• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Scm525 en col92_fv_part_a4
 

Scm525 en col92_fv_part_a4

on

  • 215 views

 

Statistics

Views

Total Views
215
Views on SlideShare
215
Embed Views
0

Actions

Likes
1
Downloads
73
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Scm525 en col92_fv_part_a4 Scm525 en col92_fv_part_a4 Document Transcript

    • SCM525 Consumption-Based Planning and Forecasting SAP ERP - Procurement and Logistics Execution Date Training Center Instructors Education Website Participant Handbook Course Version: 92 Course Duration: 2 Day(s) Material Number: 50093802 An SAP course - use it to learn, reference it for work
    • Copyright Copyright © 2009 SAP AG. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. Trademarks • Microsoft®, WINDOWS®, NT®, EXCEL®, Word®, PowerPoint® and SQL Server® are registered trademarks of Microsoft Corporation. • IBM®, DB2®, OS/2®, DB2/6000®, Parallel Sysplex®, MVS/ESA®, RS/6000®, AIX®, S/390®, AS/400®, OS/390®, and OS/400® are registered trademarks of IBM Corporation. • ORACLE® is a registered trademark of ORACLE Corporation. • INFORMIX®-OnLine for SAP and INFORMIX® Dynamic ServerTM are registered trademarks of Informix Software Incorporated. • UNIX®, X/Open®, OSF/1®, and Motif® are registered trademarks of the Open Group. • Citrix®, the Citrix logo, ICA®, Program Neighborhood®, MetaFrame®, WinFrame®, VideoFrame®, MultiWin® and other Citrix product names referenced herein are trademarks of Citrix Systems, Inc. • HTML, DHTML, XML, XHTML are trademarks or registered trademarks of W3C®, World Wide Web Consortium, Massachusetts Institute of Technology. • JAVA® is a registered trademark of Sun Microsystems, Inc. • JAVASCRIPT® is a registered trademark of Sun Microsystems, Inc., used under license for technology invented and implemented by Netscape. • SAP, SAP Logo, R/2, RIVA, R/3, SAP ArchiveLink, SAP Business Workflow, WebFlow, SAP EarlyWatch, BAPI, SAPPHIRE, Management Cockpit, mySAP.com Logo and mySAP.com are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other products mentioned are trademarks or registered trademarks of their respective companies. Disclaimer THESE MATERIALS ARE PROVIDED BY SAP ON AN "AS IS" BASIS, AND SAP EXPRESSLY DISCLAIMS ANY AND ALL WARRANTIES, EXPRESS OR APPLIED, INCLUDING WITHOUT LIMITATION WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, WITH RESPECT TO THESE MATERIALS AND THE SERVICE, INFORMATION, TEXT, GRAPHICS, LINKS, OR ANY OTHER MATERIALS AND PRODUCTS CONTAINED HEREIN. IN NO EVENT SHALL SAP BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES OF ANY KIND WHATSOEVER, INCLUDING WITHOUT LIMITATION LOST REVENUES OR LOST PROFITS, WHICH MAY RESULT FROM THE USE OF THESE MATERIALS OR INCLUDED SOFTWARE COMPONENTS. g2009227113926
    • About This Handbook This handbook is intended to complement the instructor-led presentation of this course, and serve as a source of reference. It is not suitable for self-study. Typographic Conventions American English is the standard used in this handbook. The following typographic conventions are also used. Type Style Description Example text Words or characters that appear on the screen. These include field names, screen titles, pushbuttons as well as menu names, paths, and options. Also used for cross-references to other documentation both internal (in this documentation) and external (in other locations, such as SAPNet). Example text Emphasized words or phrases in body text, titles of graphics, and tables EXAMPLE TEXT Names of elements in the system. These include report names, program names, transaction codes, table names, and individual key words of a programming language, when surrounded by body text, for example SELECT and INCLUDE. Example text Screen output. This includes file and directory names and their paths, messages, names of variables and parameters, and passages of the source text of a program. Example text Exact user entry. These are words and characters that you enter in the system exactly as they appear in the documentation. <Example text> Variable user entry. Pointed brackets indicate that you replace these words and characters with appropriate entries. Icons in Body Text The following icons are used in this handbook. 2009 © 2009 SAP AG. All rights reserved. iii
    • About This Handbook SCM525 Icon Meaning For more information, tips, or background Note or further explanation of previous point Exception or caution Procedures Indicates that the item is displayed in the instructor's presentation. iv © 2009 SAP AG. All rights reserved. 2009
    • Contents Course Overview......................................................... vii Course Goals ...........................................................vii Course Objectives .................................................... viii Unit 1: Basics of Consumption-Based Planning ................... 1 Overview of Material Requirements Planning.......................3 Overview of MRP Procedures.........................................9 Material Master Record .............................................. 16 Reorder Point Planning .............................................. 32 Unit 2: Planning Run .................................................... 51 Basics of the Planning Run.......................................... 53 Executing the Planning Run ......................................... 61 Planning Result ....................................................... 76 Planning Evaluation .................................................. 87 Lot-Size Calculation .................................................108 Unit 3: Forecast .........................................................129 Basics of the Forecast...............................................131 Executing and Postprocessing the Forecast .....................137 Forecast-Based Planning ...........................................152 Time-Phased Planning ..............................................170 Automatic Reorder Point Planning.................................177 Unit 4: Additional Options in Consumption-Based Planning.197 Source Determination in Materials Planning .....................198 Separate Storage Location MRP ..................................213 MRP Areas............................................................226 Appendix 1: List of Menu Paths Used ...........................251 Index .......................................................................257 2009 © 2009 SAP AG. All rights reserved. v
    • Contents SCM525 vi © 2009 SAP AG. All rights reserved. 2009
    • Course Overview The first unit provides an overview of the complete material requirements planning process. You will learn about the basic prerequisites that you need to use consumption-based planning in your company. The MRP data in the material master record and the material master maintenance are also explained. The most important differences between consumption-based and material requirements planning are discussed. The lesson provides a brief insight into the different MRP procedures for consumption-based planning. The manual reorder point planning procedure is covered in detail in this unit. In the second unit, you will learn about the different ways of executing a planning run in theSAP system and the control parameters for requirements planning. This unit provides an overview of the different subprocesses that the system runs during a planning run. This unit also covers the evaluation methods of the planning results. The third unit covers the procedure for forecasting and the different ways of creating a forecast in the SAP system. This unit explains the use of the forecast in the various consumption-based planning procedures (forecast-based planning, time-phased planning, and automatic reorder point planning). You will learn about the features of the individual MRP procedures. The unit also provides an overview of the ways to influence and then manually edit the forecast result. The fourth unit covers automatic source determination in MRP. You will learn about the source list and the quota arrangement, and the possibility of automatically generating schedule lines in MRP. If you do not want to execute the MRP at plant level, you can use separate storage location MRP and planning with MRP areas in the SAP system. Planning at storage location level and planning with MRP areas are both covered in this unit. Target Audience This course is intended for the following audiences: • Project team members • Consultants • Key users in MRP Course Prerequisites Required Knowledge • Content of course SCM500 (Processes in Procurement) or corresponding SAP knowledge in materials management area 2009 © 2009 SAP AG. All rights reserved. vii
    • Course Overview SCM525 Course Goals This course will prepare you to: • Explain the materials planning process in Materials Management • Use the different consumption-based MRP procedures • Describe the forecasting technique and its function Course Objectives After completing this course, you will be able to: • Name the prerequisites for the overall process of requirements planning and make the necessary system settings • Name and use the different consumption-based planning procedures • Execute material requirements planning and evaluate the results • Name the different forecasting techniques and execute the forecasts • Outline the effects of forecasting on the various consumption-based planning procedures • Describe and use source determination in consumption-based planning. viii © 2009 SAP AG. All rights reserved. 2009
    • Unit 1 Basics of Consumption-Based Planning Unit Overview The first unit provides an overview of the complete material requirements planning process. You will learn about the basic prerequisites that you need to use consumption-based planning in your company. The MRP data in the material master record and the material master maintenance are explained here. The most important differences between consumption-based and material requirements planning are discussed. You will gain a brief insight into the different MRP procedures of consumption-based planning. The manual reorder point planning procedure is covered in detail in this unit. Unit Objectives After completing this unit, you will be able to: • Describe the overall process of MRP • Name the planning levels in consumption-based planning • Describe the prerequisites for executing consumption-based planning. • Differentiate between consumption-based planning and material requirements planning (MRP) • Name the MRP procedures of consumption-based planning • Define MRP types in the system • Create material master records and explain the MRP data • Describe the functions of a MRP profile and create own MRP profiles • Explain the meaning of the material status • Explain the principle of reorder point planning and its process • Describe the meaning of the reorder point and safety stock • Comprehend net requirements calculation for materials planned with reorder point planning • Explain how materials planned with reorder point planning are scheduled. 2009 © 2009 SAP AG. All rights reserved. 1
    • Unit 1: Basics of Consumption-Based Planning SCM525 Unit Contents Lesson: Overview of Material Requirements Planning .......................3 Lesson: Overview of MRP Procedures .........................................9 Lesson: Material Master Record............................................... 16 Exercise 1: Material Master Record Maintenance ..................... 21 Lesson: Reorder Point Planning ............................................... 32 Exercise 2: Reorder Point Planning....................................... 37 2 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Overview of Material Requirements Planning Lesson: Overview of Material Requirements Planning Lesson Overview In this lesson, you will gain an overview of the overall process of material requirements planning and learn about the basic prerequisites so that you can use consumption-based planning in your company. You will also learn about the possible planning levels of consumption-based planning in the SAP system. Lesson Objectives After completing this lesson, you will be able to: • Describe the overall process of MRP • Name the planning levels in consumption-based planning • Describe the prerequisites for executing consumption-based planning. Business Example IDES Ltd wants to use material requirements planning to optimize its logistical processes. First, check whether consumption-based planning is to be used and which settings therefore need to be made. Overview of Material Requirements Planning The main function of material requirements planning is to ensure material availability, that is, to procure the requirement quantities for in-house production and sale on schedule. MRP helps monitor the stocks and automatically generates procurement proposals for Purchasing and Production. This goal is achieved by using different MRP methods that, in turn, include different procedures. 2009 © 2009 SAP AG. All rights reserved. 3
    • Unit 1: Basics of Consumption-Based Planning SCM525 Figure 1: Overall Procedure MRP supports and helps the MRP controller in the task areas. These tasks include determining type, quantity and time of the requirement, and scheduling corresponding procurement elements. The automatic planning run for MRP determines shortage situations and generates the corresponding procurement elements. Possible procurement elements of MRP are planned orders, purchase requisitions and scheduling agreement schedule lines. The planned order and purchase requisition are internal planning elements that can be changed, rescheduled or deleted at almost any time. In in-house production, the system creates planned orders for planning production quantities. When planning has finished, the system converts the planned orders into production orders. The system then converts the dependent requirements in the planned order into reservations in the production order. In external procurement, the system either creates a planned order or a purchase requisition for direct planning of external procurement quantities. Whether purchase requisitions are created for direct planning, or planned orders are created first, you can use the creation indicator for purchase requisitions/MRP groups in the material master record on the initial screen of the planning run. When planning has finished, the planned order must be converted to a purchase requisition, which is subsequently converted to a purchase order. The advantage of creating a planned order first is the additional procurement proposal check that is executed by the MRP controllers. Purchasing can only order the material when the MRP controller has checked the planned order and converted it into a purchase requisition. Otherwise, the procurement proposal is immediately available for Purchasing. If a scheduling agreement exists for a material and it is indicated as MRP-relevant in the source list, it is also possible to create scheduling agreement schedule lines directly during the requirements planning run. Unlike the planned order and 4 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Overview of Material Requirements Planning purchase requisition, scheduling agreement schedule lines are fixed, mandatory elements; in the broader sense, they belong to the procurement proposals. The creation indicator for scheduling agreement schedule lines in the initial screen of the planning run, or the plant parameters or MRP groups control whether or not direct scheduling agreement schedule lines are created. Note: The procurement types that are permitted are defined in Customizing for Material Types. You can decide whether in-house production only, external procurement only, or both are possible. Planning Levels of Consumption-Based Planning Requirements planning takes place at plant level. In other words, the entire stock that exists in the plant is considered in planning. However, the stocks of individual storage locations can be excluded from MRP or planned independently. These stocks are then not included in MRP at plant level. You can also execute requirements planning for individual MRP areas. You can define the MRP areas yourself. This means that several storage locations can be grouped together for one MRP area and that requirements planning can be executed separately from the plant for these MRP areas. MRP areas enable a differentiation of material requirements planning within a plant. (MRP areas include the function of storage locations that are planned separately for materials requirements.) Figure 2: Planning Levels MRP areas are optional. You can carry out material requirements planning without using MRP areas. 2009 © 2009 SAP AG. All rights reserved. 5
    • Unit 1: Basics of Consumption-Based Planning SCM525 There are three different types of MRP areas: 1. Plant MRP areas (obligatory) that are automatically created by activating planning with MRP areas. Their numbers match the number of the plant. If no more MRP areas are defined, the plant MRP area covers the entire plant. 2. Storage location MRP areas that are defined by the storage locations assigned to them. 3. Subcontractor MRP areas that provide planning of the requirement of the material provided for a subcontractor and are defined by the assignment of this subcontractor. Note: Many settings for controlling materials planning can be made separately for each plant or for each MRP area. The actual planning process, however, is exactly the same. Prerequisites for Consumption-Based Planning To be able to use consumption-based planning at all, you need to make certain settings. Figure 3: Prerequisites for Materials Planning If material requirements planning is carried out at plant level, the system adds together available stocks from all of the individual storage locations to determine shortages. 6 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Overview of Material Requirements Planning The following prerequisites must have been fulfilled in order to carry out requirements planning for a plant: • Requirements planning for the corresponding plant must be activated in Customizing for Materials Management under Consumption-Based Planning → Planning → Activate Material Requirements Planning. • The plant parameters for the corresponding plant must be activated in Customizing for Materials Management under Consumption-Based Planning → Plant Parameters → Carry Out Overall Maintenance of Plant Parameters. • In the material master record, you have to maintain the MRP data of the materials that are subject to automatic planning. Note: Automatically planned materials are not assigned the material type ND (= not planned). 2009 © 2009 SAP AG. All rights reserved. 7
    • Unit 1: Basics of Consumption-Based Planning SCM525 Lesson Summary You should now be able to: • Describe the overall process of MRP • Name the planning levels in consumption-based planning • Describe the prerequisites for executing consumption-based planning. 8 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Overview of MRP Procedures Lesson: Overview of MRP Procedures Lesson Overview This lesson shows the most important differences between consumption-based planning and material requirements planning, and provides a brief description of the different MRP procedures in consumption-based planning. Use the MRP type to control which procedure you use to plan a material. In this lesson, you will learn about the most important parameters of a MRP type. Lesson Objectives After completing this lesson, you will be able to: • Differentiate between consumption-based planning and material requirements planning (MRP) • Name the MRP procedures of consumption-based planning • Define MRP types in the system Business Example As an employee in MRP, you decide which materials use material requirements planning, and which use consumption-based planning. For consumption-based planning, also check which MRP procedures are to be used in IDES Ltd. MRP Procedures As opposed to MRP, consumption-based planning procedures are only based on previous material consumption. External requirements such as sales orders, planned independent requirements, and reservations, are generally not relevant to planning. However, to guarantee the MRP controllers with information about the current issues at the same time, sales orders, dependent and manual reservations, and so on, display in the current stock/requirements list. The planning procedures in consumption-based planning are easy-to-use methods of requirements planning that assist in achieving certain aims with relatively little effort. The use of these MRP procedures is preferable in areas without in-house production or in manufacturing plants to plan B and C materials and operating supplies. 2009 © 2009 SAP AG. All rights reserved. 9
    • Unit 1: Basics of Consumption-Based Planning SCM525 Figure 4: Selecting the Appropriate MRP Procedure The above graphic shows the help options available when you do not know which MRP procedure to use for a material. Low value material and constant consumption is best served by a consumption-based planning, whereas high value material with very fluctuating consumption is best served by MRP. The following are planned directly as requirements in MRP: sales orders, planned independent requirements, reservations, and so on. MRP is especially useful for planning finished products and important assembly groups and components (A materials). 10 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Overview of MRP Procedures Figure 5: Overview of MRP Procedures The following MRP procedures are available in consumption-based planning: • Reorder point planning • Forecast-based planning • Time-phased planning In reorder point planning, checks are run to discover whether the planned available stock (total from plant stock and fixed receipts) falls short of the reorder point determined for the material in the master record. If it does, procurement must be triggered. The reorder point should cover the expected average material requirements during the replenishment lead time. You can differentiate between manual reorder point planning, where the MRP controller determines the reorder point manually, and automatic reorder point planning, where the system calculates the reorder point using the forecast. Forecast-based planning uses historical values in the material forecast to estimate future requirements. These requirements are forecast requirements and are immediately available in planning. The system executes the forecast calculation at regular intervals. Time-phased planning also uses historical values in the material forecast to estimate future requirements. However, in this procedure, the planning run is only executed according to predefined intervals in a particular rhythm. It may be useful to plan the material in the same rhythm, shifted according to the delivery time, if a vendor always delivers a material on a particular weekday. The MRP procedure is defined in the material master record for each material and plant (or MRP area). Therefore, the same material can be planned in different plants using different MRP procedures. 2009 © 2009 SAP AG. All rights reserved. 11
    • Unit 1: Basics of Consumption-Based Planning SCM525 Figure 6: Material Requirements Planning / Consumption-Based Planning Material requirements planning is based on current and future requirements. The planned requirement quantities trigger requirements calculation. In MRP, the requirement elements include sales orders, planned independent requirements, material reservations, as well as the dependent requirements and safety stock that BOM explosion generates. Consumption-based planning, generally based on historical values, uses material forecasts or statistical procedures to determine future requirements. Consumption-based planning procedures do not refer to the production plan; in other words, net requirements calculation is not triggered by independent or dependent requirements. Net requirements calculation is either triggered by the available stock level falling below the reorder point or by forecast requirements calculated from historical data. Prerequisites for the introduction of consumption-based planning: • You need an efficient, up-to-date inventory management. • If you are working with forecast requirements, the material should be consumed in accordance with a particular principle and only show low fluctuations. 12 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Overview of MRP Procedures Figure 7: Considering External Requirements As a rule, only the shortfall of the reorder point causes a planning file entry during reorder point planning, and this then triggers net requirements calculation. To avoid overplanning, sales orders, dependent requirements, reservations, and so on, are not generally included in the net requirements calculation, as these future requirements have already been covered with the reorder point. Under certain circumstances, you must also consider particular external requirements during reorder point planning in net requirements calculation. In Customizing for Materials Management under Consumption-Based Planning → Master Data → Check MRP Types, use the Include ext. reqmnts indicator for the MRP type in reorder point planning to determine whether external requirements (sales orders and manual reservations) are considered. You can also take other requirements such as order reservations and purchase requisition releases into consideration. You can decide whether these external requirements are to be included in the complete planning horizon or only within the replenishment lead time. Hint: This course deals with the procedure without external requirements (MRP type VB). For a procedure that includes external requirements, you can choose MRP type V1 for manual reorder point planning and V2 for automatic reorder point planning. 2009 © 2009 SAP AG. All rights reserved. 13
    • Unit 1: Basics of Consumption-Based Planning SCM525 Figure 8: Setting MRP Types You define MRP types in Customizing for Materials Management under Consumption-Based Planning → Master Data → Check MRP Types. The MRP type is a key you use to determine the procedure for planning a material and the MRP parameters that can/must be entered during maintenance of the material master record. The MRP type is part of the plant data (MRP area data of a material). You enter it in the material master record. You can adjust the parameters for the MRP types delivered in the SAP standard system to meet your requirements. You can also add new MRP types. For requirements planning, different MRP type parameters are relevant. Use the MRP procedure to control whether consumption-based or material requirements planning is concerned here and which MRP procedures are to be used for planning. With the forecast indicator, you determine whether the forecast results are to be used in planning. The consumption indicator for the forecast determines the historical values that are to be used for the forecast: unplanned consumption or total consumption. The MRP indicator for the forecast determines whether the forecast values in the net requirements calculation are to be considered, and if so, whether as total requirements or as unplanned requirements. You can also specify whether reorder point and safety stock are to be automatically calculated . 14 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Overview of MRP Procedures Lesson Summary You should now be able to: • Differentiate between consumption-based planning and material requirements planning (MRP) • Name the MRP procedures of consumption-based planning • Define MRP types in the system 2009 © 2009 SAP AG. All rights reserved. 15
    • Unit 1: Basics of Consumption-Based Planning SCM525 Lesson: Material Master Record Lesson Overview This lesson provides an overview of the most important MRP data in the material master record. You will learn about the MRP profile that serves as an entry aid for creating and changing the MRP data in the material master record, therefore easing the MRP data management. This lesson also covers the material status where you can restrict the usability of a material. Lesson Objectives After completing this lesson, you will be able to: • Create material master records and explain the MRP data • Describe the functions of a MRP profile and create own MRP profiles • Explain the meaning of the material status Business Example As an employee in MRP, you are responsible in the IDES Ltd. for the maintenance of the MRP data in the material master records. For fast entry, use the MRP profile you created especially for your company. Material Master Record The material master contains information about all materials that a company procures, produces, stores or sells. The material master is the central source of a company for calling material-specific data. This data is saved in the individual material master records. 16 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Material Master Record Figure 9: MRP Data in the Material Master Record MRP-relevant data is stored at plant level in the material master record. Make the relevant settings for storage location MRP at storage location level in the material master record (MRP 4). The function for separate storage location MRP planning allows for a more flexible display with MRP areas. Maintain settings for MRP areas in the material master record (MRP 1 view). MRP data in the material master record can be subdivided into the following categories: • General data that you must/can always define for a planning material • Data dependent on MRP procedure • Data required for scheduling • Data required for lot-size calculation To create the MRP views in the material master record, choose from the SAP Easy Access screen: Logistics → Materials Management → Material Master → Material → Create (General) → Immediately (MM01). MRP Profile You can maintain MRP parameters with MRP profiles. The MRP profile is a key in which you can store MRP parameters that do not depend on the material master record. A profile is a collection of fields for the configuration of material master records. The information determined in the profile is standard information that is needed again and again in a similar combination when maintaining different materials. A profile simplifies maintenance and administration of MRP data. 2009 © 2009 SAP AG. All rights reserved. 17
    • Unit 1: Basics of Consumption-Based Planning SCM525 Figure 10: MRP profile Specify the following in a MRP profile: • Which fields are to be completed when entering MRP data in the material master record • Which values are to be entered in these fields • Which of these values in the material master record can be overwritten (default values) and which cannot (fixed values) To create an MRP profile, go to the SAP Easy Access screen and choose: Logistics → Materials Management → Material Master → Profile → MRP Profile → Create. When creating material master records, enter a profile to make an assignment between the material master record and the profile. This assignment means that the fixed values, copied from the profile in the data screen, cannot be changed in the material master records. However, you can overwrite the copied proposal values. When you save the material master records, the values are written to the material master record. Hint: If you subsequently assign a profile to a material master record, only the fixed values are copied from the profile into the master record. When changing a profile, the system not only updates the changed values in the profile, but also creates a background job (PROFILE) that updates all material master records allocated to a changed profile. For all materials with changes, a change document is automatically created. The time at which the batch job PROFILE is started is defined in the system administration in Customizing for 18 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Material Master Record Logistics - General under Material Master → Tools → Define Start Time of Background Jobs. You can also start the program RMMM0001 manually from the menu by choosing System → Services → Reporting (SA38). Hint: During the updating of the values in the material master record when changing a profile, the system only considers changes that affect the fixed values in the profile. You can list the material master records that use the same MRP profile. To do this, go to the SAP Easy Access menu and choose: Logistics → Materials Management → Material Master → Profile → MRP Profile → Usage (MMD7). As well as using MRP profiles, you can also use forecast profiles to manage forecast data. The processing of forecast profiles follows the same principle as that for MRP profiles. Material Status The material status limits the usability of a material. It determines for which functions in Materials Management and Production Planning and Control a warning or error message is output. You can determine the business applications of the material by assigning a material status to it. This assignment is frequently done for a limited period of time, for example, in the construction or change phase of a material. Figure 11: Material Status 2009 © 2009 SAP AG. All rights reserved. 19
    • Unit 1: Basics of Consumption-Based Planning SCM525 You determine the material status and its controlling characteristics in Customizing for Logistics - General under Material Master → Settings for Key Fields → Define Material Statuses. You can assign a material status to a material in the material master record either at plant level (MRP 1 view) or cross-plant (Basic data 1 view). It is also possible to assign material status values in advance across the plant in material type. 20 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Material Master Record Exercise 1: Material Master Record Maintenance Exercise Objectives After completing this exercise, you will be able to: • Maintain a material master for materials planning • Use MRP profiles Business Example You are going to use a new raw material in plant 1000. The new material is to be planned using consumption-based planning. Task 1: You are going to use a new raw material in plant 1000. When creating the material master record, use the existing MRP profile ZVB1 as an entry aid. You can access material master record maintenance from the SAP Easy Access menu by choosing: Logistics → Materials Management → Material Master → Material → Create (General) → Immediately (MM01). 1. Create a new material master record with the following data: Material Number: T-M525A## Industry Sector: Mechanical engineering Material Type: Raw material Views: Purchasing, MRP 1, MRP 2, Accounting 1 Plant: 1000 Storage Location 0001 MRP Profile: ZVB1 Purchasing View: Short Text: Raw material T-M525A## Base Unit of Measure: PC (pieces) Purchasing Group: 001 Material Group: 001 Accounting view: Valuation Class: 3000 Continued on next page 2009 © 2009 SAP AG. All rights reserved. 21
    • Unit 1: Basics of Consumption-Based Planning SCM525 Moving Price: EUR 10.00 Before saving your material, go back to the MRP 1 view, check the MRP data, and enter the consumption values. 2. Where do the default values for the MRP Type, Reorder Point and MRP Controller fields come from? __________________________________________________ 3. Can you change the lot size? Why not? ____________________________________________________ 4. On the MRP 1 view, change the proposed reorder point to 50 and delete the safety stock in the MRP 2 view. 5. You have been using a similar raw material for a long time, but no material master record exists. In order to use the forecast at a later time, store the consumption values of this material in the material master record of your newly created raw material. Go to the additional data level. Choose the Consumption tab. Consumption is to be managed monthly. Set the corresponding period indicator. Then enter the following total consumption values: Previous month 430 Previous month 1 400 Previous month 2 390 Previous month 3 370 Previous month 4 350 Previous month 5 340 Previous month 6 350 Previous month 7 360 Previous month 8 340 Previous month 9 350 Previous month 10 340 Task 2: Check the MRP profiles ZVB1 and ZVB2 in plant 1000. 1. Check the use of the MRP profile ZVB1 in plant 1000. How many materials is this MRP profile assigned to? ________________________________________________________ Continued on next page 22 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Material Master Record 2. Display the MRP profile ZVB2. Which values in this MRP profile are default values, and which values are fixed values that you cannot overwrite? Complete the following table. Description Value? Fixed value? Default value? MRP Type MRP Controller Planned Delivery Time in Days Scheduling Margin Key Safety Stock Reorder Point Lot Size Fixed Lot Size Task 3: You have discovered that the settings of the MRP profile ZVB2 are more appropriate for your material T-M525A## than the values of the profile you have allocated to it. 1. Change the material master record and assign MRP profile ZVB2. The change takes effect immediately. (Note: In one of the MRP views, choose from the menu bar Edit → MRP profile....) 2. Check the change by examining the Lot Size field. After assigning MRP profile ZVB2, what is the value in the Lot Size field and what is the characteristic (ready for input/not ready for input) of this field? (Note: the Lot Size field is in the MRP 1 view.) ________________________________________________ 3. Check the change by examining the Planned Delivery Time field. What value and what characteristic (ready for input/not ready for input) does the field have after assigning the profile ZVB2? (Note: the Planned Delivery Time field is in the MRP 2 view.) ________________________________________________ 4. Was the safety stock from profile ZVB2 transferred to the material master? (Note: the Safety Stock field is in the MRP 2 view.) ________________________ 5. Save your change. Continued on next page 2009 © 2009 SAP AG. All rights reserved. 23
    • Unit 1: Basics of Consumption-Based Planning SCM525 6. Display the change document. Task 4: Optional: Create a new MRP profile 1. Create a new MRP profile ZV##. To do this, use the MRP profile ZVB1 as a template. In the new MRP profile you want to define the reorder point as a fixed value. You also want to include the fields Goods Receipt Processing Time with the value 2 and Purchasing Group with the value T## (as the default value in each case) in the profile. 24 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Material Master Record Solution 1: Material Master Record Maintenance Task 1: You are going to use a new raw material in plant 1000. When creating the material master record, use the existing MRP profile ZVB1 as an entry aid. You can access material master record maintenance from the SAP Easy Access menu by choosing: Logistics → Materials Management → Material Master → Material → Create (General) → Immediately (MM01). 1. Create a new material master record with the following data: Material Number: T-M525A## Industry Sector: Mechanical engineering Material Type: Raw material Views: Purchasing, MRP 1, MRP 2, Accounting 1 Plant: 1000 Storage Location 0001 MRP Profile: ZVB1 Purchasing View: Short Text: Raw material T-M525A## Base Unit of Measure: PC (pieces) Purchasing Group: 001 Material Group: 001 Accounting view: Valuation Class: 3000 Moving Price: EUR 10.00 Continued on next page 2009 © 2009 SAP AG. All rights reserved. 25
