MRP Planning Run

LOG-IM-001
LOG-IM-001
November 05, 2008

LaGOV
Version 1.00

Last updated: 11/7/2008 8:56 AM

 Agenda

 Logistics, Ground Rules & Introduction

 Workshop Objectives
 Project Overview/Timeline
 Business Process Review
– SAP terms glossary
– As Is Process Discussions
– Process improvement opportunities
– SAP concepts & functionality
– Leading practices
– Enterprise readiness challenges
 Action Items
 Questions

2
 Logistics

Before we get started ...

3
 Ground Rules

 Has everybody signed in?

 Everybody participates – blueprint is not a
spectator sport
 Silence means agreement
 Focus is key – please turn off cell phones and
close laptops
 Challenge existing processes and mindsets
 Offer suggestions and ideas
 Think Enterprise
 Ask questions at any time
 One person at a time please
 Creativity, cooperation, and compromise

4
 Introduction

 Roles
 Process Analyst and Functional Consultant (IBM) –
lead and facilitate the discussions and drive design
decisions
 Documenter (State Employee) – take detailed notes to
support the formal meeting minutes to be sent by the
Process Analyst to all participants for review and feedback
 Team Members (LaGov) – provide additional support for
process discussions, address key integration touch points
 Subject Matter Experts – advise team members on the
detailed business process and participate in the decisions
required to design the future state business process

Round the Room Introductions

Name
Position
Agency
5
 Blueprint Schedule - Tentative

 Please refer to the handout for the upcoming

Blueprint Sessions

6
 Blueprint Objectives

1. Review and discuss the current or As-Is Business Processes

2. Define Master Data – Info Record, Source List, Quota
Arrangement
3. Define Future or To-Be Business Processes
4. Identify Development Requirements:
• Forms
• Reports
• Interfaces
• Conversions
• Enhancements
• Workflow
5. Understand and communicate any Organizational Impact /
Enterprise Readiness Challenges
6. Gather system Security Authorizations and State-wide Training
Requirements
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 Today’s Workshop Objectives
TOPICS TO BE DISCUSSED
 MRP execution control parameters
 MRP execution
 Manual ad hoc
 Automatic mass processing
 MRP evaluation and output processing

 System Demo
 MRP output evaluation
 Purchase order cycle
 Purchase requisition/planned order management
 Conversion of planned order to purchase requisition - option
 Purchase requisition release - option
 Purchase order creation based on requisition
 Goods receipt for purchase order
 Invoice receipt for purchase order
 Stock transport order cycle
 Stock transport requisition
 Stock transport order creation based requisition
 Goods issue for STO
 Monitor stock in transfer
 Goods receipt for STO
 Reservations and issues for consumption

8
AS-IS Process Flow

9
10
 As-Is Reorder Point Planning

Receive Warehouse
Warehouse
report Manager
Manager creates
listing Determines
requisitions for
items what is to
inventory
below be
replacement
min/max reordered

Friday, November 07, 2008 11

11
 SAP Glossary

 Regenerative Planning (NEUPL) – During regenerative planning, all materials are

planned for a plant. This makes sense when you are carrying out the planning run for
the first time as well as later during production if data consistency cannot be
guaranteed due to technical error.
 Net Change Planning (NETCH) – In net change planning, only those materials are
planned for which the net change planning indicator in the planning file has been set
as a planning file entry. The system usually sets the indicator automatically as soon
as a change is made to the material that is relevant to MRP.
 Net Change Planning in the Planning Horizon (NETPL) – With this option, the
system only plans materials that have undergone a change that is relevant to the
planning run within the period which you defined as the planning horizon.
 Planning File - The planning file contains a list of all materials relevant to the MRP
planning run. The following changes cause an entry in the planning file to be made:
 Material created with an MRP relevant MRP type
 Changes to stock, if these change the stock/requirements situation of the material
 Creation of purchase requisitions, purchase orders, planned orders, sales requirements,
forecast requirements, dependent requirements or reservations
 Changing to fields that are relevant to the planning run for these receipts and issues or in the
material master
 Deleting receipt or issue quantities

12
 SAP Glossary

 Exception Messages – During the planning run, the system recognizes exceptional
situations where you usually have to manually reprocess the planning result and it
records these situations as exception messages. The system displays the exception
messages in the evaluations for MRP.
 Planned Order – Internal planned output from MRP that can be changed, rescheduled
or deleted at any time. It can also be converted into either a production order or a
purchase requisition. Planned orders are re-planned by MRP unless they have been
fixed.
 Purchase Requisition – Internal planned output from MRP that can be changed,
rescheduled or deleted at any time. It can also be converted into either a purchase
order or request for quotation. Purchase requisitions are re-planned by MRP unless
they have been fixed.
 Purchase Order – Firm commitment to an external vendor for procurement of
materials or services. Purchase orders are not planned by MRP. If the MRP
determines a conflict between demand and supply, exception messages are issued.
 Production Order – Firm commitment for internal manufacturing or assembly.
Production Orders are not planned by MRP. If the MRP determines a conflict between
demand and supply, exception messages are issued.

