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

Sales & Oper. Demand MPS/MRP

Forecasting
Planning Mgmt Material planning

CO/PA Order Manufacturing

Settlement Execution

Planning Process
Execution Process
 REM
Requirement from sales/marketing

Production Planning

Check Availability

Components Capacity
no no Shift dates /
Purchasing Provide Addl. capacities
yes
yes
Run Schedule Qtys
Sch & Cap Levelling Receipt of Fin Goods In Stores

Mfg. Execution Backflushing

 Requirement from sales/marketing Discrete

Production Planning

Check Availability

Components Capacity
no no Shift dates /
Purchasing Provide Addl. capacities
yes
yes
Production Order
Sch & Cap Levelling Receipt of Fin Goods In Stores

Mfg. Execution 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 Work Centers

Production Production
Facilities PP Basic Data Resources/Tools

Inspection Capacities
Plans
F06010
Bills of Material
SAP R/3 Integration Model
Material Availability Check
Sales Order
Customer Shipment Sales & Transfer of Requirements

Credit Limit
Distribution Goods Issue to SO

Invoice
Sales Forecast / Plan

Production Order
Production Production Order Receipt
Materials
Planning Management
Production Cost Accounting Document

Purchase Order

Invoice Receipt

Goods Receipt
Finance & Accounts Payable
Vendor
Receivable Accounts / Cash Receipt Controlling
Organizational Structures in R/3
Views Levels
Group

Cost accounting
Controlling areas

External logistics Purchasing

Sales organizations
organizations

Accounts Company codes

Internal logistics Valuation areas

(MRP/Production)
Plants
Inventory management
Storage locations/batches/special stocks
 Material Master Data
Material Master

General Data Sales Specific Data Plant Specific Data St. Loc. Specific Data

Data applicable Data dependent on sales Data relevant Data referring to storage
throughout the client organization and for planning and and inventory management
distribution channel production
e.g. e.g.
Material number e.g. e.g. Quantities
Description Delivering plant MRP profile Special stock
Units of measure Sales text Production costs Warehouse
Weight Sales units Planning data attributes
Volume Shipping data Valuation
Product hierarchy Division
Material Types in the Standard SAP
Material Type Description
DIEN Service
ERSA Spare Part
FERT Finished Product
HALB Semi-finished Product
HAWA Trading Good
HIBE Operating Supply
LEER Empty Containers
NLAG Non stock Item
ROH Raw Material
VERP Packaging
WETT Competitor Product
PROD Production Resources/ Tools
Master Data Views
 Master data is a key piece
of information in the system
 Master data can be seen from
a number of views
Finance Engineering
Design  Each view can correspond
Sales
to an SAP module
Product Purchasing  Each view has a number
Data of information screens

Production  Each view belongs to an org unit within the

Stock business
 One product may have multiple plant and
sales views, one for each plant or sales
area
 Examples of How Data is Used
Controls which
General Ledger Material description
Account is updated used in reporting

Finance Engineering
Texts copied
Design
to purchase orders
Sales
Controls customer
ordering rules Product Purchasing
for material Data

Production Stock

Data used to
calculate MRP Maintains stock levels
lead times by plant, storage
location, and batch
Bills of Material
Simple BOM Variant BOM Multiple BOM

BOM representing a material

which can be made up of
Simple BOM representing Similar materials multiple compositions
single material represented e.g. different
by variants on one BOM 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
BOM Header Validity Period
Release Indicator

Stock Items
Item 10 Non-stock Items
Item 20 Variable Size Items
Document Items
Item 30 Text Items

Additional component details

Sub Item 10
e.g. installation points
Sub Item 20 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.

 BOM 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
 Bill of Material Glossary (cont.)
 Item Category – When you enter a new Bill of Material item, an item category must be assigned.
It has important control functions such as:
•
 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
Machines Requirements
Cost
Planning
Center

Assembly Work
People Costing
Line Centers

Scheduling,
Production Execution Times
Line
Work Centers and Routings

Routing Work Center W1

Assembly
Cost Center 100
Operation 10

Work Center W1
Assembly
Cost Center 100
Operation 20

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

Mach $60.00
Activity Rates
Labor $80.00

Overhead $70.00
Set Up (SET)
Work Center
with Activities Machine (MACH)
during production 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 Capacity

Work Center Set up Formula

Formulas
Machine Time Formula
Operation Std Values
Teardown Formula
Set up 1.0 hrs
Machine 5.5 hrs
Routing with standard values Teardown .5 hrs

