PRODUCTION PLANNING MODULE
FI
CO
HR
PP
QM
SD
PM
MM
PS
Organizational and Master Data
Business Process for Manufacturing
Planning and Execution
Reporting and Analysis
Procurement
Sales Info
System
Forecasting
CO/PA
Sales & Oper.
Planning
Demand
Mgmt
Order
Settlement
MPS/MRP
Material planning
Manufacturing
Execution
Planning Process
Execution Process
REM
Requirement from sales/marketing
Production Planning
Check Availability
Components
Capacity
no
no
Purchasing
yes
yes
Run Schedule Qtys
Sch & Cap Levelling
Mfg. Execution
Shift dates /
Provide Addl. capacities
Receipt of Fin Goods In Stores
Backflushing
Requirement from sales/marketing
Discrete
Production Planning
Check Availability
Components
Capacity
no
no
Purchasing
yes
yes
Production Order
Sch & Cap Levelling
Mfg. Execution
Shift dates /
Provide Addl. capacities
Receipt of Fin Goods In Stores
Production Confirmation
COMPONENTS
Sales Info System
Information contains total sales orders already obtained,
incoming sales orders, pending sales orders – product wise,
customer wise, region wise.
Forecasting
Based on the past history of consumption, a forecast of
the sales figures for a product can be made.
Future projections are made using one of the Statistical
forecasting methods.
CO/PA
Projections will be based on the company’s future projection
of costing and profitability analysis.
Sales & Operations Planning
Higher level planning i.e.overall planning at company level
Yearly/Half yearly/Quarterly Planning
Demand Management
Management of Requirements
Requirements can be from sales forecasts, sales orders,etc.
MPS
Planning of items that greatly influence the company’s profits
or consume critical resources/dominate production processes.
After the production plan of these critical items are firmed up,
the planning of other components are taken up.
MRP
This is the total planning of all the components taking into
consideration the existing requirements and stocks.
Creation of purchase requisitions, production orders,etc.
Final step in the planning process.
MANUFACTURING EXECUTION
Discrete Manufacturing Production orders are released
Materials are issued
Completion confirmations are performed
Goods are received into stock
Repetitive Manufacturing Run Schedule quantities are viewed
Quantities are confirmed by Backflushing
Goods are received into stock
ORDER SETTLEMENT
Costs accrued to an order are debited to one or several
allocation receivers belonging to financial or managerial
accounting.
STANDARD PRODUCTION PLANNING REPORTS
Stock/Requirements List
Lists the latest stock/requirement position of a material
in the plant i.e.planned orders, production orders,etc.
Production Plan
This report lists the monthly production plans – material
and plant wise.
Orders
This report lists the orders pending/completed for a material
material wise or work center wise..
STANDARD PRODUCTION PLANNING REPORTS
Consumption
Lists the consumption of a material for the period in question.
Quantity produced
This report lists the quantity of the material produced during the
Period in question.
Work center Loads
This report lists the available capacities, required capacities,
remaining available capacities and %load for the work center.
STANDARD PRODUCTION PLANNING REPORTS
Missing parts
Lists the missing parts that are required for the production of
a material.
Backlogs
Lists the backlog of the load at a work center for the period
in question.
Production Planning Basic Data
Routings
Materials
Production
Facilities
Work Centers
PP Basic Data
Inspection
Plans
Production
Resources/Tools
Capacities
Bills of Material
F06010
SAP R/3 Integration Model
Sales Order
Customer
Shipment
Credit Limit
Sales Forecast / Plan
Material Availability Check
Sales &
Distribution
Transfer of Requirements
Goods Issue to SO
Invoice
Production Order
Production
Planning
Production Order Receipt
Production Cost
Materials
Management
Accounting Document
Vendor
Goods Receipt
Accounts Payable
Invoice Receipt
Purchase Order
Receivable Accounts / Cash Receipt
Finance &
Controlling
Organizational Structures in R/3
Views
Levels
Group
Cost accounting
External logistics
Controlling areas
Purchasing
organizations
Sales organizations
Accounts
Company codes
Internal logistics
(MRP/Production)
Valuation areas
Plants
Inventory management
Storage locations/batches/special stocks
Material Master Data
Material Master
General Data
Data applicable
throughout the client
e.g.
Material number
Sales Specific Data
Plant Specific Data
Data dependent on sales
organization and
distribution channel
Data relevant
for planning and
production
e.g.
e.g.
St. Loc. Specific Data
Data referring to storage
and inventory management
e.g.
Quantities
Description
Delivering plant
MRP profile
Special stock
Units of measure
Sales text
Production costs
Weight
Sales units
Planning data
Warehouse
attributes
Volume
Shipping data
Valuation
Product hierarchy
Division
Material Types in the Standard SAP
Material Type
DIEN
ERSA
FERT
HALB
HAWA
HIBE
LEER
NLAG
ROH
VERP
WETT
PROD
Description
Service
Spare Part
Finished Product
Semi-finished Product
Trading Good
Operating Supply
Empty Containers
Non stock Item
Raw Material
Packaging
Competitor Product
Production Resources/ Tools
Master Data Views
Finance
Engineering
Design

