Materials Requirement Planning ECC 6.0 Rev. 03/05/10 1 SAPtips Sample Material Requirements Planning MRP Planning This segment from our 390 page Material Requirements Planning (MRP) manual is being made available as a sample of our training manuals. Please contact [email protected]if you have any SAP training needs, or visit www.ERPtips.com for more information. Written by Alexis DeStaffany Parker Published by Klee Associates, Inc. Copyright Klee Associates, Inc., 2010 Unit 4: Materials Requirement Planning The goal of materials requirement planning is to produce an optimal supply of material for the customer demand. The customer demand might be for an actual customer or for an internal customer in the case of sub-assembly production or externally procured materials. The following are the goals of materials requirement planning: Maximizing availability of materials for internal and external customers Minimizing warehouse stock Minimizing logistics costs for both procurement and production In order to achieve these goals materials requirement planning must balance inventory with service of the customers. Materials requirement planning provides the ability these goals in the following ways: Providing gross and net requirement calculations Providing bill of material explosion for all components Providing lot size determination to optimize purchasing and production Providing safety stock strategies for optimizing inventory levels In this unit, we will review the following: Materials Requirement Planning Calculation Materials Requirement Planning File Materials Requirement Planning Sequence Review Materials Requirement Planning MRP Types Materials Requirement Planning Processing Materials Requirement Planning Configuration Materials Requirement Planning Business Add-Ins
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ERPtips SAP Training Manual SAMPLE CHAPTER From Material Requirements Planning
ERPtips SAP Training Manual SAMPLE CHAPTER From Material Requirements Planning
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This segment from our 390 page Material Requirements Planning (MRP) manual is being made available as a sample of our training manuals. Please contact [email protected] if you have any SAP training needs, or visit www.ERPtips.com for more information.
Written by Alexis DeStaffany Parker
Published by Klee Associates, Inc.
Copyright Klee Associates, Inc., 2010
Unit 4: Materials Requirement Planning
The goal of materials requirement planning is to produce an optimal supply of material for the customer demand. The customer demand might be for an actual customer or for an internal customer in the case of sub-assembly production or externally procured materials. The following are the goals of materials requirement planning:
Maximizing availability of materials for internal and external customers
Minimizing warehouse stock
Minimizing logistics costs for both procurement and production
In order to achieve these goals materials requirement planning must balance inventory with service of the customers. Materials requirement planning provides the ability these goals in the following ways:
Providing gross and net requirement calculations
Providing bill of material explosion for all components
Providing lot size determination to optimize purchasing and production
Providing safety stock strategies for optimizing inventory levels
Materials requirement planning calculation is performed during the run of materials requirement planning. The system uses the settings in configuration, master data, demand and supply to determine where there are shortage and overages to determine the most optimal plan based on the defined settings. As reviewed in the overview, we discussed the process of calculating the supply requirements based on the demand elements. In the diagram below we see the demand requirements and the supply requirements, in this section we will review all of these components, perform a demonstration of the calculation in materials requirement planning and perform and exercise in materials requirement planning calculation.
The following demand items are found in materials requirement planning calculation:
Sales Orders
Sales Scheduling Agreements
Dependent Requirements
Reservations
Planning Independent Requirements
The following supply items are found in materials requirement planning calculation:
Planned Orders
Purchase Requisitions
Schedule Lines
Purchase Orders
Production Orders
Klee Associates, Inc. Unit 4: Materials Requirement Planning
4. Enter the Plant and Storage Location for both the organizational levels, and
Copy from, and click the button.
Make sure to enter the copy from for plant and storage location, otherwise, the defaults from the copy from material will not copy over to the creation of this material.
5. Press Enter through all the views of the material master until the save screen is prompted as seen below.
6. Click the button.
Step 2: Assign the lot size for monthly lots and enter a rounding value
1. To change a material using the stock requirements list for a material, perform one of the following:
Enter transaction code MD04.
