configuration - mrp

SAP MM/WMConfiguration Pack

MRP

Published by Team of SAPConsultants at SAPTOPJOBS

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Copyright 2006-07@SAPTOPJOBS

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INDEX1. INTRODUCTION:- 4

2. MRP RELATED CONFIGURATION SETTINGS 5

2.1 Define Number Ranges for Planning run..................................................................... 5

2.2 Plant parameters ............................................................................................................... 12

2.3 MRP Plant Parameter Number Ranges ................................................................... 15

2.4 MRP Plant Parameters Backorder processing checking rule.......................... 18

2.5 MRP Plant Parameter MRP Controller.................................................................... 20

2.6 MRP Plant Parameter Special Procurement Key ................................................ 25

2.7 MRP Plant Parameter Float (Schedule Margin Key)........................................... 30

2.8 MRP Plant Parameter Conversion ............................................................................ 33

2.9 MRP Plant Parameter Dependant Availability check rule ............................... 36

2.10 MRP-Plant parameter BOM/routing selection ..................................................... 38

2.11 MRP Plant Parameter detailed scheduling......................................................... 40

2.12 MRP Plant Parameter Rescheduling........................................................................ 48

2.13 MRP Plant Parameter Planning horizon................................................................. 52

2.14 MRP Plant parameter Available stock .................................................................... 54

2.15 Define Number Ranges for Manual Processing ....................................................... 56

3. MRP GROUP 64

3.1 Maintain MRP Group scheduling /doc.type ......................................................... 72

4. MRP TYPE 75

5. DEFINING PLANNING STRATEGY 80

5.1 Requirement Class (PP) ................................................................................................... 84

5.2 Requirement Type (PP).................................................................................................... 88

5.3 Requirement Class (Sales and Distribution) ............................................................ 92

5.4 Define Strategy Group..................................................................................................... 97

6. DEFINING SCOPE OF PLANNING 100

7. LOT SIZING PROCEDURE AND ROUNDING OFF PROFILE 104

8. ACTIVATING MRP AND PLANNING FILE ENTRIES 110

9. SUMMARY: - 113

1. Introduction:-

In this document we will learn more about ProductionPlanning and MRP. So stay tuned.

1. Planning Related configuration

The following three are the important planning methodsin SAP:

MRP

Consumption based planning

SOP & Flexible planning

Let us now try to understand MRP and ConsumptionBased Planning thoroughly.

In this step of MRP & Consumption Based Planning wewill have to configure the following related steps:

ü Configuration of Plant parameter

ü Configuration of MRP type

ü Configuration of Planning Strategy

ü Configuration of Requirement type

ü Configuration of Requirement Class

ü Configuration of Lot size procedure

2. MRP Related configuration settings

2.1 Define Number Ranges for Planning run

BACKGROUND

This configuration setting enables to define the number Rangeinterval for planned order, purchase requisition.

Number range interval has to be defined for both planning runand for Manual process.

MRP run will consider the number range interval for planningrun and in turn it is assigned in the plant parameter.

Manual number range interval will be used when creating theplanned order or purchase requisition manually.

This will help to assign the different number range series fordifferent document type.

SCENARIO

Define the number range interval.

INSTRUCTION

Follow the Menu Path: IMGàProductionàMaterialRequirement Planning àNumber Ranges à Define NumberRanges for Planning run

Click

Click in the Planned Orders row

Click to add new number range interval

Note: -

this is to display the interval

this is to change the current number status

Click To add the new number range.

Leave the check box Ext in the right side blank to indicate thisas internal number range. Then this can be referred in theMRP plant parameter to define this number range interval.

Click

Click

Click

Click two times to reach the number range intervalmaintenance screen

Click in the purch. requisitions row.

Repeat the above steps to create new number range interval.

Impact of this configuration in Master Data /Transaction

Number range defined for planning process will appear toselect in the MRP Plant parameter maintenance screen asshown below.

While creating the Planned through MRP run, the appropriatenumber will be assigned to the planned order.

2.2 Plant parameters

BACKGROUND

This configuration setting enables to configure the plantparameter for Materials Requirement Planning (MRP).

MRP will ensure

• Availability of right material at right time.

• Calculate the capacity requirements.

Following MRP related parameters must be configured toperform MRP.

• Frequency of planning,

• How to explode the BOM,

• Order type to be used when converting planned order

• Planning horizon

• Scheduling

Apart from above there are more parameters to be configured,which we shall discuss.

When creating plant by copying from one plant, many plantparameters are copied, however it is required to maintainplant specific parameters.

SCENARIO

Maintain MRP plant parameter for the plant IND6.

INSTRUCTIONS

Follow the Menu Path: IMGàProductionàMaterialRequirement Planning àPlant parametersà carryout over allmaintenance of plant parameters

Click

Click

Enter Plant IND6

Click

By default while copying from one plant, many values arecopied.

Status maintained indicates that the values are maintainedand the status Initial denotes that no value is maintained.

Let’s discuss the important tab screens one by one.

2.3 MRP Plant Parameter Number Ranges

BACKGROUND

This configuration enables to maintain number ranges forMRP related documents.

