mrp overview ontents · module mrp – calculate requirements datasheet name mrp overview page 2 of...

Datasheet Number & Version MRP100 Version 2.0.0

Based on Software Build No. 12.5.8.1193

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Module MRP – Calculate Requirements

Datasheet Name MRP Overview

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MRP Overview

Contents 1. Introduction ................................................................................................................................................................ 2

2. Settings & Parameters ................................................................................................................................................ 3

3. Product Setup ............................................................................................................................................................. 5

3.1. Example ............................................................................................................................................................ 5

3.1.1. Product – Item Master ....................................................................................................................................... 5

3.1.2. Design Setup ..................................................................................................................................................... 6

3.2. Example Setup of Products ............................................................................................................................... 6

4. Calculate Requirements ............................................................................................................................................. 8

5. Production Schedules ................................................................................................................................................. 9

6. Purchase Schedules .................................................................................................................................................. 10

7. Full Supply & Demand ............................................................................................................................................ 11

8. Oversupply Report ................................................................................................................................................... 13

9. Projected Order Report ............................................................................................................................................ 14

10. Interactive Mode .................................................................................................................................................. 15

11. Running the Pull Forward/Push Back Report ...................................................................................................... 17



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1. Introduction The Material Requirements Planning (MRP) Engine is a tool for automating the workflow and logic behind ordering & manufacturing products to meet demand, which can either be specified via a Master Production Schedule (MPS) or Sales Orders. This tool allows users to reliably calculate the amount of time needed to develop a tool, can automatically produce stock to ensure a minimum amount is contained within depots when required, and batch their production based on both time & amount they can produce. By fully utilising the MRP Engine, companies can expedite a large percentage of their production planning to Sapman v12.



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2. Settings & Parameters Settings for MRP can be found within the System Manager’s Settings within the MRP Tab.

Figure 1 - Navigating to MRP Settings

The settings within the settings menu are used as the default value for MRP Calculations, and most can be toggled on & off for individual MRP Runs.

MRP SETTINGS - BREAKDOWN

A) Include Reorder Levels

The Include Reorder Levels setting defines whether or not an individual MRP Run has Reorder Levels Included. When this setting is enabled, every product that has a Reorder Level attached to it via the Stock Item Definition must have a minimum level of stock equal to the Reorder Level at any given time. For example, with a Reorder Level of 500 on every product, if the MRP Engine detects any product with a stock level of less than 500, it will automatically be brought up to to 500 and not allowed to sink below that level for the MRP Run. This can be used to ensure that products that need to be shipped on short notice are always ready.

B) Include Free Stock

Include Free Stock allows the MRP Run to factor in currently existing, non-promised stock to the MRP Run. If a Product has 2000 units in stock currently, demand for sales orders & MPS will be met from this first before producing new stock. Unchecking this setting makes the MRP Engine assume you currently have 0 stock available at the start of a run.

C) Include Works Order Demand

This makes the MRP Engine include currently existing Works Orders in the Demand for each product. This means if a Manufactured Product has a Works Order not Allocated currently, Demand for a Sales Order or MPS can be met from this partially or wholly, depending on the amount in the Works Order.

D) Include Transfer Request Demand

This option factors in Transfer Requests to the Demand for MRP Calculations.



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E) Detailed Supply Breakdown

Allows the MRP Run to factor in Existing Works and Purchase Orders for the MRP Run. If a product has a Works Order that would satisfy demand, no projected works order will be completed

F) Live Designs only for Shortages

This forces MRP to only use designs that are marked as ‘Live’ for calculating subassemblies, materials, etc for a Design. If this is unchecked any design will be used.

G) Default PO Batching Horizon

Sets the default Purchase Order batching horizon for MRP Runs. This can be altered for specific runs through the Calculate Requirements Options window when starting a new run. The batching horizon for a run specifies whether MRP should merge together entries within the window. Starting from the first entry for each product, if the next entry falls within the batching horizon, measured in days, the two entries will be merged, which is repeated for every entry in the products run.

H) Default WO Batching Horizon

Sets the default Works Order batching horizon for MRP Runs. This can be altered for specific runs through the Calculate Requirements Options window when starting a new run.

