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Er ptips material requirements-planning
Er ptips material requirements-planning
Er ptips material requirements-planning
Er ptips material requirements-planning
Er ptips material requirements-planning
Er ptips material requirements-planning
Er ptips material requirements-planning
Er ptips material requirements-planning
Er ptips material requirements-planning
Er ptips material requirements-planning
Er ptips material requirements-planning
Er ptips material requirements-planning
Er ptips material requirements-planning
Er ptips material requirements-planning
Er ptips material requirements-planning
Er ptips material requirements-planning
Er ptips material requirements-planning
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Er ptips material requirements-planning

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  • 1. Materials Requirement Planning ECC 6.0 Rev. 03/05/10 1SAPtips Sample Material Requirements Planning MRP PlanningThis segment from our 390 page Material Requirements Planning (MRP)manual is being made available as a sample of our training manuals. Pleasecontact David.Haynes@ERPtips.com if you have any SAP training needs, orvisit www.ERPtips.com for more information.Written by Alexis DeStaffany ParkerPublished by Klee Associates, Inc.Copyright Klee Associates, Inc., 2010Unit 4: Materials Requirement PlanningThe goal of materials requirement planning is to produce an optimal supply ofmaterial for the customer demand. The customer demand might be for an actualcustomer or for an internal customer in the case of sub-assembly production orexternally procured materials. The following are the goals of materialsrequirement planning: Maximizing availability of materials for internal and external customers Minimizing warehouse stock Minimizing logistics costs for both procurement and productionIn order to achieve these goals materials requirement planning must balanceinventory with service of the customers. Materials requirement planning providesthe ability these goals in the following ways: Providing gross and net requirement calculations Providing bill of material explosion for all components Providing lot size determination to optimize purchasing and production Providing safety stock strategies for optimizing inventory levelsIn this unit, we will review the following: Materials Requirement Planning Calculation Materials Requirement Planning File Materials Requirement Planning Sequence Review Materials Requirement Planning MRP Types Materials Requirement Planning Processing Materials Requirement Planning Configuration Materials Requirement Planning Business Add-Ins
  • 2. Unit 4: Materials Requirement Planning Klee Associates, Inc.2 Rev. 03/05/10 Materials Requirement Planning ECC 6.0Materials Requirement Planning CalculationMaterials requirement planning calculation is performed during the run ofmaterials requirement planning. The system uses the settings in configuration,master data, demand and supply to determine where there are shortage andoverages to determine the most optimal plan based on the defined settings. Asreviewed in the overview, we discussed the process of calculating the supplyrequirements based on the demand elements. In the diagram below we see thedemand requirements and the supply requirements, in this section we will reviewall of these components, perform a demonstration of the calculation in materialsrequirement planning and perform and exercise in materials requirementplanning calculation.The following demand items are found in materials requirement planningcalculation: Sales Orders Sales Scheduling Agreements Dependent Requirements Reservations Planning Independent RequirementsThe following supply items are found in materials requirement planningcalculation: Planned Orders Purchase Requisitions Schedule Lines Purchase Orders Production Orders
  • 3. Klee Associates, Inc. Unit 4: Materials Requirement PlanningMaterials Requirement Planning ECC 6.0 Rev. 03/05/10 3 Inbound Deliveries StockDemonstration: Materials Requirement PlanningCalculationIn this demonstration, we will perform the following steps: Create a material master record Assign the lot size for monthly lots and enter a rounding value Create demand for the material Run single-item, single-level on the material Evaluate the results of materials requirement planningStep 1: Create Raw Material Master Record1. To create a raw procured material, perform one of the following: Enter transaction code MM01. Select the SAP menu path: Logistics  Materials Management Material Master  Material  Create (General)  Immediately2. Enter the Material Number, Industry Sector, Material Type, and Copy frommaterial, and press Enter.
  • 4. Unit 4: Materials Requirement Planning Klee Associates, Inc.4 Rev. 03/05/10 Materials Requirement Planning ECC 6.03. Highlight the views required for the material and lick the button.
  • 5. Klee Associates, Inc. Unit 4: Materials Requirement PlanningMaterials Requirement Planning ECC 6.0 Rev. 03/05/10 54. Enter the Plant and Storage Location for both the organizational levels, andCopy from, and click the button.Make sure to enter the copy from for plant and storage location, otherwise,the defaults from the copy from material will not copy over to the creation of thismaterial.5. Press Enter through all the views of the material master until the save screenis prompted as seen below.6. Click the button.Step 2: Assign the lot size for monthly lots and enter a roundingvalue1. To change a material using the stock requirements list for a material, performone of the following: Enter transaction code MD04.
