Discuss the principles of firming,

z Explain the relationship between master productionscheduling and MRP.


© SAP AG LO210 6-3

SAP AG 1999


11 Introduction


MPS66


Overview22


99 MRP Areas


44 MRP Run


© SAP AG LO210 6-4

SAP AG 1999

Master Production Scheduling and MaterialRequirements Planning (1)

Master productionscheduling runNon-MPS

MRP runNon-MPS

MPS

Critical resources: increased attentionMPS

��Master production scheduling (MPS) enables you to plan materials that greatly influence a company’s profits and critical resources and therefore need to be planned more carefully. It is typical for theses materials that the master production schedule is initially defined on the level of this critical or important material before the dependent assemblies and purchased parts are planned and procured. This means that changes made to these critical parts are not copied to the dependent parts, thus avoiding any disruption arising during production and procurement of purchased parts.

��You plan the master schedule items (MPS items) and the non-master schedule items in separate planning runs. You are able to specify finished products or assemblies for master schedule items provided that you have entered a corresponding MRP type per plant or per MRP area in the "MRP 1" view of the material master. You must define the MRP procedure "M" (master schedule item procedure) in this MRP type in Customizing for MRP types (Customizing activity "Check MRP types").

��The master production scheduling run only plans the master schedule items. Master production scheduling is executed with the same logic as material requirements planning but without planning materials that are not labelled as MPS items. Dependent requirements are created for the next low-level code, but planning is not executed for these items unless they are MPS items.

��The results of master production scheduling are not passed on to dependent parts until the master plan for the critical parts has been processed and finely-tuned. Master schedule items are not planned along with the MRP run to ensure that you can plan these materials independently.

© SAP AG LO210 6-5

SAP AG 1999

Capacity leveling

Master Production Scheduling and MaterialRequirements Planning (2)

M1

PD PD

PD PD

1. MPSPlndorder

Dep.req

2. MRP(for materials belowthe master schedule item)

Dep.req

Plnd orderPlndorder

Dep.req Dep.req

Plndorder

Plndorder

Reqmts on MPS level (such as, ind reqmts)Reqmts on MPS level (such as, ind reqmts)

... ...

MRP type "M"in material master

��Master production scheduling takes place on two levels:

1. Master production scheduling (MPS) plans the master schedule items on the basis of the requirements that exist for these parts (for example, planned independent requirements). The MPS run generates planned orders for the master schedule items and the corresponding dependent requirements on the BOM level below. Capacity leveling is possible on the MPS level.

2. MRP plans the other assemblies and components in the BOM structure.

��In the case of a total MPS run, you can combine both steps by setting the indicator "Process MRP materials" in the initial screen.

© SAP AG LO210 6-6

SAP AG 1999

Interactive MPS

� Dependent requirementsare only created for thenext lower BOM level.

� Once you have checkedthe results of MPS, youcan trigger MRP for alllevels of the BOM.

No

MRPThe rest of theBOM structureis planned. Material 1

Material 2

Dependent reqmtsare calculated forsingle level

MPS

Master schedule item 1

Master schedule item 2

Interactive planningInteractive planning

OK?

��Interactive MPS enables you to check the results of the automatic planning run for master schedule items. You are able to make unlimited changes to the master production schedule and capacity requirements, where necessary.

��In interactive MPS, the system initially generates the current planning situation according to the data in the current stock / requirements list. You then manually trigger the planning and simulation functions.

��You are able to view the results of the changes in a simulation phase. The system does not copy the planning data to the database until you save the interactive MPS.

��Interactive MPS is especially useful when adjusting the dates of the planned orders required in the planning time fence. You are able to perform interactive MPS for parts both produced in-house and procured externally.

��Materials with MRP types, which are assigned MRP procedure "D" in Customizing for MRP types, are requirements planned using MRP (Customizing activity "Check MRP types").

© SAP AG LO210 6-7

SAP AG 1999

Firming

Lead timediagram

Lead timeLead timediagramdiagram

R2

R1

B2

B1

E1

Automatic orderproposals

Time

Pla

nnin

g le

vels

MPSMRP

E1E1

B1B1 B2B2

R1R1 R2R2

BOMBOM

End ofplanning timefence

Manualmonitoring

MPSMRP

��With the help of the firming period, you are able to protect the master production schedule for master schedule items from being automatically changed. Within the firming period, which is defined individually for each material, order proposals are no longer automatically changed during the MRP run.

��You should define the firming period with reference to the total lead time of the material.

��In the above example, the order finish date of the planned order, E1, lies one day before the end of the firming period. The system therefore treats it as firmed and does not automatically reschedule it. The master production schedule for the components is therefore stabilized.

��The system will draw your attention to any possible changes to the master production schedule in the form of an "exception message" in the MRP list. It is then the responsibility of the MRP controller to process these changes.

© SAP AG LO210 6-8

SAP AG 1999

Meaning of Firming Types

Processing of order proposals, which donot yet existnot yet exist, due to recent materialshortages.

Processing of already existingalready existing order proposals that are within the firmingperiod and whose finish date is at least one day before the end of thefirming period.

��There are various firming procedures at your disposal:

��The firming type instructs the MRP run how the order proposals (especially, planned orders and purchase requisitions) are to be firmed and in which order they are to be scheduled within the firming period.

��You specify the firming procedure to be used per material using the the MRP type. The firming type is defined in Customizing for MRP type.

��You can use firming for materials planned with both master production scheduling and material requirements planning. To this end, the corresponding MRP types are available in the standard system.

© SAP AG LO210 6-9

SAP AG 1999

Overview of Firming Types

Type 0 not automatically firmed

Type 1 automatically firmed

Type 2 automatically firmed



Not yet existing orderproposals are:

Existing orderproposals are:

Firmingtype

created with appropriate dates, not automatically firmed

created, moved to the end of thefirming period

not created, shortagesremain uncovered

created, moved to the end of thefirming period

not created, shortagesremain uncovered

© SAP AG LO210 6-10

SAP AG 1999

Firmed

In the automaticplanning run, the plannedorder is rescheduled outto the end of the planningtime fence

Time

The planned order isonly planned here if itis rescheduled by theMRP controller

End of planning tim

e fence

Salesorders

New reqmtToday’sdate

Planning time fence (example: 3 weeks)

Reqmt

SalesSalesordersorders

Plannedorder

Procurement

Firming period

Planning Time Fence (Firming Type 1)

��You can define the firming period using the planning time fence. The system hereby uses the MRP date as a base for dynamically calculating the finish date of the firming period.

��You can define the planning time fence either per material in the material master record or using the MRP group assigned to the material master.

��You are able to reorganize firmed planned orders with the help of the roll forward period. The "Roll forward indicator" in Customizing for the MRP type controls whether the roll forward mechanism is applied for a material or not. You can maintain the roll forward period for each MRP group.

��All firmed planned orders whose order finish date lies after the end of the roll forward period are either adjusted to the current requirement or deleted.

© SAP AG LO210 6-11

SAP AG 1999

Exact

Date

In the automaticplanning run, the plannedorder is rescheduled outto the end of the planningtime fence

Time

Stock/requirements list

Planning result

Sing-item interactive plng

Firmed

The planned order isonly planned here if itis rescheduled by theMRP controller

Salesorders

New reqmtToday’sdate Reqmt

SalesSalesordersorders

Plannedorder

Procurement

Firming period

MRPMPSLong-Term Planning

Manual Firming Date

��You can also define the firming period by manually entering a date lying in the future - that is, the "manual firming date".

��The system can only automatically firm order proposals lying before the manual firming date if the material has not been assigned a firming type or has firming type "1" or "2".

��Materials that have been defined with an MRP type without a firming type are processed as materials with firming type "1" and with reference to the manual firming date.

��If you have set a manual firming date and a planning time fence is active, then in the case of this date being later than the manual firming date, the firming period is determined by the end of the planning time fence. If the manual firming date is the later of the two dates, then this defines the firming period.

��You set and reset the manual firming date in the current stock / requirements list, in the planning results or in single-term, interactive planning.

��You can apply this function in material requirements planning, master production scheduling or long-term planning.

© SAP AG LO210 6-12

SAP AG 1999

Planned order

Firming

Planned order

Components

Planning run

Does not change header data

Does not change components

Conversionindicator

Conversion

Allowed

Firming the Planned Order

��If a planned order is changed manually, the system automatically sets the "firmed" indicator for this planned order. This means that the header data of the planned order will not be changed in the next planning run.

��If a component in a planned order is changed manually, the system also sets the "firmed" indicator for the components. This means that the components of the planned order will not be changed in the next planning run.

��The firming indicators for the planned order or the components of the planned order can be changed manually.

��By resetting the conversion indicator in the planned order, you can prevent the planned order being converted into a production order or purchase requisition.

© SAP AG LO210 6-13

SAP AG 1999

Stock/reqmts list

Stock/reqmts list

Planned orderPlanned order

Capacityplanning table




Capacity situationfor the material

Capacity situationfor the material

Capacity situationfor the order

Capacity situationfor the order

Capacity checkCapacity check

Capacity levelingCapacity leveling

Interactiveplanning

Interactiveplanning

Capacity levelingfor the material

Capacity levelingfor the material

Capacity levelingfor the order

Capacity levelingfor the order

Capacity Planning Integration

��In master production scheduling and material requirements planning, two lists are used to display information. In these, the planning periods are represented on a vertical time axis:

• Capacity leveling: for carrying out leveling with changes.

• Capacity situation: only for displaying the data.

��The capacity situation or the capacity leveling can be called up for all planned orders for a material or just for a single planned order.

��The following data are periodically released for a work center:

• The available capacity of the work center within a period,

• The total capacity load of the work center by all planned and production orders within a period.

��By changing the order quantity and the order finish date, you have the option of reducing the underloads and overloads of the respective work center.

© SAP AG LO210 6-14

SAP AG 1999

Master Production Scheduling: Summary (1)

z In master production scheduling, materials which arecritical parts are planned separately and theplanning results for these materials are evaluatedseparately.

z Materials can be selected as master schedule itemsusing the MRP type.

z The firming type defines how the order proposals arefirmed and how the dates are set within the firmingperiod.

© SAP AG LO210 6-15

SAP AG 1999

Master Production Scheduling: Summary (2)

z The planning of materials can be stabilized using theplanning time fence or a manual firming date.

z Planned orders can also be manually firmed andunfirmed.

z After using master production scheduling andfirming in order to stabilize the planning, materialrequirements planning is carried out for non-masterschedule items.

© SAP AG LO210 6-16

Exercises

Unit: MPS Topic: Firming


• Discuss the effects of firming,

• use firming to ease the planning process.

The production of the pump T-F1## is planned in plant 1000 for the near future: planned independent requirements are entered in the system and planned orders are created accordingly. Following the planning, production demands it should not have to deal with any other planned orders within the next 20 working days. In the short run, this period should be extended to the end of the month after next.

Make sure that the following entries have been made in the material master of the material T-F1## in plant 1000: strategy group 40, and a time period of 30 days for the backward and forward consumption periods. Also, in the MRP 1 view, change the MRP type to MO – MPS fixing type 0.

1-1 Create planned independent requirements for material T-F1## in plant 1000: starting from the Demand Management menu, enter the following active VSF planned requirements for material T-F1## in plant 1000 in planned independent requirements version 00. Use planning period W (week).

Current week +1

Current week +2

Current week +3

Current week +4

Current week + 5

20 10 10 10 10

Confirm any warnings with Enter and save the requirements.

© SAP AG LO210 6-17

1-2 Execute single-item, single-level master production scheduling for material T-F1## in plant 1000 and call up the stock/requirements list for this material.

1-2-1 Is a planning time fence active for this material (that means, is the system displaying a corresponding time fence)? _______________

1-2-2 In the header details, check that a planning time fence has been entered for the plant 1000 in the material master T-F1##. Why is no firming active? ______________________

1-3 Convert the material to a master schedule item with fixing type 1 and a planning time fence of 20 working days in order to satisfy the demands that production made: Change the value in the MRP type field to M1 and in the planning time fence field to 20 (working days) in the MRP 1 view of material master record T-F1## in plant 1000. Access the stock/requirements list for material T-F1## in plant 1000 again.

1-3-1 Does the system display a planning time fence? _____________

1-3-2 What date is the end of the planning time fence set for?

__________________

Why are the planned orders within the planning time fence shown as firmed?

___________________________________________________

1-3-3 Choose Display element to display the header screen of a firmed planned order inside the planning time fence. Is the firming indicator for planned order data set? __________

1-4 You receive a sales order for 100 pieces of material T-F1##, distribution plant 1000. The requirements date is today + 3 weeks.

1-4-1 Starting from the Demand Management menu, enter a corresponding customer requirement (use the data specified for this customer requirement).

1-4-2 Access the stock/requirements list and analyze the situation. Which date is there a material shortage for, in other words, on which date does the available MRP quantity fall below zero? __________________

© SAP AG LO210 6-18

1-5 Execute interactive single-item planning for material T-F1## in plant 1000. When you start the transaction, the current planning situation is read. Planning is triggered manually using the function Execute planning. After executing this function, you can see the planning results that are, at this point in time, not yet saved to the database.

1-5-1 On which date is the material shortage corrected, in other words, on which date is a planned order created so that the available quantity is greater than or equal to zero? ______________

What is the number of this planned order? _________________

1-5-2 Why is the shortage situation, which was determined above, not covered on time?

___________________________________________________

1-5-3 Select the planned order and display the exceptions by choosing Add. data for element. Select the planned order and choose Reschrd ord. proposal. On which date can the planned order be accessed now? ______________________

Save the planning result.

1-6 Access the stock/requirements list for material T-F1## in plant 1000.

1-6-1 View the planned order that you have rescheduled and the number of which you have noted. Is the firming indicator set in this planned order? ____________

Give a reason for your result:

___________________________________________________

1-6-2 Set the manual firming date for 3 workdays later than the end of the planning time fence. Refresh the list.

Which firming date is active? _______________

1-7 From the stock/requirements list, select the customer requirement and using change element, increase the above customer requirement by 15 pieces. Execute a single-level, interactive planning run and save the planning result, returning to the stock/requirements list. Analyze the planning result: For when has an additional procurement element for the increased quantity of the sales order been scheduled? ____________________

© SAP AG LO210 6-19

Solutions

Unit: MPS Topic: Firming

1-2 Menu path: Logistics o Production o Production Planning o MPS o Single-Item o Single-Level

1-2-1 Planning time fence active: No

1-2-2 Reason: The effect of the planning time fence is controlled by the MRP type in the material master. The MRP type “M0” in the material master T-F1##, determines that no automatic firming is to take place.

1-3

1-3-1 Planning time fence displayed: Yes

1-3-2 End of the planning time fence: Varies (Today + 20 working days)

Planned orders within the planning time fence firmed: The planned orders within the planning time fence are flagged as firmed, because the MRP type M1, which you have entered in the material master, defines that order proposals that fall within the planning time fence are firmed automatically.

1-3-3 Indicator for firming planned order: No

1-4


1-4-2 Date quantity available for planning below zero: The available quantity falls below zero on the requirements date of the customer requirement.

© SAP AG LO210 6-20

1-5 Menu path: Logistics o Production o Production Planning o MPS o Single-Item o Single-item, Interactive

1-5-1 Available quantity greater than or equal to zero: The available quantity is greater than or equal to zero at the end of the planning time fence.

Number of planned order: Varies

1-5-2 Why not on time: Behind the MRP type M1 is the firming type 1. With the firming type 1, recent shortage situations within the planning time fence are not covered with a new procurement element until the end of the planning time fence.

1-5-3 Date of planned order now: The planned order is now on the requirements date of the KSV customer requirement.

1-6

1-6-1 Firming indicator set: Yes, the firming indicator in the planned order header is set.

Reason: The planned order was rescheduled manually in the single-item, interactive planning. This manual change led to the firming indicator being set.

1-6-2 Firming date: Date varies. The firming date that was set manually is active, because it lies later than the end of the planning time fence from the material master.

1-7 When an additional procurement element is scheduled: Date varies. The additional procurement element is scheduled for the end of the planning time fence; that is on the manual firming date that you had entered.

© SAP AG LO210 7-1

SAP AG 1999

Long-Term Planning

Contents:

z Aims and environment

z Create and release

z Long-term planning run and evaluations

z Long-term planning and operative MRP

© SAP AG LO210 7-2

SAP AG 1999

z simulate a demand program,

z create long-term planning scenarios,

z carry out a long-term planning run,

z explain the relationship between long-term planningand operative material requirements planning.


Long-Term Planning: Unit Objectives

© SAP AG LO210 7-3

SAP AG 1999


11 Introduction


Long-Term Planning77


Overview22


99 MRP Areas


44 MRP Run

66 MPS

© SAP AG LO210 7-4

SAP AG 1999

Aims of Long-Term Planning

z Simulation of the impact of a future demand programon all BOM levels

z Leveling capacity

z Planning costs

z Preview for Purchasing

z Preview for Inventory Management

��In long-term planning, production plans for future demand programs are simulatively calculated using MRP runs with reference to the planning scenarios.

��The demand programs that are able to be simulated may include planned independent requirements and/or sales orders.

��The simulation can be evaluated and optimized with regard to material requirements planning, capacity planning, order volumes, purchasing budget, cost center planning and inventory controlling. After the evaluation of the simulative planning results, the current demand program can be replaced by the preferred version in long-term planning and can be continued there.

© SAP AG LO210 7-5

SAP AG 1999

Simulative Planning Areas

Operative

Planning Area

Simulative Planning Area (2)

Simulative Planning Area (1)

Demand program 1Planning scenario 1...

Demand program 2Planning scenario 2 ...

��The principle of long-term planning is to simulate planning against different versions of the demand program. In the simulation, operative data can be taken into account (for example, master data, sales orders, purchase orders, production orders). The simulation can be used to optimize the demand program and the production and procurement data with regard to material requirements planning, capacity planning, order volumes, purchasing budget, cost center planning and inventory controlling.

��In long-term planning, independent "planning areas" can be set up which can subsequently be integrated into operative planning. Within these planning areas, separate simulation stock data is calculated and maintained which can be used to carry out planning in scenarios. An individual simulative planning area exists for each scenario in the system. Operative data can be copied to or referenced (taken into account) by one or more simulative planning areas.

��Simulative planning can be carried out for the long or short term. There is no time restriction for the execution of long-term planning. The planning periods for the long-term planning and operative planning should be in agreement with each other so that business inconsistencies can be avoided.

© SAP AG LO210 7-6

SAP AG 1999

Position in the Functional Environment

Long-Term Planning

OperativeMRP

orlong-term planning

BOM

Reportingfor operative

planning

Several parallelscenarios

+Comparison ofplanning areas

Operativeor

long-term planning-

routing

Material masterdata

for operativeplanning

��Long-term planning can be executed on the basis of operative master data: bill of materials, routings and material master records. This means you do not have to create any new operative data.

��If you want to simulate situations that use differing master data, you can also create special master data for long-term planning:

• You can create special long-term planning routings and run simulations with regard to lead time scheduling and capacity planning. For this, a routing selection ID that calls up this long-term routing must be maintained in Customizing. This selection ID is assigned to a scenario, that is a simulative planning area, in the Customizing IMG activity "Define scheduling parameters for planned orders".

• In addition, you can use special long-term planning BOMs. To do this, you define a special usage for long-term planning in the Customizing IMG activity "Define BOM usages" and define the allowed material types for the BOM header and BOM item for this usage. In the Customizing IMG activity "Define order of priorities for BOM usages", you then maintain a BOM selection ID that calls up the long-term BOM. This selection ID is assigned to a simulative planning area when creating the scenario in the field "BOM selection ID".

��The tools available for long-term planning are used in the same way as are the tools in operative planning. Thus, very little additional training is required for these tools.

© SAP AG LO210 7-7

SAP AG 1999

Planning Scenario (1)

Planning period forind reqmts

Opening stock

Long-Term Planning

Plnd ind reqmtsversions for the

simulation (activeor inactive)

Plants

Dependent reqmts forconsumption-based

materials

Purchase orders,production orders,

reservations ...

Capacity version

��When creating a planning scenario, you may set defaults for certain settings for the scenario by selecting one of the default setting choices on the Create Planning Scenario screen. Options include "Long-term planning", "Gross long-term planning" and "Short-term simulation". These defaults can be changed at any time. You can also copy the settings from another scenario.