Master data is a key piece
of information in the system

Master data can be seen from
a number of views

Each view can correspond
to an SAP module

Each view has a number
of information screens

Each view belongs to an org unit within the
business

One product may have multiple plant and
sales views, one for each plant or sales
area
Sales
Product
Data
Production
Purchasing
Stock
Examples of How Data is Used
Controls which
General Ledger
Account is updated
Material description
used in reporting
Finance
Controls customer
ordering rules
for material
Texts copied
to purchase orders
Sales
Product
Data
Production
Data used to
calculate MRP
lead times
Engineering
Design
Purchasing
Stock
Maintains stock levels
by plant, storage
location, and batch
Bills of Material
Simple BOM
Simple BOM representing
single material
Variant BOM
Similar materials
represented
by variants on one BOM
Multiple BOM
BOM representing a material
which can be made up of
multiple compositions
e.g.
different
components
and quantities
Bill of Material Validity

Area of Validity – The same Bill of Material can be allocated to several plants.
Before you can allocate the BOM to a different plant, the material must exist at the
new plant, the unit of issue on the BOM item must be the same.

Validity Period (Valid from/to dates)
 Becomes effective with the valid from date
 The validity date is determined by the system automatically to be either the
next effective from date, or 12/31/1999.
A
A
B
C
B
D
X----------------------------------------------------------->>>>
from 1/1/95
from 12/31/95
to 12/30/95
to
12/31/99
BOM Structure
Plant Assignment
Validity Period
Release Indicator
BOM Header
Stock Items
Non-stock Items
Variable Size Items
Document Items
Text Items
Item 10
Item 20
Item 30
Sub Item 10
Additional component details
Sub Item 20
e.g.
installation points
for components
Bill of Material Glossary
BOM Category – categorizes BOM’s to represent different objects; for example:
•
Material BOM -- structure of products manufactured
•
Equipment BOM -- structure of equipment for plant maintenance
•
Document BOM -- structure of documents such as drawings (3.0)
•
•BOM Group – is a collective number for all BOM’s in a group which allows for one
or several similar products to be described under one number.
All Alternatives of a multiple Bill of Material
•
All variants of a variant Bill of Material
•
•BOM Usage – special view of the BOM which represents a specific area of
the company in which the BOM is used; for example, Engineering, Production,
Costing, Sales, Plant Maintenance
The BOM Usage allows different views to exist without
separate BOM’s for each usage.
Bill of Material Glossary (cont.)
Technical Type – the system distinguishes BOM’s according to whether they
•
represent product variants or production alternatives. If you create a variant
for the BOM,the system marks it as a Variant Bill . If there is more than one
alternative for a material, the system marks the BOM as a Multiple Bill.
Validity – Bills of Material are valid over an area and effectivity period.
Area of Validity -- identifies which plants the BOM has been allocated to
Validity Period -- identifies the from and to effectivity dates.
The default to date is 12/31/9999
BOM
Bill of Material Glossary (cont.)
Category – When you enter a new Bill of Material item, an item category must be assigned.
It has important control functions such as:
•
Item





