The document provides an overview of materials requirements planning (MRP) and production planning. It discusses the objectives of understanding demand management and MRP, performing transactions, and evaluating MRP planning runs. The key aspects covered include the MRP process of comparing demand to stock to determine dependent requirements, running MRP weekly assuming infinite capacity, and analyzing the planning results using MRP lists and stock requirements lists. The responsibilities of planners and MRP controllers are also outlined.

1. MRP & Production Planning

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