��If you have selected the indicator "Gross long-tem planning", the system suggests control parameters with which you plan requirements quantities for cost evaluation and budgeting purposes without taking into account operative, available stocks, material-specific lot sizes or scrap.

��In the planning scenario, settings and items you define include:

• The plants for which the simulation is to be carried out,

• Which planned independent requirements versions (active or inactive) are to be used in the simulation,

• What opening balance (stock) the simulation is to assume (zero stock, safety stock, plant stock at the time of planning, average plant stock),

• Whether to include firm receipts (purchase orders, production orders and reservations) in the net requirements calculation,

• Whether dependent requirements for consumption-based materials, KANBAN materials and bulk materials are created,

• Which version of the available capacity is used in the simulation.

© SAP AG LO210 7-8

SAP AG 1999

Planning Scenario (2)

Long-Term PlanningDirectproduction

Firm planned orders,Purchase requisitions

**

*

Planning time fenceon/off

**

Sales orders

Sales order

Long-term planning-

BOM

Gross reqmtsplanning

Make-to-order andindividual project

production

Scrap calculation

��You also set in the planning scenario:

• Whether the system should work with direct production, that is, whether it should create a collective order for materials that are to be produced directly in the planning. When using direct production in long-term planning, only the header order can be changed and not the subordinate orders in the collective order.

• Whether the long-term planning should be executed as gross requirements planning and whether the calculation of scrap in the long-term planning run is to be deactivated.

• Whether long-term planning BOMs should be used.

• Whether firm planned orders from operative MRP should be copied to the long-term planning (firm planned orders can be changed) and whether firm purchase requisitions for operative planning (these cannot be changed) should be taken into account in the simulative planning area.

• Whether the planning time fence is also to be effective in long-term planning for materials that are affected by a planning time fence in MRP.

• Whether sales orders are taken into account in long-term planning. (These cannot be changed from long-term planning.)

• Whether make-to-order production or individual project planning is to be executed for the materials of the corresponding strategy. Make-to-order planning presupposes that sales orders with a requirements type for make-to-order planning are taken into account. If the indicator "Make-to-order and project planning" is not set, the sales orders with a make-to-order planning requirements type are ignored in the scenario.

© SAP AG LO210 7-9

SAP AG 1999

Consumption-Based Materials

Reorderstock

Safetystock

Receipt

Replenishment lead time

Nolong-termpreview !

Simulative dependent requirements

SimulativeReceipts

Previewthanks to

simulation !

��Consumption-based materials are not planned in MRP because no dependent requirements are created for these materials. In consumption-based planning, materials are not replenished during the MRP run until stock falls below the reorder point or in forecast-based planning, until the forecasts for future consumption requirements are not covered.

��In long-term planning, dependent requirements can be created for consumption-based materials, bulk material and KANBAN materials, that is, the material is planned in the scenario as though it were a material planned using MRP. You are thus provided with a preview of the procurement quantities that are necessary to satisfy the simulated independent requirements.

© SAP AG LO210 7-10

SAP AG 1999

Simulative Planned Independent Requirements

Simulative Planning Area Simulative Planning Area

Version 03Version 02

Version 01

Planned ind reqmts

Sales &OperationsPlanning

ForecastSales orders

Sales order

Sales order

Sales order

Simulative plnd ind reqmts

��Several planned independent requirements versions can be created for a material.

��Planned independent requirements versions can be created using the following:

• the sales and operations plan of a material or a product group,

• the results of flexible planning from sales and operations planning,

• forecasting,

• planned independent requirements of other materials,

• planned independent requirements versions of the same materials,

• manually.

��A planned independent requirements version can be set as active or inactive. Inactive versions are created for simulation purposes. Only active planned independent requirements versions are taken into account in operative planning.

��If, according to the settings in the scenario, sales orders are included in the simulative planning area along with planned independent requirements, then MRP plans in the simulative planning area using the same logic as in operative planning.

© SAP AG LO210 7-11

SAP AG 1999

Carrying Out Long-Term Planning

Create and releaseplanning scenario

Create and change plnd ind reqmts version(s)

Simulative MRP

Reporting

Activateplanned ind reqmts versions

Transfer firmsimulative planned orders

Sales orders Firmed receiptsTotal planning

Single-item

Single-item insimulation mode

Planning table

��A planning scenario must be released before long-term MRP can be carried out. Once the planning scenario is released, planning file entries for all materials of the plants that are assigned to the planning scenario are created in the background. Each scenario thus has its own planning file entries for long-term planning.

��Depending on the settings in the scenario, external requirements and fixed receipts are included in the long-term planning along with the assigned planned independent requirements. The indicator "Include sales orders" establishes that sales orders, scheduling agreements, contracts and deliveries are taken into account. The indicator "Include firm receipts" refers to the inclusion of production orders, purchase orders, schedule lines, reservations, transport releases and QM inspection lots.

��Operative data that flows into long-term planning cannot be changed in the simulative planning area. Firm operative planned orders are the exception: The order headers for firmed planned orders (i.e., basic dates and order quantity) are copied to the simulative area, but the capacity requirements and dependent requirements are not copied in. You control the transfer of firm planned orders in the initial screen of the planning run.

��Only simulative planned orders are created in long-term planning. It can be executed as total planning, single-item planning, single-item planning in simulative mode or using the planning table from repetitive manufacturing.

��After evaluating and checking the simulative planning results, the planned independent requirements version can be activated in the planning scenario and, if necessary, can be given a new version number. Once activated, the planned independent requirements version is effective for operative planning. You can also transfer simulative planned orders from long-term planning to operative planning.

© SAP AG LO210 7-12

SAP AG 1999

Work center 1904 Final assemblyCapacity cat. 001 MachineUnit of measure H Hour

Material P-100 Pump Ethanorm 150-200 Plant 1000

Capacity load utilization per period

Period Available Total Material

Capacities with Overload

Capacity load

Work center 1310 Capacity cat. 001 Person Max.load 50% Capacity cat. 002 Machine Max.load 110%Work center . .

Single-item planning

Stock /reqmtslists

Scheduling ind. = 2in planning run

Capacity Check with Overload Display

��The same functions for capacity planning are available in long-term planning as in material requirements planning.

��Capacity planning can be called up from planned order processing, the planning result of single-item planning or from the stock/requirements list.

��In the capacity check of the stock/requirements list, the available capacity, the total capacity requirements independent of materials and the capacity requirements of this material are displayed in periods for each work center and capacity category. Overload situations are highlighted using colors. The overload function calculates the maximum load for each work center and capacity category and the overload is highlighted using a different color.

��A planning run with the scheduling indicator 2 "lead time scheduling and capacity planning" is a prerequisite for the capacity check. Results that were created by a planning run with the scheduling indicator 1 "Basic dates will be determined for planned orders" cannot be analyzed using capacity planning.

© SAP AG LO210 7-13

SAP AG 1999

Planning Levels for Capacity Data

MPS (plannedorder)

MRP (plannedorder)

Process control(process order)

Production control(production order)

Capacitydata

on

detailedscheduling

level

Capacity data for rough-cut planning atrough-cut planning levelSOP

Long-Term Planning

Scenario 1

Scenario 3

Detailedscheduling

Scenario 2 Detailedscheduling

Detailedscheduling

��Capacity data can be calculated on different levels:

• in the operative MRP at detailed scheduling level,

• in the long-term planning at detailed scheduling level, whereby the data is separate for each scenario,

• in the sales and operations planning at rough-cut planning level.

��The capacity evaluations for operative MRP and long-term planning are executed separately. The only capacity requirements from the operative environment that can be taken into account in the long-term planning are those that arise from the production orders which are taken into into the long-term planning scenario. Firmed planned orders taken into the scenario are copied without their routing and scheduling information; these are re-determined and re-calculated in the long-term planning MRP run if the scheduling is set to ”lead time scheduling and capacity planning“.

© SAP AG LO210 7-14

SAP AG 1999

Evaluations

Long-Term Planning

MRP list orstock/reqmts listper material and

planningscenario

Comparison of planningscenarios

with operativeplanning

PurchasingInformation

System

Cost centerand activity

type planning

InventoryControlling

��In order to compare the results of simulative planning with results of operative planning, you can call up a comparison function from all evaluations. The operative planning of a material can be directly compared with the result of long-term planning of a particular planning scenario. Scenarios can also be compared with one another.

��The data for external procurement can be transferred to the purchasing information system using a special report and evaluated there. In addition, standard analyses for materials, vendors and material groups can also be created directly from long-term planning and evaluated.

��Future stock is derived from the predefined requirements and future receipts. The data determined for the requirements/stock situation by long-term planning can be transferred to Inventory Controlling and can be evaluated there using standard analyses.

��The data determined in long-term planning for the activity requirements is passed onto the Cost Center Accounting as planning data. This allows you to determine the production costs for each cost center and the products. The activity requirements that are determined in long-term planning can be passed onto Cost Center Accounting using an individual report after completion of long-term planning. The planning data of the cost centers is updated whereby the requirements activity is determined from the routing data. Cost Center Accounting displays how many activities the production has planned.

© SAP AG LO210 7-15

SAP AG 1999

Long-Term and Operative Planning

Material A - Simulative version 03Material A - Simulative version 02

Time

Material A

Time

Material A - Simulative version 01

Time

Material AOperative Planning

+Simulation of future

plnd ind reqmts

=New operative

planned independentrequirements

��The operative demand program results from the total of all active planned independent requirement versions.

��A planned independent requirements version can be activated in two different ways:

1. By setting the active indicator of the planned independent requirements version: as the operative planning is the total of all active planned independent requirements versions, this procedure is the equivalent of an addition to the plan up to now.

2. By activation in the scenario: the source planned independent requirements version is copied to a target planned independent requirements version. During the activation, if an already active version has been selected as the destination version for the transfer and the periods overlap in which the source and destination versions of planned independent requirements exist, the independent requirements of the destination version in the overlapping periods are overwritten by the independent requirements of the source version.

© SAP AG LO210 7-16

SAP AG 1999

Transfer Firm Planned Orders

* * t

Operative Planning Area

Simulative Planning Area

t

Today

DirectionDirection of ofTransferTransfer

Before

* * t



t

Today

* *

AfterAfter

Transfer of fimed operative planned orders intolong-term planning

SimulativePlanning

Run

��Firmed planned orders from operative MRP can be copied to the simulative planning area. Only the planned order headers are copied during the copying process. Changes to components of planned orders that have been made in operative planning, are not copied. With simulative planning, the planned order components are created again according to the BOM selected in the simulative planning run.

��The firmed planned orders are copied per material by the simulative planning run in the simulative planning area. During this process, all firmed planned orders are selected for each material of a BOM structure and are adopted (copied to the simulative planning area). These are also firmed in long-term planning but can be changed manually there.

��The order finish date of the planned order that was selected and copied last is saved as the temporary end of the copying period for each material. The copying period is determined by the firmed operative planned order that is furthest in the future.

��When copying a firmed planned order from operative planning, all firmed and unfirmed simulative planned orders in the simulative planning area whose order finish dates are within the copying period are deleted.

© SAP AG LO210 7-17

SAP AG 1999

Transfer Firm Planned Orders (1)


* * t


t

Before

* * * *

t



t

AfterAfter

* * * *

* * *

Direction ofTransfer

Transfer of firmed simulative planned orders tooperative planning

Operative,interactive single-

item planning

��After the simulation, firmed simulative planned orders of a simulative planning area can be adopted to the operative planning (copied to the operative planning area). In the operative area, you can create purchase requisitions or schedule lines for materials procured externally.

��This type of copying is carried out for a material in the transaction "interactive single-item planning" of operative MRP. In the following screen of the planning result, the copying function is started using the function "Edit - - Copy simulative planned orders". You explicitly define the start and finish of the copying period for this process.

��All firmed planned orders whose order finish dates are within the selected period are copied from the simulative planning area to the operative planning area. In the operative planning area, all firmed and unfirmed planned orders, whose order finish date falls in the copying period, are deleted, so that only the copied planned orders in the operative planning remain in this period.

��If operative planned orders were converted into production orders before the transfer, the production orders still remain after the transfer of the planning results and the copied firm planned orders are added to them which would therefore result in doubling the replenishment. You can avoid unnecessary double procurement, if you convert into production orders before the start of the simulative planning and have set in the planning scenario that all firmed receipts are taken into account in the long-term planning.

© SAP AG LO210 7-18

SAP AG 1999

Transfer Firm Planned Orders (2)

Transfer of firmed simulative planned orders tooperative planning: materials procured externally


* t


t

Before

*

t



t

AfterAfter

*

Direction ofTransfer

* ** *

* * *

Plannedorder

Purch. req. / Schedule lines

Operative,interactive single-

item planning

��After the simulation, firmed simulative planned orders of a simulative planning area can be adopted to the operative planning. For materials procured externally during the transfer into the operative area, you can create firmed purchase requisitions or firmed schedule lines for simulative planned orders of the order type "NB".

��To do this, you enter the respective creation indicator in the initial screen of interactive single-item planning in the MRP menu in the fields "Create purchase requisition" and "Schedule lines" (purchase requisitions or schedule lines, schedule lines in the opening period or purchase requisitions in the opening period).

��The creation of schedule lines presupposes that the scheduling agreement item is already entered in the firmed simulative planned order before the transfer. This is achieved by maintaining the scheduling agreement item as MRP-relevant before the long-term planning run in the simulative area.

��After the transfer, the firmed planned orders, purchase requisitions and schedule lines are displayed in the planning result. After saving the planning result, the transfer to operative planning is closed.

��If there were non-firmed purchase requisitions and schedule lines in the copying period in operative planning, these are deleted during the transfer of the planning result and the purchase requisitions and schedule lines that were created during the transfer are used in the operative planning. If the purchase requisitions and schedule lines were firmed in the operative planning, they are still used after the transfer of the planning result. You can avoid unnecessary double purchase requisitions and schedule lines, if you have set beforehand in the planning scenario that all firmed receipts are taken into account in the long-term planning.

© SAP AG LO210 7-19

SAP AG 1999

Long-Term Planning: Initial Data


Inde

p. re

qmts

to

be si

mul

ated

Salesorders

Firm purchaserequisitions

Operativeplnd orders

MTO production

Direct

production

Planni

ng ti

me f

ence

Manua

l firm

ing

date

Firmed receipts


Simulativeplanned orders

Firmplanned orders

��The following can flow into the simulative planning area:

• Active or inactive planned independent requirements version

• Sales orders,

• Operative, firmed planned orders,

• Firmed purchase requisitions,

• Production orders,

• Purchase orders.

© SAP AG LO210 7-20

SAP AG 1999

Long-Term Planning: Results Data

Plnd ind reqmts

Plnd ind reqmts

Plnd ind reqmts

SimulatedPlnd ind reqmts

Firm simulativeplanned orders

Simulative Planning Area Operative Planning Area

OperativePlanned orders

FirmPlanned orders

Firm purchase

requisitions/schedule lines

��The following can be copied from the simulative planning area to the operative planning area:

• Activated planned independent requirements versions,

• Firmed simulative planned orders (for materials procured externally even as purchase requisitions or schedule lines).

© SAP AG LO210 7-21

SAP AG 1999

z Demand programs in the form ofplanned independent requirementsversions and sales orders can besimulated in separate planning areasusing operative master data.

z The parameters for the simulationin the simulation planning area are defined in the scenario.

z Production orders, purchase orders,firm purchase requisitions and firmoperative planned orders can be usedin the simulative planning area.

Long-Term Planning: Summary (1)

© SAP AG LO210 7-22

SAP AG 1999

Long-Term Planning: Summary (2)

z The algorithms and evaluations ofsimulative material requirements planning correspond to those inoperative material requirements planning.

z The planned independent requirementsversions created in the simulation can beactivated. Firm simulative planned orderscan be transferred to operative MRP.

© SAP AG LO210 7-23

Exercises

Unit: Long-Term Planning Topic: Carrying Out Long-Term Planning


• create a scenario for long-term planning,

• carry out and evaluate a long-term planning run.

The Precision Pump Inc. procures the pump T-F1## in plant 1000 using the strategy planning with final assembly. A future demand program is to be simulated, whereby capacity is to be examined. Incoming sales orders are to be taken into account in the simulation.

1-1 Check or change material masters:

1-1-1 Make sure that the following entries have been made in the material master of the finished product T-F1## in plant 1000: MRP type PD, strategy group 40, consumption mode 2, and a time period of 30 days as consumption periods backwards and forwards.

1-1-2 The assembly T-B4## is normally produced using repetitive manufacturing in plant 1000. For this and the following exercises, we want to use only discrete manufacturing for this material. Access view MRP 4 for the material T-B4## in plant 1000 and change the value in the field Selection method to blank.

1-2 Starting from the long-term planning menu, create the inactive planned independent requirements of the material T-F1## in plant 1000 in the planned independent requirement version ##. Ensure that the dates for the planning horizon on the initial screen are set to allow for at least a year into the future. Set the planning period to monthly format by entering the indicator M in the planning period field in the initial screen for the transaction. In the field Selected version, enter the planned independent requirement version ##. Start the transaction and create the following requirements:

Current month +6

Current month + 7

Current month +8

... Current month +11

300 250 250 ... 250

© SAP AG LO210 7-24

Make sure that the active indicator is not set.

Save the planned independent requirements.

1-3 Create a long-term scenario:

1-3-1 Starting from the long-term planning menu, create a long-term scenario in order to simulate the production program of the planned independent requirement version ##. When accessing the scenario, choose the default value indicator Long-term planning. Use the following data:

Number of the scenario: 0## (## = group number)

Text of scenario: Long-term scenario ##

Confirm your entries with Enter and make the following settings:

Planning period from first day of current month + 6

to last day of current month +11;

No opening stock

Create dependent requirements for materials planned using reorder point planning;

Consider sales orders from operative planning;

Switch off planning time fence,

Do not use direct production;

Do not use make-to-order and project planning;

Include firm receipts (purchase orders, production orders and reservations);

Do not include firm purchase requisitions;

Include firm planned orders.

1-3-2 The planned independent requirement version ## in plant 1000 is to be simulated in the scenario. To do this, assign the plant 1000 to the scenario, by choosing Plants and making the respective entry with New entry. Confirm your entries. Then choose Planned independent requirements, enter the planned independent requirement version ## using New entry and confirm this entry.

1-3-3 Then release the scenario. To do this, choose Release + save. The planning file entries for the materials in the assigned plants are to be created immediately.

© SAP AG LO210 7-25

1-4 Take a look at the current stock/requirements situation of scenario 0##. To do this, access the stock/requirements list from the evaluations for long-term planning and enter the material number T-F1##, the plant 1000 and the scenario 0##.

It is useful to access the stock/requirements list for the scenario in a separate session, since we monitor the progress of the planning in it permanently.

1-4-1 Does the system display the planned independent requirements for the version ## that flow into the scenario 0## in the list? _________

1-4-2 Do the planned independent requirements of scenario 0## appear in the operative stock/requirements list that you access from the MRP menu? _________

Why (not)? ________________________________________

1-5 Carry out the long-term planning for material T-F1## in plant 1000 and scenario 0##. As you want to look at the capacity situation in scenario 0##, which is relevant for the production of material T-F1##, later on, capacity requirements are to be created in the long-term planning. From the long-term planning menu, call up the (long-term) single-item, multi-level planning. Enter the following parameters in the initial screen of the transaction:

Planning scenario: 0##

Material: T-F1##

Plant: 1000

Processing key: NETCH

Scheduling: 2 (lead-time scheduling and capacity planning)

Include firm plnd ordrs: use setting in planning scenario

Also plan unchanged components: select

Display result: do not select

Display mat. list: select

Simulation mode: do not select.

Above all, note the scheduling indicator 2.

Then save your settings and start the long-term planning run by choosing Enter twice.

© SAP AG LO210 7-26

1-6 Evaluate the current stock/requirement situation of scenario 0##.