I) Working Days

The Working Days for an MRP Run are used to exclude specific days from calculation time for MRP Runs. These are by default set to Saturday and Sunday, as it is rare for work to be performed on these days. However, this can be set manually to what works best for your particular setup, and can be set to allow specific day holidays – Bank Holidays, etc via the ‘Holidays’ button.

Figure 2- The Working Days settings and Holidays Button



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3. Product Setup 3.1. Example Each product in an MRP Run can have a variety of settings included in it enabled to influence the results of an MRP Calculation. Whether it is manufactured in-house or purchased from elsewhere, if it has child components, the minimum amount to order, or a floating stock level that needs to be achieved. This example shows how to quickly set up a variety of products optimally for MRP.

3.1.1. Product – Item Master The Item Master Screen controls the large majority of item-specific MRP settings. The main fields to consider are: “Reorder Level”, “Minimum Order Quantity”, “Order Increment”, and “Lead Time”. Through each of these fields you can set up a range of rules & constraints on a product that will be considered for subcomponents. For an item to have Stock Details, and subsequently Item Master Info, its Product Type must be set to ‘Stock Item’.

Figure 3 - The Item Master Screen.

Include In MRP This checkbox specifies whether a product should be included within the MRP run. For designs, all subcomponents will need to be marked as include in MRP to be seen within the PWO/PPO for a run. Item Type: Manufactured/Purchased This specifies whether an item should be ‘bought in’ from a supplier via Purchase Orders, or manufactured in house via Works Orders. Reorder Level



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Reorder Level (ROL) can be considered as “Minimum Stock within all Depots”, and will attempt to ensure that an item does not drop below this stock level during an MRP Run. If a product has a Reorder Level of 100, but a Current Free Stock at the start of a run lower than this, the MRP Engine will automatically place an order with a Date Required of today for that item to bring it up to this amount. This order is affected by MOQ, INC and LT. If the Lead Time exists, the start date will be factored in to start before the current day/date. This is intentional and is used to show that the order is required urgently. Minimum Order Quantity Minimum Order Quantity (MOQ) is used for individual orders, and is the minimum amount an item can be manufactured or purchased in. If an item has a MOQ of 20, but only 5 are required for the next Sales Order or other demand type, the Projected Works/Purchase order (PWO/PPO) will be for 20. However, this will be factored into available stock for the next order. So with four sales orders of 5 each, but a MOQ of 20, we will only need one PWO/PPO. Increment Increments (INC) are the amount each order must be divisible by. With an Increment of 9 and our previous PPO/PWO of 20 due to MOQ, the order would be rounded up to 27. Again, this is factored into available stock and will be subtracted from before placing another PPO/PWO to ensure minimal oversupply. Without a MOQ the order would simply be for 9. Lead Time Lead Time (LT) refers to the amount of time required before an item is physically available for an order. A product with a LT of 5 would need to be started 5 days before the date required. This property takes into account the Holidays specified within the MRP Settings. NOTE:By specifying a lead time on all products, on Designs with a high level of depth for subassemblies, this can lead to difficult human factoring. If all Components of a Design have a lead time of 30 days, and the subassemblies go 3 deep, it will be projected that it takes greater than 3 months to order in a product. Master Production Schedule (MPS) By checking the box ‘MPS Item’, you can specify an item as having demand from the Master Production Schedule. This allows you to either set a Campaign Figure or Schedule. A Campaign Figure allocates a set amount of demand to a product to be manufactured at the early possible date, including lead times. A Schedule allows you to set up multiple ‘Campaign Figures’ with specified dates. This feature can be used to plan demand in the future; for orders that you know will happen but have not been entered into the system yet (e.g. standing orders of 1000 every month for a customer of an item). MRP Type MRP Type refers to one of two choices, Economic Lot Sizing (ELS), or Lot-For-Lot. An MRP type of ELS says that a product will use the definitions for ROL, MOQ, and INC. LFL ignores a products’ ROL and attempts to set only based on the MOQ and INC. LFL also allows a user to set a ‘Buffer’ quantity to each product, an amount that can be added onto each order.

3.1.2. Design Setup A product’s design will be factored into an MRP run if one is available. Information for setting up a design with Subassemblies, Materials etc can be found in datasheet DES106 Ver3 – Design Manager.

3.2. Example Setup of Products



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Below is a table specifying the setup for a range of products within MRP and the expected results for these setups. While this provides a good starting point for getting familiar with MRP, the best way is to setup a couple of logical designs & products that make sense to you and seeing how it would react.

