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Unit OverviewBased on the functions that the participants have learnt up to now, there aresome additional processes that not all users of demand management and materialrequirements planning use.
This concluding unit gives you an overview of these processes.
These processes are master production scheduling for favored planning of important parts and long-term planning under which simulated planning is carried out in ECC,separated from productive planning procedures.
In addition, this unit deals with scenarios of multi-site planning (for example,cross-plant stock transfers) and finally MRP areas, for example, for separaterequirements planning for individual locations.
Unit Objectives
After completing this unit, you will be able to:• Define master schedule items• Create the connection between master production scheduling and material
requirements planning• Name the objectives of long-term planning• Analyze the business environment of long-term planning• Describe the long-term planning scenario• Execute long-term planning• Transfer and receive firmed orders• Perform and use multi-site planning
• Describe plant organization with MRP areas• Characterize MRP area types• Set up MRP areas• Make specific settings for storage location MRP areas
Lesson OverviewYou can use master production scheduling to plan certain materials that are importantfor the planning process separately to other less important materials.
Lesson ObjectivesAfter completing this lesson, you will be able to:
• Define master schedule items• Create the connection between master production scheduling and material
requirements planning
Business ExampleImportant materials that are critical to planning should be planned separately tonormal material requirements planning, with greater attention paid to them.
Master Production Scheduling and Material RequirementsPlanning
Figure 155: Master Production Scheduling and Material Requirements Planning(1)
Master production scheduling (MPS) enables you to plan materials that have greatinfluence on value creation for a company, or that use critical resources and thereforeneed to be planned more carefully. It is normally the case for these materials that themaster production schedule is first defined at the level of this critical or importantmaterial before the dependent assemblies and purchased parts are planned and procured. This means that changes made to these critical parts must not be passed onto the dependent parts immediately, in order to avoid any disruption during productionand procurement of purchased parts.
You plan the master schedule items (MPS items) and the non-master schedule items inseparate planning runs. You can specify finished products or assemblies for master schedule items provided that you have entered a corresponding MRP type for each plant or each MRP area in the “MRP 1” view of the material master. You mustdefine the MRP procedure “M” (master schedule item procedure) in this MRP type inCustomizing for MRP types (Customizing activity “Check MRP Types”).
The master production scheduling run only plans the master schedule items. Master production scheduling is executed with the same logic as material requirements planning. Dependent requirements are created for the next low-level code.
The results of master production scheduling are not passed on to dependent parts untilthe master plan for the critical parts has been processed and finely-tuned. Master schedule items are not planned along with the MRP run to ensure that you can planthese materials independently.
Exercise ObjectivesAfter completing this exercise, you will be able to:• Explain the relationship between master production scheduling and material
requirements planning.
Business ExampleSince some finished products, including pump T-F1## use critical resources, theyshould be defined as master production items and planned separately. To do this, the project team examines the relationship between the planning of master schedule itemsand non-master schedule items.
Task 1:
Hint: Note: In this exercise, you will work with the material T-F1 ## in plant 1000 , and not with R-F1##!
If MRP elem ents still exist for T-F1## from previous exercises, clean upthese first.
Define material T-F1 ## in plant 1000 as a master schedule item .
1. Which indicator do you use to make this setting?
Task 2:Make sure that strategy group 40 is entered in the material master for the pump
T-F1 ## in plant 1000 , as well as consumption mode 2 and forward/backwardconsumption period 30 days respectively.
1. Create the following planned independent requirements for pump T-F1 ## in plant 1000 (version 00 ):
Current month + 2 Current month + 3 Current month + 4
100 100 100
Save your entries.
Task 3:Try to execute single-item, multilevel planning for material T-F1 ## in plant 1000( MD02 ).
1. Is this possible? _____________
Task 4:Execute single-item, single-level planning for master schedule items (MD42) for material T-F1 ## in plant 1000 from the master production scheduling menu. Use the preset parameters.
1. Call or refresh the stock/requirements list . Are the planned independent
requirements now covered by corresponding procurement elements? ______________________________________________________
2. Check the planning file. Which of the following indicators are now set?
Master schedule item (MPS) ___________
Planning indicator NETCH ___________
Planning indicator NETPL ______
Task 5:From the master production scheduling menu, call the initial screen for online total planning for master schedule items (MD40) .
1. Which indicator determines whether planning should consider only master schedule items or also non-master schedule items?
a) MRP type for master schedule item with firming type 0: M0 (can beverified in the material master in the MRP 1 view, F4 help for the MRP Type field )
3. Check the planning file for the material T-F1 ## in plant 1000 . Which of thefollowing indicators are set?
Master schedule item (MPS) ___________
Planning indicator NETCH ___________
Planning indicator NETPL _____
a) Menu path: Logistics ! Production ! MRP ! Planning ! Planning File Entry ! Display
Indicators set in the planning file:
Master sche dule item: Yes
Planning in dicator NETCH YesPlanning indicator NETPL Yes
Task 2:Make sure that strategy group 40 is entered in the material master for the pump
T-F1 ## in plant 1000 , as well as consumption mode 2 and forward/backwardconsumption period 30 days respectively.
1. Create the following planned independent requirements for pump T-F1 ## in plant 1000 (version 00 ):
Current month + 2 Current month + 3 Current month + 4
100 100 100
Save your entries.
a) No solution required
Task 3:Try to execute single-item, multilevel planning for material T-F1 ## in plant 1000( MD02 ).
1. Is this possible? _____________
a) Single-item, multi-level planning for master schedule item possible: No
Task 4:Execute single-item, single-level planning for master schedule items (MD42) for material T-F1 ## in plant 1000 from the master production scheduling menu. Use the preset parameters.
1. Call or refresh the stock/requirements list . Are the planned independentrequirements now covered by corresponding procurement elements?
Lesson OverviewLong-term planning enables you to simulate a demand program at all BOM levels.
Lesson ObjectivesAfter completing this lesson, you will be able to:
• Name the objectives of long-term planning• Analyze the business environment of long-term planning• Describe the long-term planning scenario• Execute long-term planning
• Transfer and receive firmed orders
Business ExampleYou want to use long-term planning to assess the feasibility of new demand programs.
The firmed master production schedule is to be transferred to operative planning.
Objectives of Long-Term Planning
• Simulation of a demand program at all BOM levels• Reconciliation of capacities
• Reconciliation of cost center planning• Purchasing forecast• Inventory controlling forecast
In long-te rm planning, future demand programs are simulated within a planning run.Capacity requirements, the activity type requirement of the cost centers, and the purchased parts requirement can be calculated in this way. The demand program thatcan be simu lated may include planned independent requirements and/or sales orders.The material requirements planning, capacity planning, order volumes, purchasing budget, cost center planning and inventory controlling can be evaluated and optimizedfrom the s imulation. After the simulative planning results are evaluated, the previousdemand program can be replaced with the preferred long-term planning version. The
external procurement data can be transferred to the purchasing information systemusing a s pecial report and evaluated there. Future stock is derived from existingrequirements and future receipts. The data determined in long-term planning for therequirements/stock situation can be transferred to inventory controlling and evaluatedthere using the standard analysis.
The data determined in long-term planning for the activity requirement is transferred toCost Center Accounting as planning data. This allows you to calculate the productioncosts for each cost center and to cost the products. The activity requirements that aredetermined in long-term planning can be transferred to Cost Center Accounting usinga separate report after long-term planning has been completed. The planning data for the cost centers is updated by determining the activity requirements from the routingdata. Cost Center Accounting displays how many activities production has planned.
Figure 157: Simulative Planning Areas
The principle of long-term planning is to simulate different versions of the demand program. The simulation can include operative data (for example, master data, salesorders , purchase orders, production orders). The simulation can be used to optimizematerial requirements planning, capacity planning, order volumes, purchasing budget,cost center planning, and inventory controlling in the demand program and the production and procurement data.
In long-term planning, independent “planning areas” can be created that are integratedinto operative planning. Within these planning areas, separate simulation stock data iscalculated and maintained which can be used to carry out planning in scenarios. Ansepar ate simulative planning area exists for each scenario in the system. Operative
data can be copied to or referenced (taken into account) by one or more simulative planning areas.
Simulative planning can be executed for the long term or short term. There is notime restriction on the execution of long-term planning. The planning periods for long-term planning and operative planning should be coordinated to avoid businessinconsistencies.
Figure 158: Embedding in the Functional Environment
Long-term planning can be executed on the basis of operative master data: bill of materials, routings and material master records. Therefore, you do not have to createany new operative data. If you want to simulate situations that use different master data, you can also create special master data for long-term planning:
• You can create special long-term planning routings and run simulationswith regard to lead time scheduling and capacity planning. To do this, youmust maintain a routing selection ID that controls the long-term routing inCustomizing. This selection ID is assigned to a scenario, that is, a simulative planning area, in the Customizing IMG activity “Define Scheduling Parametersfor Planned Orders”.
• In addition, you can use special long-term planning BOMs. To do this, youdefine a special usage for long-term planning in the Customizing IMG activity“Define BOM Usages” and determine the allowed material types for the BOMheader and BOM item for this usage. In the Customizing IMG activity “DefineOrder of Priority for BOM Usages”, you then maintain a BOM selection IDthat calls up the long-term BOM. This selection ID is assigned to a simulative planning area when creating the scenario in the “BOM selection ID” field. Thetools available for long-term planning are used in the same way as the tools inoperative planning. Therefore, very little additional training is required.
You can exclude BOM items from long-term planning using the explosion controlindicator in the individual items.
When you create a planning scenario, you load certain settings for the scenario by selecting one of the following default settings: “Long-term planning”, “Grosslong-term planning” or “Short-term simulation”. You can change these default settingsat any time. You can also copy the settings from another scenario. If you select the“Gross Long-Term Planning” indicator on the initial screen, the system proposescontrol parameters for planning the requirements quantities for cost evaluation and budgeting purposes, without taking operative, available stocks, material-specificlot sizes or scrap into account.
In the planning scenario, the settings you make and items you define include:
• The plants for which the simulation is to be executed• The planned independent requirements versions (active or inactive) that are
to be simulated• The opening stock on which the simulation is based (zero stock, safety stock,
plant stock at the time of planning, average plant stock)• Whether fixed receipts (purchase orders, production orders, material
reservations) are to be included in the net requirements calculation• Whether dependent requirements are generated for consumption-based materials,
KANBAN materials and bulk material• Which version of the available capacity is used in the simulation.
Consumption-based materials are not planned in MRP because no dependentrequirements are created for these materials. In consumption-based planning,materials are not replenished during the MRP run until stock falls below the reorder point, or in forecast-based planning until the forecasts for future consumptionrequirements are not covered.
In long-term planning, dependent requirements can be created for consumption-basedmaterials, bulk material, and KANBAN materials, that is, the material is planned inthe scenario as though it were a material planned using MRP. You are thus providedwith a preview of the procurement quantities that are necessary to satisfy the simulatedindependent requirements.
You can analyze the forecast more closely in the Purchasing Information Systemin the long-term planning evaluations.
• Whether the system should work with direct production, that is, whether during
planning it should create a collective order for materials that are to be produceddirectly. When using direct production in long-term planning, only the header order can be changed and not the subordinate orders in the collective order.
• Whether the long-term planning should be executed as gross requirements planning and whether the calculation of scrap in the long-term planning runshould be deactivated.
• Whether long-term planning BOMs should be used.• Whether firmed planned orders are to be transferred (copied) from operative
material requirements planning to long-term planning (the firmed plannedorders can be changed) and whether firmed purchase requisitions in operative planning are to be taken into account in the simulative planning area (these
cannot be changed).• Whether the planning time fence applies in long-term planning for materials that
are affected by a planning time fence in MRP.• Whether sales orders are to be included in long-term planning (these cannot be
changed from long-term planning).• Whether make-to-order production or individual project planning should be
executed for the materials in the corresponding strategy. Make-to-order planning presupposes that sales orders with a requirements type for make-to-order planning are taken into account. If the “Make-to-order and project planning”indicator is not set, the sales orders with a make-to-order planning requirementstype are ignored in the scenario.