Screen selection
Specific processing, such as material number required, negative values supported.
The Item Category cannot be changed once set. It must be deleted and re-added.
Sizes are maintained for variable-size items
Item categories include:
•tock Items -- material in stock as a component
S
Non-stock Items -- material not stocked - with or without a material number
•
Variable-size -- system calculates the quantity required using formulas
•
PM Structure Item -- used with plant maintenance equipment
•
Document Item -- used with Document BOM’s
•
•ub-Items – are typically used to represent different installation points for partial
S
quantities of an item.
•In assembling resistors on a printed circuit board, the installation points are
described.
•There is no logic related to sub-items
Work Centers
Capacity
Requirements
Planning
Machines
Cost
Center
Assembly
Line
Work
Centers
Production
Line
People
Costing
Scheduling,
Execution Times
Work Centers and Routings
Routing
Work Center W1
Assembly
Cost Center 100
Operation 10
Work Center W1
Assembly
Operation 20
Cost Center 100
Work Center W2
Finishing
Operation 30
Cost Center
Centre 200
Work Center Category

Work centers are allocated to different work center categories

The work center category is used to control the field and screen selection
for work centers during work center maintenance.
Work Center Category
Screen View
Statistical Work center
Basic Data
Production Work Center
Basic Data
Default Values
Capacity Values
Scheduling
Cost Center Assignment
Cost Center Assignment to
Work Center for Operation
Costing
Cost Center
Set Up $70.00
Activity Rates
Mach $60.00
Labor $80.00
Overhead $70.00
Set Up (SET)
Work Center
with Activities
during production
Machine (MACH)
Labor (LAB)
Routing with standard values
Oper 0010
Oper 0020
Oper 0030
Oper 0040
Use of Formulas in Work Centers
Work Center Schedule
Work Center
Formulas
Work Center Capacity
Set up Formula
Machine Time Formula
Teardown Formula
Operation Std Values
Set up 1.0 hrs
Machine 5.5 hrs
Routing with standard values
Oper 0010
Oper 0020
Teardown .5 hrs
Oper 0030
Oper 0040
Available Capacity at a Work Center
1 hr
Planned
Downtime
Break
Time
1 hr
8 hrs
7 hrs
6 hrs
Working
Hours
Working
Hours less
Breaks
Productive
Working
Hours
Routing Structure Views
Routing
Process
Resource Tool
(PRT)
Materials
Components
BOM
Operation 10
Operation 20
Work Centre:
PP-ASSEM
Control Key:
- Time Tkts
- Costing
Operation 30
Operation Text:
Pre-assemble
frame
Std Values:
Lab:10 mins
Mach:10 mins
Production Master Data
Material Type
BOM
Groups
Materials
and PRTs
Routing
Groups
Cost
Centers
W/C Category
Item Category
Bills of
Material
Components
Allocated to
Operations
Routings
Work
Centers
Operation
Operation types
(Main) operation
Sub-operation
Sub-operation
 HierarchyCosting
 Completion confirmations
 Scheduling always takes place on the
(main) operation level
The control key defines whether completion confirmations and
costing are carried out on the (main) operation level, or on the
sub-operation level.
Indicator:
group operation
combined operation
sub-operation level
(main) operation
Operation / Sub-operation
Schedule at Operation Level
Operation
0010
Capacity Planning & Costing
possible at Sub Operation Level Level
Sub Operation
0010 / 10
at Work Center A1
Sub Operation
0010 / 20
at Work Center A2
Sub Operation
0010 / 30
at Work Center A3
Operation
0020
Useful when processing for operation 0010
occurs over multiple work centers
Material Allocation
Product
BOM
Routing
Op. 10
Op. 10
Op. 20
Op. 30
Op. 30
Material-Routing Allocations
Material
Routing
Group
Routing
Group
Counter
1
01
1
1
1
02
1
2
2
01
1
3
2
02
2
1
3
1


