UT Business Material Requirements Planning in SAP Presentation

Description

This presentation about What is Material Requirements Planning? How is it used in SAP Materials Management?. ExplainMaterial Planning Process
Part I
BSAN 461
Business Process Management
Review: The General Cost of Inventory
Key Business Processes
Material Planning
• The main objective of material planning
• Balance the demand for materials with the supply
• Demand: fulfillment and production processes.
• Supply: procurement and production processes.
• So that an appropriate quantity of materials is available
• When they are needed
• Other processes — asset management, project systems, warehouse management — also affect
demand and supply
• The basic questions material planning is concerned with are …
• What materials are required?
• How many are required?
• When are they required?
Touring Bike BOM
50 Touring Bikes require:
• 100 Wheel Assemblies
each requiring
• 100 Tires
• 100 Tubes
• 100 Wheels
• 100 Hex Nuts
• 200 Lock Washers
• 100 Socket Head
Bolts
Study Topic Presentation
Which master data are relevant for material planning? (Jakob McConnell)
• The master data relevant to material planning are:
• bill of materials
• product routing
• material master
• product group
Study Topic Presentation
List and describe the steps in the material planning process. (Connor Lenczden)
• The process begins with sales and operations planning (SOP), which uses strategic revenue
and sales objectives established by senior management to create specific operations plans.
• The demand management step translates these plans into requirements for individual
materials.
• Requirements specify how many of the materials are needed and when they are needed.
• These requirements are then used by the materials requirements planning (MRP) step to
generate the final procurement proposals for all materials.
• In turn, these proposals trigger the production or procurement processes that make or buy
the needed materials.
• Ultimately the company uses these materials to execute the fulfillment process.
A Basic Material Planning Process
Elements of the Sales and
Operations Planning Step
Organizational Data
Master data
Triggers
Transaction Data
User Input
Tasks
Operations Plan
(Production Plan)
Sales Plan
Periodic planning need
Events affecting demand
Data
Create/Import sales plan
Generate production plan
Evaluate feasibility
Outcomes
Material Master Data for Material Planning
MRP type
• MRP type specifies the
production control technique
used in planning.
– Consumption-Based Planning
– Materials Requirement Planning
(MRP)
– Master Production Scheduling
(MPS).
– Can also be set to “no planning,”
in which case the material is not
included in the planning process.
Lot size key
• A lot size is the quantity of
material that is specified in the
procurement proposals
generated by the material
planning process.
• The lot size key specifies the
procedure that is used to
determine the lot size.
Material Master Data for Material
Planning
Material Master: Procurement Type
• In house or internally (production process)
• Externally (procurement process)
• Both
• None
• GBI
• Finished goods: both
• Raw materials: externally
• Semifinished goods: internally
12
Material Master: MRP Views
• MRP 1
• View defines the overall planning strategy used for the material and determines how much
material the company should procure.
• MRP 2
• Identifies the times the system can use for scheduling and conveys data that the system
uses to determine how to procure materials (make vs. buy).
• MRP 3
• Identifies the strategy the system will use to calculate how much material is available, and
it determines how the material will be produced.
• MRP 4
• Contains data that the system uses to select the correct BOM
MRP Material Requirements Example
Item/Component
REQ/
POR
Professional Touring Bike
(PXTR 1000)
REQ
Week 1
Week 2
Week 3
Week 4
Week 5
POR
Professional Touring Bike
Frame
REQ
POR
Aluminum Wheel Assembly
REQ
POR
Assembly time is one week
Procurement lead time for Aluminum Wheel Assemblies is 3 weeks
Production lead time for the Frame is 6 weeks
Week 6
Week 7
Week 8
Week 9
Week 10
100
Material Requirements
Item/Component
REQ/
POR
Professional Touring Bike
(PXTR 1000)
REQ
Week 1
Week 2
Week 3
Week 4
Week 5
POR
Professional Touring Bike
Frame
Week 6
Week 7
Week 8
Week 9
Week 10
100
100
REQ
POR
Aluminum Wheel Assembly
REQ
POR
Assembly time is one week
Procurement lead time for Aluminum Wheel Assemblies is 3 weeks
Production lead time for the Frame is 6 weeks
Production
order in
Week 9
Material Requirements
Item/Component
REQ/
POR
Professional Touring Bike
(PXTR 1000)
REQ
Professional Touring Bike
Frame
Week 1
Week 2
Week 3
Week 4
Week 5
Week 7
Week 8
Week 9
100
REQ
100
REQ
POR
Assembly time is one week
Procurement lead time for Aluminum Wheel Assemblies is 3 weeks
Production lead time for the Frame is 6 weeks
Week 10
100
POR
POR
Aluminum Wheel Assembly
Week 6
Material Requirements
Item/Component
REQ/
POR
Professional Touring Bike
(PXTR 1000)
REQ
Professional Touring Bike
Frame
Week 2
Week 3
Week 4
Week 5
Week 6
Week 7
Week 8
Week 9
Week 10
100
POR
100
REQ
100
POR
Aluminum Wheel Assembly
Week 1
100
REQ
POR
Production order in Week 3
Assembly time is one week
Procurement lead time for Aluminum Wheel Assemblies is 3 weeks
Production lead time for the Frame is 6 weeks
Material Requirements
Item/Component
REQ/
POR
Professional Touring Bike
(PXTR 1000)
REQ
Professional Touring Bike
Frame
Week 2
Week 3
Week 4
Week 5
Week 6
Week 7
Week 8
Week 9
Week 10
100
POR
100
REQ
100
POR
Aluminum Wheel Assembly
Week 1
100
REQ
POR
Assembly time is one week
Procurement lead time for Aluminum Wheel Assemblies is 3 weeks
Production lead time for the Frame is 6 weeks
200
Material Requirements
Item/Component
REQ/
POR
Professional Touring Bike
(PXTR 1000)
REQ
Professional Touring Bike
Frame
Week 2
Week 3
Week 4
Week 5
Week 6
Week 7
Week 8
Week 9
Week 10
100
POR
100
REQ
100
POR
Aluminum Wheel Assembly
Week 1
100
200
REQ
POR
200
Production order in Week 6
Assembly time is one week
Procurement lead time for Aluminum Wheel Assemblies is 3 weeks
Production lead time for the Frame is 6 weeks

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