Several p lanned independent requirements versions can be created for one material.
Planned independent requirements versions can be created using the following:
• The sales and operations planning for a material or a product group• The results of flexible planning from sales and operations planning• Forecasting• Planned i ndependent requirements of other materials• Planned independent requirements versions of the same materials• Manually
A planned independent requirements version can be set as active or inactive. Inactiveversions are created for simulation purposes. Only active planned independentrequirements versions are taken into account in operative planning.
If, according to the settings in the scenario, sales orders are included along with planned independent requirements in the simulative planning area, then these areconsume d here according to the same logic as in operative demand management.
A planning scenario must be released before long-term MRP can be carried out.Once the planning scenario is released, planning file entries for all materials of the plants t hat are assigned to the planning scenario are created in the background.Each scenario thus has its own planning file for long-term planning. Depending on
how the scenario is configured, external requirements and fixed receipts may betransf erred to long-term planning in addition to the assigned planned independentrequirements. If you set the “Consider Sales Orders” indicator, sales orders and alsoSD scheduling agreements, contracts and deliveries can be taken into account. The“Incl ude Firm Receipts” indicator, on the other hand, refers to production orders, purchase orders, scheduling agreement schedule lines, reservations, shipment releasesand QM inspection lots. Operative data that flows into long-term planning cannot be changed in the simulative planning area. Firm operative planned orders arethe exception: The order headers for firmed planned orders (i.e., basic dates andorder quantity) are copied to the simulative area, but the capacity requirements anddepe ndent requirements are not copied in. (You control the transfer of firmed plannedorders in the initial screen of the planning run.) Only (simulative) planned orders arecreated in long-term planning. Long-term planning can be executed as total planning,single-item planning, single-item planning in simulation mode or using the repetitivemanufacturing planning table. After the simulative planning results have beenevaluated and adjusted, the required planned independent requirements version can
be activated in the planning scenario and assigned a new version number if required.When you activate the planned independent requirements version, it becomes relevantfor operative planning. You can also transfer firmed, simulative planned orders fromlong-term planning to operative planning.
Figure 164: Transferring Firmed Planned Orders
You can copy firmed planned orders from operative MRP to the simulative planningarea. Only the planned order headers are copied during the copying process. Changesto components of planned orders that have been made in operative planning are notcopied. With simulative planning, the planned order components are created againaccording to the BOM selected in the simulative planning run.
The firmed planned orders are copied per material by the simulative planning runin the simulative planning area. During this process, all firmed planned ordersare selected for each material of a BOM structure and are adopted (copied to thesimulative planning area). These are also firmed in long-term planning but can bechanged manually there.
The order finish date of the planned order that was selected and copied last is savedas the temporary end of the copying period for each material. The copying period isdetermined by the firmed operative planned order that is furthest in the future.
When copying a firmed planned order from operative planning, all firmed andunfirmed simulative planned orders in the simulative planning area with order finishdates within the copying period are deleted.
The same capacity planning functions are available in long-term planning as for material requirements planning. Capacity planning can be called from plannedorder processing, the planning result for single-item planning, or from thestock/requirements list.
In the capacity check of the stock/requirements list, the available capacity, the totalcapacity requirements independent of materials and the capacity requirements of this
material are displayed in periods for each work center and capacity category. Overloadsituations are highlighted in color. The overload function calculates the maximum loadfor each work center and capacity category and the overload is highlighted in color.
A planning run with the scheduling indicator “2” (lead time scheduling and capacity planning) is a prerequisite for the capacity check. The planning run with schedulingindicator “1” (basic date scheduling) does not reduce capacity requirements.
Figure 167: Long-Term Planning and Operative Planning
The operative demand program results from the total of all active planned independentrequirement versions.
You can “activate” a planned independent requirement in two ways:
1. By setting the active indicator of the planned independent requirementsversion: as the operative planning is the total of all active planned independentrequirements versions, this procedure is the equivalent of an addition to the plan up to now.
2. “Activate” it in the scenario: The source planned independent requirementsversion is then transferred (copied) into a target planned independentrequirements version. If an active version is selected as the target version for the transfer and the periods in which planned independent requirements exist inthe source and target versions overlap, the planned independent requirementsof the target version are overwritten by the planned independent requirementsof the source version in these overlapping periods.
Following the simulation, you can transfer firmed simulative planned orders for asimulative planning area to operative planning (copied to the operative planning area).In the operative area, you can create purchase requisitions or schedule lines for materials procured externally.
This type of copying is carried out for a material in the transaction “interactivesingle-item planning” in operative MRP. In the following screen of the planningresults, copying is triggered using the Edit ! Copy Simulative Planned Ordersfunction. You explicitly define the start and finish of the copying period for this process.
All firmed planned orders with order finish dates within the selected period are copiedfrom the simulative planning area to the operative planning area. In the operative planning area, all firmed and unfirmed planned orders with an order finish date withinthe copying period are deleted, so that only the copied planned orders remain inoperative planning in this period.
If operative planned orders were converted into production orders before the transfer,the production orders still remain after the transfer of the planning results and thecopied firmed planned orders are added to them. You can avoid unnecessary double procurement if you convert the planned orders into production orders before the startof simulative planning and have defined in the planning scenario that all firmedreceipts are taken into account in long-term planning.
After the simulation, you can transfer firmed simulative planned orders for asimulative planning area to operative planning. For materials procured externally, youcan create firmed purchase requisitions or firmed schedule lines for simulative plannedorders with order type “NB” when transferring the orders to the operative area. Todo this, enter the respective creation indicators in the initial screen of interactivesingle-item planning in the MRP menu in the “Create Purchase Requisition” and“Schedule Lines” fields (purchase requisitions or schedule lines, schedule lines in the
opening period or purchase requisitions in the opening period). For schedule lines to be created, the scheduling agreement item must be entered in the firmed simulative planned order before the transfer takes place. You achieve this by maintainingthe scheduling agreement item as relevant to MRP before the long-term planningrun in the simulative area. After the transfer, the firmed planned orders, purchaserequisitions, and schedule lines are displayed in the planning result. Once you savethe planning result, the transfer to operative planning is complete. If there werenon-firmed purchase requisitions and schedule lines in the copying period in operative planning, these are deleted during the transfer of the planning result, and the purchaserequisitions and schedule lines that were created during the transfer are used in theoperative planning. If the purchase requisitions and schedule lines were firmed inoperative planning, they are still used after the transfer of the planning results. Youcan avoid unnecessary double purchase requisitions and schedule lines, if you have set beforehand in the planning scenario that all firmed receipts are taken into account inthe long-term planning.
Exercise ObjectivesAfter completing this exercise, you will be able to:• Create a scenario for long-term planning,• Execute and evaluate a long-term planning run.
Business ExampleA future demand program is to be simulated for pump R-F1 ## in plant 1000 ,and a capacity consideration should also be made. Dependent requirements for consumption-based materials should also be calculated in order to check the existingframework agreements with the vendors.
Task 1:Check or change material masters:
1. Make sure that strategy group 40 is entered in the material master for thefinished product R-F1 ## in plant 1000 , as well as consumption mode 2 andforward/backward consumption period 30 days respectively ( MRP 3 view).
2. From the long-term planning menu, enter the inactive planned independentrequirements for the material R-F1 ## in plant 1000 in the planned independentrequirement version ##. Set the planning period to monthly format byentering the indicator M in the planning period field in the initial screen for
the transaction. In the Selected version field, enter the planned independentrequirement version ## (= your group number). Start the transaction and createthe following requirements:
Current month + 7 350
Current month + 8 350
Current month + 9 350
Current month + 10 350
Current month + 11 300
Current month + 12 450
Hint: Remember that you have to deactivate the active indicator .
1. From the long-term planning menu, create a planning scenario in order tosimulate the demand program for planned independent requirement version ##.When accessing the scenario, choose the default value indicator Long-termplanning .
Use the following data::
Scenario number: 0## (## = group number)
Text of scenario: Long-term scenario ##
Confirm your entries with Enter and make the following settings:
Planning period From 1. Day of the current month + 7
To Last day of the current month + 12
Safety stock as opening stock;
Generate dependent requirements for consumption-based planningmaterials;
Do not include sales orders from operative planning;
Switch off the planning time fence;
Do not use direct production;
Do not use make-to-order and project planning;
Do not include firm receipts (purchase orders, production orders, andmaterial reservations);
Do not include firm purchase requisitions;
Do not include firm planned orders.
Do not exit the transaction.
2. The planned independent requirement version ## in plant 1000 is to be simulated
in the scenario. To do this, assign plant 1000 to the scenario by choosing Plantsand making the respective entry with New Entry . Confirm your entry.
Then choose Planned Independent Requirements and New Entry , enter plannedindependent requirements version ## and Confirm this entry also.
3. Release the scenario. To do this, execute the Release + Save function in thescenario. The planning file entries for the materials in the assigned plants should be created immediately .
Task 3:Examine the current requirements/stock situation for scenario 0##. To do this, call thestock/requirements list from the evaluations for long-term planning and enter materialnumber R-F1 ##, plant 1000 , and scenario 0##.
Hint: It is a good idea to call the stock/requirements list for the scenario in aseparate session, since you use it to constantly monitor the planning progress.
1. Does the system display the planned independent requirements for the version## that flow into scenario 0## in the list?
2. Do these planned independent requirements that flow into scenario 0## alsoappear on the operative stock/requirements list that you access from the MaterialRequirements Planning menu?
Task 4:Execute long-term planning for material R-F1 ## in plant 1000 and scenario 0##.Since you want to look at the capacity situation in scenario 0## later, which is relevantfor the production of material R-F1 ##, the capacity requirements should be created inlong-term planning. From the long-term planning menu, call (long-term) single-item,multilevel planning .
1. Enter the following parameters on the initial screen:
2. Switch to material R-T3 ## in the stock/requirements list for scenario 0##. Whatis the MRP type of the material and what significance does this have?
Task 6:Evaluation of the capacity situation: From the stock/requirements list for material
R-F1 ## in plant 1000 for scenario 0##, go to the capacity situation .Select Detailedplnng as the planning type and weeks as the period overview . For the evaluationperiod , enter the start and end dates of the planning period that you have alreadyentered in the scenario definition (the first day of the current month + 7 to the lastday of the current month + 12 ). To start the capacity evaluation, press Continue .
1. Did the system create any capacity overloads? _____________________
Hint: You can use the arrow at the very bottom in the transaction toswitch betw een capacities.
2. How many percent overload at which work center, in which capacity category,and in what period (enter some data as an example)?
Work cente r Capacitycategory
Period Max. load ( in percent)
Task 7:In the period with the largest overload, select the Total Requirement field (absoluteamounts, not as a percentage) and choose the Pegged requirements button to evaluate
the pegged capacity requirement.1. Which planned orders cause the capacity load?
2. To adjust the capacity load to suit the available capacity, reduce the plannedindependent requirements for the last of the planned orders causing thecapacity overload by 50 pieces (take account of your version number ##).
Hint: Make sure that the active indicator is not / will not be set in the planned independent requirement.
Save the changed planned independent requirements.
