2. Course Objectives
Understand the principles of Demand Management (DM)
Define the Materials Requirements Planning (MRP)
process
Describe how to valuate MRP planning runs
Perform DM and MRP transactions
3. Module 1: Master Data
Module 2: Demand Management
Module 3: Material Requirements Planning
Module 4: MRP Planning Runs
Course Map
Module 5: Summary
Table of contents
4. PP flow & Integration
Sales & Ops
Planning
MRP
Capacity Req.
Planning
Long Term
Capacity
Planning
Demand
Management
Production
Execution
CO
(Cost
Control)
MM – LE
(Stock
Control)
QM
(Quality
Control)
FI /CO MM
5. Master Data Related Transactions
Practice the following transactions
MM03 – Display Material Master
CS03 – Display BOM
CR03 – Display Work Center
CA23 – Display Rate routing
MM03 – Display Production Version
6. Module 1: Master Data
Module 2: Demand Management
Module 3: Material requirements Planning
Module 4: MRP Planning Runs
Course Map
Module 5: Summary
Table of contents
7. What is Demand Management?
Demand Management is used to determine requirement
quantities and delivery dates for finished products
Demand Management provides a demand program which
is used by MRP to generate production plans
Depending on the planning strategy chosen in the material
master, the demand program can use forecasts of demand,
actual demand, or combinations of both
Actual demand is created in sales order management
(customer orders) and materials management (warehouse
replenishment)
Forecasts of demand are represented by ‘planned
independent requirements’ which are copied from the Sales
and Operations Plan
8. What is the DM Process (1)?
SOP plans are transferred to Demand Management as
‘Independent Requirements’ for end products
The actual sales orders are for information purpose only
and are not considered in planning.
In case the sales orders significantly vary from the
forecasted demand; Planners revise the demand before
running MRP to generate manufacturing orders and
purchase requisitions
9. Who is Responsible for DM?
Planner (DEM)
Responsible for managing the demand by comparing the actual
demand with the forecast and manipulate the plan based on the
actual demand before executing MRP
10. DM Related Transactions
Practice the following Transactions
MM03 – Display Strategy
MD63 - Display Independent Requirements
MD04 - Display Stock Requirements List
MD74 – Reorganise Independent Requirements
11. Module 1: Master Data
Module 2: Demand Management
Module 3: Material Requirements Planning
Module 4: MRP Planning Runs
Course Map
Module 5: Summary
Table of contents
12. Materials Requirements Planning
MRP compares the requirements for end products, from
Demand Management, with the current stocks and creates
planned manufacturing orders
Manual
Manual
entry
entry
SOP
SOP
Sales
Sales Plan
Plan
SOP
SOP
Production
Production
Plan
Plan
Material
Material
Forecast
Forecast
Copy
Copy
another
another
plan
plan
Demand
Program
MRP
Planning levels:
l Material
l Product group
l Versions
Planning options:
l Horizon
l Period splits
l History
13. MRP stands for: Materials Requirements Planning.
The function of MRP is to provide material availability, that
is, it is used to procure or produce the requirement
quantities on time. This process involves the monitoring of
stocks and demand, leading to the automatic creation of
procurement proposals for purchasing or production.
The main objective of MRP is to determine which material
is required, the quantity required and by when it is
required.
What is MRP?
14. What is the MRP Process (1) ?
MRP compares the requirements for end products, from
Demand Management, with the current stocks and planned
manufacturing orders
MRP chooses a Production Version which indicates the Bill
of Material and Routing to be used
MRP then explodes the product BOM’s to determine the
‘dependent requirements’ for intermediate products and
purchased raw materials
15. What is the MRP Process (2) ?
MRP will normally be run weekly.
The MRP process assumes infinite capacity
The Rough-Cut Capacity Planning check in SOP ensures that the
loading is broadly correct before MRP runs.
16. MRP Type
For the MRP procedure, use MRP type PD in the material
master
MRP creates planned orders or requisition receipts to
balance the demand plan
Safety stock can be used to cover unplanned requirements
Time
Receipts
Requirements
17. Who is Responsible for MRP?
MRP Controller
Responsible for running and operating the material requirement
planning to check and track the planned requirement for both
finished products and raw material in order to generate Production
Orders and Purchasing Requisitions
18. Module 1: Demand Management
Module 2: Material requirements Planning
Module 3: Master Data
Module 4: MRP Planning Runs
Course Map
Module 5: Summary
Table of contents
19. Evaluations
There are several options for analyzing the Planning run
MRP list
By material
Collectively
Stock requirements list
By material
Collectively
Printed MRP list
Planning Result
MRP list
20. MRP list
Use the MRP list to analyze the planning result
The MRP list displays the future stock/requirements
situation at the time of the last planning run
By using the collective display, you can select a specific
MRP list based on plant and MRP controller
Analyze the exception messages in the MRP list, judge and
or solve problems
Use the processing indicator to indicate that you checked
the material
21. Planned order
Is the output of an MRP run
Are automatically created
Planned orders may be converted to production / process
orders or purchase requisitions
MRP
Planned
Order
10
20
30
Requirements
22. MRP Related Transactions
Practice the following exercise
MD01 Total Planning Run Online
MD02 Single-Item, Multi-Level
MDBT Total Planning in Background
MD07 Stock Requirements List Collective
MD05 Evaluate MRP List
MD44 Planning Situation Material