1-6-1 Did the system create procurement elements to cover your planned independent requirements? __________

1-6-2 There are firm planned orders in the list. Where do these orders come from? _______________________________

1-6-3 Compare the order numbers of the firm planned orders in the long-term planning with the order numbers of the corresponding orders in the operative planning. Are they the same? _____

Give a reason for your result: _____________________________

1-7 Evaluate the capacity situation: From the stock/requirements list for the material T-F1## in plant 1000 for scenario 0##, goto the capacity situation. Select Detailed planning as planning type, weeks as periodic overview and as evaluation period enter the beginning and the end of the planning period that you specified in the definition of the scenario (1. Day current month + 6 to last day current month +11). Select the button Continue to start the capacity evaluation.

1-7-1 Did the system create any capacity overloads? _____________

1-7-2 How many per cent overload at what work center in which capacity category and in what period (enter some data as an example)?

Work Center Capacity Category

Period Max. Load (as a percentage)

1-8 In the period with the largest overload, select the Total requirement field (absolute amounts, not in per cent) and choose the Pegged requirements to evaluate the pegged capacity requirement. Which materials have caused the capacity load?

_________________________________________________

© SAP AG LO210 7-27

1-9 You reduce the planned independent requirements in order to adapt the capacity load to the available capacity. Change the (inactive) planned independent requirements for material T-F1## in plant 1000 in the planned independent requirement version ## in the following way:

Current month +6

Current month +7

Current month +8

... Current month +11

210

195 195 ... 195

Make sure that the active indicator is not set in the planned independent requirement.

Save the changed planned independent requirements.

1-10 Repeat the (long-term) single-item, multi-level planning for the material T-F1##, in plant 1000, scenario 0## and evaluate the capacity situation in the stock/requirements list again.

1-10-1 Are there any capacity overloads? _________

1-10-2 Compare the new situation with the values above. How can you explain the difference?

__________________________________________________

1-11 You have adjusted the capacities of your master plan in long-term planning and now want to transfer it to operative planning. You activate the inactive planned independent requirements that were simulated in scenario 0##.

1-11-1 Starting from the long-term planning menu, you use the transaction Change planning scenario to activate the planned independent requirements for scenario 0##. Choose Activate independent requirements. In the dialog screen that follows, select the planned independent requirement version ## and as target version enter the planned independent requirement version number 00. (For the transfer period, the system suggests the period that you had entered as the planning period in the scenario.) Delete the indicator for Test mode, select the indicator Create list and then the button Activate.

1-11-2 Call up the operative current stock/requirements list. Are the VSF requirements that you had created in the long-term planning displayed? _____________

In which planned independent requirement version are these requirements (display the element from the list in order to answer the question)? __________

© SAP AG LO210 7-28

1-12 In the meantime, a sales order has arrived for 300 pieces of material T-F1## in plant 1000 for the twenty-fifth day of the current month +9. Enter this sales order as a customer requirement in the menu for demand management.

1-12-1 Is the customer requirement relevant to requirements in operative MRP (check this in the stock/requirements list for operative planning)? _________

1-12-2 Is the customer requirement relevant to requirements in scenario 0## (check this in the stock/requirements list for this scenario)? _________

1-12-3 Compare the planned independent requirements in the display of the stock/requirements list 0## with the requirements that you have entered above. What is striking?

_____________________________________________________

Give a reason for what you see.

_____________________________________________________

© SAP AG LO210 7-29

Exercises

Unit: Long-Term Planning Topic: Transfer Firm Planned Orders


• transfer a master plan in the form of firmed planned orders from long-term planning to operative planning.

A demand program has been designed for pump T-F1## in plant 1000, then simulated in long-term planning and agreed on regarding capacities. The demand program has been activated. After the sales order has arrived in the required quantities, operative requirements planning is evaluated from a capacity point of view. On doing this, you discover that the sales order causes a local capacity overload. You therefore firm the capacity balanced long-term procurement plan and transfer the corresponding planned orders directly.

2-1 Execute and evaluate the operative multi-level requirements planning:

2-1-1 Execute operative multi-level, single-item planning for material T-F1## in plant 1000. Please ensure that you use the scheduling indicator 2 (lead-time scheduling and capacity planning) and the planning mode 3 (Delete and recreate planning data).

2-1-2 Call up the current stock/requirements list for material T-F1##, plant 1000 in operative requirements planning and evaluate the capacity requirements. Look at an evaluation period from first day of current month +6 to last day of current month +11. Do capacity overloads exist? ________________

2-2 Firm the long-term planning simulative requirements plan so that you can use it in the operative planning area. From the long-term planning menu, call up the stock/requirements list in scenario 0## for material T-F1## in plant 1000. Set the manual firming date for the end of the planning period from your scenario, that means, the end of the current month + 11 (you access the function Set firming date from the stock/requirements list for your scenario). Then refresh the list.

2-2-1 How do you know whether, and on which date, the manual firming date is set for?

__________________________________________________

2-2-2 Which simulative planned orders are treated as being firmed?

__________________________________________________

© SAP AG LO210 7-30

2-2-3 Select the last firmed planned order in the list and choose Display element. Is the firming indicator for planned order data set in the planned order header?

_______________

2-2-4 What effect does this have on the planned order if the manual firming date is deleted again?

__________________________________________________

2-3 In this exercise, you will copy the firmed simulative planned orders for material T-F1## in plant 1000 for scenario 0## to the operative planning period: To do this, you call up the single-item, interactive planning for material T-F1## in plant 1000 from the operative MRP menu. Start the transaction by choosing Enter.

2-3-1 When you access the transaction, the system only reads and displays the current requirement and procurement elements from the operative planning. To transfer the firmed planned orders from long-term planning, use the function Copy simulative LT planned orders. In the dialog box that appears when accessing the function, enter the scenario 0## as the source and confirm it with Enter. In the field Copy from, enter the start of the planning period from the scenario, that is, the first day of the current month + 6, and in the field (Copy) to, enter the manual firming date that you set in the stock/requirements list for the scenario. Confirm these entries by choosing Copy.


2-3-2 Compare the firm planned orders in the result of the transfer, which is now displayed, with the operative and simulative stock/requirements list for the scenario 0## that you access in a separate session. What differences are there?

__________________________________________________

2-3-3 Save the results in the database.

2-4 Execute operative multi-level requirements planning and evaluate from a capacity point of view:

2-4-1 Execute multi-level, operative single-item planning for material T-F1## in plant 1000. Ensure that you have set 2 (lead-time scheduling and capacity planning) for the scheduling indicator and 3 (Delete and recreate planning data) for the planning mode.

2-4-2 Call up the current stock/requirements list for material T-F1##, plant 1000 in operative requirements planning and evaluate the capacity requirements. Look at the evaluation period from first day of current month +6 to last day of current month +11. Do capacity overloads exist? ______________________

© SAP AG LO210 7-31

Solutions

Unit: Long-Term Planning Topic: Carrying Out Long-Term Planning

1-2 Menu path: Logistics → Production → Production Planning → Long-Term Planning → Planned Independent Requirements → Create

1-3

1-3-1 Menu path: Logistics o Production o Production Planning o Long-Term Planning o Scenario o Create

1-4 Menu path: Logistics o Production o Production Planning o Long-Term Planning o Evaluations o Stock/Requirements List

1-4-1 Planned independent requirements of version ## displayed: Yes

1-4-2 Independent requirements also in operative stock/requirements list: No

Reason: Only active planned independent requirement versions are taken into account (and displayed) in operative planning. The independent requirement version ## is, however, not active.

1-5 Menu path: Logistics o Production o Production Planning o Long-Term Planning o Long-Term Planning o Single-Item, Multi-Level

1-6

1-6-1 Procurement elements created: Yes

1-6-2 Firm planned orders: The firm planned orders were transferred from operative planning.

1-6-3 Numbers of planned orders: The planned order numbers for the firmed planned orders in operative planning and long-term planning are not the same.

Reason: The planned order headers from operative planning were copied.

1-7

1-7-1 Capacity overloads: Yes

© SAP AG LO210 7-32

1-7-2

Work Center Capacity Category

Period Max. Load (as a percentage)

T-M## 002 Varies Varies, for example 189.7




1-8 Materials causing capacity load: T-B4##, T-F1##

1-10

1-10-1 Capacity overloads: Varies, but generally no.

1-10-2 Reason for difference: The independent requirements were reduced and the system created planned orders in reduced quantities accordingly in the MRP run. This causes a smaller capacity requirement.

1-11

1-11-1

1-11-2 VSF requirements displayed: Yes

Planned independent requirement version: 00

1-12 Menu path: Logistics o Production o Production Planning o Demand Management o Customer Requirements o Create

1-12-1 Customer independent requirement relevant to operative planning: Yes

1-12-2 Customer independent requirement relevant to scenario 0##: Yes

1-12-3 Comparison: The requirement quantities that are displayed in the stock/requirements list for the scenario have changed. The full amount is no longer displayed.

Explanation: In long-term planning, the calculation of planned independent requirements with customer requirements according to the planning strategy is executed exactly as in operative planning. A sales order has been received, which is consumed with the planned independent requirements. The system only displays the quantity that has not yet been consumed in the list.

© SAP AG LO210 7-33

Unit: Long-Term Planning Topic: Transfer Firm Planned Orders

2-1

2-1-1 Menu path: Logistics o Production o MRP o Planning o Single-item, Multi-level

2-1-2 Capacity overloads: Yes

2-2 Menu path for setting the firming date: from the display of the stock/requirement list for the scenario, Edit o Set firming date

2-2-1 Firming date: The manual firming date is displayed in a separate row in the list.

2-2-2 Firm planned orders: All planned orders where the receipt date lies in the planning time fence are treated as firm.

2-2-3 Firming indicator for planned order in planned order header: No

2-2-4 Planned order without manual firming date: If the manual firming date is deleted again, the planned order is no longer treated as firm.

2-3 Menu path: Logistics o Production o MRP o Planning o Single-item, interactive

2-3-1 Menu path for transferring simulative planned orders: from the display of the planning result: Individual lines under Edit o Copy simulative LT planned orders.

2-3-2 Comparison: The copied firm planned orders are not displayed in the operative stock/requirements list, because the planning result has not yet been saved in the database by choosing Save.

The firm planned orders are in the stock/requirements list for the scenario but have different planned order numbers to the orders after the transfer. During the transfer, the order headers are copied. This means that new identical orders are created.

2-4

2-4-1 Menu path: Logistics o Production o MRP o Planning o Single-item, Multi-level

2-4-2 Capacity overloads: Varies, but generally no.

© SAP AG LO210 8-1

SAP AG 1999

Contents:

z Steps in the MRP run

z Control parameters in the material master, in the BOM and inCustomizing for MRP

z Net requirements calculation

z Lot-size calculation

z Scheduling

z BOM explosion and routing selection

Technical Information onHow the Planning Run Works

© SAP AG LO210 8-2

SAP AG 1999

z Explain the individual steps of the MRP run,z Explain and apply the most important

parameters for the MRP run configuration andtheir combinations.

Technical Information on How the Planning RunWorks: Unit Objectives


© SAP AG LO210 8-3

SAP AG 1999

11 Introduction


Technical Information onHow the Planning Run Works88


Overview22


99 MRP Areas


44 MRP Run

66 MPS


© SAP AG LO210 8-4

SAP AG 1999

BOM Explosion

Scheduling

Procurement type

Lot-size calculation

Net requirements calculation 11

22

33

44

55

Steps in the Planning Run

© SAP AG LO210 8-5

SAP AG 1999

BOM Explosion

Scheduling

Procurement type


Net Reqmts CalculationNet Reqmts Calculation

Overview: Net Requirements Calculation

��The net requirements calculation is the first process to be carried out in the material requirements planning run at plant level or at MRP area level. During this process, the system checks whether the requirements can be covered by the available warehouse stock and fixed dispatched receipts. If shortages exist, the system creates an order proposal.

© SAP AG LO210 8-6

SAP AG 1999

ReqmtsReqmts

(Sales orders,(Sales orders,plnd indepplnd indep.. reqmts reqmts,,dependentdependent reqmts reqmts,,

reservations,reservations,and so on)and so on)

Fixed receiptsExample: purchase orders

Firm planned ordersFirm purchase requisitions

Lot size

Stock

Shortage

Comparision

Safety stockSafety stock

in Material Requirements Planningw

ithin

the

resc

hedu

ling

hori

zon

Net Requirements Calculation

��The system compares the fixed receipts (purchase orders, production orders, firmed planned orders, firmed purchase requisitions, QC inspection lots, and so on) with the stock available for planning minus the safety stock and requirements. Only fixed receipts within the rescheduling horizon are taken into account.

��The available quantity for planning is calculated from this comparison. If the quantity available for planning is lower than zero, a material shortage exists.

��The stock available for planning combines the following stock from all storage locations that belong to this plant or MRP area and are not excluded from MRP or planned separately: unrestricted-use stock, stock in quality inspection, unrestricted-use consignment stock and consignment stock in quality inspection.

��In the Customizing IMG activity "Define available stock in transfer/blocked stock/unrestricted stock", you can define for each plant whether the stock in transfer from plant to plant stock transfers are included in the plant stock available for planning without stock transport orders or the blocked stock and the restricted stock for batches.

��In gross requirements planning, using the planning strategy "make-to-stock production/gross requirements planning" the system does not compare the planned independent requirements that were created with this strategy with the plant stock. The system only checks against the expected receipts (planned orders, purchase requisitions, and so on).

© SAP AG LO210 8-7

SAP AG 1999

ReqmtPlanned orderProduction order

Availablequantity for

planning

Time

+

-

0Shortagequantity

Shortagequantity

Shortagequantity

Net Requirements Calculation in Process

��The quantity available for planning consisting of stock available for planning and the fixed receipts (purchase orders, production orders, firmed planned orders, firmed purchase requisitions, and so on) is calculated minus the safety stock and the requirements along the time axis on every requirements date. If the quantity available for planning is less than zero, a material shortage exists.

��If a material shortage exists, net requirements (shortage quantity) are determined.

��The lot size calculation is carried out on the basis of the net requirements and an order proposal is calculated (planned order or purchase requisition or schedule lines).

© SAP AG LO210 8-8

SAP AG 1999

Safety stock

Safety stock partially available

Dynamic safety stock

Safety time

Quantity and Time Floats

��How can you include a float in order to take uncertainties into account during the planning run?

• As a quantity float: safety stock, partially available safety stock, dynamic safety stock.

• As a time float: safety time (in workdays).

© SAP AG LO210 8-9

SAP AG 1999

Reqmt Receipt

Stock

TimeSafety stock(not availablefor planning)

Availablequantity

for planning

Safety stock: To be set in materialmaster (MRP 2) or in the MRP areasegment

Safety Stock

��For every requirement for which the available stock for planning is not sufficient, the system creates a procurement element in order to procure the quantity that the available stock for planning is unable to cover.

��You can define the safety stock level per plant in the "MRP 2 view" of the material master or per MRP area in the MRP area segment. The safety stock is not included in the net requirements calculation as it is classed as not available for planning.

��When the inventory is lower than the safety stock defined, the system replenishes the safety stock during the planning run. Note that this is also the case if the safety stock is only slightly below the level of the defined safety stock, which can result in a very large replenishment to cover a very small shortage; you will see how to manage this problem on a subsequent page.

��This type of safety stock is independent of the requirement quantities and is therefore static.

© SAP AG LO210 8-10

SAP AG 1999

Reqmt Receipt

Time

StockAvailablequantity

for planning

Portion of safety stocknot available for planning

Safety stock partially available: set inMRP group

Statisticalsafety stockfrommaterialmasterPortion of

safety stockavailable

Safety

Safety Stock Partially Available

��You can define the proportion of safety stock that is available for planning for each MRP group in the IMG activity "Define safety stock availability". It is defined as a percentage of the safety stock level which is to be entered in the material master, that the system can use for planning without generating a new planned order.

��A new order proposal is not created until the available proportion of the safety stock has been used up. This order proposal replenishes stock up to (at least) the safety stock level.

��Advantage: No individual order proposals are created for very small material shortages. This reduces the amount of administrative work and planning.

© SAP AG LO210 8-11

SAP AG 1999

Minimum stock

Target stock

Maximum stock

Replenish to target stock Exception messageif falls below minimumstock

for firmed order proposals,otherwise adjustment

"dynamicsafety stock“

Dynamic Safety Stock (1)

Stock

��You can determine a level of safety stock that is oriented to requirements using the range of coverage calculation.

��During every planning run, the system checks whether the available quantity is below the minimum stock level. If this is the case, the system creates an order proposal in order to increase the available quantity to the target stock level (dynamic safety stock).

��The planning run ensures that the available quantity does not fall below the minimum stock level. If stock falls below the minimum stock, it is replenished at least to the target stock level.

��If the maximum stock level is exceeded, the quantity is adjusted if it is not a firmed order proposal. An exception message is created for firmed purchase requisitions.

��You should note that the dynamic safety stock is not included in the net requirements calculation. That means, only the quantity of an existing planned order is increased if the availability situation requires this. If there is already sufficient material in stock to cover the quantity of the dynamic safety stock, no additional planned order is created.

��The static safety stock is added to the dynamic safety stock.

© SAP AG LO210 8-12

SAP AG 1999

Reqmts

Period 1 Period 2 Period 3 Period 4

Minimum stock

Target stock

Maximum stock

Time

Time

Average daily requirements



Days

Dynamic Safety Stock and Range of CoverageProfile

Dynamic Safety Stock (2)

��The dynamic safety stock is calculated on the basis of the average daily requirements and therefore automatically adjusts itself to the level of demand. The dynamic safety stock is calculated by multiplying the average daily requirements by the target range of coverage. All requirements in the current period in which the day of the planning run lies are always included in the calculation of the average daily requirements.

��In the IMG activity, "Define range of coverage profile (dynamic safety stock)" you can define the periodicity (week, month or period according to the planning calendar) and the number of periods for which the average daily requirements are to be determined. The average daily requirement is calculated for each period.

��In Customizing, you enter the minimum and target range of coverage as a number of days in which a material must still be available or should still be available. You can also enter a maximum range of coverage. By multiplying the average daily requirements by the values for the minimum, target and maximum range of coverage defined in Customizing, you calculate the minimum, target and maximum stock.

��During the planning run, the system checks whether the range of coverage (available quantity divided by average daily requirement) is below the minimum range of coverage or above the maximum range of coverage.

© SAP AG LO210 8-13

SAP AG 1999

Interval 1 Interval 2 Interval 3

Minimum stock

Target stock

Maximum stock

Reqmts

Time

Time

Definition of range of coverage profile inCustomizing, assignment in material master

Range of Coverage Profile: Intervals (1)

��You can enter the ranges of coverage (minimum, target and maximum ranges of coverage) for up to three periods and you can maintain different ranges of coverage in these periods. If you have only maintained a period, the range of coverage is still valid.

��The values used for the individual parameters of the dynamic safety stock, can either be checked directly after single-item planning in the planning result or in the stock/requirements list. In both evaluations, the data of the dynamic safety stock is contained in the periods total display.

��The following data is displayed: target range of coverage, minimum range of coverage, maximum range of coverage, target stock (dynamic safety stock), minimum stock.

��The parameters for calculating the dynamic safety stock are stored in a range of coverage profile in Customizing for MRP, in the IMG activity "Define range of coverage (dynamic safety stock)". You can also access this activity directly from the MRP menu.

��The range of coverage profile is assigned to the material in the material master record (MRP data screen 2 or MRP area segment).

© SAP AG LO210 8-14

SAP AG 1999

Interval 1 Interval 2 Interval 3

Reqmts Time

Time

10.12.200020.12.2000

Periods with deviating range of coverage

Maximum stock

Target stock

Minimum stock

Range of Coverage Profile: Intervals (2)

��In addition to the three intervals, for which you can define different ranges of coverage, you can set up fixed time segments with a different range of coverage. This is useful, for example, if a higher safety stock is to be planned because of definite, increased demand in a particular period.

��In the Customizing IMG activity "Define range of coverage (dynamic safety stock)", you assign the periods with a deviating range of coverage to an existing range of coverage profile. For a profile, you can set up as many deviating periods (each defined by entering the start date and finish date) with different ranges of coverage as you wish.

© SAP AG LO210 8-15

SAP AG 1999

Time

Safety time

30.03.28.03.

2 workdaysReceipts

Reqmts

Safety time: To be set inmaterial master (MRP 2) or in

the MRP area segment

Safety Time

��The safety time is a float after production (in contrast to the lead time and lead-time offset in the component data of a BOM item). It is used to avoid material shortages caused, for example, by an unreliable vendor.