1. Make sure that strategy group 40 is entered in the material master for thefinished product R-F1 ## in plant 1000 , as well as consumption mode 2 andforward/backward consumption period 30 days respectively ( MRP 3 view).
a) Menu path: Logistics ! Production ! Master Data ! Material Master ! Material ! Change ! Immediately
2. From the long-term planning menu, enter the inactive planned independentrequirements for the material R-F1 ## in plant 1000 in the planned independentrequirement version ##. Set the planning period to monthly format by
entering the indicator M in the planning period field in the initial screen for the transaction. In the Selected version field, enter the planned independentrequirement version ## (= your group number). Start the transaction and createthe following requirements:
Current month + 7 350
Current month + 8 350
Current month + 9 350
Current month + 10 350
Current month + 11 300
Current month + 12 450
Hint: Remember that you have to deactivate the active indicator .
Save the planned independent requirements.
a) Menu path: Logistics ! Production ! Production Planning ! Long-Term Planning ! Planned Indep. Reqmts ! Create
1. From the long-term planning menu, create a planning scenario in order tosimulate the demand program for planned independent requirement version ##.When accessing the scenario, choose the default value indicator Long-termplanning .
Use the following data::
Scenario number: 0## (## = group number)
Text of scenario: Long-term scenario ##
Confirm your entries with Enter and make the following settings:
Planning period From 1. Day of the current month + 7
To Last day of the current month + 12
Safety stock as opening stock;
Generate dependent requirements for consumption-based planningmaterials;
Do not include sales orders from operative planning;
Switch off the planning time fence;
Do not use direct production;
Do not use make-to-order and project planning;Do not include firm receipts (purchase orders, production orders, andmaterial reservations);
Do not include firm purchase requisitions;
Do not include firm planned orders.
Do not exit the transaction.
a) Menu path: Logistics ! Production ! Production Planning ! Long-Term Planning ! Scenario ! Create
2. The planned independent requirement version ## in plant 1000 is to be simulatedin the scenario. To do this, assign plant 1000 to the scenario by choosing Plantsand making the respective entry with New Entry . Confirm your entry.
Then choose Planned Independent Requirements and New Entry , enter plannedindependent requirements version ## and Confirm this entry also.
a) No solution required 3. Release the scenario. To do this, execute the Release + Save function in the
scenario. The planning file entries for the materials in the assigned plants should be created immediately .
a) No solution required
Task 3:Examine the current requirements/stock situation for scenario 0##. To do this, call thestock/requirements list from the evaluations for long-term planning and enter materialnumber R-F1 ##, plant 1000 , and scenario 0##.
Hint: It is a good idea to call the stock/requirements list for the scenario in aseparate session, since you use it to constantly monitor the planning progress.
1. Does the system display the planned independent requirements for the version## that flow into scenario 0## in the list?
a) Menu path: Logistics ! Production ! Production Planning ! Long-Term Planning ! Evaluations ! Stock/Reqmts List
Planned independent requirements of version ## displayed: Yes
2. Do these planned independent requirements that flow into scenario 0## alsoappear on the operative stock/requirements list that you access from the MaterialRequirements Planning menu?
a) Independent requirements also in operative stock/requirements list: No
Reason: Only active planned independent requirement versions are takeninto account (and displayed) in operative planning. The independentrequirement version ## is, however, not active.
Task 4:Execute long-term planning for material R-F1 ## in plant 1000 and scenario 0##.
Since you want to look at the capacity situation in scenario 0## later, which is relevantfor the production of material R-F1 ##, the capacity requirements should be created inlong-term planning. From the long-term planning menu, call (long-term) single-item,multilevel planning .
1. Enter the following parameters on the initial screen:
Planning scenario: 0##
Material: R-F1##
Plant: 1000
Processing key: NETCH
Scheduling: 2 (lead-time scheduling and capacity planning)Include firmed plannedorders:
1 (Use setting in the planning scenario)
Also plan unchanged components: Select.
Display results: Do not select.
Display material list: Select.
Simulation mode: Do not select.
Hint: Pay particular attention to scheduling indicator 2.
First save your settings and start the long-term planning run by choosing Enter twice.
a) Menu path: Logistics ! Production ! Production Planning ! Long-Term Planning ! Long-Term Planning ! Single-Item, Multi-Level
Task 5:Evaluate the current requirements/stock situation for scenario 0##.
1. Did the system create procurement elements to cover your planned independentrequirements?
2. Switch to material R-T3 ## in the stock/requirements list for scenario 0##. Whatis the MRP type of the material and what significance does this have?
Task 6:Evaluation of the capacity situation: From the stock/requirements list for materialR-F1 ## in plant 1000 for scenario 0##, go to the capacity situation .Select Detailedplnng as the planning type and weeks as the period overview . For the evaluationperiod , enter the start and end dates of the planning period that you have alreadyentered in the scenario definition (the first day of the current month + 7 to the lastday of the current month + 12 ). To start the capacity evaluation, press Continue .
1. Did the system create any capacity overloads? _____________________
Hint: You ca n use the arrow at the very bottom in the transaction toswitch between capacities.
a) Capacity overloads: In general, yes (see also the “Overload” or “Capacities” buttons)
2. How many percent overload at which work center, in which capacity category,and in what period (enter some data as an example)?
Task 7:In the period with the largest overload, select the Total Requirement field (absoluteamounts, not as a percentage) and choose the Pegged requirements button to evaluatethe pegged capacity requirement.
2. To adjust the capacity load to suit the available capacity, reduce the plannedindependent requirements for the last of the planned orders causing thecapacity overload by 50 pieces (take account of your version number ##).
Hint: Make sure that the active indicator is not / will not be set in the planned independent requirement.
Save the changed planned independent requirements.
a) No solution required
3. Repeat the (long-term) single-item, multilevel planning for material T-F1 ##,in plant 1000 , scenario 0## with the previously saved parameter settings andevaluate the capacity situation in the stock/requirements list again.
Are there still capacity overloads? _______________ a) Capacity overload: Generally no .
Task 8:You have adjusted the capacities of your production plan in long-term planning and
now want to transfer it to operative planning. You therefore activate the inactive planned independent requirements that were simulated in scenario 0##.
1. You activate the planned independent requirements in the Change Planning Scenario transaction, which you can call for scenario 0## from the Long-TermPlanning menu. Choose Active Independent requirements . In the dialog boxthat appears, select planned independent requirements version ## and enter planned independent requirements version number 00 as the target version .(The proposed transfer period is the period you specified as the planning periodin the scenario.) Delete the Test mode indicator, select the Create list indicator and choose Activate .
a) No solution required
2. Call the operative stock/requirements list. Are the VSF requirements that youhad created in long-term planning displayed? _________________
Which planned independent requirements version contains theserequirements? (To answer this question, display the Element from the list.) ________________________________________
You should now be able to:• Name the objectives of long-term planning• Analyze the business environment of long-term planning• Describe the long-term planning scenario• Execute long-term planning• Transfer and receive firmed orders
Lesson OverviewStock transfers from the plant to the distribution center of an enterprise play animportant role. You want to display some of these processes.
Lesson ObjectivesAfter completing this lesson, you will be able to:
• Perform and use multi-site planning
Business Example
Some of your pumps, which were produced during make-to-stock production, are soldout in some of your distribution centers.
You want to correct this by producing pumps in the production plants and thentransferring them to the distribution centers.
A stock transfer between two plants can be executed using different procedures. Atransfer posting uses only the component "materials management" (MM). In contrastto a storage-location-to-storage-location stock transfer, a plant-to-plant transfer alwaysaffects material requirements planning.
A change in the plant stock is taken into account by MRP. Two procedures areavailable for the physical transfer of materials from one plant to another:
• One-step procedure• Two-step procedure
The procurement of a material using a stock transfer process is defined in thematerial master using a special procurement type of the type "Stock transfer", whichcategorizes the relevant procurement type in more detail. You must define a special procurement type for each supplying plant in Customizing for requirements planning.
Figure 173: One Step Stock Transfer (Transfer Posting)
When companies want a very simple process of transferring stock from one plant toanother, they can make use of the one step procedure. This procedure is normally used
if the plants are close together and the transit time and transit costs are not very high,and therefore do not play a role in planning (for example, a plant and distributioncenter with two plant codes and the same physical location).
In the case of the one-step procedure, the goods issue and goods receipt are posted ina single material document. You must therefore enter all relevant data, such as thematerial, issuing plant, issuing storage location, receiving plant, and receiving storagelocation in this one step. The movement type in the standard system is 301.
Figure 174: Two Step Stock Transfer (Transfer Posting)
In the c ase of the two-step procedure, when removing the material from storage(movement type 303), you must specify the receiving plant in addition to the materialand the issuing organizational levels. This is necessary because valuation of the stock transfer takes place when the material is removed from storage and posted to stock in transfer at the receiving plant. You can either enter the put away (movement type305) with reference to the material document of the stock removal or enter all datamanua lly. As a result of the put away, the quantity is booked out of stock in transfer and into unrestricted-use stock at the receiving plant. Valuation of the put away is notnecessary, since the stock in transfer and the unrestricted-use stock at the receivingstorage location belong to the same plant.
Figure 175: Stock Transport Order Without Delivery
This type of stock transfer involves not only inventory management but also purchasing in the receiving plant. The process begins in the receiving plant withthe entry of a stock transport order in the purchasing department. A goods issuereferencing this stock transport order is then entered in the issuing plant. The quantity booked out is initially managed as stock in transit at the receiving plant. The process
is ended by the posting of the goods receipt against the stock transport order at thereceiving plant.
In comparison to a stock transfer without a stock transport order, a stock transfer usinga stock transport order has the following characteristics:
• The stock transport order is integrated into material requirements planning.Purchase requisitions, which are generated from material requirements planning,can be converted to stock transport orders. The receipt can be planned at thereceiving plant.
• The goods receipt can be posted directly to consumption.• In the case of a goods receipt into the warehouse, you can also post the material
to stock in quality inspection or to blocked stock.• You can use the purchase order history to monitor the entire process (goods
Figure 176: Stock Transport Order Two Step with Delivery
If two tra nsfer locations are far apart, it is often useful to map the shipping of the product so that the goods issue from the shipping center is adjusted. This also appliesto the transit quantity and the planned goods receipt.
In the two step procedure with stock transport order and shipping processing, stock in trans it is created when the goods issue is posted. As a result, stock in transit ismonitored. With this action, one can display the stock in transit in the stock overviewfor the material.
Stock in transit is valuated, but not for unrestricted use. It is stocked at the receiving plant level. A goods receipt is posted in the receiving plant when the goods arereceived. Depending on the decision you make, you can transfer the stock tounrestricted-use stock, blocked stock, or quality inspection stock.
You create stock transport orders for stock transfer within a company code usingdocument type UB in the default. In addition to the receiving plant, you also specifythe supplying plant here. You also use the item category U (stock transfer). A stock transport order with a special MRP element is displayed in the stock/requirementsoverv iew.
You us e a stock transport scheduling agreement if stock transfers are to be executedat regular time intervals, or if you want to schedule the delivery dates of a stock transfer precisely.
• The quantity of stock booked out is first stocked in the stock in transit of the
receiving plant.• Only when the goods receipt is posted is the quantity posted to the stock of the
receiving plant. In this way, it is possible to monitor the quantity that is in transit.• The stock transfer is evaluated with the valuation price of the material in the
delivering plant.
Prerequisites for this process:
• The receiving plant must be set up an an (internal) customer so that it can bedisplayed in SD.
Figure 177: Special case: Withdrawal in the Other Plant
Often time planners are faced with supply chain planning dilemmas that arise duethe geographic closeness of facilities that supply each other. In some situationscompanies have manufacturing locations within a close geographical area, whichtend to support each other with manufactured components. During normal businessactivit y large amounts of goods movements and affect system performance negatively.This procedure provides a "lean" alternative to using stock transport orders and isespecially useful when plants are close together.
You can specify that the components required to build an assembly are to bewithdra wn from a different plant from the planning plant (that is, the issuing plant).Dependent requirements for these components are created directly in the issuing plant.
The withdrawal does not involve any significant costs or time.
