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PC-MRP: ELEARNING CURRICULUM OVERVIEW &

CBT STORYBOARD

CBT Curriculum: MRP eLearning o CBT Module 1 MRP Overview o CBT Module 2 MD04 Introduction – Stock/Requirements List o CBT Module 3 MD04 – Convert Planned Order to Production

Order o CBT Module 4 – MM Scenario

Target audience: All PC, MRP, MM, ME, and Production Planners (Re-Education)

Version 1.6 (source content: MRP-Overview-CBT-Curriculum Storyboard)

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Table of Contents

eLearning Curriculum & CBT Storyboard – MRP on SAP......................................................6 Executive Overview .................................................................................................................... 6 Curriculum Alignment – ILT/CBT Objectives ........................................................................... 6 

Related Class Assessments and Exercise Questions ................................................... 6 Curriculum Objective .................................................................................................................. 7 Advanced CBT/Curriculum Outline (5 roles) ............................................................................. 7 MRP/CBT Curriculum Overview (Two roles: MRP, PC) .......................................................... 9 

Assessments .............................................................................................................. 10 MRP Curriculum Objectives - General (MRP Certification, Curriculum Goals, Skills & Objectives) ............................................................................................................ 10 

MRP Overview – MRP Introduction (CBT Module 1) ............................................................12 Module 1 Introduction ............................................................................................................... 12 Module Objectives ..................................................................................................................... 12 MRP Controller Responsibilities - Sarbanes-Oxley Act of 2002 .............................................. 12 LetMeTry ................................................................................................................................... 13 MD04 – Display Stock/Requirements list ................................................................................. 13 

Stock Requirements Screen (Initial) ......................................................................... 13 Stock/Requirements List (sample output) ................................................................. 14 

LetMeTry ................................................................................................................................... 15 MD04 Setup (PC-MRP) ............................................................................................................ 15 

The MRP Role: SAP Access..................................................................................... 15 LetMeTry ................................................................................................................................... 15 

Sort by ‘Date of 1st Requirement’ ............................................................................. 15 Configure MMBE and MB51 ................................................................................... 16 

LetMeTry ................................................................................................................................... 16 Material Resource Planning - Overview ................................................................................... 16 MPS/MRP Concepts .................................................................................................................. 16 MRP Output ............................................................................................................................... 16 MRP Planning ........................................................................................................................... 17 LetMeTry ................................................................................................................................... 17 Material Master – Material Types ............................................................................................. 17 SAP Groups and Material Types ............................................................................................... 17 

Why is Material Type Important? ............................................................................. 17 Material Planning Pyramid ........................................................................................................ 18 Serial Vs. Date Effectivity ......................................................................................................... 18 Common SAP Groups and Material Types ............................................................................... 19 

MTO Serial Effectivity – MAKE MTO (non-Master Scheduled) ............................ 20 MTO Serial Effectivity – MAKE End-item (Master Scheduled) ............................. 20 GPD Serial Effectivity – MAKE GPD (SEPARABLE) ........................................... 20 GPD Serial Effectivity – MAKE GPD (INSEPARABLE) ....................................... 21 GPD Serial Effectivity – BUY GPD (Purchased Assy or Kit) ................................. 21 MTS Date Effectivity – BUY MTS (Purchase Assy. or KIT) .................................. 22 MTS Date Effectivity – BUY DETAIL (Purchase Parts) ........................................ 22 

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MTS Date Effectivity – MAKE DETAIL (w/o Supplier 1st Cut) ............................. 22 MTS Date Effectivity – MAKE MTS (Nested Parts) ............................................... 23 MTS Date Effectivity – MAKE MTS (Supplier 1st Cut DETAIL) .......................... 23 

LetMeTry ................................................................................................................................... 23 Dependent & Independent Requirements .................................................................................. 23 

BUY Parts ................................................................................................................. 24 Dependent Requirements .......................................................................................... 24 Stock replenishment .................................................................................................. 24 

Confirming Workcenter Operations (running labor) ................................................................. 25 LetMeTry ................................................................................................................................... 25 Cross-Plant Planning ................................................................................................................. 25 

Cross-Plant ‘Stock Transport Order’ (STO) ............................................................. 26 Interplant planning .................................................................................................... 26 Special Procurement Key .......................................................................................... 27 

SPK and Lead Time Values ...................................................................................................... 27 Example: MM Setups for Cross Plant Purchase Orders – STO (SPK = 4X) .......... 28 Example: MM Setups for Inter-Plant Production Orders (SPK = 8X) ..................... 28 

LetMeTry ................................................................................................................................... 28 Converting Planned Orders to Production Orders (MD04, CO41) ........................................... 28 

MAKE Parts - Production Orders ............................................................................. 28 LetMeTry ................................................................................................................................... 29 MRP List Overview (MD06) ..................................................................................................... 29 

The MRP List is ‘static’ ............................................................................................ 29 LetMeTry ................................................................................................................................... 30 Stock/Requirements List (MD04) ............................................................................................. 30 

MD04 Set UP: Reminder .......................................................................................... 31 MD04 is ‘dynamic’ ................................................................................................... 31 

Example: MD04 ........................................................................................................................ 31 Examples: MD04 Navigation .................................................................................................... 31 

MD04 Navigation and usage – con’t ........................................................................ 35 Deployment horizon.................................................................................................. 36 

LetMeTry: MD04 Navigation ................................................................................................... 37 MD04 Screen elements, fields and attributes ............................................................................ 37 What can we learn from this display? ....................................................................................... 37 

Example: MRP Element data .................................................................................... 38 Date ........................................................................................................................... 38 MRP Elements .......................................................................................................... 38 Dependent Requirements .......................................................................................... 38 Available qty. ............................................................................................................ 39 

Common MRP elements ............................................................................................................ 39 LetMeTry ................................................................................................................................... 40 Availability Checking ................................................................................................................ 40 LetMeTry ................................................................................................................................... 41 OrdRes Vs. DepReq .................................................................................................................. 41 LetMeTry ................................................................................................................................... 41 DepReq (MD13 – Display Planned Order) ............................................................................... 41 

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LetMeTry ................................................................................................................................... 42 Display Period Totals (Production rate?) .................................................................................. 42 

‘Production Rate’ should equal ‘Demand’ ............................................................... 42 Monitor Production ................................................................................................... 42 

Example: Monitor Production rates ........................................................................................... 43 Example: Display monthly totals .............................................................................. 43 

Verify Receipts exceed Requirements ....................................................................................... 44 Example: Total receipts match the total requirements .............................................. 44 

LetMeTry ................................................................................................................................... 44 Period Totals: Fields .................................................................................................................. 44 

Period details ............................................................................................................. 44 Range of coverage ..................................................................................................................... 45 

Example: Range of coverage .................................................................................... 45 Actual coverage ........................................................................................................ 45 

LetMeTry ................................................................................................................................... 46 GR/AV (Toggle Button) ............................................................................................................ 46 

Example: GR Vs. AV ............................................................................................... 46 Many paths to the same end ...................................................................................................... 47 Exception codes: 06 and 07 (Start/Finish date in the past)........................................................ 47 

Auto Kanban ............................................................................................................. 48 Order Report (PldOrd) ............................................................................................................... 48 

Example: Planned Order Report ............................................................................... 49 Module Summary.........................................................................................................................49 

Next Steps .................................................................................................................................. 49 Module Assessment ......................................................................................................................50 MD04 – Stock/Requirements List (CBT Module 2) ..................................................................51 

Module Introduction .................................................................................................................. 51 Module Objectives ..................................................................................................................... 51 Stock Requirements Screen ....................................................................................................... 51 Drill-Down: CO03/CO02 .......................................................................................................... 52 Material Master Screen (brief) .................................................................................................. 52 

Module Summary.........................................................................................................................54 Next Steps .................................................................................................................................. 54 

Module Assessment ......................................................................................................................55 MD04 – Converting Planned Orders to Production Orders (CBT Module 3) .......................56 

Module Introduction .................................................................................................................. 56 Module Objectives – MD04 (Converting Planned Order to Production Orders) ...................... 56 Scenario: MRP Examples .......................................................................................................... 56 Resources and References (list) ................................................................................................. 56 Related MRP Class Exercises.................................................................................................... 56 Related SJI’s (MRP Planner) ..................................................................................................... 56 Terms and Definitions ............................................................................................................... 57 MRP Controller Responsibilities ............................................................................................... 57 MRP List Screen ........................................................................................................................ 57 Production Order Create Screen - CO40 ................................................................................... 57 Routing Display Screen: ............................................................................................................ 58 

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Save & Release .......................................................................................................................... 58 Module Summary.........................................................................................................................60 

