MRP

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MRP Production Planning
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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

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Table of contents
Course Map
Module 1 Master Data
Module 2 Demand Management
Module 3 Material Requirements Planning
Module 4 MRP Planning Runs
Module 5 Summary
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PP flow Integration
Long TermCapacity Planning
Sales Ops Planning
Demand Management
MRP
Capacity Req.Planning
Production Execution
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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

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Table of contents
Course Map
Module 1 Master Data
Module 2 Demand Management
Module 3 Material requirements Planning
Module 4 MRP Planning Runs
Module 5 Summary
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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
  management (customer orders) and materials
  management (warehouse replenishment)
• Forecasts of demand are represented by planned
  independent requirements which are copied from
  the Sales and Operations Plan

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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 generate manufacturing
  orders and purchase requisitions

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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

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DM Related Transactions

• Practice the following Transactions
• MM03 Display Strategy
• MD63 - Display Independent Requirements
• MD04 - Display Stock Requirements List
• MD74 Reorganise Independent Requirements

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Table of contents
Course Map
Module 1 Master Data
Module 2 Demand Management
Module 3 Material Requirements Planning
Module 4 MRP Planning Runs
Module 5 Summary
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Materials Requirements Planning

• MRP compares the requirements for end products,
  from Demand Management, with the current stocks
  and creates planned manufacturing orders

Demand
Program
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What is MRP?

• 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.

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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 BOMs to determine
  the dependent requirements for intermediate
  products and purchased raw materials

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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.

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MRP Type

• For the MRP procedure, use MRP type PD in the
  material master
• MRP creates planned orders or requisition
  receipts to balance the demand plan
• Safety stock can be used to cover unplanned
  requirements

Receipts
Time
Requirements
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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

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Table of contents
Course Map
Module 1 Demand Management
Module 2 Material requirements Planning
Module 3 Master Data
Module 4 MRP Planning Runs
Module 5 Summary
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Evaluations

• There are several options for analyzing the
  Planning run
• MRP list
• By material
• Collectively
• Stock requirements list
• By material
• Collectively
• Printed MRP list

Planning Result
MRP list
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MRP list

• Use the MRP list to analyze the planning result
• The 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
  controller
• Analyze the exception messages in the MRP list,
  judge and or solve problems
• Use the processing indicator to indicate that you
  checked the material

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Planned order

• Is the output of an MRP run
• Are automatically created
• Planned orders may be converted to production /
  process orders or purchase requisitions

Planned Order 10 20 30
Requirements
MRP
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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