You can use withdrawal from an alternative plant for both components producedin-house and procured externally. In Customizing for material requirements planning,a special procurement type, which can also be used as a template for some special procurement types, is defined for both procedures.
Figure 178: Special Case:Production in another plant
You can define that a particular product is to be produced in an alternative plant (thatis, the production plant) from the planning plant. The planning of the product iscarried out in the planning plant but it is actually produced in the production plant.The product's BOM is created in the production plant.
A customer-defined special procurement type is also used for production in another
plant. Depending on the production plant, a separate special procurement typeis maintained in Customizing for material requirements planning. The special procurement type is assigned to a specific material.
The production flow in the other plant is as follows:
• You first plan material requirements in the planning plant. During the planning
run, the system creates a planned order for the assembly in the planning plant, if this is necessary.• During scheduling of planned orders in the planning plant, note the following:
The system determines the basic dates using the in-house production times andthe scheduling margin key entered for the planning plant in the material master record. If material requirements planning is executed with lead-time schedulingusing the routing, the routing and the scheduling margin key in the production plant form the basis for determining the production date. When you definethat you want the basic dates during lead-time scheduling to be adjusted to the production dates (IMG activity "Define Scheduling Parameters for PlannedOrders"), the system determines the basic dates by adding the production enddate and the float after production. The system uses the production start dateminus float before production as the order start date. The system determines thefloat before production and the float after production from the scheduling marginkey in the material master record for the production plant.
• You plan material requirements in the production plant. The system explodes theBOM for the assembly in the production plant and determines the dependentrequirements. You convert the planned order in the planning plant into a production order. The dependent requirements in the production plant areconverted into a dependent reservation and production of the components in the production plant is initiated. When creating the goods receipt for the productionorder, the stock in the planning plant is increased.
Exercise ObjectivesAfter completing this exercise, you will be able to:• Carry out multi-site planing using the relevant special procurement key
Business ExampleThe majority of your pumps are produced during make-to-stock production. Due toyour global customer base you need to stock your end product closer to the customer.Plant 2400 is the distribution center planned for this. You have carried out planning in plant 2400 using Sales & Operations Planning. Set up material R-F1## in distributioncenter 2400 so that it will be automatically be delivered by plant 1000 with material
R-F1##.
Task 1:First, enter material-specific properties relevant for planning for material R-F1## indistribution center 2400. To do this, proceed as follows:
1. Call the transaction for creating materials:
Menu path: Logistics ! Production ! Master Data ! Material Master !
Material ! Create (General) ! Immediately
Material: R-F1##
Industry sector: Mechanical engineering
Material type: FERT (Finished product)
Copy from… material: (None)
Go to the views MRP 1 and 2 and in the window that then appears, enter plant2400 .
a) Special procurement type 41: Special procurement type 41 is defined in Customizing master data for material requirements planning for distribution center 2400 and triggers a stock transfer of the relevant material from plant 1000 if there is a material shortage.
What is the availability date of this MRP element?
a) Menu path: Logistics ! Production ! MRP ! Evaluations !
Stock/Requirements List The system generated a purchase requisition as a receipt. Due to thespecial procurement type 41, production plant 1000 is the vendor.
Availability date of the purchase requisition: Varies. It is about one month from today.
3. Check the stock/requirements list for R-F1## in plant 1000 . Can you find the“counterpart” for the above MRP element?
___________________________________________________ If the requirements element is covered, what date is the material available andwhat is this date in relation to the date you made a note of above?
a) In plant 1000, a purchase requisition release is generated as acounterpart to the purchase requisition (same quantity).
The purchase requisition release is already covered, generally by stock or a procurement element of in-house production (planned order).
There is a time span of 10 days between the request and the release.These are the 10 days that are required for the physical stock transfer and that you have defined as the planned delivery time at the beginning of the exercise in the material master.
Lesson OverviewMRP areas enable you to differentiate material requirements planning below plantlevel.
You can execute planning specifically for individual storage location MRP areas below plant level.
Lesson ObjectivesAfter completing this lesson, you will be able to:
• Describe plant organization with MRP areas
• Characterize MRP area types• Set up MRP areas• Make specific settings for storage location MRP areas• Make corresponding settings in Customizing
Business ExampleMaterial requirements planning is to be differentiated below plant level. The presentstorage location MRP is to be replaced by MRP areas.
You want to set up and use storage location MRP areas for planning. You make thenecessary settings in Customizing and in the material master.
Figure 179: Requirements Planning Without MRP Areas
Without MRP areas, material requirements planning takes place at plant level. Thismeans th at all the requirements of a material (such as dependent requirements, plannedindependent requirements, customer requirements) for all storage locations that are not planned separately or excluded from MRP, flow into requirements planning together at plan t level. Depending on the procurement type of the material, either in-house production or external procurement is used to cover the requirements.
The settings defined in the material master of the material for MRP are valid for theentire plant (excluding storage locations planned separately or excluded from MRP).
With the introduction of MRP areas, a larger degree of differentiation is possible inMRP. Plan ning takes place separately for each MRP area. It is possible to plan therequirements separately for different production lines, for example.
In storage location MRP areas, one or more storage locations are grouped together inone organizational unit. This unit is planned separately from the remaining plant andMRP area s. You can assign a receipt (procurement) or issue element (requirement) toa storage location area using the storage location. A storage location can be assignedto one MRP area only.
The provision of components for individual subcontractors can be planned separatelyusing an MRP area. An MRP area is also defined for a subcontractor (supplier) andthe corresponding subcontracting components are assigned to this MRP area.
In each MRP area, separate evaluation of the planning results takes place withindividual MRP lists or stock/requirements lists. In the collective display, you canselect materials specifically for one MRP area, as well as for all MRP areas of a plant.
For eac h MRP area, you can assign various MRP parameters to a material, so thatrequirements planning can be specifically tailored to the needs of the individual MRPareas.
You deploy MRP areas if you want to plan materials that are required in different production areas, storage locations, or by subcontractors, separately from each other.MRP with M RP areas is activated at client level and is therefore valid for all plants belonging to this client. It cannot be reversed.
The introduction of MRP areas can be useful even if you do not want to plan withMRP areas. In particular, if you need to plan many plants, the introduction of MRPareas im proves system performance because the planning file can be accessed more precisely.
There are three types of MRP areas:
1. Plant MRP areas (mandatory) that are automatically created when you activate planning with MRP areas. This number matches the number of the plant. If noadditio nal MRP areas are defined, the plant MRP area covers the entire plant.
2. Storage location MRP areas that are defined by the storage locations assignedto them.
3. Subcontractor MRP areas that are used in planning the requirement of material provided for a subcontractor, and are defined by the assignment of thissubcontractor. A subcontractor must be assigned to just one subcontractor MRParea an d vice versa.
The existing planning file entries at plant level are converted into planning file entriesat MRP area level. The conversion uses a report that is triggered in Customizing for MRP, in the activity “Convert Planning File Entries for MRP Areas”. The system usesthis conversion report to create a new planning file, in which you can access entriesfor indi vidual MRP areas.
The syst em creates the plant MRP area automatically for every plant, with the result
that for every plant there is exactly one plant MRP area with the same number asthe plant.
To introduce material requirements planning with MRP areas, the existing planningfile ent ries at plant level must first be converted to planning file entries at MRParea level (Customizing activity: “Convert Planning File Entries for MRP Areas”).Material requirements planning for MRP areas can then be activated (Customizingactivi ty: “Activate MRP for MRP Areas”) and you can create MRP areas(Customizing activity: “Define MRP Areas”).
In the Customizing activity "Define MRP Areas", you define the MRP area, includingthe area type, and plant assignment first. In storage location MRP areas, you are thenasked t o define a receiving storage location. To complete the process of definingthe storage location MRP area, assign one or more storage locations, and to definesubcontractor MRP areas, assign one subcontractor only.
The materials to be planned in MRP areas other than the plant MRP area must beassig ned to these MRP areas by creating the corresponding MRP area segments in the“MRP 1” view of the material master.
As the assignment to a storage location MRP area takes place using the storagelocations determined by the system in the planning run, you should check that thestora ge location, which may already be specified in the BOM (BOM item), the work
center (production supply area), and in the production version or material master,is included in the MRP area that you assigned in the material master. To ensurecons istent planning, it is also important that either the Storage 1 or the Storage 2 viewexists in the material master for this storage location.
Figure 184: MRP Area Segment in the Material Master
To assign a material to an MRP area (for example, using the storage location), youmust create a corresponding MRP area segment in the material master record for thematerial. (The MRP area must already be defined in Customizing.) Materials withno MRP area segments remain in the plant MRP area.
To create an MRP area segment, choose the “MRP Areas” pushbutton from the MRP1 view in the material master.
A material can be assigned to any number of MRP areas, as long as you create asegment in each MRP area. For each MRP area, you can specify MRP and forecast parameters that differ from the material master at plant level. The consumption valuesare updated separately for each MRP area. A different MRP area can be assigned,however, the values at plant level are used for the strategy, the offsetting logic, the period of adjustment, and the check rules.
The assignment of a material to an MRP area can be deleted using the “Deletionflag” indicator in the initial screen for the MRP area segment in the material master.Any dependent requirements or reservations that were planned in this MRP area aretherefore transferred to the plant MRP area.
You can display the materials assigned to a particular MRP area. In the Customizingactivity “Define MRP Areas”, choose the “Material Overview for MRP Area” pushbutton from the MRP area details screen.
Figure 185: Assignment to a Storage Location MRP Area
Planned i ndependent requirements are created for each MRP area. Sales orders areassigned to an MRP area according to their storage location (the issue storage locationin the Shipping screen of the item details).
Dependent requirements are automatically assigned to an MRP area in the planningrun, dep ending on their production or issue storage location. To do this, the systemaccesses the BOM item details of the component, the material master of thecomponent, or the production version of the header material (you make the necessary
setting s in Customizing for MRP under “Define Storage Location and Supply AreaDetermination in BOM Explosion”). If the storage location determined allows thematerial to be assigned to an MRP area of this material (assigned in the materialmaster ), then the requirement is planned in this MRP area. If another assignment isnot possible, planning takes place in the plant MRP area.
The requirement elements (planned independent requirements, sales order, and soon) are covered following the assignment to an MRP area within this MRP area.If a pr oduction storage location (or an external procurement storage location) isdetermined for a corresponding procurement element (that is the relevant plannedorder) that does not belong to this MRP area, then the receiving storage location of the MR P area is used instead.
Figure 186: Special Procurement Types in the MRP Area
Materials that are planned in a MRP area can be procured using the special procurement type “stock transfer from plant to MRP area”.
For this purpose you have to create a special procurement key in Customizing for MRP (Customizing step “Define Special Procurement Type”), which contains procurement type “F” (external procurement), special procurement type “U” (stock transfer), and your own plant as the stock transfer plant. This special procurement keyis entered in the MRP area segment of the corresponding MRP area.
The stock transfer process takes place as in storage location MRP. A stock transfer reservation is created at MRP area level, and a reservation with reference to this stock transfer reservation is created at plant level. When the procurement in the plant iscomplete, the transfer posting is carried out in the MRP area in Inventory Managementwith reference to the stock transfer reservation. This process can also be mapped usingstock transport requisitions. The planned delivery time specified in the MRP areasegment can be used as the stock transfer time, if the corresponding indicator has beenset. Otherwise, the planned delivery time of the plant is used. The requirements date of the purchase requisition release that is created at plant level is brought forward by thisstock transfer time. You use the “Stock Transfer” field in Customizing for the special procurement key “Stock Transfer from Plant to MRP Area” to control whether stock
transfer reservations or stock transfer requisitions are generated in the planning run.
Special procurement types that refer to the BOM explosions, such as phantomassembly, are not permitted in an MRP area segment. Special procurement typesthat refer to an actual goods movement, such as stock transfer from another plant,external procurement, stock transfer from plant to MRP area, are permitted. A special procurement type “Stock Transfer from MRP Area to MRP Area” is not intended.
