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SAP-TO BE Process

NAWPP003Material Requirement Planning

PRODUT!ON P"ANN!N#

$er%&0

%0&0'&(00)

STATEMENT OF CONFIDENTIALITY / DISCLAIMER

This document is the property of Critor! Indi" No prt of this document sh## $e

reproduced! stored in retrie%# system! or trnsmitted $y ny mens! e#ectronic!

mechnic#! photocopyin&! recordin&! or other'ise 'ithout prior 'ritten permission from

Critor! Indi"

naw

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Ta*le o+ ontents

Ta*le o+ ontents

MATER!A" RE,U!REMENT P"ANN!N#&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&3

AS IS Process.........................................................................................................................................................4

Core to Be Process.................................................................................................................................................7

1.1 Changes to Existing Organization............................................................................................................11

1.2 Description of Improements an! "e# $etrics........................................................................................11

1.% &otes on '(rther Improements..............................................................................................................11

1.4 '(nctiona) Deficit an! $etho! to *emoe +hat.......................................................................................11

1., Interface *e-(irement.............................................................................................................................11

1. S#stem Config(ration Consi!erations.....................................................................................................12

1.7 'i)e Conersion Consi!erations...............................................................................................................12

1./ An# reports re-(ire! re)ate! to c(rrent 0(siness process.......................................................................121. An# !oc(mento(tp(t 3o()! 0e printe! for this 0(siness process...........................................................12

1.1 A(thorization Consi!erations...................................................................................................................12

1.11 En! 5ser +raining *e-(irements.............................................................................................................12

1.12 Process ')o3 Chart.................................................................................................................................1%

( SAP Stanar Re.orts&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&%/

3 ustom Deelo.ments&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&%1

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MATER!A" RE,U!REMENT P"ANN!N#

TO-BE Document

or SAP R43 !m.lementation at Ne2 Allen*err5 2or6s&

Date6 1..2

Sr. &o of +O BE !oc(ment &APP%

*ef. Sr. &o. Of AS8IS !oc(ment $ateria) *e-(irement P)anning

&ame of B(siness Process6 $ateria) re-(irement P)anning

$o!()e6 Pro!(ction P)anning S(0 mo!()e6 $*P

9ersion no of !oc(ment6 1. Date6 1..2

9ersion $anagement +his Doc(ment is s(0:ect to change contro). Eer# change of the !oc(ment has to 5n!ergo changecontro) proce!(re an! has to 0e registere! in the fo))o3ing ta0)e

$ersion 7ange Pre.are B5 Date

%&0 Anant7 Ra8 %0&0'&(00)

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AS !S Process

Material Requirement Planning

Versatility is the distinctive feature of the production planning in NAW.

The material requirement planning is done centrally at plant level

Presently planning is done for a whole month based on inputs from marketing. The monthly

calendar considers the working days and the working hours in the organiation.

!n "stof every month# sales department in consultation with $!! prepares a list of various

products and its quantities which are required by them to fulfill the customer%s requirement.

&ollowing factors are taken care off while calculating the requirement.

". $ustomer%s 'chedule( $ustomer%s schedules are received by mail# telephoniccommunication# or in the form of hard copies.

). Past Trends( *ven if the customer has not given its requirement of a particularproduct or a reduced schedule has been received# additional quantities are plannedlooking at past trends of lifting of materials by the customer.

+. ,nventories available( &inished products inventories are available either in &- 'toreor with transporters awaiting in warding by customers schedules from customers.

All such materials are accounted for while preparing the requirement.

/ased on past trends and that month%s customer requirement total requirement for the

month is calculated. /y deducting available inventories net requirement is worked out which

forms Production Plan for the month.

Production Plan so generated helps in planning material requirement for the month.

/y adding "0 1 to the production plan# material requirement for the month is calculated.

-enerally raw material stocks are available to meet the current month%s requirement

meaning thereby that material procurement in that month is actually done to meet the ne2t

month%s requirement.

This is necessitated since the lead time of most of the raw materials is very high.

The e2tra stock of one month may be considered as 'afety 'tock or buffer.

On the basis of past trends of consumption and lead time of the material, System should

suggest optimum level of buffers so that neither the production suffers nor NAW carry

unwanted inventory.

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&ollowing stocks are considered while calculating the net requirement.

3aw material stocks.

4aterials lying with !'P vendors.

Work in Progress inventory

Production Plan minus inventories available give the net requirement of materials to meet

out that month%s plan.

These requirements are communicated to respective Purchase -roup for planning their

activities.