A routing alterative can be allocated to several materials.
A material in a plant can be allocated to several alternatives.
Routing Default Values
Material
Master
Base Unit of Measure
Planner Group
Short Text
Routing
Work
Center
Control Key
Standard Values
Activities
Standards Text Key
HR data
Oper 0010
External Processing
Oper 0020
Purch Reqn
Purch Ord
Routing data copied to order
including quantities and dates
Purchasing creates P.O.
Vendor Proc
Goods Rec
Oper 0040
Oper 0050
At goods receipt, the operation
is confirmed
Operation Lead Time
Float Before
Oper 0010
Oper 0020
Oper 0030
Float After
Operation Lead Time
Queue | Setup | Process | Teardown | Wait | Move
Interoperation
Time
Execution Time
Interoperation
Time
Routing Operation Sequences
Standard
Routing represents a standard
sequence defining production
procedure
Parallel
Routing includes processes which
can be performed simultaneously
to achieve time efficiencies
Split
Routing includes processes which
can/must be split across a number
of work centers
Overlapped
Routing defines process where one
operation is to overlap with the
following operation
The Planning Concept in SAP
SOP
Sales
Plan
MPS
Planned
Independent
Requirements
Offset
Customer Independent
Requirements
MRP
Demand ie
Requirements
Requirements (Orders) from
SD Module
Keep Balanced
Planned Orders
Production
Plan
Order Proposals
Production Orders
Purchase
Requisitions
Order proposals, planned orders etc are created and adjusted by running the MRP or MPS programs.
Sales and Operations Planning Functions
 SOP specifies sales quantities for the long and intermediate
term to roughly assess the feasibility of sales and operation
plans
 Sales and Operations Planning at the Product Group or F/G level
Materials may be planned together in Product Groups
Sales quantities are determined for future periods
Production quantities are then determined on the basis of
sales
Sales and Operations Planning – Planning Levels
 MRP II is concerned with integrating individual plans within a
supply chain
 Profitability Analysis – Revenue and Sales Plans
 Sales and Operations Planning – Sales and Production Plans
 Master Planning – Demand Program and Master Schedule
 Material Requirements Planning – Dependent Requirements and
Procurement Plan
Sales and Operations Planning – Steps
 Step 1 – Sales Planning of Future Sales Quantities
 Copy in from Sales Information System or Profitability Analysis
 Automatic forecast based on historical factors
 Manual entry of sales quantities
 Step 2 – Production Planning
 Synchronize production plan with sales plan
 Stock level equal to zero
 Specify a target days supply by period
 Specify a target stock level by period
 Enter planning data manually
Sales and Operations Planning – Steps
 Step 3 – Disaggregation of Planning Values
 Determine the sales and production quantities of product group members
 Modify the disaggregated sales planning data and create a production plan
for each member
 Step 4 – Transfer of Planning Values to MRP
 Pass the planned sales and production quantities as independent
requirements to demand management
 If product group data is transferred, the system automatically
disaggregates the planning data to the finished product level
Sales and Operations Planning – Product Groups
 A Product Group brings together materials according to some criteria such as
similar type or manufacturing process.
 Link material master data with product groups
 Materials and product groups can be members of more than one group for
different planning scenarios
 Assignment of members from different plants to the same product group for
cross-plant planning
 A product group may have a different unit of measure from its members e.g.
aggregate in cartons vs pieces
 Proportional factors for disaggregation - how the product group quantitiy is
distributed to its members
 Supports production versions for a material or group
 Supports multi-level product group hierarchy
 Graphical support of one or more levels
Sales and Operations Planning – The Planning Table
 Sales and Production Planning is carried out using a Planning Table which
shows the stock level that results from the sales and operations planning for
both materials and product groups
 The Planning Table is divided into:
 Sales Quantities
 Production Quantities
 Target Day’s Supply and Target Stock Levels
Sales and Operations Planning – Creating a Sales Plan
 Manual Data Entry and Distribution Functions
 Entered directly into the Planning Table as a % or qty
 Copying Data from Sales Information System
 Planned order, invoiced or delivery quantities
 The planning data is aggregated across all materials in the group
 Copying from Profitability Analysis
 Quantity and performance measures
 Copying the Forecast
 Aggregates the consumption values for all the materials in the product
group
Sales and Operations Planning – Creating a Production Plan
 Determine the quantities to produce to meet the sales plan
 Synchronize to the Sales Plan – the system copies the sales quantities into the
production quantities
 Zero Stock Level – Use existing stock to cover sales quantities. When used up,
production quantities will synchronize with the sales quantities
 Target Stock Level – The system determines production quantities based on
sales and target stock levels
 Target Days Supply – Coverage is expressed in days
Sales and Operations Planning – Disaggregation
 Functionality is based on proportionality factors of product group members
 The result of disaggregation is the sales plan of its members
 Strategy parameters are used to create the production plan from the sales plan
on to a product group member
 Disaggregation can be carried out for the product group or for selected
members only
Sales and Operations Planning –
Transferring Data to Demand Management
