sap production planning

PRODUCTION PLANNING MODULE

PPPPPPPP

FIFICOCO

SDSD

MMMMPMPM

QMQM

PSPS

HRHR

Organizational and Master Data

Business Process for Manufacturing Planning and Execution

Reporting and Analysis

Sales Info System

CO/PA

Forecasting

Procurement

Sales & Oper.Planning

DemandMgmt

MPS/MRPMaterial planning

ManufacturingExecution

Order Settlement

Planning Process

Execution Process

Requirement from sales/marketing

Production Planning

Check Availability

Components Capacity

Run Schedule Qtys

Sch & Cap Levelling

Mfg. Execution Backflushing

Receipt of Fin Goods In Stores

Shift dates / Provide Addl. capacitiesPurchasing

yes

nonoyes

REM

Requirement from sales/marketing

Production Planning

Check Availability

Components Capacity

Production Order

Sch & Cap Levelling

Mfg. Execution Production Confirmation

Receipt of Fin Goods In Stores

Shift dates / Provide Addl. capacitiesPurchasing

yes

nonoyes

Discrete

Sales Info SystemInformation contains total sales orders already obtained, incoming sales orders, pending sales orders – product wise, customer wise, region wise.

ForecastingBased on the past history of consumption, a forecast of the sales figures for a product can be made.Future projections are made using one of the Statistical forecasting methods.

COMPONENTS

Sales & Operations PlanningHigher level planning i.e.overall planning at company level Yearly/Half yearly/Quarterly Planning

Demand ManagementManagement of RequirementsRequirements can be from sales forecasts, sales orders,etc.

CO/PAProjections will be based on the company’s future projection of costing and profitability analysis.

MRPThis is the total planning of all the components taking into consideration the existing requirements and stocks.Creation of purchase requisitions, production orders,etc.Final step in the planning process.

MPSPlanning of items that greatly influence the company’s profits or consume critical resources/dominate production processes.After the production plan of these critical items are firmed up, the planning of other components are taken up.

Repetitive Manufacturing -Run Schedule quantities are viewedQuantities are confirmed by BackflushingGoods are received into stock

MANUFACTURING EXECUTION

Discrete Manufacturing -Production orders are releasedMaterials are issuedCompletion confirmations are performedGoods are received into stock

ORDER SETTLEMENTCosts accrued to an order are debited to one or several allocation receivers belonging to financial or managerial accounting.

STANDARD PRODUCTION PLANNING REPORTS

Stock/Requirements ListLists the latest stock/requirement position of a materialin the plant i.e.planned orders, production orders,etc.

Production PlanThis report lists the monthly production plans – materialand plant wise.

OrdersThis report lists the orders pending/completed for a materialmaterial wise or work center wise..


Quantity producedThis report lists the quantity of the material produced during the Period in question.

Work center LoadsThis report lists the available capacities, required capacities,remaining available capacities and %load for the work center.

ConsumptionLists the consumption of a material for the period in question.

BacklogsLists the backlog of the load at a work center for the periodin question.

Missing partsLists the missing parts that are required for the production ofa material.


Production Planning Basic Data

Routings

Work CentersMaterials

CapacitiesInspectionPlans

Production Facilities

Bills of Material

PP Basic Data Production Resources/Tools

F06010

SAP R/3 Integration Model

Sales &Distribution

Sales &Distribution

ProductionPlanning

ProductionPlanning

MaterialsManagement

MaterialsManagement

Finance &ControllingFinance &

Controlling

CustomerCustomerSales Order

Shipment

Receivable Accounts / Cash Receipt

Credit Limit

Material Availability Check

Transfer of Requirements

Goods Issue to SO

Goods Receipt

Invoice Receipt

Purchase Order

Accounts Payable

Invoice

Accounting DocumentProduction Cost

Production Order

Production Order Receipt

Sales Forecast / Plan

VendorVendor

Organizational Structures in R/3

Cost accounting

Accounts

Internal logistics(MRP/Production)

Inventory management

Group

Controlling areas

Sales organizations

Company codes

Valuation areas

Plants

Storage locations/batches/special stocks

External logistics Purchasingorganizations

LevelsLevelsViewsViews

Material Master Data

General Data St. Loc. Specific Data Plant Specific DataSales Specific Data

Material Master

Data applicable throughout the client

e.g.