'ince most of the vendors are having open quantity purchase orders# NAW follows a system

of giving them 5elivery 'chedules referring the purchase order already placed on them.

The respective Purchase -roup prepares a working sheet specifying the quantities required

and its distribution to vendors.

/roadly vendor%s capability and price factor are considered while allocating and distributing

the quantities. An over burdened vendor may be given lesser schedules so as to ensure

timely procurement of materials from vendors who have got less load that particular month.

6uantities so decided are fed into the system to take out print outs of 5elivery 'chedules for

each vendor.

'ince NAW does not have pre printed format of 5elivery 'chedules# the prints are taken on

letter heads and delivered or communicated to vendors by )ndof every month.

All delivery schedules are automatically cancelled at the end of the month and fresh

schedules are placed at the beginning of the month.

Planning Time Fence

The production plan may change till the last day of the month. This may be due to change in

customer requirement# material shortage or any technical reason.

New production proposal may be decided upon on daily basis and plans may be changed

accordingly.

System should be able to withstand frequent changes and yet give the accurate and

appropriate planning for achieving the desired target.

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Scheduling

The production scheduling is carried with the help of production plan for the product and as

per production norms set for each operation of each product.

!peration wise loading scheduling is done on daily basis for all machines or work centers

in various production lines.

Daily loading plan or scheduling giving an accurate daily short term planning to the plant by

the System is the requirement of NAW.

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Co))ection of stage 3ise Inentor# fig(res on !ai)# 0asis

Prepare $C ;oa!ing P)an section 3ise < gien to Pro!(ction

A!ance Setting Change Information is prepare! .Store a)ong 3ith O" +ag

'inishe! 0)an?s are fe! to $C Shop from @B)an? Storage Area@ as per !ai)#

;oa!ing Sheet an! moement of materia)s from one section to another

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ore to Be Process

Material Requirement Planning9

unction o+ MRP9

+he main f(nction of $ateria) *e-(irements P)anning is to g(arantee materia) aai)a0i)it# to theshop f)oor. +he o(tp(t of $*P ma# either 0e p(rchase re-(isitions or pro!(ction or!ers. +he aimof materia) re-(irements p)anning is to tai)or aai)a0)e capacities an! receipts on time to s(itre-(irement -(antities. +his can 0e achiee! 0# $*P.

!ntegretion9

o( m(st first create the master !ata to 0e a0)e to 3or? 3ith the $*P component. +o !o this #o(re-(ire the fo))o3ing components6

Material master

Bills o+ material

hen #o( (se $*P for in8ho(se pro!(ction #o( a)so nee! the fo))o3ing components if #o( 3ant to!etermine pro!(ction !ates6

Work center

Routings

7ou also need the following components(

Demand Management

7ou need the 5emand 4anagement component to define requirement quantities andrequirements dates for finished products and important assemblies. 5emand 4anagement alsodetermines the strategy you are to use for planning# procuring# or producing a certain finishedproduct.

sales and distribution# if necessary

In or!er to coer these re-(irements $*P ca)c()ates proc(rement -(antities an! !ates as 3e)) as

p)ans the correspon!ing proc(rement e)ements. +he proc(rement e)ement in the p)anning r(n is thep)anne! or!er or for externa) proc(rement the p(rchases re-(isition.Both proc(rement e)ements areinterna) p)anning e)ements that can 0e change! resche!()e! or !e)ete! at an# time.

If a materia) is pro!(ce! in8ho(se the s#stem a)so ca)c()ates the !epen!ent re-(irements that is the

-(antit# of components re-(ire! to pro!(ce the finishe! pro!(ct or the assem0)# 0# exp)o!ing theBO$. If a materia) shortage exists p)anne! or!ers are create! at eer# BO$ )ee) to coer propose!re-(irement.

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T7e MRP ontroller conerts

1.Pro!(ction or!ers for in8ho(se pro!(ction2.P(rchase or!ers for externa) proc(rement.

+he -(antities ma!e aai)a0)e 0# pro!(ction or 0# externa) proc(rement are p)ace! in stoc? an! are manage! 0#

Inentor# $anagement.

;e5 +iels in MRP ie2s use in NAW

MRP t5.e

"e# that !etermines ho3 the materia) is p)anne!.

In &A materia) re-(irement p)anning is not 0een carrie! o(t in their )egac# s#stem.In SAP $*P r(n 3i))

0e carrie! o(t so that a)) the materia)s are p)anne!.+he $*P t#pe (se! in &A 3i)) 0e

PD-T7is 6e5 is use as NAW 2ill *e running MRP&

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+he fo))o3ing proc(rement t#pe is (se! in &A.