 Transfer a single-level product group (multiple) or individual material (single)
 Independent Requirements Parameters
 Specify Requirements Type
 Version Number
 Limit scope of the time period
Master Planning
 Demand Management
 Planning and Consumption Strategies
 Specification of Requirement Quantities
and Delivery Dates
 Master Production Scheduling
 Planning for Master Schedule Items
 Planning Time Fence
 Interactive MPS
Sales and Operations Planning
Copy from
Sales Plan
Manual Planned
Independent
Requirements
Copy from
Prodn Plan
Copy from
Forecast
Demand Management
“Demand Program”
MRP/MPS
Copy from
Orig Plan
Sales
Demand from
Sales Orders
Planning Strategy – Make-to Stock
 Make product for stock in expectation of customer sales
 Plan using planned independent requirements for “anonymous” make-to-stock
production.
 Use Net or Gross Requirements Planning
 Net Requirements -- includes warehouse stock, planned issues and receipts
 Gross Requirements -- excludes warehouse stock. Just includes planned
and open orders
 Example is a shelf stock item such as a bike accessory light
 Planning Requirement Type is LSF - make to stock which is used in the
planned independent requirements transaction
 Sales Order Requirement is KSL - which is sale from stock
Strategy: Make-To-Stock Production
Example: Common shelf items such as a bike accessory (light)
Sale from stock
Planning
Warehouse Stock
Finished Product
Production Push
Planning Strategy – Planning with Final Assembly
 Make product in expectation of customer sales
 Plan using planned independent requirements at finished goods level to drive
demand to long lead time components
 Typically there is a longer lead time to produce than the customer is
willing to wait for
 Sales orders consume the planned independent requirement quantities
 Planned quantities that are not consumed by sales orders result in excess stock
 Example is a long lead time custom product
 Planning Requirement Type is VSF – planning with final assembly
 Sales Order Requirement is KSV – which is sales order with consumption
Strategy: Planning with Final Assembly
Example: Custom furniture such as a cherry table
Final
Assembly
to Sales Order
Sales Order
Purchase
Planning
Warehouse Stock
Finished Product
Produce
MRP without reference to sales order
Planned Independent
Requirements
Production Push
Planning Strategy – Planning Without Final Assembly
 Final assembly is initiated by the customer sales order
 Stop production at sub-assembly level
 Final assembly pull
 Example is automobile assembled with unique combination of features (subassemblies)
 Planning Requirement Type is VSE -- planning without final assembly
 Sales Order Requirement is KEV -- independent customer order with
consumption
Strategy: Planning Without Final Assembly
Example: Option oriented product such as a car
Planning
Sales Order
Assembly when
Sales Order
Scheduled
Warehouse Stock
Finished Product
Purchase
Warehouse Stock
Assembly 01
Final Assembly Pull
Planned Independent
Requirements
Produce
Warehouse Stock
Assembly 02
Stop at level
Production Push
Planning Strategy – Planning with Planning Material
 Planned independent requirements of Planning Material initiate procurement of
the planning bill components
 Sales orders for the final assembly create planned orders of the finished product
and reduce planning quantities for the planning material
 Possible to plan a family of products from forecast placed on the planning bill.
The planning bill details, through percentages, the quantity required for common
parts
 Example is a bike with common sub-assemblies used in many finished items
 Planning Requirement Type is VSEF -- planning with planning material
 Sales Order Requirement is KEVV -- independent customer order with planning
material
Strategy: Planning with Planning Material
Example: Bikes with the same features except for the color
Sales Order
Purchase
Warehouse Stock
Assembly 01
Final Assembly Pull
Planning
Material
Customer Stock
Finished Product
Produce
Planning
Planned Independent
Requirements
Note: Percentages drive lower level
demands for sub assemblies
Warehouse Stock
Assembly 02
Production Push
Strategy: Production by Lot Size
Example: Combine customer orders for the same item
Sales Order
Production by Lot Size Pull
Warehouse Stock
Finished Product
Planning Strategy – Make to Order Production
 Sales orders are planned according to sales order number
 Produced quantities for each sales order are managed individually
 Production and procurement costs are managed in either a settlement order or
a project
 Example is a custom product with a unique structure such that it only applies to
a particular customers order
 Sales Requirement Type is KE -- independent customer order without
consumption
Strategy: Make-To-Order Production
Example: New machinery
Sales Order
Production by Lot Size Pull
Warehouse Stock
Finished Product
MRP Features
Net requirements
calculation
Lot sizing
Internal production
and external purchasing
MRP
Forecasting
Order scheduling
and generation
Bill of Material
Explosion
MRP Overview
Overview
Purchased Items
MRP
Purchasing
Warehouse
management
system
Master data
Goods receipt
Invoice receipt
Inventory management
Valuation
Invoice
verification
Goods
issue
Transfer
posting
Accounting
Material
Batches
Vendors
Customers
:
MRP: Reorder Point Planning
Stock
Reorder Point
Safety Stock
Time
Order Date
Delivery Date
Forward Scheduling for External Procurement
Forward scheduling used for reorder point material
Release
Order Date
Purchasing
Process Time
Today
Desired Delivery Date
Vendor Planned Delivery
Time
Goods Receipt
Process Time
Net Change Planning
Daily Accumulation:
Planned Individual
Requirements
Sales Orders
Coverage calculation per requirement date
Entries
from
Planning
File
Warehouse
Stock
Open Order Proposals
+
Reservations
Order
Proposal
Shortages
MRP Prerequisites
PLANT LEVEL