    • Unit 1: Basics of Consumption-Based Planning SCM525 Before saving your material, go back to the MRP 1 view, check the MRP data, and enter the consumption values. a) To create a material master record, go to the SAP Easy Access menu and choose: Logistics → Materials Management → Material Master → Material → Create (General) → Immediately (MM01). b) Enter the material number T-M525A##, mechanical engineering as the industry, and raw material as the material type. Confirm your entry and choose Enter. Select the Purchasing, MRP 1, MRP 2 and Accounting 1 views and choose Enter. Enter plant 1000, storage location 0001 and MRP profile ZVB1. Confirm your entry and choose Enter. Enter the corresponding values manually in the Purchasing and Accounting views. The values for the MRP views automatically fill with the data from the MRP profile ZVB1. 2. Where do the default values for the MRP Type, Reorder Point and MRP Controller fields come from? __________________________________________________ a) The default values for the MRP Type, Reorder Point and MRP Controller fields come from the MRP profile ZVB1. 3. Can you change the lot size? Why not? ____________________________________________________ a) The Lot size field cannot be changed because this field is defined in the MRP profile as a fixed value (cannot be overwritten). 4. On the MRP 1 view, change the proposed reorder point to 50 and delete the safety stock in the MRP 2 view. a) Overwrite the reorder point in the MRP 1 view and delete the safety stock in the MRP 2 view. 5. You have been using a similar raw material for a long time, but no material master record exists. In order to use the forecast at a later time, store the consumption values of this material in the material master record of your newly created raw material. Go to the additional data level. Choose the Consumption tab. Consumption is to be managed monthly. Set the corresponding period indicator. Then enter the following total consumption values: Continued on next page 26 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Material Master Record Previous month 430 Previous month 1 400 Previous month 2 390 Previous month 3 370 Previous month 4 350 Previous month 5 340 Previous month 6 350 Previous month 7 360 Previous month 8 340 Previous month 9 350 Previous month 10 340 a) Choose Additional data to get to the additional data level. Branch to the Consumption tab page. Enter period indicator M. Maintain the consumption values for the past months in the Total Consumption column. Choose Save to save the material master record. Task 2: Check the MRP profiles ZVB1 and ZVB2 in plant 1000. 1. Check the use of the MRP profile ZVB1 in plant 1000. How many materials is this MRP profile assigned to? ________________________________________________________ a) To check the usage of MRP profiles, go to the SAP Easy Access menu and choose: Logistics → Materials Management → Material Master → Profile → MRP Profile → Usage (MMD7). b) Enter the MRP profile ZVB1 and plant 1000. Check your entry and choose Execute. The materials are listed that have MRP profile ZVB1 assigned to them. (All materials that were created by you and the other participants before are displayed.) 2. Display the MRP profile ZVB2. Which values in this MRP profile are default values, and which values are fixed values that you cannot overwrite? Complete the following table. Continued on next page 2009 © 2009 SAP AG. All rights reserved. 27
    • Unit 1: Basics of Consumption-Based Planning SCM525 Description Value? Fixed value? Default value? MRP Type VB X MRP Controller 025 X Planned Delivery Time in Days 2 X Scheduling Margin Key 001 X Safety Stock 30 X Reorder Point 80 X Lot Size FX X Fixed Lot Size 400 X a) To display the data for the MRP profile, go to the SAP Easy Access menu and choose: Logistics → Materials Management → Material Master → Profile → MRP Profile → Display (MMD3). Enter the MRP profile number (ZVB2) and choose Enter. On the first screen, you see the fields with fixed values, and those with default values. Choose Data screen 1 to display the defined values. Task 3: You have discovered that the settings of the MRP profile ZVB2 are more appropriate for your material T-M525A## than the values of the profile you have allocated to it. 1. Change the material master record and assign MRP profile ZVB2. The change takes effect immediately. (Note: In one of the MRP views, choose from the menu bar Edit → MRP profile....) a) To change the material master record, go to the SAP Easy Access menu and choose: Logistics → Materials Management → Material Master → Material → Change → Immediately (MM02). Enter material number T-M525A##. Confirm your entry and choose Enter. Select the MRP 1 view and choose Enter. Enter Plant 1000. Confirm your entry with Enter. b) From the menu bar, choose Edit → MRP profile... and overwrite the current assigned MRP profile ZVB1 with profile ZVB2. Confirm your entry and choose Enter. Continued on next page 28 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Material Master Record 2. Check the change by examining the Lot Size field. After assigning MRP profile ZVB2, what is the value in the Lot Size field and what is the characteristic (ready for input/not ready for input) of this field? (Note: the Lot Size field is in the MRP 1 view.) ________________________________________________ a) The Lot Size field still has value FX after the assignment of profile ZVB2, but is now ready for input. 3. Check the change by examining the Planned Delivery Time field. What value and what characteristic (ready for input/not ready for input) does the field have after assigning the profile ZVB2? (Note: the Planned Delivery Time field is in the MRP 2 view.) ________________________________________________ a) The Planned Delivery Time field has the value 2 after the assignment of profile ZVB2, and is not ready for input. 4. Was the safety stock from profile ZVB2 transferred to the material master? (Note: the Safety Stock field is in the MRP 2 view.) ________________________ a) The safety stock was not copied because it is only defined as a default value in the subsequently assigned MRP profile. 5. Save your change. a) Choose Save. 6. Display the change document. a) Go to the SAP Easy Access menu and choose: Logistics → Materials Management → Material Master → Material → Display Changes → Active Changes (MM04). Enter T-M525A##, plant 1000 and choose Execute. Double-click on the first line to display the last change document. b) You can also display change documents for a material directly from the display of the material master record. From the menu bar, choose Environment → Display Changes. Task 4: Optional: Create a new MRP profile 1. Create a new MRP profile ZV##. To do this, use the MRP profile ZVB1 as a template. Continued on next page 2009 © 2009 SAP AG. All rights reserved. 29
    • Unit 1: Basics of Consumption-Based Planning SCM525 In the new MRP profile you want to define the reorder point as a fixed value. You also want to include the fields Goods Receipt Processing Time with the value 2 and Purchasing Group with the value T## (as the default value in each case) in the profile. a) From the SAP Easy Access menu, choose: Logistics → Materials Management → Material Master → Profile → MRP Profile → Create (MMD1). Enter ZV## as the MRP profile and ZVB1 as the template and choose Enter. b) Change the indicator for the Reorder Point field from default value to fixed value. Select fixed values for the Goods Receipt Processing Time and Purchasing Group. Then choose Data screen 1. c) Enter the values T## for the Purchasing Group and 2 for the Goods Receipt Processing Time. Leave the value for the reorder point and the other values unchanged. Save the new profile by choosing Save. 30 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Material Master Record Lesson Summary You should now be able to: • Create material master records and explain the MRP data • Describe the functions of a MRP profile and create own MRP profiles • Explain the meaning of the material status 2009 © 2009 SAP AG. All rights reserved. 31
    • Unit 1: Basics of Consumption-Based Planning SCM525 Lesson: Reorder Point Planning Lesson Overview This lesson provides detailed information about reorder point planning. You will learn about the general principle of reorder point planning, net requirements calculation, and scheduling during reorder point planning. Lesson Objectives After completing this lesson, you will be able to: • Explain the principle of reorder point planning and its process • Describe the meaning of the reorder point and safety stock • Comprehend net requirements calculation for materials planned with reorder point planning • Explain how materials planned with reorder point planning are scheduled. Business Example IDES Ltd. procures particular materials using safety stock and reorder points. For each material, you must enter the corresponding MRP data. You want to check whether it is better to define the reorder point and safety stock manually or automatically by the system. Principle of Reorder Point Planning The basis of reorder point planning is the comparison of the available MRP stock (total from plant stock and the fixed receipts) with the reorder point. If the available stock is less than the reorder point, then procurement is triggered. 32 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Reorder Point Planning Figure 12: Reorder Point Planning The reorder point should cover the expected average material requirements during the replenishment lead time. The safety stock should cover any excess material consumption that may occur during the replenishment lead time as well as the normal requirements when deliveries are delayed. The safety stock is therefore part of the reorder point. The reorder point is composed of the expected material requirements during the replenishment lead time and the safety stock. You must therefore consider the following points when defining the reorder point: • Safety stock • Previous consumption or future requirements • Replenishment lead time During automatic reorder point planning, you determine the reorder point and the safety stock in the material master. During automatic reorder point planning, the integrated forecast program determines the reorder point and safety stock. The reorder point is calculated as follows: reorder point = safety stock + daily requirement * replenishment lead time. Inventory management continuously monitors the plant stock during reorder point planning. At each material withdrawal, the system checks whether the withdrawal falls short of the reorder point. If this is the case, an entry is created in the planning file for the next planning run. In the same way, the system checks whether the plant stock still falls short of the reorder point during a material return. 2009 © 2009 SAP AG. All rights reserved. 33
    • Unit 1: Basics of Consumption-Based Planning SCM525 If so, a planning flag is created so that the planning run can delete superfluous procurement proposals. If return deliveries make fixed scheduled receipts superfluous, the planning run proposes that these receipts are deleted. The system calculates net requirements during the planning run. Figure 13: Net Requirements Calculation for Reorder Point Planning During reorder point planning, the available MRP warehouse stock is a result of: Warehouse stock + on-order stock The on-order stock is composed of fixed and firm receipt elements (purchase orders, firm planned orders, firm purchase requisitions). The plant stock also includes the safety stock. Hint: Receipt elements are not included if their receipt due date lies outside the planning horizon. There will be a material shortage if the available warehouse stock level is lower than the reorder point. The shortage quantity is the difference between the reorder point and the available warehouse stock. The purchase order quantity is created from the lot-sizing procedure in the material master record. After the net requirements calculation and the lot-size calculation, the system schedules the procurement proposal during the planning run. It calculates the date on which the purchase order has to be sent and the date on which the vendor must deliver the corresponding quantity. 34 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Reorder Point Planning Figure 14: Forward Scheduling for External Procurement The shortage quantity date for materials planned using reorder points is the date of the planning run. If the reorder point is fallen short of, then procurement is carried out immediately. During scheduling, the system defines the date on which the material will be available, starting from the date of the planning run. This procedure is called forward scheduling. Forward scheduling starts on the MRP date. This date specifies the order start date for planned orders and the release date for purchase requisitions (Release in this context means the release of the purchase requisition for conversion into a purchase order as a result of Purchasing). The purchasing department processing time is calculated in workdays, and the planned delivery time in calendar days. The delivery date therefore stands firm (for planned orders, this means the order finish date). Finally, the goods receipt processing time is calculated in workdays with the delivery date and thus the availability date is known. The purchasing department processing time is the time available in working days for the buyer to convert a purchase requisition into a purchase order. You determine this in Customizing for Materials Management under Consumption-Based Planning → Plant Parameters → Carry Out Overall Maintenance of Plant Parameters. The planned delivery time is the number of calendar days required to procure the material through external procurement. The goods receipt processing time is the timeframe in working days between receiving the material and the receipt in the warehouse. It is required for unpacking, checking, and storing material, for example. The planned delivery time and the goods receipt processing time are stored in the material master record. You can store the planned delivery time in the outline agreement or purchasing info record by vendor too, and the goods receipt processing time in the outline agreement. Hint: The planning run determines the planned delivery time and goods receipt processing time from the purchasing info record or the outline agreement if these are entered in the source list as relevant for MRP. 2009 © 2009 SAP AG. All rights reserved. 35
    • Unit 1: Basics of Consumption-Based Planning SCM525 36 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Reorder Point Planning Exercise 2: Reorder Point Planning Exercise Objectives After completing this exercise, you will be able to: • Discuss the settings in the material master record of a material planned with reorder point planning • Set the different times for calculating the availability date during forward scheduling Business Example In your company, some materials are planned with reorder point planning. Check the settings in the material master record for one of these materials. Calculate the availability date of the material if you were to start a planning run today. Task 1: Display the material master record. 1. Display the material master record for material T-M525A## in plant 1000. What procedure is used to plan the material? __________________________________________ What is the planned delivery time maintained for the material in the master record? __________________________________________ What is the GR processing time maintained for the material in the master record? __________________________________________ Task 2: Determine the availability date. 1. Calculate the availability date for material T-M525A## in plant 1000. What is the purchasing processing time entered for plant 1000 in Customizing? __________________________________________ Is the purchasing processing time determined on a workday basis or on a calendar day basis? __________________________________________ Continued on next page 2009 © 2009 SAP AG. All rights reserved. 37
    • Unit 1: Basics of Consumption-Based Planning SCM525 What are the times considered when determining the availability date? __________________________________________ Based on today's date, determine the availability date for material T-M525A##. __________________________________________ Task 3: Optional: Check the MRP types 1. Determine in Customizing the MRP types that include external requirements. To do this, check all MRP types that begin with V. MRP types:________________________________ 38 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Reorder Point Planning Solution 2: Reorder Point Planning Task 1: Display the material master record. 1. Display the material master record for material T-M525A## in plant 1000. What procedure is used to plan the material? __________________________________________ What is the planned delivery time maintained for the material in the master record? __________________________________________ What is the GR processing time maintained for the material in the master record? __________________________________________ a) Or choose from the SAP Easy Access screen: Logistics → Materials Management → Material Master → Material → Display → Display Current (MM03). Select the MRP 1 and MRP 2 views. Choose Continue (Enter). Enter plant 1000 and choose Enter. b) The following values are entered in the material master record: MRP procedure: Manual reorder point planning (VB) Planned delivery time: 2 days GR processing time: 0 days Task 2: Determine the availability date. 1. Calculate the availability date for material T-M525A## in plant 1000. What is the purchasing processing time entered for plant 1000 in Customizing? __________________________________________ Is the purchasing processing time determined on a workday basis or on a calendar day basis? __________________________________________ What are the times considered when determining the availability date? Continued on next page 2009 © 2009 SAP AG. All rights reserved. 39
    • Unit 1: Basics of Consumption-Based Planning SCM525 __________________________________________ Based on today's date, determine the availability date for material T-M525A##. __________________________________________ a) Hint: You can access Customizing from the SAP Easy Access menu by choosing Tools → Customizing → IMG → Execute Project (SPRO). Choose SAP Reference IMG. In all the solutions for this course, the menu paths in Customizing commence from this point. You determine the purchasing processing time for each plant in Customizing for Materials Management under Consumption-Based Planning → Plant Parameters → Carry Out Overall Maintenance of Plant Parameters. Choose Maintain and enter plant 1000. Confirm your entries and choose Maintain again. Choose External procurement to display the purchasing department processing time for plant 1000. b) The purchasing processing time for plant 1000 is 1 day. The purchasing processing time is determined in workdays. Starting with today's date, the availability date is calculated as follows: Purchasing processing time + planned delivery time + GR processing time. Hint: The calculation is done separately for each of the three time segments, and the results are added together. If a date falls on a day that is not defined as a working day in the factory calendar, the calculation proceeds from the next working day. This also applies to planned delivery time. Task 3: Optional: Check the MRP types 1. Determine in Customizing the MRP types that include external requirements. To do this, check all MRP types that begin with V. Continued on next page 40 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Reorder Point Planning MRP types:________________________________ a) You can find the MRP types in Customizing for Materials Management under Consumption-Based Planning → Master Data → Check MRP Types. b) Select all the MRP types that begin with V and choose Details. c) External requirements are included with MRP types V1 and V2 (choose Next Entry to get to the next entry). 2009 © 2009 SAP AG. All rights reserved. 41
    • Unit 1: Basics of Consumption-Based Planning SCM525 Lesson Summary You should now be able to: • Explain the principle of reorder point planning and its process • Describe the meaning of the reorder point and safety stock • Comprehend net requirements calculation for materials planned with reorder point planning • Explain how materials planned with reorder point planning are scheduled. 42 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Unit Summary Unit Summary You should now be able to: • Describe the overall process of MRP • Name the planning levels in consumption-based planning • Describe the prerequisites for executing consumption-based planning. • Differentiate between consumption-based planning and material requirements planning (MRP) • Name the MRP procedures of consumption-based planning • Define MRP types in the system • Create material master records and explain the MRP data • Describe the functions of a MRP profile and create own MRP profiles • Explain the meaning of the material status • Explain the principle of reorder point planning and its process • Describe the meaning of the reorder point and safety stock • Comprehend net requirements calculation for materials planned with reorder point planning • Explain how materials planned with reorder point planning are scheduled. 2009 © 2009 SAP AG. All rights reserved. 43
    • Unit Summary SCM525 44 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Test Your Knowledge Test Your Knowledge 1. Which MRP elements can be created for a material procured externally by a requirements planning run? Choose the correct answer(s). □ A Production order □ B Planned order □ C Sales order □ D Purchase requisition □ E Purchase order □ F Outline agreement 2. Name the possible planning levels of consumption-based planning. 3. The consumption-based planning procedures are normally only based on the previous consumption of the material. Determine whether this statement is true or false. □ True □ False 4. In forecast-based planning, you can consider external requirements. Determine whether this statement is true or false. □ True □ False 5. What is the function of a MRP profile? 2009 © 2009 SAP AG. All rights reserved. 45
    • Test Your Knowledge SCM525 6. What is the function of the material status? 7. Outline the principle of reorder point planning. 8. The safety stock should clear errors made by the MRP controllers. Determine whether this statement is true or false. □ True □ False 9. During net requirements calculation of a material planned with reorder point planning, the warehouse stock available for MRP results from the plant stock and the on-order stock. Which of the documents below belong to on-order stock? Choose the correct answer(s). □ A Purchase requisitions □ B Purchase orders □ C Sales orders □ D Firm planned orders □ E Fixed purchase requisitions □ F Planned orders 10. How do you schedule a material planned with reorder point planning? 46 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Test Your Knowledge Answers 1. Which MRP elements can be created for a material procured externally by a requirements planning run? Answer: B, D For a material with procurement type F for external procurement, a planned order or purchase requisition can be created during a planning run as a procurement proposal. It is therefore also possible to create direct scheduling agreement schedule lines. Unlike the planned order and purchase requisition, scheduling agreement schedule lines are fixed, mandatory elements; in the broader sense, they belong to the procurement proposals. The purchase order is actually a purchasing document, but cannot be created directly by a planning run. You must convert the created purchase requisition into a purchase order in a second step. 2. Name the possible planning levels of consumption-based planning. Answer: • The plant • A separately planned storage location • MRP areas Note: As of ERP 6.0 you can also carry out MRP according to vendors. To do this, you use the transaction MDW1. This was previously only available in Retail systems. For more information about the Retail functions that are now available in the standard ERP system, see the release notes. 3. The consumption-based planning procedures are normally only based on the previous consumption of the material. Answer: True As opposed to MRP, consumption-based planning procedures are only based on material consumption. External requirements such as sales orders, planned independent requirements, and reservations, are generally not relevant to planning. 2009 © 2009 SAP AG. All rights reserved. 47
    • Test Your Knowledge SCM525 4. In forecast-based planning, you can consider external requirements. Answer: False In consumption-based planning, it is only possible to consider external requirements in reorder point planning and time-phased planning. As a rule, only the shortfall of the reorder point causes a planning file entry during reorder point planning; this then triggers net requirements calculation. Under certain circumstances, you must consider particular external requirements during reorder point planning in net requirements calculation. In Customizing, you can indicate the MRP type in reorder point planning that external requirements are to be taken into consideration. 5. What is the function of a MRP profile? Answer: A profile is a collection of information for the configuration of material master records. The information determined in the profile is standard information that is needed again and again in a similar combination when maintaining different materials. A profile simplifies maintenance and administration of MRP data. 6. What is the function of the material status? Answer: The material status restricts the usability of a material and determines which functions in Materials Management or Production Planning and Control result in a warning or an error message. In other words, with the assignment of a material status, you determine for which business usages the material is intended. 7. Outline the principle of reorder point planning. Answer: In reorder point planning MRP procedure, procurement is always triggered when the sum of plant stock and fixed receipts falls short of the reorder point. The reorder point should include the expected average material requirements during the replenishment lead time. 8. The safety stock should clear errors made by the MRP controllers. Answer: False The safety stock should cover both excess material consumption during the replenishment lead time and the additional consumption caused by delayed deliveries. The safety stock is therefore part of the reorder point. 48 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Test Your Knowledge 9. During net requirements calculation of a material planned with reorder point planning, the warehouse stock available for MRP results from the plant stock and the on-order stock. Which of the documents below belong to on-order stock? Answer: B, D, E During reorder point planning, the available stock at plant level (including the safety stock) with the scheduled fixed and firm receipts is compared with the reorder point. The fixed and firm receipt elements are also called on-order stock. Procurement is always triggered when the sum of plant stock and fixed receipts falls short of the reorder point. 10. How do you schedule a material planned with reorder point planning? Answer: Forward scheduling. During scheduling, the system defines the date on which the material will be available, starting from the date of the planning run. The availability date is calculated as follows: Starting from the date of the planning run, add the purchasing department processing time (in workdays), planned delivery time (in calendar days) and the GR processing time (in working days). 2009 © 2009 SAP AG. All rights reserved. 49
    • Unit 1: Basics of Consumption-Based Planning SCM525 50 © 2009 SAP AG. All rights reserved. 2009
    • Unit 2 Planning Run Unit Overview In the second unit, you will learn about the different ways of executing a planning run in the SAP system and the control parameters for requirements planning. This unit provides an overview of the different subprocesses that the system runs during a planning run. The unit also covers the evaluation methods of the planning results. Unit Objectives After completing this unit, you will be able to: • Name the different options for a planning run • Describe the planning file and explain its functions • Describe the individual subprocesses of a planning run • Explain the meaning of the low-level code. • Name the different control parameters for MRP • Differentiate between the different planning process types and creation indicators for the requirements planning run • Execute requirements planning. • Describe the structure of the MRP lists • Name the ways of converting a planned order. • Explain the differences between the MRP list and the current stock/requirements list • Describe the differences between the individual and collective lists • Use the various functions for evaluating the planning result • Make the most important Customizing settings for evaluations. • Explain the different static and period lot-sizing procedures • Describe additional restrictions for the lot size. Unit Contents Lesson: Basics of the Planning Run .......................................... 53 Lesson: Executing the Planning Run.......................................... 61 Exercise 3: Planning Run .................................................. 69 2009 © 2009 SAP AG. All rights reserved. 51
    • Unit 2: Planning Run SCM525 Lesson: Planning Result ........................................................ 76 Exercise 4: Planning Result................................................ 81 Lesson: Planning Evaluation ................................................... 87 Exercise 5: Evaluating and Processing the Planning Result .......... 99 Lesson: Lot-Size Calculation..................................................108 Exercise 6: Optional: Lot-Sizing..........................................115 52 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Basics of the Planning Run Lesson: Basics of the Planning Run Lesson Overview In this lesson, you will learn about the different ways of executing a planning run in the SAP system. The lesson provides an overview of the different subprocesses that the system runs during a planning run. You will become familiar with the planning file that contains all materials relevant for a planning run. Lesson Objectives After completing this lesson, you will be able to: • Name the different options for a planning run • Describe the planning file and explain its functions • Describe the individual subprocesses of a planning run • Explain the meaning of the low-level code. Business Example In the IDES Ltd., the planning run should be executed regularly for the entire plant, and only separately for individual materials in exceptional cases. You must decide whether total planning is to be executed in the background or online. Executing the Planning Run To determine the shortage situations of the individual materials, start a planning run in the SAP system. There are different ways of executing a planning run. Generally, you decide between total planning and single-item planning. 2009 © 2009 SAP AG. All rights reserved. 53
    • Unit 2: Planning Run SCM525 Figure 15: Executing the Planning Run You can carry out the planning run as a total planning run for one specific plant (or MRP area). This procedure involves the planning of all materials that are relevant for planning for a particular plant, and includes BOM explosion for BOM materials. To execute total planning, go to the SAP Easy Access menu and choose Logistics → Materials Management → Material Requirements Planning (MRP) → MRP → Planning → Total Planning (MD01). The total planning run can be carried out either online or in the background processing mode. You can schedule a total planning run either once or periodically. If you have selected Schedule once, the total planning run executes once on the date you specified, with the control parameters that you define in the variant. If you have selected Schedule periodically, the total planning run runs at regular intervals. Upon completion of the planning run, you will receive statistics with information about scope of planning, exceptional situations, and terminations. You can also see how much time was needed for the planning run in total, and for planning the individual materials. If you choose to have the total planning run running in the background, you can print the log and the results. You can use the scope of planning function when you execute total planning for several plants and/or MRP areas, one after another. In Customizing for Materials Management, you can define as many scope of planning groups as you like, under Consumption-Based Planning → Planning → Define Scope of Planning for Total Planning. For each planning scope, enter a counter to specify the sequence of 54 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Basics of the Planning Run the individual MRP levels (plants or MRP areas). This counter determines the sequence for planning. In a planning scope you can indicate plants or one or more MRP areas and thus restrict the overall planning run to this/these level(s). Note: You need to set parallel processing first to plan using a scope of planning. For more information, see the documentation for the IMG activity Materials Management → Consumption-Based Planning → Define Parallel Processing in MRP. You can carry out the requirements planning run as single-item planning for an individual material. Either a single or multi-level planning run is carried out for one particular material. In single-level, single-item planning, the system only plans the BOM level for the selected material. In multi-level, single-item planning, the system plans the level of the selected material plus all the lower BOM levels. To execute single-item , single-level planning, go to the SAP Easy Access menu and choose Logistics → Materials Management → Material Requirements Planning (MRP) → MRP → Planning → Single-Item, Single-Level (MD03). Note: You can also use interactive single-item planning. Interactive planning, a single-level simulative planning, allows you to check the planning result in great detail, and to execute a fine-tuning. Therefore, this planning particularly is particularly suited for materials that urgently require a check, especially master schedule items. It enables the planning result to be checked especially carefully and fine adjustments to be made. During interactive planning, the system first displays the current stock/requirements list, but does not actually plan directly. You can use this stock/requirements list to then manually trigger the planning and simulation functions. To execute interactive planning, go to the SAP Easy Access menu and choose: Logistics → Production → MRP → Planning → Single-Item Planning, Interactive (MD43). Hint: As of ERP 6.0 you can perform the planning run for each vendor too. To do this, go to the SAP Easy Access menu and call the MRP area menu by entering WDIS in the command field. Planning File Entry The system executes different subprocesses during a planning run. The planning file entry check is the first process that runs in MRP. 2009 © 2009 SAP AG. All rights reserved. 55
    • Unit 2: Planning Run SCM525 Figure 16: Planning File Entry Basically, the planning file contains all materials relevant for a planning run. As soon as you create a material master with MRP views and valid MRP types (everything except ND for No MRP), this material is automatically included in the planning file, as long as you activate MRP for the plant in Customizing. The planning file controls the planning run and scope of planning, in other words, the materials that are to be taken into account in the different types of planning run are determined. The system automatically indicates materials that have undergone an MRP-relevant change (such as the creation of a purchase order) in the planning file, with a corresponding planning file entry (NETCH indicator). If changes relevant to planning become effective within the planning horizon, another indicator is set (file entry NETPL). The system checks in a planning run whether the particular material is marked for planning, in other words, whether the material number exists in the planning file and whether the NETCH indicator (net change planning) or the NETPL indicator (net change planning in the planning horizon) is set. Only materials that have been changed (an indicator is entered in the planning file) are considered in a planning run. 56 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Basics of the Planning Run Changes relevant to planning can be: • Changes in stocks, as long as they alter the stock and requirements situation of the material • The addition of purchase requisitions, purchase orders, planned orders, sales requirements, forecast requirements, dependent requirements or reservations • Changes to fields relevant to the planning of these goods receipts or issues or of the material master record • The deletion of goods receipts or goods issues. The planning horizon is defined in Customizing for Materials Management under Consumption-Based Planning, either in the Overall Maintenance of Plant Parameters for each plant, or in the Overall Maintenance of MRP Groups for each MRP group. Hint: If materials were created before MRP was activated for a plant, you must generate an entry in the planning file for all MRP-relevant materials in this plant. You set up the planning file either in Customizing for Materials Management under Consumption-Based Planning → Planning → Activate Material Requirements Planning, or from the SAP Easy Access menu by choosing Logistics → Materials Management → Material Requirements Planning (MRP) → MRP → Planning → Planning File Entry → Set Up in Background. Because the entries in the planning file are permanent, you must regularly check their MRP-relevance. For example, if a plant is subsequently excluded from MRP, the materials in this plant are still included in the planning file. The same goes for materials that are subsequently assigned MRP type ND (No MRP) and therefore, excluded completely from MRP. In these cases, delete the entries in the planning file. You therefore need to execute a consistency check at regular intervals in Customizing for Materials Management under Consumption-Based Planning → Planning → Activate Material Requirements Planning. Alternatively, go to the SAP Easy Access menu and choose: Logistics → Materials Management → Material Requirements Planning (MRP) → MRP → Planning → Planning File Entry → Consistency Check (MDRE). Process of Consumption-Based Planning The automatic planning run for MRP determines shortage situations and generates the corresponding procurement elements. The planning run consists of several sub-processes 2009 © 2009 SAP AG. All rights reserved. 57
    • Unit 2: Planning Run SCM525 Figure 17: Process of Consumption-Based Planning After the first step, in which the planning file determined the materials that are to be planned in the planning run, the system executes net requirements calculation for each material. This checks whether the requirement is covered by the existing stock and the scheduled receipts in Purchasing or Production. If there is a requirement shortage, the system generates a procurement proposal. Subsequently, the system executes lot-size calculation. This calculation considers the lot-sizing procedures and any further restrictions defined in the material master record. The fourth step in a planning run is scheduling. The system calculates release and delivery dates for purchase requisitions and start and end dates for planned orders. When scheduling externally-acquired materials, replenishment lead time is used as a basis. During forecast-based planning, the dates are determined using backward scheduling, and during reorder point planning, they are determined using forwards scheduling. After scheduling, the system determines the type of the procurement proposals. The procurement type is checked in the material master record; in other words, the system checks whether the receipt is to take place as a result of in-house production or external procurement. If it is in-house production, the system creates planned orders. In the case of external procurement, the system creates planned orders, purchase requisitions or schedule lines according to the settings. When using a source list or quota arrangement, the system attempts to calculate a source of supply and allocate this to the procurement proposal. After the planning run, the MRP controllers can check and edit the new procurement elements. The evaluations available for this are discussed in lessons Planning Result and Planning Evaluation. 58 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Basics of the Planning Run Figure 18: Planning Sequence BOMs are created for the materials that are to be produced and planned. A material can appear in several products and on several manufacturing levels of a product. The low-level code is the lowest level at which a material appears in all BOMs. The low-level code determines the sequence in which the materials are planned: The system first plans all materials with level 0, then all with level 1, and so on. The lower the low-level code, the higher the number assigned to the level. During BOM maintenance, the low-level code is automatically defined in the material master and entered in the planning file. Hint: If a material is not included in a BOM, the highest level (999) is set automatically (999 or blank). 2009 © 2009 SAP AG. All rights reserved. 59