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 MRP Execution
Control Parameters

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 MRP Execution Control Parameters

 Processing Key
 You can choose whether all materials are to be planned or only those
with MRP relevant changes.
 Creation indicator for procurement proposals for materials
that are procured externally
 You can choose whether planned orders, purchase requisitions or
schedule lines should be created for materials that are procured
externally.
 Creation indicator for MRP lists
 You can define whether MRP lists are to be created.
 Planning mode
 You can determine how the system is to deal with procurement
proposals (planned orders, purchase requisitions, scheduling
agreement lines) from the last planning run, which are not yet firmed,
in the next planning run.
 Scheduling
 You can choose basic date calculation or lead time scheduling.
15
Parameters for Single Item, Single Level MRP
- executed ad hoc by Warehouse

16
Parameters for Total Planning Run
- automatic every night

17
MRP Execution

18
Execution of Single Item, Single Level MRP
- executed ad hoc by Warehouse

Can be set as
default values

19
Defining Total Planning Run

20
Schedule Automatic Total Planning Run

21
 MRP Evaluation
and Output Processing

22
 MRP List

 Definition of the MRP List

 The system creates MRP lists during the planning run

according to how you set the creation indicator. These
lists contain the planning result for the material. The
MRP list always displays the stock/requirements situation
at the time of the last planning run and it also provides a
work basis for the MRP controller. Changes that are
made after the planning date are not taken into
consideration, so the list is static.

 MRP lists are stored in the system until they are either
deleted manually or replaced by new lists from a
subsequent planning run.

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 Stock Requirements List

 Stock/Requirements List
 In the stock/requirements list, the most up-to-date stock
and requirements situation is displayed.

 The main difference between the MRP list and the

stock/requirements list is that each time the
stock/requirements list is called up, the system selects
the various MRP elements and displays the most up-to-
date situation. You thus always see the current
availability situation of the material in the
stock/requirements list. Changes that are made after the
planning date are displayed directly, so the list is
therefore dynamic.

 Stock/requirements lists are not saved in a fixed state in

the system, but are subject to change and only exist in
the working memory.
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 Exception Messages in
MRP List and Stock Requirements List

SelGr Exc. Exception Message SelGr Exc. Exception Message

0 69 Recursive BOM components possible 5 50 No BOM exists
1 02 New, and opening date in the past 5 52 No BOM selected
1 05 Opening date in the past 5 53 No BOM explosion due to missing config.
2 03 New, and start date in the past 5 54 No valid run schedule header
2 06 Start date in the past 5 55 Phantom assembly not exploded
2 63 Production start before order start 6 25 Excess stock
3 04 New, and finish date in the past 6 26 Excess in individual segment
3 07 Finish date in the past 6 40 Coverage not provided by master plan
3 64 Production finish after order finish 6 56 Shortage in the planning time fence
4 01 Newly created order proposal 6 57 Disc. matl partly replaced by follow-up
4 42 Order proposal has been changed 6 58 Uncovered reqmt after effective-out date
4 44 Order proposal re-exploded 6 59 Receipt after effective-out date
4 46 Order proposal has been manually changed 6 70 Max. release qty - quota exceeded
4 61 Scheduling: Customizing inconsistent 6 96 Stock fallen below safety stock level
4 62 Scheduling: Master data inconsistent 7 10 Reschedule in
4 80 Reference to retail promotion 7 15 Reschedule out
4 82 Item is blocked 7 20 Cancel process
7 30 Plan process according to schedule
8 98 Abnormal end of materials planning

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MRP List: Materials List

Exception message
group

Tracking of which
materials have
been processed

26
 Individual MRP List

Each purchase
requisition can be
accessed from here
and modified as
needed.

Individual exception
message

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Stock/Requirements List: Material List

No tracking possible

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Individual Stock/Requirements List

Notice stock quantity

is different than in
MRP List

29
Stock Overview

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List Display of Purchase Requisitions
- Selection Criteria

31
List Display of Purchase Requisitions
- Output

Each purchase
requisition can be
accessed from here
and modified as
needed.

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 Releasing Procurement Proposals
to Purchasing - Option 1

 Purchase Requisitions as MRP output that the

Warehouse releases for processing in Procurement
 The system creates purchase requisitions. Once the MRP
controller is satisfied with the results of planning, the purchase
requisitions are released and passed on to the purchasing
department.

 This option makes the order proposals that the Warehouse has
released to purchasing less visible in the MRP List and Stock
Requirements List because the individual requisition has to be
opened to determine if it has been released.

 A purchase requisition cannot be released from the MRP List

or Stock/Requirements List. It requires an additional
transaction to release the requisition to purchasing.

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 Releasing Procurement Proposals
to Purchasing - Option 2

 Planned Orders as MRP output that the Warehouse

converts into Purchase Requisitions for processing
in Procurement
 The system creates planned orders. Once the MRP
controller is satisfied with the results of planning, the
planned orders are converted into purchase requisitions
and passed on to the purchasing department.

 This option makes the order proposals that the

Warehouse has released to purchasing very visible in the
MRP List and Stock Requirements List.

 Planned orders can be converted to requisitions directly

in the MRP List or Stock/Requirements List and does not
require an additional transaction.

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Conversion of Planned Order
into Purchase Requisition

By converting the planned

order into a purchase
requisition, the Warehouse
releases the order proposal to
Purchasing

35
 Requisition Release
from Warehouse to Purchasing

A Release strategy can

be applied so MRP
generated requisitions
cannot be converted into
Purchase Orders until
they are released by the
Warehouse.

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System Demo

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 Questions?
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