=8 +he materia) is either proc(re! externa))# or Pro!(ce! interna))# or s(0contracte!.

Sc7euling Margin ;e5 +or loats

"e# that the s#stem (ses to !etermine the f)oats re-(ire! for sche!()ing a pro!(ction or!er. ')oats

are maintaine! in 3or?!a#s. +he fo))o3ing f)oats can 0e !efine! 3ith the sche!()ing margin ?e#6

O.ening .erio

+he opening perio! for the p)anne! or!er represents the n(m0er of 3or?!a#s that are s(0tracte!from the or!er start !ate in or!er to !etermine the or!er opening !ate. +his perio! seres as atime f)oat 3hich is aai)a0)e for the $*P contro))er 3hen conerting a p)anne! or!er into ap(rchase re-(isition.

loat a+ter .rouction ?onl5 in t7e case o+ in-7ouse .rouction@The float after production is the number of workdays that are planned as a buffer

between the production finish date and the order finish date. This serves tocompensate for interruptions during production to avoid displacing the order finish date

loat *e+ore .rouction ?onl5 in t7e case o+ in-7ouse .rouction@

+he f)oat 0efore pro!(ction is the n(m0er of 3or?!a#s that are p)anne! as a 0(ffer 0et3een theor!er start !ate an! the pro!(ction start !ate. B# (sing this f)oat !e)a#s in materia) staging !onot ca(se !e)a#s in starting pro!(ction. A!!itiona))# if there are capacit# 0ott)enec?s or !e)a#s inan incoming sa)es or!er the pro!(ction !ates can 0e 0ro(ght for3ar!.

Release .erio ?onl5 in t7e case o+ .rouction orer management@

or NAW Sc7eule margin 6e5 000 is e+ine 27ere

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hi)e ca)c()ating net re-(irements !(ring the $*P r(n the s#stem sha)) consi!er the

stoc?s in the p)ant at a)) storage )ocations.&A has a re-(irement to a!! 1 of the tota)re-(irement 3hi)e p)anning. +his for an# materia) re:ections an! f)(ct(ations in mar?et!eman!.

+he (nconerte! p)anne! or!ers 3i)) 0e !e)ete! in the next $*P r(n if no re-(irements exist for thesai! materia)s. Fo3eer firme! p)anne! or!ers sha)) not 0e !e)ete! a(tomatica))# 0# the s#stem.

MRP Process lo2

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$*P

&et *e-(irement Ca)c()ation

;ot Sizin 8;ot8for8;ot or!er (antit

Sche!()ing

P)anne! or!er

Pro!(ction or!er P(rchase *e-(isition

Externa) proc(rement In ho(se pro!(ction

$ateria) $asterBO$or?

Center*o(tingDeman!

managementSa)es

*e-(irement

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Exception reporting

5uring the planning run# the system recognies e2ceptional situations and errors.These e2ceptions are reported particularly in cases where manual reprocessing ofthe planning result is necessary. &or e2ample if a purchase order e2ists with adelivery date of + days after the requirement date# system will raise an e2ceptionmessage to 8reschedule in% the purchase order. All e2ception messages will also begrouped by the system as per the functions 9All messages regarding reschedulingwill be grouped together: At any time it will be possible to look in the system for thematerials with e2ception message group and action can be performed based onthat.

%&% 7anges to Eisting Organi

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%&) S5stem on+iguration onsierations

$*P contro))ersche!()e margin ?e#.

%&: ile onersion onsierations

&I;

%&> An5 re.orts require relate to current *usiness .rocess

&I;

%&' An5 ocument4out.ut 2oul *e .rinte +or t7is *usiness .rocess

&I;

%&%0 Aut7ori

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%&%( Process lo2 7art

Sign-o++ ?A..roal@ +or t7is ocument9

Name o+ Team mem*ers9 Organi

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( SAP Stanar Re.orts

SAP Stanar Re.orts

Sl No9 Re.ort Descri.tion Selection riteria Out.ut

0"

450; < 5isplay

'tock3equirements

'ituation

4aterial# plant

< 5isplay

'tock3equirements

'ituation

0)

450= < ,ndividual 5isplay

of 43P >ist 4aterial# plant

,ndividual 5isplay of

43P >ist

0+450? < $ollective 5isplay

of 43P >ist

$ollective 5isplay of

43P >ist

0;450@ < $urrent material

overview4aterial# plant

$urrent material

overview

0=45;$ < 4ultilevel !rder

3eport4aterial# plant

< 4ultilevel !rder

3eport

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3 ustom Deelo.ments

Print Requirements


Deelo.ment Requirements


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