  • 6. Unit 4: Materials Requirement Planning Klee Associates, Inc.6 Rev. 03/05/10 Materials Requirement Planning ECC 6.0 Select the SAP menu path: Logistics  Production  ProductionPlanning  MRP  Evaluations  Stock/Requirements List2. Enter the Material Number and Plant and press Enter.3. Select the menu path Environment  Change Material.4. Enter the Lot Size for Monthly lot size and the rounding value, and click thebutton to return back to the stock requirements list.
  • 7. Klee Associates, Inc. Unit 4: Materials Requirement PlanningMaterials Requirement Planning ECC 6.0 Rev. 03/05/10 7Step 3: Create Demand for Material1. To create demand for a material, perform one of the following: Enter transaction code MD64. Select the SAP menu path: Logistics  Production  ProductionPlanning  Demand Management  Planned IndependentRequirements  Create2. Enter the Material Number and Plant and the press Enter.3. Enter the demand for the next six months and click the button.Step 4: Run single-item, single-level on the material1. To run the MRP for a material, perform one of the following: Enter transaction code MD03. Select the SAP menu path: Logistics  Production  MRP  PlanningSingle-item, single-level
  • 8. Unit 4: Materials Requirement Planning Klee Associates, Inc.8 Rev. 03/05/10 Materials Requirement Planning ECC 6.02. Enter the Material and Plant and press Enter.3. This message is supplied to indicate that the input parameters need to beverified. Press Enter.Step 5: Evaluate the results of materials requirement planningTo review the results of the MRP run display the stock requirements list for amaterial, perform one of the following: Enter transaction code MD04. Select the SAP menu path: Logistics  Production  ProductionPlanning  MRP  Evaluations  Stock/Requirements List
  • 9. Klee Associates, Inc. Unit 4: Materials Requirement PlanningMaterials Requirement Planning ECC 6.0 Rev. 03/05/10 94. Enter the Material Number and Plant and press Enter.Here you can see that materials requirement planning used monthly lot size tocalculate the purchase requisitions in quantity rounding values at intervals of 100.Step 6: Change the rounding value, run single-item, single-level andreview the results.1. To change a material using the stock requirements list for a material, performfollowing (still in MD04):
  • 10. Unit 4: Materials Requirement Planning Klee Associates, Inc.10 Rev. 03/05/10 Materials Requirement Planning ECC 6.02. Enter the Material Number and Plant and press Enter.3. Select the menu path Environment  Change Material.4. Enter the new Rounding value and click the button to return back to thestock requirements list.5. Run single-item, single-level.6. Evaluate the results in the stock requirements list.The results of the calculation of the materials requirement planning used therounding value to generate the supply requirements to meet the demandrequirements.
  • 11. Klee Associates, Inc. Unit 4: Materials Requirement PlanningMaterials Requirement Planning ECC 6.0 Rev. 03/05/10 11Exercise: Materials Requirement Planning CalculationIn this exercise, you will perform the following steps: Create a material master record Assign the monthly lot size and rounding value Create demand for the material Run single-item, single-level on the material Evaluate the results of materials requirement planning1. Create a raw procured material master record.Field ValueMaterial A-100-E-XXX (XXX is number assignedby your instructor).Industry Sector Mechanical EngineeringMaterial Type Raw MaterialCopy From A-100-MViews  Basic Data Purchasing MRP General Plant Data / Storage Accounting CostingPlant 1000Storage Location 10002. Change the material master record.Field ValueMaterial A-100-E-XXX (XXX is number assignedby your instructor).Plant 1000Lot Size MonthlyRounding Value 10003. Create demand requirement for the raw material.
  • 12. Unit 4: Materials Requirement Planning Klee Associates, Inc.12 Rev. 03/05/10 Materials Requirement Planning ECC 6.0Field ValueMaterial A-100-E-XXX (XXX is number assignedby your instructor).Plant 1000Demand Enter demand for the next three monthsof 1500 pieces.4. Run Single-Item, Single-Level on the material.Field ValueMaterial A-100-E-XXX (XXX is number assignedby your instructor).Plant 10005. Review the stock requirements for the raw material in the stock requirementslist.Field ValueMaterial A-100-E-XXX (XXX is number assignedby your instructor).Plant 1000ProcurementProposalsDo you have an overage in stock afterthe requirements?
