scm241

SCM241Production Planning in ERP for

Functional Consultant

SAP ERP - Production

Course OutlineCourse Version: 98Course Duration: 5 Day(s)Publication Date: 2014Publication Time:

Copyright

Copyright SAP AG. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose withoutthe express permission of SAP AG. Additionally this publication and its contents are providedsolely for your use, this publication and its contents may not be rented, transferred or sold withoutthe express permission of SAP AG. The information contained herein may be changed withoutprior notice.

Some software products marketed by SAP AG and its distributors contain proprietary softwarecomponents of other software vendors.

Trademarks

Microsoft, WINDOWS, NT, EXCEL, Word, PowerPoint and SQL Server areregistered trademarks of Microsoft Corporation.

IBM, DB2, OS/2, DB2/6000, Parallel Sysplex, MVS/ESA, RS/6000, AIX,S/390, AS/400, OS/390, and OS/400 are registered trademarks of IBM Corporation.

ORACLE is a registered trademark of ORACLE Corporation.

INFORMIX-OnLine for SAP and INFORMIX Dynamic ServerTM are registeredtrademarks of Informix Software Incorporated.

UNIX, X/Open, OSF/1, and Motif are registered trademarks of the Open Group.

Citrix, the Citrix logo, ICA, Program Neighborhood, MetaFrame, WinFrame,VideoFrame, MultiWin and other Citrix product names referenced herein are trademarksof Citrix Systems, Inc.

HTML, DHTML, XML, XHTML are trademarks or registered trademarks of W3C, WorldWide Web Consortium, Massachusetts Institute of Technology.

JAVA is a registered trademark of Sun Microsystems, Inc.

JAVASCRIPT is a registered trademark of Sun Microsystems, Inc., used under license fortechnology invented and implemented by Netscape.

SAP, SAP Logo, R/2, RIVA, R/3, SAP ArchiveLink, SAP Business Workflow, WebFlow, SAPEarlyWatch, BAPI, SAPPHIRE, Management Cockpit, mySAP.com Logo and mySAP.comare trademarks or registered trademarks of SAP AG in Germany and in several other countriesall over the world. All other products mentioned are trademarks or registered trademarks oftheir respective companies.

Disclaimer

THESEMATERIALS ARE PROVIDED BY SAP ON AN "AS IS" BASIS, AND SAP EXPRESSLYDISCLAIMS ANY AND ALL WARRANTIES, EXPRESS OR APPLIED, INCLUDINGWITHOUT LIMITATION WARRANTIES OF MERCHANTABILITY AND FITNESS FOR APARTICULAR PURPOSE, WITH RESPECT TO THESE MATERIALS AND THE SERVICE,INFORMATION, TEXT, GRAPHICS, LINKS, OR ANY OTHER MATERIALS AND PRODUCTSCONTAINED HEREIN. IN NO EVENT SHALL SAP BE LIABLE FOR ANY DIRECT,INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES OF ANYKIND WHATSOEVER, INCLUDING WITHOUT LIMITATION LOST REVENUES OR LOSTPROFITS, WHICH MAY RESULT FROM THE USE OF THESE MATERIALS OR INCLUDEDSOFTWARE COMPONENTS.

g201471331441

SCM241 Contents

Contents

Course Overview ....................................................................... v

Course Goals .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .viCourse Objectives ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .vi

Unit 1: Overview Of Production Planning In ECC .............................. 1

SAP ERP Supply Chain Planning Overview ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Unit 2: MRP Basics .................................................................... 2

Concept of MRP... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2MRP Types ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2Prerequisites for Running MRP .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2Methods for Executing a planning run... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Settings in the Planning Run ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Introduction Net Requirements Calculation ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Unit 3: Effects Of Demand On MRP................................................ 4

Introduction To Demand Management .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Make to Stock Planning Strategies ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Effects Of Sales Order ATP On MRP .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Make to Order Planning Strategies ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5Effects Of Safety Stock On MRP .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5Planning Stock Transfers With MRP ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5Dependent Requirements In MRP... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5Adjusting Planned Independent Requirements .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Unit 4: Effects Of Stock On MRP ................................................... 6

Stock Types in Production Planning... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Effects Of Quality Inspection On MRP .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Storage Locations In the MRP Run... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Unit 5: Effects Of Receipts In The Planning Run ............................... 7

Firming Receipts (Manual Changes) .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7Capacity Planning In The Planned Order.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7ATP in the Planned order .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7Firming Types And The Planning Time Fence ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Fixed Receipts In MRP... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Roll Forward Period ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