Oper 0010 Oper 0020 Oper 0030 Oper 0040

Available Capacity at a Work Center
Planned
Break Downtime
1 hr Time

1 hr

8 hrs
7 hrs
6 hrs

Working Working Productive

Hours Hours less Working
Breaks Hours
 Routing Structure Views
Routing

Operation 10 Operation 20 Operation 30

Process Materials Work Centre: Control Key: Operation Text: Std Values:
Resource Tool Components PP-ASSEM - Time Tkts Pre-assemble Lab:10 mins
(PRT) BOM - Costing frame Mach:10 mins
 Production Master Data
Material Type
Materials
and PRTs
BOM Cost
Groups Routing
Groups Centers

Item Category W/C Category

Bills of Work
Material Routings
Components Centers
Allocated to
Operations
Operation
Operation types

(Main) operation
Sub-operation
 HierarchyCosting
Sub-operation  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 sub-operation level
combined operation (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
Useful when processing for operation 0010
0020
occurs over multiple work centers
Material Allocation
Product

BOM
Routing

Op. 10 Op. 10

Op. 20 Op. 30

Op. 30
Material-Routing Allocations
Routing Routing
Group Group
Material
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 Work
Routing
Master Center

Control Key
Base Unit of Measure
Standard Values
Planner Group
Activities
Short Text
Standards Text Key
HR data
 External Processing
Oper 0010

Oper 0020
Routing data copied to order
Purch Reqn
including quantities and dates

Purch Ord Purchasing creates P.O.

Vendor Proc

Goods Rec At goods receipt, the operation

is confirmed
Oper 0040

Oper 0050
 Operation Lead Time

Float Before Oper 0010 Oper 0020 Oper 0030 Float After

Operation Lead Time

Queue | Setup | Process | Teardown | Wait | Move

Interoperation Execution Time Interoperation

Time Time
 Routing Operation Sequences
Routing represents a standard
Standard sequence defining production
procedure

Routing includes processes which

Parallel can be performed simultaneously
to achieve time efficiencies

Routing includes processes which

Split can/must be split across a number
of work centers

Routing defines process where one

Overlapped operation is to overlap with the
following operation
 The Planning Concept in SAP
SOP MPS MRP
Planned Customer Independent
Independent Requirements
Requirements Demand ie
Sales
Requirements
Plan
Requirements (Orders) from
Offset SD Module

Keep Balanced

Planned Orders
Production
Plan Production Orders
Order Proposals
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 Copy from Copy from Copy from

Sales Plan Prodn Plan Forecast Orig Plan

Manual Planned Sales

Independent Demand Management Demand from
Requirements “Demand Program” Sales Orders

MRP/MPS
 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

Planning
Final Sales Order Warehouse Stock
Assembly Finished Product Planned Independent
to Sales Order
Requirements
Purchase Produce

MRP without reference to sales order 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 (sub-

assemblies)

 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 Warehouse Stock
Finished Product Planned Independent
Requirements
Assembly when
Sales Order Purchase Produce
Scheduled

Warehouse Stock Warehouse Stock

Assembly 01 Assembly 02
Stop at level

Final Assembly Pull 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

Planning
Sales Order Customer Stock Planning
Finished Product Material

Planned Independent
Requirements
Purchase Produce Note: Percentages drive lower level
demands for sub assemblies

Warehouse Stock Warehouse Stock

Assembly 01 Assembly 02

Final Assembly Pull Production Push

Strategy: Production by Lot Size

Example: Combine customer orders for the same item

Sales Order Warehouse Stock

Finished Product

Production by Lot Size Pull

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 Warehouse Stock

Finished Product

Production by Lot Size Pull

MRP Features
Net requirements
calculation

Lot sizing
Internal production
and external purchasing

MRP
Forecasting

Order scheduling Bill of Material

and generation Explosion
MRP Overview
Overview
Purchased Items MRP

Purchasing
Master data

Material
Batches
Goods receipt Invoice receipt
Vendors
Customers
Inventory management Invoice
Warehouse :
Valuation verification
management
system
Goods Transfer
issue posting

Accounting
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 Desired Delivery Date

Purchasing Vendor Planned Delivery Goods Receipt

Process Time Time Process Time

Today
 Net Change Planning
Daily Accumulation:

Planned Individual Coverage calculation per requirement date

Requirements
Warehouse Open Order Proposals
Stock
Entries
from
+
Sales Orders
Planning
File

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 Monthly Lot size Dynamic Lot size creation

maximum stock
level Flexible period Groff reorder procedure

Lot size according

to planning calen.
 MRP: Static Lot Sizing

Lot for Lot Order Quantity: Shortage Quantity = Ordered Quantity

Fixed Lot Size: Order

Order = Shortage Quantity
Shortage Order
If Material = Quantity
Fixed Order If >
Fixed Order Quantity Fixed Order Quantity Order
Quantity