��The order proposals are brought forward by the number of workdays specified in the safety time. The actual requirements date is not changed.

��You define the safety time for each plant in the material master in the MRP 2 view or for each MRP area in the MRP area segment.

© SAP AG LO210 8-16

SAP AG 1999

Dep. reqmts

ComponentsTime

Ind reqmt

Finished productTime

+

-

+

-

Safetytime

Reqmtstime

Ind reqmt

Defined using the safety time indicator in the material master (MRP 2) or inthe MRP area segment

Safety Time in Multi-Level Production

��If a safety time has been defined at finished product level and also at assembly level, these two times are added together when planning the assemblies. This may not be necessary. Therefore, you can define per material whether the safety time is valid for all requirements or only for independent requirements (such as sales orders).

��You define in the safety time indicator in the MRP 2 view of the material for each plant or for each MRP area in the MRP area segment whether the safety time

• is not to be taken into account (indicator = blank),

• is only to be taken into account for independent requirements (indicator = 1),

• is to be taken into account for all requirements (indicator = 2).

© SAP AG LO210 8-17

SAP AG 1999

Time

Rec

eipt

sR

eqm

ts

2 workdays

Safety time

4 workdays

2 workdays

12.12.2000 20.12.2000

Safety timeSafety time

Definition of period profile in Customizing,assignment in material master

Period Profile for the Safety Time

��You define the safety time in the material master on a plant basis (view "MRP 2") or per MRP area (in the MRP area segment). In addition, you can assign a safety time period profile to a material per plant (view "MRP 2"). You can use the period profile to define deviating safety times for particular periods, which are freely definable. These could, for example, be periods when a special marketing campaign is being used.

��You define safety time period profiles in the Customizing IMG activity "Define period profile for safety time/actual range of coverage". You can also access this activity directly from the MRP menu.

��You then create a period profile, to which you can then assign as many periods with different safety times as you wish.

© SAP AG LO210 8-18

SAP AG 1999

BOM Explosion

Scheduling

Procurement type

Lot-Lot-size calculationsize calculationNet RequirementsCalculation

Overview: Lot-Size Calculation

��In the net requirements calculation, the system determines the shortage quantities on the respective requirements dates. This shortage quantity must be covered by receipt elements. The system defines the amount of receipts during the planning run in the lot-size calculation.

��You can define how the lot sizes are calculated by selecting the lot-sizing procedure when maintaining the material master record (MRP data 2).

��The result of the lot-size calculation is the quantity to be produced or procured, which you can change and display in the order proposal.

© SAP AG LO210 8-19

SAP AG 1999

Staticprocedures

Staticprocedures

Lot-for-lot order quantity

Replenishment up tomaximum stock level

Fixed lot size

Periodprocedures

Periodprocedures

Daily lot size

Monthly lot size

Weekly lot size

Flexible periods according to

planning calendar

OptimumproceduresOptimum

procedures

Dynamic lot sizecreation

Least unit costprocedure

Part period procedure

Groff reorder procedure

Lot-Lot-sizing proceduressizing procedures

Overview of Lot-Sizing Procedures

Entered inMaterial master

Definition inCustomizing

��There are three different groups of procedures for calculating the lot size: static lot-sizing procedures, period lot-sizing procedures and optimum lot-sizing procedures.

��You can also enter restrictions when maintaining the material master that the system is to take into account when forming the lot sizes:

• minimum lot size (minimum procurement quantity, which the lot size is not allowed to fall below),

• maximum lot size (maximum procurement quantity for each lot),

• rounding value (the system rounds up to a multiple of the rounding value),

• rounding profile (for the creation of scaled rounding).

��You define the different lot-sizing procedures in the Customizing IMG activity "Check lot-sizing procedure". The assignment to a material takes place in the material master (MRP 1) on a plant basis or in the MRP area segment for the material per MRP area.

© SAP AG LO210 8-20

SAP AG 1999

Quantity

Time

Lot-for-lot order quantity (exact to the day)

Replenish up to maximumstock level

Fixed lot size

ReceiptsReqmts

EX

FX

HB

Static Lot-Sizing Procedures

��Future material shortages are not taken into account with the static lot-sizing procedure. In the case of a material shortage, an order proposal is created for the amount of the static lot size without checking whether there are any material shortages in the future.

��With the lot-for-lot order quantity, the system creates an order proposal for the material shortage amount. If there are several issues on one day, which lead to material shortages, the system produces only one order proposal for the total shortage quantity for this date.

��In the case of material shortages with the fixed lot size, the system creates an order proposal for the amount of the fixed lot size. If this order proposal does not cover the requirements sufficiently, the system creates as many additional order proposals for the same date as are required to cover the requirements.

��In the case of material shortage with the replenish up to maximum stock level procedure, the system creates an order proposal for the amount that is required to replenish stock to the maximum stock level. If, however, the shortage quantity for a day is larger than the maximum stock level, the lot size is then the same as the shortage quantity. A balanced stock/requirements situation takes priority over the lot-sizing procedure. The system can also order an amount that replenishes stock up to the maximum level and covers all requirements (you enter the indicator "1" in the field "Maximum stock level" when defining the lot-sizing procedure).

��You can set the lot-sizing procedure so that the last lot is always planned exactly throughout the whole planning horizon. You thus have no remaining warehouse stock, but have covered your remaining requirements with the last lot. For this, you choose the indicator "Last lot exact".

© SAP AG LO210 8-21

SAP AG 1999

Time

Period 1 Period 2 Period 3

Period length Period length Period length

Receipts

Reqmts

TB Daily lot size WB Weekly lot size

MB Monthly lot size

Period Lot-Sizing Procedures

��In the period lot-sizing procedures, the procurement of requirements quantities within a predefined period are grouped together into one lot. The period lengths can be days, weeks, months or a period with a flexible length the same as accounting periods, as well as definable periods according to the planning calendar.

��You can freely define the number of periods within which the procurement quantities are to be summarized. If the number is greater than 1, you have to enter the number in the No. of periods field of the lot-sizing procedure, in the IMG activity "Check lot-sizing procedure".

��The resulting receipt can be set to the start of the period, the end of the period or to the date of the first requirement. You achieve this by setting maintaining the "Scheduling" indicator of the lot-sizing procedure.

��If the appropriate settings in Customizing have been made to set the availability date at the beginning or end of the period, the basic dates of the planned order and the dependent requirements dates of the components are moved accordingly.

© SAP AG LO210 8-22

SAP AG 1999

Time

Period 1 Period 2 Period 3

Mon Tue Wed Thu Fri Sat Sun

18

1522

29

1623

3101724

4111825

5121926

6132027

7142128

July 2000

Wed, 3.7.2000

Wed, 10.7.2000

Wed

, 17.

7.20

00 Wed, 24.7.2000

PC Period Lot Size Acc. toPlanning Calendar

Lot Size According to Planning Calendar

��In the period lot-sizing procedures according to the planning calendar, the system groups the procurement of the requirements quantities within a period defined by the planning calendar together into one lot.

��You maintain a planning calendar (period division) in the master data of the MRP menu or in the Customizing IMG activity "Maintain planning calendar".

��You assign a planning calendar to a material on a plant basis in the material master (MRP 2) or per MRP area in the MRP area segment.

© SAP AG LO210 8-23

SAP AG 1999

Many deliveries/High order costs

Minimal stockkeeping/Minimal storage costs

Few deliveries /Low order costs

More extensive stockkeeping/Higher storage costs

Optimum Lot-Sizing Procedures

��Optimum lot-sizing procedures attempt to optimize the total costs resulting from order and storage costs.

��You enter the ordering costs in the material master (MRP 1) or, if necessary, in the MRP area segment.

��The system determines the storage costs using the storage costs indicator, which you define in the Customizing IMG activity "Check lot-sizing procedure" by entering a storage cost interest rate. You assign the storage costs indicator to the material master (if necessary, per MRP area). The formula for calculating storage costs is then:

Storage costs = Requirement x Price x Storage cost interest rate x Time in storage / 100 / 365.

��On the basis of various costing criteria, current and future requirements are grouped together into a lot in such a way as to optimize the total costs.

© SAP AG LO210 8-24

SAP AG 1999

Lot-for-lotorder quantity Monthly lot size

Reqmts previewLong-term

Exact analysisShort-term

Reqmt Receipt

Long-Term Lot Size

��The purpose of the long-term lot size is to divide the time axis for MRP into a short-term and long-term areas to enable the lot size calculation to be carried out using different lot-sizing procedures in these two areas.

��It is thus possible to receive a rough preview of the future master production schedule in the long-term area and to have a more precise analysis in the short-term area.

��You maintain the settings for the long-term lot size, just as for the other lot-sizing procedures, in Customizing for MRP, in the IMG activity "Check lot-sizing procedures". You can define the lot size that is to be used in the short-term period and the lot size that is to be used in the long-term period, as well as the end of the short-term/beginning of the long-term periods using the key of the lot-sizing procedure. The length of the short-term period is defined by entering the periodicity (for example, month, week) and the number of periods.

��If a material is planned with short-term and long-term lot size, the period of validity of both lot-sizing procedures are determined during the planning run. The planned order quantities in the short-term period are calculated with the lot size in the long-term period. The system switches to the long-term lot size on the date from which the long-term lot size is valid. In order to calculate this date, the system always rounds up the period end of a period that has begun and sets the valid-from date as the beginning of the next full period.

© SAP AG LO210 8-25

SAP AG 1999

2 months ago

11

Today

22

For 2 months, no eventsrequired a change in

planning, so not plannedduring NETCH + NETPL!

Problem

Maximum MRP period (MRP group)Possible Solution:

Planning Run Executed Regularly

��If the material has not changed in any way relevant to the planning run, the system will not include it in the net change planning run. It is possible for monthly lots with a large purchase quantity to move into the near future. In this case, the regular planning run makes sure that the material is planned in regular intervals even if no relevant changes have occurred.

��For this, you define a maximum MRP period according to which materials are also to be included in material requirements planning even if they have not experienced any changes relevant to MRP. You can thus avoid order proposals, for example, created with the long-term lot size, sliding into the short-term area because no changes relevant to MRP have occurred for the material.

��You define the maximum MRP period for each MRP group in Customizing for MRP, in the IMG activity "Define maximum MRP period". Additionally, you must set a MRP type for a material that is to be planned regularly, which contains the indicator for regular MRP.

© SAP AG LO210 8-26

SAP AG 1999

BOM Explosion

SchedulingScheduling

Procurement typeProcurement type



Overview: Scheduling

��When determining the order proposal, the system checks whether the receipt is to produced in-house or procured externally.

��Scheduling determines the start and finish dates of the procurement elements for materials produced in-house and procured externally. In order to calculate these dates, the system uses the in-house production time for parts produced in-house and the delivery time for parts procured externally. The system takes this information from the material master or the purchasing information record.

© SAP AG LO210 8-27

SAP AG 1999

External procurementStockStock transfer transfer

Procurement TypesProcurement Types

In-In-house house productionproduction

SubcontractingSubcontracting VendorProductionProduction in in

ownown plant plantProductionProduction in in anotheranother plant plant

Reservation inReservation in anotheranother plant plant ComponentsComponentsComponents

Procurement typesSpecial procurement types

Procurement Types

��The procurement type defines whether a material is produced in-house or whether it is procured externally.

��The procurement type is predefined by the material type in Customizing for the Material Master and is defined in the material master record (MRP data screen 1, procurement type field).

��If the procurement type allows both in-house production and external procurement, the system always uses in-house production.

��If you use another type of procurement for in-house production or external procurement, you control this using the special procurement type in the material master record.

��In this unit, we will concentrate on in-house production.

© SAP AG LO210 8-28

SAP AG 1999

Planned orderPlanned order

Availabilitydate

Openingdate

Order startdate

Order finishdate

Time

Goods receiptprocessing timeIn-house production timeOpening period

Scheduling marginkey (MRP 2)

Lot-size dependent: MRP 2Lot-size independent: work scheduling MRP 2

Backward Scheduling for In-House Production

��With materials planned using MRP, future requirements dates are known. Backwards scheduling is used for these materials.

��With backward scheduling, the system determines the order finish date by calculating the goods receipt processing time backwards from the requirements date. This specifies the number of workdays that are required after the receipt of the goods for checking the material and placing it in storage. You define this in the MRP data 2 screen of the material master.

��The system calculates starting from the order finish date backwards by the in-house production time to determine the order start date. The in-house production time comprises the lead time and floats. You can maintain the in-house production time either in the material master as a value independent of the lot size or as a value dependent on the lot (work scheduling).

��With the in-house production time independent of the lot, the system uses this value to determine the basic dates independent of the order quantity. With in-house production time dependent on the lot, the system determines the time depending on the order lot size. The setup time and queue time are independent of the lot.

��The opening period is then subtracted from the order start date. This calculates the opening date.

��The opening period reflects the processing time that the MRP controller requires to convert planned orders. You define the opening period as a float of the scheduling margin key in Customizing for MRP, in the IMG activity "Define floats (scheduling margin key)" for each plant and enter the scheduling margin key in the material master.

© SAP AG LO210 8-29

SAP AG 1999

Availabilitydate

Order startdate

Order finishdate

Time


In-house production time

TodayPlanned orderPlanned order

Automatic, if order start date is in thepast during backward scheduling

Forward Scheduling for In-House Production

��If during backward scheduling of materials planned using MRP, the system determines an order start date that is in the past, the system automatically switches to forward scheduling in order to receive realistic scheduling data.

��With forward scheduling, the system sets the current date as the order start date. The in-house production time is added to the current date, which in turn determines the order finish date. The goods receipt processing time is added to the order finish date in order to determine the MRP date. The material is available from this date onwards.

��There is no realistic opening date with forward scheduling since the opening date calculated is in the past.

��In Customizing for MRP, in the IMG activity "Parameters for determining the basic dates", you can define for each plant that the system is not to automatically switch to forward scheduling when determining the basic dates if the order start date is in the past. If the indicator is set, backward scheduling is always used to determine the basic dates even if the start date is in the past.

© SAP AG LO210 8-30

SAP AG 1999

In-house production time

Plnd delivery timeProcessing timefor Purchasing

Order startdate

Order finishdate

CustomizingPlant parameters

Non-vendor-specific:Material masterVendor-specific: Outlineagreement or info record

Deliverydate

Releasedate

Time

... ...

Scheduling for External Procurement

��The scheduling procedure for materials procured externally is the same as for materials produced in-house: it is merely a matter of replacing the in-house production time with the sum of the purchasing department processing time and the planned delivery time.

��You define the purchasing department processing time in Customizing as a plant parameter in workdays.

��The planned delivery time is in calendar days. It can be determined on a non-vendor-specific or vendor-specific basis.

��You maintain the non-vendor-specific planned delivery time in the material master (view "MRP 2"). You enter a vendor-specific planned delivery time in the purchasing info record or in the outline agreement. It is used in the planning run, if the indicator "Scheduling info record/agreement" in Customizing is maintained as a plant parameter or MRP group parameter and if, in the area of automatic source determination, an individual vendor can be assigned.

© SAP AG LO210 8-31

SAP AG 1999

Lead Time SchedulingLead Time Scheduling Order headerOrder header

Arbeitsvorgänge

Materialkomponenten

Fertigungshilfsmittel

Kosten Plan

Soll

Ist

2050100

� Used for production orders and routings� Based on basic dates: MRP manual

� Target dates calculated (scheduled dates)

� Basis for in-house production or operations� Capacity requirements calculated� Exact to the second

Target start dateTarget finish date

� Separate scheduling for planned orders

Order finish dateOrder start dateOpening date

Basic SchedulingBasic Scheduling

tPeriods

� Exact to the day� Basic dates calculated

� Basis for in-house production or replenishment lead time� Improved performance� No calculation of capacity requirements

Scheduling in Production Planning

��There are two methods for scheduling in production planning that are applied differently.

��If material requirements planning is carried out without lead time scheduling as shown in the upper part of the diagram, capacity requirements are not determined for the planned orders.

��Production orders are always scheduled using lead time scheduling via the operations.

��Lead time scheduling can additionally be activated to determine capacity requirements for planned orders in MRP.

��The production order always has both sets of dates (basic dates and target dates). The target dates are dates relevant to production.

��In order to ensure smooth material requirements planning it is absolutely essential to schedule the routing and to update the scheduling result in the material master.

© SAP AG LO210 8-32

SAP AG 1999

OS Order start date

OF Order finish dateOD Opening date

Time

OD

Product

OS

OF

OD

OS

OF

Raw material

OD

Assembly

OS

OF


Opening period

Reqmts dateProduct

Reqmts dateProductBackward scheduling

Scheduling ind. = 1, no capacity requirements

Order Dates for Basic Scheduling

Available

Available

Available

��Basic scheduling is always carried out in MRP. If you start the planning run with the scheduling indicator set to "1" (basic dates will be determined for planned orders), only the basic scheduling is performed (i.e., lead time scheduling is not performed).

��The planning run determines the dependent requirements for the components using the BOM explosion.

��With basic scheduling, the dependent requirements date is derived from the order start date of the planned order that caused the requirements.

��Assuming the dependent requirements date is the availability date, the system determines the basic order dates of the components by means of backward scheduling using in-house production time or planned delivery time.

��With basic scheduling, no capacity requirements are calculated or dispatched for the order.

© SAP AG LO210 8-33

SAP AG 1999

OS OF

Orderfinish date

Production finish date

Production finish date

Productionstart date

Productionstart date

Order start date

Operations(from routing)Operations

(from routing)

Float before productionScheduling margin key

Float after productionScheduling margin

key

10 3020

Planned order

OS OF

11

22

Scheduling ind. = 2, capacity requirements are calculated

Lead Time Scheduling

��You can set lead time scheduling for the planning run by using the scheduling indicator "2" (lead time scheduling and capacity planning).

��During the planning run with the scheduling indicator 2, the order start and order finish date are determined for each basic scheduling. This is then followed by lead time scheduling.

��In lead time scheduling, the precise production times (i.e., production start and finish dates) are defined for material produced in-house and at the same time the capacity requirements are created. The materials staging date for the components is also determined.

��Lead time scheduling is carried out using the times from the routing. This takes place as backward or forward scheduling according to the setting in the Customizing IMG activity "Define scheduling parameters for planned orders". The following times are taken into account:

Floats (float before and after production) that are assigned to the material using the scheduling margin key,

• the individual times from the routing: queue time, setup time, labor and machine time.

��In backward scheduling, the system first calculates back from the order finish date to determine the float after production, which in turn calculates the production finish date. The individual operations of the routing are scheduled backward starting from the production finish date. The starting date of the first operation becomes the production start date.

��With lead time scheduling, the capacity requirements for the order are calculated and scheduled in a second step.

© SAP AG LO210 8-34

SAP AG 1999

OS OF

10 20 30 40 50

Float beforeproduction

Lead time schedulingusing routing

In-house production time shorter

In-house prod. time greater than scheduling in routing

In-house production time from material master

Float afterproduction

Requirements date

CalculationCalculation of of order dates order dates

CalculationCalculation of of planned dates planned dates

Scheduling: Significance of In-house ProductionTime

Wrong in-house production time inmaterial master?

��You maintain the in-house production time in the material master.

��To determine basic dates during the planning run, it is important that the in-house production time in the material master is consistent with the lead time scheduling using the routing. The system can automatically transfer the scheduling result for the routing to the material master (details for this are covered in the basic data course).

��If the production start date of the planned order is before the order start date, the system can determine new production dates using reduction. You must define the reduction in two places:

• To reduce the float before and after production, you have to define the reduction for the plant, the planned order type and if necessary for a production scheduler in Customizing for MRP.

• To reduce the times in the operation, you have to assign a reduction strategy to the operation in the routing.

��In the Customizing IMG activity "Define scheduling parameters for planned orders", in the segment "Scheduling control for detailed scheduling", in the "Adjust dates" field, you can define whether and how the basic dates are to be adjusted to the production dates (dates after schedule) and how the dependent requirements dates are to be set for one or all order types and production schedulers.

��If there are scheduling problems, the basis for calculating basic dates switches from backward to forward scheduling. If, on the basis of these basic dates, detailed scheduling is then backward and the times in the routing are shorter than in the material master, the calculated production start date lies further in the future than necessary. To avoid this, Customizing is overridden. the system schedules forward and the order finish date is adjusted (it falls on the requirements date at the earliest). The proposed order start date remains the same.

