Sap R3MRP

The purpose of MRP is to guarantee material availability by planning for procurement or production of required quantities.
Material Reqmts Planning

Dependent Reqmts Sales Orders Planned Ind Requirements
Reservations
Planned Order
Convert Purchase Requisition Purchase Order Warehouse Schedule Line
Production Order
SAP AG 2001, A Business View of mySAP Financials, GBU FIN - 1
R/3s MRP is for unconstraint-based planning, APO is for the constraint-based planning Sales order / Planned Ind Requirement Planned order
Finished product
Assembly 1
Assembly 2
Dependent requirement Planned order
Raw material 1
Raw material 2
Raw material 3
Dependent requirement Purchase requisition

R
How the Planning Run Works

Net Requirements Calculation ---> Lot Size Calculation ----> Net Requirements Calculation ---> Lot Size Calculation ----> -------> Scheduling --------> BOM Explosion -----> -------> Scheduling --------> BOM Explosion -----> -------> Quota Arrangement -------> Quota Arrangement
Net Requirements Calculation
1. Determine Available Warehouse Stock 2. Determine Planned Receipts (after considering existing issues and receipts) 3. Calculate the Shortage Quantity
Lot Size Calculation

Determine the lot size of each plan order. R3 Lot Sizing falls into 3 categories : Static Lot Size, Optimum Lot Size or Period Lot Size
Procurement Type & Scheduling

In-house Production or External Procurement & Backward Scheduling or Forward Scheduling
BOM Explosion
Determine the valid BOM for explosion
Quota Arrangement
A lot can further be split by quota arrangements (MM will cover this)
Rescheduling Check for Firmed Receipts

Exception message
Receipts Reschedule in
Exception message
Reschedule out Time
Tolerance
Reqmts
Tolerance
Tolerance
In-house production time + Goods receipt processing time + Rescheduling horizon
Firmed receipts: production order, purchase order, firmed planned order

The planning run will not automatically displace firmed receipts.
Overview: Net Requirements Calculation
Net Reqmts Calculation

Lot-size calculation Procurement type
Scheduling BOM Explosion
MRP: Net Requirements Calculation

MRP will compare the requirement and supply to get a shortage gap. A comparison is made between warehouse stock and the appropriate receipts and issue. In the net requirements calculation, a difference is made between reorder point planning, forecast-based planning, and MRP. In each procedure, the system calculates available stock differently.
Lot Size
Shortage
Planned Orders Production Orders Purchase Requisitions Purchase orders Warehouse Stock Supply
Sales Orders Planned Ind Reqmts

Compare
Dependent Reqmts Reservations Safety Stock Demand
MRP Procedures
controlled by MRP type in material master (MRP 1 view)
MRP Procedures
Consumptionbased
MRP
Deterministic Planning
Reorder point planning

W/ or W/O Requirements
Forecast-based planning
Time-phased planning
based on consumption in the past

Master Data
Material Master (Important Ones) q MRP Group (MRP1) - Group common MRP materials together q MRP Type (MRP1) - Planning Method. q Reorder Point (MRP1) - For Reorder Point Planning Methods q Planning Time Fence (MRP1) - Restrict Planning Activities within the TimeFence q Planning Cycle (MRP1) - Only for Time Phased Planning q MRP Controller (MRP1) - Planner for the material q Lot Sizing (MRP1) - Lot Size determination q Storage Cost Indicators (MRP1) - For Optimum Lot sizing Only q Ordering Costs (MRP1)- For Optimum Lot Sizing Only q Assembly Scrap (MRP1) - For Assembly Scrap Only q Procurement Type (MRP2) - Make or Buy Indicator. q Special Procurement (MRP2) - For stock transfers, phantoms etc. q Quota Arrangement (MRP2) - Splitting of Quota for internal and/or external procurement (MM will handle this)
Master Data (Contd)

