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7/29/2019 3405 Summit Electric Supply Increasing MRP Efficiency - Segmenting Materials by MRP Areas
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Increasing MRP Efficiency –
Segmenting Materials by MRP Areas
Saleem Tajuddin
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Real Experience. Real Advantage.
[ Personal Intro – Saleem Tajuddin
SAP Materials Management at Summit Electric Supply since2007.
9 years SAP experience – MM Certification.
Work experience - directly or indirectly with Distribution
Industry for 30+ years.
International experience in Europe, Middle East and South Asia.
Education – Bachelor of Science, and MBA from McGill
University, Montreal, Canada
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Real Experience. Real Advantage.
[ Company Intro - Summit Electric Supply
Wholesale Electrical Distributor.
In Business since 1977.
HQ in Albuquerque with 20+ locations in Southern US, UAEand Colombia, SA.
Went Live with SAP – January 2007
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Real Experience. Real Advantage.
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Learning Points
How to configure MRP Area functionality in SAP
Master Data – MRP Area
Mass Maintaining Master Data – MRP Area
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Real Experience. Real Advantage.
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Return on Investment
Implementing MRP Areas improved MRP efficiency
Before implementation – Planning Files are at Plant level.
300-400 second average execution time for a group of Plants.
After implementation - Planning Files converted to MRP Areas
Average execution time 30-40 seconds.
7/29/2019 3405 Summit Electric Supply Increasing MRP Efficiency - Segmenting Materials by MRP Areas
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Real Experience. Real Advantage.
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Increasing MRP Efficiency –
Segmenting Materials by MRP Areas
Introduction: Why segment materials by MRP Areas. A brief
look at why this was implemented.
SAP configuration for MRP Areas: Discuss the IMG nodesinvolved.
MRP Area Master Data: A look at MRP Area Material Master
Record.
Mass Maintenance of MRP Area data.
Summary: Lessons learned from this implementation.
7/29/2019 3405 Summit Electric Supply Increasing MRP Efficiency - Segmenting Materials by MRP Areas
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[ Introduction: Why MRP Areas?
Need to segregate a group of materials in a separate Storage
Location.
Need to manage this group of materials separately from theMain Warehouse.
Need to run Consumption Based Planning independently from
Main Warehouse as needed.
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[ Best Practices
SAP Configuration – MRP Areas
MRP areas – Standard SAP functionality.
Manage materials in a separate storage location [SLOC] capability of
generating Purchase Requisitions based on this SLOC.
Configure SAP as follows:
Define the SLOC in the Plant[s] concerned.
Specify how the stock in this SLOC is to be treated by
MRP/Consumption Based Planning.
Convert Planning File entries to MRP Area based instead of
Plant based.
Finally, activate MRP Areas.
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[ Configuring MRP Areas
SPRO
Enterprise Structure
Definition
MaterialManagement Maintain Storage Location for Plant
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[ Configuring MRP Areas
SPRO
Materials Management
Consumption BasedPlanning Planning Define Storage Location MRP per
Plant.
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[ Configuring MRP Areas
SPRO
Production
Material Requirements Planning
Planning File Entries Convert Planning File Entries for MRP
Areas
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[ Configuring MRP Areas
Here the planning file entries are converted from Plant based toMRP Area based.
This executes Program = RMDBVM00 which causes the system
to create new Planning File Entries This creates MRP Areas forevery Plant.
ONLY need to run this ONE TIME ONLY
Note: This does not create a transport, hence does not get
transported.
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[ Configuring MRP Areas
When we converted from Plant based to MRP Area basedPlanning Files, we observed that what was taking us 300 – 400
seconds to run for a group of Plants is now taking 30 – 40
seconds.
MRP Planning files are executed more efficiently as is evident
in a 10 fold decrease in execution time.
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[ Configuring MRP Areas
SPRO
Materials Management
Consumption Based Planning Master Data Activate MRP for MRP Areas
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[ Configuring MRP Areas
SPRO Materials Management Consumption Based Planning
Master Data MRP Areas Define MRP Areas
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[ Configuring MRP Areas
SPRO Materials Management Consumption Based Planning
Master Data MRP Areas Define MRP Areas
..Continued
When creating an MRP area, you enter the number, which must have at least 5
digits to avoid any overlapping with the plant MRP area, the description and the
MRP area type. Here we used ORLCB with description as Orlando Circuit Breaker.You must also enter a storage location as a receiving storage location. This storage
location must, however, belong to the MRP area.
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[ MRP Area Master Data
In order for this functionality to work, you MUST assign or
SEGMENT the materials you want to plan in this SLOC to the
MRP Area. This is called creating a segment for the MRP Area
in the Material Master record
Material Master - MRP1 view.
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[ MRP Area Master Data
• Material must exist in the Plant’s Main SLOC prior to extending
it to the SLOC of MRP Area.
• The material extension process into the MRP Area SLOC takes
place in 2 steps. The first step extends the material into the
MRP Area SLOC.
• In the next step, you segments the material into the MRP Area.
This allows us to setup separate MRP related field values.
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[ MRP Area Master Data
The MRP Area functionality allows you to set up separate field values for
MRP. Thus, enabling you to run MRP separately or jointly with the Plant.
Consumption values for the MRP Area are maintained separately. Thus,
have capability of setting up and running Forecasting separately from Plant.
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[ MRP Area Data
MMBE – Availability Overview
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[ MRP Area Data
MD04 - Stock Requirements List
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[ Running MRP
Though we segregate materials in MRP Area SLOC, we run MRP jobs in
background by Plant. This way, we don’t have to run the MRP Area
separately.
We still have the capability of running MRP by material/MRP Area as
needed.
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[ Mass Maintenance of MRP Area Data
Materials that have been extended to MRP Area SLOC and segmented can
have different Master Data related to MRP and Forecasting.
SAP Table for MRP Area = MDMA
SAP has program = RMMDDIBE which allows us to Mass Maintain Master
Data related to MRP and Forecasting for a given MRP Area.
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[ Mass Maintenance of MRP Area Data
Can create or change MRP or Forecast data for a material or
group of materials in MRP Area[s].
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Real Experience. Real Advantage.
[ Mass Maintenance of MRP Area Data
In order to change MRP data, need to give value to the field,
and check the box besides the field in order to make the
change.
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Real Experience. Real Advantage.
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Key Learning Points - Summary
MRP Areas allow us to segregate materials and run MRP based on separate
parameters than that of Plant.
MRP on MRP Areas can be run separately or along with the Plant.
When we converted from Plant based to MRP Area based Planning Files,
we observed that what was taking us 300 – 400 seconds to run for a group
of Plants is now taking 30 – 40 seconds.
MRP Planning files are executed more efficiently as is evident in a 10 folddecrease in execution time.
7/29/2019 3405 Summit Electric Supply Increasing MRP Efficiency - Segmenting Materials by MRP Areas
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] Thank you for participating.
SESSION CODE: 3405
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