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MRP & Production Planning
Course Objectives
• Understand the principles of Demand Management (DM)
• Define the Materials Requirements Planning (MRP) process
• Describe how to valuate MRP planning runs
• Perform DM and MRP transactions
Module 1: Master Data
Module 2: Demand Management
Module 3: Material Requirements Planning
Module 4: MRP Planning Runs
Course Map
Module 5: Summary
Table of contents
PP flow & Integration
Sales & Ops Planning MRP
Capacity Req.Planning
Long TermCapacity Planning
Demand Management
Production Execution
CO(Cost
Control)
MM – LE(Stock
Control)
QM(QualityControl)
FI /CO MM
Master Data Related Transactions • Practice the following
transactions
– MM03 – Display Material Master– CS03 – Display BOM– CR03 – Display Work Center– CA23 – Display Rate routing– MM03 – Display Production
Version
Module 1: Master Data
Module 2: Demand Management
Module 3: Material requirements Planning
Module 4: MRP Planning Runs
Course Map
Module 5: Summary
Table of contents
What is Demand Management?
• Demand Management is used to determine requirement quantities and delivery dates for finished products
• Demand Management provides a demand program which is used by MRP to generate production plans
• Depending on the planning strategy chosen in the material master, the demand program can use forecasts of demand, actual demand, or combinations of both
• Actual demand is created in sales order t ( t d ) d
What is the DM Process (1)?
• SOP plans are transferred to Demand Management as ‘Independent Requirements’ for end products
• The actual sales orders are for information purpose only and are not considered in planning.
• In case the sales orders significantly vary from the forecasted demand; Planners revise the demand before running MRP to
t f t i d d
Who is Responsible for DM?• Planner (DEM)
– Responsible for managing the demand by comparing the actual demand with the forecast and manipulate the plan based on the actual demand before executing MRP
DM Related Transactions• Practice the following
Transactions– MM03 – Display Strategy– MD63 - Display Independent
Requirements– MD04 - Display Stock Requirements
List– MD74 – Reorganise Independent
Requirements
Module 1: Master Data
Module 2: Demand Management
Module 3: Material Requirements Planning
Module 4: MRP Planning Runs
Course Map
Module 5: Summary
Table of contents
Materials Requirements Planning
• MRP compares the requirements for end products, from Demand Management, with the current stocks and creates planned manufacturing orders
ManualManualentryentry
SOPSOPSalesSales PlanPlan
SOPSOPProductionProduction
PlanPlanMaterialMaterialForecastForecast
CopyCopyanotheranother
planplan
DemandProgram
MRPPlanning levels:
MaterialProduct groupVersions
Planning options:HorizonPeriod splitsHistory
MRP stands for: Materials Requirements Planning.
The function of MRP is to provide material availability, that is, it is used to procure or produce the requirement quantities on time. This process involves the monitoring of stocks and demand, leading to the automatic creation of procurement proposals for purchasing or production.
The main objective of MRP is to determine which material is required, the quantity required and by when it is required.
What is MRP?
What is the MRP Process (1) ?• MRP compares the requirements for end
products, from Demand Management, with the current stocks and planned manufacturing orders
• MRP chooses a Production Version which indicates the Bill of Material and Routing to be used
• MRP then explodes the product BOM’s to determine the ‘dependent requirements’ for intermediate products and purchased raw
What is the MRP Process (2) ?• MRP will normally be run weekly.
• The MRP process assumes infinite capacity– The Rough-Cut Capacity Planning check in SOP
ensures that the loading is broadly correct before MRP runs.
MRP Type • For the MRP procedure, use MRP type PDPDin the material master
• MRP creates planned orders or requisition receipts to balance the demand plan
• Safety stock can be used to cover unplanned requirements
Time
Receipts
Requirements
Who is Responsible for MRP?• MRP Controller
– Responsible for running and operating the material requirement planning to check and track the planned requirement for both finished products and raw material in order to generate Production Orders and Purchasing Requisitions
Module 1: Demand Management
Module 2: Material requirements Planning
Module 3: Master Data
Module 4: MRP Planning Runs
Course Map
Module 5: Summary
Table of contents
Evaluations
There are several options for analyzing the Planning run
MRP list• By material• CollectivelyStock requirements list• By material• CollectivelyPrinted MRP list
Planning Result
MRP list
MRP list
Use the MRP list to analyze the planning resultThe MRP list displays the future stock/requirements situation at the time of the last planning run By using the collective display, you can select a specific MRP list based on plant and MRP controllerAnalyze the exception messages in the MRP list, judge and or solve problemsUse the processing indicator to indicate
Planned order
• Is the output of an MRP run• Are automatically created• Planned orders may be converted to
production / process orders or purchase requisitions
MRP
Planned Order102030
Requirements
MRP Related Transactions• Practice the following exercise
– MD01 Total Planning Run Online– MD02 Single-Item, Multi-Level– MDBT Total Planning in Background– MD07 Stock Requirements List
Collective– MD05 Evaluate MRP List– MD44 Planning Situation Material