MRP related document subject to number range are

ü Planned order generated through MRP run

ü Dependent Requirements

ü Purchase Requisitions

ü Simulated Requirements

SCENARIO

Define number range for plant IND6

INSTRUCTIONS


Click

Click

Enter Plant IND6

Click

Click

Click to maintain number range for plannedorder created by MRP run.

Select the appropriate number range for planned order.

Click two times to reach Over all Plant parametermaintenance screen.


MRP generated planned orders will have numbers fromnumber range 01.

2.4 MRP Plant Parameters Backorder processingchecking rule

BACKGROUND

This configuration setting enables to define the checking rulefor back order processing.

Backorder processing is the process of allocating anddeallocating the product from one customer to another andchanging the delivery dates according to the availability.

SCENARIO

Define checking rule for backorder processing for plant IND6

INSTRUCTION


Click

Click

Enter Plant IND6

Click

Click

Checking rule maintained for Back Order processing. No needto change.

Click to reach Over all Plant parameter maintenancescreen.


While performing the backorder processing, checking rule BOwill be used.

2.5 MRP Plant Parameter MRP Controller

BACKGROUND

This configuration setting enables to configure MRP controllerspecific to a plant.

MRP controller will

• Material availability for production.

• Confirm the purchase request generated by MRP run.

• Schedule the production.

• Initiate action for shortage items and avoid shortages.

SCENARIO

Maintain MRP controller for the plant IND6.

INSTRUCTIONS

Follow the Menu Path: IMGàProductionàMaterialRequirement Planning àPlant parameters à carryout over allmaintenance of plant parameters

Click

Click

Enter Plant IND6

Click

Click

Click

To create the new MRP controller,

Click

Update the Following fieldsField DescriptionPlant Enter the plant number. E.g.

IND6MRP controller Enter the MRP controller. E.g.

RMPMRP controller Name Name of the MRP controller.

E.g. Raw Mat. planner

Click Save .

Click three times to reach Over all Plant parametermaintenance screen.


MRP controller has to be maintained in the material masterMRP1 view.

2.6 MRP Plant Parameter Special Procurement Key

BACKGROUND

This configuration setting enables to define the specialprocurement key.

Special procurement key used to

• Transfer requirements from one plant to another plant.

• Make material issue from another plant

• Create the direct process order in another plant or in ownplant

• Define the phantom item. I.e. item not exist physicallybut planning will be done.

• To calculate standard cost estimate in one plant referringthe BOM and Task list data from another plant.

SCENARIO

Define the special procurement key for plant IND6

INSTRUCTIONS


Click

Click

Enter Plant IND6

Click

Click

Click

To crate new entries follow the below steps.

Click


IND6Special procurement type Enter the special 2 digit

procurement type key, alphanumeric field. E.g. 40

Description Description of this key. E.g.procure from Plant 1100.

Procurement Type Indicating what type ofprocurement, whether internalor external. Enter F to denoteexternal procurement.

Special procurement Indicating what type of

procurement it is. Whetherproduced in other plant,procured outside, stocktransfer, sub-contracting.Enter value U for stocktransfer

Plant Enter the plant from whichthe material is going to bestock transferred. E.g.1100

Phantom item To indicate this is a phantomitem.

Direct production If the item is directly producedfor superior item as acollective order. The item isnot put into stock, directlyconsumed by higher levelmaterial.

Direct procurement Indicates that the items isdirectly procured andconsumed. Item will not bestocked, directly consumed tothe order.

With drawn from alternateplant

Controls whether the materialcan be procured as acomponent using withdrawalfrom an alternative plant. Thismeans, the reservation occursat an alternative plant ifdependent requirements exist.

Issuing Plant If the check box of with drawnfrom alternate plant isselected, it is mandatory tomention issuing plant.

Click Save .

Click two times to reach the over all plant parametermaintenance screen.


When the material is to be stock transferred from anotherplant, maintain the special procurement key in MRP2 view ofthe material master.

In this configuration example, if the special procurement key40 is maintained, stock transfer PR will be generatedindicating the supplying plant as 1100.

2.7 MRP Plant Parameter Float (Schedule Margin Key)

BACKGROUND

This configuration setting enables to define the float forproduction.

It is used to schedule the production or process order. Float isthe cushioning durations in days before and after the actualproduction date. It is also called as schedule margin key.

Cushioning period covers the days

• Before production

• After production

In order to take care of any unforeseen situation duringmanufacturing and to make the committed date of productionsafer, the extra days are defined here.

These extra days defined here will be added in the start date ofproduction and in the end date of production.

SCENARIO

Create schedule margin key for plant IND6

INSTRUCTIONS


Click

Click

Enter Plant IND6

Click

Click

Click


IND6

SMK – Schedule Margin Key Key identify the float periods.E.g. 555

Opening Period Number of working dayssubtracted from the orderstart date to find the creationdate.This is an extra time to MRPcontroller.It is used in backwardscheduling only.

Float Before production Number of working daysbetween the order start dateand the scheduled start date;used as a float in productionScheduling.