    • Unit 2: Planning Run SCM525 Lesson Summary You should now be able to: • Name the different options for a planning run • Describe the planning file and explain its functions • Describe the individual subprocesses of a planning run • Explain the meaning of the low-level code. 60 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Executing the Planning Run Lesson: Executing the Planning Run Lesson Overview The following control parameters are available for requirements planning; you can select them on the initial screen of the planning run. In this lesson, you will receive an overview of these control parameters and learn about the different planning process types as well as their advantages and disadvantages. The lesson also covers the plant parameters and MRP groups that you set in Customizing to control requirements planning. Lesson Objectives After completing this lesson, you will be able to: • Name the different control parameters for MRP • Differentiate between the different planning process types and creation indicators for the requirements planning run • Execute requirements planning. Business Example You are an employee in MRP and are responsible for executing the requirements planning run. You need to compare the types of planning runs available. You also need to compare the procurement elements that can be created during a planning run and define the corresponding creation indicator in Customizing. Planning Run Types The planning run type enables you to determine the scope of the materials to be planned and which materials are to be taken into account during a planning run. Define the planning run type using the Processing key field on the initial screen. 2009 © 2009 SAP AG. All rights reserved. 61
    • Unit 2: Planning Run SCM525 Figure 19: Planning Run Types There are three different types of planning run: • Regenerative planning: processing key NEUPL • Net change planning in the total horizon: processing key NETCH • Net change planning in the planning horizon: processing key NETPL. Planning with the processing key NEUPL is for regenerative planning. With this processing key, the system plans all materials included in the planning file, irrespective of the indicators. If you change settings in Customizing for requirements planning, such as the settings for an MRP type, a lot-sizing procedure or the purchasing processing time, none of the materials in the planning file have an indicator. It is therefore a good idea to start a planning run with the processing key NEUPL after such changes, so that the changes made in Customizing can take effect in requirements planning. In regenerative planning, change indicators NETCH and NETPL are reset in the planning file. The disadvantage of regenerative planning is the high burden placed on the system, since all materials are planned, including those that are not changed as a result of planning. During net change planning in the total horizon with processing key NETCH, only materials where the indicator NETCH has been set in the planning file are planned. 62 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Executing the Planning Run The following changes lead to an entry being made in the planning file: • Changes to stock, providing these change the stock / requirements situation for the material (with consumption-based materials, however, only if the stock level falls short of or exceeds the reorder point). • Additions, changes or deletions of purchase requisitions, purchase orders, planned orders, sales requirements, forecast requirements, dependent requirements or reservations of material • Changes to MRP-relevant fields of the material master set In net change planning in the total horizon, the indicators NETCH and NETPL are reset in the planning file. During net change planning in the planning horizon with processing key NETPL, only materials where the indicator NETPL has been set in the planning file are planned. The scope of planning or number of materials to be planned is restricted even further, which reduces the runtime of the planning run. During net change planning in the planning horizon, the NETPL indicator only is reset in the planning file. The planning horizon is defined in Customizing for Materials Management under Consumption-Based Planning, either in the Overall Maintenance of Plant Parameters according to the plant, or in the Overall Maintenance of MRP Groups according to MRP group. Note: In single-item planning, you can choose between net change planning (NETCH) and net change planning in the planning horizon (NETPL). Regenerative planning (NEUPL) is not useful because the material is already assigned and does not have to be determined first when evaluating the planning file. Figure 20: Planning in the Planning Horizon In order to speed up requirements planning, it can be limited to a certain planning horizon using the processing key NETPL. Only those requirements that are within the planning horizon are then covered by receipts. 2009 © 2009 SAP AG. All rights reserved. 63
    • Unit 2: Planning Run SCM525 As time passes, requirements may fall in the planning horizon even though they have not yet been covered by receipts. If no other changes relevant to planning occur, these requirements will only be covered during the next planning run over the entire time frame (with processing key NETCH or NEUPL). To enable these requirements to be taken into consideration, you should execute a net change plan according to the net change procedure at greater time intervals using the NETCH processing key. It is also possible to set the indicator Plan Regularly in Customizing for the corresponding MRP types. This indicator ensures that materials where it is set are also planned at regular intervals, even when no changes relevant to planning have been made. The maximum MRP time interval for which the corresponding materials are to be taken into account is defined in Customizing for each MRP group. Control Parameters for the Planning Run For requirements planning, the following control parameters are available; you can set them on the initial screen of the planning run. You can use these parameters to determine how the planning run is to be executed and what the results should be. As well as the processing key (planning process type), the control paramteres include the creation indicator for procurement proposals for externally-procured materials, the creation indicator for MRP lists, the planning mode, and the scheduling. Figure 21: Control Parameter Planning Run 64 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Executing the Planning Run Use the processing key to determine the planning type as regenerative planning (NEUPL), net change planning in the total horizon (NETCH), or net change planning in the planning horizon (NETPL). The creation indicator for purchase requisitions for externally-procured materials, controls whether direct purchase requisitions or first planned orders are to be created for externally-procured materials. You use the creation indicator for scheduling agreement schedule lines to decide whether direct scheduling agreement schedule lines are to be created for externally-procured materials. In order for requirements planning to automatically create scheduling agreement schedule lines, you need to create a scheduling agreement for the material and mark this in the source list as MRP-relevant. You use the creation indicator for MRP lists to determine whether the planning run should create MRP lists. It is also possible to create MRP lists that depend on certain exception messages appearing. The exception messages that lead to the creation of an MRP list can be defined in Customizing for Materials Management under Consumption-Based Planning → Evaluation → Exception Messages → Define and Group Exception Messages. Note: Even if you do not save MRP lists, the procurement proposals created by the system are stored in the database. You then carry out postprocessing with the current stock/requirements list, not with the MRP list. 2009 © 2009 SAP AG. All rights reserved. 65
    • Unit 2: Planning Run SCM525 The planning mode specifies how non-fixed procurement proposals from the last planning run are to be handled in the next planning run. Fixed procurement proposals essentially remain the same. The following options are available: • Adjust existing planning data (planning mode 1) • Trigger BOMs again after BOM changes (planning mode 2) • Delete all planning data and re-create procurement proposals (planning mode 3). Hint: The planning mode can be specified for each planning run on the initial planning screen. The planning mode is also set automatically in the planning file. When planning a material, the planning mode with the highest numerical value has priority: planning mode 2 (trigger BOMs again) overrides planning mode 1 (adjust planning data), planning mode 3 (delete and re-create planning data) overrides planning mode 1 (adjust planning data) and planning mode 2 (trigger BOMs again). As a rule, it is sufficient to set planning mode 1 on the initial screen of the planning run. If the material does actually have to be planned with another planning mode, then a corresponding planning file entry is automatically set in the planning file and then evaluated in the planning run. It is important to set planning mode 2 or 3 on the initial screen of the planning run if changes have been made in Customizing, as planning file entries are not automatically created for the affected materials. To find out when a particular planning mode is set in the planning file, see the SAP Library under SAP ERP Central Component → Logistics → Materials Management → Consumption-Based Planning → Planning Processes → Checking the Planning File → Planning Mode. You can also define the creation indicator for scheduling agreement schedule lines in Customizing under the plant parameters. The creation indicators for purchase requisitions, schedule lines and MRP lists can also be set in Customizing in the MRP group. The materials assigned to this MRP group are planned accordingly in the total planning run. Hint: You can save the parameters in the planning run in transactions MD01 and MD03. To do this, go to the menu and choose Settings → Save. Plant Parameters and MRP Groups Plant parameters are control parameters for requirements planning and are determined for each plant in Customizing for Materials Management under Consumption-Based Planning → Plant Parameters → Carry out Overall Maintenance of Plant Parameters. 66 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Executing the Planning Run The MRP group is an organizational object used to allocate certain control parameters for MRP to a group of materials. You can maintain MRP groups and the corresponding parameters in Customizing for Materials Management under Consumption-Based Planning → MRP Groups → Carry Out Overall Maintenance of Plant Parameters if you need more control over planning for each plant and want to assign control parameters that are different from the plant definition to particular material groups. Figure 22: Plant Parameters / MRP Group Parameters You can maintain different plant parameters, such as the creation indicator for scheduling agreement schedule lines, the purchasing processing time and the planning horizon. In the MRP groups, you can also maintain different parameters such as the creation indicator for purchase requisitions, schedule lines and MRP lists, maximum MRP interval and the planning horizon. The MRP group is assigned to the relevant master record according to the material. A MRP can be suggested as default due to the material type in the material master record, if you have defined the corresponding settings in Customizing for Materials Management under Consumption-Based Planning → MRP Groups → Define MRP Group for Each Material Type. In total planning, the system checks with each material whether the material has been allocated an MRP group. If no MRP group is allocated for the material, the material is planned using plant parameters. In single-item planning, parameters entered on the initial screen are always used for planning. 2009 © 2009 SAP AG. All rights reserved. 67
    • Unit 2: Planning Run SCM525 Figure 23: Settings in Materials Planning If setting is possible on several levels, the setting in the MRP group that is assigned to the material has priority over the setting in the plant parameters. 68 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Executing the Planning Run Exercise 3: Planning Run Exercise Objectives After completing this exercise, you will be able to: • Display the planning file • Carry out requirements planning as single-item planning. Business Example For the requirements planning run, you need to consider how the planning run is to be executed, how the number of materials to be planned can be limited appropriately, and what the result of the planning run should be. Task 1: Display the planning file entry for your material T-M525A## in plant 1000. 1. What low-level code is your material allocated to? __________________ 2. Which flags (change indicators) are set for your material in the planning file? __________________________________________ Task 2: Carry out single-level, single-item planning for your material T-M525A## in plant 1000. 1. Choose the planning process type for Net change planning for total horizon. What processing key do you use? __________________________________________ 2. Make sure that the requirements planning run creates planned orders. What creation indicator do you use for purchase requisitions? __________________________________________ 3. The result of the planning run should immediately display. Select Display results before they are saved. 4. Now check the planning result. Did the system create a planned order for your material? ____________ How do you explain the receipt quantity of the planned order? Continued on next page 2009 © 2009 SAP AG. All rights reserved. 69
    • Unit 2: Planning Run SCM525 _______________________________________________ Save your planning result. Task 3: Display the planning file entry again for your material T-M525A## in plant 1000. 1. Which planning indicators (change indicators) are set for your material? _______________________________ Task 4: Display the MRP data for your material T-M525A## in the material master record. 1. What MRP group is allocated to your material? ____________________ 2. Where does this allocation originate? __________________________________________________ Task 5: Display the control parameters for MRP group 0000. 1. Display the control parameters for the MRP group of your material in plant 1000. In Customizing, choose Carry Out Overall Maintenance of MRP Groups. What planning horizon is specified for the MRP group of your material in plant 1000? ____________________ Task 6: Display the control parameters for plant 1000. 1. What planning horizon is defined for plant 1000? ____________________ 2. What planning horizon is relevant for planning material T-M525A## and why? __________________________________________________ 70 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Executing the Planning Run Solution 3: Planning Run Task 1: Display the planning file entry for your material T-M525A## in plant 1000. 1. What low-level code is your material allocated to? __________________ a) Go to the SAP Easy Access menu and choose: Logistics → Materials Management → Material Requirements Planning (MRP) → MRP → Planning → Planning File Entry → Display (MD21). Enter material number T-M525A## and plant 1000 and choose Execute. b) Your material is assigned to low-level code 999. 2. Which flags (change indicators) are set for your material in the planning file? __________________________________________ a) Indicators NETCH and NETPL are set for the material. Hint: The “Reset Procurement Proposals” indicator corresponds to planning mode 3 on the initial screen of the planning run. Task 2: Carry out single-level, single-item planning for your material T-M525A## in plant 1000. 1. Choose the planning process type for Net change planning for total horizon. What processing key do you use? __________________________________________ a) Go to the SAP Easy Access menu and choose: Logistics → Materials Management → Material Requirements Planning (MRP) → MRP → Planning → Single-Item, Single-Level (MD03). b) For net change planning for total horizon, use processing key NETCH. 2. Make sure that the requirements planning run creates planned orders. What creation indicator do you use for purchase requisitions? __________________________________________ a) So that planned orders are created, enter value 3 for the creation indicator for purchase requisitions. Continued on next page 2009 © 2009 SAP AG. All rights reserved. 71
    • Unit 2: Planning Run SCM525 3. The result of the planning run should immediately display. Select Display results before they are saved. a) Select the Display results before they are saved indicator. b) Choose Enter to start the planning run. Confirm the warning message and choose Enter. 4. Now check the planning result. Did the system create a planned order for your material? ____________ How do you explain the receipt quantity of the planned order? _______________________________________________ Save your planning result. a) A planned order of over 500 pieces was created, as a fixed lot size of 500 pieces was entered in the material master. b) Choose Save to save the planning result. Task 3: Display the planning file entry again for your material T-M525A## in plant 1000. 1. Which planning indicators (change indicators) are set for your material? _______________________________ a) Go to the SAP Easy Access menu and choose: Logistics → Materials Management → Material Requirements Planning (MRP) → MRP → Planning → Planning File Entry → Display (MD21). b) No indicators are set for the material. Task 4: Display the MRP data for your material T-M525A## in the material master record. 1. What MRP group is allocated to your material? Continued on next page 72 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Executing the Planning Run ____________________ a) Go to the SAP Easy Access menu and choose: Logistics → Materials Management → Material Master → Material → Change → Immediately (MM02). Enter material number T-M525A## and choose Enter. Select the MRP 1 view and choose Enter. Enter plant 1000 and choose Enter. b) The MRP Group field is under the General Data area. The material is assigned to MRP group 0000. 2. Where does this allocation originate? __________________________________________________ a) This assignment comes from the material type ROH (raw material) that is assigned to the material. b) The assignment of the MRP group for each material type is made in Customizing for Materials Management under Consumption-Based Planning → MRP Groups → Define MRP Group For Each Material Type. Go to the line with the material type ROH and plant 1000 to find the assigned MRP group 0000. Task 5: Display the control parameters for MRP group 0000. 1. Display the control parameters for the MRP group of your material in plant 1000. In Customizing, choose Carry Out Overall Maintenance of MRP Groups. What planning horizon is specified for the MRP group of your material in plant 1000? ____________________ a) Maintain the control parameters for the MRP groups in Customizing for Materials Management under Consumption-Based Planning → MRP Groups → Carry Out Overall Maintenance of MRP Groups. Enter plant 1000 and choose Maintain. Enter MRP group 1000 and choose Maintain again. b) Choose Planning Horizon. No planning horizon is defined for MRP group 0000. Continued on next page 2009 © 2009 SAP AG. All rights reserved. 73
    • Unit 2: Planning Run SCM525 Task 6: Display the control parameters for plant 1000. 1. What planning horizon is defined for plant 1000? ____________________ a) Maintain the plant parameters in Customizing for Materials Management under Consumption-Based Planning → Plant Parameters → Carry Out Overall Maintenance of Plant Parameters. Choose Maintain and enter plant 1000. Choose Maintain again. b) 100 days (workdays) has been specified as the planning horizon for plant 1000. 2. What planning horizon is relevant for planning material T-M525A## and why? __________________________________________________ a) The MRP group assigned to the material has a higher priority than the plant parameter. However, because no horizon has been defined in the MRP group, the planning horizon defined at plant level is valid. 74 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Executing the Planning Run Lesson Summary You should now be able to: • Name the different control parameters for MRP • Differentiate between the different planning process types and creation indicators for the requirements planning run • Execute requirements planning. 2009 © 2009 SAP AG. All rights reserved. 75
    • Unit 2: Planning Run SCM525 Lesson: Planning Result Lesson Overview In a planning run, the system creates the corresponding procurement proposals if there is a shortage situation. The system also creates MRP lists depending on the creation indicator. Planning run results are covered in this lesson. You will also learn about the different ways of converting a planned order. Lesson Objectives After completing this lesson, you will be able to: • Describe the structure of the MRP lists • Name the ways of converting a planned order. Business Example After requirements planning has been performed, you are responsible for converting planned orders created by the system for externally-acquired materials into a purchase requisition. You first display the created procurement proposals in the MRP list. Planning Result You can execute requirements planning as individual or overall planning. The planning run type determines the scope of the materials to be planned. You can specify the planning run type in the Processing key field on the initial screen. Depending on the selected processing key, the system reads the materials to be planned from the planning file, and deletes the corresponding indicator (NETCH and/or NETPL). 76 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Planning Result Figure 24: Planning Result The results of the planning run are both procurement elements (planned orders, purchase requisitions and schedule lines) and optional MRP lists. MRP lists contain the planning results for the material. The MRP list always displays the stock/requirements status at the time of the last planning run, and provides a work basis for the MRP controller. Any changes made after the planning date are not considered. The list is static. Each MRP list is divided into a header section and an item section. In the MRP list header, material data is recorded, for example, the material number, the plant, and MRP parameters. The items contain information on the individual MRP elements (planned orders, purchase orders, reservations, sales orders, and so on). You can also show the material tree in the MRP list. Hint: You can change the names of the MRP elements. To do this, go to Customizing for Materials Management and choose Materials Management → Consumption-Based Planning → Evaluation → Check Texts for the MRP Elements. The MRP list is stored in the system until it is either manually deleted, or replaced by a new list from a subsequent planning run. Converting Planned Orders A planned order is an internal document used by the MRP controller, specifying how much of a material is needed, and when. A planned order is only used within the company and it is not binding. 2009 © 2009 SAP AG. All rights reserved. 77
    • Unit 2: Planning Run SCM525 Planned orders can be created manually, but are usually generated automatically with a requirements planning run. A planned order has the following characteristics: • It is a procurement proposal in material requirements planning for requirement coverage, an internal planning element. It is not binding so does not trigger procurement directly, just helps with planning. • It can be changed or deleted at any time. • It is still undecided as to whether the material is later procured with in-house production or external procurement. • For in-house produced materials, it is the requirements object for the secondary requirement. It can be used in capacity calculation. • For in-house produced materials, it determines the basic dates for the production. Figure 25: Converting a Planned Order For in-house production, the planned order can be converted into a production order. For external procurement, the planned order can be converted into a purchase requisition. You have two ways of converting the planned orders into purchase requisitions: • Individual conversion • Collective conversion 78 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Planning Result In individual conversion, you can decide whether you want to convert the planned order quantity in total, or only partially. Partial conversion is an advantage when the demand situation has changed, or if you want to use in-house production for part of the planned order. To convert a planned order individually, go to the SAP Easy Access menu and choose: Logistics → Materials Management → Material Requirements Planning → MRP → Planned Order → Convert to Pur. Req. → Individual Conversion (MD14).. You can also convert a planned order directly from the MRP list or current stock/requirements list. In collective conversion, you can select specific planned orders that have start dates within the opening horizon. The opening horizon is the time available for the MRP controller to convert a planned order into a purchase requisition or a production order. The horizon key in the material master record controls the opening horizon. Collective conversion is also possible in the background. To convert planned orders into purchase requisitions collectively, go to the SAP Easy Access menu and choose: Logistics → Materials Management → Material Requirements Planning → MRP → Planned Order → Convert to Pur. Req. → Collective Conversion (MD15). All purchase requisitions that were created by converting a planned order are fixed automatically. They are not changed by later planning runs. 2009 © 2009 SAP AG. All rights reserved. 79
    • Unit 2: Planning Run SCM525 80 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Planning Result Exercise 4: Planning Result Exercise Objectives After completing this exercise, you will be able to: • Display and process MRP lists • Convert planned orders to purchase requisitions Business Example After executing a planning run, the planning result has to be evaluated and revised. If the system creates planned orders during the planning run, these orders have to be converted into purchase requisitions or production orders. To do this, the MRP controller for the material T-M525A## works with the MRP list. Task 1: Display the result of the last planning run. To do this, go to the requirements planning evaluations and choose MRP List - Collective Display. 1. Select all MRP lists for plant 1000, MRP controller 025, procurement type F and MRP type VB. Is there an MRP list for material T-M525A##? ________________ 2. Go to the individual display of the MRP list for material T-M525A##. Is the processing indicator set for this MRP list? _______________ 3. Change the planned order, by calling the order from the list. Increase the quantity of the planned order by 100 pieces. Task 2: After you have changed the planned order, take a look at the MRP list. 1. Why can you not see the quantity change you made in the planned order in this list? ________________________________________________ 2. Convert your changed planned order from the list into a purchase requisition. Ensure that the changed quantity in the planned order is copied into the purchase requisition, and save the purchase requisition. Then set the processing indicator for your material T-M525A## in the MRP list. Continued on next page 2009 © 2009 SAP AG. All rights reserved. 81
    • Unit 2: Planning Run SCM525 Task 3: Call the collective display for MRP lists again. 1. Select all unprocessed MRP lists for plant 1000, MRP controller 025, procurement type F and MRP type VB. Is there an entry for your material T-M525A##? _________________ 82 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Planning Result Solution 4: Planning Result Task 1: Display the result of the last planning run. To do this, go to the requirements planning evaluations and choose MRP List - Collective Display. 1. Select all MRP lists for plant 1000, MRP controller 025, procurement type F and MRP type VB. Is there an MRP list for material T-M525A##? ________________ a) To call the MRP list with collective access, go to the SAP Easy Access menu and choose: Logistics → Materials Management → Material Requirements Planning (MRP) → MRP → Evaluations → MRP List - Coll. Displ. (MD06). Enter plant 1000 and MRP controller 025. You can maintain procurement type F and MRP type VB on the Material Data tab page. Choose Continue (Enter). b) All materials that were selected with your criteria and that have an MRP list are displayed in the collective display. There is a list for material T-M525A##. 2. Go to the individual display of the MRP list for material T-M525A##. Is the processing indicator set for this MRP list? _______________ a) To branch to the individual display of the MRP lists, select the corresponding lines and choose Selected MRP Lists. b) You can see if the processing indicator is set in the header of the MRP list on the Special MRP List Data tab page. The MRP controller has to set the processing indicator manually, as soon as the processing of the MRP list has been completed. At the moment, the processing indicator is therefore not set. c) First exit the individual display, then the collective display of the MRP lists. To do this, select Back. Confirm the message on the Exit material list dialog screen with Yes. Continued on next page 2009 © 2009 SAP AG. All rights reserved. 83
    • Unit 2: Planning Run SCM525 3. Change the planned order, by calling the order from the list. Increase the quantity of the planned order by 100 pieces. a) To change the planned order, first branch to the detail screen of the planned order. Choose Details of Element. b) Choose Change Element to branch to the planned order. Overwrite the quantity and save your changes. Leave the MRP list open for the next task. Task 2: After you have changed the planned order, take a look at the MRP list. 1. Why can you not see the quantity change you made in the planned order in this list? ________________________________________________ a) You cannot see the quantity change in the MRP list since the list is static. It only shows the result of the last planning run, and is updated with the next planning run. 2. Convert your changed planned order from the list into a purchase requisition. Ensure that the changed quantity in the planned order is copied into the purchase requisition, and save the purchase requisition. Then set the processing indicator for your material T-M525A## in the MRP list. a) To convert the planned order into a purchase requisition, first branch to the detail screen of the planned order. To do this, select Details of Element. Choose -> Purchase Requisition. Check the quantity in the Converted Quantity field. The purchase requisition is created with the changed quantity. Save your entries. To do this, select Save. b) You set the processing indicator in the list header. To do this, select Processing indicator on. Task 3: Call the collective display for MRP lists again. 1. Select all unprocessed MRP lists for plant 1000, MRP controller 025, procurement type F and MRP type VB. Is there an entry for your material T-M525A##? Continued on next page 84 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Planning Result _________________ a) To call the MRP list with collective access, go to the SAP Easy Access menu and choose: Logistics → Materials Management → Material Requirements Planning (MRP) → MRP → Evaluations → MRP List - Coll. Displ. (MD06). Enter plant 1000 and MRP controller 025. On the Processing indicator tab, select Only unprocessed MRP lists. You can maintain procurement type F and MRP type VB on the Material Data tab page. Choose Continue (Enter). b) There is no entry in the collective display for material T-M525A##, since you set the processing indicator in the individual list and selected Only unprocessed MRP lists as a selection criterion in the collective access. 2009 © 2009 SAP AG. All rights reserved. 85
    • Unit 2: Planning Run SCM525 Lesson Summary You should now be able to: • Describe the structure of the MRP lists • Name the ways of converting a planned order. 86 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Planning Evaluation Lesson: Planning Evaluation Lesson Overview Various lists are available in the SAP system to evaluate planning results. In this lesson, you will receive detailed information about the MRP list and the current stock/requirements list. The differences between the two lists will also be pointed out. You will learn about the possibility of individual access and collective access to the lists. The most important Customizing settings for the evaluation options are also part of this lesson. Here you will learn about exception messages that are created during the planning run and make the MRP controllers aware of particular situations that have arisen. Lesson Objectives After completing this lesson, you will be able to: • Explain the differences between the MRP list and the current stock/requirements list • Describe the differences between the individual and collective lists • Use the various functions for evaluating the planning result • Make the most important Customizing settings for evaluations. Business Example After the planning order that was generated in the planning run has been converted to a purchase requisition, you want to check the result in the current stock/requirements list again. If an exception situation exists for your material, this is displayed in the form of an exception message. You would like to gain an overview of this in Customizing. Current Stock/Requirements List and MRP List After the regular requirements planning run, check the stock/requirements situation of the planned materials, execute any necessary changes and save the availability of the materials. The MRP list and current stock/requirements list are available for evaluation of planning results. You can only differentiate between the individual access if you want to display the stock/requirements situation for a single material in a list, and the collective access, if you want to display the stock/requirements situation for a range of materials. 2009 © 2009 SAP AG. All rights reserved. 87
    • Unit 2: Planning Run SCM525 Figure 26: Stock/requirements List and MRP List The system creates MRP lists during the planning run depending on the MRP lists creation indicator. These lists contain the planning results for the material. The MRP list always displays the stock/requirements situation at the time of the last planning run and also provides a work basis for the MRP controller. Any changes made after the planning date are not considered. The list is static. The MRP list is stored in the system until it is either deleted manually, or replaced by a new list from a subsequent planning run. The current stock/requirements list displays the most up-to-date stocks and requirements . The main difference between the MRP list and the stock/requirements list is that each time the stock/requirements list is called, the system re-reads the various MRP elements and displays the most up-to-date situation. As a result, you always see the most recent availability situation for the material in the stock/requirements list. Changes made after the planning date are displayed directly. The list is dynamic. The lists contain exactly the same information directly after the planning run. As soon as a MRP-relevant change is made, the information in the stock/requirements list updates. The basic structure of both lists is the same: • Links (optional) are in the form of a tree in the MRP controller's worklist. • The top of the list contains the header with the material number. The header details display more information. • The list contains the individual MRP elements and the corresponding available quantities. 88 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Planning Evaluation Layout and Functions of the MRP Lists The individual lists have a large number of display options. Figure 27: Layout and Functions of the MRP Lists You can display different dates (availability date or goods receipt or delivery date). You can use filters. There is a distinction between selection rules and display filters. With selection rules, you determine which MRP elements and which stocks are to be included in the quantity and stock calculation. You define your own business views. With display filters, you determine which MRP elements and MRP segments display. In this way, you reduce the information displayed so you have a clear selection. Hint: From a materials management perspective, 2 selection rules are important: • SAP VB with dependent requirements also displays dependent requirements for materials planned using consumption-based planning. These are otherwise invisible with MRP type VB (manual reorder point planning). The dependent requirements nevertheless have no influence on MRP. • SAP SA releases instead of delivery schedules are useful for scheduling agreements with release documentation. You can use them to see where releases have been created and sent for vendor delivery schedules. 2009 © 2009 SAP AG. All rights reserved. 89
    • Unit 2: Planning Run SCM525 The period totals are a display variant where the planning results are periodically summarized. The individual periodicities display in the period totals display on different tab pages. This form of display gives you a quick overview of the time development of the material availability. If you want to compare the MRP list with the stock/requirements list, use the compare functions. This means that you can compare the situation at the time of the last planning run with the current stock/requirement situation. The header details show an overview of master and transaction data for each material. This data is grouped together according to topic in individual screens. The MRP type controls which screens are displayed in the requirements planning evaluations. For this, the screen sequences have a key that is then assigned to the MRP type. It is therefore possible to display master data for the evaluation of consumption-based materials that is different to that displayed for MRP planned materials. The items contain information on the individual MRP elements (planned orders, purchase orders, reservations, sales orders, and so on). You can process individual MRP elements from the list. User-specific settings enable you to adjust the lists to your personal requirements. These settings apply to both lists. The user-specific configurations include: • Definition of settings to access the lists • Definition of user-specific transaction calls • Configuration of columns in the lists • Navigation between materials with material tree • Definition of the traffic light values • Saving the selection parameters for collective access into the MRP list. To show the MRP list for a particular material, go to the SAP Easy Access menu and choose: Logistics → Materials Management → Material Requirements Planning (MRP) → MRP → Evaluations → MRP List - Material (MD05). To show the current stock/requirements list for a particular material, go to the SAP Easy Access menu and choose: Logistics → Materials Management → Material Requirements Planning (MRP) → MRP → Evaluations → Stock/Reqmts List (MD04). Collective Lists Collective access is possible with a large number of selection criteria, where the criteria for accessing the current stock/requirements list with collective access differentiate from those in the MRP list. 90 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Planning Evaluation Figure 28: Collective Access to Current Stock/Requirements List During the collective access, a material overview first displays with all selected materials. If you accessed with the indicator Structure lists first, you have orientation help. Traffic light values (red, yellow, green) display how urgent material processing is; the criteria for the display can be user specific. The days' supply and exception groups control the traffic light display. There are various sort and search functions available in the overview and in the individual lists. With the search function, you can specifically select materials according to particular exception messages. You can use the sort functions to determine that the materials listed in the material list after the collective access are sorted according to certain criteria. In collective access, you can also use the graphical display to display the changes to the stock situation of one or several materials. 2009 © 2009 SAP AG. All rights reserved. 91