© SAP AG LO210 8-35

SAP AG 1999

Time

OS OFOD

10 3020

PS PF

10 3020

10 3020

OS Order start date

OF Order finish date

OD Opening date Opening period


PS Production start date

PF Production finish date

Assembly 1

Product

Assembly 2

Backward scheduling

Order Dates for Lead Time Scheduling

Assembly 2in routingassignedoperation 30

��With lead time scheduling using the routing, the dependent requirements dates can be placed on the dates of the assigned operations. This enables the staging of materials to take place with relation to the operation.

��The standard system assumes that the staging of materials in accordance with the component assignment of the BOM to the routing. The dependent requirements date of the BOM components is placed on the production start date of the operations to which they are assigned.

��If BOM components are assigned to the first operation of the routing due to default settings or component assignment maintenance, their dependent requirements date is placed on the production start date of the first operation. With pure basic scheduling, their dependent requirements date is the order start date of the planned order that caused the requirements.

��In Customizing for MRP, in the IMG activity "Define scheduling parameters for planned orders", you can define that the dependent requirements date is also to be placed on the order start date with lead time scheduling (for example, if capacity requirements have to be created using lead time scheduling).

© SAP AG LO210 8-36

SAP AG 1999

Finished product

Component 1

Component 2

Determining components

Lead-time offsetLead time

+- Time

Order startdate Planned order

Dep. reqmts -Lead-time offsetDep. reqmts -

Lead-time offsetDep. reqmts -Lead time

Dep. reqmts -Lead time

BOM maintenance

Changing Dependent Requirement Dates

Note: the lead time and lead-time offset are not taken intoaccount in the lead time scheduling!

Dependent reqmts w/o lead time/lead-time offset

��In the BOM explosion, the required components or assemblies are determined for the corresponding BOM.

��The dependent requirement date of a particular component can be moved using lead time or lead-time offset from the BOM. You maintain the lead time and lead-time offset in the basic data screen of the component item. The lead time is entered as negative lead-time offset.

��The lead time and lead-time offset are not taken into account in the lead time scheduling. They are used for the simulation of component assignment in the routing during basic date scheduling. In contrast to the safety time, they are not floats after production.

© SAP AG LO210 8-37

SAP AG 1999

Scheduling

Procurement type



BOM ExplosionBOM Explosion

Overview: BOM Explosion

��After the planning run has carried out the net requirements calculation, the lot size calculation and the scheduling for a material, it determines the required quantities for assemblies produced in-house and the materials staging date for the required components and assemblies.

��The system determines and explodes the valid BOM for every new order proposal of an assembly.

��In the case of existing order proposals, the BOM is only re-exploded if the quantity or the date of the order proposal or the BOM structure have changed. If any of these have changes, the system creates a planning file entry in the planning file with the "new BOM explosion" indicator. If, however, you would like a new BOM explosion during the planning run, you can control this in the initial screen of the planning run with the planning mode.

��You can view the detailed data for the BOM explosion in the planned order on the screen "Master data".

© SAP AG LO210 8-38

SAP AG 1999

Usage quantity/dates

Target

Selection of BOM usage

Selection of Alternative BOM

Change status ofalternative BOM

Component selection

Dependent reqmtsquantities and dates

Usage

Lot size

Explosion date

Items relevant to production

BOM Explosion

��During the planning run, the system explodes the BOM for every new planned order of an assembly. The following steps are carried out to determine the valid BOM:

• In the planning run, the system firstly checks which BOM usage has the highest priority. It then checks if this usage has a valid BOM on the explosion date. If this is not the case, the system creates an exception message.

• If there are different BOM alternatives, the system checks which alternative corresponds to the prerequisites of the alternative selection.

• If necessary, the change status on the explosion date is determined for the selected BOM alternative.

• For the valid BOM, the BOM items relevant to production are copied to the planned order. The dependent requirements quantity is determined by the quantity factor of the BOM item.

• The dependent requirements date is determined by the scheduling for the higher-level assembly: it is determined either from the order start date or from the production start dates for the operations of the planned order for the higher-level assembly.

��The BOM must be maintained in the appropriate plant in order to carry out the planning run.

��Furthermore, the validity of a BOM is determined by the BOM status. To use the BOM in MRP, you must have set the BOM status in the BOM header to active for MRP.

© SAP AG LO210 8-39

SAP AG 1999

Planned orderPriority

12

Usage

ProductionEngineering

BOM Selection ID

Production BOM

CostingBOM

Engineering BOM

Used if no valid productionBOM exists

Selection of BOM usage

��With the BOM usage, it is possible to manage separate BOMs for the different business areas (Engineering/Design, Production, Costing, and so on). The main difference of the BOM structures are due to the different tasks of the various areas that process different item data.

��You have to define which BOM usage is to be used in the planning run. You determine the priority of the usage for the planning run via the selection ID in Customizing for MRP, in the IMG activity "Define BOM and routing selection" (Note: the routing selection is not defined in this activity!) You can define a sequence for the selection of a valid BOM via the "usage" criterion.

��If the system does not find a valid BOM in the selected usage, it selects the usage with the next lowest priority and carries out the check for valid BOMs.

��You define the order of priority for the BOM usage, that is, the selection ID, in Customizing for Basic Data, in the IMG activity "Define order of priority for BOM usages".

© SAP AG LO210 8-40

SAP AG 1999

Order quantity(Lot size)

Order quantity(Lot size)

Explosion dateExplosion date

Production versionProduction version

Alternativeselectionindicator

in

materialmaster

2, 3

1

for multiple BOMs

Selection of Alternative BOM

��In the case of multiple BOMs, you have to define which alternative BOM is to be selected during the planning run.

��You can define which procedure is to be used to select the BOM for an assembly in the material master record, in the "Selection method" field of the MRP data (MRP 4).

��Three options are available:

• BOM selection by order quantity (lot size): the order quantity is determined according to the selected lot-sizing procedure and the BOM is selected on the basis of the order quantity.

• BOM selection by explosion date: the explosion date is the date with which the valid BOM (or the valid routing) is determined for a planned order. In Customizing, you can define whether the order start date, order finish date or fixed key date of the BOM explosion number is selected.

• BOM selection by production version: the production version determines the different production methods that can be used to produce a material. The production version can contain a routing and a BOM. The alternative BOM to be selected, the BOM usage, the lot-size range and the effectivity period of a BOM can be defined for the alternative selection. By choosing the alternative selection indicator 3, the selection is always by production version; if a valid BOM cannot be determined, an exception message is generated. With the indicator 2 , the selection is by production version when this is possible; if no valid BOM is determined by the version, then BOM selection is by order quantity.

© SAP AG LO210 8-41

SAP AG 1999

Alternative 1

Alternative 2

Lot-size range 0 -10 pieces

Lot-size range 11 - 10,000 pieces

A B

A C

Multiple BOM

Small lot

Large lot

<= 10 pieces

> 10 pieces

(Selection method indicator = blank)

Selection by Order Quantity (Lot Size)

Plannedorder

��During the planing run, the system checks whether a valid alternative BOM exists for the order quantity (lot size). The lot-size range of an alternative must be defined in the BOM.

��The valid alternative is exploded and dependent requirements are created for the corresponding components.

��If the system does not find a valid or suitable alternative for the order quantity, it creates an exception message.

© SAP AG LO210 8-42

SAP AG 1999

Order start dateof a

planned order

BOM explosion number

(gross date)

Order finish dateof a

planned order

BOM explosion using

Planned order

Customizing

Selection by Explosion Date

��In Customizing for MRP, in the IMG activity "Define the BOM explosion control", you can define the explosion date for the BOM and routings selection at plant or MRP group level.

��The explosion date determines which BOM (or routing) is to be used for the explosion in the planning run and therefore for the determination of dependent requirements. This means, the BOM that is valid on the explosion date is selected and dependent requirements are created for the components entered there.

��The following options are available for the explosion date:

• Order start date,

• Order finish date,

• BOM explosion date (gross date).

© SAP AG LO210 8-43

SAP AG 1999

Time

AlternativeBOM 1

AlternativeBOM 2

AlternativeBOM 3

Valid from(relevant to

planning from)


planning from)


planning from)

Order 1 Order 2

Order startOrder start

(Selection method indicator = 1)

Selection by Order Start

��For BOM explosion according to a date (selection method indicator = 1), periods specific to the assembly are defined, within which certain alternative BOMs are to be used. The system then checks the defined period for the assembly during the planning run. The system checks in which period the explosion date lies, and selects the corresponding alternative BOM. The default setting is that the order start date is set as the BOM explosion date. The suitable alternative is exploded and dependent requirements are created for the corresponding components.

��To define the alternative BOM for each period, you choose "BOM via dates" in the master data in the MRP menu. To define the alternative selection via dates, you enter the following parameters in the table: the material number, the plant, the BOM usage and the valid-from date, from which the alternative BOM is to be used in the planning run, and the BOM alternative.

��In order to assign several alternative BOMs with different effectivity periods to a material, you define the beginning of the effectivity period for each alternative in the "Valid from" field. The beginning of the effectivity period of the following alternative on the time axis represents the end of the effectivity period of the previous alternative.

��The system selects the BOM and explodes it as soon as the basic dates have been determined in the scheduling, that is, in the case of lead time scheduling even before the scheduling is carried out via the routing. If the basic date (for example, with dates over schedule) is to be adjusted to the production date, the BOM is still exploded on the original basic date. The BOM explosion date and the final basic date are different in this special case.

© SAP AG LO210 8-44

SAP AG 1999

Time

AlternativeBOM 1

AlternativeBOM 2

AlternativeBOM 3


planning from)


planning from)


planning from)

Order 1 Order 2

Order finishOrder finish

Explosion Date Using the Order Finish Date

��In Customizing, you can define that the BOM explosion date is to be set at the order finish date of the planned order.

��The system selects and explodes the BOM as soon as the order finish date has been determined in the scheduling. If, in the case of lead time scheduling, the order start date is to be adjusted to the production dates, this does not change the order finish date, that is, BOM explosion date and the final basic date do not differ in this case.

��If the system does not find a valid or suitable alternative, the BOM with the suitable lot size is used.

© SAP AG LO210 8-45

SAP AG 1999

BOM explosion no. xxx


Order for assembly 1BOM explosion no. xxx

Order for assembly 2

BOMBOM explosion no explosion no.. xxx xxxAlternative finished products

1.2.2000

Alternatives for assembly 2

Alternatives for assembly 1

Order for product

Explosion Using the BOM Explosion Number

Gross date

��If the order start date of the planned order is set as the explosion date for the BOM explosion, there could be large intervals between the explosion dates of the individual BOM structures under certain circumstances, in the case of multiple BOMs. If BOMs (alternatives) change during the course of time due to different requirements, the situation could occur when an assembly used more than once is produced with different BOM compositions.

��If you would like to ensure for a particular production unit that the whole BOM structure is always exploded with the same explosion date, you can assign a BOM explosion number to the planned independent requirements / the sales order or to a planned order.

��Using the BOM explosion number, you can define a standard explosion date for all BOM levels. This so-called gross date is contained in the BOM explosion number. The BOM is exploded for all level with this gross date.

��You maintain a BOM explosion number in the MRP master data. You can define the gross date for an alphanumeric BOM explosion number.

��The BOM explosion number can be entered and pre-defined in the planned order (header screen), in the planned independent requirement (Schedule lines screen, Settings -> BOM explosion number), in customer requirements or in the sales order (item screen, Sales A).

© SAP AG LO210 8-46

SAP AG 1999

MaterialMaterialmastermaster



Describes production procedure

Routing

BOM Work center(Line

production)

(Selection method indicator = 2 or 3)

Selection by Production Version

��There may be different BOMs according to which a material is produced. The production of a material can also be described in various routings. The material can be produced on different production lines (work centers). The data on the different methods according with which a material can be produced, can be combined in the production version and assigned as such to the material.

��The production version defines the following data:

• alternative BOMs and BOM usages for the BOM explosion,

• task list type, task list group and group counter of the routing. For repetitive manufacturing, the routing to be used is to be entered in the "rate-based planning" line.

��If the value "2" has been entered for the selection method indicator in the material master, the BOM is selected by production version, as long as valid data is available. If the indicator "3" has been entered, the selection is always by production version, meaning that missing data is not supplemented. This could result in exception messages for instance if the production version does not indicate which BOM is to be selected.

© SAP AG LO210 8-47

SAP AG 1999

Change status 1 Change status 2 Change status 3

Technical change

Order startOrder start

Order 2Time

Time

Technical change

Same alternative BOM

Order 1

Defining the Change Status Using the Order StartDate

Explosiondate

Explosiondate

��The BOM (or alternative BOM) can have different effectivity periods on the time axis due to changes that have been made. The BOM can have different compositions (statuses) at different times.

��Every change status has a valid-from date and a valid-to date, defined by the valid-from date of the next change.

��The BOM status at the time of the explosion date is exploded. Whether this is the order start or finish date, or the gross date of the BOM explosion number, depend on the settings made in Customizing (Customizing IMG activity "Define BOM explosion control".

© SAP AG LO210 8-48

SAP AG 1999

Explosiondate

Change status 1 Change status 2 Change status 3

Order 1

Explosiondate

Order finishOrder finish

Order 2

Technical change

Technical change

Time

Time

Same alternative BOM

Defining Change Status Using the Order FinishDate

© SAP AG LO210 8-49

SAP AG 1999



Order for assembly 1BOM explosion no. xxx

Order for assembly 2

BOMBOM explosion no explosion no.. xxx xxxChange status for product

Change status for assembly 2

Change status for assembly 1

Order for product

1.2.2000

Defining Change Status Using BOM ExplosionNumbers

Gross date

��By entering a BOM explosion number, you can explicitly define an explosion date (gross date) for a BOM structure.

© SAP AG LO210 8-50

SAP AG 1999

Production versionExplosion date

Lot size

BOM explosion numberOrder finishOrder start

‘1’‘2,3’

Customizing for BOMexplosion

BOM explosion numberOrder finishOrder start

Customizing for BOMexplosion

BOM usage by selection ID

Selection method indicator

Alternative BOM selected

Change status of alternativeBOM determined

Summary: BOM Selection

‘_’

��The BOM selection in the MRP run has 3 steps:

1. The BOM usage is defined by the BOM selection ID that you assign on a plant basis in the Customizing IMG activity "Define BOM and routing selection".

2. The alternative BOM is determined by the setting for the BOM selection indicator in the material master. If the selection is to be by explosion date, you should enter in the Customizing IMG activity "Define BOM explosion control" which date is to be used.

3. The change status of the BOM is then determined using the explosion date. The same Customizing setting as in step 2 is the basis for the choice of date.

© SAP AG LO210 8-51

SAP AG 1999

Selection ID detailed planning

in Customizing

Task list typeTask list usageTask list status

10 20 30 40 50

RoutingPlanned order

By selectedproduction version

Alternativeselectionindicator

in

materialmaster

= 2,3

= 0,1

Routing Selection

��If you start the planning run with the scheduling indicator (lead time scheduling and capacity planning), the system selects the routing for each planned order. The system calculates the dates, the staging of materials and the capacity requirements using the routing.

��The "selection method" indicator in the material master is also crucial for selecting the routing:

If it has been set to value 2 or 3 (selection by production version), the routing will also be selected according to the selected production version.

Otherwise, the selection ID of the routing selection, which is defined in Customizing for MRP, in the IMG activity "Define scheduling parameters for planned orders", decides which routing is selected.

��You define the selection ID of the routing selection in Customizing for Production basic data.

��The explosion date of the BOM and the routing are identical.

��If the planned order is managed using Engineering Change Management, the system uses the routing with the change status at the time of the BOM explosion date.

��The task list group and the group counter for the routing as well as the corresponding scheduling and capacity requirements can be seen on the screen "Detailed scheduling" for the order.

© SAP AG LO210 8-52

SAP AG 1999

z The steps of material requirements planning consist ofnet requirements calculation, lot-size calculation,determining the procurement type, scheduling and theBOM explosion.

z The net requirements calculation determines theavailable quantity for planning.

z The lot-sizing procedures and the procurements typeare assigned in the material master.

z Basic scheduling or the lead time scheduling are twopossible scheduling types in MRP.

Technical Information on How the Planning RunWorks: Summary (1)

© SAP AG LO210 8-53

SAP AG 1999

z The BOM selection is influenced by the selection ID,the alternative selection indicator and the selection ofthe explosion date.

Technical Information on How the Planning RunWorks: Summary (2)

© SAP AG LO210 8-55

Exercises

Unit: Technical Information on How the Planning Run Works Topic: Net Requirements Calculation and Safety Stock


• describe the effect of safety stock on the net requirements calculation.

The material T-T5## is a low value material for which, however, there have been bottlenecks in the past that caused delays in the production of the finished product T-F2##. You therefore plan a large safety stock for this material.

1-1 Create the following active planned independent requirements in planned independent requirements version 00 for material T-F2## in plant 1000. Use the planning period M (monthly) (it improves the overview if you create these planned independent requirements in the schedule lines screen):

Current month +3

Current month +4

Current month +5

Current month +6

Current month + 7

90 110 150 90 75

Save the requirements.

1-1-1 Access the stock/requirements list for material T-F2##. Does the system display the requirements that you saved? ________

1-1-2 What is the available quantity at the end of the list? ________

1-1-3 What caused this shortage situation?

____________________________________________________

1-2 Call up the stock/requirements list for material T-T5## in plant 1000.

1-2-1 Make a note of the available plant stock for planning on today’s date: ___________________

1-2-1 How large is the available stock at the end of the list? _______

© SAP AG LO210 8-56

1-3 In the material master for material T-T5## in plant 1000, enter the value 950 (pieces) as safety stock in the MRP 2 view (you can access the transaction Change material directly from the current stock/requirements list). Save this change and refresh the current stock/requirements list.

1-3-1 Make a note of the available plant stock for planning on today’s date: ___________________

1-3-2 How large is the available stock at the end of the list? _______

1-3-3 Give a reason for the difference between this and the result that you had above?

_____________________________________________________

1-4 Execute a multi-level MRP run for material T-F2## in plant 1000 using the following control parameters:


Create pur.req. 2


Create MRP list 1

Planning mode 3

Scheduling 1





1-4-1 After the MRP run is complete, analyze the result for the material T-F2## in the MRP list. What is the available quantity at the end of the list? ________________

1-4-2 Were new procurement elements (planned orders) created for the material T-F2## (note the corresponding exception message)? _______________________

© SAP AG LO210 8-57

1-4-3 You had created new planned independent requirements for the material T-F2## that were planned in this planning run. Was a procurement element for the corresponding amount created for each of these requirements? _________________

1-5 View the MRP list for slug T-T5##.

1-5-1 What is the available quantity at the end of the list? _______

1-5-2 Were new procurement elements created?: _______________

1-5-3 You have determined above that after defining the safety stock in the material master of the material T-T5##, this safety stock appears as a new requirement element in the list. Was one planned order (for 950 pieces) created for this “requirement element”? ___________________

Give a reason for the result:

______________________________________________________

© SAP AG LO210 8-58

Exercises

Unit: Technical Information on How the Planning Run Works Topic: Scheduling


• describe the functions of scheduling,

• monitor the order dates in multi-level production.

Using material T-F2## in plant 1000, the project team investigates the scheduling process in multi-level production planning.

2-1 Call up the stock/requirements list for material T-F2## in plant 1000. Select a planned order that has not been firmed and without an exception message. Choose Order report and choose Open all lines in the screen that then appears.

2-1-1 From the order report display, copy the order start date and the order finish date for the planned orders/purchase requisitions into the following table. In the order report, select the date for the MRP element and choose Display element.

T-F2## Basic dates Production dates

Start: ________________ Start: ________________

Finish: ________________ Finish: ________________

Goods receipt processing time:

T-B4## Basic dates Production dates

Start: ________________ Start: ________________

Finish: ________________ Finish: ________________


T-T5## Basic dates Production dates

Start: ________________ Start: ________________

Finish: ________________ Finish: ________________


2-1-2 Which scheduling situation can be seen?