Float after production Number of working days usedas a float for schedulingbetween the order due dateand the scheduled finish date.

The safety margin afterproduction is used forcompensating malfunctionswithin the order production.

Click Save .

Click two times to reach the over all plant parametermaintenance screen.


Schedule Margin Key has to be maintained in the materialmaster MRP1 view.

2.8 MRP Plant Parameter Conversion

BACKGROUND

This configuration setting enables to define the order typeswhile converting the planned order in to process order orproduction order.

Order type is a mandatory entry while creating the processorder or production order. Order type controls the creation oforder and responsible for entire production or process orderprocessing.

MRP run will create the planned order for the net requiredquantity after considering the stocks and receipts. Plannedorder will be converted to process order if it is produced in-house or into the purchase request if it is procured fromoutside.

SCENARIO

Maintain the conversion parameter to convert planned orderinto the production order or into the process order.

INSTRUCTIONS


Click

Click

Enter Plant IND6

Click

Click

Click

By default SAP standard production order type PP01 andprocess order type PI01 will appear. It can be changed to therequired order types.

- Maintain the production order type toconvert planned order into production order

- Maintain process order type to convertplanned order into process order.

Click Save .

Click till the over all plant parameter maintenance screen isreached.


When converting the planned order into production order orprocess order, order will be determined automatically by thesystem.

2.9 MRP Plant Parameter Dependant Availabilitycheck rule

BACKGROUND

This configuration setting enables to define the availabilitychecking rule for dependant in MRP run.

Combination of Availability check rule and availability checkmaintained in the material master, decides the type of stockavailability checking to be performed for each item.

SCENARIO

Define checking rule for plant IND6 plant parameter.

INSTRUCTION


Click

Click

Enter Plant IND6

Click

Click

Maintain Checking Rule PP.


While performing the availability check in MRP for dependantrequirements, system will take the checking rule PP.

2.10 MRP-Plant parameter BOM/routing selection

BACKGROUND

This configuration setting enables to define the BOM andRouting selection for MRP run.

There may be more than one BOM and Routing. Selectionright BOM and Routing can be defined in this configurationsetting.

It will be selected automatically during MRP run based on theselection id defined here.

SCENARIO

Define BOM and Routing selection for plant IND6 for MRP run.

INSTRUCTION


Click

Click

Enter Plant IND6

Click

Click

Selection id for BOM and Routing maintained. If requiredchange it.

Note:- Selection id for routing can be maintained in schedulingparameter also.


BOM and Routing with selection id 01 will be traced duringthe MRP run in the plan IND6.

2.11 MRP Plant Parameter detailed scheduling

BACKGROUND

This configuration setting enables to define the scheduling tobe done during MRP run.

Scheduling determines the production order or process orderstart date and end date, operation start date and end date.

Routing / master recipe is the basis for scheduling.

SCENARIO

Define scheduling parameter for plant IND6 for MRP run.

INSTRUCTION


Click

Click

Enter Plant IND6

Click

Click

Standard entry maintained may be sufficient. Importantparameter in this setting is discussed below.

Select the first line by clicking the grey box in the left

Click

Field DescriptionPlant Enter the plant number. E.g.

IND6Order type Production order type to

which this setting need to be

applicable. Enter * to make itapplicable to all order type inIND6 plant.

Production Scheduler Production scheduler to whichthis settings is applicable.Enter * to make it applicableto all production scheduler inIND6 plant.

Scheduling Horizon The scheduling horizon is atime period that is in workingdays. If a planned order basicstart date falls in this date,then lead time scheduling iscarried out.

Selection ID Selection criteria to select therouting. Enter selection id E.g.01.

Scheduling Ensure this tick mark as itwill schedule the operationstart and end date in plannedorder

Generate CapacityRequirements

Ensure this tick mark as itwill calculate the capacityrequirement using therouting.

This is for

Type of scheduling. SelectDetailed scheduling.

This is for **

Determines how the basicdates / Dependentrequirement dates areadjusted during the lead timescheduling and after thescheduling.

In backward schedulingsystem adjust the basic startdate.

In forward scheduling systemadjust the basic finish date...more explanation givenbelow (**)

This is for ***

You use this indicator todefine how dependentrequirements dates are tobe readjusted when the basicdates in the planned order areadjusted. Thisis then used for dispatchingthe planned orders in thegraphic planningtable...more explanation givenbelow (***)

Scheduling type Type of scheduling. WhetherBackward, forward or onlycapacity requirements.Select backward toautomatically determine thestart date.Leave the entries as it is.

** Adjust Dates:-

In backward scheduling the system adjusts the basic startdate if necessary, in the case of forward scheduling the basicfinish date.

The basic finish date is not adjusted in planned orders.

There are the following possibilities:

• The basic dates are adjusted and thedependent requirements are scheduled forthe start dates of the relevant operations.

• The basic dates are not adjusted and thedependent requirements are scheduled forthe start dates of the relevant operations.

• The basic dates are adjusted and thedependent requirements are scheduled forthe order basic start date.

• The basic dates are not adjusted and thedependent requirements are scheduled forthe order basic start date.

