Hi,
Pls. find the following details regarding MRP Area :
MRP Area
Definition
The MRP area represents an organizational unit for which material requirements planning is carried out independently.
Basically, there are three types of MRP area:
Plant MRP Area
The plant MRP area initially contains the plant together with all its storage locations and stock with subcontractors.
When you have defined MRP areas for storage locations and for subcontractors and you have assigned the materials, the plant MRP area is reduced by exactly this number of subcontractors and storage locations. This is because they are now to be planned separately.
MRP Areas for Storage Locations
You can define an MRP area that consists of a particular storage location, by creating an MRP area and assigning the storage location to it. Material requirements for this storage location are then planned separately from the rest of the plant.
You can also group several storage locations into one MRP area, by creating an MRP area and assigning the storage locations to it. These storage locations are then planned together.
A storage location of a plant may be assigned to only one MRP area.
MRP Areas for Subcontractors
You can also define an MRP area for each subcontractor.
A subcontractor may be assigned to only one MRP area. An MRP area of the subcontractor type may also only contain one subcontractor.
Use
You can carry out MRP specifically for the determined MRP areas. This enables you to carry out differentiated material requirements planning. The requester can be, for example, the production on a particular assembly line or a subcontract order.
The MRP area allows you to have specific control over the staging and procurement of important parts produced in-house and purchased parts for each shop floor area. You can, however, also plan the provision of components for the individual subcontractors.
MRP areas of the storage location or subcontractor type are only suitable for:
components that are planned and produced for stock
finished products that are planned and produced for stock. By assigning a storage location in a sales order or by entering an MRP area when creating the planned independent requirements, you can define whether a material is planned in the plant MRP area or in the MRP area of the storage location.
Finished products and important assemblies intended for make-to-order or engineer-to-order production are always planned in the plant MRP area.
The planning run takes into account the planning with MRP areas as follows:
If you do not enter a separate scope of planning, the system plans the whole plant, that is, all MRP areas in the plant, during the total planning run. If you want to carry out a total planning run for a particular MRP area only, you must specify the required MRP area in the scope of planning.
During single-item, multi-level planning, the system plans the selected material in the MRP area entered. In addition, the system takes into account planning file entries from other MRP areas, for example, if the material is to be procured using stock transfer.
During single-item, single-level planning, the system plans the selected material in the MRP area entered only.
Structure
You define the MRP areas in Customizing for MRP. You can thereby assign the following to an MRP area:
one or more storage locations (example: you want to carry out planning for a particular assembly line and therefore assign a production storage location to the MRP area)
a subcontractor.
You assign the various MRP areas to the materials in the material master. For this, you create an MRP area segment for a material for every MRP area, in which it is used. In this MRP area segment, you can define MRP parameters such as, for example, the lot size or MRP type. This allows you to plan the material differently in the MRP area from how you plan it in the plant MRP area.
MRP with MRP areas for the material is not activated until the material has been assigned to an MRP area. If you have not assigned a material to an MRP area, that is, you have not created an MRP area segment in the material master, the material will continue to be planned in the plant MRP area only. If you have assigned an MRP area to it, the system can plan it in the plant MRP area and in the assigned MRP area.
Integration
You can carry out material requirements planning for MRP areas using all MRP procedures and all lot-sizing procedures.
You can also carry out an independent material forecast for MRP areas using your own parameters.
The material consumption values are updated separately for each MRP area.
A separate ATP check is carried out for each MRP area.
If several storage locations belong to an MRP area, the system can also carry out a check at two levels, that is, at storage location level and at MRP area level.
Example: Subcontractor
You can also carry out planning for components to be provided in subcontracting using an MRP area by defining an MRP area for every subcontractor and assigning the components to be provided to the MRP area of the subcontractor. You therefore plan the requirements to be provided for these components for one subcontractor separately from all other requirements (see Planning for Components to be Provided in Subcontracting).
Depending on the requirements situation, the system creates either stock transfer reservations from the plant to the stock of material provided of the subcontractor or it creates purchase requisitions within subcontracting/third-party order processing, according to the special procurement key settings.
Implementing MRP Areas
Implementation Options
The main reason for you to implement MRP areas is if you would like to plan materials, which are required in different shop floor areas, storage locations or by subcontractors, separately from one another.
As soon as you have activated materials requirements planning with MRP areas, this type of MRP is active at client level, that is, MRP will be carried out in this way in all plants.
Material requirements planning with MRP areas cannot be reversed.
Process Flow
You can implement material requirements planning with MRP areas in three steps:
You convert the existing planning file entries at plant level to planning file entries at MRP area level.
During the conversion, the system creates a plant MRP area for every plant as a background job. This, however, will not affect your planning. The processes in material requirements planning and the planning results remain unaffected.
The conversion is also useful even if you do not work with MRP areas, but still have to plan for several plants, as the new planning file improves system performance during the planning run.
You activate MRP with MRP areas in Customizing for MRP. This causes the MRP area field to appear in the applications of MRP and in related areas. When you enter the plant number, the system automatically fills the field with the number of the plant MRP area. The number of the plant MRP area is the same as the plant number.
This does not affect the planning run as the plant MRP area still corresponds to the present plant.
You define an MRP area, for example, for a storage location. You then assign the materials that are to be planned for this storage location, by creating an MRP area segment in the material master.
Materials requirement planning for this storage location is then carried out separately. The storage location stock is no longer included in the available stock of the plant MRP area. The receipt and issue elements of this storage location (MRP area) are also not taken into account in the plant MRP area. They are only taken into account in the MRP area of the storage location.
If you have already worked with storage location MRP the system still carries out storage location MRP even after the activation of MRP areas. You need to decide in principle whether you want to continue using storage location MRP or whether you want to create MRP areas for the storage locations that are planned separately. It is not possible to simultaneously plan a material using storage location MRP and an MRP area for the same storage location.
If you decide to use MRP areas, you should then try to convert all storage locations that are planned separately to MRP areas in one step. Before you assign the material to an MRP area, you must remove the MRP indicator, which is located in the material master at the storage location organizational level (view MRP 4) in the screen area Storage location MRP.
Even if you have defined MRP areas in Customizing, the system plans the materials in the plant MRP area until you assign the MRP areas to the materials.
Only the assignment of one or more MRP areas to a material, by creating MRP area segments in the material master, actually cause changes in the material requirements planning.
Hope this helps.
Regards,
Tejas
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