Next Steps .................................................................................................................................. 60 Module Assessment ......................................................................................................................61 MD04 – Scenario: Resolve MM problem (CBT Module 4) ......................................................62 

Module Introduction .................................................................................................................. 62 Module Objectives – MD04 Scenario ....................................................................................... 62 Scenario: MRP Examples .......................................................................................................... 62 Resources and References (list) ................................................................................................. 62 Related MRP Class Exercises.................................................................................................... 62 Related SJI’s (MRP Planner) ..................................................................................................... 63 Terms and Definitions ............................................................................................................... 63 MRP Controller Responsibilities ............................................................................................... 63 Scenario Introduction ................................................................................................................ 63 Storyboard: Assessment Q#13 ................................................................................................... 63 MD04 Storyboard - Scenario ..................................................................................................... 63 

Parameter Effectivity ................................................................................................ 63 Why is this ‘52’? How to fix this? ........................................................................... 63 

Module Summary.........................................................................................................................65 Next Steps .................................................................................................................................. 65 

Module Assessment ......................................................................................................................66 Curriculum Summary .................................................................................................................67 

Next Steps .................................................................................................................................. 67 

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eLearning Curriculum & CBT Storyboard – MRP on SAP

Executive Overview

After careful review of existing Goodrich AeroStructures Group training programs and user requirements of the SAP system, the ‘MRP Overview’ CBT has been approved by Goodrich AeroStructures Group (ASG) and project stakeholders from the ASG Excellence Center.

This document provides a comprehensive overview of curriculum requirements for PC/MRP and associated roles, and concludes with the CBT Storyboard, i.e. standard screenshots and template settings for the “MRP Overview” CBT.

Additionally, outlines are provided for each of the additional CBT modules and lessons, as defined by this curriculum.

Curriculum Alignment – ILT/CBT Objectives

Goals and objectives of these courses are derived from customer documents (e.g. Re-Education PDPR), and align with recently created Project Plans, Standard Job Instructions (SJI’s), and CCC Best Practices for SAP/MRP systems and PC/MRP users. Key to successful curriculum design and deployment are SME reviews and developer notes obtained during Instructor-Led Training courses, as well as recent student assessments and updated partner feedback. Each CBT module provides fundamental SAP skills and knowledge required

to perform daily MRP-related tasks and job functions. An important feature of the CBT curriculum is conformity (alignment) with existing CCC Best Practices, plus an updated ILT curriculum, as required to offer certified training for all content, exercises, and student certifications/assessments. Note: 24+ Cases and ILT course lessons are directly related to this curriculum

(based upon 07/06 SAP/PC-MRP training, as reflected in the CBT design documents).

Related Class Assessments and Exercise Questions

For the complete list of ILT class assessment questions, course exercises, and SJI’s which are directly related to this course refer to filename:

Appendix-MRP-related-AssessmentQuestions.doc

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Curriculum Objective

Upon successful completion of the Advanced PC-MRP curriculum, including all demonstrations and exercises, a majority of Re-Education students shall be able to pass the MRP-Planner Certification Assessment, version 1.0. Advanced CBT/Curriculum Outline (5 roles)

The PC-MRP CBT eLearning curriculum includes the following CBT courses and modules: 1. MRP – PC/MRP Introduction, terms and definitions, MD04, Key Use Cases

(1 – 5 cases) a. CBT Module 1: MRP Overview

(20 – 30 minutes, plus assessment) i. MPS/MRP, Production cycle, Order types, Cost collectors, Plant

codes b. CBT Module 2: MD04 Introduction

(30 – 45 minutes, plus assessment) i. MD04, navigation of screen/fields ii. MM drill-down (MM, routing)

c. CBT Module 3: Stock requirements list (20 – 30 minutes, plus assessment)

i. MD04 fields and attributes ii. MD04 usage and examples

d. CBT Module 4: Converting Planned Orders to production Orders (15 – 20 minutes, plus assessment)

i. SJI 16 ii. Converting Planned Orders to production Orders

e. *CBT Module 5: Scenario - Resolving Exception 52 codes (15 – 20 minutes, plus assessment)

i. Scenario: Examine order status to resolve outstanding issues

2. MM – Material Master Refresh; Introduction, terms and definitions, MM03, Key Use Cases (1 – 5 cases)

a. CBT Module 1: MM Refresher

(30 – 45 minutes, plus assessment) i. MM concepts, MM03 key screens/fields ii. Usage and examples

b. **CBT Module 2: Z_MM02_MRP - Use Case (20 – 30 minutes, plus assessment)

i. SJI ii. Update to MRP Values in the MM for MAKE Parts

3. **SAP Setup and Navigation (MRP-specific setup and SAP navigation)

a. CBT Module 1: MRP-specific setup and SAP navigation skills

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(15 – 20 minutes, plus assessment) i. SAP set-up procedures for using SAP transactions; ii. MRP-specific set ups and skills, such as working COGI’s

(Exceptions), viewing and modifying orders, managing routing/control keys, or updating/correcting the material master.

4. ***MRP Overview - Create/Release Orders

a. CBT Module 1: Converting Planned Orders to Production Orders (MD04) (15 – 20 minutes, plus assessment)

i. SJI 16 ii. Prod Ord, convert->CO40

b. CBT Module 2: CO01/CO10 – Create production order (30 – 45 minutes, plus assessment)

i. SJI 22 ii. CO01/CO10

c. CBT Module 3: CO41 – Release multiple orders (15 – 20 minutes, plus assessment)

i. SJI 24 ii. CO41->Multiple Release of Orders

5. ***MRP - MDVP

a. CBT Module 1: MDVP Planned Order Shortage report (15 – 20 minutes, plus assessment)

i. SJI 39 ii. MDVP Planned Order Shortage report

b. CBT Module 2: MDVP Transaction Results (15 – 20 minutes, plus assessment)

i. SJI 40 ii. Obtain results from Transaction MDVP

6. ***MRP - Display Production Orders

a. CBT Module 1: Display Production Orders (20 – 30 minutes, plus assessment)

i. SJI15 ii. Display Production Orders

7. ***MRP - View/Change Order status/TECO

a. CBT Module 1: View/Change Hold Codes/Status (20 – 30 minutes, plus assessment)

i. SJI 20 ii. CO02 View/Change Hold Codes/Status

b. CBT Module 2: TECO (20 – 30 minutes, plus assessment)

i. SJI 21 ii. CO02 TECO

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8. ***MRP - Reports

a. CBT Module 1: Introduction to Reports (20 – 30 minutes, plus assessment)

i. Cypress: Open Orders, COOIS, ZPPSTOCK, ZPPWIP

MRP/CBT Curriculum Overview (Two roles: MRP, PC)

The MRP Overview is an intermediate curriculum deployed as a series of CBT modules, and presents key concepts and SAP transactions required to complete introductory PC-MRP / CBT curriculum. The MRP Overview is based on PC-MRP course exercises and assessments. This course presents fundamental concepts, and provides students the

opportunity to practice SAP transactions and MRP-specific job functions and skills.

Course name: MRP Overview a. CBT Module 1: MRP Overview

(20 – 30 minutes, plus assessment) ii. MRP Concepts, MPS/MRP, Production cycle, Order types, Cost

collectors, Plant codes b. CBT Module 2: MD04 Introduction

(30 – 45 minutes, plus assessment) iii. MD04, navigation of screen/fields iv. MM drill-down (MM, routing)

c. CBT Module 3: Stock requirements list (20 – 30 minutes, plus assessment)

iii. MD04 fields and attributes iv. MD04 usage and examples

d. CBT Module 4: Converting Planned Orders to production Orders (15 – 20 minutes, plus assessment)

iii. SJI 16 iv. Converting Planned Orders to production Orders

e. *CBT Module 5: Scenario - Resolving Exception 52 codes (15 – 20 minutes, plus assessment)

ii. Scenario: Examine order status to resolve outstanding issues Course name: MM Refresher – Material Master Refresh

a. CBT Module 1: MM Refresher (30 – 45 minutes, plus assessment)

v. MM concepts, MM03 key screens/fields vi. Usage and examples

As indicated, each CBT course consists of individual modules.

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Each module begins with an Introduction and Objectives, followed by an interactive demonstration, including presentation of all data points (a series of individuals tasks and instructions, as compiled from the Performance Objectives.

Each module is 30-45 minutes, average. Throughout each module, ‘knowledge checks’ are presented to emphasize

the key learning points and skills, and challenge student abilities to increase comprehension and retention.

Let Me Try screens further challenge student abilities and skills, specifically invoking each required SAP transaction.

Each CBT module may include built-in animations and interactive screens to emphasize key learning points and exercise important skills.

