Hi,
Here is the Note on MRP:
Consumption based planning
• Reorder planning
• Forecast based planning
• Time phased planning
Details of re - order planning
Our motive is to maintain optimum stock level of all the material included in the resource planning . so in this user or system sets a particular quantity of stock as reorder point . Whenever stock quantity fall below this point(reorder point) mrp comes into action and generates procurement proposals according to the settings done in implementation guide.
Example : maximum stock level = 800 pc.
Reorder point = 350 pc
Safety stock level = 200 pc
Suppose due to goods issue stock level falls to 300 pc then as the planning run is carry out by the controller it finds out shortage quantity = 400 – 350 = 50 pc
To maintain reorder stock level system generates planned order or pur. Requi..
Flow of consumption based planning
TO UNDERSTAND THIS JUST USE TRANSACTION CODE MD03
Activate mrp for your plant
Set up planning file
automaticaly
Via img screen
Via transaction code
Scope of planning
Total planning
Single level planning
Mrp area
Planning run type
Regenerative planning (neupl)
Net change planning (netch)
Net change planning in planning horizon (netpl)
Planning mode
Planning mode 1.
Planning mode 2.
Planning mode 3.
Low level code
Relevant to Bom.
Net requirement calculation
For reorder point
For forecast based
lot size procedure
Static
Periodic lot size
Optimum lot size
Rounding
Rounding value
Rounding profile
Scheduling
Forward scheduling
Backward scheduling
Source of supply
 Quota arrangement
Split quota
Allocated quota
Schedule agreement
Creation indicator
Output ::::::> planned order, pr, po, prod. order
Reorder types
• Manual reorder planning (VB)
 While creating material master in mrp1 view user has to manually give reorder point.
• Automatic reorder planning(VM)
System will insert reorder point quantity on the bases of past consumption values.
Preferred lot size procedure is fixed lot size a& replenishment up to maximum level
Customization settings
activate mrpconsumption based planning--material management ---Img-
Before we enter into the world of cbp let us understand few terminologies
Mrp profile
o PROFILE IS A HEADING UNDER WHICH WE ARE PROVIDING CERTAIN VALUES AS DEFAULT OR FIXED VALUES IN CERTAIN FIELDS AS PER THE USER NEED(transaction code:::>mmd1).
FOR VIEWS MRP1, MRP2 , MRP3, MRP4
EX: FIELD FIXED DEFAULT VALUE
MRP TYPE YES VB
REORDER POINT YES 250
FORECAST PROFILE
o PROFILE IS A HEADING UNDER WHICH WE ARE PROVIDING CERTAIN VALUES AS DEFAULT OR FIXED VALUES IN CERTAIN FIELDS AS PER THE USER NEED (Transaction code :::> mp80).
FOR VIEWS FORECAST
EX: FIELD FIXED DEFAULT VALUE
FORECAST INDICATOR YES C
Set up planning file
o Planning file contains or includes the name of all the materials which are having relevant information in mrp views in material master .
o only those materials which are included in planning file will undergo
material resource planning.
Create planning file using customization
set up planningactivate mrp-planning-cbpmmImg--- file.
o create variant and save
o click on immediate or otherwise on scheduled
significance of immediate is that system will start processing for searching out relevant materials to be included in mrp and this activity is carried out in background.
Create planning file manually
o use transaction code ::::::::::.>
o give name of material and select the relevant check box press enter.
Mrp area
The MRP area represents an organizational unit for which material requirements planning is carried out independently(or separately from plant)
Scope of planning
It means at what level material resource planning has to be carried out following options are available.
• for several plants
• for one MRP area
• for several MRP areas
• for a combination of plants and MRP
perform settings for scope of planning
define scope ofplanning--cbp-mm-img- planning
here you can club together several mrp areas under one head so as to carry out there planning simultaneously.
But the prerequisite for this is you must have created mrp areas before carrying out planning and assign respective materials to this mrp area.
Planning run type
Regenerative
All the materials which are having requisite data in mrp views will undergo material resource planning.
Demerit of this run type is that it consumes lot of resources
Net change planning
This run type strives to reduce resource consumption will carrying out planning run as only those materials are included in this which has undergone any change in stock levels due to any reason
Net change planning horizon
Only those material are included in planning file whose stock level changes due o any reason in particular interval of time
Planning mode
Its sole purpose is to see if any purchasing document generated in the last run is still lying without being used for either production or procurement and which has not been firmed by the mrp controller or purchase department
Till the next run
The following options are available:
• adapt existing planning data (planning mode 1)
• re-explode BOM after change to BOM (planning mode 2)
• delete planning data and recreate procurement proposals (planning mode 3)
Planning mode 1
This is not relevant for regenerative run type
System automatically set type of planning mode depending on certain criteria or you can set it manually on the initial screen of planning run
Planning mode 2
This is relevant for all the planning run types
System automatically set type of planning mode if a re-explode indicator is there in planning file in front of that material or you can set it manually on the initial screen of planning run
Planning mode 3
System automatically set type of planning mode if a re-set proposal indicator is there in planning file in front of that material or you can set it manually on the initial screen of planning run
This is relevant for all the planning run types. In planning mode 3 existing procurement proposals that are not firmed are completely deleted from the database and recreated. The system then re-explodes the BOMs
NOTE It is important to set the planning run to planning mode 2 or 3 in the initial screen if changes have been made in Customizing or the routing, because no planning file entries are created automatically for the materials affected by these changes.