Material number

Description

Units of measure

Weight

Volume

Product hierarchy

Data dependent on sales organization and distribution channel

e.g.

Delivering plant

Sales text

Sales units

Shipping data

Division

Data relevantfor planning andproduction

e.g.

MRP profile

Production costs

Planning data

Valuation

Data referring to storage and inventory management

e.g.

Quantities

Special stock

Warehouse attributes

Material Types in the Standard SAPMaterial Type

DIEN

ERSA

FERT

HALB

HAWA

HIBE

LEER

NLAG

ROH

VERP

WETT

PROD

ServiceSpare PartFinished ProductSemi-finished ProductTrading GoodOperating SupplyEmpty ContainersNon stock ItemRaw MaterialPackagingCompetitor ProductProduction Resources/ Tools

Description

ProductData

EngineeringDesign

Sales

Production

Stock

Finance

Purchasing

Master data is a key pieceof information in the system

Master data can be seen froma number of views

Each view can correspondto an SAP module

Each view has a numberof information screens

Each view belongs to an org unit within the business

One product may have multiple plant and sales views, one for each plant or sales area

Master Data Views

EngineeringDesign

Sales

Production Stock

Finance

Purchasing

Examples of How Data is Used

Texts copiedto purchase orders

Maintains stock levels by plant, storage location, and batch

Data used tocalculate MRP

lead times

Controls customer ordering rules

for material

Controls whichGeneral Ledger

Account is updatedMaterial descriptionused in reporting

ProductData

Bills of Material

Simple BOM Variant BOM Multiple BOM

Simple BOM representing single material

Similar materials representedby variants on one BOM

BOM representing a material which can be made up of multiple compositions

e.g. different components

and quantities

Bill of Material Validity Area of Validity – The same Bill of Material can be allocated to several

plants. Before you can allocate the BOM to a different plant, the material

must exist at the new plant, the unit of issue on the BOM item must be

the same.

Validity Period (Valid from/to dates)

Becomes effective with the valid from date

The validity date is determined by the system automatically to be

either the next effective from date, or 12/31/1999.

A A

B C B D

X----------------------------------------------------------->>>>from 1/1/95 from 12/31/95to 12/30/95 to 12/31/99

BOM Structure

BOM Header

Item 10

Item 20

Item 30

Sub Item 10

Sub Item 20

Plant AssignmentValidity PeriodRelease Indicator

Stock ItemsNon-stock ItemsVariable Size ItemsDocument ItemsText Items

Additional component details

e.g. installation pointsfor components

Bill of Material Glossary�BOM Category – categorizes BOM’s to represent different objects; for example:

�Material BOM -- structure of products manufactured�Equipment BOM -- structure of equipment for plant maintenance�Document BOM -- structure of documents such as drawings (3.0)

�BOM Group – is a collective number for all BOM’s in a group which allows for one

or several similar products to be described under one number.�All Alternatives of a multiple Bill of Material�All variants of a variant Bill of Material

�BOM Usage – special view of the BOM which represents a specific area of

the company in which the BOM is used; for example, Engineering, Production,

Costing, Sales, Plant Maintenance

The BOM Usage allows different views to exist without

separate BOM’s for each usage.

�Technical Type – the system distinguishes BOM’s according to whether they

represent product variants or production alternatives. If you create a variant

for the BOM,the system marks it as a Variant Bill . If there is more than one

alternative for a material, the system marks the BOM as a Multiple Bill.

Bill of Material Glossary (cont.)