Material Master (Important Ones) q Lead Times (GR and Planned Delivery Time) (MRP2) - Receiving and Purchasing Lead Times q Scheduling Margin Key (MRP2) - How external or internal procurement is scheduled q Safety Stock (MRP2) - Safety Stock q Forecast (MRP3 and Forecasting) - Mainly for Forecast Based Planning, ReOrder Point Planning and Time Phased Planning q Planning Strategy (MRP3) - Mainly for Finished Goods - to be decided by APO q Availability Check (MRP3) - ATP logic for components - to be decided by ZL. For Finished Goods - to be decided by APO. q Discontinuation (MRP4) - Discontinuation by material across all BOMs q Component Scrap (MRP4) - Component Scrap q Requirements Grouping (MRP4) - Group requirements for planning or display q Storage Location MRP (MRP4) - Only if storage MRP is required
How the Planning Run Works Per MRP Type
Reorder Point Planning (REORDER) (MRP Type VB, Reorder Level) When Available Stock falls below reorder level, planned orders are generated in the planning run to order up to reorder level. Safety Stock requirement is just for information
Available Stock = Plant Stock + Receipts

Reorder Point Planning + Requirements (REORDERREQS) (MRP Type V1, Reorder Level) When Available stock falls below reorder level, planned orders are generated in the planning run to order up to reorder level. Safety stock requirement is just for information. The difference here is that sales orders and reservations are also taken into account. Available Stock = Plant Stock + Receipts - (Sales Orders + Reservations)
How the Planning Run Works Per MRP Type

Forecast Based Planning (FORECAST) (MRP Type VV, Create Forecast) System only considers forecast requirements (any other requirements are not considered). Planned orders are proposed when available stock is less than forecast requirements. Available Stock = Plant stock - Safety Stock + Receipts - Forecast Requirements Time Phased Planning (TIMEPLAN) (MRP Type R1, Planning Cycle, Create Forecast) Material is planned according to same cycle in which it is delivered ie the material is not planned during the normal MRP run. The material have to be planned using a separate MRP run. Available Stock = (Plant stock - Safety Stock + Receipts - Forecast Requirements) within the planning cycle. cycle MRP Planned (PDFORECAST) (MRP Type PD, Optional Create Forecast) System checks every requirement to determine whether they are covered by available warehouse stock and/or receipts. Available Stock = Plant stock - Safety Stock + Receipts - All Requirements
Quantity and Time Floats
Safety stock Safety stock partially available Dynamic safety stock Safety time
Safety Stock
Safety stock: To be set in material master (MRP 2) or in the MRP area segment
Stock Available quantity for planning
Safety stock (not available for planning)
Time
Reqmt
Receipt
Safety Stock Partially Available

Safety stock partially available: set in MRP group Available quantity for planning Stock
Portion of safety stock available Safety Portion of safety stock not available for planning Reqmt Receipt
Statistical safety stock from material master
Time
Dynamic Safety Stock (1)
Stock
Maximum stock Target stock
"dynamic safety stock
Minimum stock
Replenish to target stock if falls below minimum stock
Exception message for firmed order proposals, otherwise adjustment
Dynamic Safety Stock (2)
Dynamic Safety Stock and Range of Coverage Profile

Period 1 Period 2 Period 3 Period 4 Reqmts
Average daily requirements Average daily requirements Average daily requirements
Time
Days
Maximum stock Target stock Minimum stock Time
Range of Coverage Profile: Intervals (1)

Definition of range of coverage profile in Customizing, assignment in material master
Interval 1
Interval 2
Interval 3 Time Reqmts
Maximum stock
Target stock Minimum stock Time

Range of Coverage Profile: Intervals (2)
Periods with deviating range of coverage

Interval 1 Reqmts Interval 2 Interval 3 Time
20.12.2000 10.12.2000
Maximum stock
Target stock Minimum stock Time
Safety Time
Safety time: To be set in material master (MRP 2) or in the MRP area segment
28.03.
Receipts
30.03.
2 workdays
Time
Reqmts
Safety time
Safety Time in Multi-Level Production

