MRP VS MPS

[Former Member]

Dear All,

I understand MPS will considered for high value material (normally imported material which costs more) & its has direct impact on your profit margin. So identify those material & run MPS for those items seperately. (Normally in ABC Analysis, A indicates high value & low consumption material) .So all "A class" material will be considered for MPS run.

This is my understanding about MPS. The client has to take the decision about identifying material for MPS run. Based on their input, i will select the MRP type as MPS in material master.

Now, they are asking me to consider all the materials for MPS run without proper study.

What will be the better approach to make them to understand the difference between MRP & MPS?

Your inputs are highly appreciated....

Regards

Senthil

[rupesh_brahmankar3 · Accepted solution]

Dear,

Not all A type of material comes unedr MPS.

Master production scheduling (MPS) is a form of MRP that concentrates planning on the parts or products that have the great influence on company profits or which dominate the entire production process by taking critical resources. These items are marked as u2018Au2019 parts (MPS items) and are planned with extra attention. These items are selected for a separate MPS run that takes place before the MRP run. The MPS run is conducted without a BOM explosion so that the MRP controller can ensure that the Master schedule items (MSI) are correctly planned before the detailed MRP run takes place.

The master production schedule is a line on the master schedule grid that reflects the anticipated build schedule for those items assigned to the master scheduler. The master scheduler maintains this schedule, and in turn, it becomes a set of planning numbers that drives material requirements planning. It represents what the company plans to produce expressed in specific configurations, quantities, and dates. The master production schedule is not a sales item forecast that represents a statement of demand. The master production schedule must take into account the forecast, the production plan, and other important considerations such as backlog, availability of material, availability of capacity, and management policies and goals. Syn: master schedule

Hope clear to you.

Regards,

R.Brahmankar

[Former Member]

Hi,

Is it clear or need more info then log on to sap.com

Anil

[Former Member]

Hi,

Thank you for your reply. I have understood your first paragraph. I couldn't understand your second paragraph.

Can you clarify bit more?

What will be the outcome of MPS run? Is it will be same as MRP?

After MPS run, the planned order will be created...?

Thanks

Senthil

[rupesh_brahmankar3]

Dear,

Consider a finished product A,which has a main assembly A1 & in this example we will take A1 for MPS,lets say for making A1 you need a special machine(Work center) & this machine is a critical resource for that company,So A1 is planned ahead in MPS to ensure that critical resource is efficiently utilised & at the same time A1 is also made on time,so MPS is run on A1 first before going for the MRP run(for the rest).As a result of MPS the necessary orders are planned at that level(in our case planned order for A1). Dependent requirements (if any) are placed on the next BOM level down, and then the process stops,Like wise if in your compnay if there are n products amoung which some products contibute a high profit then you can even take them afor MPS

Normally MPS run before the MRP and during MPS system plans only those parts which are marked as MPS parts via MRP type. Here MRP plans single items (MPS items) and dependent requiremenst will be created for the parts which are just below the MPS assembly. It is advisable to run MPS a day before of the MRP run.

For MPS run you have used tcode MD41. It is a single item multi level planning run.

MPS plan for below one level only. But this is the tcode provided for multi level run.

For single item single level run use tcode MD42.

In your scenario, system created palnned order upto ROH level, eventhough HALB & ROH mrp types are PD.

But with tcode MD02 or MD03, can not run MRP type M0 and series

During normal MRP run system will not plan MPS parts again. only dependent assemblies and parts will be planned.

First run MPS only with MRP type M0,M1,M2 and all and run with MD42 and then go for MRP in MD02 or MD03.

You can schedule MRP run , First run MPS items and then MRP in MDBT also.

Hope clear to you.

Regards,

R.Brahmankar

[Former Member]

Hi,

Thank you. One more query....

Let us consider the below scenario:

The below scenario is for make to order (MTO). I got the item A (FERT)Sale order for 100 quantity.

My BOM header material is "A" (FERT item) & MRP type is PD (Non MPS item).

I have created BOM for material "A", which consists of three items as below:

Item 1: "B" (HALB item) & this is MPS item (MRP type : M1). Item B in-turn has the BOM, which consists of two raw materials (ROH) namely R1 & R2 (both Non MPS item & MRP type PD).

Item 2: "C" (ROH item) & this is Non MPS item (MRP type : PD)

Item 3: "D" (ROH item) & this is MPS item (MRP type :M1).

Now i am running t.code MD41 (Single-Item , Multi Level), for item "B" (HALB item).....

clarifications:

1. As you said, the system will create planned order for items B, R1 & R2 . It just plan for the item (ie item B) & immeadiate one level down item (ie R1 & R2). Am i right?

2. Yesterday i have already run MD41 for item B. I have forgotten to run MD41 for item D yesterday, even it is MPS item. Now i am running MRP (MD02) for BOM header material "A" (Non MPS item). It is regular MRP run. As per my understanding, the system will do the following.

i. Since we have already run MD41 for item B & also it is a MPS item, system will NOT consider Item B for MRP run (MD02).

ii. Item R1 & R2 will NOT be planned again during MD02, even those items are Non MPS items. Because we have already run MD41 (MPS-single item, multi level) for Item B ( R1 & R2 is BOM component for BOM header material B). That in-turn create planned orders for R1 & R2 also. am i right?

3. Since item C is Non MPS item & planned order will be created for item C as a result of MD02 run. am i right?

4. Item D is MPS item. But i have fogotten to run MPS (MD41) yesterday. Now i have already run MD02 without running MD41 for material D. System will NOT consider item D for MRP run since it is a MPS item. So NO planned orders will be created for item D at the end of MD02. But after MRP run, we can run MD41 for item D. (Even though is not a suggested practice). am i right?

4. what is the functional reason to run MPS before MRP run?

Thank you

Senthil

[rupesh_brahmankar3]

Dear,

You will get answer all your doubt in this thread please read it completely tehn try and come back.

[MPS Material|]

I have given the same example that you want in this thread. As it is sales order level then you need to run MRP in MD50. Before this you can run MPS in MD41.

Regards,

R.Brahmankar

[rupesh_brahmankar3]

Dear,

Please come back if any problem. Oterwise closed the thread.

Regards,

R.Brahmankar