2014 SAP AG. All rights reserved. iii

SCM241 Contents

Unit 6: Controlling Receipt Quantities ............................................ 9

Static Lot Sizing Procedures ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9Periodic Lot Size Procedures ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9Additional Receipt Controls.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9Dynamic Safety Stock ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10Scrap In MRP... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Unit 7: Source Determination For New Receipts In MRP .................... 11

Source Determination Overview ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11Master Data Selection during the Planning Run ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11Basic Dates Scheduling in the Planning Run ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11Lead Time Scheduling in the Planning Run ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12Quota Arrangements .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Unit 8: Additional Topics In MRP..................................................13

Discontinuation in Production Planning ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13Long-term planning requirements .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Unit 9: Appendix (Self Study) ......................................................14

Continuous Input/Output .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14Cross Plant Planning in ECC.... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14Tcodes , Menu Paths, and BADIs... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

2014 SAP AG. All rights reserved. iv

SCM241 Course Overview

Course OverviewThis course is designed for anyone who wishes to enable Material Requirements Planning inECC. As a participant of this course you will learn the intricacies of how to use MRP to planthe replenishment of materials. This will include reviewing the fields in the Material Master,Bill of Material, Routing, and configuration.

Target AudienceThis course is intended for the following audiences:

Consultants Implementing MRP/MPS in SAP ERP

Customers or Users who will be using MRP/MPS on a daily basis

Course PrerequisitesRequired Knowledge

Working knowledge of the following master data objects in SAP ERP

Material Masters

Bills of material

Task Lists/Routings

Work Centers/Resources

Master Recipes

Recommended Knowledge

General understanding of Production Planning process and industry terms

General understanding of SAP ERP applications and the integration to ProductionPlanning (PP)

2014 SAP AG. All rights reserved. v

SCM241 Course Overview

Course GoalsThis course will prepare the participant to:

Gain an overview of the basic principals of SAP ERP Production Planning

Demonstrate the tools that a production planner would use on a daily basis

Demonstrate how Planning strategies are used to control the planning and inventoryprocess

Gain detailed working knowledge of:

Demand Managements (DM)

Materials Requirements Planning (MRP)

Master Production Scheduling (MPS)

Long Term Planning (LTP)

Demonstrate how to configure MRP in SAP ERP

Course ObjectivesAfter completing this course, the participant will be able to:

Gain an overview of the basic principals of SAP ERP Production Planning

Explain the intricacies if the net requirement calculation

Demonstrate how Planning strategies are used to control the planning and inventoryprocess

Gain detailed working knowledge of MRP/MPS in SAP ERP

Demonstrate how to configure MRP in SAP ERP

2014 SAP AG. All rights reserved. vi

SCM241 Course Outline

Unit 1Overview Of Production Planning In ECC

Unit OverviewThis unit will give you an overview of some of the steps to be performed by a supply chainplanner using SAP ERP.

Lesson: SAP ERP Supply Chain Planning Overview

Lesson ObjectivesAfter completing this lesson, the participant will be able to:

Outline the steps in the SAP ERP Supply Chain Planning process

Demonstrate knowledge of the different planning techniques in SAP ERP

2014 SAP AG. All rights reserved. 1


Unit 2MRP Basics

Unit OverviewThis unit will discuss the basics relevant to production planning. You will be introduced tovarious concepts of planning using SAP ERP as well as some of the transactions that will beused throughout the balance of the course to trigger replenishments for large amounts ofmaterial.

Lesson: Concept of MRP


Explain the Fundamental concept of Materials Requirements Planning (MRP)

Explain the purpose of independent requirements.

Lesson: MRP Types


Explain how the different planning techniques can influence your business process

Explain how Consumption based planning is used in SAP ERP

Explain howmaster production schedulingwill fit into the production planning process

Demonstrate how to execute an MPS planning run.

Lesson: Prerequisites for Running MRP


Identify the minimum configuration requirements in order to exe-cute a planning run in SAP ERP



Lesson: Methods for Executing a planning run


Explain the different techniques of executing planning runs in SAP ERP

Lesson: Settings in the Planning Run


Demonstrate the purpose of the settings in the planning run

Explain the purpose of the planning file and how it influences thesettings in the planning run.

Lesson: Introduction Net Requirements Calculation


Explain how the planning run works in detail.



Unit 3Effects Of Demand On MRP

Unit OverviewIn this unit we will discuss the effect of demand on the MRP run. We will begin witha discussion around the planning strategies for both make to stock and make to orderenvironments. We will also look at how the MRP run will affect the ATP check, how safetystock can be used to protect against variability in supply and demand, and how to handleplanned independent requirements that go into the past.