    • Unit 2: Planning Run SCM525 From the overview, go to the individual lists and process the materials. If, for example, you have selected several lists for processing, you can go from one list directly to the next selected list. Hint: As of ERP 6.0 Enhancement Package 3 you can also set the traffic lights for the stock/requirements list and the MRP list in conjunction with the particular material. To do this, you can define evaluation profiles in Customizing for consumption-based planning. To define evaluation profiles, choose SAP Customizing Implementation Guide: Materials Management → Consumption-Based Planning → Evaluation → Define Evaluation Profile for Range-of-Cover Data. You assign these profiles to the MRP groups that can in turn be entered in the material master record in the MRP 1 view. To assign evaluation profiles, choose SAP Customizing Implementation Guide: Production → Material Requirements Planning → MRP Groups → Carry Out Overall Maintenance of MRP Groups You can assign your evaluation profiles here, dependent on the plant / MRP group combination. To call the current stock/requirements list for collective access, go to the SAP Easy Access menu and choose: Logistics → Materials Management → Material Requirements Planning (MRP) → MRP → Evaluations → Stock/Requirements: Collective Display (MD07). Figure 29: Collective Access to MRP Lists The selection criteria for collective access in the MRP lists are not the same as those in the current stock/requirements lists. You can use the MRP or processing date and/or the processing indicator for the selection here, for example. 92 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Planning Evaluation The orientation guides in the material overview correspond with the current stock/requirements list. It is also possible to search for processing indicators or new exceptions. To call the MRP list for collective access, go to the SAP Easy Access menu and choose: Logistics → Materials Management → Material Requirements Planning (MRP) → MRP → Evaluations → MRP List - Coll. Displ. (MD06). Material Tree The material tree is a structure tree that you can show in the MRP list and in the current stock/requirements list. You can specify in the user settings whether or not you want to display the material tree. Certain materials are automatically included in the material tree: • All materials that you have selected during collective access to the MRP list or current stock/requirements list • All materials for which you have called up the MRP list or current stock/requirements list during a session If you leave this transaction, the material selection will be lost. Figure 30: Material Tree 2009 © 2009 SAP AG. All rights reserved. 93
    • Unit 2: Planning Run SCM525 You can change the layout of the tree and display the following: • Worklist tree: All materials in the current session are displayed (in particular when the initial access is via collective access). • Order tree: All components and assemblies of a selected MRP element are displayed according to the order report. • Product group tree: All materials of a product group (only if using collective access via a product group) are displayed. If you double-click on a material number in the material tree, the number is displayed in the overview. For the worklist tree and order tree, you can set which fields will display in what order. Choose Define Fields and Sequence. Navigation Profile To simplify your work with the MRP list and current stock/requirements lists, there are navigation profiles and user-specific transaction calls (Own Favorites) available in the SAP system. Figure 31: Navigation Profile A navigation profile contains transaction calls for transactions that can be called directly from the current stock/requirements list, or the MRP list. The transactions are either general (actions on a material level) or refer to a particular MRP element. You can reach these transactions using buttons with icons and/or text without having to leave the displayed list. 94 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Planning Evaluation You can define a navigation profile in Customizing for Materials Management under Consumption-Based Planning → Evaluation → Define Navigation Profiles. Each user can assign themselves a profile. To do this, select Environment → Navigation Profile → Assign from the menu bar, enter the required navigation profile and save your entry. In a navigation profile, you can determine any number of transaction calls. The list display is limited to five general transaction calls and two transaction calls for each MRP element. However, only the first five or the first two transaction calls relevant for the particular context appear. You can preassign three parameters for each transaction call for the initial screen of this transaction. You can also link the possibility of offering a transaction call to the following parameters from the material master record: procurement type, material type, MRP group, MRP type. User-specific transaction calls (Own Favorites) complete the general navigation profiles. In your own favorites, you define transaction calls for the transactions you want to branch to, from the lists. As with navigation profiles, you can have both general and specific transaction calls for each MRP element. From the menu bar Environment → Own Favorites → Maintain, you can activate up to five general user-specific transaction calls. Exception Messages Exception messages depend on the procedure and indicate exceptional situations that have to be considered (for example, start date in the past, stock level falling below safety stock). Figure 32: Exception Messages 2009 © 2009 SAP AG. All rights reserved. 95
    • Unit 2: Planning Run SCM525 Exception messages are created during the planning run for situations that need to be checked by the MRP controller. These exception messages can therefore also be used to monitor the planning results. In this way, the MRP controller is able to filter materials out of the planning results that require immediate processing. An exception message refers to an individual MRP element. The number of exception messages displayed in both lists is basically the same. The only difference is that in the stock/requirements list, exception messages for newly scheduled MRP elements cannot be issued. In Customizing for Materials Management under Consumption-Based Planning → Evaluation → Exception Messages → Define and Group Exception Messages, you can determine: • Whether an exception message should be created • The priority of the exception messages, if several exception messages were created during the planning run for an MRP element • The exception messages that are to be grouped together into an exception group • The exception messages that lead to the creation of a MRP list if you set the creation indicator Create MRP list depending on exception messages. Figure 33: Customizing of the Evaluations The period totals are a display form in the MRP list and current stock/requirements list in which the planning results are periodically grouped together. The SAP standard system displays the period totals with the period splits represented on a 96 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Planning Evaluation standard, daily, weekly, and monthly basis. You can define new period splits in Customizing for Materials Management under Consumption-Based Planning → Evaluation → Period Totals → Define Individual Period Split for Period Totals. Traffic light values (red, yellow, green) in the lists display how urgent the processing of materials is. The days' supply and exception groups control the traffic light display. The days' supply shows the number of days a material will last, taking the current plant stock into account. The receipt day's supply also contains other receipt elements in addition to the plant stock. You can set which receipt elements are to be taken into account in Customizing for Materials Management under Consumption-Based Planning → Evaluation → Define Receipt Elements for Receipt Days' Supply. You can define two receipt days' supplies. The header details show an overview of master and transaction data for each material. This data is grouped together according to topic in individual screens. You can call up the screens in the MRP list and stock/requirements list by selecting the relevant tab page. The MRP type controls which screens display in the requirements planning evaluations. You can define screen sequences that are then assigned to the MRP type in Customizing for Materials Management under Consumption-Based Planning → Evaluation → Define Screen Sequence for Header Details. It is therefore possible to display master data for the evaluation of consumption-based materials that differs from that displayed for MRP planned materials. 2009 © 2009 SAP AG. All rights reserved. 97
    • Unit 2: Planning Run SCM525 98 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Planning Evaluation Exercise 5: Evaluating and Processing the Planning Result Exercise Objectives After completing this exercise, you will be able to: • Revise the planning results • Set the current stock/requirements list and MRP list according to user needs Business Example After the planned order has been converted, you check the current stock/requirements situation for your materials on a regular basis. To do this, you want to use the main evaluation options. Task 1: Display the current stock/requirements list for material T-M525A## in plant 1000. 1. Is the firming indicator set for the purchase requisition? _______________ 2. Change the purchase requisition by calling it from the list. Increase the quantity of the purchase requisition by 100 pieces. 3. What does this firming indicator mean? ___________________________________________________ Task 2: You control the personal settings and determine, according to user needs, the appearance of the current stock/requirements list and the MRP list, and make the settings if necessary. 1. From the requirements planning menu, call the current stock/requirements list of material T-M525A## in plant 1000. Display the default settings for your user in the list. The data for the settings is organized according to topic on several tab pages. What are the names of the tab pages? __________________ __________________ __________________ __________________ __________________ Continued on next page 2009 © 2009 SAP AG. All rights reserved. 99
    • Unit 2: Planning Run SCM525 2. In the list, do you see the availability date or the goods receipt date as the date of a MRP element (Deadlines tab page)? __________________________________________________ 3. Return to the user-specific settings on Display tab page and select the With header details for material field. Press Enter to return to the list. Do the header details now display? _____________________ In the header details, which MRP controller is specified in the material master record? _____________________ Close the header details. 4. Position the cursor on the Material field at the head of the list and double-click. What displays? _____________________________ Return to the current stock/requirements list. Task 3: You want to call frequently-used transactions directly from the current stock/requirements list. 1. Assign the navigation profile NAVSCM525 so that you can call up the transaction calls defined in the profile directly from the current stock/requirements list and the MRP list without having to leave the list. 2. Which transaction calls now display on the application toolbar? __________________ __________________ __________________ __________________ 3. You decide to permanently copy this setting into your personal settings. 4. Leave the current stock/requirements list and call the list again. Do the transaction calls display? _________________ Continued on next page 100 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Planning Evaluation Task 4: Execute requirements planning with the help of the transaction calls that display in the current stock/requirements list: 1. Execute a single-level, single-item planning from the list. Does the planning run generate new procurement elements? ___________________ Task 5: Display the overview tree in the current stock/requirements overview. 1. What materials display in the material tree? _________________________________________________ 2. Change to the stock/requirements list of material T-M525C##, by entering the corresponding material number in the Material field in the list header and confirming your change. What materials now display in the material tree? _________________________________________________ 3. Is it possible to individually define the display of the traffic lights in the material tree, depending on the different exception groups? ________________________________________ 4. Use the material tree to return to material T-M525A##. 2009 © 2009 SAP AG. All rights reserved. 101
    • Unit 2: Planning Run SCM525 Solution 5: Evaluating and Processing the Planning Result Task 1: Display the current stock/requirements list for material T-M525A## in plant 1000. 1. Is the firming indicator set for the purchase requisition? _______________ a) To show the current stock/requirements list for a material, go to the SAP Easy Access menu and choose: Logistics → Materials Management → Material Requirements Planning (MRP) → MRP → Evaluations → Stock/Reqmts List (MD04). Enter material number T-M525A## and plant 1000. Confirm your entries and choose Enter. b) The firming indicator for the purchase requisition is set. 2. Change the purchase requisition by calling it from the list. Increase the quantity of the purchase requisition by 100 pieces. a) To change the purchase requisition, first branch to the purchase requisition detail screen. Choose Details of Element. b) Choose Change Element to branch to the purchase requisition. Overwrite the quantity and save your changes. Refresh the current stock/requirements list. To do this, select Refresh. 3. What does this firming indicator mean? ___________________________________________________ a) By setting the firming indicator, dates and quantities cannot be changed for this MRP element by a new MRP run. The MRP controller can still only make manual changes. Task 2: You control the personal settings and determine, according to user needs, the appearance of the current stock/requirements list and the MRP list, and make the settings if necessary. 1. From the requirements planning menu, call the current stock/requirements list of material T-M525A## in plant 1000. Display the default settings for your user in the list. The data for the settings is organized according to topic on several tab pages. What are the names of the tab pages? Continued on next page 102 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Planning Evaluation __________________ __________________ __________________ __________________ __________________ a) To show the current stock/requirements list, go to the SAP Easy Access menu and choose: Logistics → Materials Management → Material Requirements Planning (MRP) → MRP → Evaluations → Stock/Reqmts List (MD04). To define user-specific settings, go to the menu bar and choose Settings → Settings. b) The individual tab pages are: • Display • Period totals • Dates • Filter • General settings 2. In the list, do you see the availability date or the goods receipt date as the date of a MRP element (Deadlines tab page)? __________________________________________________ a) The availability date displays. 3. Return to the user-specific settings on Display tab page and select the With header details for material field. Press Enter to return to the list. Do the header details now display? _____________________ In the header details, which MRP controller is specified in the material master record? _____________________ Continued on next page 2009 © 2009 SAP AG. All rights reserved. 103
    • Unit 2: Planning Run SCM525 Close the header details. a) To define user-specific settings, go to the menu bar and choose Settings → Settings. Branch to the Display tab page and select the With header details for material field. Choose Continue to copy your changes to the list. b) The header details are open according to the setting. MRP controller 025 is assigned to the material. c) Close the header details. To do this, select Collapse header details. 4. Position the cursor on the Material field at the head of the list and double-click. What displays? _____________________________ Return to the current stock/requirements list. a) Double-click on the material number that displays in the header of the Material field. You will see the MRP views of the material master record. b) Return to the current stock/requirements list. To do this, select Back. Task 3: You want to call frequently-used transactions directly from the current stock/requirements list. 1. Assign the navigation profile NAVSCM525 so that you can call up the transaction calls defined in the profile directly from the current stock/requirements list and the MRP list without having to leave the list. a) In the current stock/requirements list, go to the menu bar and choose Environment → Navigation Profile → Assign. b) In the Navigation Profile field using the F4 help, choose the profile with the key NAVSCM525 and description MRP controller SCM525. Copy the entry. 2. Which transaction calls now display on the application toolbar? __________________ __________________ __________________ Continued on next page 104 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Planning Evaluation __________________ a) In the application toolbar, the transaction calls defined in the navigation profile display: • Single-Item, Single-Level • Display Source List • Maintain Source List • Display Planning File Entries 3. You decide to permanently copy this setting into your personal settings. a) To define the navigation profile for your personal settings, go to the menu bar and choose Settings → Settings. Save the defined navigation profile. To do this, select Save. b) Confirm the info message with Enter. 4. Leave the current stock/requirements list and call the list again. Do the transaction calls display? _________________ a) Because you have saved the navigation profile as your user-specific setting, the transaction calls are still offered. Task 4: Execute requirements planning with the help of the transaction calls that display in the current stock/requirements list: 1. Execute a single-level, single-item planning from the list. Does the planning run generate new procurement elements? ___________________ a) To execute a single-item, single-level planning from the current stock/requirements list, choose Single-item planning. Do not change the control parameters. Choose Enter to execute the planning run. Confirm the warning message with Enter. Refresh the list. To do this, select Refresh. b) No new procurement elements were generated because no shortage situation arose. Continued on next page 2009 © 2009 SAP AG. All rights reserved. 105
    • Unit 2: Planning Run SCM525 Task 5: Display the overview tree in the current stock/requirements overview. 1. What materials display in the material tree? _________________________________________________ a) To display the material tree, choose Show Overview Tree. b) All materials that you processed in the current session display. If you accessed the system for the first time with material T-M525A##, this is the only material shown. 2. Change to the stock/requirements list of material T-M525C##, by entering the corresponding material number in the Material field in the list header and confirming your change. What materials now display in the material tree? _________________________________________________ a) In the header details, the Material field, enter the material number T-M525C##. Choose Enter to confirm your entry. b) Material T-M525C## is also displayed in the material tree. 3. Is it possible to individually define the display of the traffic lights in the material tree, depending on the different exception groups? ________________________________________ a) You can set the traffic light values individually in the material tree. b) To set the traffic light values in the overview tree, choose Define Traffic Light. Do not make any changes. Close the Define traffic light dialog box and choose Copy settings. 4. Use the material tree to return to material T-M525A##. a) Double-click in the material tree on the corresponding material number to display the current stock/requirements list for this material. 106 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Planning Evaluation Lesson Summary You should now be able to: • Explain the differences between the MRP list and the current stock/requirements list • Describe the differences between the individual and collective lists • Use the various functions for evaluating the planning result • Make the most important Customizing settings for evaluations. 2009 © 2009 SAP AG. All rights reserved. 107
    • Unit 2: Planning Run SCM525 Lesson: Lot-Size Calculation Lesson Overview During the planning run, the system determines shortage quantities that must be covered by receipt elements. The system calculates the receipt quantity in the lot-size calculation that is carried out during the planning run. The lot-sizing procedure entered in the material master record determines how the lot sizes are calculated. In this lesson, you will learn about the different static and period lot-sizing procedures, and about additional restrictions in the material master record that you can use to determine the lot size. Lesson Objectives After completing this lesson, you will be able to: • Explain the different static and period lot-sizing procedures • Describe additional restrictions for the lot size. Business Example As an employee in MRP, you must maintain the MRP views in the material master record for the individual materials. You must also decide which lot size data to define for this particular material. Both the MRP procedure and material-specific features are important here. Overview of Lot-Sizing Procedures The system determines material shortages for requirement dates in the net requirements calculation. These shortage quantities must now be covered by receipts. The system calculates the receipt quantity in the lot-size calculation, which is carried out during a planning run. You specify how the system is to determine the lot sizes by selecting one of the lot-sizing procedures in material master record maintenance. 108 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Lot-Size Calculation Figure 34: Overview of Lot-Sizing Procedures Three groups of procedures exist for calculating the lot size: • Static lot-sizing procedures • Period lot-sizing procedures • Optimizing lot-sizing procedures The result of the lot-sizing calculation is the amount of a material for production or acquisition. Define lot-sizing procedures in Customizing for Materials Management under Consumption-Based Planning → Planning → Lot-Size Calculation → Define Lot-Sizing Procedure. 2009 © 2009 SAP AG. All rights reserved. 109
    • Unit 2: Planning Run SCM525 Figure 35: Static Lot-Sizing Procedure In the static lot-sizing procedure, the procurement quantity is calculated using only the entered quantities in the material master record. If you select the lot-for-lot order quantity, an order proposal is created for the shortage quantity. If there are several issues on one day and they cannot be covered, the system still only creates one order proposal covering the total shortage quantity on this particular day. Exact lot size means the difference to the reorder point is proposed for reorder point planning. For this reason, this method is only suitable for certain cases (e.g. for spare parts). Time-phased materials planning is an exception. Here, only the exact lot size delivers the required result (for further information, see the lesson “Time-phased materials planning” in unit 3 of the course SCM525.. If you select fixed order quantity, the system creates an order proposal for the fixed lot size in the case of a material shortage. If this is not sufficient to cover the shortage quantity, the system creates several order proposals for the same date until the shortage is covered. With Replenish to maximum stock level, an order proposal is made in case of materials shortage that is equal to the difference of the available stock to the specified maximum stock level. 110 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Lot-Size Calculation Figure 36: Periodic Lot-Sizing In periodic lot-sizing procedures, the system groups several requirement quantities within a time interval together to form a lot. The time period lengths can be either days, weeks, months or a period of flexible length equal to posting periods, as well as freely definable periods according to a planning calendar. Daily lot size: All requirement quantities that fall within a day or within a specific number of days (that you have determined) are grouped together to form a lot. Weekly lot size: All requirement quantities that fall within a week or within a specific number of weeks (that you have determined) are grouped together to form a lot. Monthly lot size: All requirement quantities that fall within a month or within a specific number of months (that you have determined) are grouped together to form a lot. Lot size with flexible period length: All requirement quantities within one or several flexible definable periods are grouped together to form a lot. You determine the period lengths according to the accounting periods. This lot size is also called period lot size. Periodic procedures are suitable in consumption-based MRP for forecast-based planning only. 2009 © 2009 SAP AG. All rights reserved. 111
    • Unit 2: Planning Run SCM525 The system default is to create the availability date for period lot-sizing procedure on the first requirements date of the period. You can also determine whether the availability date is to lie at the start or end of the period. Note: The optimum lot-sizing procedure groups requirements from several periods together to form a lot, whereby an optimum cost ratio is determined between lot size independent costs and storage costs. Price / quantity scales are not taken into account however. You can find more information about optimizing procedures in the SAP library under the section Requirements Planning (PP-MRP). Additional Restrictions for Lot-Size Calculation When maintaining the material master record, you can specify additional restrictions that are to be taken into acccount during lot-size calculation. This includes lot size rounding and the minimum and maximum lot size. Figure 37: Lot Size Rounding With rounding, you can adjust the procurement quantities of delivery, packing, and transport units of measure. This may be useful, for example, if purchase orders are only delivered in containers of X pieces, or if produced quantities can only be packed and transported in entire pallets. There are two rounding options available: • Rounding value (value that is rounded to) • Rounding profile (staggered roundings) 112 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Lot-Size Calculation By specifying a rounding value, the system will determine during lot-size calculation that the lot size quantity is a multiple of an order unit (for example, pallet size if the material is only delivered in entire pallets). In addition to that, you can use rounding profiles. With a rounding profile you can define rounding in a way that takes full advantage of price / quantity scales, for example. You can define several combinations of threshold and rounding values for a rounding profile. Example: The vendor of a particular material offers you the following scale prices: Quantity Price / pc 1 EUR 100 100 EUR 80 1000 EUR 68 On the basis of these prices, you can calculate that with a quantity in excess of 80 pieces, it is worthwhile rounding up to 100 pieces (80 x 100 / 1000), and in excess of 850 pieces it makes sense to round up to 1000 (68 x 1000 / 80). Rounding profiles are defined in Customizing for Materials Management under Consumption-Based Planning → Planning → Lot-Size Calculation → Maintain Rounding Profile. They consist of the threshold value and the rounding value. The threshold value is the value from which the system rounds the value of the next deliverable unit up to. The rounding value is the value from which the system should round up to as soon as the threshold value is exceeded. You can enter the rounding profile in the material master record. It is then included in material requirements planning. You can also enter the rounding profile in the purchasing info record. In this case, rounding is first taken into account when you convert a purchase requisition or create a purchase order manually. 2009 © 2009 SAP AG. All rights reserved. 113
    • Unit 2: Planning Run SCM525 Figure 38: Minimum and Maximum Lot Sizes You can enter a minimum and maximum lot size in the material master record as a limit value. These limit values are taken into consideration during lot-size calculation, whereas the minimum lot size determines the minimum quantity, and the maximum lot size determines the maximum quantity for the procurement proposal. The system then rounds up to the minimum lot size, thus preventing a roundup over the maximum lot size. 114 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Lot-Size Calculation Exercise 6: Optional: Lot-Sizing Exercise Objectives After completing this exercise, you will be able to: • Understand the results of the planning run with different lot-sizing procedures Business Example You want to discover the results of planning runs with different lot-sizing procedures. Task: Test the lot-sizing procedure in the planning run. 1. Create a new material T-M525L## as a copy of the material T-M525A## . In doing so, copy the Purchasing, MRP 1 and 2 and Accounting views. 2. Reset the MRP profile and save the material master record. 3. Change the MRP data in accordance with the following table and execute a planning run after each change. Display the results and enter the result in the table. MRP lot size EX EX EX EX HB HB Min. lot size 100 Max. lot size 50 50 Rounding value 50 Max. stock level 800 900 Rounding profile 0001 Result 4. How can you make sure that the lot size takes the best possible advantage of the following price / quantity scale in the planning run? Continued on next page 2009 © 2009 SAP AG. All rights reserved. 115
    • Unit 2: Planning Run SCM525 PO Quantity Price per Piece 1 100 100 80 1000 68 5. Set up a static rounding profile in Customizing that contains the data from subtask 4. Name this profile Z0##. 116 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Lot-Size Calculation Solution 6: Optional: Lot-Sizing Task: Test the lot-sizing procedure in the planning run. 1. Create a new material T-M525L## as a copy of the material T-M525A## . In doing so, copy the Purchasing, MRP 1 and 2 and Accounting views. a) To create the material master record, go to the SAP Easy Access menu and choose: Logistics → Materials Management → Material Master → Material → Create (General) → Immediately (MM01). b) Enter the material number T-M525L##, mechanical engineering as the industry sector, and raw material as the material type. Enter the reference material T-M525A## too. Confirm your entry and choose Enter. Select the Purchasing, MRP 1, MRP 2, and Accounting 1 views and choose (Continue) Enter. Enter plant 1000 and save it as a default value. Confirm your entry and choose Enter. 2. Reset the MRP profile and save the material master record. a) From the MRP 1 view, choose the menu item Edit → MRP Profile... and remove the entry. Save the new material master record. 3. Change the MRP data in accordance with the following table and execute a planning run after each change. Display the results and enter the result in the table. MRP lot size EX EX EX EX HB HB Min. lot size 100 Max. lot size 50 50 Rounding value 50 Continued on next page 2009 © 2009 SAP AG. All rights reserved. 117
    • Unit 2: Planning Run SCM525 Max. stock level 800 900 Rounding profile 0001 Result a) To simulate the planning run, go to the SAP Easy Access menu and choose Logistics → Materials Management → Material Requirements Planning (MRP) → MRP → Planning → Single-Item, Single-Level (MD03). Enter the material T-M525L## , select the “Display results before they are saved” field and choose Continue (Enter). Confirm the message that follows. Enter the result in the table and return to the initial screen. Now change the material master data and repeat the procedure. MRP lot size EX EX EX EX HB HB Min. lot size 100 Max. lot size 50 50 Rounding value 50 Max. stock level 800 900 Rounding profile 0001 Result A pur- chase requi- sition with quan- tity 80 A pur- chase requi- sition with quan- tity 100 A pur- chase requi- sition with quan- tity 50 and an- other with quan- tity 30 Two pur- chase requi- sitions with quan- tity 50 A pur- chase requi- sition with quan- tity 800 A pur- chase requi- sition with quan- tity 1000 Continued on next page 118 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Lot-Size Calculation 4. How can you make sure that the lot size takes the best possible advantage of the following price / quantity scale in the planning run? PO Quantity Price per Piece 1 100 100 80 1000 68 a) You can achieve this with a rounding profile. Hint: You will find the calculation of the threshold values in the lesson. Continued on next page 2009 © 2009 SAP AG. All rights reserved. 119
    • Unit 2: Planning Run SCM525 5. Set up a static rounding profile in Customizing that contains the data from subtask 4. Name this profile Z0##. a) You can define the rounding profile in Customizing for Materials Management under Consumption-Based Planning → Planning → Lot-Size Calculation → Maintain Rounding Profile. b) Enter Z0## in the Rounding Profile field and choose Create Statically. Hint: You can also define rounding profiles in conjunction with a plant. For the purpose of this exercise, however, you should leave the Plant field empty. c) Enter Rounding Profile Z0## as the name of your profile and fill the table as follows: Threshold value Rounding value 80 100 850 1000 Save the profile by choosing Save. Hint: If you want to test the profile, proceed as described in subtask 3. Use the following settings: MRP lot size: HB Max. stock level: 80 Rounding profile: Z0## This should result in a purchase requisition with a quantity of 100 being generated in the planning run. 120 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Lot-Size Calculation Lesson Summary You should now be able to: • Explain the different static and period lot-sizing procedures • Describe additional restrictions for the lot size. 2009 © 2009 SAP AG. All rights reserved. 121
    • Unit Summary SCM525 Unit Summary You should now be able to: • Name the different options for a planning run • Describe the planning file and explain its functions • Describe the individual subprocesses of a planning run • Explain the meaning of the low-level code. • Name the different control parameters for MRP • Differentiate between the different planning process types and creation indicators for the requirements planning run • Execute requirements planning. • Describe the structure of the MRP lists • Name the ways of converting a planned order. • Explain the differences between the MRP list and the current stock/requirements list • Describe the differences between the individual and collective lists • Use the various functions for evaluating the planning result • Make the most important Customizing settings for evaluations. • Explain the different static and period lot-sizing procedures • Describe additional restrictions for the lot size. 122 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Test Your Knowledge Test Your Knowledge 1. What options are there in the SAP system for executing a planning run? 2. Name the individual subprocesses of a planning run. 3. The low-level code is the lowest level in which a material appears in all BOMs. Determine whether this statement is true or false. □ True □ False 4. Name the possible planning process types in a total planning run. 5. The plant parameters have higher priority than the MRP groups. Determine whether this statement is true or false. □ True □ False 6. In which screen areas can you break down a MRP list? Choose the correct answer(s). □ A Header □ B Footer □ C Items with information about the MRP elements □ D Material tree □ E Favorites □ F Help area 2009 © 2009 SAP AG. All rights reserved. 123
    • Test Your Knowledge SCM525 7. What are the options for converting a planned order into a purchase requisition? 8. Changes made after the planning date are not considered in the MRP list. Determine whether this statement is true or false. □ True □ False 9. What settings can you define in Customizing for Consumption-Based Planning for the exception messages? 10. Which of the following procedures belong to the static lot-sizing procedure? Choose the correct answer(s). □ A Replenish to maximum stock level □ B Monthly lot size □ C Daily lot size □ D Lot-for-lot order quantity □ E Fixed lot size □ F Least unit cost procedure 11. Aside from the lot-sizing procedure, name other ways of influencing a lot size in the material master record. 12. Describe the function of a rounding value. 124 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Test Your Knowledge Answers 1. What options are there in the SAP system for executing a planning run? Answer: • Single-item planning (single-level or multi-level) • Total planning online • Total planning in background processing 2. Name the individual subprocesses of a planning run. Answer: 1. Check the planning file 2. Net requirements calculation 3. Lot-size calculation 4. Scheduling 5. Type of procurement proposals With the corresponding settings, the system determines a source of supply during a planning run for externally procured materials, and assigns them directly to the procurement proposal. 3. The low-level code is the lowest level in which a material appears in all BOMs. Answer: True The low-level code is the lowest level in which a material appears within all BOMs. The code determines the sequence in which the materials are planned: First, the system plans all materials with level 0, then all with level 1, and so on. The lower the low-level code is, the higher the number assigned to the level. 4. Name the possible planning process types in a total planning run. Answer: The following planning process types are available in total planning: • NEUPL for regenerative planning • NETCH for net change planning in the total horizon • NETPL for net change planning only within the planning horizon. 2009 © 2009 SAP AG. All rights reserved. 125
    • Test Your Knowledge SCM525 5. The plant parameters have higher priority than the MRP groups. Answer: False If a setting is possible on several levels, the setting in the MRP group that is assigned to the material has priority over the setting in the plant parameters. In total planning, the system checks for each material whether the material was allocated a MRP group. If no MRP group is allocated for the material, the material is planned using plant parameters. If a MRP group is allocated to the material, the material is planned using MRP group parameters. 6. In which screen areas can you break down a MRP list? Answer: A, C, D Each MRP list is divided into a header section and an item section. In the MRP list header, material data is recorded, for example, the material number, the plant, and MRP parameters. The item section contains information on the individual MRP elements (purchase requisitions, planned orders, purchase orders, and so on). In the left-hand tree in the MRP list, there is a material tree that you can choose to either show or hide. 7. What are the options for converting a planned order into a purchase requisition? Answer: • Individual conversion • Collective conversion There is a difference between collective conversion online and collective conversion in background processing. 126 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Test Your Knowledge 8. Changes made after the planning date are not considered in the MRP list. Answer: True The system creates MRP lists during the planning run depending on the creation indicator MRP lists. These lists contain the planning results for the material. The MRP list always displays the stock/requirements situation at the time of the last planning run, and provides a work basis for the MRP controller. Any changes made after the planning date are not considered. The list is static. In the current stock/requirements list, the most up-to-date development of stocks and requirements displays. The main difference between the MRP list and the stock/requirements list is that each time the stock/requirements list is called, the system re-reads the various MRP elements and displays the most up-to-date situation. As a result, you always see the most recent availability situation for the material in the stock/requirements list. Changes made after the planning date are displayed directly. The list is dynamic. 9. What settings can you define in Customizing for Consumption-Based Planning for the exception messages? Answer: Define the following settings in Customizing for Consumption-Based Planning for the exception messages: • Whether an exception message should be created • The priority of the exception messages, if several exception messages were created during the planning run for an MRP element • Which exception messages are to be grouped together into an exception group • Which exception messages lead to the creation of a MRP list if you set the creation indicator Create MRP list depending on exception messages • The exception message text can be changed 10. Which of the following procedures belong to the static lot-sizing procedure? Answer: A, D, E The following belong to the static lot-sizing procedure: • Lot-for-lot order quantity • Fixed lot size • Replenish to maximum stock level. 2009 © 2009 SAP AG. All rights reserved. 127