How the system adjusts the basic start date in backwardscheduling is described below.

During scheduling, it starts at the basic finish date andredetermines the production dates and the basic start date.

If the new basic start date differs from the old date in theorder, the system copies the new basic start date to the order.

If the new production start date is before the old basic startdate in the order, the system reduces the lead time - if youhave set reduction up- before it adjusts the basic start date.

It tries to reduce the lead time sufficiently so that theproduction dates are within the old order basic dates.

In the case of forward planning, the system proceescorrespondingly - apart from planned orders.

*** Capacity Scheduling

• The basic dates are always adjusted and thedependent requirements dates of thecomponents are always set to the start datesof the operations.

• The basic dates are always adjusted and thedependent requirements dates of thecomponents are set to the order start date ofthe planned order.

• The basic dates are only adjusted if a delayoccurs (for example, if the dates gave to bepostponed meaning that the delivery date beadhered to), and the dependent requirementsdates of the components are set to the startdates of the operations.

• The basic dates are only adjusted if a delayoccurs and the dependent requirementsdates of the components are set to the orderstart dates of the planned order.

When dispatching the planned order in the planning table, theorder finish date is also adjusted.

Click Save .

Double click

Maintain the similar settings to Long Term Planning for Plant,production scheduler and Scenario combination.

Note:- Please create your own planning scenario in LTPprocess and maintain that scenario here. Generic entry * maynot be accepted in Scenario.

Click Save .

Click till the over all MRP plant parameter maintenancescreen is reached.


Scheduling of planned order will be done according to thescheduling parameter defined here.

Reading of master data routing and scheduling of operationswill be done.

2.12 MRP Plant Parameter Rescheduling

BACKGROUND

This configuration setting enables to define the rescheduling.

Rescheduling will be performed to the already scheduledorders during the subsequent MRP run

Rescheduling is essential to adjust the production datesalready determined according to the demand situation at thetime of MRP run.

SCENARIO

Define Rescheduling parameter for Plant IND6 for MRP run.

INSTRUCTION


Click

Click

Enter Plant IND6

Click

Click

Update the Following fieldsField DescriptionRescheduling Horizon It is the total number of

working days during whichthe procurement proposalsare rescheduled.Starting from the end of thereplenishment lead time (thesystem calculates the end ofthe replenishment lead timeby the planning date +number of days for thereplenishment lead time),in which the system checks inthe net requirementscalculation whetherfirmed or fixed receiptelements (purchase orders,production orders,firmed planned orders, and soon) should be rescheduled in.Therescheduling horizon iscalculated in workdays.

..more explanation given

belowTolerance value forward The system compares this

value with the number of dayswhich resultsfrom calculating the differencebetween the requirementsdate and thedelivery/order finish date.

If the difference is greaterthan the comparison value,the systemprovides the receipt elementsin question with an exceptionmessage anda rescheduling proposal thatis based on the requirementsdate.

Tolerance value backward The system compares thisvalue with the number of dayswhich resultsfrom calculating the differencebetween the delivery/orderfinish dateand the requirements date.

If the difference is greaterthan the comparison value,the systemprovides the receipt elementsin question with an exceptionmessage anda rescheduling proposal thatis based on the requirementsdate.

Use of rescheduling Horizon:-

In this period, rescheduling proposals are created by thesystem for firmed or fixed receipt elements if this receiptelement can cover the requirement and if the tolerance valuesfor rescheduling in have been exceeded.

In this case, no new order proposal is created - instead thesystem includes this fixed receipt in the net requirementscalculation with the rescheduled date.

Firmed elements

List of elements can be considered for rescheduling. If it is tobe considered tick the check box.


Rescheduling of order will be performed during MRP runaccording to the configuration settings maintained here.

2.13 MRP Plant Parameter Planning horizon

BACKGROUND

This configuration setting enables to define number of days towhich the planning is to be performed, is called planninghorizon.

In other words, planning horizon is the duration in days towhich the MRP run to consider the requirements.

This will be calculated based on the maximum lead timerequired to procure components.

SCENARIO

Define the planning horizon to the plant IND6 for MRP run.

INSTRUCTION


Click

Click

Enter Plant IND6

Click

Click

Maintain the number of days in planning horizon column.

Planning horizon is the number of working days to whichplanning is done.

It can be equal to the longest lead time of any component orassembly required to make the final product.


During MRP run, planning will be done to the next 100 daysrequirements.

2.14 MRP Plant parameter Available stock

BACKGROUND

This configuration setting enables to define the availablestocks to be considered during the MRP run.

MRP run will consider the free stock and expected receipts bydefault. In addition, following stocks can be considered duringMRP run.

Stock in transfer

Restricted stock

Blocked stock

SCENARIO

Define the available stock for Plant IND6 for MRP run.

INSTRUCTION


Click

Click

Enter Plant IND6

Click

Click

Stock in transfer – tick the check box if that stock is to beconsidered during MRP

Blocked stock – tick the check box if that stock is to beconsidered during MRP

Restricted-use stock – tick the check box if that stock is to beconsidered during MRP

Click

Click till the main IMG screen is reached.