A Summary Exercise is presented at the end of each CBT module. Summary includes next steps for completing the overall PC-MRP

Curriculum. Assessments

Assessments validate all required SAP skills and knowledge, as needed to successfully complete MRP-related tasks and job skills, as per SJI’s and Best Practices. Assessments include both SAP knowledge and skills-based challenges. After each module has been completed, an assessment is performed.

Students are presented with a question, or asked to solve a work-related problem, based upon SJI’s, Best Practices and workplace scenario’s.

Each assessment question targets the SAP skills described during the CBT module, and a correct response is required to successfully complete the MRP assessment and receive certification.

Examples: SAP-related knowledge assessments target fundamental information about

SAP transactions, standard fields, and other required attributes. MRP-related skills assessments validate students are able to perform SAP

tasks, and successfully complete transaction scenario’s, such as creating a new material master, converting planned orders to production orders, or resolving exception codes.

MRP Curriculum Objectives - General (MRP Certification, Curriculum Goals, Skills & Objectives)

General SAP Application and Navigation skills Entering general SAP transactions and demonstrating MRP-specific

knowledge for the results of each transaction For high-impact ‘scenario’s’ (i.e., SME-approved use cases), each student

shall be able to identify the required transaction(s) and related SJI(s), and

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successfully complete the SAP workstation operation (i.e., students able to execute a complete, atomic transaction, problem solving whole scenario’s, and navigating each task, for each use case, from start to finish, and while problem solving to ensure end-to-end completion), including:

o Entering (or ‘touching’) all key fields to activate and “drill-down on all key functions, help screens and error messages (i.e., MRP-specific fields and attributes), as required to successfully complete each transaction, and verify results of each successful operation.

o Interpret transaction results to ensure proper MRP workflows are successfully in-process and/or completed.

CCC/Partner Alignment is based upon current SME communications and services, and call logs (i.e., based upon capturing content/context of key support calls, datamining call logs and interdepartmental email’s, Requests-For-Enhancements, customer communications, and feedback during Go-Live events and other transitions)

Assess student performance> Utilize LMS statistics, plus correlate to ILT course rosters; Measure performance in 3 key phases: prior-to Go-live, during Go-live, and 1 - 3 months after Go live; Correlate to students “with and without” CBT pre-requisites; Based on student profile, roles being captured.

Provide follow-up/follow-through ‘learning paths’ (e,g,: student communications and mentoring, Re-EDU coaching plans, re-assessment & certification).

Annual and Semi-Annual Certification and EDU Goals: Re-engage students, Re-certification

CBT Intro Advanced e-Learning ILT & “Distant Mentors” Re-certify

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MRP Overview – MRP Introduction (CBT Module 1)

Module 1 Introduction

This module describes MRP controller responsibilities and introduces key MRP concepts. MD04 screens, fields, and attributes are presented. Each topic concludes with associated LetMeTry screens designed to exercise key skills learned during the presentation.

Module Objectives

Enable SAP/Re-EDU students to better prepare for Instructor-Led Training (ILT) by presenting (and assessing) basic views and skills necessary to: Perform fundamental SAP transactions and queries, in fulfillment of job

requirements, and in accordance with CCC best practices and PC-MRP curriculum objectives.

For given material numbers, display the stock/requirements list (MD04), identify all key fields, including options or attributes (MRP-specific).

Determine the Material Type, requirements for MAKE vs. BUY parts, and key planning differences for each.

MRP Controller Responsibilities - Sarbanes-Oxley Act of 2002

Each MRP Controller is responsible for correcting and maintaining Material Master records that include their MRP Controller code (i.e., the MRP Controller code indicates who ‘owns’ the MM record). Each MRP Controller is responsible for maintaining appropriate back up (i.e.,

audit) documentation, and each controller must validate Material Master changes to MM records that include their MRP Controller code

In general, all companies are required to maintain a complete audit trail, in compliance with the Sarbanes-Oxley Act of 2002. Specifically, for all WIP a full audit trail (including all shop paper) must be

correct, and must accompany each part or assembly. As an MRP controller, everyday you may be required to: Release multiple orders (50, 75, 100+ orders, per day).

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Examine material master data, planned and production orders, to resolve outstanding issues and problems, ensure ‘lean’ (efficient) operations, and prevent production bottlenecks and waste.

During these examinations, view multiple SAP screens to view orders/material master data that may require modifications

Verify results of transactions and operations (i.e., follow-up/follow-through), monitoring MRP-related activities to ensure recommendations to ME’s, mechanics, etc. has resolved

Sarbannes-Oxley (sarbox) compliance requires accountability information be maintained for all WIP, including ‘justifications’, for example, when parts are ‘scrapped’. Per Sarbox, the disposition of all materials (i.e., material, components, parts, and assy’s) must be declared/known at all times. Each corporation shall establish and maintain an audit committee and full

audit trail of capital assets, expenditures, such as materials, parts, and assy’s that are WIP.

LetMeTry

Review key skills and knowledge presented in previous section.

MD04 – Display Stock/Requirements list

For PC-MRP, MD04 is the most common transaction. MD04 displays the Stock/Requirements List. The Stock/Requirements list is dynamic. Each time the transaction runs, MD04 provides the most recent view of materials and orders. For a given material, the MD04 screen provides a ‘real time’ (dynamic) view

of stock levels and material requirements (i.e., Stock/Requirements list). Stock Requirements Screen (Initial)

In the SAP Command field, enter: /NMD04

Next, click the (Enter) icon.

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Next, enter valid material and plant numbers.

Click the (Enter) icon to validate each entry, and to display the stock and requirements list for the specified material and plant.

Note: For MRP Controllers, the Individual access view is commonly selected (i.e., the Collective access is rarely used). Stock/Requirements List (sample output)

The example MD04 screen shows: “Stock/Requirements List as of 11:09 hrs”

(i.e., a “dynamic” view of stock levels and requirements)

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LetMeTry

Review key skills and knowledge presented in previous section.

MD04 Setup (PC-MRP)

For MRP Controllers, several changes should be made to the SAP settings, and saved for future sessions. The following section describes how to set up SAP for MRP-specific tasks, including: Verify access to MRP screens (MRP Role assignment) Configure MMBE and MB51 (add buttons to MD04 screen) Verify sort ‘Date of the 1st requirement’ Note: In preparation for future exercises, and to help MRP controllers perform SAP_related tasks and functions, the following set up is recommended: Students must set up their SAP environments according to the following

steps, to ensure these examples match their settings. The MRP Role: SAP Access

Prior to performing MRP-related tasks and SAP functions, verify your SAP login account has the required permissions to access MRP-specific transactions and views. Note: If you double-click on the OrdRes, but do NOT see the MRP view described, it is probably due to a lack of permissions (i.e., the account does not have the correct SAP/MRP role assignment). LetMeTry

Review key skills and knowledge presented in previous section. Sort by ‘Date of 1st Requirement’

By default, MD04 displays each record sorted in ‘date order’. For most controllers, however, it is more meaningful to sort (and display) the list based upon the ‘Date of the 1st requirement’ (i.e., sorting the list in this manner will cause orders with the most recent requirements to appear at the top of the list).

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Configure MD04 settings to display orders based upon the ‘Date of 1st Requirement’. Configure MMBE and MB51

MRP Controllers require access to MMBE and MB51 Verify access (i.e., proper permissions) Configure MD04 view to include these MRP-specific transactions/functions LetMeTry

Review key skills and knowledge presented in previous section. Material Resource Planning - Overview

Now that we’ve completed MMBE and MB51 setup and introduced the basic MD04 screens, recall that when the MRP cycle completes several important things occur. MPS/MRP Concepts MD06 screen MRP List

o Static Vs. Dynamic Transactions and reports

MPS/MRP Concepts

o Master planning and scheduling (brief) MRP Output

The output from each MRP planning run includes: MRP (results of planning run) Stock Requirements List (MRP List) Planned Orders (automatically created) Purchase Requisitions (automatically created ) Schedule Lines

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MRP Planning

The MRP Planning processes for SAP are executed daily (automatically, at specified time of day), or “on demand” (manually). Materials are planned beginning at the highest level of ‘independent

requirements’. MRP analyzes demand from sales orders and forecasts and creates planned

orders to satisfy requirements not already met by inventory or firm orders. Planned orders consist of order qty, start, finish dates and WBS MRP can create purchase requisitions or schedule lines (if the purchased

material is part of an existing scheduling agreement with a vendor) LetMeTry

Review key skills and knowledge presented in previous section. Material Master – Material Types

REVIEW: Common material and part types include: End Item – Z001 (Make or Buy) Assembly (Separable) – Z002 (Make or Buy) Bonded Assembly (Inseparable) – Z003 (Make or Buy) Detail – Z004 (Make or Buy)

SAP Groups and Material Types

As part of the Material Master, each material is assigned a specific SAP Group and material type. The SAP group and material type is defined for each material. The SAP group and material type is defined in the material master. Why is Material Type Important?