Activated for MRP
MATERIAL LEVEL

Valid MRP Type

Valid Material Status

Material MRP Views Maintained
 MRP Controller
 Planned Lead Time
 MRP Group
 Lot Size Data
Material Master – MRP I Key Fields
Basic, General, and Lot Size Data

Procurement Type indicates if the material is externally procured, or produced
internally or both.

Special Procurement identifies special planning rules which may be used for
in-house production or external procurement

MRP Type determines how the material is planned such as MRP, MPS, or
consumption based planning

Material Lead Time identifies for material planning the planned delivery days or
in-house production days

Lot Size determines which lot-sizing procedure the system uses to
calculate order quantities
Material Master – MRP 1Key Fields
Scheduling Parameters
Planning Time Fence: defines a period during which MRP/MPS will not
automatically add or reschedule orders
 Scheduling Margin: controls the release period, opening period for a material
and scheduling floats for production
 Release period is the number of working days in the release period
 Opening period is the number of working days between the order creation and
planned start date
 Order floats allows for safety margin before and after production
 Planned Delivery: lead-time for purchased material
 In-house Production: lead-time for manufactured material
 GR Processing Time: goods receipt processing time
 Example: dock-to-stock time
Material Master – MRP 2 Key Fields

Availability Check indicates whether the system generates individual or summarized
requirements for sales orders for this material and for planning, which MRP items the
system includes in the availability check.