BOM Validity – Bills of Material are valid over an area and effectivity period.Area of Validity -- identifies which plants the BOM has been allocated toValidity Period -- identifies the from and to effectivity dates. The default to date is 12/31/9999

Item Category – When you enter a new Bill of Material item, an item category must be assigned.�It has important control functions such as:

Screen selection Specific processing, such as material number required, negative values supported. The Item Category cannot be changed once set. It must be deleted and re-added. Sizes are maintained for variable-size items Item categories include:

�Stock Items -- material in stock as a component�Non-stock Items -- material not stocked - with or without a material number�Variable-size -- system calculates the quantity required using formulas�PM Structure Item -- used with plant maintenance equipment�Document Item -- used with Document BOM’s

�Sub-Items – are typically used to represent different installation points for partial quantities of an item.

� In assembling resistors on a printed circuit board, the installation points are described.� There is no logic related to sub-items

Bill of Material Glossary (cont.)

AssemblyLine

Machines

People

ProductionLine

Capacity Requirements Planning

Scheduling, Execution Times

Costing

Work Centers

Work Centers

Cost Center

Work Centers and Routings

Routing

Operation 10

Operation 20

Operation 30

Work Center W1

Cost Center 100

Assembly

Cost Centre 200

Work Center W2 Finishing

Cost Center 200

Work Center W1

Cost Center 100

Assembly

Work Center Category Work centers are allocated to different work center categories

The work center category is used to control the field and screen selectionfor work centers during work center maintenance.

Work Center Category Screen View

Statistical Work center Basic Data

Production Work Center Basic DataDefault ValuesCapacity ValuesSchedulingCost Center Assignment

Cost Center Assignment to Work Center for Operation Costing

Cost Center

Oper 0010 Oper 0020 Oper 0030 Oper 0040

Routing with standard values

Set Up (SET)

Machine (MACH)

Labor (LAB)

Work Centerwith Activitiesduring production

Activity Rates

Set Up $70.00

Mach $60.00

Labor $80.00

Overhead $70.00

Work Center Capacity

Oper 0010 Oper 0020 Oper 0030 Oper 0040

Routing with standard values

Set up Formula

Machine Time Formula

Teardown Formula

Work CenterFormulas

Set up 1.0 hrs

Machine 5.5 hrs

Teardown .5 hrs

Operation Std Values

Work Center Schedule

Use of Formulas in Work Centers

8 hrs

1 hr

7 hrs

1 hr

6 hrs

WorkingHours

BreakTime

WorkingHours less

Breaks

PlannedDowntime

ProductiveWorkingHours

Available Capacity at a Work Center

Routing Structure Views

Routing

Operation 30Operation 20Operation 10

Work Centre: PP-ASSEM

Control Key:- Time Tkts- Costing

Operation Text:Pre-assemble

frame

Std Values:Lab:10 mins

Mach:10 mins

MaterialsComponents

BOM

Process Resource Tool

(PRT)

BOMGroupsBOM

Groups

Production Master DataMaterialsand PRTs

Materialsand PRTs

Bills of Material

Bills of Material RoutingsRoutings Work

CentersWork

Centers

RoutingGroups

RoutingGroups

CostCentersCost

Centers

ComponentsAllocated toOperations

Item Category

Material Type

W/C Category

Operation

Operation types

(Main) operation

Sub-operation

Sub-operation HierarchyCosting

Completion confirmations Scheduling always takes place on the

(main) operation level

The control key defines whether completion confirmations and costing are carried out on the (main) operation level, or on the sub-operation level.