Question : what is the difference between re-scheduling and planning mode.
Answer : planning mode looks out for only those purchasing documents which are not yet firmed whereas rescheduling focus only on those which are already firmed but has not produced any results
Net requirement calculation
NOTE::::> Issue elements, such as, customer requirements, planned independent requirements, or reservations are only displayed and are not included in the net requirements calculation.
Lot size procedures
Static lot size
Lot for lot order quantity (EX IN MRP VIEW 1)
o Order quantity is same as the requirement quantity and planning run is carried out daily .
Fixed lot size(FX IN MRP VIEW 1)
o It is used only in case particular material is delivered in fixed quantity by the vendor and order proposal is generated of fixed quantity as given in material master
 CUSTOMIZATION SETTING for fixed lot size.
GIVE THE THRESHOLD VALUE FOR LIMITING THE NO OF ORDER PROPOSAL IN CASE OF FIXED LOT SIZE
DEFINE ERRROR PROCESSING IN PLANNINGPLANNING-CBPMM-IMG-- RUN
Fixed lot size with splitting and overlapping
Replenishment up to maximum stock
Periodic lot size
Optimum lot size
Creation indicator
It decides whether to create planned order or to create purchase requisition or schedule lines
purchase requisitions within the opening period and planned orders outside of the opening period.
When you select this indicator, the system creates purchase requisitions instead of planned orders when it determines an opening date that is before the date of the planning run.
The opening period for the planned order represents the number of workdays that are subtracted from the order start date in order to determine the order opening date. This period serves as a time float, which is available for the MRP controller when converting a planned order into a purchase requisition.
You define the opening period for the planned order in Customizing for MRP in the IMG activity Define floats (scheduling margin key) and assign it to the material in the Scheduling margin key field (MRP 2 view) in the material master.
Float
Planned order (md11)
It is created by the mrp controller
Rounding profile
It used only in case if vendor specifies that he will supply material in a fixed number . so the required quantity has to be at least eual to this.
Rounding value
 Profile
You define rounding profiles in Customizing for MRP in the IMG activity Define rounding profiles.
\
Scheduling
Scheduling determines the order start and the order finish dates of the procurement elements.
o Delivery date (corresponds to the order finish date)
o Release date (corresponds to the order start date)
In forecast-based planning, the basic dates are calculated in backward scheduling, in reorder point planning, they are calculated in forward scheduling.
Backward
For materials that are planned according to the MRP and forecast-based planning procedures, the requirement dates in the future are known. The materials must be available by these dates. The release date for the purchasing department is calculated during scheduling, that is, the date by which the materials must be ordered so that they are available for the requirements date.
The system starts with the requirements date and then schedules backwards to determine the release date of the purchase requisition (order start date of planned order, which is to be procured externally
If you do not want the system to switch to forward scheduling automatically, you can specify per plant in Customizing for MRP, in the IMG activity Parameters for determining the basic dates that the system is to continue the backward scheduling calculation even if the resulting start date lies in the past.
Forward
For materials planned according to the reorder point procedure, the material shortage date is the date that the shortage was detected by the planning run
In forward scheduling, the opening date is of no significance as the ordering process is started immediately.
Firming
Creation of exception messages
Exception messages depend on the transaction being carried out and are meant to inform you of an important or critical event (for example, start date lies in the past, safety stock has been exceeded).
rescheduling
The rescheduling check is used to change the dates of already existing firmed receipts not planned on the same day as the requirement to suit the requirement date. For this purpose, the system displays the
• per plant in the IMG activity Carry out overall maintenance of plant parameters
mrp list (md05)
The system creates MRP lists during the planning run according to how you set the creation indicator. These lists contain the planning result for the material. The MRP list always displays the stock/requirements situation at the time of the last planning run and it also provides a work basis for the MRP controller. Changes that are made after planning date are not taken into consideration, so the list is static.
stock requirement list (md04)
In the stock/requirements list, the most up-to-date stock and requirements situation is displayed. It is dynamic
Thanks,
Kumar Arcot
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