The storage location MRP (that is, a storage location planned separately or excludedfrom planning) is only retained because of upward compatibility, but can becompletely replaced by MRP with storage location MRP areas.
In addition, you can also carry out a stock transfer from storage location to storagelocation and thus from storage location MRP area to storage location MRP area.You make the settings for this in Customizing for Materials Management ( Materials Management ! Purchasing ! Purchase Order ! Set up Stock Transfer Order
! Set Up Stock Transfer Between Storage Locations ). You can use the BADIMD_EXT_SUP to implement your own logic for determining the issuing plant andstorage location and the planned delivery time. This BADI uses the additional field“Additional Info for BADI” in the special procurement key.
Figure 187: Strategies of Make-to-Stock Production in MRP Areas
In storage location MRP areas the materials can only be planned with the
make-to-stock production planning strategies (strategies 10, 11, 30, 40, 70). In demandmanagement, only the planned independent requirements of the correspondingrequirements classes can be created for storage location MRP areas.
Make-to-order planning strategies can be used only in the plant MRP area. Individualcustomer segments are put in the plant MRP area to ensure that the sales order is only planned in the individual customer segment, even if the storage locations have beenchanged. Regardless of the storage location, the sales order items and procurementelements remain in the corresponding individual customer segment and thus in the plant MRP area.
The strategies with planning segments (strategies 50, 52, 59, 60, 74, and so on) canalso only be used in the plant MRP area.
Figure 188: ATP Check with MRP Areas
As soon as MRP with MRP areas has been activated, the ATP check is also activatedat MRP area level. The availability check is then carried out for the individual MRPareas.
Sales orders for make-to-order production are always planned in the plant MRP area.For the customer requirements types in make-to-stock production, the assignment toan MRP area is made using the storage location.
As in th e previous ATP check at plant level, the ATP check can be carried out with or without the storage location check in Customizing, depending on how the availabilitycheck is controlled. If no storage location check has been set, the ATP check is only
carri ed out for the total MRP area, while the available quantity is also checked in thestorage location (of the sales order) with storage location check.
The total planning run can be triggered for each plant, for example, as a background job with a variant for each plant to be planned. In planning with MRP areas, it is also possible to plan only individual MRP areas.
You can group together several MRP areas or plants in a scope of planning for a planning sequence and plan on a cross-plant basis in a total planning run. The systemautomatically takes mutual dependencies, such as those arising through stock transfer,
into account (the situation displayed in the graphic merely requires that MRP area10001 and plant 1100 are entered in the scope of planning – the planning takes placefor each material in the proposed order MRP area 10001, and plant 1100, and thenMRP area 10001 again if necessary).
You define the scope of planning for total planning in the Customizing activity“Define Scope of Planning for Total Planning” for Material Requirements Planning.You can also only specify an individual MRP area in the scope of planning.
By using scope of planning, you can execute a total planning run online or as a background job for a plant, for several plants, for an MRP area, for several MRP areasin MRP, in MPS and in long-term planning.
The planning run using scope of planning must always be started with parallel processing.
Exercise 23: Planning with Storage LocationMRP Areas
Exercise ObjectivesAfter completing this exercise, you will be able to:• Execute MRP for the finished product in a separate MRP area,• Make the necessary settings for this in Customizing and the material master.
Business ExamplePump R-F1 ## is to be planned in plant 1000 in make-to-stock production usingstrategy 40 (planning with final assembly) in MRP area LO##P1000 .
Task 1:Check and change the material master if necessary. Make sure that strategy group
40 is entered in the material master for the finished product R-F1 ## in plant 1000 ,as well as consumption mode 2 and forward/backward consumption period 30days respectively ( MRP 3 view).
Check the Customizing settings: You intend to plan the pump R-F1## in theLO##P1000 storage location MRP area in plant 1000 . You therefore check thecharacteristics of this MRP area: Display the MRP area LO##P1000 in Customizingfor MRP master data (IMG activity Define MRP areas ).
1. What type of MRP area is it?
2. Which storage locations are assigned to this MRP area?
3. What is the receiving storage location?
Task 2:You assign the material R-F1 ## to the MRP area LO##P1000 by creating acorresponding MRP area segment in the material master.
1. Use transaction Change Material to call the MRP 1 view of the material master R-F1 ##. First check whether the MRP area exists indicator is set:: __________
2. Now assign the MRP area. Choose the MRP Areas button. In the subsequentoverview screen of MRP areas, add the MRP area LO##P1000 . Choose Check to access the detail screen for the MRP data that is valid in this MRP area. Usethe following settings:
MRP type: PD
MRP controller: 0##
Lot size: EX
Adopt (twice) the entries to return to the MRP1 view in the material master.
Task 3:Create a planned independent requirement for material R-F1 ## in MRP areaLO##P1000 :
1. In the initial screen for the transaction Create Planned Independent Requirement ,enter the MRP area LO##P1000 for the material R-F1 ##. Use months as theplanning period and enter material number R-F1 ## with a requirement of 20 pieces for the current month + 3 for this MRP area in a new row in the planning table. Make sure that the version is 00 and the requirements type is
VSF and save your entries.2. First, take a look at the stock/requirements list for material R-F1 ## in MRP
area LO##P1000 .
Is the planned independent requirement of 20 pieces displayed? _____________
Do other requirements or procurement elements flow into the stock/requirementslist for this MRP area? ______________
3. Now display the stock/requirements list in plant MRP area 1000 . Does the planned independent requirement you just created appear in the plant MRParea? _________
Task 4:Executing requirements planning in MRP area LO##P1000 : Execute multilevel
requirements planning in MRP area LO##P1000 in plant 1000 .Then display thestock/requirements list for this MRP area again.
1. Has a procurement element been created? _________________
2. Which storage location has been determined in the header of the plannedorder that was created to cover the requirement in MRP area LO##P1000 ? ______________________________________________
3. Note down the number and the item of the customer requirement: __________________ / _____________________
Task 6:Change the issue storage location for this customer requirement: It should be providedfrom storage location L1 ##.
1. From the stock/requirements list for plant 1000, change the customer requirement(select it and choose the Change Element icon). In the entry screen, enter
4. Check whether the sales order has consumed the planned independentrequirements in accordance with the strategy in the material master. Consumed? ____________
Task 7:
Start a multilevel planning run in MRP area LO##P1000 in plant 1000 in order toadjust the planned orders to the current requirements situation. Start the transaction by pressing Enter twice.
1. Convert the first planned order in the stock/requirements list for MRP areaLO##P1000 into a production order (you call this function directly from Additional data for element ). Release the production order and save it.
2. Refresh the stock/requirements list and note down the number of the productionorder: _________________
3. What is the receiving storage location for the production order? _______
Task 8:Post the goods receipt for the production order, the number of which you noted downin the previous exercise. Post this goods receipt to the storage location L1 ##.
1. From the Inventory Management menu, execute the transaction GR for Order (MIGO) . You are already familiar with this transaction from the previousexercises. Make sure that the movement type is 101 , the storage location L1 ##and the indicator Item OK . Otherwise, accept the proposals made by the system.Confirm any warning messages and post the goods movement.
2. Check the stock/requirements list for MRP area LO##P1000. Have the goods beenreceived in this MRP area? __________________________________________
3. What is the stock level for today’s date? __________
Solution 23: Planning with Storage LocationMRP Areas
Task 1:Check and change the material master if necessary. Make sure that strategy group40 is entered in the material master for the finished product R-F1 ## in plant 1000 ,as well as consumption mode 2 and forward/backward consumption period 30days respectively ( MRP 3 view).
Check the Customizing settings: You intend to plan the pump R-F1## in theLO##P1000 storage location MRP area in plant 1000 . You therefore check thecharacteristics of this MRP area: Display the MRP area LO##P1000 in Customizingfor MRP master data (IMG activity Define MRP areas ).
1. What type of MRP area is it?Answer: It is an MRP area type 02; that is a storage location MRP area.
2. Which storage locations are assigned to this MRP area?
Answer: The storage locations L0## and L1## are assigned to this MRP area.
3. What is the receiving storage location?
Answer: The receiving storage location is L0##.
Task 2:You assign the material R-F1 ## to the MRP area LO##P1000 by creating acorresponding MRP area segment in the material master.
1. Use transaction Change Material to call the MRP 1 view of the material master R-F1 ##. First check whether the MRP area exists indicator is set:: __________
a) “MRP area exists” indicator set: No
2. Now assign the MRP area. Choose the MRP Areas button. In the subsequentoverview screen of MRP areas, add the MRP area LO##P1000 . Choose Check to access the detail screen for the MRP data that is valid in this MRP area. Usethe following settings:
Task 3:Create a planned independent requirement for material R-F1 ## in MRP areaLO##P1000 :
1. In the initial screen for the transaction Create Planned Independent Requirement ,enter the MRP area LO##P1000 for the material R-F1 ##. Use months as theplanning period and enter material number R-F1 ## with a requirement of 20 pieces for the current month + 3 for this MRP area in a new row in the planning table. Make sure that the version is 00 and the requirements type isVSF and save your entries.
a) Menu path: Logistics ! Production ! Production Planning ! Demand Management ! Planned Independent Requirements ! Create
2. First, take a look at the stock/requirements list for material R-F1 ## in MRParea LO##P1000 .
Is the planned independent requirement of 20 pieces displayed? _____________
Do other requirements or procurement elements flow into the stock/requirementslist for this MRP area? ______________
a) Planned independent requirement: Yes
Other requirements or procurement elements: No
3. Now display the stock/requirements list in plant MRP area 1000 . Does the planned independent requirement you just created appear in the plant MRParea? _________
a) Planned independent requirement in plant MRP area: No
Task 4:Executing requirements planning in MRP area LO##P1000 : Execute multilevel
requirements planning in MRP area LO##P1000 in plant 1000 .Then display thestock/requirements list for this MRP area again.
1. Has a procurement element been created? _________________
a) Menu path: Logistics ! Production ! MRP ! Planning ! Single-Item, Multi-Level
Procurement element: Yes
2. Which storage location has been determined in the header of the plannedorder that was created to cover the requirement in MRP area LO##P1000 ? ______________________________________________
a) Storage location in header of planned order: Storage location L0##
Reason: Storage location 0002 is entered as the production storagelocation in the material master. As this storage location does notbelong to the MRP area and requirements are only covered withinthe respective MRP area, the receiving storage location of the MRParea is used instead.
Task 5:You receive a sales order for 8 pieces of material R-F1 ## for the 20th day of thecurrent month + 2 .
1. Create a corresponding customer requirement using the following data:
Delivering plant: 1000
Required delivery date: 20th of the current month + 2
Material: R-F1##
Order quantity: 8 pcs
When you check your data by choosing Enter , make sure that the customer requirements type is KSV . Save the requirement.
a) Menu path: Logistics ! Production ! Production Planning ! Demand Management ! Customer Requirements ! Create
2. Take a look at the stock/requirements list for MRP area LO##P1000 and plantMRP area 1000. In which MRP area is the sales order and why?
______________________________________________________ a) MRP area of sales order: The customer requirement is in the plant MRP
area. No storage location that could control a deviating assignment toa special MRP area has been entered for the sales order. It thereforeremains in the plant MRP area.
3. Note down the number and the item of the customer requirement: __________________ / _____________________
a) Number and item: Varies/10
Task 6:
Change the issue storage location for this customer requirement: It should be providedfrom storage location L1 ##.