Mat./PPC Status is used to limit the usability of materials for certain activities such
as, purchasing, bills of material
Material Master MRP 3 Key Fields
Independent Requirements
 Consumption Mode: controls consumption of planned independent
requirements by customer requirements
 Selections: backward, forward, or both
 Consumption Periods Backward/Forward: specifies the number of
periods of forward or backward consumption
 Used in conjunction with consumption mode
Storage Location MRP
 MRP Indicator: determines whether or not requirements, for a specific
storage location, are planned separately from the overall plan
 Reorder Level: used for storage location MRP
 Replenishment Quantity: used for storage location MRP
MRP Types
VB
Manual Reorder Point Planning:
MRP produces order proposals when stock falls below a “reorder point”. The reorder point
and safety stock levels are entered manually
VM
Automatic Reorder Point Planning:
The reorder point and safety stock level are calculated based on the forecast results
VV
Forecast Planning
The latest forecast is copied as requirements which are used to create order proposals
PD
Deterministic Planning
MRP produces order proposal(s) to match the exact quantity of the requirements based on
independent and dependent demands
M0
Master Production Scheduling
Similar to PD but used for master schedule items
Lot Sizing
Static
Periodic
Optimum (Cost )
Lot for Lot
Daily Lot size
Part period balancing
Fixed Lot size
Weekly Lot size
Least unit cost procedure
Replenish up to
maximum stock
level
Monthly Lot size
Dynamic Lot size creation
Flexible period
Groff reorder procedure
Lot size according
to planning calen.
MRP: Static Lot Sizing
Lot for Lot Order Quantity: Shortage Quantity =
Fixed Lot Size:
If
Material
Fixed Order
Quantity
=
Ordered Quantity
Order =
Fixed Order
Quantity
Shortage
Quantity
If
Shortage Quantity
>
Fixed Order Quantity
Replenishment up to Maximum Stock Level:
Order
Quantity
=
Stock required to achieve
maximum stock level set in
the material master
Order
Order
Order
Carrying Out the Planning Run
Total Planning – All materials in a given plant

All materials are reviewed by MRP regardless of activity

Only the materials in a plant that have undergone a change relevant
to planning since the last planning run (net change planning)
Planning Interval – Limiting the MRP Planning Interval
example:
100 days
Planned requirements and
supply order receipts
Time
MRP Planning Horizon
Planning Run Options for Automatic
Creation of Requisitions and Delivery Schedules
 MRP Control Parameter: determine whether or not MRP will
automatically create requisitions or delivery schedules
 Options are:
 Do not automatically create. Only create planned order
 Automatically create within the opening period
 Automatically create for the entire planning horizon
 Opening Period Parameter: allows the user to take advantage of
MRP’s automatic creation features while retaining control over the
number of open purchasing documents
MRP List
MRP Controller
Group of Materials
for which controller
is responsible
Controller’s MRP
Listing
MRP Order Proposals
and Planner Messages
from MRP Planning run.
Planner can drill down
to review material
movement activity
Goods Issues
Goods Receipt
Stock Requirements List
Date
MRP Element Supply/Demand
Ref
EM
Quantity
01/01 STOCK
01/08 ORDER
Sales Order
25
01/15 PL ORD
1000
120
05
100
02/01 -----------------------------------------------------> Planning Time Fence
Available
100
75
175
Stock Requirements List brings together all the supply orders, independent
and dependent demands and stock balances for the material. MRP makes
order proposals to balance the supply/demand position for the material
MRP List vs Stock Requirements List
MRP
Planning
Result
Last planning
run results
Current Stock,
Rqmts, Balances,
planned Receipts,
Issues
MRP
Planning
Process
Stock Requirements
List uses current data
 The MRP List displays the result of the last planning run
 The Stock Requirements List displays the most up-to-date stock and
requirements situation
Backward Scheduling for External Procurement