___________________________________________________

© SAP AG LO210 8-59

2-2 Execute a multi-level MRP run for material T-F2## in plant 1000 using the following control parameters:


Create pur.req. 2


Create MRP list 1

Planning mode 3

Scheduling 2





2-3 Access the stock/requirements list for material T-F2## in plant 1000 again. Select a planned order that has not been firmed and without an exception message. Choose Order report and Open all lines. From the order report display, view the dates for the planned orders/purchase requisitions. In the order report, select the date for each MRP element and choose Display element.

2-3-1 Has detailed scheduling data been created for the planned orders (do production dates exist)? ___________________

2-3-2 On the tab page Detailed scheduling, view the result of the detailed scheduling in greater detail. Have dates for the individual operations been created and transferred into the planned order? _________________

2-3-3 Were capacity requirements for the respective work centers created for the individual operations? ______________

© SAP AG LO210 8-60

2-3-4 Copy the basic dates, the production dates and the float before production that are valid for the individual planned orders into the following table. You define the float before production using the scheduling margin key. You determine the values by accessing the F4 help in the field Scheduling margin key in order to display the float before production for the corresponding scheduling margin key.

T-F2##

Basic dates Production dates Fl. before prod.

Start: ________________ Start: ________________ ________

Finish: ________________ Finish: ________________


T-B4##


Start: ________________ Start: _______________ _________

Finish: ________________ Finish: ________________


T-T5##


Start: ________________ Start: ________________ _________

Finish: ________________ Finish: ________________


2-3-5 How have the scheduling results changed in comparison to the previous planning run with scheduling indicator 1?

_____________________________________________________

2-3-6 In the above exercises, you were asked to analyze a planned order that had not been firmed. Would there have been any difference in the planning results for a firm planned order? Why (not)?

_____________________________________________________

© SAP AG LO210 8-61

Exercises

Unit: Technical Information on How the Planning Run Works Topic: Routing and BOM Selection


• analyze the selection of routings and BOMs in the MRP run and make the appropriate settings in the system.

Using material T-F2## in plant 1000, the project team investigates the technical processes in selecting routings and BOMs during the planning run.

3-1 Call up the current stock/requirements list for material T-F2## in plant 1000 and select at least three non-firmed planned orders with different quantities of goods received. On the tab page Master data for the respective planned order, analyze which routing has been selected.

3-1-1 Have the production dates and the corresponding capacity requirements been created on the basis of the same routing for all the planned orders? _____________

If not, what is the difference between the different routings? __________________

If you have found that different routings have been determined, give a reason for your result:

__________________________________________________

3-1-2 Optional: Which settings in the system have caused these routings to be selected? Individually:

What value does the selection method indicator in the material master for material T-F2## have? ______________

What Selection ID for detailed planning is set in Customizing for the existing planned orders (you can find this selection ID in the Customizing IMG activity Define scheduling parameters for planned orders)? __________________

© SAP AG LO210 8-62

3-2 Evaluate the BOM explosion in the planned orders:

3-2-1 Call up the stock/requirements list for material T-F2## in plant 1000 and analyze at least three planned orders with different quantities of goods received. On the tap page Master data for the respective planned order, find out which BOM was exploded on which date:

1. Bill of material: ___________ Date: __________



3-2-2 Which planned order basic date was the BOM exploded on? _________________________

3-2-3 According to which criteria was each alternative BOM chosen? ________________________________________

Which indicator causes this? ______________

3-3 BOM selection using explosion date:

3-3-1 Enter the value 1 (selection by explosion date) in the Selection method field in the MRP 4 view of the material master for material T-F2## in plant 1000. Save the material master.

3-3-2 Maintain the effectivity period for the alternative BOMs in MRP. To do this, access the transaction BOM by date in the master data for MRP. Choose New entries and enter the following data:

Material Plant BOM usage

Valid from Alt. BOM

T-F2## 1000 1 Today’s date 2

T-F2## 1000 1 Today + 3 months 1

Save your entries.

© SAP AG LO210 8-63

3-3-3 Start a multi-level MRP run for material T-F2## in plant 1000 using the following control parameters:


Create pur.req. 2


Create MRP list 1

Planning mode 3

Scheduling 1





3-3-4 Access the stock/requirements list for material T-F2## in plant 1000. In the Master data for the planned orders, analyze the BOM selection and fill in the table below:

Number Order start date

Explosion date

BOM usage

Alt. BOM

Order quantity

Which criterion controls the BOM explosion?

____________________________________________________

© SAP AG LO210 8-64

Solutions

Unit: Technical Information on How the Planning Run Works Topic: Net Requirements Calculation and Safety Stock

1-1 Menu path: Logistics o Production o Production Planning o Demand Management o Planned Independent Requirements o Create

1-1-1 Requirements displayed: Yes

1-1-2 Available quantity at end of list: 515 pc

1-1-3 Reason: Only the requirements were entered and an MRP run would not have already created corresponding procurement elements.

1-2

1-2-1 Available plant stock for planning today: 1000 pc

1-2-1 Available stock at end of list: 0 pc

1-3

1-3-1 Available plant stock for planning today: 50 pc

1-3-2 Available stock at end of list: Minus 950 pieces

1-3-3 Explanation: The newly created safety stock flows into the net requirements calculation as a requirement. It is replenished in the next MRP run.



1-4-2 New procurement elements: Yes

1-4-3 A procurement element for each requirement: Yes

© SAP AG LO210 8-65

1-5


1-5-2 New procurement elements: Yes

1-5-3 One planned order for safety stock: No

Explanation: The safety stock causes a reduction in the available plant stock from 1000 pieces to 50 pieces. The total net requirements calculation is then executed using this new available quantity from today.

© SAP AG LO210 8-66

Unit: Technical Information on How the Planning Run Works Topic: Scheduling

2-1

2-1-1

T-F2## Basic dates Production dates

Start: Varies Start: Empty

Finish: Varies Finish: Empty

Goods receipt processing time: 0 Days

T-B4## Basic dates Production dates

Start: Varies Start: Empty

Finish: Varies Finish: Empty

Goods receipt processing time: 1 day

T-T5## Basic dates Production dates

Start: Varies Start: Not available

Finish: Varies Finish: Not available


2-1-2 Explanation: The requirements dates for the assemblies and components are covered with the order start dates of the superior materials. The order start dates fall on the date that you get by deducting the goods receipt processing time from the requirements dates of a material.

2-3

2-3-1 Detailed scheduling data created: Yes, with the exception of material T-T5## that is procured externally.

2-3-2 Dates for the individual operations: Yes

2-3-3 Capacity requirements: Yes

© SAP AG LO210 8-67

2-3-4

T-F2##


Start: Varies Start: Varies 2 days

Finish: Varies Finish: Varies

Goods receipt processing time: 0 Days

T-B4##


Start: Varies Start: Varies 2 days

Finish: Varies Finish: Varies


T-T5##


Start: Varies Start: Not available

Finish: Varies Finish: Not available


2-3-5 Change to scheduling results: As well as basic dates for planned orders for materials produced in-house, the system also created production dates. The dependent requirements have now been scheduled for the production start date. Capacity requirements were also created for these planned orders.

2-3-6 Different from firm planned order: No. The firming protects the date and the quantity of a planned order from any automatic changes made by the system. Lead time scheduling is, however, also executed for firm planned orders.

© SAP AG LO210 8-68

Unit: Technical Information on How the Planning Run Works Topic: Routing and BOM Selection

3-1

3-1-1 Same routing: No

Difference in routings: The task list group of the routings is the same, but they have a different group counter.

Reason: The routings for material T-F2## in plant 1000 are valid in different lot size intervals. The planned orders fall in these different intervals.

3-1-2 Selection method indicator in the material master: Blank

Selection ID for the detailed planning in Customizing: (Menu path: Customizing-Production o Material Requirements o Planning o Scheduling and Capacity Parameters o Define Scheduling Parameters for Planned Orders) The selection ID (detailed planning) 01 is valid for planned orders with the order type LA for the production scheduler 0## in plant 1000. By using this ID, the highest priority is to find a routing with usage 1 (production) and status 4 (released general).

3-2

3-2-1 BOM and date: Varies

3-2-2 Basic date: The BOMs were exploded on the respective order start date.

3-2-3 Criterion for the alternative BOM selection: Lot sizes of planned order.

Reason: The explosion by lot size is controlled by the Selection method field in the view MRP 4 of the material master. This field contains the value “blank” (selection by order quantity).

© SAP AG LO210 8-69

3-3

3-3-1

3-3-2 Menu path: Logistics o Production o MRP o Master Data o BOM By Date

3-3-3

3-3-4 Data for BOM selection: Varies

Criterion for BOM explosion: The alternative BOM selection took place by explosion date. The alternative 2 was exploded in the first 3 months and the alternative 1 was selected in the following months.

© SAP AG LO210 9-1

SAP AG 1999

MRP Areas

Contents:

z Plant organization with MRP areas

z MRP with MRP areas

z Storage location MRP areas

© SAP AG LO210 9-2

SAP AG 1999

MRP Areas: Unit Objectives


z describe plant organization with MRP areas,z describe the effects of using MRP areas on MRP,z explain the functions of storage location MRP

areas and subcontractor MRP areas and makethe related settings.

© SAP AG LO210 9-3

SAP AG 1999


11 Introduction


MRP Areas99


Overview22


88Technical Information onMRP


44 MRP Run

66 MPS

© SAP AG LO210 9-4

SAP AG 1999

MRP Without MRP Areas

Material RequirmentsPlanning (MRP)

Planned ordersPurchase requisitionsSchedule lines

Storage location0001

Storage location0004 ...

Subcontractorrequirements

Other reqmts (such as spare

parts)

Dep. reqmtsProduction line 1





PlantPlant

In-house production External procurement

��Without MRP areas, MRP takes place at plant level. This means that all requirements for a material (dependent requirements, planned independent requirements, customer requirements and so on) for all storage locations, which are not planned separately or are not excluded from the planning, flow into the MRP together. Depending on the procurement type of the material, in-house production or external procurement is used to satisfy the requirements.

��The settings for MRP in the material master of the material are valid for the whole plant (with the exception of storage locations that are planned separately or are excluded from the planning).

© SAP AG LO210 9-5

SAP AG 1999

Planning with MRP Areas


Storage location0004 ...

SubcontractorRequirements

Other reqmts (such as spare

parts)






MRP MRP MRPMRP

In-house production External procurement

��The introduction of MRP areas enables a greater differentiation in MRP. Planning takes place separately for each MRP area. It is possible, for example, to plan the requirements for different production lines separately.

��In storage location MRP areas, one or more storage locations are grouped together to form an organizational unit. In MRP, this unit is planned separately from the rest of the plant and the other MRP areas. The assignment of a receipt (procurement) or issue element (requirement) to a storage location MRP area is made using the storage location of the receipt or issue elements. You may assign a storage location to just one MRP area.

��You can also plan the provision of components for an individual subcontractor separately using an MRP area. To do this, you define an MRP area for a subcontractor (vendor) and assign the corresponding components to be provided to this MRP area.

��The planning result in each MRP area is evaluated separately with the individual MRP list or stock/requirements list. When using collective display, you can select materials for one MRP area or for all MRP areas in a plant.

��You can assign different MRP parameters to a material for each MRP area, so that planning can be adapted to suit the particular needs in each individual MRP area.

© SAP AG LO210 9-6

SAP AG 1999

Plant Organization with MRP Areas (1)

Plant 1000

0002

00030004

Conversion

Plant MRP area 1000

0001

Storagelocations

MRP area 10003

0004 ...

MRP area 10004

Storage locations Subcontractor X

MRP area types:Plant MRP area "1"

Storage location MRP area"2"Subcontractor MRP area "3"

MRP area 10002

0003Storage location

0001 0002Storage locations

MRP area 10001

��MRP areas enable you to plan materials, which are required in different production areas, storage locations or subcontractors, separately from each other. You activate MRP with MRP areas at client level and it is thereby valid for all plants belonging to this client. This cannot be reversed.

��The introduction of MRP areas can be useful even if you do not want to plan with MRP areas. In particular, if you need to plan many plants, the introduction of MRP areas enables an improvement in system performance because the planning file can be accessed more precisely.

��There are three types of MRP area:

1. Plant MRP areas (mandatory), which are created automatically when planning with MRP areas is activated. The number of the MRP area corresponds with the plant number. If you do not define any further MRP areas, the plant MRP area includes the whole plant.

2. Storage location MRP areas, which are defined by the storage locations that are assigned to them.

3. Subcontractor MRP areas that serve for planning the requirement of material provided for a subcontractor and that are defined by assigning the subcontractor. A subcontractor must be assigned to just one subcontractor MRP area and vice versa.

© SAP AG LO210 9-7

SAP AG 1999

Plant Organization with MRP Areas (2)

PlantPlant

Storage locationStorage location

Plant views in material masterfor a material

Plant views in material masterfor a material

MRP area segments

Material A

MRP area10001

MRP area10003

1000

0001

Dep. reqmtsProduction line

Spare part rqmt

0002 0004

Plant MRParea 1000

��A material is assigned to an MRP area by creating an MRP area segment in the material master (in the view MRP 1). No actual changes are made to MRP until the materials have been assigned to MRP areas. As long as no MRP area segment has been created, the system continues to plan the material in a plant MRP area.

��You can set parameters for controlling MRP for different MRP areas in the respective MRP area segments.

��A material can be assigned to several MRP areas and is also assigned to the plant MRP area.

��The assignment of a receipt or issue element to the individual storage location MRP areas is made using the receiving or issue storage location that the system determined in the planning run. If no assignment to a storage location MRP area has been made using the storage location, the element is assigned to the plant MRP area.

��When creating a planned independent requirement, you enter the MRP area. Sales orders are assigned to the MRP areas by entering the issue storage location in the shipping screen of the item details. In the case of procurement elements created automatically in MRP, the receiving storage location determines the storage location MRP area.

��Schedule lines are assigned to an MRP area according to the receiving storage location of the scheduling agreement. The source of supply determination in MRP takes place according to the usual logic (source list, quota arrangement) with the proviso that you find a valid scheduling agreement whereby the receiving storage location belongs to the MRP area. You can maintain several scheduling agreements for an overlapping period in the source list, if you assign the type "No warnings or messages" for the message with version 00, application area ME, number 375 in the Customizing for Purchasing IMG activity "Define attributes of system messages".

© SAP AG LO210 9-8

SAP AG 1999

1. Convert planning file entries

2. Activate MRP for MRP areas

4. Create MRP area segments

5. Check storage locations

Material

3. Define MRP areas

Material

Preparation for Planning with MRP Areas

��For the introduction of MRP with MRP areas, you must first convert the existing planning file entries at plant level to MRP area level in the planning file (Customizing IMG activity "Convert planning file entries for MRP areas"). You can then activate the MRP for MRP areas (Customizing IMG activity "Activate MRP for MRP areas") and create MRP areas (Customizing IMG activity "Define MRP areas").

��In the Customizing IMG activity "Define MRP areas", you then define the MRP area including the type and to which plant it belongs. For storage location MRP areas, you then define a receiving storage location. You complete the definition of the storage location MRP areas by assigning one or more storage locations. For a subcontractor MRP area, you assign one subcontractor.

��The materials that are to be planned in different areas to the plant MRP area, must be assigned to these MRP areas by creating the corresponding MRP area segment in the material master in the "MRP 1" view.

��The allocation to a storage location MRP area is made using the storage location that the system determines during the planning run. This is determined on the basis of the storage location entered in the BOM (BOM item), in the work center (production supply area), or in the production version or in the material master. This storage location must be included in the MRP area that you have assigned in the material master. In addition, it is necessary that the view "Storage 1" or "Storage 2" exists for this storage location in the material master.

© SAP AG LO210 9-9

SAP AG 1999

Planning file entries atplant levelPlanning file entries atplant level

Con

vers

ion

Convert

Plant MRParea 1000Plant MRParea 1000

Plant MRParea 1100Plant MRParea 1100

Conversion of Planning File Entries

Plant 1000 Plant 1100

Planning file entries atMRP area level

��The existing planning file entries at plant level are converted into planning file entries at MRP area level. The conversion uses a report that is triggered in the Customizing for MRP activity "Convert planning file entries for MRP areas". The system uses this conversion report to create a new planning file, in which you can access entries for individual MRP areas.

��The system creates the plant MRP area automatically for every plant such that for every plant there is exactly one plant MRP area having the same number as the plant.

© SAP AG LO210 9-10

SAP AG 1999

Forecast Consumption values

12.9711.9710.97

125311781182

Material APlant 1000

MRP dataMaterialMaterial

Plant MRParea 1000

Forecast modelPeriod indicator ...

MRP groupMRP typeorder quantitySpecial procurement...

MRP areas

MRPareasegment10001

MRP areadefined?

MRP data

MRP Area Segment in the Material Master

��In order to be able to assign a material to an MRP area (for example, using the storage location), the MRP area must have been defined in Customizing beforehand and a corresponding MRP area segment must be created in the material master record of the material. Materials that have no MRP area segment remain in the plant MRP area.

��In order to create an MRP area segment, you choose the pushbutton "MRP areas" in the view MRP 1 of the material master.

��You can assign a material to as many MRP areas as you wish by creating a segment for each MRP area. For each MRP area, you can enter different MRP and forecast parameters to those from the material master at plant level and even the consumption values are updated separately for each MRP area. You can assign a different MRP group to each MRP area, but the values at plant level are used for the strategy, the consumption logic, the period of adjustment and the checking rule.

��The assignment of a material to an MRP area can be deleted using the deletion indicator in the initial screen for the MRP area segment in the material master. Any dependent requirements or reservations that were planned in this MRP area are thereby transferred to the plant MRP area.

��You can display which materials are assigned to a particular MRP area. To do this, choose the pushbutton "Material overview for MRP area" from the detail screen for the MRP area in the Customizing IMG activity "Define MRP areas".

© SAP AG LO210 9-11

SAP AG 1999

MRP Production

MRP area 10001

0001Storagelocation

MRP area 10002

0002Storagelocation

Plant MRP area1000

Dep. reqmtsStor. loc. 0002

Production order

Production order

Planned orderStor. loc. 0002

Material

version

Production

Planned orderStor. loc. 0001Receiving

stor. loc.

Assignment to a Storage Location MRP Area

Plnd indept reqmts MRP area 10001

Sales orderStor. loc. 0001

��Planned independent requirements are created for each MRP area. Sales orders are assigned to a MRP area depending on their storage location (the issue storage location in the shipping screen of the item details).

��Dependent requirements are automatically assigned to a MRP area in the planning run, depending on their production or issue storage location. Here, the system accesses the production version of the material, the BOM or the material master. If the storage location determined allows the material to be assigned to a MRP area of this material (assigned in the material master), then the requirement is planned in this MRP area. If another assignment is not possible, the planning takes place in the plant MRP area.

��The requirement elements (planned independent requirements, sales order and so on) are covered after the assignment to a MRP area within this MRP area. If a production storage location (or an external procurement storage location) is determined for a corresponding procurement element (that is the relevant planned order) that does not belong to this MRP area, then the receiving storage location of the MRP area is used instead.

© SAP AG LO210 9-12

SAP AG 1999

External procurement

Material on

B C

Stor. loc.0001

Stor. loc.0001

Plant MRP area10001 0001

(MRP1)

A

version

Production

for

Line 1

Line 1

A(MRP1)(MRP4)

Issue storage location 0001for components

A

CB

Example: Planning a Production Line

��The MRP area allows you to plan the staging and procurement of components to a specific production line.

��Consider the following example: Assembly A is produced on production line 1. The externally-procured components materials B and C are necessary for this, and can be withdrawn from storage location 0001.

��System example: For storage location 0001, the storage location MRP area 10001 is created in Customizing for MRP. This MRP area is assigned to the material master of components B and C using an MRP area segment. The external procurement storage location 0001 is entered here, as this is also the receiving storage location for procuring the components. A production version for production line 1 is created in the material master of assembly A. Storage location 0001 is entered for components B and C as issue storage location. (In the corresponding MRP group, in Customizing, indicator 2 is maintained in the field "Determine production storage location (storage location selection)".

��In the planning run, the system determines the dependent requirements for components B and C and, using the production version, determines the issue storage location 0001. In this way, the requirement is assigned to MRP area 10001. When determining the procurement elements for B and C, the system reads the external procurement storage location 0001 from the MRP area definition in configuration and the procurement elements are assigned to this storage location.