1. From the stock/requirements list for plant 1000, change the customer requirement(select it and choose the Change Element icon). In the entry screen, enter
L1##
as the storage location. Save your entries.
a) No solution required
2. Refresh the stock/requirements list for the plant MRP area 1000 . Is the salesorder still displayed? _____________________________________________
a) Sales order in plant MRP area: No
3. Call the stock/requirements list for MRP area LO##P1000 in plant 1000 (refresh if necessary). Is the sales order displayed here? ______________________________________________________
Reason: The sales order is assigned to the MRP area using its issuestorage location L1##.
4. Check whether the sales order has consumed the planned independentrequirements in accordance with the strategy in the material master. Consumed? ____________
You should now be able to:• Describe plant organization with MRP areas• Characterize MRP area types• Set up MRP areas• Make specific settings for storage location MRP areas• Make corresponding settings in Customizing
• Define master schedule items• Create the connection between master production scheduling and material
requirements planning• Name the objectives of long-term planning• Analyze the business environment of long-term planning• Describe the long-term planning scenario• Execute long-term planning• Transfer and receive firmed orders• Perform and use multi-site planning• Describe plant organization with MRP areas
• Characterize MRP area types• Set up MRP areas• Make specific settings for storage location MRP areas
1. When you use master production scheduling you do not normally need to carryout material requirements planning. Determine whether this statement is true or false.! True! False
2. Which of the following aims can you pursue with long-term planning?Choose the correct answer(s).! A Simplify material requirements planning! B Use master production scheduling!
C Adjust the demand program! D Acquire a purchasing forecast! E Simplify production backflush
3. What are the possible MRP area types?Choose the correct answer(s).! A Plant MRP area! B ATP MRP area! C Subcontractor MRP area! D Procurement MRP area!
1. When you use master production scheduling you do not normally need to carryout material requirements planning.
Answer: False
Master production scheduling is generally carried out in two phases: First, youexecute MPS, then you link it to MRP.
2. Which of the following aims can you pursue with long-term planning?
Answer: C, D
Long-term planning is simulative planning with the same degree of detail asmaterial requirements planning. It allows you to perform a range of analysesat a simulative level.
3. What are the possible MRP area types?
Answer: A, C, E
There are three MRP types: Plant MRP area, storage location MRP area,subcontractor MRP area.
• Explain the differences between consumption-based planning and materialrequirements planning
• Set up and use important planning strategies and Customizing for non-configurable products
• Execute material requirements planning and evaluate the results• Configure the technical processes and related Customizing• Use the additional functions of material requirements planning
Related Information
Recommended follow-up courses
The following courses serve as follow-ups to this course:
• SCM360 Capacity Requirements Planning,• SCM310 Production Orders,• SCM320 Repetitive Manufacturing,• SCM340 Process Manufacturing.
SCM360 deals with capacity planning in ECC. SCM310 deals with shop floor controlwith production orders and planning execution. Both SCM320 or SCM340 cover thetopics of repetitive manufacturing and process manufacturing.
Recommended follow-up activities
• Repeat the exercises. using IDES data or your own data• Read the online documentation.• Read the IMG documentation.• Read the release notes.
Planned orders, production orders, purchase orders, and other elements are taken intoaccount as receipts when determining requirements.
In the case of gross requirements planning, no warehouse stock is taken into account.Only receipt elements are included in the net requirements calculation.
In net requirements planning, the available warehouse stock for planning is takeninto account.
Figure 19 3: Process of Gross Requirements Planning (11)
The demand program is determined with no reference to sales orders or existingwarehouse stock. This is why this production strategy is also referred to as “forced product ion”. The focus of this strategy is on full capacity production.
Sales orders are not relevant to MRP, but you can display them for information purposes. You have to set this in the “no MRP” field in Customizing for the relevantrequirements class.
Sales orders are filled from stock. You can carry out the availability check with ATPlogic in Sales and Distribution.
The dema nd program is reduced by the receipt of goods in the warehouse. As withnet requirements planning, the oldest planned independent requirement for grossrequirements planning is reduced first in accordance with the FIFO principle. Future planne d independent requirements are also reduced by goods receipt if the forwardconsumption period allows this.
A separate segment is created for gross requirements planning in the currentstock/requirements and MRP lists.
Figure 194: Settings for Gross Requirements Planning (11)
The gross requirements planning strategy must be entered in the strategy group of the material master (view: MRP 3) and the mixed MRP indicator set to “Grossrequirements planning” in the material master (view: MRP 3).
Sales orders are not relevant for MRP, but you can display them for information purposes. You have to define this in the “no MRP” field for the relevant requirementsclass in Customizing.
With strategy 50 (planning without final assembly), the finished product is producedon the basis of the sales order. To achieve short delivery times, certain assembliesshould be produced or procured before the sales order for the finished product isreceived.
Planning that is independent of the sales order is done using planned independentrequirements for the finished product. In the MRP run, the system first creates planned orders for the finished product to cover these requirements. These plannedorders cannot be converted into production orders (order type VP). However, thesystem creates planned orders in the MRP run at subassembly and component levels if a material shortage exists. These planned orders can be converted into a productionorder or a purchase requisition.
Final assembly is triggered upon receipt of the sales order. With strategy 50, thesales order appears in an individual customer planning segment in the currentstock/requirements list, in which planning is executed separately for the sales order.With strategy 52, the sales order is managed in the net requirements planning segment.This means that during requirements planning and creation of a sales order (order typeLA), any existing make-to-stock inventory and other receipt elements can be takeninto account in the net requirements planning segment. The quantity produced on the basis of a sales order is also posted to make-to-stock inventory.
You can only carry out the availability check for planned independent requirements.That is, the check of planned independent requirements at finished product level.
Note that with this approach the lot-size procedure “lot-for-lot order quantity” isused. Neither the rounding value or rounding profile nor the minimum or maximumlot sizes should be maintained. Otherwise, the assignment logic is not compatiblewith an availability check, which could lead to excess planning or incorrect resultsin the availability check.
Figure 198: Overview of Several Special Planning Strategies (3)
A number of different strategies are available for planning a material.
The “special planning strategies” can be treated as an optional element of the course.
If you want to use the “Phantom assembly planning (59)” strategy, make the followingsettings in the material master of the assembly (MRP view):
- Special procurement type = 50 (phantom assembly)
- Strategy group = 59 (planning at phantom assembly level)
- Mixed MRP indicator = 1 (assembly planning with final assembly)
In the material master for the components of the phantom assembly, set the backflushindicator (MRP 2 view) to ensure consistent reduction of the planned independentrequirements and the reservations. You should also assign the components to the sameoperation in the routing to ensure that the components are confirmed at the same time.
The strategy “Assembly planning without final assembly” (strategy 74) is amixture of the strategies “assembly planning” (strategy 70) and “planning withoutfinal assembly” (strategy 50 or 52). As in strategy 70, in strategy 74 the plannedindependent requirements for an assembly are regarded separately to the end productand independent of any lot size. You do not have to know the finished product(s) for which the assembly is required.
The planned independent requirements are created at assembly level. In contrastto strategy 70, and similar to strategies 50 and 52, the creation of the plannedindependent requirements does not trigger the production of the assemblies, but rather the procurement of the components. The components are placed into stock untilthe planned order or the production order for the finished product is received. The production of the assembly is not triggered until the planned order or the productionorder for the finished product has been received.
Material requirements planning is carried out for the assembly and creates plannedorders for the assembly's planned independent requirements. These cannot beconverted into a production order nor can they be used in repetitive manufacturing(order type VP). The planned independent requirements and the planned orders for the assembly are in the planning segment. Conversion and procurement (assembly)are not possible until a planned order or a production order for the finished productis created. At component levels below the assembly, however, the system creates planned orders in the planning run if a material shortage exists. These planned orderscan be converted into a production orders or a purchase requisition.
At this stage of planning, the stock at assembly level is not taken into account.
Figure 204: Assembly Planning Without Final Assembly (74) (2)
Producti on of the assembly is not triggered until receipt of the planned order or the production order for the finished product. The dependent requirements andreservations created as a result of the planned order or the production order consumethe plan ned independent requirements of the assembly (as in strategy 70).
Dependi ng on the strategy of the finished product and the individual/collectiveindicator of the assembly, the dependent requirements and reservations for the
assembly and the accompanying planned orders for the assembly appear in the netsegment or in the sales order planning segment.
In mater ial requirements planning, dependent requirements and reservations in thenet segment or a sales order planning segment result in planned orders that can be converted or used in repetitive manufacturing. This then enables the productionof the assembly. At this stage of planning, stock at assembly level is included asstock in the net segment or as sales order stock. In the planning segment, however,the planned order quantity for the VP planned order is reduced in accordance withthe ne w requirements situation.
Figure 206: Assembly Planning Without Final Assembly (74) (4)
If you want to use the “Planning without final assembly” strategy (74) for the assembly,you must make the following settings in the material master record (MRP view):
• Strategy group = 74 (planning without final assembly at assembly level) for the assembly
• Mixed MRP indicator = 3 (assembly planning without final assembly)
components to be procured and stored before receipt of the planned or productionorder for the finished product.
• Individual / collective indicator = 1 (individual requirements only) or blank (individual and collective requirements) for the components not to be procureduntil receipt of the planned order or the production order for the finished product.
The planning strategy “Planning with planning material” is particularly useful if youhave several finished products with the same main assemblies. To do this, you definea planning material which contains the common assemblies and their BOMs.
Planning is carried out for the planning material and triggers the production and procurement of the planning material's components.
Figure 209: Planning with the Planning Material (60) II
When the sales order for the saleable product is received, the system can check in sales
order processing whether the planned independent requirements quantities suffice(that is, availability check as a check against forecast).
The sales order for a finished product that refers to the planning material reducesthe planned independent requirements of the planning material and simultaneouslytriggers final assembly.
The sales order is managed within an individual customer segment. If you do not wantto do this, you can manage it in the net requirements segment.
Example for application of this strategy: Welding equipment manufacturer withdifferent colors for different distributors.
Create a s eparate material master record for the planning material in SAP ECC:In the SAP ECC material master for the planning material, enter strategy 60, theconsumption mode and the consumption periods.
Enter the planning material and strategy 60 in the SAP ECC material master recordsfor all t he finished products that are to be planned using this strategy.
In SAP EC C, create a BOM for the planning material which includes all non-variable parts (these must also be included in the BOM of the finished product).
In the assemblies' master, set the individual/collective indicator to always collectiverequirements.
The quota arrangement facilitates the administration of sources of supply at plantlevel. If you procure a certain material from different sources, you can assign a quotato each individual source. The quota indicates which share of the requirements arisingfor the material over a certain period is to be procured from which source.
If a quota arrangement is defined and active for a material (the activation occurs inthe “Quota Arrangement Usage” field in the material master), it is used for sourcedetermination. A quota arrangement is valid for a specific period of time. A quotaarrangement item is created for each source during that period.
Caution: If a quota arrangement is defined, this does not mean that the quantity of asingle manually created replenishment is automatically distributed among differentsource s. In such a case, the entire requested quantity of the replenishment is assignedto one source. This is the source that is next in line to receive the relevant order, inaccordance with the quota arrangement. The breakdown of requirements according tothe sp ecified quotas can only take place if material requirements planning is used.
You can carry out quota maintenance in the requirements planning master data as
follows: Enter the material and the plant on the initial screen, and then enter thedate until which the quota arrangement is valid in the header overview. The start
date is always the current date or the date that is at the end of the previous quotaarrangement. Enter a quota arrangement item for each required source of supply.To do this, proceed as follows:
• Specify the procurement type for each source (in-house production or external procurement). A source of supply (info record and/or outline agreement) mustexist before you can maintain a quota arrangement item with the procurementtype “external procurement”.
• Where appropriate, specify the special procurement type (for example, stock transfer).
• Enter the vendor, supplying plant or production version.• Specify the numeric relationships on the basis of which requirements arising
over the period are to be distributed.
The system uses quotas to calculate the distribution of the requirements in percentand updates the quota allocated quantity. The requirements assigned based on thequota arrangement are used.