Lesson: Introduction To Demand Management


Explain where Demand Management is in the flow of the sup-ply chain planning process.

Demonstrate various functions in Demand Management

Lesson: Make to Stock Planning Strategies


Explain how Net Requirements planning differs from Planning with Final Assembly

Demonstrate how to plan at the sub assembly level

Explain the concepts of Consumption and Reduction

Identify several popular planning strategies and their characteristics.

Lesson: Effects Of Sales Order ATP On MRP


Understand the concept of the ATP check

Explain the fundamentals of the ATP check



Lesson: Make to Order Planning Strategies


Explain how make to order works in SAP ERP

Demonstrate how to plan at the sub assembly level while still maintainingmake to order at the finished good level

Identify several popular planning strategies and their characteristics

Lesson: Effects Of Safety Stock On MRP


Demonstrate how to activate safety stock

Demonstrate how to minimize the reaction to safety stock to avoid excess inventories.

Lesson: Planning Stock Transfers With MRP


Explain how to perform Cross location planning in SAP ERP

Demonstrate how cross location planning works in SAP ERP

Lesson: Dependent Requirements In MRP


Demonstrate how to terminate the creation of dependent requirements

Explain how to propagate make-to-order through the BOM by us-ing the individual/collective flag

Demonstrate how to group dependent demands within a periods

Identify how to manage bulk materials in the production.

Lesson: Adjusting Planned Independent Requirements


Demonstrate how to reorganize planned independent requirements

Demonstrate how to use a material specific adjustment period to be more precise



Unit 4Effects Of Stock On MRP

Unit OverviewIn this unit we will discuss how stock affects the MRP run, including quality inspection stock,blocked stock, stock in transit, and how QM lots can help plan the proper availability date ofmaterials. We will also discuss how to plan a storage location separately in the MRP run.

Lesson: Stock Types in Production Planning


Explain the concept of stock types in SAP ERP

Explain how in transit stock types are used in production planning

Explain how configuration of stock types can influence the planning run.

Lesson: Effects Of Quality Inspection On MRP


Demonstrate modeling Quality inspection stock and its effect on MRP

Demonstrate modeling the use of QM lots and its effect on production.

Lesson: Storage Locations In the MRP Run


Describe the storage location MRP procedure

Explain the different options of separate storage location MRP



Unit 5Effects Of Receipts In The Planning Run

Unit OverviewIn this unit we will discuss the effect of receipts on the MRP run. We will demonstrate howreceipts firmed manually, by the ATP check, capacity planning, planning time fence, andmanual firming fence interact with the MRP run. Discover how simulative MRP can helpyou plan a feasible schedule and how to handle active planned independent requirementsthat have gone into the past.

Lesson: Firming Receipts (Manual Changes)


Identify activities that cause firming

Demonstrate how manual firming works

Demonstrate how firmed receipts affect the net requirements calculationwhen using the Rescheduling Horizon functionality

Lesson: Capacity Planning In The Planned Order


Demonstrate the effects of capacity planning on planed orders and MRP

Lesson: ATP in the Planned order


Explain the purpose of Available to Promise (ATP) in planned orders.

Demonstrate how to execute (ATP)



Lesson: Firming Types And The Planning Time Fence


Demonstrate how planning time fences can benefit material planners

Describe the pros and cons of the different firming types

Apply manual time fences to planning situations

Recognize when and how to execute simulative MRP runs

Lesson: Fixed Receipts In MRP


Create fixed receipts

Demonstrate the effects of fixed receipts on net requirement calculations

Lesson: Roll Forward Period


Demonstrate how the Roll Forward period can increase the feasi-bility of your production plans



Unit 6Controlling Receipt Quantities

Unit OverviewIn this unit we will investigate the second step in the planning run, lot size, and how thatinfluences the quantity of the planned orders. In addition, we will look at how the coverageprofile can help you determine a variable quantity for safety stock. And finally we will look atthe effect scrap has on the planned order and operation quantities.