Defined using the safety time indicator in the material master (MRP 2) or in the MRP area segment + Finished product Safety time Ind reqmt Ind reqmt Time
+ Components Reqmts time
Time
Dep . reqmts
Period Profile for the Safety Time

Definition of period profile in Customizing, assignment in material master
Receipts
Safety time
Safety time
Safety time
Time
Reqmts
2 workdays
4 workdays
2 workdays
12.12.2000
20.12.2000
Overview: Lot-Size Calculation
Lot- size calculation

Procurement type
Net Requirements Calculation
Scheduling BOM Explosion
Overview of Lot-Sizing Procedures

Definition in Customizing Entered in Material master
Lot- sizing procedures

Static procedures Period procedures Optimum procedures
Lot-for-lot order quantity
Daily lot size
Part period procedure
Fixed lot size Replenishment up to maximum stock level
Weekly lot size
Least unit cost procedure Groff reorder procedure Dynamic lot size creation
Monthly lot size Flexible periods according to planning calendar
Static Lot-Sizing Procedures
EX
Lot-for-lot order quantity (exact to the day)

Quantity Receipts Reqmts Time
FX
Fixed lot size
HB
Replenish up to maximum stock level
Period Lot-Sizing Procedures
TB MB
Daily lot size Monthly lot size
WB Weekly lot size
Period length
Period length
Period length
Receipts Time Reqmts Period 1 Period 2 Period 3
Lot Size According to Planning Calendar
PC
Period Lot Size Acc. to Planning Calendar

ed, 00 .20 3.7
July 2000
Mon Tue Wed Thu Fri 1 8 15 22 2 9 16 23 3 10 17 24 4 11 18 25 5 12 19 26 Sat Sun 6 13 20 27 7 14 21 28
d, e W
Wed , 17. 7.20 00
0 00 .2 .7 10
d, We 00 20 .7. 24
Time Period 3
Period 1
Period 2
Optimum Lot-Sizing Procedures
Many deliveries/ High order costs
Minimal stockkeeping/ Minimal storage costs
Few deliveries / Low order costs
More extensive stockkeeping/ Higher storage costs
Long-Term Lot Size
Exact analysis Short-term
Reqmts preview Long-term
Lot-for-lot order quantity
Monthly lot size
Reqmt
Receipt
Planning Run Executed Regularly
1 1
2 months ago
For 2 months, no events required a change in planning, so not planned during NETCH + NETPL! Problem
2 2
Today
Possible Solution: Maximum MRP period (MRP group)

Additional Restrictions
You can use these additional restrictions to further define lot sizes :
q
Short Term and Long Term Lot Size (SHORTLONGTERMLOT) (Lot Size Key LL) Minimum Lot Size Maximum Lot Size Rounding Value Rounding Profile
q q q q
Overview: Scheduling
Net Requirements Calculation Lot-size calculation
Procurement type Scheduling

BOM Explosion
Procurement Types
Procurement Types
In-house production
Stock transfer
External procurement
Production in own plant
Production in another plant
Subcontracting
Vendor
Reservation in another plant Procurement types Special procurement types

Components Components
Scheduling
The following times are taken into account : q processing time required by purchasing department (workdays) q planned delivery time of the material (calendar days) q goods receipt processing time (workdays) These times will be used to determine the release date of the planned order or purchase requisition.
Backward Scheduling for In-House Production
Planned order
Opening period In-house production time Goods receipt processing time
MRP 2
Lot-size dependent: MRP 2 Scheduling margin Lot-size independent: work scheduling key (MRP 2)
Time
Opening date
Order start date
Order finish date
Availability date
Forward Scheduling for In-House Production

Automatic, if order start date is in the past during backward scheduling
Today Planned order