In Customizing for quota arrangements, you define the number range for the quotaarrangement and specify whether the number is to be assigned internally (by thesystem) or externally (through user input).
Before a quota arrangement can be maintained for a material, you must specify the business applications for which the quota arrangement is to be used (for example,in materials planning or in purchase requisitions). Specify this in the “QuotaArrangement Usage” field. You can find this field in the plant-specific purchasingdata/materials planning data of the material master record.
An entry in this field determines the areas in which the source determinationfacility finds the appropriate source on the basis of the quota arrangement. Thequota-allocated quantity of the relevant quota arrangement item is updated from theareas specified via this indicator. The following areas can be taken into consideration:
• Purchase orders: The quantity of the material ordered to date goes into thequota-allocated quantity, provided that a source from the quota arrangementwas used.
• Purchase requisitions: The source determination process is controlled using the
quota arrangement. The requested quantity of all purchase requisitions assignedfor this material goes into the quota-allocated quantity.• Scheduling agreement: The total quantity of the scheduling agreement delivery
schedule lines for this material goes into the quota-allocated quantity.• Planned orders: The total quantity of all relevant assigned planned orders for
this material goes into the quota-allocated quantity.• Material Requirements Planning: Source determination on the basis of quota
arrangements can also be used in material requirements planning (MRP). Plannedorders and purchase requisitions generated via MRP have a source assigned on aquota basis, and the requirement goes into the quota-allocated quantity.
• Production orders: The total quantity from all production orders for this material
goes into the quota-allocated quantity of a relevant quota arrangement item for in-house production.
In the case of sources for which you have specified a quota in the current validity period, the system calculates which source is next in line for a certain requirement.This calculation is carried out by the system during the source determination processfor a requested material.
The system assigns a quota rating to each of the sources. The quota rating is calculatedas follows:
• Quota rating = (quota-allocated quantity + quota base quantity)/quota
The individual values are as follows:
• Quota-allocated quantity : Total quantity of all requirements includedin the quota-allocated quantity according to the quota arrangement usageindicator in the material master record. The quota-allocated quantity is updatedautomatically.
• Quota base quantity : Quantity used to control the quota arrangement manually(for example, when new sources are included).
• Quota : Number that determines how requirements are distributed among thevarious sources.
In the automatic source determination process, the source with the lowest quotarating is assigned.
The formula yields the following truism: The higher the quota, the lower the quota
rating and the greater the probability that the relevant source will be determined as thevalid source.
The quota base quantity can be used on the one hand when a new source is includedin an already existing quota arrangement and on the other to remedy a disproportion between quota and quota-allocated quantity. You can use the quota base quantity to prevent the new source from being assigned all requirements (for example, in the formof requisitions or purchase orders) until such time as its quota-allocated quantityexceeds that of one of the existing sources. This is achieved due to the fact that thequota base quantity acts as an additional quota-allocated quantity in the calculationof the quota rating.
Example: You include a new vendor in an already existing quota arrangement. Theexisting quota arrangement consists of two vendors, who are each assigned 50% of the material requirements that arise. Each of these vendors has a high quota-allocatedquantity because your company has already ordered a lot of material from them duringthe validity period of the quota arrangement. The new vendor is to be assigned thesame share of forthcoming requirements as the other two. However, according to the
formula for calculating the quota rating, all requirements will be allocated to the newvendor until such time as his quota rating exceeds that of one of the other two vendors.If the purchase requisitions are to be assigned evenly, as if the new vendor had always been a party to the quota arrangement, you must define the quota base quantity for thenew vendor appropriately, or have it determined by the system. The system providesthe following procedures for determining the quota base quantity:
• Individual calculation: Calculates the quota base quantity for the selectedquota arrangement items. Select the items whose quota base quantity is to berecalculated and choose Edit ! Base Quantities ! Individual Calculation .
• Collective invoice: Calculates the quota base quantity for all quota arrangementitems. Use this procedure if the allocation of requirements that arise for a
material under a quota arrangement is to be based on the starting situationagain, in which all sources have the same quota rating. Choose Edit ! BaseQuantities ! Collective Calculation .
Calculation of quota rating - example:
You create a purchase requisition for a material (100 pc) for which the sourcedetermination process in the requisition is regulated on the basis of a quotaarrangement. The following table shows the current situation with regard to the quotaarrangement at the time of source determination:
According to the specified formula, the quota ratings for vendors A, B, and C are asfollows:
Vendor Quota rating
A (780 + 0) / 3 = 260
B (380 + 0) / 2 = 190
C (0+260)/1=260
This means that the source representing vendor B is will be assigned to the requisitionitem because this vendor has the lowest quota rating. After the requisition has beensaved, the situation regarding the quota arrangement is as follows:
In contrast to source assignment via quota arrangement in the manual creation of areplenishment, in the planning run it is possible to split up the requirement as per thespecified quotas among the various sources in the quota arrangement.
For the quota arrangement to be taken into account during the source determination process in material requirements planning, the quota arrangement usage indicator must have previously been set to the appropriate value in the material master record.Furthermore, each source in the quota arrangement (apart from info records) musthave been entered in the source list with the appropriate MRP indicator.
In source determination for manufacturing, the only option planners have is to choosethe production version. BOMs and Routings can not be selected using a quotaarrangements. However, a production version can contain only a BOM or only arouting. You do not have to specify both.
Figure 217: Requirement Splitting in the Quota Arrangement
Whether or not a requirement is split is determined via the lot-sizing procedure thathas been assigned. The indicator for the splitting quota must have been assigned tothe lot-sizing procedure with which the material is planned (in Customizing). In thecase of the lot size ES (lot-for lot order quantity with splitting), for example, the
When maintaining a quota arrangement, you can also specify a minimum or maximumlot size for each item of the arrangement. However, the specified lot sizes are onlytaken into account in the case of requisitions and planned orders that are generatedautomatically (that is, via the MRP system). The lot size specified in the quotaarrangement item overrides the settings in the material master record.
Example of requirement splitting in materials planning:
The starting situation is as follows: There is a requirement for 1000 pc of a certainmaterial in whose master record the lot size ES (exact lot size calculation withsplitting) has been set. Each vendor has been assigned the quota shown in thefollowing table:
Vendor Quota Quota-allocatedquantity
A 4 420B 3 310
C 2 190
D 1 100
In requirements planning, four purchase requisitions are generated. The requirementof 1000 pc is distributed among the four sources in the proportion 4:3:2:1. In the caseof a quota arrangement with splitting, the quota-allocated quantity and quota ratingare both irrelevant. The following distribution thus applies with respect to the quotaarrangement:
Vendor Quota Quota-allocatedquantity
A 4 820
B 3 610
C 2 390
D 1 200
To prevent the system from splitting up a requirement that is too small in the courseof a planning run, you can specify a minimum quantity for splitting. The minimum
quantity defines the lowest quantity that a lot must have before it can be split upamong several sources during the requirements planning run. If the lot is smaller thanor equal to the minimum quantity, the usual quota arrangement logic applies.
Example of requirement splitting with minimum splitting quantity
During the maintenance of a quota arrangement for a material with the number R-T100, a minimum splitting quantity of 1200 is set. Suppose there is a requirementof 1000 pc. In the course of a planning run for material R-T100, this requirement will be converted into a single purchase requisition. Since the requirement falls belowthe minimum quantity for splitting, no splitting takes place and the vendor with thehighest quota is determined by the system as the source for the requisition.
Figure 218: Maximum Lot Size in the Quota Arrangement
Maximum lot size per quota arrangement item: A maximum lot size is defined asthe maximum PO quantity that may be assigned per order proposal to a source inthe requirements planning run. If the requirement quantity exceeds the maximum
lot size, another quota-allocation process takes place for the residual quantity. Itmay now happen that, due to a low quota rating, the same source is reselected and asecond order proposal generated for it. To prevent this, you can set the 1x indicator. If this indicator is set, a source is not taken into account for more than one lot with aquantity equal to the maximum lot size per planning run. The remaining quantity isthen allocated to the next sources.
Minimum quantity for each quota arrangement item: A minimum lot size is defined asthe minimum PO quantity that may be assigned per order proposal to a source in therequirements planning run. If the requirement quantity is less than the minimum lotsize, the lot is assigned to the source with a quantity equal to the minimum lot size.
Phase-out control
• Discontinued parts in long-term planning, master production scheduling andmaterial requirements planning
• Material master and BOM maintenance of simple and parallel discontinuation
There is a requirement of 500 pc of a certain material. The starting situation is as
shown in the following table:
Vendor Quota Quota-allocatedquantity
Max. lot size 1x
A 3 100 250 x
B 1 200
Due to the fact that the 1x indicator has been set, a planning run will result inthe generation of one requisition for 250 pc with vendor A as the source and onerequisition for 250 pc with vendor B as the source.
Without the one-time indicator, the planning run would generate two requisitionsfor 250 pc with vendor A as the source.
Figure 219: Discontinued Parts (Simple Discontinuation)
In engineering/design you can determine that a material is to be replaced by another material on a particular date. These changes may be necessary for the followingreasons, for example: - Other safety regulations are to apply from a particular date.A certain component must therefore be exchanged as it is no longer meets the safetyrequirements. - An expensive part is replaced by a cheaper part.
Discontinued parts functions in the same way in long-term planning, master production scheduling and material requirements planning. Simple discontinuation: Adiscontinued component is being replaced by a follow-up material from a particular date as soon as the available stock for planning of the discontinued component is zero.This means that when the available stock for planning of the discontinued materialreaches zero, the dependent requirements of the discontinued material are switchedto the follow-up material. If the follow-up material is not available for planning, thefollow-up material (instead of the discontinued material) is procured. The safety stock of the discontinued material is not used by MRP. If the available stock for planning of the discontinued material becomes larger than zero again, for example due to a repeatorder, this material is used again. In addition, the system issues an exception messagefor receipts after the effective-out date. Prerequisites: You must set the discontinued parts indicator “1” in the material master record of the discontinued component. Youalso must enter a follow-up material and define an effective-out date. The follow-upmaterial can be maintained as such for information purposes in the bill of materials.
Figure 220: Discontinued Parts (Parallel Discontinuation)
Parallel discontinuation: A group of materials is replaced by another group of materials. If a component is to be discontinued (main discontinued part) and itsavailable stock is zero, another component (dependent discontinued part) alsohas to be discontinued. If, for example, a particular nut is to be discontinued, thecorresponding bolt also has to be discontinued.
- Material master record: You must set the discontinued part indicator "1" in thematerial master record of the main discontinued part and set the discontinued partindicator "3" in the material master record of the dependent discontinued part.
- Bill of materials: In the extras for the BOM item, you define a discontinuation groupin the "Discontinuation data". You can define the name of this character string, whichthen combines BOM items that belong together and are to be discontinued. The mainand the dependent discontinued parts are identified using the same discontinuationgroup.
- You also set the follow-up item indicator for the follow-up component(s). Thefollow-up group combines all follow-up items of a BOM that belong together. Thisgroup determines the follow-up items that are to replace the discontinued parts. Thecharacter string of the follow-up group must be identical to that of the discontinuationgroup.
Figure 221: Subcontracting (1)
In the MRP run, the system explodes the BOM for the material to be procured anddetermines the component requirements that need to be provided to the subcontractor.
The field for the material provision indicator in the BOM item (tab page Status/Longtext ) must remain empty for these components. Dependent requirements are generated.You need to enter the material provision indicator “L” for components which thesubcontractor has procured. In this case, no dependent requirements are created.
The graphic shows subcontracting using a pump as an example. Several subcontractorsare responsible for the final assembly of the pump; the casing is procured in thecompany's own plant and transported to the appropriate subcontractor. The number of casings provided depends on the number of pumps ordered from the subcontractor (subcontract order) and the number of casings that are already with the subcontractor (stock of material provided). The screws to assemble the pump (and, if necessary, anyfurther components) are procured by the subcontractor (provision of the material bythe subcontractor).