  • 13. Klee Associates, Inc. Unit 4: Materials Requirement PlanningMaterials Requirement Planning ECC 6.0 Rev. 03/05/10 13Material Requirements Planning FileThe material requirements planning file is used to determine which materials toplan and how to plan each material within the planning file. As previously seen,below is the flow of the planning file within materials requirement planning.The flags set in the planning file determine the status of the material for materialsrequirement planning. The following flags are set in the planning file: Record Type – defines if the material is an MRP material or a phantomassembly. Code – is the low level code used to determine the level of the materialduring bill of material explosion and thus determines the sequence ofplanning the material during materials requirement planning. Material – is the material number. MRP area – is the area in which the material is planned. MPS Indicator – defines the material to only be planned using masterproduction scheduling. Net Change Planning Indicator – determines when there is a change to amaterial so the material will be planned during a net change run of materialsrequirement planning. This flag is set if the a goods receipt occurs for thematerial, if a reservation, purchase order or production order exist and if thegoods movement takes place in a MRP storage location. Net Change Planning Indicator in the planning horizon – determines whenthere is a change to a material in the planning horizon so the material will be
  • 14. Unit 4: Materials Requirement Planning Klee Associates, Inc.14 Rev. 03/05/10 Materials Requirement Planning ECC 6.0planned during a net change planning horizon run of materials requirementplanning. This flag is set if the a goods receipt occurs for the material, if areservation, purchase order or production order exist and if the goodsmovement takes place in a MRP storage location. Reset Procurement Proposals – defines that a change has occurred to theprocurement elements to trigger materials requirement planning for theseelements. Re-explode BOM – controls that a bill of material has changed and the bill ofmaterial should be re-exploded during the next run of materials requirementplanning. Planning Date – is the next date to plan the material in time-phased planning.In this section, we will review the planning file entries and will review theconfiguration to activate the system to use the planning file and we will alsoreview the conversion program if MRP areas are turn on in an environment.Demonstration: Material Requirements Planning FileThe materials requirements planning file demonstration displays the planning fileentries to review the selections available and to review the flags in the planningfile.Planning File Entries1. To display the planning file entries, perform one of the following: Enter transaction code MD21. Select the SAP menu path: Logistics  Production  MRP  Planning Planning File Entry  Display.
  • 15. Klee Associates, Inc. Unit 4: Materials Requirement PlanningMaterials Requirement Planning ECC 6.0 Rev. 03/05/10 152. Enter the Plant, leave the defaults, and click the button.Configuration: Material Requirements Planning FileIn this configuration demonstration we will review the activation step for theplanning file, determine goods movements for the planning file and reviewoptions for the planning file when converting to MRP areas.
  • 16. Unit 4: Materials Requirement Planning Klee Associates, Inc.16 Rev. 03/05/10 Materials Requirement Planning ECC 6.0Activate MRP and Set Up Planning FileThis setting activates the planning file and activates materials requirementplanning.1. From the IMG, select the menu path: Production  Material RequirementsPlanning  Planning File Entries  Activate MRP and Set Up Planning FileDefine Planning File entries for goods movementsThis setting allows you to always set a planning file entry for any goodsmovement or set over and under delivery tolerances for setting goodsmovements to flag the planning file.1. From the IMG, select the menu path: Production  Material RequirementsPlanning  Planning File Entries  Define Planning File entries for goodsmovementsConvert Planning File entries for MRP areasThis program allows you to convert existing planning file entries with MRP areas.There is a test option and a conversion option.1. From the IMG, select the menu path: Production  Material RequirementsPlanning  Planning File Entries  Convert Planning File entries for MRP areas
  • 17. Klee Associates, Inc. Unit 4: Materials Requirement PlanningMaterials Requirement Planning ECC 6.0 Rev. 03/05/10 17Legal Speak:Purchase of this book or acquisition at an ERPtips class, constitutes an impliedagreement by the purchaser to a limited, license granted to the purchaser byKlee Associates, Inc., specifically for purposes limited to improving your personalknowledge of SAP software which does not in any way compete with KleeAssociates.This manual is protected by copyright law, and is sold or is part of an ERPtipsclass with the following conditions:The manual will be used for your personal professional development.The manual will not be physically copied for distribution to other individuals orconverted to an electronic copy for distribution to other individuals, unlesscopyright permissions for copying have been acquired from Klee Associates,Inc.The manual will not be used to conduct training classes by you or otherindividuals, without the written permission of Klee Associates, Inc.Inclusion of the concepts in this book in any internal client training material isallowed if the source of the concepts is acknowledged as follows:Copyright 2010All rights reserved.Used with permission.Klee Associates, Inc.NO WARRANTY: This documentation is delivered as is, and Klee Associatesmakes no warranty as to its accuracy or use. Any use of this documentation is atthe risk of the user. Although we make every good faith effort to ensureaccuracy, this document may include technical or other inaccuracies ortypographical errors. Klee Associates reserves the right to make changeswithout prior notice.ERPtips is a valued resource for thousands of clients and consultants worldwide.Visit our web site for more information about upcoming training, books, andnewsletters.www.ERPtips.comERPtips is a registered trademark of Klee Associates, Inc.No Affiliation: Klee Associates, Inc. and this publication are not affiliated with orendorsed by SAP AG. SAP AG software referred to on this site is furnishedunder license agreements between SAP AG and its customers and can be usedonly within the terms of such agreements. SAP AG is a registered trademark ofSAP AG. All other product names used herein are trademarks or registeredtrademarks of their respective owners.

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