In-house production time Goods receipt processing time
Time
Order start date
Order finish date
Availability date
Scheduling for External Procurement

Order start date Order finish date
In-house production time
...
Processing time for Purchasing

Customizing Plant parameters
Plnd delivery time

Non-vendor-specific: Material master Vendor-specific: Outline agreement or info record
...
Time Delivery date
Release date
Scheduling in Production Planning
Basic Scheduling
Separate scheduling for planned orders Exact to the day Basic dates calculated Order finish date
Periods
Order start date Opening date Basis for in-house production or replenishment lead time Improved performance No calculation of capacity requirements
Lead Time Scheduling

Used for production orders and routings Based on basic dates: MRP
Order header
Arbeitsvorgnge
Materialkomponenten
manual Target dates calculated (scheduled dates) Target start date Target finish date Basis for in-house production or operations Capacity requirements calculated Exact to the second
Fertigungshilfsmittel
Kosten
Plan Soll Ist
100 20 50
Order Dates for Basic Scheduling

Scheduling ind . =1, no capacity requirements
Backward scheduling
OS
Reqmts date Reqmts date Product Product
Product
OD OS OF
Assembly
OS OD OF
Available
Raw material
OD
OS OF
Available Available
Opening period Goods receipt processing time Time
OF
OD
Opening date
Lead Time Scheduling

Scheduling ind . = 2, capacity requirements are calculated
1 1
OS
Float before production
Scheduling margin key
Planned order
OF
Operations Operations (from routing) (from routing) Float after production
Scheduling margin key
2 2
OS
Order start date Production Production start date start date
10
20
30
OF
Production Production finish date finish date Order finish date
Scheduling: Significance of In-house Production Time

Calculation of planned dates Requirements date
OS OF
In- house production time from material master
Wrong in-house production time in material master?
10
20
30
40
50
Float before production
Lead time scheduling using routing
Float after production
Calculation of order dates In-house prod. time greater than scheduling in routing In-house production time shorter
Order Dates for Lead Time Scheduling
Backward scheduling
OD OS PS PF OF
Product
10
20
30 Assembly 2 in routing assigned operation 30
Assembly 1
10
20
30
Assembly 2
10
20
30 Time
OS OF
OD PS PF
Opening date Production start date Production finish date
Opening period Goods receipt processing time
Changing Dependent Requirement Dates

Order start date
Finished product
Planned order
Determining components
Component 1
Dependent reqmts w/o lead time/lead-time offset
Component 2
Dep ..reqmts Dep reqmts Lead time Lead time
Lead time
+
Lead-time offset BOM maintenance
Time
Dep ..reqmts Dep reqmts Lead-time offset Lead-time offset
Note: the lead time and lead-time offset are not taken into account in the lead time scheduling!
Overview: BOM Explosion
Net Requirements Calculation Lot-size calculation Procurement type Scheduling
BOM Explosion
BOM Explosion
Target
Usage quantity/dates
Dependent reqmts quantities and dates Component selection Change status of alternative BOM Selection of Alternative BOM Selection of BOM usage
Items relevant to production
Explosion date
Lot size Usage

Summary: BOM Selection
BOM usage by selection ID

Selection method indicator
1 Explosion date Lot size 2,3 Production version
Customizing for BOM explosion

Order start Order finish BOM explosion number
Alternative BOM selected

Customizing for BOM explosion
Order start Order finish BOM explosion number
Change status of alternative BOM determined

Selection of BOM usage
BOM Selection ID
Planned order
Priority 1 2 Usage Production Engineering Used if no valid production BOM exists
Production BOM
Engineering BOM
Costing BOM
Selection of Alternative BOM
for multipleBOMs
Alternative selection indicator in material master
Order quantity Order quantity (Lot size) (Lot size)
1 2, 3
Explosion date Explosion date
Production version Production version
Selection by Order Quantity (Lot Size)
( Selection method indicator = blank)
Multiple BOM
Alternative 1
0 = 1 es < c pie Small lot
Lot-size range 0 -10 pieces
Planned order
Alternative 2
Large lot
>1 0p iec
Lot-size range 11 - 10,000 pieces
es
Selection by Explosion Date
Customizing
Planned order
BOM explosion using
Order start date

of a planned order
Order finish date of a planned order
BOM explosion number (gross date)
Selection by Order Start
( Selection method indicator = 1)