When examining MRP Planning output using MD04, it is important to know the key attributes for each material, such as the Material Type, MRP Profile, Material Group, Item Category, MRP Group, I/C Indicator, and Production Scheduler profile. Taken as a whole, these fields determine which views are displayed, and

which attributes are important to consider when troubleshooting orders or resolving production problems.

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Material Planning Pyramid

Insert Graphics Serial Vs. Date Effectivity

Param Effectivity:

Assessment Q #13

Why is this ‘52’? How to fix this? For AG, if part is a GPD (or higher, i.e., MTO), param effectivty is required! Examine MD04. If the order was a GPD, then WBS ‘G-01’ would appear next to the order number. Note: MTS material will NOT have param effcvty (as noted previously, Order # 0010460925 is MTS )

.

How to fix this?

The MM proves that 221-4950-955 is a GPD , since MRP Group is ZMBD (ZMBD = GPD/Bond assy) MD04, click on the OrdRes line item, to display “Additional Data for MRP Element”

Click (Change element, or <F8>) to go to CO02, enter ‘2’ in the “S” (Special Procurement) column

Click on Component Overview icon to display; For line item/Component 221-4950-955 enter a ‘2’ for Special Procurement field;

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Click SAVE Note: WARNING displayed - “Only collective requirements are possible for material 221-4950-955”

Click on (Enter) to over-ride the warning message

Online Help: Only collective requirements are possible for material 221-4950- 955 ; For material 221-4950-955 only collective requirements are possible according to the material master. Procedure: You should check whether the individual requirements are necessary for this material

Or, you may click the refresh button to update the screen, and confirm the correction was entered properly.

.

Result: If ‘2’ is entered/saved, the next time MRP runs, the E-code 52 (i.e., MD04, PldOrd, “0010460925/STCK” with E-code 52), will be not appear.

Common SAP Groups and Material Types

The following list shows commonly used SAP Groups and their associated Material Types. MTO Serial Effectivity (Material Type Z001) – MAKE MTO– Non-Master

Scheduled MTO Serial Effectivity (Material Type Z001) – MAKE End-Item – Master

Scheduled GPD Serial Effectivity (Material Type Z002) – MAKE GPD – SEPARABLE

Assy. GPD Serial Effectivity (Material Type Z003) – MAKE GPD – INSEPARABLE

Assy. GPD Serial Effectivity (Material Type Z002/ Z003) – BUY GPD - Purchased

Assy/Purchased Kit MTS Date Effectivity (Material Type Z002/Z003) – BUY MTS – Purchase

Assy/Purchased KIT MTS Date Effectivity (Material Type Z002/Z003) – BUY DETAIL (Purchase

Parts) MTS Date Effectivity (Material Type Z004) – MAKE DETAIL w/o Supplier 1st

Cut MTS Date Effectivity (Material Type Z004) – MAKE MTS Nested Parts

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MTS Date Effectivity (Material Type Z004) – MAKE MTS Supplier 1st Cut DETAILS

<ED: Students must be able to define basic info as shown, above; MAKE MTO End-items, Mat Type = z001, Serial Effective; Batch processing; Individ/Coll Indicator = ‘Individual’…. <…GOAL: For each material type, present an MD04 screen example, and discuss details (per type, key fields and attributes)……>

MTO Serial Effectivity – MAKE MTO (non-Master Scheduled)

MAKE MTO_Majors; Non-master scheduled Serial Effectivity Key Attributes:

o Material Type Z001 o *** MRP Profile = ZM02 o Material Group = MAKE o Item Category = ZMTO o Batch processing o MRP Group = ZSMA (MAKE) o Individual Collector (I/C Indicator = 1) o Production Scheduler Profile = ZP0011

Examples: see file, xxx-notes.doc MTO Serial Effectivity – MAKE End-item (Master Scheduled)

MAKE MTO – Major/End-Item; Master scheduled Serial Effectivity Key Attributes:

o Material Type Z001 o *** MRP Profile = ZM01 o Material Group = MAKE o Item Category = ZMTO o Batch processing o MRP Group = ZSMA (MAKE) o Individual Collector (I/C Indicator = 1) o Production Scheduler Profile = ZP0011

Examples: see file, xxx-notes.doc GPD Serial Effectivity – MAKE GPD (SEPARABLE)

MAKE GPD – Separable assy Serial Effectivity Key Attributes:

o Material Type Z002 o *** MRP Profile = ZM03 o Material Group = MAKE o Item Category = ZGPD

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o Batch processing o MRP Group = ZMSA o Individual Collector (I/C Indicator = 1) o Production Scheduler Profile = ZP0021/ ZP0022 o Notes: ZP0022 refers only to sub-assy’s with 1st cut raw stock as a

component Examples: see file, xxx-notes.doc GPD Serial Effectivity – MAKE GPD (INSEPARABLE)

MAKE GPD – Inseparable Assy/Bond/Mach/Weld Serial Effectivity Key Attributes:

o Material Type Z003 o *** MRP Profile = ZM04 o Material Group = MAKE o Item Category = ZGPD o !!!! NOT Batch processed !!!! o MRP Group = ZMBD o Individual Collector (I/C Indicator = 1) o Production Scheduler Profile = ZP0021 o Notes: Never CID controlled

Examples: <….. expand to show example materials in this category …>

GPD Serial Effectivity – BUY GPD (Purchased Assy or Kit)

BUY GPD – Purchased Assy/Purchased Kit Serial Effectivity Key Attributes:

o Material Type Z002/Z003 o *** MRP Profile = ZB02 o Material Group = <…. varies …..> o Item Category = ZGPD o !!!! NOT Batch processed !!!! o MRP Group = ZPPA o Individual Collector (I/C Indicator = 1) o Production Scheduler Profile = ZP0021 o Notes: ZPPA since: 1) US-buy for Toulouse; where US pays for part;

2) ZGPD is always a ZGPD; When part is MAKE assy, and changes to BUY, it will maintain GPD identify via ZPPA; 3) If we down-grade a ZPMA to a ZPPA ; 4) If a Purchase KIT and contains a GPD component, KIT is, a GPD ZPPA part

Examples: see file, xxx-notes.doc

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MTS Date Effectivity – BUY MTS (Purchase Assy. or KIT)

BUY MTS – Purchase Assy/Purchased KIT Date Effectivity Key Attributes:

o Material Type Z002/Z003 o *** MRP Profile = ZB03 o Material Group = <….varies …. > o Item Category = NORM o MRP Group = ZPA/ZPB/ZPC (BUY) o Group Collector (I/C Indicator = 2) o Production Scheduler Profile = ZP0031 o Notes: Purchase assy and purchased kits (289, 279, 283) PKITS are

parts bought outside from supplier, and supplier now wants to supply them as a kit (dummy p/n assigned)

Examples: see file, xxx-notes.doc MTS Date Effectivity – BUY DETAIL (Purchase Parts)

BUY MTS – BUY DETAIL (Purchase Parts) Date Effectivity Key Attributes:

o Material Type Z004 o *** MRP Profile = ZB03 o Material Group = <….varies …. > o Item Category = NORM o MRP Group = ZPA/ZPB/ZPC (BUY) o Group Collector (I/C Indicator = 2) o Production Scheduler Profile = ZP0031 o Notes: Build to print and Class 14 parts; Includes consumed aids 280

grp that need to drive requirements Examples:

<….. expand to show example materials in this category …> MTS Date Effectivity – MAKE DETAIL (w/o Supplier 1st Cut)

MAKE MTS DETAIL w/o Supplier 1st Cut Material Date Effectivity Key Attributes:

o Material Type Z004 o *** MRP Profile = ZM05 o Material Group = MAKE o Item Category = NORM o MRP Group = ZMDT o Group Collector (I/C Indicator = 2)

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o Production Scheduler Profile = ZP0031 Examples:

<….. expand to show example materials in this category …> MTS Date Effectivity – MAKE MTS (Nested Parts)

MAKE MTS - Nested Parts Date Effectivity Key Attributes:

o Material Type Z004 o *** MRP Profile = ZM06 o Material Group = MAKE o Item Category = NORM o MRP Group = ZMDT o Group Collector (I/C Indicator = 2) o Production Scheduler Profile = ZP0032 o Notes: Nested, Sched/Margin key 003/ Includes Siamese parts

Examples: <….. expand to show example materials in this category …>

MTS Date Effectivity – MAKE MTS (Supplier 1st Cut DETAIL)

MAKE MTS Supplier 1st Cut DETAIL Date Effectivity Key Attributes:

o Material Type Z004 o *** MRP Profile = ZM07 o Material Group = MAKE o Item Category = NORM o MRP Group = ZMDT o Group Collector (I/C Indicator = 2) o Production Scheduler Profile = ZP0031

Examples: <….. expand to show example materials in this category …>

LetMeTry

Review key skills and knowledge presented in previous section. Dependent & Independent Requirements

Independent requirements are Sales Orders and Planned Independent Requirements (PIRs)

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BUY Parts

MRP creates planned orders for purchased parts in production plants. After MRP runs, the buyer must convert each Planned Order to a Purchase

Requisition, and then a PO (purchase order) is created. For Spares, MRP creates purchase requisitions directly (buyer only needs to

convert it to a purchase order). Dependent Requirements

Each requirement represents stock or components that are consumed (deducted) out of inventory.