© SAP AG LO210 9-13

SAP AG 1999

Subcontracting (1)

Reqmt of materialprovided/stock transfer

Reqmt of materialprovided/stock transfer

Delivery/goodsreceipt

Subcontractor B

Own plant

Provision of matl

by customer

Provision of matlby subcontractor

Sto

ck o

f mat

eria

l pro

vide

dPlanning Components Provided WithoutSubcontractor MRP Areas

Subcontractor A

��In the MRP run, the system explodes the BOM for the material to be procured and determines the components required, which need to be provided to the subcontractor. In the BOM (status/long text of BOM item), these components must be flagged as customer parts provided, vendor parts provided are procured by the subcontractor (vendor).

��The example shows subcontracting in the case of the part pump. Several subcontractors are responsible for the final assembly of the pump; the casing is procured in the company’s own plant and transported to the appropriate subcontractor (provision of material by the customer). The number of casings provided depends on the number of pumps ordered from the subcontractor (subcontract order) and the number of casings that are already with the subcontractor (stock of material provided). The screws for the assembly of the pump (and, if necessary, any further components) are procured by the subcontractor (provision of the material by the subcontractor).

��The requirements of material provided are treated as separate according to the subcontractor. The stock of material provided, which is stocked by a subcontractor, can only be used to cover that subcontractor’s requirements of material provided and not for other subcontractors.

��In the stock/requirements list and MRP list, the stock of material provided and requirements of material provided are shown per subcontractor in separate planning segments. A subcontractor’s requirements of material provided, which are not covered by the material provided already stocked at the subcontractor, are entered in the net requirements calculation and are shown and planned in the net planning segment.

© SAP AG LO210 9-14

SAP AG 1999

Provision of matlby customer

Subcontractor 3rd partyorder processing

SB MRParea A

Stock transfer from plantto MRP area

SB MRParea B

SB MRParea A

SB MRParea B

Subcontracting (2)

Planning (Customer) Components ProvidedWith Subcontractor MRP Areas

Subcontractor 3rd partyorder processing

Stock transfer from plantto MRP area

MRP

��You have the option of using MRP with MRP areas for subcontracting. By introducing the MRP areas, the stocks of material provided and requirements of material provided for components in the subcontractor purchase requisitions or purchase orders are planned separately according to subcontractor.

��In the Customizing activity "Define MRP areas", you define an MRP area of type 03 "Subcontractor" (vendor). You also assign the subcontractor’s (vendor) credit number to this MRP area. A subcontractor may only be assigned to one subcontractor MRP area.

��In the "MRP 1" view of the material master for the material provided, you assign the subcontractor MRP areas and MRP parameters (MRP area segment), which are valid for this material provided.

��The stock of material provided that is with the subcontractor can be covered by transferring stock from the company’s own plant. A further possibility is to procure the components to be provided from vendors, who deliver the materials directly to the subcontractor. This is subcontractor third party order processing. The control of the replenishment is defined by the special procurement type in the MRP area segment.

��In the example above, the customer components to be provided casing and rotor are planned. The components can be procured differently for the subcontractors A and B. The control of procurement is set for each subcontractor MRP area using an appropriate special procurement key in the material master (for more details, see the next slide).

© SAP AG LO210 9-15

SAP AG 1999

Our plant

Delivery&

goodsreceipt

Subcontractor 3rd party order processing

Stk transfer reservation & stk transfer

Purchase order

Delivery&

goodsreceipt

Purchase requisition

+

-

+

-+

Subcontracting (3)

Procuring (Customer) Components Provided WithSubcontractor MRP Areas

Subcontractor A

Vendor

Stock of materialprovided

��For the dependent requirements of the components provided to be assigned to the subcontractor’s MRP area, an SPO planned order or a purchase requisition with SB item category and assigned source of supply must exist for the (finished) product to be procured. For this, the special procurement subcontracting must be entered in the material master or in the quota arrangement , which affects stock, for the (finished) product. In MRP, the automatic assignment of a subcontractor generally takes place via the existing source determination mechanism (special procurement type, quota arrangement, source list).

��If the special procurement type "Stock transfer from plant to MRP area" is maintained in the subcontractor MRP area data in the material master of a component provided, a stock transfer reservation is generated in the MRP run, as a replenishment element for the component provided, from the plant stock to the subcontractor stock of material provided (movement type 541). When the stock is transferred with reference to the reservation, the plant stock and the reservation are reduced and the stock of material provided increased.

��If the special procurement type "External procurement" is maintained in the subcontractor MRP area data in the material master of a component provided, a purchase requisition is generated in the MRP run with the indicator "Subcontracting", as a replenishment element for the component provided, in which the subcontractor who delivers the finished product is entered in the inbound delivery address. The goods receipt for this purchase order is posted to the subcontractor’s stock of material provided.

��Once the goods receipt has been posted for the subcontract order, the stock of material provided and the subcontractor reservation for the components provided are reduced.

© SAP AG LO210 9-16

SAP AG 1999

MR

P a

rea

Plant MRP area

�� Make-to-stock production (anonymous) Make-to-stock production (anonymous) 1010

�� Make-to-stock production/grossMake-to-stock production/gross reqmts reqmts planning planning 1111

�� Production by lotsProduction by lots 3030

�� Planning with final assembly Planning with final assembly 4040

�� Planning at assembly level Planning at assembly level 7070

y Make-to-order productiony Strategies with planning

Strategies of Make-to-Stock Production in MRPAreas

��In storage location MRP areas the materials can only be planned with the make-to-stock production planning strategies (strategies 10, 11, 30, 40, 70). In demand management, only the planned independent requirements of the corresponding requirements classes can be created for storage location MRP areas.

��The strategies of make-to-order planning can be used only in the plant MRP area. Individual customer segments are put in the plant MRP area to ensure that the sales order is only planned in the individual customer segment, even if the storage locations have been changed. Regardless of the storage location, the sales order items and procurement elements remain in the corresponding individual customer segment and thus in the plant MRP area.

��The strategies with planning segments (strategies 50, 52, 59, 60, 74 and so on) can also only be used in the plant MRP area.

© SAP AG LO210 9-17

SAP AG 1999

Enhancement Special Procurement Types

Stock transfer between MRP areas

Stor. loc.

Stor. loc.

MRP area 100010001

Plant MRParea 1000

Stock transferreservation

Special procurementkey

Stock transfer from own plant

Special procurementkey

Stock transfer from own plant

MRPareasegment

0002

��Materials that are planned in a MRP area can be procured using the special procurement type "stock transfer from plant to MRP area".

��For this purpose you have to create a special procurement key in Customizing for MRP (Customizing step "Define special procurement type"), which contains procurement type "F" (external procurement), special procurement type "U" (stock transfer) and your own plant as the stock transfer plant. This special procurement key is entered in the MRP area segment of the corresponding MRP area.

��The stock transfer process takes place as in storage location MRP. A stock transfer reservation is created at MRP area level, and a reservation with reference to this stock transfer reservation is created at plant level. When the procurement in the plant is finished, the transfer posting is carried out in the MRP area with reference to the stock transfer reservation, in inventory management.

��Special procurement types that refer to the BOM explosions, such as phantom assembly, are not permitted in a MRP area segment. Special procurement types that refer to an actual goods movement, such as stock transfer from another plant, external procurement, stock transfer from plant to MRP area, are permitted. A special procurement type "Stock transfer between MRP areas" is not planned.

��Storage location MRP (that is a storage location planned separately or excluded from planning) is only retained because of upward compatibility, but can be completely removed by MRP with storage location MRP areas.

© SAP AG LO210 9-18

SAP AG 1999

MRP areaMRP area

(Master prod. sched.)

( + )

ATP quantities

( - )

ATP check with MRPareas

ATPwith/without

storage locationcheck

Material

Sales orderwith Stor. loc.

Che

ckin

g ru

le

ATP Check with MRP Areas

��As soon as MRP with MRP areas has been activated, the ATP check is also active at MRP area level. The availability check is carried out for the individual MRP areas.

��Sales orders for make-to-order production are planned in the plant MRP area. For the customer requirements types in make-to-stock production, the assignment to a MRP area is made using the storage location.

��As in the previous ATP check at plant level, the ATP check can be carried out with or without the storage location check in Customizing, depending on the control of the availability check. If no storage location check has been set, the ATP check is only carried out for the total MRP area, while the available quantity is also checked in the storage location (of the sales order) with storage location check.

© SAP AG LO210 9-19

SAP AG 1999

StockStocktransfertransfer

Product

Assembly

Plant 1100+

+

-.

MRP area10001

Product

Assembly -

Scope of planning inCustomizing:(1) MRP area 10001(2) Plant 1100

Planning sequence:

Mat. product:

Area 10001 Plant 1100

Mat. assembly:

Area 10001 Plant 1100 Area 10001

Scope of Planning with MRP Areas

��The total planning run can be triggered per plant, for example, as a background job with a separate job for each plant to be planned. In planning with MRP areas, it is also possible to plan only individual MRP areas.

��It is possible to group together several MRP areas or plants in a scope of planning for a planning sequence and to plan on a cross-plant basis in a total planning run. The system automatically takes mutual dependencies, such as those arising through stock transfer, into account (the situation displayed in the slide requires that MRP area 10001 and plant 1100 are entered in the scope of planning - the planning takes place for each material in the proposed order MRP area 10001, plant 1100 instead of in MRP area 10001).

��You define the scope of planning for total planning in the Customizing for MRP activity "Define scope of planning for total planning". You can also only specify an individual MRP area in the scope of planning.

��By using scope of planning, you can execute a total planning run online or as a background job for a plant, for several plants, for an MRP area, for several MRP areas in MRP, in MPS and in long-term planning.

��The planning run must always be started with parallel processing.

© SAP AG LO210 9-20

SAP AG 1999

MRP Areas: Summary (1)

z As an organizational unit, MRP areas allow a greaterdifferentiation in MRP, in the plant. MRP takes place inMRP areas.

z There are three MRP types:plant MRP area (obligatory), storage location MRParea, subcontractor MRP area.

z A material is assigned to a MRP area using the MRParea segment in the material master. The material canbe planned differently in different MRP areas.

© SAP AG LO210 9-21

SAP AG 1999

MRP Areas: Summary (2)

z A requirement is assigned to a storage location MRParea using the storage location.

z Requirements of materials provided for subcontractorscan be planned in subcontractor MRP areas separatefrom the plant MRP area.

z Using the scope of planning, you can carry out MRPspecifically for on MRP area, for several MRP areas orfor any combination of plants and MRP areas.

© SAP AG LO210 9-22

Exercises

Unit: MRP Areas Topic: Planning with Storage Location MRP Areas


• execute MRP for the finished product in a separate MRP area,

• and make the necessary settings for this in Customizing and the material master.

Precision Pumps Inc. executes MRP using MRP areas. The pump T-F1## is to be planned in plant 1000 using strategy 40 (planning with final assembly). Make sure that the following entries have been made in the material master: strategy group 40 and a time period of 30 workdays for the backward and forward consumption periods.

1-1 Check the settings in Customizing: You intend to plan the pump T-F1## in the storage location MRP area L0##P1000 in plant 1000. You therefore check the attributes of this MRP area: Display the MRP area L0##P1000 in Customizing for MRP master data (IMG activity Define MRP areas).

1-1-1 What type of MRP area is it?

__________________________

1-1-2 Which storage locations are assigned to this MRP area?

__________________________

1-1-3 What is the receiving storage location?

__________________

1-2 You assign the material T-F1## to the MRP area L0##P1000 by creating a corresponding MRP area segment in the material master.

1-2-1 Use the transaction Change material to access the MRP 1 view of the material master T-F1##. Then check whether the indicator MRP area exists is set: __________

1-2-2 Now assign the MRP area. Choose MRP areas. In the overview screen of MRP areas that then appears, you add the MRP area LO##P1000. By choosing Check, you access the detail screen for the MRP data that is to be valid in this MRP area. Use the following settings:

MRP type: PD

MRP controller: 0##

Lot size: EX.

Adopt (twice) the entries in order to return to the MRP 1 view of the material master.

© SAP AG LO210 9-23

1-2-3 Is the indicator MRP area exists set now? _____

1-2-4 Save the material master.

1-3 Create a planned independent requirement for material T-F1## in MRP area L0##P1000:

1-3-1 In the initial screen for the transaction Create planned independent requirement, enter the MRP area L0##P1000 for the material T-F1##. Use months as the Planning period and enter a requirement of 20 pieces for the current month + 3 for this MRP area in a new line in the entry screen. Make sure that the requirements type is VSF and save your entries.

1-3-2 Access the stock/requirements list for material T-F1## in MRP area L0##P1000.

Is the planned independent requirement of 20 pieces displayed? ________

Do other requirements or procurement elements flow into the stock/requirements list for this MRP area? ________

1-3-3 Now display the stock/requirements list in plant MRP area 1000. Does your planned independent requirement, which you just created, appear in the plant MRP area? ________

1-4 Execute the MRP run in MRP area L0##P1000: Execute the multi-level planning run in MRP area L0##P1000 in plant 1000. Then display the stock/requirements list for this MRP area again.

1-4-1 Has a procurement element been created? ________

1-4-2 Which storage location has been determined in the header of the planned order that was created to cover the requirement in MRP area L0##P1000? _______________

Why? ______________________________________________

1-5 You receive a sales order for 10 pieces of material T-F1## for the twentieth day of the current month + 2.

1-5-1 Starting from the Demand Management menu, enter a corresponding customer requirement. To do this, use the following data:

Delivering plant: 1000

Requested delivery date: 20. of current month + 2

Material: T-F1##

Order quantity: 10 pc

When you check your data by choosing Enter, make sure that the customer requirements type is KSV. Save the requirement.

1-5-2 Access the stock/requirements list for MRP area L0##P1000 and plant MRP area 1000. In which MRP area is the sales order and why?

___________________________________________________

1-5-3 Note down the number and the item of the sales order. __________________ / _________

© SAP AG LO210 9-24

1-6 Change the issue storage location for this sales order: the stock should come from storage location L1##.

1-6-1 From the stock/requirements list for plant 1000, change the customer requirement (select it and choose the Change element icon). In the entry screen, enter the storage location

L1## as the storage location.

Save your entries.

1-6-2 Refresh the stock/requirements list for the plant MRP area 1000. Is the sales order still displayed? ___________

1-6-3 Access the stock/requirements list for MRP area L0##P1000 in plant 1000. Is the sales order displayed here? ___________

Why? ____________________________________________

1-6-4 Check whether the sales order has consumed the planned independent requirements in accordance with the strategy in the material master. Consumed? __________

1-7 Start a multi-level planning run in the MRP area L0##P1000 in plant 1000 in order to adjust the planned orders to the current requirements situation.

1-7-1 Convert the first planned order in the stock/requirements list for MRP area L0##P1000 into a production order (you access this function directly from the Additional data for element). Release the production order and save it.

1-7-2 Refresh the stock/requirements list and note down the number of the production order. _____________

1-7-3 What is the receiving storage location for the production order? _______

1-8 Post the goods receipt for the production order, the number of which you noted down in the previous exercise. Post this goods receipt to the storage location L1##.

1-8-1 From the Inventory Management menu, choose the transaction Goods receipt for order. In the initial screen of the transaction, enter the number of the order and the movement type 101: You access the entry screen by choosing Enter. Verify that the storage location is L1##, and otherwise accept the values suggested by the system. Confirm any warning messages and post the goods movement.

1-8-2 Check the stock/requirements list for MRP area L0##P1000. Have the goods been received in this MRP area? __________

1-8-3 What is the stock level for today’s date? _______

© SAP AG LO210 9-25

1-9 Now deliver the customer requirement; that means, create an appropriate goods issue. In the initial screen of the transaction, use the movement type 231 and enter the plant 1000. Choose Enter and enter the following data:

Sales order: Your order number and item

Material: T-F1##

Quantity: 10 pc

Storage location: L1##.

Confirm any warnings and post the document.

1-9-1 Access the stock/requirements list for MRP area L0##P1000. What is the stock level now? __________

1-9-2 Is the customer requirement still visible in the list? ______

Why (not)? ______________________________________

© SAP AG LO210 9-26

Solutions

Unit: MRP Areas Topic: Planning with Storage Location MRP Areas

1-1 Menu path: Customizing-Production o Material Requirements Planning o Master Data o MRP Areas o Define MRP Areas

1-1-1 MRP area type: It is an MRP area type 02; that is a storage location MRP area.

1-1-2 Storage locations in this MRP area: The storage locations L0## and L1## are assigned to this MRP area.

1-1-3 Receiving storage location: The receiving storage location is L0##.

1-2

1-2-1 Indicator “MRP area exists” set: No

1-2-2

1-2-3 Indicator “MRP area exists” set now: Yes

1-3 Menu path: Logistics o Production o Production Planning o Demand Management o Planned Independent Requirements o Create

1-3-1

1-3-2 Planned ind. reqmt: Yes

Other requirements or procurement elements: No

1-3-3 Planned independent requirement in plant MRP area: No


1-4-1 Procurement element: Yes

1-4-2 Storage location in header of planned order: Storage location L0##

Reason: The storage location 0002 is entered as the production storage location in the material master. As this storage location does not belong to the MRP area and requirements are only covered within the respective MRP area, the receiving storage location is used instead.

© SAP AG LO210 9-27

1-5


1-5-2 MRP area of sales order: The customer requirement lies in the plant MRP area. No storage location that could control a deviating assignment to a special MRP area has been entered for the sales order. It therefore remains in the plant MRP area.

1-5-3 Number and item: Varies/10

1-6

1-6-1

1-6-2 Sales order in plant MRP area: No

1-6-3 Sales order in MRP area L0##P1000: Yes

Reason: The sales order is assigned to the MRP area using its issue storage location L1##.

1-6-4 Consumed: Yes

1-7

1-7-1

1-7-2 Number of production order: Varies

1-7-3 Receiving storage location: L0##

1-8

1-8-1 Menu path: Logistics o Materials Management o Inventory Management o Goods Movement o Goods Receipt o For Order

1-8-2 Goods receipt in this MRP area: Yes

1-8-3 Stock for today’s date: 10 pieces

1-9 Menu path: Logistics o Materials Management o Inventory Management o Goods Movement o Goods Issue

1-9-1 Stock: 0 pc

1-9-2 Customer requirement visible: No

Reason: The customer requirement has been reduced by the goods receipt.

© SAP AG LO210 10-1

SAP AG 1999

Discontinued Parts

Contents:

z Discontinued parts in long-term planning, master productionscheduling and material requirements planning

z Material master and BOM maintenance of simple and paralleldiscontinuation

© SAP AG LO210 10-2

SAP AG 1999


11 Introduction


MRP Areas99


Overview22


88Technical Information onMRP


44 MRP Run

66 MPS

© SAP AG LO210 10-3

SAP AG 1999

Discontinued Parts (Simple Discontinuation)

CB

Material master: Material C

Discontinuationindicator: 1Effective-out date:1.1.2001Follow-up material: D

TimeTime1.1.20011.1.2001

CB

Availablestock forplanning C > 0

DBProcurementfor material D

Plnd order A

Plnd order A

Plnd order A

CB

A

BOM for material A

Availablestock forplanning C = 0

��In Engineering/Design, it may be decided that a material is to be replaced by another material on a particular date. These changes may possibly be necessary for the following reasons:

• Other safety regulations are to apply from a particular date. A certain component must therefore be exchanged as it is no longer in accordance with safety regulations.

• A cost-intensive part is replaced by a more favorably priced part.

�� Discontinued parts functions in the same manner in long-term planning, master production scheduling and material requirements planning.

��Simple discontinuation: A discontinued component is being replaced by a follow-up material from a particular date as soon as the available stock for planning of the discontinued component is zero. This means that if the available stock for planning of the discontinued material is zero, the dependent requirements of the discontinued material are diverted to the follow-up material. If the available stock of the follow-up material is not adequate, the follow-up material (instead of the discontinued material) is procured. The safety stock of the discontinued material is not touched by MRP.

��If the available stock for planning of the discontinued material, for example, due to a repeat order, becomes larger than zero again, this material will be used again. In addition, an exception message is created for receipts after the effective-out date.