Unit 4: Materials Requirement Planning Klee Associates, Inc.
4. Enter the Material Number and Plant and press Enter.
Here you can see that materials requirement planning used monthly lot size to calculate the purchase requisitions in quantity rounding values at intervals of 100.
Step 6: Change the rounding value, run single-item, single-level and review the results.
1. To change a material using the stock requirements list for a material, perform following (still in MD04):
Unit 4: Materials Requirement Planning Klee Associates, Inc.
2. Enter the Material Number and Plant and press Enter.
3. Select the menu path Environment Change Material.
4. Enter the new Rounding value and click the button to return back to the stock requirements list.
5. Run single-item, single-level.
6. Evaluate the results in the stock requirements list.
The results of the calculation of the materials requirement planning used the rounding value to generate the supply requirements to meet the demand requirements.
Klee Associates, Inc. Unit 4: Materials Requirement Planning
The material requirements planning file is used to determine which materials to plan and how to plan each material within the planning file. As previously seen, below is the flow of the planning file within materials requirement planning.
The flags set in the planning file determine the status of the material for materials requirement planning. The following flags are set in the planning file:
Record Type – defines if the material is an MRP material or a phantom assembly.
Code – is the low level code used to determine the level of the material during bill of material explosion and thus determines the sequence of planning the material during materials requirement planning.
Material – is the material number.
MRP area – is the area in which the material is planned.
MPS Indicator – defines the material to only be planned using master production scheduling.
Net Change Planning Indicator – determines when there is a change to a material so the material will be planned during a net change run of materials requirement planning. This flag is set if the a goods receipt occurs for the material, if a reservation, purchase order or production order exist and if the goods movement takes place in a MRP storage location.
Net Change Planning Indicator in the planning horizon – determines when there is a change to a material in the planning horizon so the material will be
Unit 4: Materials Requirement Planning Klee Associates, Inc.
planned during a net change planning horizon run of materials requirement planning. This flag is set if the a goods receipt occurs for the material, if a reservation, purchase order or production order exist and if the goods movement takes place in a MRP storage location.
Reset Procurement Proposals – defines that a change has occurred to the procurement elements to trigger materials requirement planning for these elements.
Re-explode BOM – controls that a bill of material has changed and the bill of material should be re-exploded during the next run of materials requirement planning.
Planning Date – is the next date to plan the material in time-phased planning.
In this section, we will review the planning file entries and will review the configuration to activate the system to use the planning file and we will also review the conversion program if MRP areas are turn on in an environment.
Demonstration: Material Requirements Planning File
The materials requirements planning file demonstration displays the planning file entries to review the selections available and to review the flags in the planning file.
Planning File Entries
1. To display the planning file entries, perform one of the following:
Enter transaction code MD21.
Select the SAP menu path: Logistics Production MRP Planning Planning File Entry Display.
Klee Associates, Inc. Unit 4: Materials Requirement Planning
2. Enter the Plant, leave the defaults, and click the button.
Configuration: Material Requirements Planning File
In this configuration demonstration we will review the activation step for the planning file, determine goods movements for the planning file and review options for the planning file when converting to MRP areas.
Unit 4: Materials Requirement Planning Klee Associates, Inc.
This setting activates the planning file and activates materials requirement planning.
1. From the IMG, select the menu path: Production Material Requirements Planning Planning File Entries Activate MRP and Set Up Planning File
Define Planning File entries for goods movements
This setting allows you to always set a planning file entry for any goods movement or set over and under delivery tolerances for setting goods movements to flag the planning file.
1. From the IMG, select the menu path: Production Material Requirements Planning Planning File Entries Define Planning File entries for goods movements
Convert Planning File entries for MRP areas
This program allows you to convert existing planning file entries with MRP areas. There is a test option and a conversion option.
1. From the IMG, select the menu path: Production Material Requirements Planning Planning File Entries Convert Planning File entries for MRP areas
Klee Associates, Inc. Unit 4: Materials Requirement Planning
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