MRP PP-PPT

8/12/2019 MRP PP-PPT

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MRP-Material Requirement Planning


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PP ProcessMaterial Requirement Planning

Planned Orders

Production Order

Purchase Requisition

Confirmation

Capacity

Planning

Material Master

Bill of Material

Work Center

Routing

Sales Reqmt

Make to Order

DM/PIR

Order

MRP

PIR/SL/Quota

Goods Receipts

Purchase Order

PO Print

Release

Goods

Movement


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R

Sales order /

PlannedIndRequirementPlanned order

Purchase requisition

Dependent requirement

Planned order

Dependent requirement

FinishedFinishedproductproduct

Assembly 2Assembly 1

Raw

material 3

Raw

material 1

Raw

material 2

R/3s MRP is for unconstraint-based planning,

APO is for the constraint-based planning


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PP ProcessDemand Management

DEMAND MANAGEMENT

PURPOSE :

Demand management is to determine requirement quantities and delivery dates for

finished product assemblies. DM uses planned independent requirements and customer

requirements as input.

Source of Demand

Annual Sales Plan

Sales Order


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Splitting


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Splitting


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PP ProcessMaterial Requirement Planning

Objective of MRP

Guarantee Material Availability

Generate In-house/External Production and

Procurement Plan

MRP tries to strike the best balance possible

between

-optimizing the service leveland

-minimizing costsand capital lockup

MATERIAL REQUIREMENT PLANNING


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How the Planning Run Works

Net Requirements Calculation

1. Determine Available Warehouse Stock

2. Determine Planned Receipts (after considering existing issues and receipts)

3. Calculate the Shortage Quantity Lot Size Calculation

Determine the lot size of each plan order. R3 Lot Sizing falls into 3

categories : Static Lot Size, Optimum Lot Size or Period Lot Size

Procurement Type & Scheduling

In-house Production or External Procurement & Backward Scheduling or

Forward Scheduling

BOM Explosion

Determine the valid BOM for explosion

Quota Arrangement

A lot can further be split by quota arrangements

Net Requirements Calculation ---> Lot Size Calculation ---->-------> Scheduling --------> BOM Explosion ----->

-------> Quota Arrangement


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Basic Parameters for MRP MRP Type

Lot Size Safety Stock / Safety Time

Reorder Point

Rounding Value Procurement Type (In-house/Ext/Both)

Quota Arrangement

In-house Production days / Planned DeliveryTime

GR Processing Time


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Planning Parameter - MRP Type

Key that determines whether and how the

material is planned

No Planning

Manual reorder point planning

Automatic reorder point planning

Material requirements planning

Master production scheduling (MPS)


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Parameters for MRP-MRPType

No Planning ND

EX:- If we keep no planning for Material then

the results are as follows for BENT ROD


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Parameters for MRP-MRP Type

MRP type - PD (Planning Required) MRP type PD means the material will be

considered by MRP run for planning and triggerthe Procurement Proposals after Net reqt

calculation MRP Type - M0 (MPS)

This is set for critical material which are excludedfrom MRP Run. However planning for these

materials are done thru separate routine MRP type - VB (Manual Re-order Point)

Plans as per the Re-order level set for thematerial


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BOM Explosion

Scheduling

Procurement type

Lot-size calculation

Net Reqmts CalculationNet Reqmts Calculation

Overview:Net Requirements Calculation


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MRP:Net Requirements Calculation

ShortageShortage

SalesSalesOrdersOrders

Planned Ind ReqmtsPlanned Ind Reqmts

Dependent ReqmtsDependent Reqmts

ReservationsReservations

PlannedOrders

ProductionOrders

Purchase Requisitions

Purchase orders

WarehouseStock

LotSize

SafetySafetyStockStock

CompareCompare

DemandSupply

MRP will compare the requirement and supply to get a shortage gap.A comparison is made between warehouse stock and the appropriatereceipts and issue.


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BOM Explosion

Scheduling

Procurement type

Lot-Lot-size calculationsize calculation

Net Requirements

Calculation

Overview:Lot-Size Calculation


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Parameters for MRP-LOT SIZE

Lot SizeUsed to consolidate

demand/dependent reqmt as per the setbusiness rules.

Lot Size Procedures

Static lot-sizing procedures

Period lot-sizing procedures


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In static lot-sizing procedures, the lot size is

calculated by means of the quantity

specifications recorded in the material master

record.

There are three different criteria according to

which the lot size can be calculated:

Lot-for-Lot Order Quantity

Fixed Lot Size

Replenishment up to Maximum Stock Level
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Lot-for-Lot Order Quantity

after MRP run the order proposals as follows

Date Order proposals

14.11 Purchase order 20 15.11 Purchase order 30

16.11 Purchase order 50 .
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Parameters for MRP-LOT SIZE Static lot-sizing procedures

Fixed Lot Size

Fixed Lot Size set in Material Master as Ex-10 the results

as follows Date Order proposals 14.11 Purchase order 10 14.11 Purchase order 10 15.11 Purchase order 10

15.11 Purchase order 10 15.11 Purchase order 10 16.11 Purchase order 10 16.11 Purchase order 10..
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Replenishment up to Maximum Stock Levelif you want to fill the stock up to the highest possible level or if

you can only store a certain quantity of a material due to the

container size. This applies to a tank, for example. The capacity of

the tank determines the maximum stock level.

Maximum Stock Level:-100 EA
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Period Lot-Sizing Procedures

In period lot-sizing procedures, therequirement quantities from one or fromseveral periods are grouped together to form alot. The SAP System supports various periods.You can determine the number of periodswhich are to be grouped together into an orderproposal. You have the choice between

Daily lot sizeWeekly lot size

Monthly lot size
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Daily lot size EX:-Argo-2000

Date Order Proposals

14.11 20

15.11 30 16.11 50

17.11 60.


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Weekly lot size

EX:-Argo-2000


14.11 290 21.11 240

28.11 250


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EX:- Monthly lot size

Argo-2000


30.11 780


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BOM Explosion

SchedulingScheduling

Procurement typeProcurement type

Lot-size calculation

Net Requirements Calculation

Overview:Scheduling


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External procurementStockStocktransfertransfer

Procurement TypesProcurement Types

In-In-househouse

productionproduction

SubcontractingSubcontracting VendorProductionProduction inin

ownownplantplant

ProductionProduction inin

anotheranotherplantplant

Reservation inReservation in

anotheranotherplantplantComponentsComponentsComponents

Procurement typesSpecial procurement types

ProcurementTypes


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Scheduling

The following times are taken into account : processing time required by purchasing

department (workdays)

planned delivery time of the material (calendar

days)

goods receipt processing time (workdays)

These times will be used to determine the

release date of the planned order orpurchase requisition.


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Planned Orders for manufactured material

Purchase Requisition for external procurement

Action Messages & Planning related MIS

Documents

MRP PP-PPT