��Prerequisites: You have to set the discontinued parts indicator "1" in the material master record of the discontinued component. You also must enter a follow-up material and define an effective-out date. The follow-up material can be maintained in the bill of materials as the follow-up material for information purposes.

© SAP AG LO210 10-4

SAP AG 1999

Discontinued Parts (Parallel Discontinuation)

BOM in discontinuation phase

Initial situationAvailable

stock L98 = 0

R98L98R98L98

Effective-out date01.01.2001

R99L99 R99L99

Car

R98 L99L98 R99

TimeTime1.1.20011.1.2001

Available stock L98 > 0

- L98 (left wing mirrormodel year 1998): main item fordiscontinuation

- L98/R98: Discontinuationgroup 01

- L99/R99: Follow-up group

Plnd orderCar

Plnd orderCar

Plnd orderCar

Plnd orderCar

R99L99

Car

New BOM

Change BOM

��Parallel discontinuation: A group of materials is replaced by another group of materials. If a component is to be discontinued (main discontinued part) and its available stock is zero, another component (dependent discontinued part) also has to be discontinued. If, for example, a particular nut is to be discontinued, the corresponding bolt also has to be discontinued.

��Prerequisites:

• Material master record: You must set the discontinued part indicator "1" in the material master record of the main discontinued part and set the discontinued part indicator "3" in the material master record of the dependent discontinued part.

• Bill of materials: In the extras for the BOM item, you define a discontinuation group in the "Discontinuation data". You can define the name of this character string, which then combines BOM items that belong together and are to be discontinued. The main and the dependent discontinued parts are identified using the same discontinuation group.

• You also set the follow-up item indicator for the follow-up component or components. The follow-up group combines all follow-up items of a BOM that belong together. This group determines which discontinued parts are to be replaced by the follow-up items. The character string of the follow-up group must be identical to that of the discontinuation group.

© SAP AG LO210 10-5

SAP AG 1999

z The effective-out date and the follow-up material areentered in the material master record of the (main)discontinued part. You can distinguish betweenmain and dependent discontinued parts using thediscontinuation indicator.

z In the case of parallel continuation, all materials(main discontinued parts, dependent discontinuedparts and all follow-up materials) are maintained asBOM components. You have to select identicaldiscontinuation and follow-up groups.

z The dependent requirements of discontinuedmaterials are diverted to follow-up materials as soonas the available quantity for planning of the (main)discontinued part has been used up.

Discontinued Parts: Unit Summary

© SAP AG LO210 10-1

Planning Strategies (Rel. 4.6)

Planning strategies

Reqmts/ Consump-tion

Special types

No Planned reduction in requirements

Requirements types and classes

Ind. rqmts Cust. rqmts

Special features

Strategies of Make-to-Stock Production Net reqmts planning

10 Sale from stock, delivery for sales order (Movement type 231 or 251)

LSF 100 KSL 030 Make-to-Stock Production

Ind. rqmts/ no consumption

Gross reqmts planning

11 Goods receipt

(Movement type 101)

BSF 102 KSL 030 Mixed MRP indicator in view MRP 3 on 2 (gross requirements planning).

Production by Lots Ind. rqmt, cust. rqmt/ no consumption

30 Sale from stock (Movement type 251) for ind. requirement, delivery for sales order (Movement type 231) for cust. requirement

LSF 100 KL 041

Planning with Final Assembly

Ind. rqmt, cust. rqmt/ consumption

40 Planned goods issue

(Movement type 231 or 251)

VSF 101 KSV 050

© SAP AG LO210 10-2

Planning at Assembly Level

Ind. rqmt, dep. rqmt/ consumption

70 Planned goods issue for reservations (movement type 261)

VSFB 105 Empty At assembly level:

Strategy 70 in view MRP 3;

mixed MRP indicator in view MRP 3 on 1 (subassembly planning);

Individual/collective indicator in view MRP 4 on 2 (collective).

Planning at Phantom Assembly Level



VSEB 106 Empty Create phantom assembly with related BOM.

At assembly level:


mixed MRP indicator in view MRP 3 on 1 (subassembly planning);

special procurement indicator in view MRP 2 on 50 (phantom assembly).

Ensure backflush,

in the case of operation backflush, assign components to the same operation.

Strategies for Make-to-Order Production Without project 20 Delivery for corresponding

sales order Empty KE 040 For assemblies that are no longer to be

produced on a customer-specific basis, individual/collective indicator in view MRP 4 on 2 (collective).

Make-to-Order Production

Cust. rqmts/ no consumption

For configurable material

25 Delivery for corresponding sales order

Empty KEK 046

© SAP AG LO210 10-3

Planning Without Final Assembly

Ind. rqmt, cust. rqmt/ consumption


VSE 103 KEV 045 Not for configurable materials.

For assemblies that are no longer to be produced on a customer-specific basis, individual/collective indicator in view MRP 4 on 2 (collective).

Planning with Planning Material

Ind. rqmt, cust. orders for finished products/ consumption


VSEV 104 KEVV 060 Planning Material: Strategy 60 in view MRP 3. Referencing material: Enter strategy 60 and planning material in view MRP 3.

Planning at Assembly Level Without Final Assembly



VSEM 107 Empty At assembly level:


Mixed MRP indicator in view MRP 3 on 3 (subassembly planning without final assembly). For assemblies that are not to be produced only when an order has been received, individual/collective indicator in view MRP 4 on 2 (collective).

Strategies for Order-Specific Final Assembly Repetitive manufacturing

81 Empty KMSE 200

with production order

82 Empty KMFA 201

Assembly Processing

Cust. rqmts/ no consumption

with network without project

83

Delivery for corresponding sales order

Empty KMNP 202

For assemblies that are no longer to be produced on a customer-specific basis, individual/collective indicator in view MRP 4 on 2 (collective).

© SAP AG LO210 10-4

Assembly Processing with Characteristics Planning


Configurable 89 Planned goods issue for reservations (movement type 261)

VSE 103 KMSE 200

Abbreviations: Ind. requirement = planned independent requirement, dep. requirement = dependent requirement, cust. requirement = customer requirement

© SAP AG LO210 10-1

Horizons

Some Horizons in Production Planning

Planning horizon The planning horizon determines the short-term planning area. It is calculated in workdays.

Definition:

1. As an MRP group parameter

(Customizing: Carry out overall maintenance of MRP groups).

2. As a plant parameter

(Customizing: Carry out overall maintenance of plant parameters).

Consumption period The backward and forward consumption periods together with the consumption mode restrict the period in which the customer requirements with planned independent requirements are consumed. The consumption period is calculated in workdays. (As an exception, the forward consumption period in the make-to-stock strategies 10 and 11 determines in which time frame planned independent requirements can be reduced according to the FIFO rule also in the future.

Definition:

1. In the material master (MRP 3).



Planning time fence The planning time fence defines a period in which the system can make no automatic changes to the production plan (as long as the materials are set with an MRP type with an appropriate firming type). It is calculated in workdays. You can also set a firming date (and thereby the end of the planning time fence) manually.

Definition:

1. In the material master (MRP1) or in the MRP area segment.



Planning time fence for the maintenance of independent requirements

The planning time fence for the maintenance of independent requirements defines a period in which the system generates a message when there are changes to the demand program. This horizon, which is defined in workdays, does not affect MRP.

Definition:

On a plant-basis in the Customizing IMG activity Define firming period for maintaining independent requirements.

© SAP AG LO210 10-2

Roll forward period The roll forward period defines a period (in workdays) for the update of the production plan. All firmed planned orders that fall before the end of the roll forward horizon (which can lie in the future or the past) are deleted (if the roll forward indicator “Delete firm planned orders” is set in the MRP type of the respective material).

Definition:

As an MRP group parameter


Period of Adjustment The period of adjustment defines a period in which planned independent requirements are no longer taken into account in the net requirements calculation. The various adjustment indicators control whether the end of this period is in the past or the future and which types of planned independent requirements are ignored. The period of adjustment is in workdays.

Definition:

As an MRP group parameter


Reorganization Period The reorganization period defines from which date data is reorganized. This date is calculated by deducting the reorganization period (in calendar days) from today’s date. The system reorganizes all data that is older than the reorganization period.

Definition:

On a plant-basis in the Customizing IMG activity Define the reorganization interval.

Rescheduling horizon The rescheduling horizon determines a period (in workdays), starting form the end of the replenishment lead-time, in which the system checks in the net requirements calculation whether the dates for firmed or fixed receipt elements should be moved. This horizon is only valid for the rescheduling in of firmed or fixed receipt elements. The system checks on the rescheduling out (into the future) of such a receipt element without restriction to this period.

Definition:



2. As a plant parameter

(Customizing: Carry out overall maintenance of plant parameters. You also define here,

which receipts are counted as firmed or fixed.)

Scheduling horizon The scheduling horizon can be used to define a period in which lead-time scheduling can be executed in MRP. The system executes detailed scheduling and generates capacity requirements for planned orders, whose order start date lies in the future within this period (in workdays). In the case of planned orders that lie further in the future the scheduling takes place using the in-house production time in the material master.

Definition:

On a plant-basis in the Customizing IMG activity Define scheduling parameters for planned orders.

© SAP AG LO210 10-3

Menu Paths

Some Menu Paths in Production Planning

Master Data

Material master

Logistics → Production → Master Data → Material Master → Material → Create\Change\Display

MRP profile

Logistics → Production → Master Data → Material Master → Profile → MRP Profile → Create\Change\Delete\Display\Usage

BOM

Logistics → Production → Master Data → Bills of material → Bill of material → Material BOM → Create\Change\Display

Routing

Logistics → Production → Master Data → Routings → Routings → Standard routings → Create\Change\Display

© SAP AG LO210 10-4

Demand Management


Logistics → Production → Production planning → Demand Management → Planned independent requirements → Create\Change\Display


Logistics → Production → Production planning → Demand Management → Customer requirements → Create\Change\Display

Total requirements – Planned independent requirement assignment

Logistics → Production → Production Planning → Demand Management → Evaluations → Display Total Requirements

(alternatively, can be reached from the stock/requirements list by selecting Environment → Display Total Requirements.)

Reorganization

Logistics → Production → Production Planning → Demand Management → Environment → Independent Requirements: Reorganization → Adjust Requirements\Schedule Lines: Reorganize\Delete History

SD sales order

Logistics → Sales and Distribution → Sales → Order → Create\Change\Display

Material availability overview

Logistics → Sales and Distribution → Sales → Environment → Availability overview

© SAP AG LO210 10-5

MRP

Stock/reqmts list

Logistics → Production → MRP → Evaluations →

Stock/Reqmts List\Stock/Reqmts List Coll.

MRP list

Logistics → Production → MRP → Evaluations → MRP List – Material\MRP List – Coll Displ.

Single-item

Logistics → Production → MRP → Planning →

Single-item, multi-level\single-level

Interactive single-item planning

Logistics → Production → MRP → Planning → Single-item, interactive

Planning → Execute planning run

Total planning

Logistics → Production → MRP → Planning → Total planning

Online\As Background job

Planning table

Logistics → Production → MRP → Planning → Planning table →

Display Mode\Change Mode

Planning file entry

Logistics → Production → MRP → Planning → Planning file entry → Create\Display

© SAP AG LO210 10-6

Manual firming date

Logistics → Production → MRP → Evaluations → Stock/reqmts list

Edit → Set firming date

Planning calendar

Logistics → Production → MRP → Master Data → Planning calendar → Create Period\Display Period\Change Period

Planned order

Logistics → Production → MRP → Planned Order → Create\Change

Pegged requirements

Logistics → Production → MRP → Evaluations → Pegged Requirements

(alternatively, can be accessed directly from the stock/requirements list)

Convert planned order

Logistics → Production → MRP → Planned Order → Convert to Pur. Request\Prod. Order → Collective\Partial Conversion

Definition of BOM alternatives per time period

Logistics → Production → MRP → Master Data → BOM By Date

(this can also be accessed in Customizing for Basic Data in Production)

BOM explosion numbers

Logistics → Production → MRP → Master Data → BOM explosion number → Edit\Display

Scheduled jobs

Tools → CCMS → Jobs → Maintenance

© SAP AG LO210 10-7

Long-Term Planning

Scenario

Logistics → Production → Production planning → Long-Term Planning → Planning Scenario → Create\Change\Display

Simulative planning

Logistics → Production → Production planning → Long-Term Planning → Long-Term Planning → Single-item, Multi-Level\Single-Level

MRP list, stock/requirements list for Long-Term Planning

Logistics → Production → Production planning → Long-Term Planning → Evaluations → MRP List\Stock/reqmts list

Adoption of firmed simulative planned orders in operative planning

Logistics → Production → MRP → Planning → Single-item, Interactive

Edit → Copy simulative LT planned orders

MPS

Planning run

Logistics → Production → Production planning → MPS → Long-Term Planning → Single-item, Multi-Level\Single-Level\Interactive

© SAP AG LO210 10-8

Customizing

Tools → AcceleratedSAP → Customizing → Edit Project

Goto → Display SAP Reference IMG

Planning strategies

Customizing-Production → Production Planning → Demand Management → Planned Independent Requirements → Planning Strategy → Define Strategy

Assign requirement types to requirements class

Customizing-Production → Production Planning → Demand Management → Planned Independent Requirements → Requirements Types/Requirements Classes → Define Requirement Types and Allocate Requirements Class

Planned independent requirements classes

Customizing-Production → Master Planning → Demand Management → Planned Independent Requirements → Requirements Types/Requirements Classes → Maintain Requirements Classes

Planning time fence for the maintenance of independent requirements

Customizing-Production → Master Planning → Demand Management → Planned Independent Requirements → Define Firming Period for Maintaining Planned Independent Requirements

Message output for invalid requirements type

Customizing-Production → Master Planning → Demand Management → Planned Independent Requirements → Requirements Types/Requirements Classes → Message Output for Invalid Requirements Type

Planned independent requirements versions

Customizing-Production → Master Planning → Demand Management → Planned Independent Requirements → Define Version Numbers

Customer requirements classes

Customizing-Sales and Distribution → Basic Functions → Availability Check and Transfer of Requirements → Transfer of Requirements → Define Requirements Classes

© SAP AG LO210 10-9

Special procurement

Customizing-Production → Material Requirements Planning → Master Data → Define Special Procurement Type

Movement types

Customizing-Materials Management → Inventory Management and Physical Inventory → Movement Types → Copy, Change Movement Types

Availability check settings

Customizing-Sales and Distribution → Basic Functions → Availability Check and Transfer of Requirements → Availability Check → Availability Check With ATP Logic or Against Planning → Carry Out Control for Availability Check

Available plant stock

Customizing-Production → Material Requirements Planning → Planning → MRP Calculation → Stocks → Define Availability of Stock in Transfer/Blocked Stock/Restricted Stock

Attributes of material types

Customizing-Logistics - General → Material Master → Basic Settings → Material Types → Define Attributes of Material Types

Material status

Customizing-Logistics - General → Material Master → Settings for key Fields → Define Material Statuses

MRP and planning file entries

Customizing-Production → Material Requirements Planning → Planning File Entries → Activate MRP and Set Up Planning Files

Material requirements planning for MRP areas

Customizing-Production → Material Requirements Planning → Master Data → MRP Areas → Activate MRP for MRP Areas

MRP areas

Customizing-Production → Material Requirements Planning → Master Data → MRP Areas → Define MRP Areas

© SAP AG LO210 10-10

Storage mode for MRP lists

Customizing-Production → Material Requirements Planning → Check of Performance Settings → Check Storage Mode for MRP List

Scope of planning for total planning

Customizing-Production → Material Requirements Planning → Planning → Define Scope of Planning for Total Planning

Parallel processing in MRP

Customizing-Production → Material Requirements Planning → Define Parallel Processing in MRP

(alternatively, this can be accessed directly from MRP)

Plant parameters

Customizing-Production → Material Requirements Planning → Plant Parameters → Carry Out Overall Maintenance of Plant Parameters

MRP group parameters

Customizing-Production → Material Requirements Planning → MRP Groups → Carry Out Overall Maintenance of MRP Groups

MRP types

Customizing-Production → Material Requirements Planning → Master Data → Define MRP Types

Planning table entry parameters

Customizing-Production → Repetitive Manufacturing → Planning → Planning Table → Maintain Entry Parameters

Planning table row selection

Customizing-Production → Repetitive Manufacturing → Planning → Planning Table → Maintain Row Selection

Planning horizon

Customizing-Production → Material Requirements Planning → Planning → MRP Calculation → Define Planning Horizon

(alternatively, this can be reached from the plant parameters or the MRP group parameters)

© SAP AG LO210 10-11

Planning time fence and roll forward period

Customizing-Production → Material Requirements Planning → Planning → MRP Calculation → Define Planning Time Fence and Roll Forward Period

(alternatively, this can be reached from the MRP group parameters)

Reorganization period

Customizing-Production → Master Planning → Demand Management → Planned Independent Requirements → Define the reorganization interval

Rescheduling check

Customizing-Production → Material Requirements Planning → Planning → MRP Calculation → Define Rescheduling Check

(alternatively, this can be reached from the plant parameters or the MRP group parameters)

Screen sequence for header details

Customizing-Production → Material Requirements Planning → Evaluation → Define Screen Sequence for Header Details

Navigation profiles

Customizing-Production → Material Requirements Planning → Evaluation → Define Navigation Profiles

Selection rules

Customizing-Production → Material Requirements Planning → Evaluation → Filter → Define Selection Rules

Display filter

Customizing-Production → Material Requirements Planning → Evaluation → Filter → Define Display Filter

Period totals

Customizing-Production → Material Requirements Planning → Evaluation → Period Totals → Define Period Display for Period Totals

Exception messages

Customizing-Production → Material Requirements Planning → Evaluation → Exception Messages → Define and Group Exception Messages

© SAP AG LO210 10-12

Receipt days’ supply

Customizing-Production → Material Requirements Planning → Evaluation → Define Receipt Elements for Receipt Days’ Supply

Floats (scheduling margin key)

Customizing-Production → Material Requirements Planning → Planning → Scheduling and Capacity Parameters → Define Floats (Scheduling Margin Key)

Safety stock availability

Customizing-Production → Material Requirements Planning → Planning → MRP Calculation → Stocks → Define Safety Stock Availability

Period profile for safety time/Actual range of coverage

Customizing-Production → Material Requirements Planning → Planning → MRP Calculation Define Period Profile for Safety Time/Actual Range of Coverage


Range of coverage profile ( dynamic safety stock)

Customizing-Production → Material Requirements Planning → Planning → MRP Calculation → Define Range of Coverage Profile (Dynamic Safety Stock)


Lot-sizing procedures

Customizing-Production → Material Requirements Planning → Planning → Lot-Size Calculation→ Check Lot-Sizing Procedure

Rounding profile

Customizing-Production → Material Requirements Planning → Planning → Lot-Size Calculation→ Maintain Rounding Profile

Planning calendar

Customizing-Production → Material Requirements Planning → Master Data → Maintain Planning Calendar


Selection ID of routing selection

Customizing-Production → Basic Data → Routing → Routing Selection → Select automatically

© SAP AG LO210 10-13

Scheduling parameters for planned orders

Customizing-Production → Material Requirements Planning → Planning → Scheduling and Capacity Parameters → Define scheduling parameters for planned orders

Note: as of Release 3.0, routing selection is controlled in this table, no longer via Customizing-Production → Material Requirements Planning → Planning → BOM Explosion/ Routing Selection → Define selection of BOMs and routings)

BOM usage

Customizing-Production → Basic Data → Bills of Material → General Data → BOM Usage → Define BOM Usages

Selection ID of BOM selection

Customizing-Production → Basic Data → Bill of Material → Alternative Determination → Define order of priority for BOM usages

Selection of BOM usage per plant

Customizing-Production → Material Requirements Planning → Planning → BOM Explosion/Routing Determination → Define BOM and Routing Selection

BOM explosion control

Customizing-Production → Material Requirements Planning → Planning → BOM Explosion/Routing Determination → Define BOM Explosion Control

Error handling in the planning run

Customizing-Production → Material Requirements Planning → Planning → MRP Calculation → Define Error Processing in the Planning Run

sap r/3 4.6 lo210 production planning

Technology

sap ag lo210

days production planning

planning results

planning process

sap archivelink

sap earlywatch

sap logo

planning strategies