Order start
Order 1
Order start
Order 2
Alternative BOM 1
Alternative BOM 2
Alternative BOM 3
Time Valid from (relevant to planning from) Valid from (relevant to planning from) Valid from (relevant to planning from)
Explosion Date Using the Order Finish Date

Order finish Order finish
Order 1
Order 2
Alternative BOM 1
Alternative BOM 2
Alternative BOM 3
Time Valid from (relevant to planning from) Valid from (relevant to planning from) Valid from (relevant to planning from)
Explosion Using the BOM Explosion Number

BOM explosion no. xxx Order for product
1.2.2000
BOM explosion no. xxx Order for assembly 1 BOM explosion no. xxx Order for assembly 2
BOM explosion no. xxx

Alternative finished products Alternatives for assembly 1 Alternatives for assembly 2 Gross date
Selection by Production Version
( Selection method indicator = 2 or 3)
Production version 1 Production version 2 Material master

Routing
BOM
Describes production procedure
Work center (Line production)
Defining the Change Status Using the Order Start Date

Order start Order start
Order 1 Order 2
Time
Explosion date
Explosion date Time
Change status 1 Technical change
Change status 2
Same alternative BOM

Defining Change Status Using the Order Finish Date

Order finish
Order 1 Order 2
Order finish Time Explosion date Time
Explosion date
Change status 2
Change status 3
Technical change
Same alternative BOM

Defining Change Status Using BOM Explosion Numbers

BOM explosion no. xxx Order for product
1.2.2000
BOM explosion no. xxx Order for assembly 1 BOM explosion no. xxx Order for assembly 2
BOM explosion no. xxx

Change status for product Change status for assembly 1 Change status for assembly 2
Gross date
Other MRP Functions
Planning Time Fence Discontinued Parts Alternative Parts Single and Multi Level Pegging Multi-Plant Planning Storage Location/MRP Area Blocked Storage Location Other Special Procurement
Planning Time Fence

Plan is protected from changes within the planning time fence. End date of time fence determined from planning date. You can configure system as to how you want the orders to react within the time fence. Outside the time fence, system creates order proposal as usual. When new orders move into the time fence, they may be firmed automatically depending on how the system is configured. Firming Types for MRP Planned Materials :
Orders Moving Into Firming Types TimeFence Type 1 Firmed Type 2 Firmed Type 3 Not Firmed Type 4 Not Firmed
New Order Proposals Creation Outside Time Fence No Orders Created Outside Time Fence No Orders Created
New Order Status Not Firmed NA Not Firmed NA
Carrying Out the Planning Run
Planning File Types of Planning Run

q q q
Regenerative (NEUPL) Net Change Planning (NETCH) Net Change Planning in planning horizon (NETPL)
Planning Mode Creation Indicator MRP Group vs Plant Parameters
Evaluating the Planning Run

MRP List By Material MRP List Collective Display Stock Requirements List By Material Stock Requirements List Collective Display Compare MRP List against Stock Requirement List Planning situation for Material - (same as stock requirement list ie latest situation for a material) Planning result for material - (the last MRP run for the material) - you can compare your current plan against long term planning scenarios or stock requirements list here. Situation (all plants) - Review planning situation (ie stock requirement list) for material for all plants Order Report - Review your orders in the order report Pegged Requirements - Review Pegging
Important Configurations
Most Important : :Production-->MRP-->Planning File Entries Most Important Production-->MRP-->Planning File Entries -->Activate MRP and set up planning file -->Activate MRP and set up planning file
This Configuration should be done before materials are mass This Configuration should be done before materials are mass created in aanew plant created in new plant
Plant Parameters MRP Groups MRP Types Special Procurement Types Stock Availability Lot Size Calculation Define Floats Define External Procurement BOM Explosion / Determine Routing Define Storage Location/MRP area per Plant Procurement Proposals
Implementation Decisions