For each planned order, the BOM is exploded and ’dependent requirements’ are created for each component (based upon all components and required quantities).

o Later, individual BOM components and sub-assemblies are further processed (and exploded) by MRP to determine if any additional planned orders should be created (by MRP) to fulfill these dependent requirements.

Stock replenishment

Each stock replenishment represents stock or components to be added to the existing inventory.

Planned Orders and Purchase Requisitions are converted to ‘firm orders’ (production or purchase orders), and then received into stock (i.e., received as replenishments).

BOM

Planned Order

Dep.. Req’t.

Dep.. Req’t.

Dep.. Req’t.

Planned Order

Planned Order

Planned Order

DepReqt

DepReqt

DepReqt

Purchase Requisition

Purchase Requisition

Purchase Requisition

MRP

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o Example: MRP replenishments only occur after a Purchase Requisition has been created (i.e., a Planned Order does not result in stock replenishment).

o Example: MRP schedules each requirement for all Production Orders.

<.. expand; describe how requirements are calculated, after replenishments are made, then reported …> <…. Need: describe and clearly define diff’s between MAKE/BUY;>

Confirming Workcenter Operations (running labor)

For each order, routing information specifies all workcenter operations to be performed. While examining a production order (i.e., using CO03 to display an order), the

routing information for the order can be displayed by clicking the (Operation Overview) icon.

Labor is run on the shop floor (i.e., labor is confirmed) using Autotime / Datapass (U.S.-based)

Once a workcenter operation has been completed and confirmed, inventory is automatically deducted from stock and labor is applied to the order.

<.. expand: Confirmations, stock deductions/replenishments and other business logic or triggers; MD04 status update/routing shows CNF or PCNF, as appropriate, etc.……>

LetMeTry

Review key skills and knowledge presented in previous section. Cross-Plant Planning

Special procurement key (SPK) settings and lead times are defined in the MM for each part. Production in alternate plants is only used in US plants with production

orders. MM values at the planning plant are used to create the production order and drive the requirement at the production plant. Planning plant has SPK 8* (where ‘*’ is the code that determines the

producing plant) Profit center is from the planning plant The production order is visible on MD04 in both plants.

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The producing plant contains the BOM and routing. Production orders are stocked directly in the planning plant. MM: The special procurement key is defined in the receiving (planning) plant material master Cross-Plant ‘Stock Transport Order’ (STO)

Used for: Planned transfers across company codes Purchased spares Note: Provisioning is responsible for managing Stock Transfer Orders (STOs) (e.g.: For parts stocked in both Chula Vista and Toulouse, STOs are used to manage transfers from one spares plant to the other). MM values on the planning plant are used to create the STO and drive the requirement into another plant.

Requesting plant has SPK 4* (where ‘*’ is the code that determines the sending plant.

The STO is visible on MD04 in both plants (as a requirement and as a replenishment)

The sending plant contains the BOM/Routing, or the supplier PO Orders are stocked in the sending plant, then issued to the requirement for the STO. Notes: STOs between plants are always non-priced (ZSTO). The standard value or the MAP (moving avg price) value of the material is transferred if the values for the plants are different or if there are different profit centers for MTS parts. GPD part transfers: The actual cost is transferred to new WBS automatically. MTO movements: There is no cost transfers for MTO movements across plants. STOs into Toulouse: normally non-priced (ZSTO) STOs from Toulouse: normally priced (ZICO) Interplant planning

When Interplant planning, the supplying plant and receiving plant is defined. Supplying plant and receiving plant are individual material master records

with the special procurement key defined in the receiving plant material master.

Stock transport orders will be used to transfer material from the supplying (production) plant to the receiving (planning) plant.

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The STO is part of MRP. Purchase requisitions that are created in MRP can be converted into stock transport orders.

Special Procurement Key

Special procurement key (SPK) – used to plan requirements across plants. 8* - Plans production orders in alternate plants. The requirement remains only visible in the “planning” plant (has the SPK).

The replenishment is visible in both the planning plant and “production” plant (i.e. the plant where parts are actually built). Parts are automatically stored in the planning plant. Material master values (in house prod time) are from the planning plant to plan the order.

Make parts only. Built and sent between U.S. plants only.

4* - Plans movements of materials using special purchase orders called STOs. STOs generate a requirement in the sending plant and the same document is

found as a replenishment in the receiving plant. Inventory is received in sending plant, a delivery is created, stock is issued to the STO, and the STO is received in the receiving plant (MIGO).

Buy parts sent from production to spares Make parts sent to/from 2100 (Toulouse)/2110 (Toulouse Spares) Unplanned movements between all plants for all parts.

Other options (not widely utilized):

Subcontract – Plan to buy a part and also provide the material to vendor. Phantom Assembly. Material number is used for multi-level planning

purposes, but is not produced, stocked or issued. The components of phantom assys are automatically added to the phantom’s next assy directly for issue.

SPK and Lead Time Values

The difference between 4A and 8A Special Procurement (SPK) is the way the way shop paper is generated to store the item (for cross-plant planning). 8A: The move order is part of the original order paperwork (used to ‘direct

ship’) 4A: Part is first stored in the producing plan, then moved to planning plant

(moved cross-plant via a STO)

Cross Plant Purchase Orders – STO (SPK = 4X) Inter-Plant Production Orders (SPK = 8X)

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Example: MM Setups for Cross Plant Purchase Orders – STO (SPK = 4X)

Stock Transfer Order (STO) Used for BUY Parts, cross-plant transfers, and MAKE parts for occasional

replacement. Special procurement key (SPK) = 4x Example: SPK = 4A

Planning Plant = 2020 Production Plant = 2000 o MM Setup used for BUY Parts, cross-plant transfers, and MAKE parts

for occasional replacement: SPK = 4A PDT = 6 (days) GR Proc Time = 0 IPT = 0 Shed/Margin Key = 006 Purchase Group = STO, if MAKE; If BUY, remains Purch Grp of

buyer

Example: MM Setups for Inter-Plant Production Orders (SPK = 8X)

Used for MAKE Parts (U.S.) Special procurement key (SPK) = 8x Example: SPK = 8A

Planning Plant = 2010 Production Plant = 2000 o MM Setup used for MAKE Part:

SPK = 8A PDT = 0 (days) GR Proc Time = 1 IPT = “Mfg Processing time” (same in all plants) Shed/Margin Key = ‘as-is’

LetMeTry

Review key skills and knowledge presented in previous section. Converting Planned Orders to Production Orders (MD04, CO41)

MAKE Parts - Production Orders

After MRP is run, planned orders for manufactured components need to be converted to production orders. Converting (and releasing) production orders results in new assembly operations to commence, in the production plant.

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Each Production Order (record) contains all the information needed to build the order, including the BOM, and Routing information (i.e., a detailed set of instructions required to assemble the entire BOM).

LetMeTry

Review key skills and knowledge presented in previous section. MRP List Overview (MD06)

So far, we’ve examined some basic MRP concepts, and what occurs during MRP Planning. As described, one output from MRP Planning is the MRP List. The MRP List (MD06) provides a static view of MRP planning results. The MRP List forms the basis of work for each MRP controller. The system creates the MRP list during the MRP planning run (according to

the setting in the creation indicator). The MRP list may display Exceptions (E-codes) to assist MRP planners when resolving production issues. Exception messages (E-Codes) appear as warnings to the controller, and

may indicate an order that should be postponed, or an exception message may warn the controller when the finished date in the past (i.e., late to finish, or behind schedule).

Note: In contrast, recall that Stock/Requirements list (MD04) is ‘dynamic’ and reflects recent requirements changes (or replenishments). The MRP List is ‘static’

The MRP List (MD06) provides a record of the planning result for each part or material in the system. The MRP list only displays the planning results from the most recent MRP

run. o The MRP list is not updated until the next time MRP runs). o Changes to stock levels that occurred after the planning date are not

reflected in the MRP List (MD06). Note: If the status has recently changed, the MRP List does not display new status information until after the next MRP cycle has completed.