Indicator: group operation sub-operation levelcombined operation (main) operation

Operation / Sub-operation

Operation0010

Operation0010

Operation0020

Operation0020

Sub Operation0010 / 10

at Work Center A1


at Work Center A1


at Work Center A2


at Work Center A2


at Work Center A3


at Work Center A3

Schedule at Operation Level

Useful when processing for operation 0010occurs over multiple work centers

Capacity Planning & Costingpossible at Sub Operation Level Level

Material Allocation

Op. 10Op. 10

Op. 20Op. 20

Op. 30Op. 30

Op. 10Op. 10

Op. 30Op. 30

RoutingBOM

ProductProduct

Material

1

1

2

2

01

02

01

02

1

1

1

2

3

1

2

3

1

1

Routing Group

Routing GroupCounter

Material-Routing Allocations

A routing alterative can be allocated to several materials. A material in a plant can be allocated to several alternatives.

Routing Default Values

RoutingRoutingMaterialMaster

MaterialMaster

WorkCenter

WorkCenter

Base Unit of MeasurePlanner GroupShort Text

Control KeyStandard ValuesActivitiesStandards Text KeyHR data

External ProcessingOper 0010Oper 0010

Oper 0020Oper 0020

Oper 0040Oper 0040

Oper 0050Oper 0050

Purch ReqnPurch Reqn

Purch OrdPurch Ord

Vendor ProcVendor Proc

Goods RecGoods Rec

Routing data copied to orderincluding quantities and dates

Purchasing creates P.O.

At goods receipt, the operationis confirmed

Routing Operation SequencesStandard

Routing represents a standard sequence defining production procedure

ParallelRouting includes processes which can be performed simultaneously to achieve time efficiencies

SplitRouting includes processes which can/must be split across a numberof work centers

OverlappedRouting defines process where one operation is to overlap with the following operation

The Planning Concept in SAP

SalesPlan

SOP

ProductionPlan

MPS

PlannedIndependent

Requirements

Customer IndependentRequirements

Requirements (Orders) from SD ModuleOffset

Keep Balanced

Order Proposals

MRP

Planned Orders

Production Orders

Purchase Requisitions

Demand ieRequirements

Order proposals, planned orders etc are created and adjusted by running the MRP or MPS programs.

SOP specifies sales quantities for the long and intermediate term to roughly assess the feasibility of sales and operation plans

Sales and Operations Planning at the Product Group or F/G level

Materials may be planned together in Product Groups

Sales quantities are determined for future periods

Production quantities are then determined on the basis of sales

Sales and Operations Planning Functions

MRP II is concerned with integrating individual plans within a supply chain

Profitability Analysis – Revenue and Sales Plans

Sales and Operations Planning – Sales and Production Plans

Master Planning – Demand Program and Master Schedule

Material Requirements Planning – Dependent Requirements and Procurement Plan

Sales and Operations Planning – Planning Levels

Step 1 – Sales Planning of Future Sales Quantities

Copy in from Sales Information System or Profitability Analysis

Automatic forecast based on historical factors

Manual entry of sales quantities

Step 2 – Production Planning

Synchronize production plan with sales plan

Stock level equal to zero

Specify a target days supply by period

Specify a target stock level by period

Enter planning data manually

Sales and Operations Planning – Steps

Step 3 – Disaggregation of Planning Values

Determine the sales and production quantities of product group members

Modify the disaggregated sales planning data and create a production plan for each member

Step 4 – Transfer of Planning Values to MRP

Pass the planned sales and production quantities as independent requirements to demand management

If product group data is transferred, the system automatically disaggregates the planning data to the finished product level

Sales and Operations Planning – Steps

Sales and Operations Planning – Product Groups A Product Group brings together materials according to some criteria such as

similar type or manufacturing process.