During MRP run stock in transfer and restricted use stock willbe considered in plant IND6.

2.15 Define Number Ranges for Manual Processing

BACKGROUND

This configuration setting enables to define the number Rangeinterval for planned order, purchase requisition.

Number range interval has to be defined for both planning runand for Manual process.

Manual number range interval will be used when creating theplanned order or purchase requisition manually.

This will help to assign the different number range series fordifferent document type.

SCENARIO

Define the number range interval for manual processing.

INSTRUCTION

Follow the Menu Path: IMGàProductionàMaterialRequirement Planning àNumber Ranges à Define NumberRanges for Manual processing

Click

Click in the Pld orders row to create newintervals.

Click to add new number range interval

Note: -

This is to display the interval

This is to change the current number status

Click To add the new number range.

Tick the check box Ext in the right side to indicate this asExternal number range. Then this can be referred in theManual processing to define this number range interval.

Click

Click

Click

Click two times to reach the number range intervalmaintenance screen

Click in the Pld orders

Maintain the entry as explained below.

Field name Field description and valueObject Object name to indicate

whether planned order orpurchase requisition. E.g.Enter 1 to indicate as Plannedorder.

Order type Indicating the order type towhich the planned order is tobe referred. E.g. VP to indicatethe planned orders of PlannedIndependent Requirements

Internal number Range Number range to be referredwhen creating the plannedorder by automatic process.E.g. MRP run process.

External Number range Number range to be referredwhen creating the plannedorder manually.

Number range for reservation Maintain the number range

and dependent requirement for reservations and thedependent requirementsagainst this planned ordertype.

Click

Click two times

Click in the purch. requisitions


Click in the purch. Requisitions


Click


Number range defined for manual pocess will be selectedautomatically while manually creating the planned order orpurchase requisitions.

3. MRP Group

BACKGROUND

This configuration setting enables to define the MRP group.

MRP group contains essential master date related data andconfiguration related data mainly related to MRP run.

Important data a MRP group contains are

MRP Strategy

Consumption mode

Planning horizon

Planning time intervals

Conversion to order type

MRP group will be assigned to a material master and thematerial master will perform as per the controls in the MRPgroup.

SCENARIO

Create MRP group and Maintain parameters for plant IND6.

INSTRUCTIONS

Follow the Menu Path: IMGàProductionàMaterialRequirement Planning àMRP Groupà carryout over allmaintenance of MRP group

Click

Enter Plant E.g IND6

Click

Enter MRP group E.g.RMG1

Enter Description E.g. Raw material MRP group

Click

Click

Click

Click

Status indicates no detail inside the MRP group ismaintained.

Most of the details which are required to be maintained hereare already discussed in previous MRP plant parametermaintenance topic.

Here the maintenance of value is only discussed.

To maintain the value click the respective tab screen and enterthe value as per the guide line given below in the table.

Note: - maintenance of value screen will be similar to that ofMRP plant parameter, hence not repeated here.

Field Description

Click(Master Data information)

Strategy in the materialmaster will decide the type ofplanning to be performed to amaterial.

Example: -

Strategy - 10 to plan withoutconsidering the Salesrequirements.

Strategy - 40 to plan withconsidering the salesrequirements.

Strategy - 11 to plan withoutconsidering the salesrequirements and also withoutconsidering the existing stock.

MRP Strategy value applicableto this MRP group. E.g. 40

Click and click till MRP group maintenance main screenis reached.Click Planned Independent

Requirement consumptionmode. Whether backward orforward or combination ofboth.E.g. Enter 2 – Backward and

forward.Enter the number of days inbackward and forwardconsumption period toconsume from PIR. E.g. enter31 days in backward andforward consumption period.

Click and click till MRP group maintenance main screenis reached.Click(IMG related)

Refer below * in the topic3.1.

Click and click till MRP group maintenance main screenis reached.Click(IMG information)

Discussed above in MRP plantparameter





Click and click till MRP group maintenance main screenis reached.Max MRP interval (IMGinformation)

Irrespective of MRP typemaster data and changesmade to the system, MRP canbe run for an item by thissetting. E.g. Enter 90. So thatonce in 90 days MRP run willhappen to this materialirrespective of any othersettings.

Click and click till MRP group maintenance main screenis reached.

MRP group once maintained will look like as shown below.


MRP group RMG1 has to be maintained in material master ofmaterial type Raw Material to have the effect of this MRPgroup configuration setting.

3.1 Maintain MRP Group scheduling /doc.type

* Scheduling / Document type External procurement(IMG information)

Background

This configuration setting enables to define the document typefor purchase requisition.

Every purchase requisition will have a document type in SAP.

Purchase requisition will be generated for the netrequirements of materials.

Standard SAP configuration refers the Purchase Requisitiondocument type NB. It might be required to identify thedifferent document type for different material. I.e. Documenttype ZNB for standard Raw material procurement anddocument type SCNB for subcontract material and TRNB forstock transfer material. This can be mapped through MRPgroup.

SCENARIO

It is required to have different PR document type for Regularmaterial and stock transfer material.