    • Test Your Knowledge SCM525 11. Aside from the lot-sizing procedure, name other ways of influencing a lot size in the material master record. Answer: Other lot size data in the material master record that influences the procurement quantity includes: • Rounding value • Rounding profile • Minimum lot size • Maximum lot size 12. Describe the function of a rounding value. Answer: If you specify a rounding value in the material master record, this means that the procurement quantity includes the multiple of a purchase order unit during lot-size calculation. This may be useful if rounding up to the next pallet size, as pallets are only delivered if they are complete. 128 © 2009 SAP AG. All rights reserved. 2009
    • Unit 3 Forecast Unit Overview The third unit covers the procedure for forecasting and the different ways of creating a forecast in the SAP system. This unit explains the use of the forecast in the various consumption-based planning procedures (forecast-based planning, time-phased planning, and automatic reorder point planning). You will also learn about the features of the individual MRP procedures. The unit also provides an overview of the ways to influence and then manually edit the forecast result. Unit Objectives After completing this unit, you will be able to: • Name the prerequisites for the forecast in the SAP system • Differentiate and explain between the forecast models • Describe the different model selection procedures. • Execute the forecasts as individual and total forecasts • Name the ways of influencing the forecast • Evaluate and subsequently process the forecast results. • Describe the principle of forecast-based planning • Explain the result of requirements planning for a material planned with forecast-based planning • Explain the function of the splitting indicator. • Describe the principle of time-phased planning • Explain which materials would benefit from time-phased planning. • Describe the principle of automatic reorder point planning • Explain how the system automatically calculates the reorder point and the safety stock. Unit Contents Lesson: Basics of the Forecast ...............................................131 Lesson: Executing and Postprocessing the Forecast......................137 Exercise 7: Executing and Postprocessing the Forecast .............145 2009 © 2009 SAP AG. All rights reserved. 129
    • Unit 3: Forecast SCM525 Lesson: Forecast-Based Planning............................................152 Exercise 8: Forecast-Based Planning ...................................157 Lesson: Time-Phased Planning...............................................170 Exercise 9: Time-Phased Material Requirements Planning (Optional Exercise).....................................................................173 Lesson: Automatic Reorder Point Planning .................................177 Exercise 10: Automatic Reorder Point Planning .......................181 130 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Basics of the Forecast Lesson: Basics of the Forecast Lesson Overview If you want to run a forecast for a material, certain conditions must be fulfilled. These prerequisites and the required settings in the SAP system are covered in this lesson. You will also learn about the different forecast models and consider the model selection options. Lesson Objectives After completing this lesson, you will be able to: • Name the prerequisites for the forecast in the SAP system • Differentiate and explain between the forecast models • Describe the different model selection procedures. Business Example You are responsible for executing the forecast. You need to decide for each material whether the forecast can be used for the material, and which forecast model or whether the automatic model selection is to be used. Prerequisites If you want to execute the forecast for a material, you must have fulfilled certain prerequisites in the system. 2009 © 2009 SAP AG. All rights reserved. 131
    • Unit 3: Forecast SCM525 Figure 39: Prerequisites If you want to execute a forecast for a material, the forecast parameters for the corresponding material must be maintained in the material master record. You can only carry out the forecast if historical consumption values exist for the material. The system generally updates the consumption values in the material master record during withdrawal postings. Before the forecast is carried out, the consumption values can be checked and corrected, if necessary. In addition, you can enter historical consumption values manually as basic values for the first forecast. Hint: The consumption update for goods movements is determined in Customizing for movement types in inventory management. You can decide whether an update takes place when planned or unplanned consumption is posted, or whether no consumption update takes place. If there is no historical data for a material that the system can access during the forecast, you can carry out the forecast with reference to the consumption values of another material. Hint: As of ERP 6.0 you can also execute the forecast with different historical data. Any data sources can be chosen for this. A scenario is delivered in the standard system where the historical data from the SAP Business Warehouse is loaded to the table WAHD. You will find further information about this in the SAP Library under the search term “alternative historical data”. 132 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Basics of the Forecast You must have determined the rhythm with which the forecast is to be executed. This happens with the period indicator that you define in the material master record. For each material, the forecast can be set monthly, weekly, daily, or for each posting period. The forecast results are only used for MRP if you have set the forecast indicator for the corresponding MRP type in Customizing for Materials Management under Consumption-Based Planning → Master Data → Check MRP Types. There are different ways of executing the forecast for materials. You can execute an individual forecast, when the forecast is executed for a particular material in a particular plant, or you can execute a total forecast, when the forecast is executed for all materials of an entire plant, or all plants. To execute the individual forecast, go to the SAP Easy Access menu and choose: Logistics → Materials Management → Material Requirements Planning (MRP) → Materials Forecast → Forecast → Individual Forecast → Execute (MP30). You also have the option of executing the forecast from the forecast screen in the material master record. Based on the maintained forecast parameters, the forecast calculation can be simulated here in several online steps. The basic function is that of an individual forecast for a material. The forecast values are only updated when you save the material master record. To execute a forecast for an entire plant, go to the SAP Easy Access menu and choose: Logistics → Materials Management → Material Requirements Planning (MRP) → Materials Forecast → Forecast → Total Forecast. You can choose between the total forecast online (MP38) or in background processing (MPBT). To avoid overloading the system, carry out the total forecast in background mode. Forecast Models When a series of consumption values is analyzed, certain patterns can usually be detected. From these patterns, you can then differentiate between various forecast models. 2009 © 2009 SAP AG. All rights reserved. 133
    • Unit 3: Forecast SCM525 Figure 40: Forecast Models The following forecast models can be distinguished: • Constant model: A constant consumption flow exists if consumption values vary statistically by a mean value. • Trend model: With a trend model, consumption values constantly fall and rise over a long period of time with only occasional fluctuations. • Seasonal model: With a seasonal consumption flow, periodically recurring peak or low values which differ significantly from a stable mean value are observed. • Seasonal trend model: A seasonal trend consumption flow is characterized by a continual increase or decrease of the mean value. If none of the above patterns can be detected in a series of past consumption values, then we have an irregular consumption flow. Model Selection Before the first forecast can be carried out, you must determine which forecast model the system will use to calculate the forecast values. 134 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Basics of the Forecast Figure 41: Model Selection You have three options: • Manual model selection by the MRP controllers • Automatic model selection • Manual model selection with additional system check If you want to manually select a model, then you must first analyze past consumption data. If you want a model to be selected automatically, you can instruct the system to analyze the historical data with respect to trend model, seasonal model, or seasonal trend model. Note: If during the automatic model selection, the system cannot determine the procedure to be examined during the series of consumption values, it automatically selects the constant model. If you want to use manual model selection with additional system check, specify a model manually and set the system so that it also checks historical values for a seasonal pattern or trend. 2009 © 2009 SAP AG. All rights reserved. 135
    • Unit 3: Forecast SCM525 Lesson Summary You should now be able to: • Name the prerequisites for the forecast in the SAP system • Differentiate and explain between the forecast models • Describe the different model selection procedures. 136 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Executing and Postprocessing the Forecast Lesson: Executing and Postprocessing the Forecast Lesson Overview This lesson covers the procedure for the forecast and the different ways of creating a forecast in the SAP system. You will learn the individual steps that the system executes during a forecast. The lesson also provides an overview of the ways to influence and manually edit the forecast result. Lesson Objectives After completing this lesson, you will be able to: • Execute the forecasts as individual and total forecasts • Name the ways of influencing the forecast • Evaluate and subsequently process the forecast results. Business Example After executing the forecast, check the forecast results. Errors and exception situations are logged in messages. In certain cases, you must then process the forecast result manually. First Forecast Before executing the first forecast for a material, you must define which model (constant model, trend model, seasonal model or seasonal trend model) the system uses to determine the forecast values. You can select this model manually, manually with an additional automatic test, or automatically (see lesson Basics for the Forecast). To determine the forecast model, the system analyzes the series of consumption values of the corresponding material. In the first forecast, as well as the determination of the forecast values, the following operations run: • Model initialization (calculation of model parameters) • Optimization of smoothing factors • Ex-post forecast for exponential smoothing procedures 2009 © 2009 SAP AG. All rights reserved. 137
    • Unit 3: Forecast SCM525 Figure 42: First Forecast Model initialization is the determination of the model parameters (basic value, trend value, and seasonal indices) that are necessary for forecast models. Initialization takes place automatically with the first forecast. Also, initialization must be executed if there is a structural interruption, in other words, when the previous forecast model loses its validity. The following table shows the model parameters necessary for a particular forecast model: Model Model Parameter Constant model Basic value Trend model Basic value and trend value Seasonal model Basic value and seasonal indices Seasonal trend model Basic value, trend value, and seasonal indices As a rule, the forecast model is automatically initialized. The system requires a particular minimum number of historical values for the relevant model. You can enter the number of periods for initialization in the forecast view in the material master. For a constant model, you need at least one value, for a trend model at least three, for a seasonal model (periods month and season year) at least 13, for a trend season (periods month and season year) at least 15 values. 138 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Executing and Postprocessing the Forecast For forecast models for exponential smoothing, you can set the system so that the smoothing factors are optimized. For this parameter optimization, the system calculates several parameter combinations and then selects the combination with the lowest mean absolute deviation (MAD). Ex-post forecast is a forecast for past periods. A forecast for the most recent historical consumption values is carried out on the basis of older historical consumption values. These are compared to the actual consumption values in order to adjust the model parameters to the actual consumption flow in the best possible way. Figure 43: Ex-post forecast If more historical values are available than the system requires or is to use for model initialization, then the system will carry out an ex-post forecast. In order to do this, the system divides the series of historical values into two groups. The first group with the older values is used for model initialization. The forecast is repeated for the second section, that is, the forecast is carried out parallel to the time series of consumption. The historical forecast values are then compared to actual consumption values. The model parameters are better suited now to the most recent developments. During the initialization phase, you can use the ex-post forecast to monitor the forecast model by comparing the forecast values in the ex-post forecast area with the actual consumption values. The ex-post forecast does not only play an important role in the first forecast, but is also very important in the subsequent forecasts. It is executed when skipping from forecast periods, when evaluating the forecast quality and during parameter optimization. In parameter optimization, the best combination of smoothing factors is executed with the help of the ex-post forecast. 2009 © 2009 SAP AG. All rights reserved. 139
    • Unit 3: Forecast SCM525 The ex-post forecast is only possible for models with the exponential smoothing procedure. Figure 44: Exponential Smoothing for Constant Model The system carries out forecasting for the constant model using the first-order exponential smoothing procedure. The main principle of this procedure is the fact that the importance of the consumption series values for the forecast decreases as the age of the values increases. In order to determine the forecast value, you only need the previous forecast value, the latest historical value, and the smoothing factor, alpha. This smoothing factor will evaluate the historical values so that the most recent values have more importance in the forecast than the older values. The smoothing factor is a value used to control how much a past consumption value is used in the forecast calculation. The smoothing factor can have a value between 0 and 1. In parameter optimization, the procedure of ex-post forecast as described above is used to optimize the smoothing factors. In the material master record, you can define whether parameter optimization is to take place during the forecast. In the first run, if a forecast is executed with parameter optimization, the smoothing factors - starting with a start value - are gradually increased at each simulation run. The increment is defined by the optimization level determined in the material master record. In a second run, the system continues to examine the area of parameter combination with the lowest mean absolute deviation. The optimum parameter combination delivers the lowest mean absolute deviation. Optimization of smoothing factors is only possible for models with the exponential smoothing procedure. Forecast Procedures There are several ways of carrying out the material forecast. The basic difference between the individual forecast and the total forecast is that the total forecast can be executed online or using background processing. 140 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Executing and Postprocessing the Forecast Figure 45: Forecast Procedures An individual forecast is only executed for a material within a particular plant. To execute the individual forecast, go to the SAP Easy Access menu and choose: Logistics → Materials Management → Material Requirements Planning (MRP) → Materials Forecast → Forecast → Individual Forecast → Execute (MP30). You also have the option of triggering the individual forecast from the forecast screen in the material master record. Based on the maintained forecast parameters, the forecast calculation can be simulated in several online steps. The basic function is that of the individual forecast for a material. The forecast values are only updated when you save the material master record. The forecast settings can be changed interactively here as often as necessary before the forecast results are saved. A total forecast is the forecast for all materials in an entire plant or all plants. To start the total forecast, go to the SAP Easy Access menu and choose: Logistics → Materials Management → Material Requirements Planning (MRP) → Materials Forecast → Forecast → Total Forecast. You can choose between the total forecast online (MP38) or in background processing (MPBT). To avoid overloading the system, carry out the total forecast in background mode. As soon as the total forecast run is finished, the system displays a list of all materials for which the forecast was carried out, provided you have set the indicator Log Record. Postprocessing of the Forecast Results and Forecast Influences You need to check the results after a forecast run. 2009 © 2009 SAP AG. All rights reserved. 141
    • Unit 3: Forecast SCM525 Figure 46: Postprocessing the Forecast Results There are two ways of checking the forecast results: • Online check Errors or exceptional situations that appear during the total forecast are recorded in exception messages and are assigned to a certain error class. If an error occurs in a material forecast, then the system marks the material for which the error occurs for postprocessing. The selected materials can be checked and postprocessed in online mode. If you want to restrict the selection, you can specify an error class. • List check You can use a print program to issue a list of the forecast materials, then use this list for the check. You can then print the list either online or in the background mode. To print online, go to the SAP Easy Access menu and choose: Logistics → Materials Management → Material Requirements Planning (MRP) → Materials Forecast → Forecast → Total Forecast → Print (MP39). When the system has created the list of all forecast materials, you will see the results list and learn how many forecast materials the print-out contains. With a background request, you can schedule the printing job for another point in time and start with a particular selection variant. To print as a background job, go to the SAP Easy Access menu and choose: Logistics → Materials Management → Material Requirements Planning (MRP) → Materials Forecast → Forecast → Total Forecast → Print (Background) (MPDR). Note: If the procedural and exception messages that arose during the forecast run are also to be printed, select the Log field. 142 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Executing and Postprocessing the Forecast Possible exception situations include: • No historical data exists • Safety stock not calculated because service level = 0 • Pattern of consumption series has changed. The assignment of an exception situation to an error class takes place in Customizing for Materials Management under Consumption-Based Planning → Forecast → Assign Forecast Errors to Error Classes. The forecast result can be affected by many factors. Figure 47: Influencing the Forecast The historical values updated by the system in the material master record, and the forecast values calculated by the system can be influenced by correction values. This is necessary, for example, with outliers. The system automatically sets a firming indicator for corrected forecast values. This means that the correction value cannot be changed during subsequent forecast runs. Forecast values can also be fixed manually. In such cases, the values cannot be changed during subsequent forecast runs either. The amount of historical data defines the scope of historical data that the system has to consider during the forecast. The default value is 60 (this also corresponds to the maximum possible number of historical values). If you limit the number of historical values, only the selected values will be taken into account for the forecast. When the forecast is executed, error measures are calculated at the same time (error totals, mean absolute deviation and tracking signal). These help monitor the selected forecast model. 2009 © 2009 SAP AG. All rights reserved. 143
    • Unit 3: Forecast SCM525 Figure 48: Measuring Errors The error total is the sum of all forecast errors of a historical data sequence. In turn, the forecast error is the difference between forecast value and actual consumption value of the same period. The error total is used to check the validity of the forecast model in operation. If a model is still valid, you can assume that the error total is distributed normally and has an average of zero. If the consumption pattern has changed, however, the error total will no longer be equal to zero. You need to standardize the forecast error in order to be able to set a limit. Therefore, in addition to the error total, the system also calculates the mean absolute deviation (MAD). The system then adds the errors (irrespective of the plus or minus sign) and divides them by the number of consumption values. The characteristics of a series of consumption values can change over time. To be able to recognize these changes as early as possible, a tracking signal (TS) is calculated for each forecast. This links error totals and mean absolute deviation by calculating the quotient from the error totals and mean absolute deviation. The tracking signal is compared to the tracking limit specified in the material master. If the tracking limit is exceeded by the tracking signal, the MRP controller receives an exception message in the form of a note advising that the forecast model should be checked. The signal limit is automatically set by the system. The default value is 4.00. However, it can be changed by the MRP controller in the material master record maintenance. 144 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Executing and Postprocessing the Forecast Exercise 7: Executing and Postprocessing the Forecast Exercise Objectives After completing this exercise, you will be able to: • Execute a forecast • Evaluate and process the forecast results Business Example You want to know approximately how many requirements to expect in the future for your material. Execute a forecast based on the consumption values in the material master. Task 1: Using the forecast function, you can estimate the future consumption values for your material T-M525A##. 1. First, check the prerequisites for a forecast of your material T-M525A##. Display the current status of the material master record in plant 1000. First branch to the MRP 1 view. How many periods have consumption values? _______________ 2. Examine only the last four (most recent) consumption values. Can you detect a pattern in these consumption values? _______________ If so, which forecast model would you choose? _______________ 3. What period indicator is assigned to your material? _______________ 4. Check in the material information to see if the forecast view is maintained for your material: ____________________ Continued on next page 2009 © 2009 SAP AG. All rights reserved. 145
    • Unit 3: Forecast SCM525 Task 2: Because the forecast view for material T-M525A## in plant 1000 has not yet been created, extend the material master record to see this view. 1. Create the forecast view of your materials T-M525A## in plant 1000. The forecast for your material should be carried out based on the trend model. Limit the number of historical values that the system considers in the forecast to 4. Create the forecast for 10 (future) periods. 2. Is the initialization indicator set, and what does this mean (the initialization indicator is also in the forecast view)? ____________________________________________________ 3. Instruct the system to execute the forecast. Four dialog boxes will appear, one after the other: In the first dialog box, confirm the system proposal with Continue (Enter) to accept the current period as a forecast period. In the second dialog box, confirm the system proposals regarding forecast period and forecast execution. To do this, choose Forecasting. In the third dialog box, confirm the system proposal. To do this, choose Forecasting to confirm the first-order exponential smoothing. In the fourth dialog box, the forecast results display. What basic value did the system calculate? ____________________ What trend value did the system calculate? ____________________ Did the system calculate ex-post forecast values? ____________________ 4. Check the forecast messages. What problems/particular situations are pointed out to you? _________________________________________________ 5. Due to a special sales activity, you expect an increased consumption of your material during three periods over three months. Correct the forecast values of these periods (periods Current month + 3 to Current month + 5). Assume you have an excess consumption of 30 pieces. Accept the forecast values and save your material master record. 146 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Executing and Postprocessing the Forecast Solution 7: Executing and Postprocessing the Forecast Task 1: Using the forecast function, you can estimate the future consumption values for your material T-M525A##. 1. First, check the prerequisites for a forecast of your material T-M525A##. Display the current status of the material master record in plant 1000. First branch to the MRP 1 view. How many periods have consumption values? _______________ a) To display the material master record, go to the SAP Easy Access menu and choose: Logistics → Materials Management → Material Master → Material → Display → Display Current (MM03). Enter material number T-M525A## and choose Enter to confirm your entry. Select MRP 1 and choose Continue (Enter). Enter plant 1000 and choose Enter. b) Change from the main data level to the additional data level. To do this, choose Additional data. Branch to tha Consumption tab page. c) There are consumption values for 11 past periods. 2. Examine only the last four (most recent) consumption values. Can you detect a pattern in these consumption values? _______________ If so, which forecast model would you choose? _______________ a) Yes, there is regularity. The most recent consumption values show a rising trend. b) The trend model is available for the forecast from the trend consumption flow. 3. What period indicator is assigned to your material? _______________ a) The period indicator is on the Consumption tab page. b) The period indicator M is assigned to the material. The consumption values are executed monthly in groups. Continued on next page 2009 © 2009 SAP AG. All rights reserved. 147
    • Unit 3: Forecast SCM525 4. Check in the material information to see if the forecast view is maintained for your material: ____________________ a) To display information for a material, choose Information on material. b) You can see which data was created at plant level. The forecasting view has not been maintained. c) Choose Back to close the dialog box. Leave the material master record. Task 2: Because the forecast view for material T-M525A## in plant 1000 has not yet been created, extend the material master record to see this view. 1. Create the forecast view of your materials T-M525A## in plant 1000. The forecast for your material should be carried out based on the trend model. Limit the number of historical values that the system considers in the forecast to 4. Create the forecast for 10 (future) periods. a) To enhance the material master record with a view, go to the SAP Easy Access menu and choose: Logistics → Materials Management → Material Master → Material → Create (General) → Immediately (MM01). b) Enter material number T-M525A## and choose Enter to confirm your entry. The industry sector and material type are copied from the existing material master record. Confirm the message with Enter. Select the Forecasting view and choose Continue (Enter). Enter plant 1000 and choose Enter. c) In the Forecast model field, enter T for trend model. In the Historical periods field, enter 4. This means that only the four most recent historical values are considered in the forecast. In the Forecast periods field, enter 10. This informs the system that the forecast is created for ten future periods. 2. Is the initialization indicator set, and what does this mean (the initialization indicator is also in the forecast view)? Continued on next page 148 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Executing and Postprocessing the Forecast ____________________________________________________ a) The initialization indicator is automatically set when carrying out an initial forecast. The initialization indicator specifies that the system should initialize a forecast model. The system also calculates the parameters that are needed for the model (such as basic value, trend value, and seasonal indices). 3. Instruct the system to execute the forecast. Four dialog boxes will appear, one after the other: In the first dialog box, confirm the system proposal with Continue (Enter) to accept the current period as a forecast period. In the second dialog box, confirm the system proposals regarding forecast period and forecast execution. To do this, choose Forecasting. In the third dialog box, confirm the system proposal. To do this, choose Forecasting to confirm the first-order exponential smoothing. In the fourth dialog box, the forecast results display. What basic value did the system calculate? ____________________ What trend value did the system calculate? ____________________ Did the system calculate ex-post forecast values? ____________________ a) Click on the Execute Forecast pushbutton and confirm the next 3 dialog boxes as described in the exercise. b) The basic value calculated in the system is varied and is displayed in the Forecast: Results dialog box. c) The trend value is varied and is displayed in the Forecast: Results dialog box. d) Values were determined during the ex-post forecast because a historical value is more available than the system requires for model initialization. To view the ex-post forecast values, scroll to the top of the results screen. An ex-post forecast value for the previous period is displayed. 4. Check the forecast messages. What problems/particular situations are pointed out to you? Continued on next page 2009 © 2009 SAP AG. All rights reserved. 149
    • Unit 3: Forecast SCM525 _________________________________________________ a) Double-click in the Forecast: Results dialog box on the message Check the forecast error messages to display the forecast messages. b) You have two forecast messages: Initialization started and Ex-post forecast carried out. 5. Due to a special sales activity, you expect an increased consumption of your material during three periods over three months. Correct the forecast values of these periods (periods Current month + 3 to Current month + 5). Assume you have an excess consumption of 30 pieces. Accept the forecast values and save your material master record. a) You can make manual changes to the forecast values calculated by the system in the Forecast: Results dialog box in the column Corr. FV (corrected value for each period). b) Add 30 pieces each to the forecast results of months Current month + 3 to Current month + 5. Overwrite the values calculated by the system in column Corr. FV. Confirm your correction and choose Copy. Save the material master record. Hint: If you change a forecast value manually, the firming indicator is set automatically. This ensures that the value is not overwritten by the system during the next forecast. 150 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Executing and Postprocessing the Forecast Lesson Summary You should now be able to: • Execute the forecasts as individual and total forecasts • Name the ways of influencing the forecast • Evaluate and subsequently process the forecast results. 2009 © 2009 SAP AG. All rights reserved. 151
    • Unit 3: Forecast SCM525 Lesson: Forecast-Based Planning Lesson Overview In this lesson, you will receive a brief overview of the principle of forecast-based planning. You will learn about the features of the MRP procedure in comparison to the other procedures of consumption-based planning. You will understand the forecast result of materials planned with forecast-based planning, net requirements calculation, and scheduling. Lesson Objectives After completing this lesson, you will be able to: • Describe the principle of forecast-based planning • Explain the result of requirements planning for a material planned with forecast-based planning • Explain the function of the splitting indicator. Business Example IDES Ltd. wants to use forecast-based planning. You are to check which materials this MRP procedure is useful for, and maintain the corresponding MRP data in the material master record. Forecasting in Forecast-Based Planning Forecast-based planning is oriented towards material consumption. Forecasting tools are used to determine forecast values for future requirements based on past values. These forecast values form the requirement values for the material requirements planning run. Hint: The forecast with forecast-based planning is a time-saving alternative for materials that are required over a longer period of time and are planned by sales and distribution using planned independent requirements. 152 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Forecast-Based Planning Figure 49: Forecasting in Forecast-Based Planning The forecast calculation is executed at regular time intervals that are forecast using the historical values of the future requirement. This is advantageous because the automatically determined requirement is adjusted to the current consumption pattern. The forecast requirement is reduced by material withdrawal. This ensures that the part of the predicted requirement that has already been realized is not planned again. Figure 50: Forecast Requirements The requirement values predicted by the system are copied in materials requirements planning and net requirements calculation is executed. In net requirements calculation, every period is checked to make sure that the forecast 2009 © 2009 SAP AG. All rights reserved. 153
    • Unit 3: Forecast SCM525 requirement is covered by the available warehouse stock or the fixed dispatched receipts. If forecast requirements cannot be covered due to a material shortage, the system generates an order proposal. The system uses the date of the forecast requirements as a basis for the requirements date. It is assumed that the forecast requirement is at the start of the period. This means that the requirements date is the first workday of the respective period. You can define the period pattern for the forecast (day, week, month or period according to the fiscal year variant) and the number of forecast periods for each material individually. However, it is possible that the forecast's period pattern is too vague for material requirements planning. In this case, you can use the splitting indicator to define for each material that the forecast requirement values for the requirements planning are divided into a more precise period split. If you are using a splitting indicator, all period splits are reduced proportionally during the reduction of the forecast requirements. You can also define how many forecast periods are to be considered in material requirements planning. The splitting indicator is defined in Customizing for Materials Management under Consumption-Based Planning → Forecast → Define Splitting of Forecast Requirements for MRP for each plant and periodicity, and assigned to the material in the material master record. Net Requirements Calculation in Forecast-Based Planning The system executes net requirements calculation during a planning run. It checks whether the requirement is fulfilled by the existing warehouse stock and the fixed scheduled receipts. If there is a requirement shortage, the system generates a procurement proposal. Figure 51: Net Requirements Calculation in Forecast-Based Planning 154 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Forecast-Based Planning In forecast-based planning, the system only regards forecasted requirement values as issues. The shortage quantity is calculated by comparing the receipt elements (warehouse stock, order proposals, purchase orders etc.) with the safety stock and the forecast requirement quantities. Other issue elements, such as sales orders or reservations, only display in forecast-based planning; they are not taken into account in net requirements calculation. Note: In Customizing for Materials Management, under Consumption-Based Planning → MRP Groups → Carry Out Overall Maintenance of MRP Groups, you can determine, dependent on the MRP group, that part of the safety stock or the entire safety stock is also included in the forecast-based planning materials in the MRP calculation. It is now available for requirements in the quantity you determined. Scheduling in Forecast-Based Planning For materials planned according to forecast-based planning, you know the future requirements dates. The materials must be available before these dates. In scheduling, the release date is determined for Purchasing, that is, the date when the material must be ordered so that it is available by the requirements date. The system determines the release date of the purchase requisition (the order start date of the planned order) backwards from the requirements date. This procedure is called backward scheduling. Figure 52: Backward Scheduling for External Procurement Starting from the requirements date, you calculate backwards to get the goods receipt processing time in workdays (result: delivery date/order finish date), then the planned delivery time in calendar days. Then the purchasing department processing time in workdays is subtracted to determine the release date (order start date of the planned order). For planned orders, the opening period is also counted back from the order start date, in order to determine the opening date. 2009 © 2009 SAP AG. All rights reserved. 155
    • Unit 3: Forecast SCM525 If backward scheduling determines a start date in the past, the system then automatically switches to forward scheduling. An exception to this is with plant parameters, where scheduling in the past is allowed. In such cases, a start date in the past is also possible. Hint: With backward scheduling, you can use safety time as an alternative to safety stock. The safety time indicator together with the safety time is available in the MRP 3 view. The requirement dates are thus brought forward by the time you have determined. 156 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Forecast-Based Planning Exercise 8: Forecast-Based Planning Exercise Objectives After completing this exercise, you will be able to: • Use forecasting in forecast-based planning • Describe scheduling • Control the structure of forecast requirements Business Example Create a new material master record for a material that is to be planned with forecast-based planning. Task 1: A trading goods material that is used in plant 1000 is to be planned with forecast-based planning. The series of consumption values is seasonal. Assume that the future requirements will be similar to the past requirements. 1. Create the material master record with a short description and the following data: Material number: T-M525B## Industry sector: Mechanical Engineering Material type: Trading goods Views: Purchasing, MRP 1, MRP 2, Forecasting, Accounting 1 Plant: 1000 Storage location: 0001 Purchasing view: Base Unit of Measure: PC (piece) Purchasing Group: 001 Material Group: 001 MRP 1: MRP type: VV (forecast-based planning) MRP Controller: 025 MRP lot size: EX (lot-for-lot order quantity) Continued on next page 2009 © 2009 SAP AG. All rights reserved. 157