Link material master data with product groups

Materials and product groups can be members of more than one group for different planning scenarios

Assignment of members from different plants to the same product group for cross-plant planning

A product group may have a different unit of measure from its members e.g. aggregate in cartons vs pieces

Proportional factors for disaggregation - how the product group quantitiy is distributed to its members

Supports production versions for a material or group

Supports multi-level product group hierarchy

Graphical support of one or more levels

Sales and Production Planning is carried out using a Planning Table which

shows the stock level that results from the sales and operations planning for

both materials and product groups

The Planning Table is divided into:

Sales Quantities

Production Quantities

Target Day’s Supply and Target Stock Levels

Sales and Operations Planning – The Planning Table

Sales and Operations Planning – Creating a Sales Plan

Manual Data Entry and Distribution Functions

Entered directly into the Planning Table as a % or qty

Copying Data from Sales Information System

Planned order, invoiced or delivery quantities

The planning data is aggregated across all materials in the group

Copying from Profitability Analysis

Quantity and performance measures

Copying the Forecast

Aggregates the consumption values for all the materials in the product group

Sales and Operations Planning – Creating a Production Plan

Determine the quantities to produce to meet the sales plan

Synchronize to the Sales Plan – the system copies the sales quantities into the

production quantities

Zero Stock Level – Use existing stock to cover sales quantities. When used up,

production quantities will synchronize with the sales quantities

Target Stock Level – The system determines production quantities based on

sales and target stock levels

Target Days Supply – Coverage is expressed in days

Sales and Operations Planning – Disaggregation

Functionality is based on proportionality factors of product group members

The result of disaggregation is the sales plan of its members

Strategy parameters are used to create the production plan from the sales plan

on to a product group member

Disaggregation can be carried out for the product group or for selected members

only

Sales and Operations Planning – Transferring Data to Demand Management

Transfer a single-level product group (multiple) or individual material (single)

Independent Requirements Parameters

Specify Requirements Type

Version Number

Limit scope of the time period

Master Planning

Demand Management

Planning and Consumption Strategies

Specification of Requirement Quantities and Delivery Dates

Master Production Scheduling

Planning for Master Schedule Items

Planning Time Fence

Interactive MPS

Copy from Sales Plan

Copy from Prodn Plan

Copy from Forecast

Copy from Orig Plan

Demand Management“Demand Program”

Manual Planned Independent

Requirements

Sales Demand fromSales Orders

MRP/MPS

Sales and Operations Planning

Make product for stock in expectation of customer sales

Plan using planned independent requirements for “anonymous” make-to-stock

production.

Use Net or Gross Requirements Planning

Net Requirements -- includes warehouse stock, planned issues and receipts

Gross Requirements -- excludes warehouse stock. Just includes planned and open orders

Example is a shelf stock item such as a bike accessory light

Planning Requirement Type is LSF - make to stock which is used in the planned independent requirements transaction

Sales Order Requirement is KSL - which is sale from stock

Planning Strategy – Make-to Stock

Sale from stock Planning

Production Push

Warehouse Stock Finished Product

Strategy: Make-To-Stock Production

Example: Common shelf items such as a bike accessory (light)

Make product in expectation of customer sales

Plan using planned independent requirements at finished goods level to drive

demand to long lead time components

Typically there is a longer lead time to produce than the customer is

willing to wait for

Sales orders consume the planned independent requirement quantities

Planned quantities that are not consumed by sales orders result in excess stock

Example is a long lead time custom product

Planning Requirement Type is VSF – planning with final assembly

Sales Order Requirement is KSV – which is sales order with consumption

Planning Strategy – Planning with Final Assembly

Sales Order Planning

Production Push


Example: Custom furniture such as a cherry table

Final Assembly

to Sales OrderPurchase Produce

MRP without reference to sales order

Planned Independent Requirements

Strategy: Planning with Final Assembly

Planning Strategy – Planning Without Final Assembly

Final assembly is initiated by the customer sales order

Stop production at sub-assembly level

Final assembly pull

Example is automobile assembled with unique combination of features (sub-

assemblies)

Planning Requirement Type is VSE -- planning without final assembly

Sales Order Requirement is KEV -- independent customer order with

consumption

Sales Order

Planning

Production PushFinal Assembly Pull


Warehouse StockAssembly 01


Example: Option oriented product such as a car

Stop at level


Assembly when Sales Order Scheduled

Purchase Produce

Strategy: Planning Without Final Assembly

Planning Strategy – Planning with Planning Material

Planned independent requirements of Planning Material initiate procurement of

the planning bill components

Sales orders for the final assembly create planned orders of the finished product

and reduce planning quantities for the planning material

Possible to plan a family of products from forecast placed on the planning bill.