The requirements of material provided are treated separately for each subcontractor.The stock of material provided that is stored with a subcontractor can only be usedto cover that subcontractor's requirements of the material provided and not thoseof other subcontractors.
In the current stock/requirements list and MRP list, the stock of material provided andrequirements of material provided are shown per subcontractor in separate planningsegments. A subcontractor's requirements of material provided that are not covered by the material provided already stocked at the subcontractor, are entered in the netrequirements calculation and are shown and planned in the net planning segment.
Figure 222: Subcontracting (2)
You have the option of using MRP with MRP areas for subcontracting. By introducingthe MRP areas, the stocks of material provided and requirements of material providedfor components in the subcontractor purchase requisitions or purchase orders are planned separately on a subcontractor by subcontractor basis.
In the Customizing activity “Define MRP Areas”, you define an MRP area type 03“Subcontractor” (vendor). In the process, you assign the subcontractor's vendor number to this MRP area. A subcontractor is uniquely assigned to one subcontractor MRP area.
In the “MRP 1” view of the material master for the material provided, you assign thesubcontractor MRP areas and MRP parameters (MRP area segments), which arevalid for this material provided.
The stock of material provided that is with the subcontractor can be covered bytransferring stock from the company's own plant. A further possibility is to procurethe components to be provided from a vendor, who delivers the material directly to thesubcontractor. This is subcontractor third party order processing. The control of thereplenishment is determined by the special procurement type in the MRP area segment.
In the example above, the casing and rotor components to be provided to the customer
are planned. The components can be procured differently for the subcontractors Aand B. The control of procurement is set for each subcontractor MRP area using anappropriate special procurement key in the material master (for more details, seethe next graphic).
Figure 223: Subcontracting (3)
For the dependent requirements of the components provided to be assigned tothe subcontractor's MRP area, a standard planned order or a purchase requisitionwith subcontracting item category and assigned source of supply must exist for the
(finished) product to be procured. For this, the special procurement subcontractingmust be entered in the material master, or in the quota arrangement that affects stock,for the (finished) product. In MRP, the automatic assignment of a subcontractor generally takes place via the existing source determination mechanism (special procurement type, quota arrangement, source list).
If the special procurement type “Stock transfer from plant to MRP area” is entered inthe subcontractor MRP area data in the material master of a component provided, astock transfer reservation is generated in the MRP run as a replenishment element for the component provided, from the plant stock to the subcontractor stock of material provided (movement type 541). When the stock is transferred with reference to thereservation, the plant stock and the reservation are reduced and the stock of material provided created.
If the special procurement type “External procurement” is specified in thesubcontractor MRP area data in the material master of a component provided, a purchase requisition is generated in the MRP run with the indicator “Subcontracting”as a replenishment element for the component provided. The subcontractor whodelivers the finished product is entered here in the inbound delivery address. Thegoods receipt for this purchase order is posted to the subcontractor's stock of material provided.
Once the goods receipt has been posted for the subcontract order, the stock of material provided and the subcontracting requirements for the components provided arereduced.
The components to be provided for the subcontractor can be procured using stock transfer requisitions from the plant to the subcontracting MRP area.
Horizons in Production PlanningSome Horizons in Production Planning
Planning horizon
The planning horizon determines the short-term planning area. It is calculated inworkdays.
Definition:
1. As an MRP group parameter
(Customizing: Carry Out Overall Maintenance of MRP Groups).
2. As a plant parameter
(Customizing: Carry Out Overall Maintenance of Plant Parameters).
Consumption period
The backward and forward consumption periods together with the consumption moderestrict the period in which the customer requirements with planned independentrequirements are consumed. The consumption period is calculated in workdays. (Asan exception, the forward consumption period in the make-to-stock strategies 10 and11 determines the time frame in which planned independent requirements can bereduced on the basis of the FIFO rule in the future too.)
Definition:
1. In the material master (MRP 3).2. As an MRP group parameter
(Customizing: Carry Out Overall Maintenance of MRP Groups).
Planning time fence
The planning time fence defines a period in which the system can make no automaticchanges to the production plan (as long as the materials have an MRP type with anappropriate firming type). The period is calculated in workdays. You can also set afirming date (and thereby the end of the planning time fence) manually.
Definition:
1. In the material master (MRP 1).2. As an MRP group parameter
(Customizing: Carry Out Overall Maintenance of MRP Groups).
Planning time fence for the maintenance of independent requirements
The planning time fence for the maintenance of independent requirements determinesa period in which the system generates a message when there are changes to thedemand program. This period, which is defined in workdays, does not affect MRP.
Definition:
On a plant-basis in the Customizing activity Define Firming Period for Maintaining Independent Requirements .
Roll Forward Period
The roll forward period defines a period (in workdays) for the update of the production plan. All firmed planned orders that fall before the end of the roll forward period(which can lie in the future or the past) are deleted (if the roll forward indicator “Delete firm planned orders” is set in the MRP type for the respective material).
Definition:
As an MRP group parameter
(Customizing: Carry Out Overall Maintenance of MRP Groups).
Period of adjustment
The period of adjustment defines a period in which planned independent requirementsare no longer taken into account in the net requirements calculation. The variousadjustment indicators control whether the end of this period is in the past or the futureand which types of planned independent requirements are ignored. The period of adjustment is in calendar days.
Definition:
As an MRP group parameter
(Customizing: Carry Out Overall Maintenance of MRP Groups).
Reorganization period
The reorganization period determines the date from which data is reorganized. Thisdate is calculated by deducting the reorganization period (in calendar days) fromtoday’s date. The system reorganizes all data that is older than the reorganization period.
Definition:
On a plant-basis in the Customizing activity Define the Reorganization Interval .
Rescheduling horizon
The rescheduling horizon determines a period (in workdays), starting form the endof the replenishment lead-time, in which the system checks in the net requirementscalculation whether the dates for firmed or fixed receipt elements should be moved.
This horizon is only valid for deexpediting firmed or fixed receipt elements. Thesystem checks the deexpedition (into the future) of such a receipt element withoutrestricting the check to this period.
Definition:
1. As an MRP group parameter
(Customizing: Carry Out Overall Maintenance of MRP Groups).
2. As a plant parameter
(Carry Out Overall Maintenance of Plant Parameters in Customizing. You alsodetermine which receipts are counted as firmed or fixed here.)
Scheduling horizon
The scheduling horizon can be used to define a period in which lead-time scheduling
can be executed in MRP. The system executes detailed scheduling and generatescapacity requirements for planned orders with an order start date that lies in the futurewithin this period (in workdays). In the case of planned orders that lie further in thefuture the scheduling takes place using the in-house production time in the materialmaster.
Definition:
On a plant-basis in the Customizing activity Define Scheduling Parameters for Planned Orders .
Menu PathsSome menu paths in Production Planning
Master DataMaterial master
Logistics ! Production ! Master Data ! Material Master ! Material !
Create\Change\Display
MRP profile
Logistics ! Production ! Master Data ! Material Master ! Profile ! MRP Profile ! Create\Change\Delete\Display\Usage
Bill of materials
Logistics ! Production ! Master Data ! Bills of Material ! Bill of Material !
Customizing: Production ! Production Planning ! Demand Management !
Planned Independent Requirements ! Define Version Numbers
Customer requirements classes
Customizing: Sales and Distribution ! Basic Functions ! Availability Check and Transfer of Requirements ! Transfer of Requirements ! Define Requirements Classes
Special procurement
Customizing: Production ! Material Requirements Planning ! Master Data !
Define Special Procurement Type
Movement types
Customizing: Materials Management ! Inventory Management and Physical Inventory ! Movement Types ! Copy, Change Movement Types
Customizing: Sales and Distribution ! Basic Functions ! Availability Check and Transfer of Requirements ! Availability Check ! Availability Check with ATP Logicor Against Planning ! Carry Out Control For Availability Check
Available plant stock
Customizing: Production ! Material Requirements Planning ! Planning !
MRP Calculation ! Stocks ! Define Availability of Stock in Transfer/Blocked Stock/Restricted Stock
Attributes of material types
Customizing: Logistics - General ! Material Master ! Basic Settings ! Material Types ! Define Attributes of Material Types
Material status
Customizing: Logistics - General ! Material Master ! Settings for Key Fields !
Define Material Statuses
MRP and planning file entries
Customizing: Production ! Material Requirements Planning ! Planning File Entries ! Activate MRP and Set Up Planning File
Material requirements planning for MRP areas
Customizing: Production ! Material Requirements Planning ! Master Data !
MRP Areas ! Activate MRP for MRP Areas
MRP areas
Customizing: Production!
Material Requirements Planning !
Master Data!
MRP Areas ! Define MRP Areas
Storage mode for MRP lists
Customizing: Production ! Material Requirements Planning ! Check of Performance Settings ! Check Storage Mode for MRP List
Scope of planning for total planning
Customizing: Production ! Material Requirements Planning ! Planning ! DefineScope of Planning for Total Planning
Parallel processing in MRP
Customizing: Production ! Material Requirements Planning ! Define Parallel Processing in MRP
(alternatively, this can be accessed directly from MRP)
Customizing: Production ! Material Requirements Planning ! Planning ! MRP Calculation ! Define Range of Coverage Profile (Dynamic Safety Stock)
(alternatively, this can be accessed directly from MRP)Lot-sizing procedures
Customizing: Production ! Material Requirements Planning ! Planning ! Lot-SizeCalculation ! Check Lot-Sizing Procedure
Rounding profile
Customizing: Production ! Material Requirements Planning ! Planning ! Lot-SizeCalculation ! Maintain Rounding Profile
Planning calendar
Customizing: Production ! Material Requirements Planning ! Master Data !
Maintain Planning Calendar (alternatively, this can be accessed directly from MRP)
Selection ID for routing selection
Customizing: Production ! Basic Data ! Routing ! Routing Selection ! Select Automatically
Scheduling parameters for planned orders
Customizing: Production ! Material Requirements Planning ! Planning !
Scheduling and Capacity Parameters ! Define Scheduling Parameters for Planned Orders
(Note: As of Release 3.0, routing selection is controlled using this table, and no longer by following the menu path Customizing: Production ! Material Requirements Planning ! Planning ! BOM Explosion/Routing Determination ! Define Selectionof BOMs and Routings )
BOM usage
Customizing: Production ! Basic Data ! Bill of Material ! General Data ! BOM Usage ! Define BOM Usages
Selection ID of BOM selection
Customizing: Production ! Basic Data ! Bill of Material ! Alternative Determination ! Define Order of Priority for BOM Usages
Selection of BOM usage per plant
Customizing: Production ! Material Requirements Planning ! Planning ! BOM Explosion ! Define BOM Selection
Calculate the last lot exactly in theindividual segment
MD_LAST_LOT_EXACT
Determine the issuing storage location MD_EXT_SUP
MRP execution
Change package size in parallel MRP planning run
MD_MRP_RUN_PARALLEL
Deactivate MRP element changeability(SAP Note 600940)
MD_INTERACT_PLANNING
Change planning parameters MD_MRP_PARAMETERS
Long-term planning/simulation
Define additional parameters in planningscenario
MD_PLANNING_SCENARIO
You can find additional information regarding functions and implementation in therelease notes, in MRP Customizing, and/or in the above-mentioned SAP Notes.
BAPIs
BAPIs (Business Application Programming Interfaces) enable you to access astandardized programming interface to allow external access to business processesand data in the SAP system.
Feedback SAP AG has made every effort in the preparation of this course to ensure the accuracyand completeness of the materials. If you have any corrections or suggestions for improvement, please record them in the appropriate place in the course evaluation.