INSTRUCTIONS

Follow the Menu Path: IMGàProductionàMaterialRequirement Planningà MRP Groupà carryout over allmaintenance of MRP group

Click

Enter Plant – E.g IND6

Click

Enter MRP group E.g. RMG1

Click

Click

Update the Following fieldsField DescriptionScheduling inforecord/agreement (Check box)(IMG related setting)

Determines whether theplanned delivery timespecified in the purchasingInfo record is used forscheduling in the planningrun. NOT TO TICK

Standard purchase order Identifier allowing adistinction to be madebetween various kinds ofpurchase requisitions in theSAP system. E.g. Enter NB

Document type forSubcontract

PR document type for SC PR.E.g. Enter NB

Document type for stocktransfer

PR document type for Stocktransfer PR. E.g. Enter NB

Note: - If it is required to create different document type ofPurchase Requisition to the different processes, the respectivedocument has to be mentioned here.

In this example, only one document NB for all three processesis indicated.


When maintaining the MRP group RMG1 to the material,Purchase Request of appropriate type will be generated.

4. MRP type

BACKGROUND

This configuration setting enables to define the MRP type.

MRP type determines the type of planning to be employed to amaterial.

Important types of Planning are

Material Requirement Planning (MRP)

Consumption Based Planning

Forecast based planning

Parameter which are defined in the MRP types are

• MRP procedure or MPS procedure• Basis for planning• Reorder point and consumption method• Lot size procedure• Forecast• Not to plan the material at all

Above types of planning are governed through the MRP type.

SCENARIO

Create a MRP type ZD with forecast and to plan regularly.

INSTRUCTIONS

Follow the Menu Path: IMGàProductionàMaterialRequirement Planningà Master dataà check MRP type

Click

Click

Update the Following fieldsField DescriptionMRP Type Key defining the MRP type.

E.g. Enter ZD and maintaindescription as MRP +forecast& Regular plan

MRP Procedure SAP internally identified keyto do the planning according

to the internal control. E.g.Enter D for MRP

Firming type Confirming the orderproposal. Leave it blank here.

Roll forward To delete or not the oldplanned orders. Leave it blank

Plan Regularly (Check box) Planning takes place only ifany change happened to thematerial, other wise it is notplanned, if this check box isticked, material will beplanned in every MRPirrespective of any changeshappening to it.E.g. Tick this check box

Forecast Indicator To consider the forecastrequirement. E.g. Enter * tomake it as optional forecast.Forecast requirementconsideration becomeoptional.

Consumption Indicatorforecast

Defines, which consumptionare relevant for forecast. E.g.Enter G to indicate Totalconsumption

MRP indicator forecast To define whether the forecastrequirements are to beconsidered in MRP. E.g. EnterG to consider totalrequirement in MRP run.

Reduce forecast Indicates how the forecastrequirements are to bereduced. E.g. Leave blank toreduce forecast value byconsumption

Safety stock (Check box) To calculate safety stockautomatically, tick this checkbox. E.g. Leave it blank

Reorder Point To calculate Reorder point

automatically, tick this checkbox. E.g. Leave it blank

Click Save .


Assign this MRP type ZD to the material master MRP1 view.

This material will be planned regularly irrespective anychanges happening to this material.

If is required Forecast can be run and those forecastrequirements will be considered in MRP.

5. Defining Planning Strategy

BACKGROUND

This configuration setting enables to define the planningstrategy.

Planning strategy decides how the planning is to be carriedout. Whether to plan as

ü Make to stock

ü Make to Order

ü Combination of above both

ü Planning only the components of final products

Planning strategy also governs the consumption of ware housestock and independent requirements.

It is the combination of Customer Independent requirementand Production Independent requirement.

Planning strategy establishes relation between PP module andSD module to transfer the requirements.

SCENARIO

Most of the cases, it is sufficient to use the SAP standardPlanning strategy. Detailed settings about planning strategyare discussed.

INSTRUCTIONS

Follow the Menu Path: IMGàProductionàProductionPlanningà Demand managementà Planned IndependentRequirements à Planning strategy à Define strategy

Click

Click (only to create new entries)

Let’s discuss the strategy number 40

Select the line 40 by clicking the grey box in the left

Click

Update the Following fieldsField DescriptionStrategy Key identifying the Strategy.

E.g. Enter 40Description Description of Strategy. E.g

planning with final assemblyRequirement type forIndependent requirement

It is the key referring toRequirement class. Certain

controls related to PP moduleare built with requirementclass. E.g. VSF contains theProduction requirement class101.

Requirement type of customerrequirement

It is key referring torequirement class. Certaincontrol related to PP/SDmodule integration is builtwith this requirement class.E.g. KSV contains thecustomer requirement class050.

Click

Click Save .


Planning strategy is assigned to the strategy group.

Strategy group is maintained in the material master.

Material will be planned according to the planning strategy.

I.e. planning as per

ü Make To Stock

ü Make To Order

ü Combination of Both above

ü Planning only the components

5.1 Requirement Class (PP)

BACKGROUND

This configuration setting enables to define the requirementclass.