The planning bill details, through percentages, the quantity required for common

parts

Example is a bike with common sub-assemblies used in many finished items

Planning Requirement Type is VSEF -- planning with planning material

Sales Order Requirement is KEVV -- independent customer order with planning

material

Sales Order Planning

Production PushFinal Assembly Pull

Customer StockFinished Product

PlanningMaterial



Example: Bikes with the same features except for the color

Purchase Produce Note: Percentages drive lower level demands for sub assemblies

Strategy: Planning with Planning Material


Sales Order

Production by Lot Size Pull


Example: Combine customer orders for the same item

Strategy: Production by Lot Size

Planning Strategy – Make to Order Production

Sales orders are planned according to sales order number

Produced quantities for each sales order are managed individually

Production and procurement costs are managed in either a settlement order or

a project

Example is a custom product with a unique structure such that it only applies to

a particular customers order

Sales Requirement Type is KE -- independent customer order without

consumption

Sales Order

Production by Lot Size Pull


Example: New machinery

Strategy: Make-To-Order Production

MRP Features

MRP

Lot sizing

Order schedulingand generation

Internal productionand external purchasing

Net requirementscalculation

Bill of MaterialExplosion

Forecasting

MRP Overview

Overview Purchased Items MRP

Purchasing

Accounting

Warehousemanagement

system

Goods receipt

Inventory managementValuation

Goods Transfer issue posting

Invoice receipt

Invoice verification

Master data

MaterialBatchesVendors

Customers :

MRP: Reorder Point Planning

Reorder Point

Safety Stock

Order Date Delivery DateTime

Stock

PurchasingProcess Time

Vendor Planned Delivery Time

Desired Delivery DateRelease

Order Date

Forward Scheduling for External Procurement

Today

Goods ReceiptProcess Time

Forward scheduling used for reorder point material

Daily Accumulation:

Sales Orders

Planned Individual Requirements

Reservations

Entriesfrom

Planning File

Warehouse Stock

+

Open Order Proposals

Shortages

Order Proposal

Net Change Planning

Coverage calculation per requirement date

MRP Prerequisites

Activated for MRP PLANT LEVEL

MATERIAL LEVEL Valid MRP Type

Valid Material Status

Material MRP Views Maintained MRP Controller Planned Lead Time MRP Group Lot Size Data

Material Master – MRP I Key Fields

Basic, General, and Lot Size Data

Procurement Type indicates if the material is externally procured, or produced internally or both.

Special Procurement identifies special planning rules which may be used for in-house production or external procurement

MRP Type determines how the material is planned such as MRP, MPS, or consumption based planning

Material Lead Time identifies for material planning the planned delivery days or in-house production days

Lot Size determines which lot-sizing procedure the system uses to calculate order quantities

Material Master – MRP 1Key Fields

Scheduling Parameters

Planning Time Fence: defines a period during which MRP/MPS will not automatically add or reschedule orders

Scheduling Margin: controls the release period, opening period for a material and scheduling floats for production

Release period is the number of working days in the release period

Opening period is the number of working days between the order creation and planned start date

Order floats allows for safety margin before and after production

Planned Delivery: lead-time for purchased material

In-house Production: lead-time for manufactured material

GR Processing Time: goods receipt processing time

Example: dock-to-stock time

Material Master – MRP 2 Key Fields

Availability Check indicates whether the system generates individual or summarized requirements for sales orders for this material and for planning, which MRP items the system includes in the availability check.