Group materials with common planning profile together. Decide an MRP Type for each group of materials. Decide what the lot sizing should be for each material/group of materials. Decide for each material, whether you require safety stock and if safety stock is required, what method of planning the safety stock ? Which material require quota arrangements ? What are the materials that have to be procured from another plant ? Are there any storage locations to be blocked from planning ? Are there storage locations/MRP area needed to be planned separately ?

Sap R3MRP

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Sap R3MRP

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The purpose of MRP is to guarantee material availability by planning for procurement or production of required quantities.

Material Reqmts Planning

Convert Purchase Requisition Purchase Order Warehouse Schedule Line

SAP AG 2001, A Business View of mySAP Financials, GBU FIN - 1

Dependent requirement Planned order

Dependent requirement Purchase requisition

SAP AG 2001, A Business View of mySAP Financials, GBU FIN - 2

How the Planning Run Works

Lot Size Calculation

Procurement Type & Scheduling

SAP AG 2001, A Business View of mySAP Financials, GBU FIN - 3

Rescheduling Check for Firmed Receipts

Reschedule out Time

In-house production time + Goods receipt processing time + Rescheduling horizon

Firmed receipts: production order, purchase order, firmed planned order

Overview: Net Requirements Calculation

Net Reqmts Calculation

Scheduling BOM Explosion

SAP AG 2001, A Business View of mySAP Financials, GBU FIN - 5

MRP: Net Requirements Calculation

Sales Orders Planned Ind Reqmts

Dependent Reqmts Reservations Safety Stock Demand

Reorder point planning

based on consumption in the past

SAP AG 2001, A Business View of mySAP Financials, GBU FIN - 8

Master Data (Contd)

SAP AG 2001, A Business View of mySAP Financials, GBU FIN - 9

How the Planning Run Works Per MRP Type

Available Stock = Plant Stock + Receipts

SAP AG 2001, A Business View of mySAP Financials, GBU FIN - 10

How the Planning Run Works Per MRP Type

SAP AG 2001, A Business View of mySAP Financials, GBU FIN - 11

Quantity and Time Floats

SAP AG 2001, A Business View of mySAP Financials, GBU FIN - 12

Stock Available quantity for planning

Safety stock (not available for planning)

Safety Stock Partially Available

Statistical safety stock from material master

SAP AG 2001, A Business View of mySAP Financials, GBU FIN - 14

Dynamic Safety Stock (1)

"dynamic safety stock

Replenish to target stock if falls below minimum stock

Exception message for firmed order proposals, otherwise adjustment

SAP AG 2001, A Business View of mySAP Financials, GBU FIN - 15

Dynamic Safety Stock (2)

Dynamic Safety Stock and Range of Coverage Profile

Maximum stock Target stock Minimum stock Time

SAP AG 2001, A Business View of mySAP Financials, GBU FIN - 16

Range of Coverage Profile: Intervals (1)

Interval 3 Time Reqmts

Target stock Minimum stock Time

Range of Coverage Profile: Intervals (2)

Periods with deviating range of coverage

Target stock Minimum stock Time

SAP AG 2001, A Business View of mySAP Financials, GBU FIN - 18

SAP AG 2001, A Business View of mySAP Financials, GBU FIN - 19

Safety Time in Multi-Level Production

+ Components Reqmts time

SAP AG 2001, A Business View of mySAP Financials, GBU FIN - 20

Period Profile for the Safety Time

Overview: Lot-Size Calculation

Lot- size calculation