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*GeneralCBP is a branch of MRP dealing with all those materials
whose planning is a function of their consumption, as opposed to
how much is currently needed for production or to fulfill customer
demandIn accordance with the above, we will use CBP for less
expensive, less critical components. That is, those less expensive
components that we usually purchase from external vendors (e.g.,
nuts and bolts).
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*MRP Process
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*MRP ProceduresHere you can see the main areas of CBP
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*A Word About SAP Supply Chain Management (SCM-APO)When should
you use CBP and when should we use SCM-APO?
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*What Well Cover Main differences between MRP and CBPMaterials
categorization the ABC approachReorder point planning; planning
based on past consumptionTime-phased planningForecastingPlant MRP
and MRP areasIllustration: Customizing plant parameters
Illustration: Customizing MRP types and lot sizesIllustration:
Customizing MRP areasWrap-up
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*CategorizationCategorization of products is about defining
thedelivery time and the delivery service for eachof the products
in the product program. Categorization of the products is made from
a categorization of the customers and the products they
buy.Subsequently the categories for the finished products are then
linked to the semi-finished and the raw materials respectively, and
later also to suppliersWith categories at each level it is possible
to create a very efficient supply chainProduct Categorization gives
a superb basis for implementing Lean Manufacturing, by clearly
showing the product priority when it comes to flow, inventory,
planning, etc.
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*ABC ApproachOne of the common practices for categorizing
materials is the ABC approachIn principal, the ABC approach says:
Categorize your materials according to the following simple rule:A
A materials are the most expensive and critical materials in your
organizationB B materials are the less expensive, less critical
materials in your organizationC C materials are the non-expensive,
non-critical materials in your organization
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*When to Use CBPCBP deals primarily with the C materials that we
purchaseOne of the purposes of CBP is to create Purchase Orders as
automatically as possible in order to reduce manual intervention in
the purchase processIt is possible to use transaction MIBC (ABC
Analysis for Cycle Counting) as a basis for ABC categorization.
However, it does not take into account the criticality of the
material, and therefore manual work must still be performed.
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*What Well Cover Main differences between MRP and CBPMaterials
categorization the ABC approachReorder point planning; planning
based on past consumptionTime-phased planningForecastingPlant MRP
and MRP areasIllustration: Customizing plant parameters
Illustration: Customizing MRP types and lot sizesIllustration:
Customizing MRP areasWrap-up
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*GeneralReorder point planning should be used with relatively
constant consumption materialsIf the materials consumption is not
constant over time, this method might result in excess stock (the
need to keep high safety stock) or stock shortage
(fluctuations)
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*MethodologyReorder point quantity includes safety stock. The PO
quantity depends on the lot size (e.g., fixed).
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*CalculationMRP compares the quantity in stock + PRs + POs to
the reorder point. There is a shortage if the total quantity is
lower than the reorder point.
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*Chart
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*Forward SchedulingCBP calculates the availability date
depending on lead times from todays date
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*Add External Requirements to MRP calculation
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*Planning Based on Past ConsumptionPlanning based on past
consumption should be used for materials whose future behavior can
be predicted by their past consumptionMaterials with short life
cycle would therefore probably not be a good choice for planning
using this methodGood candidates for planning using this method
might be materials with relatively many consumption periods
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*What Well Cover Main differences between MRP and CBPMaterials
categorization the ABC approachReorder point planning; planning
based on past consumptionTime-phased planningForecastingPlant MRP
and MRP areasIllustration: Customizing plant parameters
Illustration: Customizing MRP types and lot sizesIllustration:
Customizing MRP areasWrap-up
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*GeneralTime-phased planning should be used for materials that
are delivered on specific datesThis method works similarly to
reorder point planning the difference is that specific delivery
dates are taken as parameterTo run this method, a specific calendar
must be created and maintained
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*How Time-Phased Planning Works
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MethodologyTime-phased planning works almost the same way as
reorder point planning, only with specific GR dates
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*What Well Cover Main differences between MRP and CBPMaterials
categorization the ABC approachReorder point planning; planning
based on past consumptionTime-phased planningForecastingPlant MRP
and MRP areasIllustration: Customizing plant parameters
Illustration: Customizing MRP types and lot sizesIllustration:
Customizing MRP areasWrap-up
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*GeneralForecasting can be used to:Predict future consumption
values from old onesCalculate safety stockCalculate reorder
points
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*Forecasting Methods
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*Selection of Forecasting MethodsSelection is done in the
Material Master
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*Uses of Forecasting
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*How Forecasting Works
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*How Forecasting Works (cont.)