    • Unit 3: Forecast SCM525 MRP 2: Planned delivery time: 5 days Scheduling margin key: 001 Forecasting view: Forecast model: S (seasonal model) Period indicator: M(monthly) Historical periods: 60 (default value) Forecast periods: 12 (default value) Periods per season: 12 Accounting view: Valuation class: 3100 (default value) Moving average price: EUR 10.00 Before saving your material, go to the additional data level in the material master record and choose the Consumption tab. Enter the following total consumption values: Previous month 480 Previous month 1 430 Previous month 2 390 Previous month 3 370 Previous month 4 350 Previous month 5 310 Previous month 6 350 Previous month 7 360 Previous month 8 370 Previous month 9 380 Previous month 10 440 Previous month 11 450 Previous month 12 490 2. Return to the main data level. Go to the Forecasting view and execute the forecast. Confirm the system suggestions in all dialog boxes. Note the forecast values of the first three forecast periods: Continued on next page 158 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Forecast-Based Planning Forecast period 1: ____________________ ____________________ Forecast period 2: ____________________ ____________________ Forecast period 3: ____________________ ____________________ Accept the forecast values and save your material master record. Task 2: Display the current stock/requirements list for your material T-M525B## in plant 1000. 1. Check whether the forecast values were copied as forecast requirements by comparing the first three forecast requirements with the values of the first three forecast periods. Task 3: Carry out single-item planning for material T-M525B## in plant 1000. 1. You can call the planning directly from the list because the navigation profile was defined according to the user requirements. The planning run should create purchase requisitions in the opening period, and planned orders otherwise. 2. Refresh the current stock/requirements list for your material. Did the system create procurement proposals for all forecast requirements? __________ 3. Compare the requirements date of the first forecast requirement to the availability date of the first procurement proposal. How do you explain the difference? ___________________________________________________ Task 4: Change your material master record in the current stock/requirements list in plant 1000. You can branch to the material master record from the menu bar Environment → Change Material. 1. In the material master record, choose view MRP 3 and assign a splitting indicator to the material. This causes the requirement quantities of four forecast periods to be split into weekly intervals in MRP, and only one other forecast period is then taken into account. Save your changes. Hint: If you are required to make an entry in the Availability Check field, enter the value 01. Continued on next page 2009 © 2009 SAP AG. All rights reserved. 159
    • Unit 3: Forecast SCM525 Task 5: Carry out another single-item planning for your material in plant 1000. The planning run should create purchase requisitions in the opening period, and planned orders otherwise. 1. What effects does the change of your material master record have on the planning result? Compare the first forecast requirements with the forecast values in exercise 1.2. and note the value of the first requirement: __________________________________________________ 2. Convert the first purchase requisition from the list into a purchase order. Order the material from vendor T-K500C## at a price of EUR 10.00 per piece. Note the purchase order number: ____________________ Task 6: Post a goods receipt for the material T-M525B## in plant 1000. 1. Post the goods receipt for the purchase order you just created. Task 7: Post a goods issue for the material T-M525B##. 1. Twenty pieces of your material T-M525B## are to be withdrawn from storage location 0001 in plant 1000 for cost center 1000. Post the goods issue. Task 8: Display the current stock/requirements list for your material. 1. Did the consumption posting reduce the first forecast requirement? _______________________________________________________ 160 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Forecast-Based Planning Solution 8: Forecast-Based Planning Task 1: A trading goods material that is used in plant 1000 is to be planned with forecast-based planning. The series of consumption values is seasonal. Assume that the future requirements will be similar to the past requirements. 1. Create the material master record with a short description and the following data: Material number: T-M525B## Industry sector: Mechanical Engineering Material type: Trading goods Views: Purchasing, MRP 1, MRP 2, Forecasting, Accounting 1 Plant: 1000 Storage location: 0001 Purchasing view: Base Unit of Measure: PC (piece) Purchasing Group: 001 Material Group: 001 MRP 1: MRP type: VV (forecast-based planning) MRP Controller: 025 MRP lot size: EX (lot-for-lot order quantity) MRP 2: Planned delivery time: 5 days Scheduling margin key: 001 Forecasting view: Forecast model: S (seasonal model) Period indicator: M(monthly) Historical periods: 60 (default value) Forecast periods: 12 (default value) Periods per season: 12 Continued on next page 2009 © 2009 SAP AG. All rights reserved. 161
    • Unit 3: Forecast SCM525 Accounting view: Valuation class: 3100 (default value) Moving average price: EUR 10.00 Before saving your material, go to the additional data level in the material master record and choose the Consumption tab. Enter the following total consumption values: Previous month 480 Previous month 1 430 Previous month 2 390 Previous month 3 370 Previous month 4 350 Previous month 5 310 Previous month 6 350 Previous month 7 360 Previous month 8 370 Previous month 9 380 Previous month 10 440 Previous month 11 450 Previous month 12 490 a) To create a material master record, go to the SAP Easy Access menu and choose: Logistics → Materials Management → Material Master → Material → Create (General) → Immediately (MM01). b) Enter the material number T-M525B##, mechanical engineering as the industry sector, and trading goods as the material type. Confirm your entry and choose Enter. Select views Purchasing, MRP 1, MRP 2, Forecast, and Accounting 1, and choose Enter. Enter plant 1000, storage location 0001 and confirm your entries with Continue (Enter). c) Maintain the corresponding data in the individual views. Do not save the material master record yet. 2. Return to the main data level. Go to the Forecasting view and execute the forecast. Confirm the system suggestions in all dialog boxes. Continued on next page 162 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Forecast-Based Planning Note the forecast values of the first three forecast periods: Forecast period 1: ____________________ ____________________ Forecast period 2: ____________________ ____________________ Forecast period 3: ____________________ ____________________ Accept the forecast values and save your material master record. a) To reach the main data level, choose Main data. Branch to the Forecasting view. b) Choose Execute forecast to start the forecast. Confirm the forecast date. Choose Enter. Because you have entered a S for seasonal model on the Forecast view in the Forecast model field, the system proposes the seasonal model in the Model selection dialog box . Confirm this entry and choose Forecasting. Confirm the parameters for the seasonal model. To do this, choose Forecasting. c) The system displays the forecast values in the Forecast: Results dialog box. The values vary. For example: • Forecast period 1: 449 449 • Forecast period 2: 439 439 • Forecast period 3: 379. 379. d) Confirm the forecast result. Choose Copy. Save the material master record. Continued on next page 2009 © 2009 SAP AG. All rights reserved. 163
    • Unit 3: Forecast SCM525 Task 2: Display the current stock/requirements list for your material T-M525B## in plant 1000. 1. Check whether the forecast values were copied as forecast requirements by comparing the first three forecast requirements with the values of the first three forecast periods. a) Go to the SAP Easy Access menu and choose: Logistics → Materials Management → Material Requirements Planning (MRP) → MRP → Evaluations → Stock/Reqmts List (MD04). Enter the material number and the plant, and choose Enter to call the list. b) The forecast values were copied as forecast requirements into the current stock/requirements list. Task 3: Carry out single-item planning for material T-M525B## in plant 1000. 1. You can call the planning directly from the list because the navigation profile was defined according to the user requirements. The planning run should create purchase requisitions in the opening period, and planned orders otherwise. a) In the current stock/requirements list, choose from the application toolbar Single-Item Planning. b) Copy the proposed control parameters for the planning run. To do this, select Enter. Confirm the info message. To do this, select Enter. 2. Refresh the current stock/requirements list for your material. Did the system create procurement proposals for all forecast requirements? __________ a) Choose Refresh to refresh the list. b) As a result of the planning run, procurement proposals were created for all forecast requirements. Purchase requisitions in the opening period, and planned orders outside of the opening period were generated. 3. Compare the requirements date of the first forecast requirement to the availability date of the first procurement proposal. How do you explain the difference? Continued on next page 164 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Forecast-Based Planning ___________________________________________________ a) The requirements date of the first forecast requirement is the current date. It is not a future date. Backward scheduling would calculate a date in the past for the procurement proposal. In such cases, the system automatically switches to forward scheduling. The system then calculates the earliest possible receipt due date. Task 4: Change your material master record in the current stock/requirements list in plant 1000. You can branch to the material master record from the menu bar Environment → Change Material. 1. In the material master record, choose view MRP 3 and assign a splitting indicator to the material. This causes the requirement quantities of four forecast periods to be split into weekly intervals in MRP, and only one other forecast period is then taken into account. Save your changes. Hint: If you are required to make an entry in the Availability Check field, enter the value 01. a) In the current stock/requirements list, go to the menu bar and choose Environment → Change Material. You will reach the material master record. b) Branch in the material master record to the MRP 3 view and enter the splitting indicator B. Save your changes in the material master record. You will reach the current stock/requirements list again. Task 5: Carry out another single-item planning for your material in plant 1000. The planning run should create purchase requisitions in the opening period, and planned orders otherwise. 1. What effects does the change of your material master record have on the planning result? Compare the first forecast requirements with the forecast values in exercise 1.2. and note the value of the first requirement: Continued on next page 2009 © 2009 SAP AG. All rights reserved. 165
    • Unit 3: Forecast SCM525 __________________________________________________ a) You can call the planning directly from the list beause the navigation profile was defined according to the user requirements. Choose Single-Item Planning from the application toolbar. Copy the proposed control parameters for the planning run. To do this, select Enter. Confirm the info message. To do this, select Enter. b) Refresh the list. To do this, select Refresh. c) Splitting indicator B specifies that the forecast requirements of four forecast periods are split into weekly intervals in MRP. Only one other forecast period will be taken into account. The amount of the initial requirement varies, but should be around 150. 2. Convert the first purchase requisition from the list into a purchase order. Order the material from vendor T-K500C## at a price of EUR 10.00 per piece. Note the purchase order number: ____________________ a) In the current stock/requirements list for your first purchase requisition, choose Details of element. Choose → Purchase order to branch to the purchase order transaction. b) Enter vendor T-K500C## and purchasing organization 1000 in the purchase order header, then confirm your entry with Enter. Copy the purchase requisition data to the purchase order by selecting the purchase requisition in the document overview of the purchase order, then choose Copy. Finally, add the purchase order price. The material costs 10 EUR from vendor T-K500C##. Save your purchase order and note the purchase order number. Afterwards, you return to the current stock/requirements list automatically. Continued on next page 166 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Forecast-Based Planning Task 6: Post a goods receipt for the material T-M525B## in plant 1000. 1. Post the goods receipt for the purchase order you just created. a) To post a goods receipt, go to the SAP Easy Access menu and choose: Logistics → Materials Management → Inventory Management → Goods Movement → Goods Movement (MIGO). b) Enter the purchase order number in the header of the transaction, then confirm your entries with Enter. Close the detailed data for the item. Choose Close Detail Data. In the item overview, set the indicator to OK. The stock placement takes place in Storage location 0001. Enter this in the item overview. Save your goods receipt posting by choosing Post. Task 7: Post a goods issue for the material T-M525B##. 1. Twenty pieces of your material T-M525B## are to be withdrawn from storage location 0001 in plant 1000 for cost center 1000. Post the goods issue. a) To post a goods issue, go to the SAP Easy Access menu and choose: Logistics → Materials Management → Inventory Management → Goods Movement → Goods Issue (MIGO). b) Change the operation in the header from Goods Receipt to Goods Issue and the reference document from Reservation to Other. In the Mat. Short Text (material short text) column, enter the material number T-M525B##, in the Quantity column, enter 20, in the SLoc (storage location) column, enter 0001, in the Stor. Location (storage location) column, enter 1000, and in the Plant column, enter 1000. Post the goods issue by choosing Post. Task 8: Display the current stock/requirements list for your material. 1. Did the consumption posting reduce the first forecast requirement? Continued on next page 2009 © 2009 SAP AG. All rights reserved. 167
    • Unit 3: Forecast SCM525 _______________________________________________________ a) Go to the SAP Easy Access menu and choose: Logistics → Materials Management → Material Requirements Planning (MRP) → MRP → Evaluations → Stock/Reqmts List (MD04). Enter material number T-M525B## and plant 1000, then choose Enter to call the list. b) According to the Customizing settings for MRP type VV (forecast-based plannng), the forecast requirement will reduce by the consumption. The first forecast requirement was reduced proportionately. The forecast requirements reduction spreads over the entire current period, including the weekly requirement of the current month. 168 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Forecast-Based Planning Lesson Summary You should now be able to: • Describe the principle of forecast-based planning • Explain the result of requirements planning for a material planned with forecast-based planning • Explain the function of the splitting indicator. 2009 © 2009 SAP AG. All rights reserved. 169
    • Unit 3: Forecast SCM525 Lesson: Time-Phased Planning Lesson Overview This lesson provides a brief overview of the procedure of time-phased planning. You will learn about the features of the MRP procedure compared to the other procedures of consumption-based planning. Lesson Objectives After completing this lesson, you will be able to: • Describe the principle of time-phased planning • Explain which materials would benefit from time-phased planning. Business Example Some vendors at IDES Ltd. deliver at regular intervals. For some of the materials at these vendors, you use time-phased planning. You should check which materials this MRP procedure is useful for, and maintain the corresponding MRP data in the material master record. Time-Phased Planning Time-phased planning is a MRP procedure where the materials are planned in a particular time interval. If, for example, a vendor always delivers a material on a certain weekday, then it makes sense to plan this material im keeping with this pattern. Figure 53: Forecasting in Time-Phased Planning 170 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Time-Phased Planning To plan a material with time-phased planning, you must enter the MRP type in the material master record for time-phased planning and the planning cycle. The latter is defined in the form of a planning calendar in the Planning cycle field. Hint: To maintain planning calendars, go to the SAP Easy Access menu and choose Logistics → Production → MRP → Master Data → Planning Calendar → Create Periods (MD25). For time-phased planning materials, the planning file entries NETCH and NETPL in the planning file are not important, so are not set for MRP changes. Materials that are planned according to a time-phase are provided with an MRP date in the planning file. This date is reset on the creation of a new material master, and then after every planning run. This date corresponds to the day that the material will next be planned; it is calculated on the basis of the planning cycle specified in the material master. The material will only be planned on the days that have been specified by the planning cycle. Note: To have control of this procedure and plan a material before the intended MRP date, you can specify a MRP date in the planning run. For example, if the MRP run is planned for Monday, you can execute the run for Monday on Friday. The lot-sizing procedure for a time-phased planning material is the exact lot size, so optimizing lot-sizing procedures can also be applicable for time-phased planning. Figure 54: Time-Phased Planning 2009 © 2009 SAP AG. All rights reserved. 171
    • Unit 3: Forecast SCM525 When the planning run is triggered, the system uses the MRP date in the planning file to check whether the material is to be planned. The MRP date is calculated from the planning cycle. The system calculates the requirement. It also determines a time interval according to the following algorithm: MRP date + planning cycle + purchasing department processing time + planned delivery time + goods receipt processing time. The system compares the forecast requirement in this time interval with the stock, and both the fixed and firm receipts in this time interval. It then calculates the quantity to be ordered. Hint: During calculation, the system assumes that the fixed receipts lie at certain intervals. It does not matter whether the fixed receipts are available at the start or at the end of the interval. This means that there may be a temporary shortage. Note: Time-phased planning can be combined with a reorder point. The material is not only planned on the MRP date in the planning file, but also when the reorder point falls short of due to a goods issue. if the reorder point has a shortage, the material is flagged for planning, as is the planning cycle. During requirements calculation, the system creates a time interval that spans from the time of the reorder point shortage to the availability date of the next regular MRP date. For this time interval, the ordered quantity must suffice. On the next MRP date, the material is again planned at regular intervals. 172 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Time-Phased Planning Exercise 9: Time-Phased Material Requirements Planning (Optional Exercise) Exercise Objectives After completing this exercise, you will be able to: • Create a planning calendar for time-phased material requirements planning Business Example You want to use time-phased material requirements planning for a material group in future. The materials in this group are to be included in the total planning run every Wednesday. To do this, you create a new planning calendar. Task: Create a new planning calendar for time-phased material requirements planning in plant 1000. 1. Create a new planning calendar Z## for plant 1000 with the name Calendar Wednesday-##. The result should be that a material for which this calendar was entered in the material master record is included in the planning run every Wednesday. If the Wednesday is not a working day, the material should be included in the planning run for the next working day. Calculate the periods for the next 2 years. 2009 © 2009 SAP AG. All rights reserved. 173
    • Unit 3: Forecast SCM525 Solution 9: Time-Phased Material Requirements Planning (Optional Exercise) Task: Create a new planning calendar for time-phased material requirements planning in plant 1000. 1. Create a new planning calendar Z## for plant 1000 with the name Calendar Wednesday-##. The result should be that a material for which this calendar was entered in the material master record is included in the planning run every Wednesday. If the Wednesday is not a working day, the material should be included in the planning run for the next working day. Continued on next page 174 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Time-Phased Planning Calculate the periods for the next 2 years. a) You create the planning calendar in Customizing for Materials Management under Consumption-Based Planning → Master Data → Maintain Planning Calendar. b) Position the cursor on Create PPC Planning Calendar and click on Choose. c) Enter plant 1000 and planning calendar Z## and choose Enter. d) Enter the name of the calendar and select the entry Following working day under If period start is not a workday. Then choose Calculate Periods. e) In the Select Calculation Rule dialog box that now appears, select Weeks (Week Days) and choose Continue. f) Under If period start is not a workday, select Following working day. Under Calculation rule for period specification, enter 3 (Wednesday) in the Week day field. Then choose Calculate Periods. g) In the New Dates dialog box that now appears, you can enter the validity period for the calendar. The calendar should be valid from Wednesday of last week to <today in 2 years>. Enter the corresponding data and choose Continue. h) The system now displays the calculated periods. Save the calendar by choosing Save. Hint: You can use the new calendar in the material master record in the MRP 1 view for materials with a time-phased MRP type (such as R1). 2009 © 2009 SAP AG. All rights reserved. 175
    • Unit 3: Forecast SCM525 Lesson Summary You should now be able to: • Describe the principle of time-phased planning • Explain which materials would benefit from time-phased planning. 176 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Automatic Reorder Point Planning Lesson: Automatic Reorder Point Planning Lesson Overview This lesson provides an overview of the automatic reorder point planning procedure. You be given a detailed overview of the necessary settings in the SAP system to get the system to calculate the reorder point and safety stock automatically. Lesson Objectives After completing this lesson, you will be able to: • Describe the principle of automatic reorder point planning • Explain how the system automatically calculates the reorder point and the safety stock. Business Example You determine that for some of your materials it would be useful for the system to automatically calculate the reorder point and safety stock. To do this, use automatic reorder point planning. You are responsible for maintaining the corresponding data in the material master record. Automatic Reorder Point Planning In reorder point planning, procurement is always triggered when the sum of warehouse stock and fixed receipts falls short of the reorder point. The reorder point should include the expected average material requirements during the replenishment lead time. The safety stock should include both excess material consumption during the replenishment lead time, as well as the additional consumption caused by delayed deliveries. The safety stock is therefore part of the reorder point. 2009 © 2009 SAP AG. All rights reserved. 177
    • Unit 3: Forecast SCM525 Figure 55: Forecasting in Reorder Point Planning During automatic reorder point planning, determine the reorder point and the safety stock in the material master. For automatic reorder point planning, the system automatically calculates the reorder point and safety stock during the forecast run. Figure 56: Calculation of the Safety Stock and the Reorder Point Based on previous material consumption values, the system determines the forecast values for future requirements. The reorder point and the safety stock are calculated from these values. These depend on the service level determined by the MRP controller, and the material replenishment lead time. They are then transferred into the respective material master record. Because the forecast program is executed at regular intervals, the reorder point and safety stock adjust to the respective consumption and delivery situation. This contributes to stock reduction. 178 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Automatic Reorder Point Planning The reorder point (RP) is composed of the safety stock (SS) and the average requirement in the replenishment lead time (RLT): RP = SS + average daily requirement * RLT To determine the safety stock (SS), the system requires the following data: • Replenishment lead time (RLT) • Service level (factor according to standard distribution) • mean absolute deviation (MAD). In order for a warehouse to be fully prepared for material delivery at all times, a safety stock of considerable size needs to be kept in reserve as an error in prediction cannot be ruled out. To keep this safety stock as low as possible, a service level is fixed for each material by MRP controllers in the material master record. This shows the probability that a missing quantity does not appear in the replenishment lead time for the corresponding material. If you choose a relatively high service level, the safety stock calculated by the system will also turn out at a high level; if you choose a low service level, the safety stock is also low. Note: You can specify a lower limit for the safety stock. If the calculation of the safety stock results in a value below this limit, the safety stock is then automatically set to the minimum level. You specify the lower limit value for the safety stock in the material master record on the MRP 2 view. 2009 © 2009 SAP AG. All rights reserved. 179
    • Unit 3: Forecast SCM525 180 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Automatic Reorder Point Planning Exercise 10: Automatic Reorder Point Planning Exercise Objectives After completing this exercise, you will be able to: • Use automatic reorder point planning Business Example Use the forecast data of the material T-M525A## in plant 1000 to calculate the reorder point and safety stock automatically. Task 1: You no longer want to maintain the reorder point for your material T-M525A## in plant 1000 manually. Instead, the system should calculate the reorder point to adapt to trend-based consumption flow. 1. Change the material master record T-M525A## in plant 1000. The change should take effect immediately. Change the MRP type for this. 2. What is the current reorder point level? __________________________________________ 3. What is the current safety stock level? __________________________________________ What is the function of the safety stock for a reorder point-planned material? __________________________________________ __________________________________________ 4. The material should have a service level of 90%. Enter the corresponding value in the material master record. What is the service level used for? Now save the material master record. Task 2: Execute the forecast for your material based on the trend model in the material master record. 1. Check whether the corresponding indicator for the forecast model is set in the material master record. Set the initialization indicator, if it is not already set, and execute the forecast. Continued on next page 2009 © 2009 SAP AG. All rights reserved. 181
    • Unit 3: Forecast SCM525 2. Check the forecast result directly in the material master record. What was the reorder point calculated by the system? __________________________________________ What was the basic value calculated by the system? __________________________________________ Accept the forecast values and save your material master record. Task 3: Display the current stock/requirements list for material T-M525A##. 1. Were the forecast values copied as forecast requirements into the current stock/requirements list? 182 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Automatic Reorder Point Planning Solution 10: Automatic Reorder Point Planning Task 1: You no longer want to maintain the reorder point for your material T-M525A## in plant 1000 manually. Instead, the system should calculate the reorder point to adapt to trend-based consumption flow. 1. Change the material master record T-M525A## in plant 1000. The change should take effect immediately. Change the MRP type for this. a) To change the material master record, go to the SAP Easy Access menu and choose: Logistics → Materials Management → Material Master → Material → Change → Immediately (MM02). b) Enter material number T-M525A## and confirm your entry. To do this, select Enter. Select the MRP 1 and MRP 2 views, and choose Continue (Enter). Enter plant 1000 and choose Continue (Enter). c) On the MRP 1 view, change the MRP type from VB to VM for automatic reorder point planning. 2. What is the current reorder point level? __________________________________________ a) The reorder point was maintained manually in the MRP 1 view, and is currently 50 pieces. 3. What is the current safety stock level? __________________________________________ What is the function of the safety stock for a reorder point-planned material? __________________________________________ __________________________________________ a) Change to the MRP 2 view to display the safety stock. The safety stock is currently 0 pieces. b) The safety stock should cover both excess material consumption during the replenishment lead time, as well as the additional consumption caused by delayed deliveries. 4. The material should have a service level of 90%. Enter the corresponding value in the material master record. Continued on next page 2009 © 2009 SAP AG. All rights reserved. 183
    • Unit 3: Forecast SCM525 What is the service level used for? Now save the material master record. a) The service level is also maintained in the MRP 2 view. Enter the value 90 and save your entry. b) The service level helps the system to calculate the safety stock. It specifies what part of the applicable requirement quantities is covered by the warehouse stock. Mathematically, this represents the probability that a missing quantity does not appear in the replenishment lead time for the corresponding material. c) Save the material master record by choosing Save. Task 2: Execute the forecast for your material based on the trend model in the material master record. 1. Check whether the corresponding indicator for the forecast model is set in the material master record. Set the initialization indicator, if it is not already set, and execute the forecast. a) To carry out the forecast in the material master record, go to the SAP Easy Access menu and choose: Logistics → Materials Management → Material Master → Material → Change → Immediately (MM02). b) Enter the material number T-M525A## and confirm your entry. To do this, select Enter. Select the Forecasting view and choose Continue (Enter). Enter plant 1000 and confirm your entries with Continue (Enter). c) Check whether the indicator T for trend model has been entered in the Forecast Model field. If not, correct the entry. Check to see if the initialization indicator is set. If not, set it manually in the Initialization field. d) Start the forecast by choosing Execute forecast. Confirm each of the system proposals in the dialog boxes. To do this, choose Continue (Enter), and then Forecasting twice. Do not save the material master record before you have checked it. 2. Check the forecast result directly in the material master record. What was the reorder point calculated by the system? __________________________________________ Continued on next page 184 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Automatic Reorder Point Planning What was the basic value calculated by the system? __________________________________________ Accept the forecast values and save your material master record. a) In the Forecast: Results dialog box, the system displays the calculated reorder point and safety stock (the result can vary). b) If you have already confirmed the forecast results and have exited the Forecast: Results dialog box, choose Forecast Values in the forecast view to display the forecast results again. c) Choose Copy to copy the forecast values and save the material master record. Task 3: Display the current stock/requirements list for material T-M525A##. 1. Were the forecast values copied as forecast requirements into the current stock/requirements list? a) To show the current stock/requirements list for your material, go to the SAP Easy Access menu and choose: Logistics → Materials Management → Material Requirements Planning (MRP) → MRP → Evaluations → Stock/Reqmts List (MD04). b) The forecast values were not copied as forecast requirements to the stock/requirements list because reorder point planning does not use forecast requirements. The forecast of a material with the MRP type VM (automatic reorder point planning) helps determine the reorder point and safety stock. The safety stock determined in the forecast is displayed as a requirement element. 2009 © 2009 SAP AG. All rights reserved. 185
    • Unit 3: Forecast SCM525 Lesson Summary You should now be able to: • Describe the principle of automatic reorder point planning • Explain how the system automatically calculates the reorder point and the safety stock. 186 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Unit Summary Unit Summary You should now be able to: • Name the prerequisites for the forecast in the SAP system • Differentiate and explain between the forecast models • Describe the different model selection procedures. • Execute the forecasts as individual and total forecasts • Name the ways of influencing the forecast • Evaluate and subsequently process the forecast results. • Describe the principle of forecast-based planning • Explain the result of requirements planning for a material planned with forecast-based planning • Explain the function of the splitting indicator. • Describe the principle of time-phased planning • Explain which materials would benefit from time-phased planning. • Describe the principle of automatic reorder point planning • Explain how the system automatically calculates the reorder point and the safety stock. 2009 © 2009 SAP AG. All rights reserved. 187
    • Unit Summary SCM525 188 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Test Your Knowledge Test Your Knowledge 1. You can execute the forecast for a material without the material master record. Determine whether this statement is true or false. □ True □ False 2. A constant model exists if the consumption flow rises or falls in a trend over a long period of time. Determine whether this statement is true or false. □ True □ False 3. Whic of the following forecast models exist? Choose the correct answer(s). □ A Seasonal model □ B Summer model □ C Trend model □ D Seasonal trend model □ E Constant model □ F Year model 4. What are the options for executing a forecast in the SAP system? Choose the correct answer(s). □ A Total forecast online □ B Individual forecast □ C Individual forecast for a material without a material master record □ D Total forecast in background processing □ E Individual forecast in the material master record □ F Interim forecast 5. What is model initialization? 2009 © 2009 SAP AG. All rights reserved. 189
    • Test Your Knowledge SCM525 6. Which of the following values in the SAP system can help monitor the selected forecast model and count towards the error measures of a forecast? Choose the correct answer(s). □ A Traffic light signal □ B Error total □ C Mean absolute deviation □ D Average forecast times for each material □ E Forecast runtimes □ F Tracking signal 7. For a material planned with forecast-based planning, forward scheduling is always used. Determine whether this statement is true or false. □ True □ False 8. The values that are forecast for a material planned with forecast-based planning, form the forecast for the requirements planning run. Determine whether this statement is true or false. □ True □ False 9. Describe the splitting indicator. 10. Do the planning file entries play a role for a material planned with time-phased planning? 11. What is the difference between manual and automatic reorder point planning? 190 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Test Your Knowledge 12. How do you calculate the reorder point? 13. Based on the historical values, the forecast program determines forecast values for the future requirements for a material planned with reorder point planning. The forecasted values are considered in requirements planning as the forecast requirements. Determine whether this statement is true or false. □ True □ False 2009 © 2009 SAP AG. All rights reserved. 191
    • Test Your Knowledge SCM525 Answers 1. You can execute the forecast for a material without the material master record. Answer: False You can only execute a forecast for a material with a master record. The forecast parameters for the corresponding material must be maintained in the material master record, and historical consumption values must exist for the material. 2. A constant model exists if the consumption flow rises or falls in a trend over a long period of time. Answer: False A constant consumption flow exists if consumption values vary from a stable mean value. A trend model exists if the consumption flow rises or falls in a trend over a long period of time. 3. Whic of the following forecast models exist? Answer: A, C, D, E You can differentiate between the following models: • Seasonal model • Trend model • Seasonal trend model • Constant model. 192 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Test Your Knowledge 4. What are the options for executing a forecast in the SAP system? Answer: A, B, D, E An individual forecast is only executed for a material within a particular plant. To execute the individual forecast, go to the SAP Easy Access menu and choose: Logistics → Materials Management → Material Requirements Planning (MRP) → Materials Forecast → Forecast → Individual Forecast → Execute. You also have the option of triggering the individual forecast from the forecast screen in the material master record. A total forecast is the forecast for all materials in an entire plant or all plants. To start the total forecast, go to the SAP Easy Access menu and choose: Logistics → Materials Management → Material Requirements Planning (MRP) → Materials Forecast → Forecast → Total Forecast. You can choose between the total forecast online or in background processing. 5. What is model initialization? Answer: Model initialization is the determination of the model parameters (basic value, trend value, and seasonal indices) necessary for forecast models. Initialization takes place automatically with the first forecast. Also, initialization must be executed if there is a structural interruption, in other words, when the previous forecast model loses its validity. If the forecast model is initialized automatically, the system requires a certain minimum number of historical consumption values for each model. 6. Which of the following values in the SAP system can help monitor the selected forecast model and count towards the error measures of a forecast? Answer: B, C, F The error total is the sum of all forecast errors of a historical data sequence. In turn, the forecast error is the difference between forecast value and actual consumption value in the same period. If the series of consumption values has changed, the error total will no longer be equal to zero. You must standardize the calculated forecast error in order to set a limit. The system then determines the error total, but also the mean absolute deviation. The system then adds the errors (irrespective of the plus or minus sign) and divides them by the number of consumption values. Using the quotients from the error total and mean absolute deviation, the system now defines a statistic, the tracking signal, to compare with the tracking limit specified in the material master record. If the tracking limit is exceeded by the tracking signal, the MRP controller receives an exception message in the form of a note advising that the forecast model should be checked. 2009 © 2009 SAP AG. All rights reserved. 193