Mat./PPC Status is used to limit the usability of materials for certain activities such as, purchasing, bills of material

Material Master MRP 3 Key Fields

Independent Requirements

Consumption Mode: controls consumption of planned independent requirements by customer requirements

Selections: backward, forward, or both

Consumption Periods Backward/Forward: specifies the number of periods of forward or backward consumption

Used in conjunction with consumption mode

Storage Location MRP

MRP Indicator: determines whether or not requirements, for a specific storage location, are planned separately from the overall plan

Reorder Level: used for storage location MRP

Replenishment Quantity: used for storage location MRP

MRP TypesVB

VM

VV

PD

M0

Manual Reorder Point Planning:MRP produces order proposals when stock falls below a “reorder point”. The reorder point and safety stock levels are entered manually

Automatic Reorder Point Planning:The reorder point and safety stock level are calculated based on the forecast results

Forecast PlanningThe latest forecast is copied as requirements which are used to create order proposals

Deterministic PlanningMRP produces order proposal(s) to match the exact quantity of the requirements based on independent and dependent demands

Master Production SchedulingSimilar to PD but used for master schedule items

Lot Sizing

Static Periodic Optimum (Cost )

Lot for Lot

Fixed Lot size

Replenish up tomaximum stocklevel

Daily Lot size

Weekly Lot size

Monthly Lot size

Flexible period

Lot size accordingto planning calen.

Part period balancing

Least unit cost procedure

Dynamic Lot size creation

Groff reorder procedure

MRP: Static Lot Sizing

Lot for Lot Order Quantity: Shortage Quantity = Ordered Quantity

Replenishment up to Maximum Stock Level:

Stock required to achievemaximum stock level set in

the material master

Order Quantity =

Material Fixed Order

Quantity

= ShortageQuantity

Order =Fixed Order

QuantityIf

Order

Order

OrderFixed Lot Size:Shortage Quantity

>Fixed Order Quantity

If

Carrying Out the Planning Run

Total Planning – All materials in a given plant

All materials are reviewed by MRP regardless of activity

Only the materials in a plant that have undergone a change relevant to planning since the last planning run (net change planning)

Planning Interval – Limiting the MRP Planning Interval

Time

Planned requirements andsupply order receipts

example:100 days

MRP Planning Horizon

Planning Run Options for Automatic Creation of Requisitions and Delivery Schedules

MRP Control Parameter: determine whether or not MRP will

automatically create requisitions or delivery schedules

Options are:

Do not automatically create. Only create planned order

Automatically create within the opening period

Automatically create for the entire planning horizon

Opening Period Parameter: allows the user to take advantage of

MRP’s automatic creation features while retaining control over the

number of open purchasing documents

MRP List

MRP Controller

Group of Materials for which controller

is responsible

Controller’s MRP Listing

Goods ReceiptGoods Issues

MRP Order Proposals and Planner Messages

from MRP Planning run.

Planner can drill down to review material movement activity

Stock Requirements List

Date MRP Element Supply/Demand Ref EM Quantity Available

01/01 STOCK 10001/08 ORDER Sales Order 25 7501/15 PL ORD 1000 120 05 100 17502/01 -----------------------------------------------------> Planning Time Fence

Stock Requirements List brings together all the supply orders, independent and dependent demands and stock balances for the material. MRP makesorder proposals to balance the supply/demand position for the material

MRPPlanningResult

MRP List vs Stock Requirements List

The MRP List displays the result of the last planning run

The Stock Requirements List displays the most up-to-date stock and

requirements situation

MRPPlanningProcess

MRPPlanningProcess

Last planningrun results

Stock RequirementsList uses current data

Current Stock, Rqmts, Balances, planned Receipts, Issues

PurchasingProcess Time

Vendor Planned Delivery Time

Desired Delivery DateCalculated OrderRelease Date

Backward Scheduling for External Procurement

Future RequirementDate


MRP determines the basic scheduling dates using backward scheduling If the release date lies in the past, the system automatically switches to

forward scheduling

MRP PlanningDate -- today

MRP Planning Lead Time

Order ReleaseProcess Time

In-houseProduction Time

Order Finish Date

OrderStart Date

Backward Scheduling for In-house Production

Future Requirement

Date


MRP determines the basic scheduling dates using backward scheduling

If the release date lies in the past, the system automatically swithches to forward scheduling