Requirement class defines

• Planning mode

• Consumption of Planning

• Requirements to be considered

There are two requirement classes defined.

• One for Independent Requirement class (PP Module)

• Another for Customer Requirement class (SD Module)

Requirement class will be assigned to requirement type.

SCENARIO

Most of the cases, it is sufficient to use the SAP standardRequirement class. A detailed setting about standardrequirement class is discussed.

INSTRUCTIONS

Follow the Menu Path: IMGàProductionàProductionPlanningà Demand managementà Planned Independent

Requirementà Requirement type/Requirement classàMaintain Requirement classes

Click

Click (to create new entries)

Update the Following fieldsField DescriptionRequirement class Key identifying the

requirement class. E.g. 101Description Description of Requirement

class. E.g. planning with finalassembly

Planning Indicator PI Mode of planning forIndependent requirement. Toplan considering the stock(Net requirement) or to planwithout considering the stock(Gross requirement) orPlanning only components(Individual planning) E.g. 1 –Net requirement planning

Consumption Indicator Indicates how the customer

requirement consumes thePlanned Independentrequirement. E.g. 1. Consumeplanning with final assembly.Planned Independentrequirements are reducedalong with the customerrequirement.

Configuration allowed Leave it blankConsumption of configuration Leave it blankRequirement reductionindicator

Leave it blank

Requirement Category To specify whether it isplanned Independentrequirement or customerindependent requirement. E.g.1. Planned Independentrequirement

Click Save .


This Independent requirement class (from PP module) has tobe attached with Requirement type.

Requirement type will be assigned with planning strategy.

(Recollect the planning strategy configuration setting to havebetter understanding.)

Below screen shot shows the planning strategy screen shot foryour ready reference.

Requirement class 101 attached to the requirement type VSF.We have discussed the configuration of requirement class 101.

5.2 Requirement Type (PP)

BACKGROUND

This configuration setting enables to define the requirementtype.

Requirement type is the simple text entry configuration to mapwith the requirement class.

Requirement type will be assigned to the planning strategy.

SCENARIO

Most of the cases, it is sufficient to use the SAP standardRequirement type. A detailed setting about standardrequirement class is discussed.

INSTRUCTIONS

Follow the Menu Path: IMGàProductionàProductionPlanningà Demand managementà Planned IndependentRequirementà Requirement type/Requirement classà Definerequirement type and allocate requirement class.

Click


Enter requirement type. Key to identify the requirement type.E.g. ZSF

Description of requirement type

Enter the Requirement class. E.g. enter the requirement classcreated already. 902

Note: - Above entry is shown for example. You have to assignyour own requirement type with requirement class.

Click Save .


This requirement will be mentioned in the planning strategy.

Planning strategy screen shot is given below for your readyreference.

Requirement class VSF contains the Requirement type 101.

We have discussed the mapping of requirement type withrequirement class in this configuration setting.

5.3 Requirement Class (Sales and Distribution)

BACKGROUND

This configuration setting enables to define the requirementclass from Sales and Distribution (SD) module point of view.

There are two requirement class defined.

• One for Independent Requirement class (PP Module)

• Another for Customer Requirement class (SD Module)

This requirement class (from SD) defines

• Availability check

• Transfer requirement to production

• MRP related

• Configuration related to variant configuration

• Costing related controls like costing method, costingvariant etc

SCENARIO

Most of the cases, it is sufficient to use the SAP standardRequirement class. A detailed setting about standardrequirement class is discussed.

INSTRUCTIONS

Follow the Menu Path: IMGàSales and Distribution àBasicfunctionà Availability check and Transfer of requirementsàTransfer of requirementsà Define Requirement classes

Click


Availability Check box confirms the Availability check

Req.Transfer check box confirms that the requirements aretransferred to PP module.

Allocation Indicator , specifies how the Planned Independentrequirements are consumed.

Similar to the production consumption indicator, maintain 1consume with final assembly.

No MRP selection box, leave it blank, then the requirementswill be planned. Other option in this box is

Above explained settings are very important from PP and SDpoint of view for strategy 40. I.e. make to stock with finalassembly.


This requirement class is linked with the Customerrequirement type. Steps to create the link between thisrequirement class and Customer requirement type is same asexplained.

The combination of this requirement type and requirementclass may have to be assigned to the planning strategy. Pleaserefer “Define planning strategy screenshot” shown below foryour ready reference.

We have discussed the important configuration settingsrelated to requirement class 050 which will be assigned to therequirement type KSV.

5.4 Define Strategy Group

BACKGROUND

This configuration setting enables to define the strategy group.

Strategy group controls the type of planning to be performed tothe material.

Available type of planning are

ü Make to stock

ü Make to Order

ü Combination of above both

ü Planning only the components of final products

Planning strategy group will be assigned to the materialmaster MRP3 view.

SCENARIO

Most of the cases, it is sufficient to use the SAP standardPlanning strategy group. A detailed setting about planningstrategy group is discussed.

INSTRUCTIONS

Follow the Menu Path: IMGàProductionàProductionPlanningà Demand managementà Planned IndependentRequirements à Planning strategy à Define strategy group.