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LetMeTry

Review key skills and knowledge presented in previous section. Stock/Requirements List (MD04)

The Stock/Requirements List displays the recent changes. The Stock/Requirements List (MD04) screen reflects recent modifications to

materials and quantities. o Example: For a given number, MD04 provides a ‘real time’ view of the

stock/requirements list for a material. Note: In contrast, recall that the MRP List (MD06) is ‘static’ and does NOT reflect recent requirements changes (or replenishments). MRP Controllers typically only select the Individual access view (i.e., the ‘Collective access’ is rarely used)

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MD04 Set UP: Reminder

Refer to the MD04 Setup: MMBE and MB51 to set up MD04 as per the SJI.

MD04 is ‘dynamic’

Changes to stock levels that occurred after the planning date appear in the Stock/Requirements list (MD04).

Example: MD04

In this section, we’ll examine The Stock/Requirements List (MD04) in detail. For a given material and plant number, display the Stock/Requirements list. At the SAP Command field, enter: MD04 (Display the Stock Req’s List) Enter material number: 314-2200-140 Enter plant number: 2000 Example: Enter Material number: 314-2200-14 (this is a common Material

number, often with many requirements). Examples: MD04 Navigation

Because it provides access to many different views, MD04 is the most commonly accessed screen. . . . Use the MD04 screen to: . . . Sort by date of 1st requirement: . . . Expand Header: . . . Drill down to the Material Master: . . . Drill down on individual order numbers (e.g.: display/modify the order, or

release planned orders): . . . . o Release order: SAVE

o Click (Save) icon to save and release the order. o Verify release . . . .

Stock Statistics/Stock Overview (MMBE)

Because it provides access to many different views, MD04 is the most commonly accessed screen.

For a given number, MD04 is used to view both “real-time” requirements and replenishments for a material.

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Use the MD04 screen to:

Drill down to the Material Master.

Quickly determine the status of production orders for specified material.

Sort MD04 screen to display data based upon the ‘date of first requirement’.

Drill down on issues when troubleshooting problems, or to manage individual orders.

Release planned orders

o Converts planned orders to production orders

Expand Header:

Click the (Expand header details) icon, located at the top, next to Material.

Displays portions of the MM, such as the MRP Group, controller, procurement, and in-house production data.

Click the (Material memo) icon to display notations entered by the planner or buyer.

o Note: The material memo icon displays the employee number of the last person to modify this screen.

Drill down to the Material Master:

Click on the material number (top, left of screen) opens Material Master (MM03) for that material.

Click on to add text.

Sort by date of 1st requirement:

When displaying stock requirements for MTO (end items), the system does not automatically list the data based upon requirement dates.

To sort this list based upon the date of the first requirement:

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Click on (Save settings) icon to display the display settings for the user.

Under the ‘Individual segments’, click on ‘Sort by date of 1st requirement’ to re-sort the list, and display the immediate requirements at the top of the list.

SAVE: Click on or press F11 to save data.

Drill down on individual order numbers (e.g.: display/modify the order, or release planned orders):

Display the order: Clicking on the line item for any planned order or production order to transfer to CO02 or CO03

o Click on the (glasses) icon to display the CO03 screen.

o Click on the (pencil) icon to display CO02 screen.

Order Release: From this view, release the planned order by

selecting button.

o Transitions to the CO40 screen, as shown:

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From the CO40 screen, verify qty. and schedule.

Examine routing by clicking (Operations Overview) icon. o Verify control keys after each operation (i.e., verify

routing control keys are correct, and that no duplicate ‘ZP02’ entries exist).

Release order: SAVE

Click (Save) icon to save and release the order.

Stock Statistics/Stock Overview (MMBE)

Clicking on ‘Stock’ displays the Stock Statistics pop-up window, showing additional information about the material, including Planned receipts, and Planned issues.

Note: Example for 740-0515-1423

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o Planned receipts

o Planned issues

From the Stock Statistics window, clicking the ‘Stock Overview’ button displays the MMBE screen.

MD04 Navigation and usage – con’t

Example:

MD04

Enter material # 740-0515-1423, plant 2010.

Shows 17 parts (Stock)

Shows both DepReq, and OrdRes

Shows MRP Type = ZA

Drill down on the MM shows:

ROP = 2 (MRP1)

Deployment horizon = 2 (MRP4)

Example:

For 740-0515-1423, plant 2010:

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ROP is ‘2’

Deployment horizon is ‘2’

o Automatically triggers the next release when the available quantity drops below ‘4’ (i.e., automatically converts the next order).

Note: The deployment horizon (2) is added to the ROP (2), so the next release will be triggered when the supply drops below 4. Note: MRP Type= ZA (auto Kanban)

Parts are automatically provisioned based upon reorder point quantity.

Reorder point (MRP1)

Auto Kanban: Automatic create/release of production orders or schedule lines based on ROP quantity, existing inventory, and replenishments. Normally, when inventory + replenishment quantity is less than the ROP quantity, the next planned order is converted (Kanban triggered`) to a schedule line or production order.

Note: The scheduled completion date is set at full leadtime, and the quantity can be fixed or ROP quantity.

The MRP type ‘ZA’ can be assigned to materials by plant. If the MRP type is ZA (auto Kanban), then the ROP qty field is the low limit (i.e., sets threshold limit to trigger the release of the next planned replenishment). For ZA parts, ROP qty is automatically updated by the Kanban Analysis program twice weekly.

Deployment horizon

For Auto Kanban parts, the deployment horizon (MRP 4) value is added to the ROP qty to raise the qty at which the next release will be triggered to allow for increasing demand or uncertain supply or recovery schedules.

Deployment Horizon: See MRP 4. Indicates the number of days for

which the system considers the (Available to Promise (ATP) quantity and any additional quantity produced.

Any quantity produced beyond the supply horizon is not considered in the deployment calculation.

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LetMeTry: MD04 Navigation

MD04 Screen elements, fields and attributes

<…….. ANIMATION/Hi-lite key fields sequence: see notes; ………………>

What can we learn from this display?

Now that we’ve reviewed the key MD04 screen fields, let’s take another look at them to see what additional information can be learned from this valuable screen. Enter material number and plant number to display the MD04 screen.

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In the figure, MD04 was used to query the database and display the Stock/Requirements list, for a given material number. Example: MRP Element data

Right away, several things can be determined from the screen. Referring to the first requirement listed (i.e., the first schedule line for PrdOrd which shows ‘000006717492/ZP02/Re’ ). Date: 4/11/2006 MRP element: PrdOrd (Production order) Data: 000006717492/ZP02/Re Note: This schedule line includes reference to the Order Type (ZP02). Recall that ZP02 indicates this order is for a GPD part). Date

Date (see sort by date of 1st requirement, below) Date is relevant to material requirements planning Depends on the MRP element:

o For receipts, this is the date when a material is received o For requirements, this is the date when material requirement occurs

MRP Elements

The MD04 screen lists several important MRP elements. Stock (plant stock): Displays the available Plant stock. ProjSt (Project stock): Indicates the assigned WBS element (e.g.: GPD), and

the quantity of a material held in stock to execute the project. Components can only be withdrawn for the WBS element.

PldOrd (Planned Order): Represents a replenishment (receipt) for a specific quantity.

PrdOrd (Production Order): Represents a replenishment (receipt) for a specific quantity.

Dependent Requirements

Each DepReq (Dependent Requirement) o Indicates these “Next Assembly” has NOT been released. o Each DepReq represents a demand for a specific number of pieces

(requirements). o Created as a result of MRP (i.e., when MRP explodes the BOM to

determine components and sub-assemblies needed to complete the order).

Each OrdRes (Order Reservation) is a dependent reservation. o Indicates the “Next Assembly” has been released.

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o Each OrdRes represents a demand for a specific number of pieces (requirements).

Note: When MRP runs, Dependent Requirements are created based upon (released) orders for higher-level assy’s.

Available qty.

o Rec./reqd. qty (Receipts/Requirements) Where:

Available qty: Displays a running total, based upon subsequent Receipts and Requirements.

Beginning from the ProjSt (Project Stock, listed at the top), Available qty is ‘2’).

Rec./reqd. qty: Receipts or requirements o Receipts (replenishments) are indicated as

positive values. o Requirements are indicated as negative values.

Common MRP elements

The figure lists several important MRP elements. Stock (Plant stock)

o Always a line item for “Stock” (s/b at the top of screen) ProjSt (Project stock)

o Indicates WBS assigned (e.g.: GPD) o Definition: project stock is the quantity of a material held in stock to

execute a project. o The project stock is firmly assigned to a WBS element. o Components can only be withdrawn for the WBS element.

PldOrd (Planned Order) represents a replenishment (receipt) for a specific quantity.