MRP PlanningDate -- today

MRP Planning Lead Time

Order Release

Date

E1

Independent RequirementsCustomer Requirements

Planned Orders

Dependent Requirements

B2B1

R1 R2 R3

Planned Orders

DependentRequirements

DependentRequirements

Level 0

Level 2

Level 1Planned Orders

Planned OrdersPlanned OrdersPlanned Orders

= Demand= Supply

Planning Structure

Multi-Level

Order Proposals: Planned Orders

Procurement Type isIn-house Production

MRPMRP

Controller

Planned OrderOrder QtyOrder DateCapacity Reqts.Resource Reqts.

Planned OrderOrder QtyOrder DateCapacity Reqts.Resource Reqts.

Production Order

Planning for In-house Production

PlannedOrder

PlannedOrder

ProductionOrder

Auto Change/ Delete if situation changes

AutoCreation

Collective Conversioninto Production Order

Manual changes/deletion

ManualCreation

Planning Run MRP Controller

Individual Conversioninto Production Order

ProductionOrder Release

The Production Cycle

Issue Materials to Order

SelectBOM

SelectRouting

ScheduleTimes & Dates

CalculateCapacity

Purchase Requisitions

GoodsIssue

Production Order

CalculatePlanned Costs

ReleaseOrder

Check Availability

Print Shop Floor

Papers

CreateOrder

CreateRequired Purchases

ConfirmCompletion

Receive complete goods into stock

GoodsReceipt

Confirmation Slip

CalculateActual Costs

ActualLabor

Production Order CreationManual

Order CreationOrder Proposal

MRP Conversion

DetermineOrder Type

RoutingSelection

Lead TimeScheduling

Bill of MaterialSelection

Enter start or finish datedepending on scheduling direction

Component Overrides Material Reservations Item Categories

Alternate Sequence Assignments One operation is required

Changes are allowedbefore order release

OAK BROOK TECHNOLOGIES

Production Order Release

Production OrderReady for Release

Material AvailabilityCheck

Order orOperation Release

Shop Paper Printing Possible

MaterialWithdrawals Possible

Order release is carried out manually

Uses checking rules defined in configuration

On-line or in background Pick List, Confirmation Slips,...

Material Availability Check

Stock on Hand

150 Units

Reservationfor

50 UnitsNetAvailable 150 100 300 100

Planned Orderfor

200 Units

Dependent Requirement

for 200 Units

Requirement for 50 Units are Available

Goods Movement for a Production Order

Material 1

Material 2

Production

Goods receipt of Material 3

Goods Issue Consumption ofMaterial 1 and 2

Reservation

Planned Goods Issue

Unplanned Goods Issue

Goods issues only apply to stock items

Goods Issue Results

Goods Issue Posting

UpdateReservations

G/L AccountUpdate

Accounting

Material Document

MaterialUsage

Statistics

Cost ObjectAllocation

Completion Confirmations

Production OrderOperations

0010 - Assemble Board

0020 - Assemble Case

0030 - Assemble unit

0040 - Final Test

Production OrderOperations

0010 - Assemble Board

0020 - Assemble Case

0030 - Assemble unit

0040 - Final Test

C

ConfirmOperation 0010

Activities


Activities


Activities


Activities


Activities


Activities


Activities


Activities

Partial or Final Confirmation Single or Collective Confirmation Milestone Confirmation Reduction of Capacity Requirements Determination of Actual Costs

Milestone

Confirmation Data

Quantity

Dates

Labor

Yield Scrap Quantity Scrap Reason

Start date Finish date

Work Center Personnel Number Qualification Wage Group Wage Type

sap production planning

Documents

manufacturing planning

total planning

material material wise

overall planning

sales orders product

total sales orders

incoming sales orders

sales forecasts