|The following provide a sample
existing AS-IS and TO-BE scenarios.
AS-IS AT XYZPLT
TO-BE / SAP-PROCESS AT XYZPLT
Presently XYZPLT is doing the Material
Requirement Planning manually.
They will collect the norms from Quality
Management and the same will be circulated to Material management with
order quantity and having time to time follow up with stores people as
Some features of MRP include
Planning procedures automatically generate
order proposals to purchasing and to production. SAP planning procedures
can be divided into Material Requirements Planning.
The main function of Material Requirements
Planning is to give the guarantee of material availability to the shop
The output of MRP may either be procured
Carrying Out The MRP run
Planned Orders, Schedule lines and
Purchase requisitions are generated.
The production or procurement quantity
shall be based on the lot sizing procedure specified for that material
in the material master. In order to meet these requirements, MRP calculates
procurement quantities and dates as well as plans the corresponding procurement
The procurement element in the planning
run is the planned order or, for external procurement, the purchase requisition.
Both the procurement elements are internal planning elements that can be
changed, rescheduled or deleted at any time.
If a material is produced in-house,
the system also calculates the dependent requirements, that is, the quantity
of components required to produce the finished product or the assembly,
by exploding the BOM. If a material shortage exists, planned orders are
created at every BOM level to cover proposed requirements.
For external procurement, the system
then converts these planned procurement elements into exact schedule lines
set against schedule agreements. Materials that are procured externally
trigger the purchasing procedure.
The quantities made available by production
or by external procurement are placed in stock and or managed by inventory
The possible values which are envisaged
to be used in MRP run are:
MRP shall always be run at multi-level.
This essentially means that the system
explodes the Bill of Material for a material and generates dependent requirements
for assemblies and components.
These components are also planned to
cover dependent requirements.
If the components also have BOMs, the
system explodes these BOMs also and plans the components.
The system repeats this process until
all BOM levels have been exploded.
While BOM explosion is carried out,
the system will check for the status and validity of the BOM and shall
consider only the specific BOM with active status and which falls within
the defined validity period.
In specific cases where the dependent
material schedule finish date falls later than the start date of its higher
level material, the system will show exception messages at the MRP list
of the dependent material The user shall manually reschedule the higher-level
material production to suit the schedule of the dependent material. All
materials will be grouped as per the department (as per MRP controller)
using the specific material so as to enable each group to view stock situations
of materials relevant to their department. However, MRP shall be run at
the material level or Plant level only.
The systems shall assign number ranges
for planned orders at each plant. If Minimum and Maximum lot size specifies
for material in the material master and the system will create planned
order quantities within the above range. In case where the net requirement
exceeds the maximum lot size, the system will create multiple planned orders.
The net requirements calculation is
carried out in MRP in the planning run after the planning file check and
at plant level. The system checks whether it is possible to cover requirements
with the plant stock and fixed receipts already planned. In the case of
a shortage the system creates a procurement proposal.
Create purchase requisition-1,2,3
Delivery schedules-Schedule lines
Create MRP list-MRP list
Planning mode-Normal mode
Scheduling-Lead time scheduling.
List of business process procedures
List of Transaction Codes related
for Long Term Planning:
MD01 – Total Planning Run (Plant
MD02 – MRP Run (Single Item Multi Level)
MD03 - MRP Run (Single Item Single
MD20 – Create Planning file entry
MD04 – Display / Stock requirements
MD05 – Display MRP List
MD16 – Collective display of planned
MD14 – Individual conversion of planned
MD15 – Collective conversion of planned
MDUM – Convert Planned order into Purchase
MS31 – Create Planning Scenario
MS32 – Change Planning Scenario
MS33 – Display Planning Scenario
MS01 – Total Planning Run (For Long
MS02 – MRP Run, Single Item Multi Level
(For Long Term Planning)
MS04 – Stock Requirement List (Long
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