Lesson: Static Lot Sizing Procedures


Demonstrate how Lot size techniques influence the size of planned orders

Lesson: Periodic Lot Size Procedures


Demonstrate how Periodic Lot Size techniques work

Demonstrate how Planning Calendars can be utilized in MRP

Demonstrate Long Term lot sizes in MRP

Explain how to schedule replenishments when grouping requirements

Lesson: Additional Receipt Controls


Demonstrate how minimum and maximum limits impact MRP

Demonstrate how rounding values influence MRP

Demonstrate how rounding Profiles impact MRP

Demonstrate how Overlapping influence MRP

Examine how Safety time affects MRP results



Lesson: Dynamic Safety Stock


Demonstrate how the Coverage profile works

Lesson: Scrap In MRP


Explain how the assembly and component scrap in the material masterfield affect the production process

Explain how the component scrap and operation scrap percentage in thebill of material affect the production process

Explain how the scrap in the percentage field in the routing affectsthe production confirmation process



Unit 7Source Determination For New Receipts In

MRP

Unit OverviewIn this unit we will look at how the system determines the BOM and routing to use whenmore than one is available and valid. We will also take a detailed look at how basic andlead time scheduling work.

Lesson: Source Determination Overview


Explain what happens if multiple sources of supply exist.

Lesson: Master Data Selection during the Planning Run


Demonstrate how a bill of material will be chosen during the plan-ning run if multiple BOMs exist

Demonstrate how a task list will be chosen during the planningrun if multiple routings exist.

Demonstrate how a production version will be chosen during theplanning run if multiple versions exist.

Identify how configuration can influence master data determination

Lesson: Basic Dates Scheduling in the Planning Run


Demonstrate how Basic Scheduling works in the Planning run

Demonstrate how scheduling works for Externally Procured materials.



Lesson: Lead Time Scheduling in the Planning Run


Demonstrate how Lead Time Scheduling works in the Planning run

Demonstrate knowledge of configuring lead time scheduling.

Lesson: Quota Arrangements


Demonstrate how to split demand between multiple sources



Unit 8Additional Topics In MRP

Unit OverviewThis unit discuss how to plan the discontinuation of a material without leaving dead stock.We will also look at how long term planning can help us to run some test scenarios withoutaffecting the active pland.

Lesson: Discontinuation in Production Planning


Demonstrate how to phase in a product using Simple Discontinuation

Demonstrate how to phase in a product using Parallel Discontinuation

Lesson: Long-term planning requirements


Discuss the usage of long-term planning

Execute long-term planning



Unit 9Appendix (Self Study)

Unit Overview

Lesson: Continuous Input/Output


Demonstrate how to initiate a continuous output for a long production run

Demonstrate how to initiate continuous input for components that willnot be used discretely but continuously

Lesson: Cross Plant Planning in ECC


Explain the Special Procurement Withdrawal from another plant planning technique

Describe the special procurement technique Production in Alternative Plant

Lesson: Tcodes , Menu Paths, and BADIs


Application and Configuration menu paths


tocOverview Of Production Planning In ECCLesson: SAP ERP Supply Chain Planning Overview

MRP BasicsLesson: Concept of MRPLesson: MRP TypesLesson: Prerequisites for Running MRPLesson: Methods for Executing a planning runLesson: Settings in the Planning RunLesson: Introduction Net Requirements Calculation

Effects Of Demand On MRPLesson: Introduction To Demand ManagementLesson: Make to Stock Planning StrategiesLesson: Effects Of Sales Order ATP On MRPLesson: Make to Order Planning StrategiesLesson: Effects Of Safety Stock On MRPLesson: Planning Stock Transfers With MRPLesson: Dependent Requirements In MRPLesson: Adjusting Planned Independent Requirements

Effects Of Stock On MRPLesson: Stock Types in Production PlanningLesson: Effects Of Quality Inspection On MRPLesson: Storage Locations In the MRP Run

Effects Of Receipts In The Planning RunLesson: Firming Receipts (Manual Changes)Lesson: Capacity Planning In The Planned OrderLesson: ATP in the Planned orderLesson: Firming Types And The Planning Time FenceLesson: Fixed Receipts In MRPLesson: Roll Forward Period

Controlling Receipt QuantitiesLesson: Static Lot Sizing ProceduresLesson: Periodic Lot Size ProceduresLesson: Additional Receipt ControlsLesson: Dynamic Safety StockLesson: Scrap In MRP

Source Determination For New Receipts In MRPLesson: Source Determination OverviewLesson: Master Data Selection during the Planning RunLesson: Basic Dates Scheduling in the Planning RunLesson: Lead Time Scheduling in the Planning RunLesson: Quota Arrangements

Additional Topics In MRPLesson: Discontinuation in Production PlanningLesson: Long-term planning requirements

Appendix (Self Study)Lesson: Continuous Input/OutputLesson: Cross Plant Planning in ECCLesson: Tcodes , Menu Paths, and BADIs

scm241

Documents