Click


Update the Following fieldsField DescriptionStrategy Group Key identifying the strategy

group class. E.g. 40Description Description of strategy group.

E.g. planning with finalassembly

Main Planning strategy Planning strategy key created.E.g. 40


Strategy group created (E.g. 40) has to be assigned in thematerial master.

Planning will be performed considering both sales order andIndependent requirement to that material.

6. Defining scope of planning

BACKGROUND

This configuration setting enables to define the scope ofplanning to a particular plant.

Planning scope is used to run Material Requirement Planningin the background.

Scope of planning defines the plant sequence at which MRPrun is to be carried in each plant. This is more suitable whenMRP run is to be scheduled covering more than one plant.

SCENARIO

Define scope of planning to run MRP in background coveringplants IND6 and 9100.

INSTRUCTIONS

Follow the Menu Path: IMGàProductionàMaterialRequirement Planningà Planningà Define scope of Planningfor Total Planning.

Click

Click

Update the Following fieldsField DescriptionPlanning Scope Key identifying the planning

scope. E.g. INDDescription Description of Planning scope

E.g MRP IND6 & 1100

Click

Select line INDA

Double click

Click

Update the Following fieldsField DescriptionCntr (counter number) Serial Number. E.g. Enter 1

Plant Plant number to which MRPhas to run first. E.g. INDA

Repeat the above till all required plant entries are madeaccording to the sequence.


While scheduling a background job or Running total MRPusing transaction code MD01, scope of planning has to bementioned.

Press F4 in Scope of planning field to select the availableentry.

MRP run will be carried out first in IND6 plant and then in1100 plant.

7. Lot sizing procedure and rounding off profile

BACKGROUND

This configuration setting enables to define the lot sizingprocedure.

Lot sizing procedure helps to derive the requirement periodand to cumulate the requirements.

Material Requirement Planning calculates the requirement ofright material at right time. It is required to cumulate therequirement together on weekly, monthly or biweekly etc.

Lot sizing procedure helps to derive the requirement at the

• Beginning of the period

• End of the period

• Exact date on which it is required

• Cumulate the requirements

• Not to cumulate the requirements

SCENARIO

Define the lot size procedure to cumulate the requirementmonthly and to get the requirement date as beginning of themonth.

25 days should be treated as one month.

INSTRUCTIONS

Follow the Menu Path: IMGàProductionàMaterialRequirement Planningà Planningà Lot size calculation àCheck lot sizing procedure

Click

Click

Click

Update the Following fieldsField DescriptionLot size Key identifying the Lot size.

E.g. ZBDescription Description of Lot size E.g. 25

Days Lot size Del.date = Reqdate

Lot size procedure Defining the lot sizingprocedure as periodic lot size.E.g. Enter P

Number of Period The requirements from thisnumber of periods aregrouped together into

one lot size. E.g. Enter 25 toindicate to group therequirement of 25 days.

Lot size Indicator Determines how the lot size iscalculated for a certain lot-sizing procedure duringmaterial requirementsplanning. E.g. Enter M toindicate Monthly.

Scheduling Specifying the delivery datewith respect to requirementdate.E.g. Leave blank to mentionthe delivery date to becalculated as the date onwhich it is required.

If you enter 1 – the deliverydate will be mentioned as thebeginning of the period alwaysirrespective of the requirementday.

Note: - Lot size for the long time period is to be used for periodafter the short term period. E.g. In this case, after 25 days it istreated as long term period. If it is required to cumulate therequirements differently after 25 days, maintain the settings inlong term period area.

Click Save .


Lot sizing procedure has to be maintained in the materialmaster MRP1 view.

Requirement date and the grouping of requirements will beperformed according to the configuration setting maintainedhere.

8. Activating MRP and Planning file entries

BACKGROUND

This configuration setting enables to activate or deactivate theMRP single item multilevel.

MRP single item multi level is used to run MRP for a specificmaterial at any given point of time.

Single item multi level MRP run can be done to check theplanning result of a specific material after changing the plan.

Planning file is the internal file in SAP. Items which undergoany change will be maintained in the planning file internallyby the system automatically.

Items maintained in the planning file will be considered in thenext net change MRP run.

SCENARIO

Activate MRP in the Plant IND6.

INSTRUCTIONS

Follow the Menu Path: IMGàProductionàMaterialRequirement Planningà Planning file entriesà Activate MRPand setup planning file entries

Click

Click

Update the Following fieldsField DescriptionPlant Select the Plant from the

display. E.g. IND6Activate RequirementPlanning

Check box to be ticked toactivate single item multilevelMRP run. E.g. Ensure thecheck box is ticked.

Click Save .


Transaction codes MD01 and MD02 can be performed onlywith this configuration setting.

Error message will be generated if this is not configured.

9. Summary: -

Friends, I am sure now you would be to configure thePlanning Module in SAP

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configuration - mrp

Documents

mrpplant parameter

mrp group

mrp type

mrp plant parameters

mrp consumption

mrp controller

planning strategy

planning run