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o MRP Planned o During planning, a request is created for a specific plant. o BUY: Triggers the procurement of a specific material (and quantity), for

a specific date. o MAKE: Request for a plant to trigger the production of a product, in a

specific quantity and at a specific date. PrdOrd (Production Order) represents a replenishment (receipt) for a specific

quantity. o A production order used for discrete manufacturing. o See, also, Production Planning and Detailed Scheduling (APO-PPS) o Production order used for discrete manufacturing. o Production orders can only be processed and backflushed in the R/3

system. Planned orders that were created in APO are converted to production orders in the R/3 system. The current production order data relevant for planning is transferred from the R/3 system to APO.

OrdRes (Dependent Reservation) is a dependent reservation. o Represents a demand for a specific number of pieces (requirements). o Indicates the “Next Assembly” has been released. o A dependent reservation is automatically created by the system if you

create a production order, process order, network or project. o The system automatically reserves the necessary components in

stock. IndReq (Independent Requirement)

o A planned requirement quantity for a finished product in a period of time (NOT based on sales orders).

DepReq (Dependent Requirement) represents a demand for a specific number of pieces.

o Indicates the “Next Assembly” has NOT been released. o Created as a result of MRP (i.e., when MRP explodes the BOM to

determine components and sub-assemblies needed to complete the order).

LetMeTry

Matching GAME: Match element name to its description -name -descript: DepRec <…descriptive text….> OrdRes <…descriptive text….> PldOrd <…descriptive text….>

Review key skills and knowledge presented in previous section. Availability Checking

Availability checking for MRP Controller can be accomplished by clicking . . . .

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Perform a ‘Quick Check’ (e.g.: click on the pencil or glasses icon) to verify if correct role assigned, prior to conducting exercises or performing SAP tasks.

Notes: If the correct view does not appear, role not assigned

Refer to the previous section, “MD04 Set Up” for instructions on running the

‘Quick Check’, and to determine if the current SAP login account has the required permissions to complete these exercises.

LetMeTry

OrdRes Vs. DepReq

Each OrdRes represents a requirement for a ‘next assembly’ that has been released . . . Clicking an OrdRes displays the order (i.e., click on the OrdRes, then

glasses to display the CO03 screen, which includes order information).

LetMeTry

DepReq (MD13 – Display Planned Order)

Dependent Requirements can be examined using MD13 to display planned orders. From the MD04 screen, click on one of the DepReq line items. Next, click the (glasses) icon to view the MD13 (Display Planned Order:

project order) screen.

<. . . . Brief only ; Introduce this screen ……>

MD13 (Display Planned order) displays the order header information, and the following planned order information, including:

Order type (e.g.: Project Order) determines how the planned order is provisioned.

o Note: Other types include Standard purchase order, Stock order, Reservation, Individual customer order, and Planned independent requirement.

Planned order number (the order number for the material) Special procurement type (e.g. Standard in-house production)

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o Other types include: Standard external procurement, Stock transfer, and Consignment.

Addt’l information displayed includes: Order quantity, Basic dates (see scheduling), and Planning plant (where the order is delivered).

Note: Many paths to the same end – This is the same screen displayed when clicking on a PldOrd (Planned Order), from MD04.

LetMeTry

Display Period Totals (Production rate?)

MD04 is the most commonly used SAP transaction because it offers many useful display options and views. Let’s look at MD04 to identify production rate for a given material. It is important to examine production rates periodically to ensure ‘Orders’ match ‘Production’. For fast rate items, such as Material Number 314-220-18, typical monthly

requirements (orders) can exceed 60 pieces: o Meeting this demand requires a fairly high production rate!

‘Production Rate’ should equal ‘Demand’

MRP Controllers should monitor these fast-rate items to ensure external issues or production problems do not result in material shortages, slow-downs, or late deliveries. Examine production rates to ensure that requirements match receipts (i.e., orders match production rates). Rule of thumb: Ensure that Reciepts exceed Requirements Note: If goods receipts do NOT meet the requirements a materials shortage is likely. This can result in late to finish (and late delivery to the customer), or cancellations. Monitor Production

MD04 enables MRP Controllers to look into the future to determine if rates are increasing, or not. If demand drops off, it may be necessary to adjust production, appropriately,

to minimize waste (i.e., discuss demand drop-off with Sales team/Value Stream members).

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If demand increases, it is important to know if the current production rate is adequate (i.e., discuss increased demand with Sales team/Value Stream members).

Example: Monitor Production rates

To examine production rates for a given material number, perform the following steps: Enter the following at the SAP Command field:

o /NMD04 Enter material and plant number (314-2200-18, 2000) to display the

Stock/Requirements List for this material and plant number.

Defines next steps, icons and fields

Click the (Switch to period totals) icon button to display totals for a period of Days, Weeks, or Months. Next, click on the Months tab to display monthly demand and replenishments

(i.e., requirements and receipts) Note: From this screen, quickly determine those months when production rates are highest and lowest. Example: Display monthly totals

For example, clicking on the Months tab . . . .

Note: In this example, monthly requirements exceeding 60 pieces indicate a high production rate.

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Verify Receipts exceed Requirements

Typically, the total number of Receipts (i.e., replenishments) should be equal to (or greater) than the total number of Requirements.

Example: Total receipts match the total requirements

As shown, for April, 2006, the Avail. Quantity is ‘2’ (line 2 indicates 2 pieces).

After a total replenishment of 37 pieces, and a total requirement of 39 pieces (total requirements for April), zero (0) pieces are available.

The total receipts match the total requirements. Example: As shown, for April, 2006, the Avail. Quantity is ‘2’ (line 2 indicates 2 pieces). The total receipts match the total requirements. LetMeTry

Period Totals: Fields

Period details

Click the (Period details) icon to view additional information about the line item.

Note: Clicking on 04/2006 will display the MD04 screen for that month only.

Period/seg (Period or segment) Depending on context, this indicates either the period for which the receipt quantities and the requirement quantities are accumulated, or this field indicates the planning segment (.e.g: displays the individual customer segment, including the number, item, and delivery schedule, as well as the storage location segment, and other information).

Plnd ind.req (Planned independent requirements) Quantity, determined either by the forecast or the demand program, that is required for planning.

Requirements The quantity with allocations to cost centers or sales orders that is required for reservations and sales orders.

Avail Qty (Available quantity)

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Planned quantity on the time-axis which is the result of a comparison of receipts, issues and the current warehouse stock.

ATP qty (Available to Promise quantity) Receipt quantity which can be used for new issues (for example, for sales orders). All receipts are identified as well as only the issues which are not covered by the master plan. The calculation of the ATP qunatity is limited to the net segment.

Actual coverage (Actual ‘range of coverage’, i.e., until a scheduling shortage occurs)

Usage: The system calculates the actual range of coverage for all periods that are contained in the 'Period totals' display. This provides the work scheduler with an overview of ranges of coverage, over time.

The days' supply, on the other hand, only displays the current situation, as it is calculated using the stock currently available.

<… see transcripts #2 / notes and examples for this……>

Range of coverage

The system calculates the range of coverage based upon the amount of available stock, the total replenishments, and the total requirements for the period. Example: Range of coverage

Per./segment Reqmts Receipts Avail.

Quantity Actl coverage

Stock (09/01) 190 pcs 2.8 days 09/02 40 50 200 pcs 09/03 120 n/a 80 09/04 100 Shortage

In this example, on the 3rd day we are short 20 pcs (i.e., we can make it

through most of the 3rd day of schedule). Actual coverage

The Actl coverage identifies when shortages are to be expected (does not take into account any future receipts). The Actl coverage indicates the number of days the available quantity of a

material (during the periods displayed) can cover the requirements.

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Only actual work days are used in the calculation. Based on this example of receipts and requirements, the range of coverage is 2.8 days, where:

Range of coverage = [3 - 1] + 80/100 = 2 + 0.8 = 2.8 days

The actual coverage is calculated as:

(09/01) Stock = 190 pieces (09/02) 1st day: Purchase order for 50 pieces

The PO for 50 pieces counts as a ‘reciept’ and results in additional inventory (Stock = 240 pcs)

On the same day, a requirement for 40 pieces arrives, resulting in a stock deduction (Stock = 200 pcs)

(09/03) 2nd day: Purchase requisition for 80 pieces A purchase requisition does NOT count as a ‘reciept’ (Stock =

200 pieces) Requirement for 120 pieces (Stock = 80 pieces)

(09/04) 3rd day: Requirement for 100 pieces represents a ‘shortage’ on the 3rd day.

With only 80 pieces available to start 09/04, the requirement for 100 pieces will be short (a 20 piece shortage occurs on the 3rd day).