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*Backward SchedulingForecasting calculates the date when we
should start purchasing according to the requirement date
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*Using Forecasting for Reorder Point Planning Calculation
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*What Well Cover Main differences between MRP and CBPMaterials
categorization the ABC approachReorder point planning; planning
based on past consumptionTime-phased planningForecastingPlant MRP
and MRP areasIllustration: Customizing plant parameters
Illustration: Customizing MRP types and lot sizesIllustration:
Customizing MRP areasWrap-up
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*Plant MRP and MRP Areas
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*Example 1
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*Example 2
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*Example 3
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*Types of MRP Areas
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*What Well Cover Main differences between MRP and CBPMaterials
categorization the ABC approachReorder point planning; planning
based on past consumptionTime-phased planningForecastingPlant MRP
and MRP areasIllustration: Customizing plant parameters
Illustration: Customizing MRP types and lot sizesIllustration:
Customizing MRP areasWrap-up
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*Configure CBP Forecast Views:Start by Activating the Material
Master MRP
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*Configure CBP Forecast Views:Start by Activating the Material
Master MRP (cont.) There are other IMG activities for all that is
on the screen, but all can be configured in a one-stop shop
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*What Well Cover Main differences between MRP and CBPMaterials
categorization the ABC approachReorder point planning; planning
based on past consumptionTime-phased planningForecastingPlant MRP
and MRP areasIllustration: Customizing plant parameters
Illustration: Customizing MRP types and lot sizesIllustration:
Customizing MRP areasWrap-up
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*Effect of MRP Types
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*Effect of MRP Types (cont.)
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*Effect of MRP Types (cont.)
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*Effect of Lot-Sizing Procedures
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*Effect of Lot-Sizing Procedures (cont.)
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*Effect of Lot-Sizing Procedures (cont.)
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*What Well Cover Main differences between MRP and CBPMaterials
categorization the ABC approachReorder point planning; planning
based on past consumptionTime-phased planningForecastingPlant MRP
and MRP areasIllustration: Customizing plant parameters
Illustration: Customizing MRP types and lot sizesIllustration:
Customizing MRP areasWrap-up
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*Tasks to Perform When Activating MRP Areas
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*Tasks to Perform When Activating MRP Areas (cont.)
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*What Well Cover Main differences between MRP and CBPMaterials
categorization the ABC approachReorder point planning; planning
based on past consumptionTime-phased planningForecastingPlant MRP
and MRP areasIllustration: Customizing plant parameters
Illustration: Customizing MRP types and lot sizesIllustration:
Customizing MRP areasWrap-up
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*ResourcesSAP courses
www.sap.com/usa/services/education/index.epxSAPSCM - Supply Chain
Management Solution OverviewSCM525 - Consumption-Based Planning and
Forecastinghttp://help.sap.comConsumption-Based Planning
(MM-CBP)http://help.sap.com/saphelp_erp60_sp/helpdata/en/7d/c2821c454011d182b40000e829fbfe/frameset.htmProduct
Categorization (ABC
categorization)www.flexinfonet.com/setprice.asp?page=34
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*7 Key Points to Take HomeCategorize your materialsUse CBP for
your C componentsMaterials with relatively constant consumption
should be planned with reorder point planningMaterials with
numerous consumption histories may make use of forecasting to
predict their future consumptionMaterials with specified delivery
dates may use time-phased planningForecasting may be used also to
calculate safety stock and reorder points according to past
consumption figuresCreating a new MRP type can be useful to control
customized planning methodology as combination of standard
methods
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