MRP determines the basic scheduling dates using backward scheduling

If the release date lies in the past, the system automatically switches to
forward scheduling
Calculated Order
Release Date
MRP Planning
Date -- today
Desired Delivery Date
Purchasing
Process Time
Future Requirement
Date
Vendor Planned Delivery
Time
MRP Planning Lead Time
Goods Receipt
Process Time
Backward Scheduling for In-house Production

MRP determines the basic scheduling dates using backward scheduling

If the release date lies in the past, the system automatically
swithches to forward scheduling
Order
Release
Date
Order
Start
Date
Order Release
Process Time
MRP Planning
Date -- today
Order
Finish
Date
In-house
Production Time
MRP Planning Lead Time
Goods Receipt
Process Time
Future
Requirement
Date
Independent Requirements
Customer Requirements
Multi-Level
= Demand
= Supply
E1
Planning Structure
Level 0
Planned Orders
Dependent Requirements
B1
R1
Planned Orders
B2
Planned Orders
Planned Orders
Dependent
Requirements
Dependent
Requirements
R2
Planned Orders
Level 1
R3
Level 2
Planned Orders
Order Proposals: Planned Orders
Production
Order
Procurement Type is
In-house Production
Planned Order
MRP
Order Qty
Order Date
Capacity Reqts.
Resource Reqts.
MRP
Controller
Planning for In-house Production
Planning Run
MRP Controller
Manual
Creation
Auto
Creation
Auto Change/ Delete
if situation changes
Manual changes/
deletion
Planned
Order
Collective Conversion
into Production Order
Individual Conversion
into Production Order
Production
Order
Production
Order Release
The Production Cycle
Confirmation Slip
Select
Routing
Select
BOM
Print Shop
Floor
Papers
Schedule
Times & Dates
Release
Order
Actual
Labor
Create
Order
Confirm
Completion
Issue
Materials
to Order
Production
Order
Calculate
Capacity
Check
Availability
Calculate
Planned Costs
Create
Required
Purchases
Purchase
Requisitions
Goods
Issue
Calculate
Actual Costs
Receive complete
goods into stock
Goods
Receipt
OAK BROOK TECHNOLOGIES
Production Order Creation
Manual
Order Creation
Order Proposal
MRP Conversion
Determine
Order Type
Routing
Selection


Alternate Sequence Assignments
One operation is required
Changes are allowed
before order release
Lead Time
Scheduling

Bill of Material
Selection
Enter start or finish date
depending on scheduling direction



Component Overrides
Material Reservations
Item Categories
Production Order Release
Production Order
Ready for Release

Order release is carried out manually
Material Availability
Check

Uses checking rules defined in configuration
Order or
Operation Release
Shop Paper
Printing Possible


On-line or in background
Pick List, Confirmation Slips,...
Material
Withdrawals Possible
Material Availability Check
Stock on
Hand
150 Units
Net
Available
150
100
Reservation
for
Planned Order
for
50 Units
200 Units
100
Requirement
for 50 Units
are Available
Dependent
Requirement
for
200 Units
300
Goods Movement for a Production Order
Reservation
Planned Goods Issue
Material 1
Production
Unplanned Goods Issue
Material 2
Goods Issue
Consumption of
Material 1 and 2
Goods
receipt of
Material 3
Goods issues only apply to stock items
Goods Issue Results
Material
Usage
Statistics
Update
Reservations
Goods Issue
Posting
Cost Object
Allocation
G/L Account
Update
Accounting
Material
Document
Completion Confirmations
Confirm
Operation 0010
Activities
Production Order
Operations
0010 - Assemble Board
0020 - Assemble Case
0030 - Assemble unit
0040 - Final Test





Partial or Final Confirmation
Single or Collective Confirmation
Milestone Confirmation
Reduction of Capacity Requirements
Determination of Actual Costs
C
Confirm
Operation 0020
Activities
Milestone
Confirm
Operation 0030
Activities
Confirm
Operation 0040
Activities
Confirmation Data
Quantity
Dates
Labor



Yield
Scrap Quantity
Scrap Reason


Start date
Finish date





Work Center
Personnel Number
Qualification
Wage Group
Wage Type