    • Test Your Knowledge SCM525 7. For a material planned with forecast-based planning, forward scheduling is always used. Answer: False For materials planned according to forecast-based planning, you know what the requirements dates in the future are. The materials must be available by these times. In scheduling, the release date is determined for Purchasing, that is, the date when the material must be ordered so that it is available by the requirements date. The system determines the release date of the purchase requisition (the order start date of the planned order) backwards from the requirements date. This procedure is called backward scheduling. Only if backward scheduling determines a start date in the past, does the system then automatically switch to forward scheduling. 8. The values that are forecast for a material planned with forecast-based planning, form the forecast for the requirements planning run. Answer: True Forecasting tools are used to determine forecast values for future requirements based on past values. Unlike automatic reorder point planning, these values form the requirement quantities for the planning run. These forecast values are effective as forecast values in requirements planning. 9. Describe the splitting indicator. Answer: You can individually define the period pattern for the forecast (day, week, month or posting period) and the number of forecast periods for each material. However, it is possible that the forecast's period pattern is too vague for material requirements planning. In this case, you can use the splitting indicator to define for each material that the forecast requirement values for requirements planning are divided into a more precise period split. If you are using a splitting indicator, all period splits are reduced proportionally during the reduction of the forecast requirements. You can also define how many forecast periods are to be considered in material requirements planning. Define the splitting indicator in Customizing for MRP for each plant and period unit, and assign it to the material in the material master. 194 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Test Your Knowledge 10. Do the planning file entries play a role for a material planned with time-phased planning? Answer: For time-phased planning materials, the planning file entries NETCH and NETPL in the planning file are not important, so are not set for MRP changes. Materials that are planned according to a time-phase are provided with an MRP date in the planning file. This date is reset upon the creation of a new material master, and then also after every planning run. This date corresponds to the next day that the material will be planned;the date is calculated on the basis of the planning cycle specified in the material master. The material will only be planned on the days that have been specified by the planning cycle. Time-phased materials planning can be combined with a reorder point. Then the material is not only planned on the MRP date in the planning file, but also when the reorder point has a short fall. When the reorder point has a short fall, the system automatically sets the planning file entry NETCH in the planning file, so that the material is taken into consideration during the next planning run. 11. What is the difference between manual and automatic reorder point planning? Answer: During automatic reorder point planning, you determine the reorder point and the safety stock in the material master. For automatic reorder point planning, the reorder point and safety stock are automatically calculated by the system during the forecast run. 12. How do you calculate the reorder point? Answer: The reorder point (RP) is comprises the safety stock (SS) and the average requirement in the replenishment lead time (RLT) RP = SS + average daily requirement * RLT 13. Based on the historical values, the forecast program determines forecast values for the future requirements for a material planned with reorder point planning. The forecasted values are considered in requirements planning as the forecast requirements. Answer: False For a material planned with forecast-based planning, the forecast values are effective as forecast requirements directly in the requirements planning. However, for automatic reorder point planning, the system automatically calculates the reorder point and safety stock during the forecast run. 2009 © 2009 SAP AG. All rights reserved. 195
    • Unit 3: Forecast SCM525 196 © 2009 SAP AG. All rights reserved. 2009
    • Unit 4 Additional Options in Consumption- Based Planning Unit Overview The fourth unit covers automatic source determination in MRP. You will learn about the source list and the quota arrangement, and the possibility of automatically generating schedule lines in MRP. If you do not want to execute the MRP at plant level, you can use separate storage location MRP and planning with MRP areas in the SAP system. In this unit, you will learn about both methods. Unit Objectives After completing this unit, you will be able to: • Explain the factors responsible for procurement proposal • Name the master data for source determination • Set the automatic source determination for MRP • Describe the storage location MRP procedure • Explain the different options of separate storage location MRP • Explain the process of requirements planning with MRP areas • Explain how the storage location MRP areas function and make the relevant settings Unit Contents Lesson: Source Determination in Materials Planning......................198 Exercise 11: Automatic Source Determination .........................205 Lesson: Separate Storage Location MRP ...................................213 Exercise 12: Separate Storage Location MRP .........................219 Lesson: MRP Areas ............................................................226 Exercise 13: Setting Up a MRP Area ....................................235 2009 © 2009 SAP AG. All rights reserved. 197
    • Unit 4: Additional Options in Consumption-Based Planning SCM525 Lesson: Source Determination in Materials Planning Lesson Overview In this lesson, you will gain a brief overview of the source determination options in materials planning. You will learn about the source list and quota arrangement, and the possibility of automatically generating schedule lines in MRP. Lesson Objectives After completing this lesson, you will be able to: • Explain the factors responsible for procurement proposal • Name the master data for source determination • Set the automatic source determination for MRP Business Example For some materials in a planning run, you want to assign a source of supply directly to the purchase requisitions. Some materials are always procured from the same vendors. You have marked the corresponding supply source in the source list as MRP-relevant. Other materials are to be procured from several vendors. For these, you maintain the corresponding quotas as part of the quota arrangement. Source Determination in Materials Planning The central function of material requirements planning is to guarantee the material availability - the timely procurement of necessary requirement quantities. MRP helps monitor stocks and automatically generates procurement proposals for Purchasing and Production. 198 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Source Determination in Materials Planning Figure 57: Procurement Document Flow In external procurement, the system either creates a planned order or a purchase requisition for direct planning of external procurement quantities. You can use the creation indicator for purchase requisitions/MRP groups on the initial screen of the planning run to decide whether direct purchase requisitions or first planned orders are created. When planning has finished, the planned order must be converted to a purchase requisition, which is subsequently converted to a purchase order. A source of supply is a source that represents a procurement option for a material. In external procurement, the sources of supply include the purchasing information record (info record), contract and scheduling agreement. The source determination helps you to find the suitable source of supply (contract, scheduling agreement or info record) for a material. If you are not using source determination in MRP, purchase requisitions without assigned sources of supply are generated during the planning run. When converting purchase requisitions to purchase orders, you have to enter a source of supply manually. You can use an optimization function in Purchasing to do this. From a list of open purchase requisitions, you can have sources of supply assigned automatically to all selected purchase requisition items. If a requested material has more than one source of supply, you can choose from the possible sources of supply in a dialog box. After the assignment has taken place, you can instruct the system to convert your purchase requisitions into purchase orders. Go to the SAP Easy Access menu and choose Logistics → Materials Management → Purchasing → Purchase Requisition → Follow-on Functions → Assign and Process (ME57). 2009 © 2009 SAP AG. All rights reserved. 199
    • Unit 4: Additional Options in Consumption-Based Planning SCM525 The SAP system can automatically convert purchase requisitions into purchase orders if the requisitions already have a source of supply assigned to them. Go to the SAP Easy Access menu and choose Logistics → Materials Management → Purchasing → Purchase Order → Create → Automatically via Purchase Requisitions (ME59N). You can use the source list or the quota arrangement to assign a source of supply in MRP during the planning run. If a scheduling agreement exists for a material and it is indicated as MRP-relevant (MRP indicator 2) in the source list, it is also possible to create scheduling agreement schedule lines directly during the requirements planning run. Unlike the planned order and purchase requisition, scheduling agreement schedule lines are fixed, mandatory elements; in the broader sense, they belong to the procurement proposals. You can use the creation indicator for scheduling agreement schedule lines in the initial screen of the planning run, or the plant parameters or MRP groups, to control whether or not direct scheduling agreement schedule lines are created. Source of Supply Determination with the Source List The source determination helps you to find the suitable source of supply (contract, scheduling agreement or info record) for a particular requirement. Using the source list is one way of assigning a source of supply directly in MRP during the planning run. Figure 58: Automatic Supply Determination with the Source List In the source list, determine which sources of supply are valid and which are not valid for a material in a plant within a particular timeframe. Each source of supply is then defined with a source list that only includes the vendor number for vendors 200 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Source Determination in Materials Planning with an existing info record, and for vendors with outline agreements also contains the corresponding outline agreement number. You can also enter the plant that the material was procured from as a possible source of supply. The source list helps determine sources of supply valid at a particular time. Hint: The time periods in the source list always refer to the delivery date. The source list offers the following options: • With the Fixed indicator, you can define a source of supply as a fixed source of supply. This indicator determines that the source of supply in Purchasing is the preferred procurement method within the specified time frame. • The Blk indicator allows you to block a source of supply for Purchasing. • With the Plng indicator, you determine the source list usage in MRP. In other words, the MRP indicator in the source list determines how/whether the source of supply defined in the source list is considered in requirements planning. If you set the MRP indicator 1 for a source of supply, this source of supply is automatically assigned to the purchase requisitions and planned orders created in material requirements planning. If you set MRP indicator 2 for a scheduling agreement, the source of supply is assigned to the scheduling agreement schedule lines created in material requirements planning. Note: If you set the Blk indicator and enter just one validity period but no source of supply, the material is then blocked for external procurement in this time period. To maintain a source list, go to the SAP Easy Access menu and choose: Logistics → Materials Management → Purchasing → Master Data → Source List → Maintain (ME01). Source of Supply Determination Using Quota Arrangement Another way of assigning a direct source of supply to the procurement proposal during the planning run is to use a quota arrangement. 2009 © 2009 SAP AG. All rights reserved. 201
    • Unit 4: Additional Options in Consumption-Based Planning SCM525 Figure 59: Automatic Source of Supply Determination Using Quota Arrangement If a material is to be procured from several different sources of supply, you can use a quota arrangement. This enables you to have one quota for various sources of supply. This quota is valid for a particular period of time and specifies how requirements are to be distributed to the individual sources of supply. A quota arrangement is agreed for a certain period of time. A quota arrangement item is created within this time period and the corresponding quota defined for each source of supply. To include a material in a quota arrangement, you have to define a quota arrangement usage indicator in the material master record in the MRP 2 view. The key for quota arrangement usage in the material master record determines: • That a quota arrangement can be applied to a material • The business application areas in which the quota arrangement is used, and that the quantity in the quota arrangement is updated. You define quota arrangement usage indicators in Customizing for Materials Management under Purchasing → Quota Arrangement → Define Quota Arrangement Usage. Hint: If you want to use outline agreements (contracts or scheduling agreements) in the quota arrangement, you must enter the outline agreement as a valid source of supply in the source list and mark it as MRP-relevant. If you are using info records in the quota arrangement, you do not have to include an entry in the source list. 202 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Source Determination in Materials Planning There are two quota arrangement procedures available in MRP: • Allocation quota arrangement • Splitting quota arrangement With the allocation quota arrangement, each lot is assigned to just one source of supply. With the splitting quota arrangement, you can distribute/split a procurement proposal over different sources of supply. Hint: If you want to use the splitting quota arrangement, you must have defined a lot-size procedure with a splitting quota for the material in the material master. Note: You can have more control over the quota arrangement by using additional functions. For example, you can define the maximum delivery capacity of a vendor with the maximum release quantity in the system. To maintain a quota arrangement, go to the SAP Easy Access menu and choose: Logistics → Materials Management → Purchasing → Master Data → Quota Arrangement → Maintain (MEQ1). Automatic Scheduling Agreement Schedule Lines A scheduling agreement is an outline agreement where materials or services are procured on determined dates within a time period. The total quantity of material to be delivered that is determined in a scheduling agreement item can be divided up in the schedule lines into various subquantities with delivery dates as appropriate. Using scheduling agreements will enable you to have shorter processing times and fewer paper transactions in your company, as a scheduling agreement schedule line can replace a multitude of purchase orders or contract release orders. You only need to maintain low warehouse stocks as, by entering the exact delivery time-spot, you can have just-in-time deliveries (JIT). 2009 © 2009 SAP AG. All rights reserved. 203
    • Unit 4: Additional Options in Consumption-Based Planning SCM525 Figure 60: Automatic Scheduling Agreement Schedule Lines The automatic creation of scheduling agreement schedule lines during the planning run is a great advantage when working with scheduling agreements. Providing the following prerequisites are met, schedule lines can be created automatically by MRP: • The scheduling agreement must be the unique source of supply. • Automatic schedule lines must be permitted (MRP indicator 2) using the source list. • On the initial screen of the requirements planning run, you must define the corresponding creation indicator for scheduling agreements (creation indicator 2 for Scheduling agreement schedule lines in the opening horizon or creation indicator 3 for Basic schedule lines). 204 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Source Determination in Materials Planning Exercise 11: Automatic Source Determination Exercise Objectives After completing this exercise, you will be able to: • Maintain the master data that allows an automatic source determination • Create direct scheduling agreement schedule lines during a requirements planning run. Business Example For procurement of material T-M525A## in plant 1200, outline agreements are finalized in the form of scheduling agreements. You want to automate material procurement as much as possible and create schedule lines in the MRP phase. Task 1: Your material T-M525A## is also needed in plant 1200. 1. Create the master data record for plant 1200, storage location 0001. Use the existing material master for plant 1000 as a reference. Create the following views: Purchasing, MRP 1, MRP 2, and Accounting 1. Set the Create views selected indicator. Check the settings in the following fields and change them if necessary: MRP 1: MRP type: VB (Manual reorder point planning) Reorder point: 100 PC Fixed lot size: 400 PC MRP 2: Safety stock: 20 PC Task 2: You have entered into a contract with vendor T-K500C## concerning the procurement of material T-M525A## for plant 1200. The contract should appear in a scheduling agreement and entered as a source of supply relevant for MRP in the source list. 1. Create a scheduling agreement with the following data: Vendor: T-K500C## Continued on next page 2009 © 2009 SAP AG. All rights reserved. 205
    • Unit 4: Additional Options in Consumption-Based Planning SCM525 Agreement type: LP Purchasing organization: 1000 Purchasing group: 001 Plant: 1200 Valid until end: 31.12. of the following year Material: T-M525A## Target quantity: 5000 PC Net price: EUR 10.00 Save your scheduling agreement and note the scheduling agreement number. ____________________ 2. The schedule lines for this scheduling agreement should be created automatically during the planning run. Therefore, you have to enter the scheduling agreement as the source of supply in the source list, and mark it as MRP-relevant. Create a source list entry for material T-M525A## and for plant 1200 with the following data: Valid from: Today Valid to: 31.12. of the following year Vendor: T-K500C## Purchasing organization: 1000 Agreement: Your scheduling agreement number from Exercise 2-1 Item: 10 Task 3: For material T-M525A##, execute a planning run in plant 1200. 1. Carry out single-level, single-item planning for your material in plant 1200. The planning run should always create schedule lines. Task 4: Display the result of the last planning run for your material T-M525A## in plant 1200. 1. Display the MRP list for your material in plant 1200. Did the planning run create a purchase requisition or a schedule line? _____________________________________________________ 206 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Source Determination in Materials Planning Solution 11: Automatic Source Determination Task 1: Your material T-M525A## is also needed in plant 1200. 1. Create the master data record for plant 1200, storage location 0001. Use the existing material master for plant 1000 as a reference. Create the following views: Purchasing, MRP 1, MRP 2, and Accounting 1. Set the Create views selected indicator. Check the settings in the following fields and change them if necessary: MRP 1: MRP type: VB (Manual reorder point planning) Reorder point: 100 PC Fixed lot size: 400 PC MRP 2: Continued on next page 2009 © 2009 SAP AG. All rights reserved. 207
    • Unit 4: Additional Options in Consumption-Based Planning SCM525 Safety stock: 20 PC a) To create the material master record, go to the SAP Easy Access menu and choose: Logistics → Materials Management → Material Master → Material → Create (General) → Immediately (MM01). Enter material number T-M525A##. In the Copy from area, the Material field, enter material number T-M525A##. Confirm your entry and choose Enter. Confirm the information message and choose Enter. In the Select Views dialog screen, select the following views: Purchasing, MRP 1, MRP 2 and Accounting 1. Select the Create views selected indicator and choose Continue (Enter) to confirm your entries. In the Organizational levels area, enter plant 1200 and storage location 1000. In the Copy from area, enter plant 1000 and storage location 0001 and choose Continue (Enter). Confirm the message and choose Confirm (Enter). b) Check the data on the individual views and change it if necessary. Note that for the material in plant 1200 on the MRP 1 view, MRP type VB for manual reorder point planning, a reorder point of 100 pieces and a fixed lot size of 400 pieces is defined. The safety stock is maintained in view MRP 2 and should be 20 pieces. Save the material master record. Task 2: You have entered into a contract with vendor T-K500C## concerning the procurement of material T-M525A## for plant 1200. The contract should appear in a scheduling agreement and entered as a source of supply relevant for MRP in the source list. 1. Create a scheduling agreement with the following data: Vendor: T-K500C## Agreement type: LP Purchasing organization: 1000 Purchasing group: 001 Plant: 1200 Valid until end: 31.12. of the following year Material: T-M525A## Continued on next page 208 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Source Determination in Materials Planning Target quantity: 5000 PC Net price: EUR 10.00 Save your scheduling agreement and note the scheduling agreement number. ____________________ a) To create a scheduling agreement, go to the SAP Easy Access menu and choose: Logistics → Materials Management → Purchasing → Outline Agreement → Scheduling Agreement → Create → Vendor Known (ME31L). Enter Vendor T-K500C##, Outline agreement type LP, Purchasing organization 1000, Purchasing group 001 and Plant 1200. Choose Enter to confirm your entries. b) In the Validity end field, enter 31.12. of the following year. Confirm your entry and choose Enter. In the item overview, enter Material number T-M525A##, Target quantity 5000 pieces and a Net price of 10 EUR. Save the scheduling agreement. 2. The schedule lines for this scheduling agreement should be created automatically during the planning run. Therefore, you have to enter the scheduling agreement as the source of supply in the source list, and mark it as MRP-relevant. Create a source list entry for material T-M525A## and for plant 1200 with the following data: Valid from: Today Valid to: 31.12. of the following year Vendor: T-K500C## Purchasing organization: 1000 Agreement: Your scheduling agreement number from Exercise 2-1 Continued on next page 2009 © 2009 SAP AG. All rights reserved. 209
    • Unit 4: Additional Options in Consumption-Based Planning SCM525 Item: 10 a) To maintain a source list, go to the SAP Easy Access menu and choose: Logistics → Materials Management → Purchasing → Master Data → Source List → Maintain (ME01). Enter Material number T-M525A## and Plant 1200. Confirm your entry and choose Enter. b) Enter the corresponding data manually or choose Generate records. In the Validity Period for Generated Records dialog box, enter the corresponding validity period (valid until 31.12. of the following year) and choose Enter. In the line of the scheduling agreement for the MRP field, set the indicator 2. This marks the scheduling agreement as MRP-relevant, in other words, requirement planning can create a schedule line in this scheduling agreement for a requirement. Note: You can use the scheduling agreement number in the Agreement field to determine the scheduling agreement you just created. Save your source list record. Task 3: For material T-M525A##, execute a planning run in plant 1200. 1. Carry out single-level, single-item planning for your material in plant 1200. The planning run should always create schedule lines. a) To execute single-item , single-level planning, go to the SAP Easy Access menu and choose Logistics → Materials Management → Material Requirements Planning (MRP) → MRP → Planning → Single-Item, Single-Level (MD03). b) Enter Material number T-M525A## and Plant 1200. Check whether 3 for Basic schedule lines is entered as the creation indicator for scheduling agreements. Change this if necessary. You can keep the other control parameters, as the system suggests. Ensure that the MRP area field is not filled. Confirm the control parameter and choose Enter. Confirm the info message and choose Enter. You will receive a message confirming that requirements planning has been executed for material T-M525A## in plant 1200. Continued on next page 210 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Source Determination in Materials Planning Task 4: Display the result of the last planning run for your material T-M525A## in plant 1200. 1. Display the MRP list for your material in plant 1200. Did the planning run create a purchase requisition or a schedule line? _____________________________________________________ a) To display the MRP list for the material, go to the SAP Easy Access menu and choose: Logistics → Materials Management → Material Requirements Planning (MRP) → MRP → Evaluations → MRP List - Material (MD05). b) Enter Material number T-M525A## and Plant 1200. Confirm your entry and choose Enter. A scheduling agreement schedule line was created. However, no purchase requisition was created because the scheduling agreement is marked in the source list as MRP-relevant. 2009 © 2009 SAP AG. All rights reserved. 211
    • Unit 4: Additional Options in Consumption-Based Planning SCM525 Lesson Summary You should now be able to: • Explain the factors responsible for procurement proposal • Name the master data for source determination • Set the automatic source determination for MRP 212 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Separate Storage Location MRP Lesson: Separate Storage Location MRP Lesson Overview MRP is usually carried out at plant level. However, it may be necessary to make the material stock in a storage location unavailable for plant MRP, or to plan it separately. In this lesson you will learn about the simple storage location planning option. Lesson Objectives After completing this lesson, you will be able to: • Describe the storage location MRP procedure • Explain the different options of separate storage location MRP Business Example For specific materials, some storage locations are to be excluded from MRP, or planned separately. As an employee in MRP, you define the corresponding indicators in the material master records. Planning Levels Requirements planning is basically executed at plant level; in other words, the entire stock that exists in the plant is considered in planning. However, the stocks of individual storage locations can be excluded from MRP, or planned independently. For net requirements calculation, the stock of a separately planned storage location is not included in the available stock at plant level. If a receipt element (planned order, purchase requisitions, purchase order, and so on.) or an issue element (reservation, sales order) refers to a storage location excluded from MRP, or one that is planned separately, these elements are not considered at plant level. 2009 © 2009 SAP AG. All rights reserved. 213
    • Unit 4: Additional Options in Consumption-Based Planning SCM525 Figure 61: Planning Levels The reasons for a separate storage location MRP can include: • A warehouse is geographically too far away from the place of production that is planned with plant MRP. • The stock of a storage location is only available for service, and not for production. In the material master record in MRP 4 view, you can use the MRP indicator in the Storage Location MRP area to specify whether the corresponding storage location is also to be planned at plant level (this is set as standard: no entries required), whether the storage location stock is not planned at all, or whether the stock for the storage location is planned separately and appears in the MRP list as an individual segment. Note: You can determine plant-dependent default values for the storage location MRP in Customizing for Materials Management under Consumption-Based Planning → Planning → Define Storage Location MRP per Plant. The indicator set here is proposed when you create a material master record for the storage locations maintained here. The storage locations that are to contain a default value for the storage location MRP are provided with the corresponding indicator: • Storage location stock planned separately • Storage location stock excluded from MRP. 214 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Separate Storage Location MRP Separate storage location MRP usually takes place after simple reorder point planning. In this case, you must also define a reorder point and a replenishment quantity (fixed lot size) at storage location level. You can then monitor the stock of this storage location with MRP and automatically fill at the reorder point if there is a shortage. If you want to plan several storage locations at the same time, or execute storage location MRP using a procedure other than reorder point planning, planning with MRP areas is also available. MRP areas enable you to easily distinguish between the requirements planning below plant level. Exclude Storage Location from MRP If a storage location is excluded from MRP, the storage location stock is not available at plant level, and MRP is not carried out for the stock. The exclusion of storage location stock only applies to MRP. For stock withdrawal, for example, these stocks are available without restrictions. Figure 62: Exclude Storage Location from MRP If a storage location is to be excluded from plant MRP, maintain the MRP indicator 1 (Storage location stock not included in MRP) for the corresponding storage location in the material master record in view MRP 4. In this type of storage location MRP, the available warehouse stock at plant level is reduced by the stock in the storage locations that are not to be planned. Net requirements calculation is not carried out for the storage locations to be planned separately. 2009 © 2009 SAP AG. All rights reserved. 215
    • Unit 4: Additional Options in Consumption-Based Planning SCM525 Plan Storage Location Separately You can plan storage locations separately, in other words, independent of plant stock. If a storage location is to be planned separately, for the corresponding storage location in the material master record in the MRP 4view, define the MRP indicator 2 (Storage location stock planned separately). You also have to define a reorder point and a replenishment quantity. For separately planned storage locations, procurement can take place in different ways. Figure 63: Stock Transfer in Own Plant If you have not entered a special procurement key, the storage location stock is procured by stock transfer from the respective plant, that is. the storage locations not to be planned separately in this plant have to supply the storage location to be planned separately. During a planning run, the system compares the reorder point of storage locations to be planned separately with the stock of this storage location. If available storage location stock falls below the reorder level, a stock transfer reservation equal to replenishment quantity is produced. This is regarded as a receipt (UL-RES) at storage location level and as an issue at plant level (MR-RES). Hint: If procurement of the material at plant level is also consumption-based, you are advised to use MRP type V1 at plant level so that the requirements of the storage location that are planned separately are procured as well. 216 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Separate Storage Location MRP The transfer posting to the separately planned storage location is carried out in Inventory Management with reference to the stock transfer reservation. Figure 64: External Procurement If you define a special procurement key for external procurement in the material master record in the MRP 4 view next to the MRP indicator 2 (storage location stock is planned separately), the requirements planning run will produce a procurement proposal for this storage location. The special procurement key is defined plant-specifically in Customizing for Materials Management under Consumption-Based Planning → Master Data → Define Special Procurement Types, or in the plant parameters, and assigned to a material in the material master record. If, in Customizing under Enterprise Structure → Definition → Materials Management → Maintain Storage Location, you have defined an address for the separately planned storage location that differs from the plant address, this address will also be the default delivery address in the purchase order. 2009 © 2009 SAP AG. All rights reserved. 217
    • Unit 4: Additional Options in Consumption-Based Planning SCM525 Figure 65: Stock Transfer from Another Plant If you define a special procurement key for external procurement in the material master record under MRP 4 view next to the MRP indicator 2 (storage location stock is planned separately), this may also contain a second plant. In shortage situations, the requirements planning run creates a stock transport requisition for the receiving plant. At the same time, a purchase requisition release is generated in the issuing plant. The stock transport requisition must be converted into a stock transport order. 218 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Separate Storage Location MRP Exercise 12: Separate Storage Location MRP Exercise Objectives After completing this exercise, you will be able to: • Make the settings for a separate storage location MRP in the material master record Business Example For some materials, a few storage locations are to be planned separately. Use the material master record to check where you should define the corresponding settings, and which procurement types are possible. Task 1: In material master record of material T-M525A## in plant 1000 and storage location 0001, check where you would have to define the relevant settings if the material is to be planned separately. 1. Display the material master record for material T-M525A## in plant 1000. Which procurement types are possible for a separately planned storage location, and which settings have to be made for this? _____________________________________________ _____________________________________________ _____________________________________________ Task 2: Optional: Perform separate MRP for the storage location Material T-M525A## is to be planned separately in storage location 0003 of plant 1000. 1. Create the MRP view for storage location 0003 for material T-M525A## in plant 1000. Use the MRP indicator with which the storage location is planned separately. Set a reorder point of 100 pieces and a replenishment quantity of 500 pieces. 2. Call the current stock/requirements list for your material T-M525A##. Carry out single-item planning for your material and then refresh the list. Which MRP elements were generated? Continued on next page 2009 © 2009 SAP AG. All rights reserved. 219
    • Unit 4: Additional Options in Consumption-Based Planning SCM525 Task 3: Optional: Create a new special procurement key In future, you want to procure materials in plant 1000 by stock transfer from plant AC##. To do this, you need to be able to generate stock transport requisitions in the planning run automatically. 1. Create a new special procurement key for material requirements planning that allows stock transfers from plant AC##. To do this, copy special procurement key 40 in plant 1000. Name the new special procurement key as follows: Groups 0 - 9 X# (# = the last digit of your group number) Groups 10 - 19 Y# (# = the last digit of your group number) Groups 20 - 29 Z# (# = the last digit of your group number) 220 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Separate Storage Location MRP Solution 12: Separate Storage Location MRP Task 1: In material master record of material T-M525A## in plant 1000 and storage location 0001, check where you would have to define the relevant settings if the material is to be planned separately. 1. Display the material master record for material T-M525A## in plant 1000. Which procurement types are possible for a separately planned storage location, and which settings have to be made for this? _____________________________________________ _____________________________________________ _____________________________________________ a) To display the material master record, go to the SAP Easy Access menu and choose: Logistics → Materials Management → Material Master → Material → Display → Display Current (MM03). b) Enter the material number T-M525A## and choose Enter. Select the MRP 4 view and choose Enter. Enter plant 1000 and storage location 0001, and choose Enter. c) In the Storage location MRP, you can see the setting options for a separately planned storage location. Use the MRP indicator in the storage location MRP area to control whether a storage location is to be planned separately or excluded from MRP. Separate storage location MRP usually takes place after simple reorder point planning. Enter a reorder point and a replenishment quantity (fixed lot size). Use the special procurement key to determine the procurement type for the storage location. Hint: If the Storage Location MRP area is not displayed, you have to create the MRP 4 view for storage location 0001 (transaction MM01). Continued on next page 2009 © 2009 SAP AG. All rights reserved. 221
    • Unit 4: Additional Options in Consumption-Based Planning SCM525 Task 2: Optional: Perform separate MRP for the storage location Material T-M525A## is to be planned separately in storage location 0003 of plant 1000. 1. Create the MRP view for storage location 0003 for material T-M525A## in plant 1000. Use the MRP indicator with which the storage location is planned separately. Set a reorder point of 100 pieces and a replenishment quantity of 500 pieces. a) To create the material master record, go to the SAP Easy Access menu and choose: Logistics → Materials Management → Material Master → Material → Create (General) → Immediately (MM01). b) Enter material number T-M525A## and choose Select View(s). Select the MRP 4 view and choose Organizational Levels. Enter plant 1000 and storage location 0003, and choose Enter. c) In the SLoc MRP Indicator field, enter 2, in the Reorder Point field 100, and in the Replenishment Qty field 500 and choose Save. 2. Call the current stock/requirements list for your material T-M525A##. Carry out single-item planning for your material and then refresh the list. Continued on next page 222 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Separate Storage Location MRP Which MRP elements were generated? a) To show the current stock/requirements list for your material, go to the SAP Easy Access menu and choose: Logistics → Materials Management → Material Requirements Planning (MRP) → MRP → Evaluations → Stock/Reqmts List (MD04). Enter material number T-M525A## and plant 1000. Check your entries and choose Enter. You will now see a separate row for storage location 0003 with a current warehouse stock of zero. b) To start single-item planning from the current stock/requirements list, choose Single-item planning. Do not change the control parameters. Choose Enter to execute the planning run. Confirm the warning message with Enter. Refresh the list. To do this, select Refresh. c) Two new MRP elements are displayed. For the stock transfer, the system generates a reservation that is displayed as a receipt element in storage location 0003 and as a requirement element in the plant Hint: To transfer the material physically, you have to perform a transfer posting with reference to the reservation generated in the planning run. Task 3: Optional: Create a new special procurement key In future, you want to procure materials in plant 1000 by stock transfer from plant AC##. To do this, you need to be able to generate stock transport requisitions in the planning run automatically. 1. Create a new special procurement key for material requirements planning that allows stock transfers from plant AC##. To do this, copy special procurement key 40 in plant 1000. Name the new special procurement key as follows: Continued on next page 2009 © 2009 SAP AG. All rights reserved. 223