Replenishment up to Maximum Stock Level:

Stock required to achieve
Order
Quantity = maximum stock level set in
the material master
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
Controller’s MRP
Group of Materials Listing MRP Order Proposals
and Planner Messages
for which controller
MRP Controller from MRP Planning run.
is responsible
Planner can drill down
to review material
movement activity

Goods Issues Goods Receipt

Stock Requirements List

Date MRP Element Supply/Demand Ref EM Quantity Available

01/01 STOCK 100

01/08 ORDER Sales Order 25 75
01/15 PL ORD 1000 120 05 100 175
02/01 -----------------------------------------------------> Planning Time Fence

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
Current Stock,
Rqmts, Balances,
planned Receipts,
MRP Issues
MRP
Planning
Planning
Process
Result

Last planning Stock Requirements

run results 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 Desired Delivery Date

Release Date

Future Requirement
MRP Planning Date
Purchasing Vendor Planned Delivery Goods Receipt
Date -- today
Process Time Time Process Time

MRP Planning Lead 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 Order Order

Release Start Finish
Date Date Date

Order Release In-house Goods Receipt

Process Time Production Time Process Time

MRP Planning Lead Time Future

MRP Planning
Requirement
Date -- today Date
 Independent Requirements
Customer Requirements = Demand
Multi-Level
= Supply
Planning Structure E1
Planned Orders Level 0

Dependent Requirements

B1 B2
Planned Orders Planned Orders
Level 1
Dependent Dependent
Requirements Requirements

R1 R2 R3
Planned Orders Planned Orders Planned Orders
Level 2
Order Proposals: Planned Orders

Production
Order
Procurement Type is
In-house Production

Planned Order
Order Qty
MRP
MRP Order Date
Controller
Capacity Reqts.
Resource Reqts.
Planning for In-house Production
Planning Run MRP Controller

Manual
Creation
Auto
Creation Manual changes/
deletion

Auto Change/ Delete Planned Collective Conversion

if situation changes Order
into Production Order

Individual Conversion
into Production Order

Production Production
Order Order Release
 The Production Cycle
Confirmation Slip

Print Shop
Select Select Schedule Floor
Routing BOM Times & Dates Papers
Release Check
Order Availability

Actual
Create Labor Confirm
Order Completion
Production Issue
Order Materials
to Order Calculate
Actual Costs
Calculate Calculate Create
Capacity Planned Costs Required
Purchases Receive complete
Goods
goods into stock
Issue
Purchase
Requisitions Goods
Receipt
 OAK BROOK TECHNOLOGIES

Production Order Creation

Manual Order Proposal
Order Creation MRP Conversion

Determine
Order Type

Routing  Alternate Sequence Assignments

Selection  One operation is required
Changes are allowed
before order release
Lead Time  Enter start or finish date
Scheduling depending on scheduling direction

Bill of Material  Component Overrides

Selection  Material Reservations
 Item Categories
Production Order Release
Production Order  Order release is carried out manually
Ready for Release

Material Availability
Check  Uses checking rules defined in configuration

Order or
Operation Release

Shop Paper  On-line or in background

Printing Possible  Pick List, Confirmation Slips,...

Material
Withdrawals Possible
 Material Availability Check

Stock on Reservation Planned Order Dependent

Hand for for Requirement
for
150 Units 50 Units 200 Units 200 Units
Net
Available 150 100 300
100

Requirement
for 50 Units
are Available
Goods Movement for a Production Order
Reservation

Planned Goods Issue

Material 1 Production

Unplanned Goods Issue

Material 2

Consumption of
Goods Issue Material 1 and 2
Goods
receipt of
Material 3
Goods issues only apply to stock items
Goods Issue Results

Material
Update Usage
Reservations Statistics

Goods Issue
Posting
G/L Account Cost Object
Update Allocation

Accounting

Material
Document
Completion Confirmations
Confirm
Production Order Operation 0010
Activities
Operations

0010 - Assemble Board C Confirm

Operation 0020
0020 - Assemble Case Activities

0030 - Assemble unit Milestone

Confirm
0040 - Final Test Operation 0030
Activities

 Partial or Final Confirmation Confirm

 Single or Collective Confirmation Operation 0040
 Milestone Confirmation Activities
 Reduction of Capacity Requirements
 Determination of Actual Costs
Confirmation Data

 Yield
 Scrap Quantity
Quantity
 Scrap Reason

 Start date
Dates  Finish date

 Work Center
Labor  Personnel Number
 Qualification
 Wage Group
 Wage Type