Product Name Parent BOM 1 Parent BOM 2 Parent BOM 3 SA 1 SA 2 SA 3

Manufactured/Purchased? Manufactured Manufactured Manufactured Manufactured Manufactured Manufactured

MPS Item No Yes Yes No No No

MPS Amount N/A Schedule – 10 a week

Campaign Figure - 16

N/A N/A N/A

Stock Level 2 0 0 0

Outstanding Supply 1x Works Order – 48

N/A N/A N/A N/A

Outstanding Demand 5x Sales Orders (1 p/w), 25 each

4x Sales Orders (1 p/w), 25 each

N/A 1 per Parent BOM 2

1 per Parent BOM 3

1 per SA 2

Reorder Level 60 2 6 1 4 3

Minimum Order Quantity 20 4 3 1 2 0

Increment 0 2 5 1 2 0

Lead Time 2 2 5 2 0 0

SubAssemblies No Yes Yes No Yes No

SA 1 N/A SA 1 x1 SA 2 x1 N/A SA 3 x1 N/A

SA 2 N/A N/A N/A N/A N/A N/A

SA 3 N/A N/A N/A N/A N/A N/A

Materials Yes Yes Yes Yes Yes Yes

Mat 1 Material 1 x1 Material 1 x1 Material 1 x1 SA Material 1 x1

SA Material 3 x1

Sa Material 4 x1

Mat 2 Material 2 x1 Material 2 x1 Material 2 x1 Sa Material 2 x1

N/A N/A

Mat 3 Material 3 x1 Material 3 x1 Material 3 x1 N/A N/A N/A

Product Name Material 1 Material 2 Material 3 SA Mat 1 SA Mat 2 SA Mat 3 SA Mat 4

Manufactured/Purchased? Purchased Purchased Purchased Purchased Purchased Purchased Purchased

MPS Item No No No No No No No

MPS Amount N/A N/A N/A N/A N/A N/A N/A

Stock Level 0 0 0 0 0 0 0

Outstanding Supply 1x Purchase Order - 5

N/A N/A N/A N/A N/A N/A

Outstanding Demand 1 per Parent BOM 1, 2 & 3

1 per Parent BOM 1, 2 & 3

1 per Parent BOM 1, 2 & 3

1 per SA 1 1 Per SA 1 1 Per SA 2 1 Per SA 3

Reorder Level 2 0 0 2 0 10 0

Minimum Order Quantity 0 0 5 1 0 0 0

Increment 0 9 0 1 0 17 0

Lead Time 2 0 0 2 0 0 0

The expected results for these can be found in the related file: MRP RUN Breakdowns.



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4. Calculate Requirements The Calculate Requirements screen is where you set up the rules for a specific MRP run. The defaults for these values are based on the settings within MRP Settings (See: Section 2 – Settings & Parameters)

Figure 4 - MRP Calculate Requirements

The only differences within this screen are the Demand From, Include Demand up to, Manufacturing Department, and Interactive Mode.

Demand From The Demand From dropdown determines where MRP should look for it’s demand entries. There are two options, MPS and Sales Order. Demand From: Sales Order

Setting demand from to Sales Order will set the primary demand source for the MRP Run to Sales Orders. The user can decide whether or not to include reorder levels, works orders, and transfer requests within this run as well. Demand From: MPS Setting demand from to MPS will make the primary demand source for the MRP Run to the Master Production Schedule, as explained in Section 3. The user can decide whether or not to include reorder levels, works orders, and transfer requests within this run as well.

Include Demand Up To This dropdown opens a calendar, which allows the user to specify a cutoff point for demand within the run. This is useful when the user has a large number of demand entries that they wish to exclude that are in the future.

Manufacturing Department This specifies the product group to use for calculations within the MRP run. If the user wishes to only see items from a particular product group this would be useful.

Interactive Mode Interactive Mode allows the user to ‘step through’ an MRP run and see exactly what it’s responses are, and edit them. This is useful if you feel there are specific entries which need tweaking compared to the standard MRP Run.