    • Unit 4: Additional Options in Consumption-Based Planning SCM525 Groups 0 - 9 X# (# = the last digit of your group number) Groups 10 - 19 Y# (# = the last digit of your group number) Groups 20 - 29 Z# (# = the last digit of your group number) a) You maintain the special procurement key in Customizing for Materials Management under Consumption-Based Planning → Master Data → Define Special Procurement Types. b) Select the row with the entry Plant 1000 and Special Procurement Type 40 and choose Copy As... c) Enter the special procurement type as described in the exercise task. Change the name of the plant from 1100 to AC##. Under Special Procurement, change the plant from 1100 to AC## as well. Confirm your entry with Copy and then save it by choosing Save. 224 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: Separate Storage Location MRP Lesson Summary You should now be able to: • Describe the storage location MRP procedure • Explain the different options of separate storage location MRP 2009 © 2009 SAP AG. All rights reserved. 225
    • Unit 4: Additional Options in Consumption-Based Planning SCM525 Lesson: MRP Areas Lesson Overview An MRP area is an independent planning organizational unit for which you can carry out separate requirements planning. MRP areas make differentiated requirements planning possible. In this lesson, you will learn about the different types of MRP areas and the necessary settings in the SAP system. Lesson Objectives After completing this lesson, you will be able to: • Explain the process of requirements planning with MRP areas • Explain how the storage location MRP areas function and make the relevant settings Business Example For materials not procured from external vendors but procured internally in IDES Ltd. by stock transfer, you need to decide whether you want to use the simple option of separate storage location MRP or MRP areas. You are responsible for defining the corresponding MRP areas in Customizing and entering the data in the material master records. Planning Levels Requirements planning essentially takes place at plant level. In other words, the entire stock available to the plant is accounted for during planning. As well as separate storage location MRP, it is also possible to execute requirements planning specifically for designated MRP areas. 226 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: MRP Areas Figure 66: Planning Levels An MRP area is an independent planning organizational unit for which you can execute independent requirements planning and forecasting. Planning with MRP areas enables differentiated requirements planning in the SAP system. A MRP area can therefore consist of one or more storage locations for a plant or an individual subcontractor. MRP areas can only be specified within a plant. Material Requirements Planning Without MRP Areas Without MRP areas, the requirements planning takes place at plant level. This means that all material requirements (dependent requirements, planned independent requirements, customer requirements and so on) for all storage locations that are not planned separately or excluded from MRP, are incorporated into requirements planning together at plant level. Depending on the procurement type for a material, the system triggers either in-house production or external procurement to cover requirements. 2009 © 2009 SAP AG. All rights reserved. 227
    • Unit 4: Additional Options in Consumption-Based Planning SCM525 Figure 67: Requirements Planning Without MRP Areas Settings defined in the MRP material master are valid for the entire plant (excluding storage locations planned separately or excluded from MRP). Material Requirements Planning with MRP Areas Using MRP areas enables greater differentiation in MRP. Planning takes place separately for each MRP area. By determining MRP areas, you can execute requirements planning for these areas more specifically. This enables better-timed material staging in appropriate quantities for the various areas such as a particular product line, storage location for spare parts or subcontractor stock. Figure 68: Planning with MRP Areas 228 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: MRP Areas In storage location MRP areas, one or several storage locations are grouped together into one organizational unit. This unit is planned separately to other plant and MRP areas. You can assign a receipt (procurement) or issue element (requirement) to a storage location area using the storage location. You can only assign one storage location to one MRP area. You can also use an MRP area to plan the provision of components for individual subcontractors separately. An MRP area is also defined for a subcontractor (supplier) and the corresponding components to be provided are assigned to this MRP area. In each MRP area, separate evaluation of planning results takes place with its own MRP lists or stock/requirements lists. In the collective display, materials can be selected both specifically for one MRP area and for all MRP areas of a plant. Hint: As of ERP 6.0, you can activate the Cross-Plant View for the stock/requirements list (MD04) using the business function LOG_PP_LMAN. This view displays the MRP elements for all plants and MRP areas. You activate the cross-plant view in Customizing for Production under Material Requirements Planning → Evaluation → Display Material Groupings. You can carry out requirements planning for MRP areas with all MRP procedures and lot-sizing procedures. For each MRP area, you can assign various MRP parameters to a material, enabling requirements planning to be tailored specifically to the needs of the individual MRP areas. You can also execute an independent material forecast with separate parameters for MRP areas. Material consumption is updated separately in each MRP area. The planning run takes planning with MRP areas into account as follows: • In the overall planning run, the entire plant, in other words, all the MRP areas in the plant, is planned if you do not specify a separate scope of planning. If you only want to execute an overall planning run for a particular MRP area, you must specify the required MRP area in the scope of planning. • For single-item multi-level planning, the selected material is planned in the specified MRP area. Planning file entries from other MRP areas are also taken into account, for example, if the material is to be procured by stock transfer. • For single-item single-level planning, the selected material is only planned in the specified MRP area. 2009 © 2009 SAP AG. All rights reserved. 229
    • Unit 4: Additional Options in Consumption-Based Planning SCM525 Figure 69: MRP Area Types Basically, there are three types of MRP areas: • Plant MRP area (type 01) • MRP areas for storage locations (type 02) • MRP areas for subcontractors (type 03). The plant MRP area includes the plant with all storage locations and subcontracting stocks. Once you have defined the MRP area for storage locations and subcontractors and assigned the materials, these storage locations and subcontractors are deducted from the plant MRP area, as these are now planned separately. You can define an MRP area to consist of a particular storage location by creating an MRP area then assigning the storage location. This storage location is then planned separately from the rest of the plant in requirements planning. You can also include several storage locations with one MRP area by creating an MRP area then assigning these storage locations. These storage locations are then planned together. Hint: A plant storage location can only be assigned to one MRP area. You can also define one MRP area for each subcontractor. Hint: A subcontractor can only be assigned to one MRP area. A subcontractor type MRP area can only include one subcontractor. 230 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: MRP Areas Figure 70: Preparing Planning with MRP Areas When introducing requirements planning with MRP areas, the existing planning file entries at plant level must first be converted to planning file entries at MRP area level. You convert these planning file entries in Customizing for Production under Material Requirements Planning → Planning File Entries → Convert Planning File Entries for MRP Areas. Note: In this work step, you use report RMDBVM00 to convert the existing planning file entries at plant level into planning file entries at MRP area level. With the conversion report, the system creates a new planning file. The system also creates MRP areas for the existing plants. However, these MRP areas do not afffect the execution of requirements planning. The number of the plant MRP areas is identical to the plant number (four digits). Hint: You cannot create plant MRP areas manually. The plant MRP areas are automatically created with the conversion report. After converting the planning file, you need to activate requirements planning for MRP areas in Customizing for Materials Management under Consumption-Based Planning → Master Data → MRP Areas → Activate MRP for MRP Areas. In the next step, you can create MRP areas in Customizing for Materials Management under Consumption-Based Planning → Master Data → MRP Areas → Define MRP Areas. First, define the MRP area including type and plant assignment. In storage location MRP areas, you are then asked to define 2009 © 2009 SAP AG. All rights reserved. 231
    • Unit 4: Additional Options in Consumption-Based Planning SCM525 a receiving storage location. To complete the process of defining the storage location MRP area, you need to assign one or more storage locations and, when defining subcontractor MRP areas, assign no more than one subcontractor. Note: The number of an MRP area must consist of a minimum of five digits to avoid overlaps with the plant MRP area. If you would like to plan for materials in areas other than the plant MRP area, you must create your own MRP area segments for each MRP area in the material master record in MRP 1 view. You can determine MRP parameters in the MRP segment such as the lot size or MRP type, enabling the material in the MRP area to be planned differently to how it would be in the plant MRP area. Note: If you do not create MRP area data for a material, the material will then be planned in the plant MRP area only. If MRP area data already exists, it can be planned both in the plant MRP area and in the MRP area. Figure 71: MRP Area Segment in the Material Master One material may have any number of MRP area segments. For each MRP area, you can assign various MRP parameters to a material, enabling requirements planning to be tailored specifically to the needs of the individual MRP areas. You can also execute an independent material forecast with separate parameters for MRP areas. The historical values are also updated separately for each MRP area. This forecast cannot be made interactively however and only inidividual or overall forecasts may be made. 232 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: MRP Areas You can delete MRP segment areas again afterwards. To do this, call the MRP 1 view in the material master record and branch to the MRP segments area. In the Overview: MRP Areas dialog you can set the Flag for Deletion indicator for the MRP area segment to be deleted. Any dependent requirements or reservations planned in this MRP area will then be transferred to the plant MRP area. Hint: With the report RMMDDIBE you can create, change, or delete material master records for MRP areas in a mass processing job. You can display an overview of all materials for an MRP area. To do this, go to Customizing for Materials Management and choose Consumption-Based Planning → Master Data → MRP Areas → Define MRP Areas. Double-click to call an MRP area, and choose Material Overview for MRP Area. Figure 72: Assignment to a Storage Location Area Receipt elements (planned orders, purchase requisitions) are assigned to the receiving storage location determined by the system during the planning run. The receiving storage location displays in the MRP list or the current stock/requirements list in the storage location or procurement element columns. The system checks whether the receiving storage location determined belongs to the MRP area. If it does, the receipt element is assigned to the MRP area. Issue elements (planned primary requirements, sales orders, secondary requirements, reservations) are assigned to the issuing storage location determined by the system during the planning run. The issuing storage location displays in the MRP list or the current stock/requirements list, in the storage location column, or in the component list of the planned order. If the storage location allows the 2009 © 2009 SAP AG. All rights reserved. 233
    • Unit 4: Additional Options in Consumption-Based Planning SCM525 assignment of the material to a MRP area of this material, the requirement is planned in this MRP area. If you cannot make an assignment, planning takes place in the plant MRP area. Figure 73: Enhancement for Special Procurement Types Materials planned in a MRP area can be procured using the special procurement type Stock transfer from plant to MRP area. To transfer stock from the plant to the MRP area, you need to have created the MRP area segment in the material master and assigned the corresponding special procurement key Stock transfer from plant to MRP area. Hint: In the standard system, the special procurement key 45 is available for transferring stock from the plant to the MRP area. During requirements planning, the system creates a stock transfer reservation for the material in the MRP area, and a material reservation in the plant MRP area. The external procurement storage location that you entered in the MRP area segment of the material master is used as the receiving storage location. If you have not defined this, the receiving storage location that you entered in Customizing for the MRP area is used. The actual procurement takes place with the plant. During stock transfer to the MRP area, you execute a stock transfer of the material with reference to the reservation. Hint: Stock transfers between MRP areas are not supported as standard. 234 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: MRP Areas Exercise 13: Setting Up a MRP Area Exercise Objectives After completing this exercise, you will be able to: • Check Customizing for MRP areas • Prepare a material for planning in a MRP area Business Example Material T-M525A## should be planned separately in storage locations LO## and L1##. Set the MRP using the corresponding MRP area. Task 1: Check the Customizing settings: You intend to plan the material T-M525A## in the storage location MRP area LO##P1000 in plant 1000. Check the characteristics of the MRP area. Display the MRP area LO##P1000 in Customizing. 1. What MRP area type is involved? __________________________ 2. What is the receiving storage location? __________________ 3. What storage locations are assigned to this MRP area? __________________________ Task 2: You want to assign the material T-M525A## to the MRP area LO##P1000 by creating a corresponding MRP area segment in the material master. 1. With the Change Material transaction, call the MRP 1 view from the material master T-M525A##. Then check whether the MRP area exists indicator is set. __________ 2. Now assign the MRP area LO##P1000. Use the following settings: MRP type: VB Reorder point: 100 pieces MRP controller: 025 Lot size: FX Continued on next page 2009 © 2009 SAP AG. All rights reserved. 235
    • Unit 4: Additional Options in Consumption-Based Planning SCM525 Fixed lot size: 300 pieces Special procurement: 45 Adopt the entries to return to the MRP1 view in the material master. 3. Is the MRP area exists indicator now set? ________________________ Task 3: Execute material requirements planning in MRP area LO##P1000: By specifying the special procurement key 45 in the MRP area segment, you have determined that stock will be transferred from the plant for this MRP area. 1. Now execute single-level requirements planning for material T-M525A## in MRP area LO##P1000, plant 1000, and evaluate the result: 2. Display the current stock/requirements list for this MRP area. What is the result of MRP for this material? ___________________________________________________ ___________________________________________________ 3. Now display the current stock/requirements list in the plant MRP area. What new MRP element was created? ____________________________________________________ Task 4: Optional: Set up an MRP area for subcontractors 1. In future, you want to plan the requirements for subcontractor T-K500C## in plant 1000 separately. Set up a separate MRP area for this subcontractor. Name the new MRP area ZDB##. 236 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: MRP Areas Solution 13: Setting Up a MRP Area Task 1: Check the Customizing settings: You intend to plan the material T-M525A## in the storage location MRP area LO##P1000 in plant 1000. Check the characteristics of the MRP area. Display the MRP area LO##P1000 in Customizing. 1. What MRP area type is involved? __________________________ a) You can display an MRP area in Customizing for Materials Management under Consumption-Based Planning → Master Data → MRP Areas → Define MRP Areas. b) Choose Position... to search for the entry for MRP area LO##P1000. Enter LO##P1000 and choose Enter. In the overview, double-click on the MRP area LO##P1000.. c) A type 02 MRP area is involved , in other words, a storage location MRP area. 2. What is the receiving storage location? __________________ a) The receiving storage location is L0##. 3. What storage locations are assigned to this MRP area? __________________________ a) Double-click in the dialog structure on Assign storage locations to display the storage locations assigned to the MRP area. b) Storage locations L0## and L1## are assigned to the MRP area. Task 2: You want to assign the material T-M525A## to the MRP area LO##P1000 by creating a corresponding MRP area segment in the material master. 1. With the Change Material transaction, call the MRP 1 view from the material master T-M525A##. Then check whether the MRP area exists indicator is set. Continued on next page 2009 © 2009 SAP AG. All rights reserved. 237
    • Unit 4: Additional Options in Consumption-Based Planning SCM525 __________ a) To change the material master record, go to the SAP Easy Access menu and choose: Logistics → Materials Management → Material Master → Material → Change → Immediately (MM02). b) Enter the material number and choose Enter. In the Select Views dialog box, select the MRP 1 view and choose Enter. Enter plant 1000 and choose Enter. c) The MRP area exists indicator is not set. This means that a MRP segment has not yet been defined for this material. 2. Now assign the MRP area LO##P1000. Use the following settings: MRP type: VB Reorder point: 100 pieces MRP controller: 025 Lot size: FX Fixed lot size: 300 pieces Special procurement: 45 Adopt the entries to return to the MRP1 view in the material master. a) Choose MRP Areas and enter the MRP area LO##P1000 in the Overview: MRP Areas dialog. b) Choose Check and maintain the corresponding data in the Create MRP Area dialog box. Enter MRP type VB, reorder point 100, MRP controller 025, lot size FX and fixed lot size 300. Define the special procurement type (45) on the MRP 2 view. Double-click on Adopt to copy the data for the MRP area segment in the material master record. Save the material master record by choosing Save. 3. Is the MRP area exists indicator now set? Continued on next page 238 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: MRP Areas ________________________ a) Display the material master record. To display the material master record, go to the SAP Easy Access menu and choose: Logistics → Materials Management → Material Master → Material → Display → Display Current (MM03). b) The MRP area exists indicator is now set in the MRP 1 view because an MRP area segment was created. Task 3: Execute material requirements planning in MRP area LO##P1000: By specifying the special procurement key 45 in the MRP area segment, you have determined that stock will be transferred from the plant for this MRP area. 1. Now execute single-level requirements planning for material T-M525A## in MRP area LO##P1000, plant 1000, and evaluate the result: a) To execute single-item , single-level planning, go to the SAP Easy Access menu and choose Logistics → Materials Management → Material Requirements Planning (MRP) → MRP → Planning → Single-Item, Single-Level (MD03). b) Enter material number T-M525A## and MRP area LO##P1000 and choose Enter. Copy the proposed control parameters in the system. Confirm the information message and choose Enter. 2. Display the current stock/requirements list for this MRP area. What is the result of MRP for this material? ___________________________________________________ ___________________________________________________ a) To display the current stock/requirements list, go to the SAP Easy Access menu and choose: Logistics → Materials Management → Material Requirements Planning (MRP) → MRP → Evaluations → Stock/Reqmts List (MD04). b) Enter material number T-M525A## and MRP area LO##P1000 and choose Continue (Enter). c) A stock transfer reservation has been set so the material is transferred from the plant into this MRP area. 3. Now display the current stock/requirements list in the plant MRP area. What new MRP element was created? Continued on next page 2009 © 2009 SAP AG. All rights reserved. 239
    • Unit 4: Additional Options in Consumption-Based Planning SCM525 ____________________________________________________ a) You can change the MRP area directly in the current stock/requirements list. Select plant MRP area 1000 in the list header in the MRP Area field. Confirm your entry and choose Enter. b) A material reservation that the material reserves for the stock transfer in the MRP area appears in the plant. Task 4: Optional: Set up an MRP area for subcontractors 1. In future, you want to plan the requirements for subcontractor T-K500C## in plant 1000 separately. Set up a separate MRP area for this subcontractor. Name the new MRP area ZDB##. a) You set up the MRP area in Customizing for Materials Management under Consumption-Based Planning → Master Data → MRP Areas → Define MRP Areas. b) Choose New Entries. Enter ZDB## as the new MRP area with the description Vendor T-K500C##. Choose MRP area type 03 (vendor) and enter 1000 for the plant. c) In the navigation structure, double-click on Subcontractor. Choose New Entries and enter subcontractor T-K500C##. Save the new MRP area by choosing Save. Hint: If you want to test the new MRP area, create material master data for this MRP area. Use the materials R-T1## and R-T2##. Make the same setting as described in task 2. Then create a purchase order for vendor T-K500C##. Order 100 pieces of the material R-B1## for plant 100 with item category L (subcontracting) and enter a price of your choice. Then check the current stock/requirements list for the materials R-T1## and R-T2## in MRP area ZDB## and execute a single-item planning run for these materials. 240 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Lesson: MRP Areas Lesson Summary You should now be able to: • Explain the process of requirements planning with MRP areas • Explain how the storage location MRP areas function and make the relevant settings 2009 © 2009 SAP AG. All rights reserved. 241
    • Unit Summary SCM525 Unit Summary You should now be able to: • Explain the factors responsible for procurement proposal • Name the master data for source determination • Set the automatic source determination for MRP • Describe the storage location MRP procedure • Explain the different options of separate storage location MRP • Explain the process of requirements planning with MRP areas • Explain how the storage location MRP areas function and make the relevant settings 242 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Test Your Knowledge Test Your Knowledge 1. Name the possible sources of supply for an externally procured material in the SAP system. 2. Which options for automatic source determination in MRP does the SAP system offer? 3. What are the advantages of a purchase requisition with an assigned source of supply in comparison to a purchase requisition without an assigned source of supply? 4. Name the advantages of automatically creating scheduling agreement schedule lines with MRP during the planning run. 5. You determine the type of procurement for a separately planned storage location with the special procurement key in the material master record on the MRP 4 view in the Storage location MRP area. Determine whether this statement is true or false. □ True □ False 2009 © 2009 SAP AG. All rights reserved. 243
    • Test Your Knowledge SCM525 6. What are the possible types of MRP area in the SAP system? Choose the correct answer(s). □ A MRP areas for company codes □ B Plant MRP areas □ C MRP areas for subcontractors □ D MRP areas for purchasing organizations □ E Storage location MRP areas □ F Client MRP areas 7. Which preparatory measures must be made in the system for planning with MRP areas? 244 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Test Your Knowledge Answers 1. Name the possible sources of supply for an externally procured material in the SAP system. Answer: A source of supply is a source that represents a procurement possibility for a material. In external procurement, the sources of supply include the purchasing information record (info record), contract and scheduling agreement. 2. Which options for automatic source determination in MRP does the SAP system offer? Answer: The source list and quota arrangement can be used for automatic source determination in MRP in the SAP system. With a source list, you can determine which sources of supply are valid or not valid for a material in a plant within a particular timeframe. The MRP indicator in the source list enables you to determine whether a source of supply defined in the source list record should be considered in MRP, and therefore assigned directly to the procurement element during the planning run. If a material is to be procured from several different sources of supply, you can use a quota arrangement. This enables you to have one quota for various sources of supply. This quota is valid for a particular period of time and specifies how deliveries are to be divided up for the various sources of supply. 3. What are the advantages of a purchase requisition with an assigned source of supply in comparison to a purchase requisition without an assigned source of supply? Answer: Purchase requisitions without sources of supply must be converted manually into purchase orders in Purchasing using an optimization function. The SAP system can automatically convert purchase requisitions into purchase orders if the requisitions already have a source of supply assigned to them. 2009 © 2009 SAP AG. All rights reserved. 245
    • Test Your Knowledge SCM525 4. Name the advantages of automatically creating scheduling agreement schedule lines with MRP during the planning run. Answer: • Using scheduling agreements enables you to have shorter processing times and fewer paper transactions in your company, as scheduling agreement schedules line can replace a multitude of purchase orders or contract release orders. • You only need to maintain low warehouse stocks as, by entering the exact delivery time-spot, you can have just-in-time deliveries (JIT). 5. You determine the type of procurement for a separately planned storage location with the special procurement key in the material master record on the MRP 4 view in the Storage location MRP area. Answer: True You can plan storage locations separately, in other words, plan storage location requirements independent of plant stock. If a storage location is to be planned separately, for the corresponding storage location in the material master record in the MRP 4view, define the MRP indicator 2 (Storage location stock planned separately). You also have to define a reorder point and a replenishment quantity. For separately planned storage locations, procurement can take place in many ways (external procurement, stock transfer from own plant, stock transfer from another plant). You determine the type of procurement for a separately planned storage location with the special procurement key in the material master record on the MRP 4 view in the Storage location MRP area. 6. What are the possible types of MRP area in the SAP system? Answer: B, C, E In the SAP system, there are three different types of MRP areas: • Plant MRP areas • MRP areas for storage locations • MRP areas for subcontractors. 246 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Test Your Knowledge 7. Which preparatory measures must be made in the system for planning with MRP areas? Answer: The following preparations are necessary for planning with MRP areas in the SAP system: 1. Convert the planning file 2. Activation of requirements planning for MRP areas 3. Define the MRP areas 4. Creation of MRP area segments in the material master records 5. Checking of storage locations in the corresponding master data. 2009 © 2009 SAP AG. All rights reserved. 247
    • Test Your Knowledge SCM525 248 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Course Summary Course Summary You should now be able to: • Name the prerequisites for the overall process of requirements planning and make the necessary system settings • Name and use the different consumption-based planning procedures • Execute material requirements planning and evaluate the results • Name the different forecasting techniques and execute the forecasts • Outline the effects of forecasting on the various consumption-based planning procedures • Describe and use source determination in consumption-based planning. 2009 © 2009 SAP AG. All rights reserved. 249
    • Course Summary SCM525 250 © 2009 SAP AG. All rights reserved. 2009
    • Appendix 1 List of Menu Paths Used Menu paths in the application: Create a material master record (MM01) Logistics → Materials Management → Material Master → Material → Create (General) → Immediately Change a material master record (MM02) Logistics → Materials Management → Material Master → Material → Change → Immediately Display a material master record (MM03) Logistics → Materials Management → Material Master → Material → Display → Display Current Create a MRP profile (MMD1) Logistics → Materials Management → Material Master → Profile → MRP Profile → Create Change a MRP profile (MMD2) Logistics → Materials Management → Material Master → Profile → MRP Profile → Change Display a MRP profile (MMD3) Logistics → Materials Management → Material Master → Profile → MRP Profile → Display Usage of MRP profile (MMD7) Logistics → Materials Management → Material Master → Profile → MRP Profile → Usage Delete a MRP profile (MMD6) 2009 © 2009 SAP AG. All rights reserved. 251
    • Appendix 1: List of Menu Paths Used SCM525 Logistics → Materials Management → Material Master → Profile → MRP Profile → Delete Execute total planning online (MD01) Logistics → Materials Management → Material Requirements Planning (MRP) → MRP → Planning → Total Planning → Online Total planning in background processing (MDBT) Logistics → Materials Management → Material Requirements Planning (MRP) → MRP → Planning → Total Planning → As Background Job Execute single-level, single-item planning (MD03) Logistics → Materials Management → Material Requirements Planning (MRP) → MRP → Planning → Single-Item, Single-Level Display MRP list (MD05) Logistics → Materials Management → Material Requirements Planning (MRP) → MRP → Evaluations → MRP List - Material Call a MRP list, collective display (MD06) Logistics → Materials Management → Material Requirements Planning (MRP) → MRP → Evaluations → MRP List - Coll. Displ. Print MRP list (MDLD) Logistics → Materials Management → Material Requirements Planning (MRP) → MRP → Evaluations → Print of MRP List Display current stock/requirements list (MD04) Logistics → Materials Management → Material Requirements Planning (MRP) → MRP → Evaluations → Stock/Reqmts List Call current stock/requirements list, collective display (MD07) Logistics → Materials Management → Material Requirements Planning (MRP) → MRP → Evaluations → Stock/Requirements: - Collective Display Create a planned order (MD11) Logistics → Materials Management → Material Requirements Planning (MRP) → MRP → Planned Order → Create Change a planned order (MD12) Logistics → Materials Management → Material Requirements Planning (MRP) → MRP → Planned Order → Change Display planned order - individual display (MD13) Logistics → Materials Management → Material Requirements Planning (MRP) → MRP → Planned Order → Display → Individual Display 252 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Appendix 1: List of Menu Paths Used Display planned order - collective display (MD16) Logistics → Materials Management → Material Requirements Planning (MRP) → MRP → Planned Order → Display → Collective Display Convert planned order into purchase requisition - individual conversion (MD14) Logistics → Materials Management → Material Requirements Planning → MRP → Planned Order → Convert to Pur. Req. → Individual Conversion Convert planned order into purchase requisition - collective conversion (MD15) Logistics → Materials Management → Material Requirements Planning → MRP → Planned Order → Convert to Pur. Req. → Collective Conversion Create a planning file entry (MD20) Logistics → Materials Management → Material Requirements Planning (MRP) → MRP → Planning → Planning File Entry → Create Display planning file entry (MD21) Logistics → Materials Management → Material Requirements Planning (MRP) → MRP → Planning → Planning File Entry → Display Set up planning file (MDAB) Logistics → Materials Management → Material Requirements Planning (MRP) → MRP → Planning → Planning File Entry → Set Up in Background Consistency check for planning file (MDRE) Logistics → Materials Management → Material Requirements Planning (MRP) → MRP → Planning → Planning File Entry → Consistency Check Maintain source list (ME01) Logistics → Materials Management → Purchasing → Master Data → Source List → Maintain Display source list (ME04) Logistics → Materials Management → Purchasing → Master Data → Source List → Display Maintain quota arrangement (MEQ1) Logistics → Materials Management → Purchasing → Master Data → Quota Arrangement → Maintain Display quota arrangement (MEQ3) Logistics → Materials Management → Purchasing → Master Data → Quota Arrangement → Display 2009 © 2009 SAP AG. All rights reserved. 253
    • Appendix 1: List of Menu Paths Used SCM525 Menu paths in Customizing (SPRO): To access Customizing, choose Tools → Customizing → IMG → Edit Project. Choose SAP Reference IMG to access the Implementation Guide (IMG). Create a splitting indicator (OMDG) Materials Management → Consumption-Based Planning → Forecast → Define Splitting of Forecast Requirements for MRP Define and group exception messages (OMD3) Materials Management → Consumption-Based Planning → Evaluation → Exception Messages → Define and Group Exception Messages Exception messages: Check the texts of the exception groups (OM0L) Materials Management → Consumption-Based Planning → Evaluation → Exception Messages → Check Exception Group Texts Activate material requirements planning per plant (OMDU) Materials Management → Consumption-Based Planning → Planning → Activate Material Requirements Planning Activate material requirements planning for MRP areas (OM01) Materials Management → Consumption-Based Planning → Master Data → MRP Areas → Activate MRP for MRP Areas Define screen sequence for header details (OMIO) Materials Management → Consumption-Based Planning → Evaluation → Define Screen Sequence for Header Details Define MRP areas (OMIZ) Materials Management → Consumption-Based Planning → Master Data → MRP Areas → Define MRP Areas Maintain MRP groups (OPPZ) Materials Management → Consumption-Based Planning → MRP Groups → Carry Out Overall Maintenance of MRP Groups Define MRP group for each material type (OMIG) Materials Management → Consumption-Based Planning → MRP Groups → Define MRP Group for Each Material Type Define MRP types (OMDQ) Materials Management → Consumption-Based Planning → Master Data → Check MRP Types Filter: Define selection rules (OM0I) 254 © 2009 SAP AG. All rights reserved. 2009
    • SCM525 Appendix 1: List of Menu Paths Used Materials Management → Consumption-Based Planning → Evaluation → Filter → Define Selection Rules Filter: Define display filter (OM0J) Materials Management → Consumption-Based Planning → Evaluation → Filter → Define Display Filter Maintain all plant parameters (OMI8) Materials Management → Consumption-Based Planning → Plant Parameters → Carry Out Overall Maintenance of Plant Parameters Define storage location MRP per plant (OMIR) Materials Management → Consumption-Based Planning → Planning → Define Storage Location MRP per Plant Define lot-sizing procedure (OMI4) Materials Management → Consumption-Based Planning → Planning → Lot-Size Calculation → Define Lot-Sizing Procedure Define navigation profiles (OM0K) Materials Management → Consumption-Based Planning → Evaluation → Define Navigation Profiles Period totals: Define individual period split for period totals (OMDA) Materials Management → Consumption-Based Planning → Evaluation → Period Totals → Define Individual Period Split for Period Totals Period totals: Define period display for period totals (OPPC) Materials Management → Consumption-Based Planning → Evaluation → Period Totals → Define Period Display for Period Totals Assign forecast errors to error classes (OMDK) Materials Management → Consumption-Based Planning → Forecast → Assign Forecast Errors to Error Classes Create a rounding profile (OWD1) Materials Management → Consumption-Based Planning → Planning → Lot-Size Calculation → Maintain Rounding Profile Define receipt elements for receipt days' supply (OMIL) Materials Management → Consumption-Based Planning → Evaluation → Define Receipt Elements for Receipt Days' Supply 2009 © 2009 SAP AG. All rights reserved. 255
    • Appendix 1: List of Menu Paths Used SCM525 256 © 2009 SAP AG. All rights reserved. 2009
    • Index A Allocation quota arrangement, 203 B Backward scheduling, 155 C Current stock/requirements list, 88 current stock/requirements list collective access, 91 Current stock/requirements list individual access, 89 D Days' supply, 97 E Error total, 144 evaluation profile, 92 Ex-post forecast, 139 Exception messages, 95 Exponential smoothing, 140 F Filter, 89 Fixed lot size Fixed lot size, 110 Forecast, 131 Forecast indicator, 14 Forecast model, 133 Forward scheduling, 35 G Goods receipt processing time, 35 I Individual forecast, 133, 141 L Lot-for-lot order quantity, 110 Lot-size calculation, 58, 108 Lot-sizing procedures, 109 Low-level code, 59 M material status, 20 Material tree, 93 Maximum lot size, 114 Mean absolute deviation, 144 Minimum lot size, 114 Model initialization, 138 Model selection, 134 MRP group, 67 MRP list, 77, 88 MRP list collective display, 92 MRP list individual access, 89 MRP procedures, 9 MRP profile, 17 MRP type, 14 N Navigation profile, 94 Net requirements calculation, 34, 58, 154 P Parameter optimization, 139–140 Period totals, 90, 96 periodic lot-sizing, 111 Planned delivery time, 35 Planned order, 77 Planning file entry Planning file, 56 Planning horizon, 63 Planning mode, 66 Planning run types, 61 2009 © 2009 SAP AG. All rights reserved. 257
    • Index SCM525 Planning scope, 54 Plant MRP area, 230 Plant parameters, 66 Procurement type, 58 Purchasing department processing time, 35 Q Quota arrangement, 201 R Reorder point, 33, 179 Replenish to maximum stock level, 110 Rounding profile, 112 Rounding value, 112 S Safety stock, 33, 179 Scheduling, 58 Scheduling agreement schedule lines, 203 Service level, 179 Single-item planning, 55 Source list, 200 Source of supply, 199 Splitting indicator, 154 Splitting quota arrangement, 203 static lot-sizing procedure, 110 Storage location MRP area, 230 Subcontracting MRP area, 230 T Total forecast, 133, 141 Total planning, 54 Tracking signal, 144 258 © 2009 SAP AG. All rights reserved. 2009
    • Feedback SAP AG has made every effort in the preparation of this course to ensure the accuracy and completeness of the materials. If you have any corrections or suggestions for improvement, please record them in the appropriate place in the course evaluation. 2009 © 2009 SAP AG. All rights reserved. 259