LetMeTry

GR/AV (Toggle Button)

The GR/AV button toggles between these two settings. When GR (Display at Goods receipt date) appears, the screen displays

orders based on their Goods receipt date. When AV appears (Display at Availability date), the Availability receipt date

is displayed. Example: GR Vs. AV

AV: Shows us that an order will be available (i.e., completed) on 7/4, but the next assy doesn’t need it until the 7/11. o The reason: GRT (Goods Receipt Time) is ‘5’ work days.

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Note: For Make parts, the GRT is the scheduled ‘transit time’ between cells or plants.

Many paths to the same end

By now, it should be obvious that SAP provides numerous paths to accomplish the same function. Different users tend to accomplish the same task using different methods

(transaction sequences and screens) to access the same data. Exception codes: 06 and 07 (Start/Finish date in the past)

E-codes are the method used by SAP to notify controllers of potential issues, or existing problems with orders and materials.

Refer to the figure, and identify the first PrdOrd listed (e.g.: order 6714742).

This order indicates it is a ZP03, and has been flagged with an Exception code ‘07’

Click on this Exception code 07 reveals that the order is late to finish (‘Finish date in the past’).

Subsequent Planned Orders (PldOrd) have an Exception code ‘06’ (Start date in the past), indicating these orders are behind schedule.

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In this example, these exception codes are the result of faster build time than

assembly time (i.e., these parts are being built at a faster rate than they can be consumed by their next assembly).

If parts continue being built in this manner, the result would be excess stock. o Of course, stock that is not consumed in a timely manner takes up

valuable resources, including investments in materials, storage space, and labor.

Note: It is more efficient to place these parts on (automatic) Kanban, or MRP Type ‘ZA’, so that orders would be released based upon the Kanban ‘trigger’ (i.e., when a bin drops below a specified level, replenishments occur, automatically).

Auto Kanban

Recall that MRP Type ZA (auto Kanban) is used to automatically create (and release) production orders or schedule lines when the existing inventory and replenishments drop below the Re-Order Point (ROP) quantity. When the amount of inventory and replenishments (i.e., inventory +

replenishment) quantity is equal to the ROP quantity, the next planned order (PldOrd) is automatically converted to a schedule line or a production order (PrdOrd).

For these Kanban triggered orders, the completion date is set at full leadtime. Note: This is a MRP type assigned to materials by plant.

Order Report (PldOrd)

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{…ED: Clarifies all info: What tree? BOM? MRP List? MD04 list? Include examples from Cases…}

The Order Report process starts at the top of tree, and works downwards. Controllers should examine orders, and.should be examined on a regular basis Depending on the material selected, reports may take several minutes to complete. Example: Planned Order Report

From MD04, enter material number and plant number as: o Enter material number 314-2200-14, and plant 2000

Click on a PldOrd to display the ‘Additional Data for MRP element’ pop-up window.

Next, click on the (Order report) icon. While the report is being generated,

Note: As the report is being constructed, status messages should appear, indicating an increasing number of ‘materials read so far’. For high rate items, this report may take several minutes to compile/display.

Module Summary Next Steps

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Module Assessment Refer to previous Header 1 “assessment”; Copy to here Collect all Q’s from module; T/F, Multi-choice, Drag-n-Drop, matching tables assessments

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MD04 – Stock/Requirements List (CBT Module 2)

Module Introduction

This transaction is used to view both requirements and replenishments for a material number. ED: STATUS – Outline Accepted! . . . .Note, from here to end of document, these modules are placeholder and will be built from previous overview, as discussed with SME’s, J. Lopez/V. Smith, 082006. Utilize this CBT overview and storyboards to develop prototype 1; Build initial prototype CBT (Module 1) and Re-visit after review cycles have completed for first CBT (Goal: 10/06).

Module Objectives

Stock Requirements Screen

Enter material number and plant.

Click on or press Enter to validate your data and continue. Information is real–time. To display additional information for an entry on the Stock/Requirements

list, double-click on the item. To view the material master from this screen double-click on the material

number or to add a permanent note on a specific material number for

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example: SPF has Siamese fixed nested details (-1, -3, -5 and -9) are all manufactured at the same time.

Click on to add text.

Click on or press F3 to go back a screen. Drill-Down: CO03/CO02

In MD04, by double clicking on a planned order or production order will transfer to either CO02 or CO03 – depending selection made.

Eye glass icon = CO03; pencil icon = CO02 or you can release the

planned order by selecting

By double–clicking directly on the material number will transfer to the Material Master screen.

Material Master Screen (brief)

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Module Summary Next Steps

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Module Assessment

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MD04 – Converting Planned Orders to Production Orders (CBT Module 3)

Module Introduction

ED: STATUS – Outline Accepted! . . . .Note, from here to end of document, these modules are placeholder and will be built from previous overview, as discussed with SME’s, J. Lopez/V. Smith, 082006. Utilize this CBT overview and storyboards to develop prototype 1; Build initial prototype CBT (Module 1) and Re-visit after review cycles have completed for first CBT (Goal: 10/06).

Module Objectives – MD04 (Converting Planned Order to Production Orders)

Scenario: MRP Examples

Resources and References (list)

Related MRP Class Exercises

Exercise #1 – View Material Master Data Display (MM03) Exercise #5 – View MRP List (MD04) Exercise #8 - Converting Planned to Production Orders

Related SJI’s (MRP Planner)

SJI 1 – Display Material Master SJI 2 – Update to MRP Values in the Material Master for Make Parts SJI 11 - Stock Requirements List SJI 16 - Converting Planned Orders to Production Orders SJI 26 – Hobe Core Process SJI 48 - Review BOM or Routing Exception 52 Message

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Terms and Definitions

MRP Controller Responsibilities

MRP List Screen

Double click on the planned order and this screen will pop up:

Click on icon. Production Order Create Screen - CO40

Notice that the screen will transition to CO40

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Verify qty. and schedule. You can check routing by clicking icon. Routing Display Screen:

Check and verify control keys {Ctrl} after each operation. Save & Release

Click on or press F3 to go back a screen.

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Click on or press F11 to save data. Important! This will release the order.

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Module Summary Next Steps

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Module Assessment

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MD04 – Scenario: Resolve MM problem (CBT Module 4)

Module Introduction

This transaction is used to view both requirements and replenishments for a material number. ED: STATUS – Outline Accepted! . . . .Note, from here to end of document, these modules are placeholder and will be built from previous overview, as discussed with SME’s, J. Lopez/V. Smith, 082006. Utilize this CBT overview and storyboards to develop prototype 1; Build initial prototype CBT (Module 1) and Re-visit after review cycles have completed for first CBT (Goal: 10/06).

Module Objectives – MD04 Scenario

Scenario: MRP Examples

As an MRP controller, everyday you may be required to: Release multiple orders (50, 75, 100+). Examine material master data, planned and production orders, to resolve

outstanding issues and problems, ensure ‘lean’ (efficient) operations, and prevent production bottlenecks and waste.

During these examinations, view multiple SAP screens to view orders/material master data that may require modifications

Verify results of transactions and operations (i.e., follow-up/follow-through), monitoring MRP-related activities to ensure recommendations to ME’s, mechanics, etc. has resolved

Resources and References (list)

Related MRP Class Exercises

Exercise #1 – View Material Master Data Display (MM03) Exercise #5 – View MRP List (MD04) Exercise #8 - Converting Planned to Production Orders

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Related SJI’s (MRP Planner)

SJI 1 – Display Material Master SJI 2 – Update to MRP Values in the Material Master for Make Parts SJI 11 - Stock Requirements List SJI 16 - Converting Planned Orders to Production Orders SJI 26 – Hobe Core Process SJI 48 - Review BOM or Routing Exception 52 Message Terms and Definitions

MRP Controller Responsibilities

Scenario Introduction

EX: How do e-codes arrive in these reports? What generates the e-code?

E-code 53 caused by several situations:

Param effectivy issue (as described in this scenario)

Storyboard: Assessment Q#13

Assessment question # 13: What is the problem with the planned order that has the exception message 52 for 221-4950-955, in plant 2000? Hint: Check the Material Master in plant 2000 Notes: Related to GPD Vs. MTS part numbers, param effcty assignment, and how each order type is ‘planned’; MD04 Storyboard - Scenario

Parameter Effectivity

For GPD parts, the ME workbench is tied to param effctvy Why is this ‘52’? How to fix this?

For AG, if part is a GPD (or higher, i.e., MTO), param effectivty is required! Examine MD04, if the order was a GPD than WBS ‘G-01’ would appear next

to the order number.

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Note: MTS material will NOT have param effcvty (as noted previously, Order # 0010460925 is MTS )

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Module Summary Next Steps

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Module Assessment

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Curriculum Summary Next Steps