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5. Production Schedules

Figure 5 - The 'Production Schedule' Screen

The production schedule screen when an MRP Run is completed displays an overview of the results for an MRP runs calculations for Works Orders. From here, the user can explore a specific item’s entries by double-clicking any of the entries, providing a detailed supply breakdown. To generate the works orders for a run, all the user has to do is hit ‘Confirm All’ and then ‘Create Works Orders’. If the user is unhappy with the values provided by an MRP Run, they can also click the ‘Quantity Confirmed’ column under the entry they wish to change and enter a new value. Once the user has selected ‘Create Works Orders’, the Works Orders are automatically generated within the Works Order Manager screen and can be viewed from there.



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6. Purchase Schedules

Figure 6 - The 'Purchase Schedules' Screen

The purchase schedule works identically to the production schedule with the exception of the Supplier & Authorisation dropdowns, shown to the bottom right of the image. When the user creates purchase orders, they must have a Supplier to meet the product. This can either be specified within each entry, or by having a preferred supplier within the Products’ definition. Information about this can be found within the datasheet PDT124Ver3 – Product Manager.



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7. Full Supply & Demand

Figure 7 - The Full Supply & Demand Screen

The Full Supply & Demand Screen displays both Production & Purchase Schedules in order of Date Required. This screen has the following features:

• Print – This will open a preview of the Supply and demand report and also add the report onto the Print Spooler.

• Show Full Process S&D – This will filter the grid to include projected supply and demand orders.

• Product Group – This will filter the Products displayed on the grid by the selected Product Group.

• Use Reorder Level – Enabling this will set the balance to be compared against the Reorder Level. Right-clicking a Product will display the available drop-down menu options:



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• Stock Profile – This will display the Supply & Demand form for the selected Product on a new window.

• View Projected Shortages – This will display the Projected Shortages for the selected Product on a new window.

• Drill Up to Projected Works Order – This will display the list of Projected Works Orders that have shortages from the selected Projected Works Order Shortage. (Note: This is only available for Projected Works Order Shortages)

• View Order – This will display the selected Order on a new window.

• View Line – This will display the selected Order Line on a new window.

• View Stock Card – This will print the Stock Card to the Print Spooler. o Select ‘View Stock Card’ from the drop-down menu. o This will open Stock Card form, select/enter the required filters.

o Once complete, select ‘OK’.

o This will open a preview form of the report with the selected filters. Close the preview window when

you are finished viewing.



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8. Oversupply Report

a.) On the MRP Calculate Requirements Form, select ‘Oversupply Report’.

b.) This will open a preview of the MRP Oversupply Report and add it to the Print Spooler.



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9. Projected Order Report a.) On the MRP Calculate Requirements Form, select ‘Projected Order Report’.

b.) This will open a preview of the MRP Projected Orders Report and add it to the Print Spooler.



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10. Interactive Mode (Note: This is only available when on Interactive Mode is selected on the MRP settings.) a.) On The MRP Calculate Requirement Form, select ‘Run Next Phase’.

b.) This will open a confirmation form, select ‘Yes’ to continue the next phase of the Works Order Projection.

c.) Once the MRP calculation has completed the next phase, the user will be able change any projected orders before continuing onto the next.



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d.) There are also three pop-ups that will appear when projected orders are completed:

• Projected Works Orders are completed – A pop-up to freeze the production schedule will appear after selecting ‘Run Next Phase’. Select ‘Yes’ to freeze the production schedule or ‘No’ to continue. (Note: Once the production schedule is frozen, works order can be created by the MRP.)

• Projected Purchase Orders are completed – A pop-up to freeze the purchase schedule will appear after selecting ‘Run Next Phase’. Select ‘Yes’ to freeze the production schedule or ‘No’ to continue. (Note: Once the purchase schedule is frozen, purchase orders can be created by the MRP.)

• Both Works Orders and Purchase Projections are completed – A pop-up confirming that both Production and Purchase Projections are completed and frozen will appear after selecting ‘Run Next Phase’. Select ‘OK’



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11. Running the Pull Forward/Push Back Report

a.) To run the Pull Forward/Push Back Report, select MRP Module > MRP Reports > Pull Forward/Push Back option.

b.) This will open the Pull Forward/Push Back Report form. Select the filter options then select ‘OK’.



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c.) This will open the preview of the report, this report displays details for manufactured products orders and

suggests what orders could be moved to an earlier (Pull Forward)/ later (Push Back) date to suit demand needed for the product. Close the preview window when you are finished viewing.

mrp overview ontents · module mrp – calculate requirements datasheet name mrp overview page 2 of...

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