AS-IS AT XYZPLT
- Presently XYZPLT is doing the Material Requirement Planning manually.
- They will collect the norms from Quality Management and the same will be circulated to Material management with order quantity and having time to time follow up with stores people as per planning.
- Planning procedures automatically generate order proposals to purchasing and to production. SAP planning procedures can be divided into Material Requirements Planning.
- The main function of Material Requirements Planning is to give the guarantee of material availability to the shop floor.
- The output of MRP may either be procured or produced.
- Planned Orders, Schedule lines and Purchase requisitions are generated.
- The production or procurement quantity shall be based on the lot sizing procedure specified for that material in the material master. In order to meet these requirements, MRP calculates procurement quantities and dates as well as plans the corresponding procurement elements.
- The procurement element in the planning run is the planned order or, for external procurement, the purchase requisition. Both the procurement elements are internal planning elements that can be changed, rescheduled or deleted at any time.
- If a material is produced in-house, the system also calculates the dependent requirements, that is, the quantity of components required to produce the finished product or the assembly, by exploding the BOM. If a material shortage exists, planned orders are created at every BOM level to cover proposed requirements.
- For external procurement, the system then converts these planned procurement elements into exact schedule lines set against schedule agreements. Materials that are procured externally trigger the purchasing procedure.
- The quantities made available by production or by external procurement are placed in stock and or managed by inventory management.
- MRP shall always be run at multi-level.
- This essentially means that the system explodes the Bill of Material for a material and generates dependent requirements for assemblies and components.
- These components are also planned to cover dependent requirements.
- If the components also have BOMs, the system explodes these BOMs also and plans the components.
- The system repeats this process until all BOM levels have been exploded.
- While BOM explosion is carried out, the system will check for the status and validity of the BOM and shall consider only the specific BOM with active status and which falls within the defined validity period.
- In specific cases where the dependent material schedule finish date falls later than the start date of its higher level material, the system will show exception messages at the MRP list of the dependent material The user shall manually reschedule the higher-level material production to suit the schedule of the dependent material. All materials will be grouped as per the department (as per MRP controller) using the specific material so as to enable each group to view stock situations of materials relevant to their department. However, MRP shall be run at the material level or Plant level only.
- The systems shall assign number ranges for planned orders at each plant. If Minimum and Maximum lot size specifies for material in the material master and the system will create planned order quantities within the above range. In case where the net requirement exceeds the maximum lot size, the system will create multiple planned orders.
- Processing key-NETCH
- Create purchase requisition-1,2,3
- Delivery schedules-Schedule lines
- Create MRP list-MRP list
- Planning mode-Normal mode
- Scheduling-Lead time scheduling.
List of business process procedures (BPP)
- MD01 – Total Planning Run (Plant Level)
- MD02 – MRP Run (Single Item Multi Level)
- MD03 - MRP Run (Single Item Single Level)
- MD20 – Create Planning file entry
- MD04 – Display / Stock requirements situation
- MD05 – Display MRP List
- MD16 – Collective display of planned orders
- MD14 – Individual conversion of planned orders
- MD15 – Collective conversion of planned orders
- MDUM – Convert Planned order into Purchase requisitions
- MS31 – Create Planning Scenario
- MS32 – Change Planning Scenario
- MS33 – Display Planning Scenario
- MS01 – Total Planning Run (For Long Term Planning)
- MS02 – MRP Run, Single Item Multi Level (For Long Term Planning)
- MS04 – Stock Requirement List (Long Term Planning)
