MRP Stabilization in 4 Steps

IBM Global Business Services
MRP stabilization in 4 steps
Copyright IBM Corporation 2010
MRP stabilization in 4 steps
1.

Plan
Check Master Data Production Planning Purchase Planning
2.

DO
Production Execution Purchase Execution
3.
Check
Check Planning and Execution Results
4.
ACT
Act on results and modify master data and planning data
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1. Plan
Check Master Data
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1. Plan
Production Planning
Plan what needs to be produced/dispatched and produce/dispatch as per plan

1. MD61 : Update customer plan for 4 month rolling basis (GC plan) and copy in GP version for next 3 months. ZMD16: Delete old planned orders which are not going to be used for production. Frequency: every day morning or every day evening ZSDSCHD: Update daily dispatch plan if there are any changes Frequency: 25th of each month for next months 30 day daily plan . Every day morning or every day evening, update dispatch plan on 3 to 6 days rolling basis. MD01/MD02 : Run MRP to generate planned orders for production and Schedule line for purchase Frequency: every day morning or every day evening ZPLAN1: Release planned orders for production . Frequency: Start of each shift or twice in a day. Check planned orders which are to be executed in the coming shift (8 AM for shifts 2 and 3 rd for current day then at 3 PM for 3 rd shift today and 1st shift tomorrow)
2.
3.
4.
5.
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Production Planning continued Fine tune production plan for each Production Line on daily/shift basis using ZPLAN1 transaction. In this transaction planned order quantity, date etc can be changed based on need. Release production Plan for execution on the shop floor using ZPLAN1 transaction. Monitor planned ver actual production using reports ZPPACT on shift/daily basis. ZPBLOG is report to monitor production booking done. ZPREP is to be printed at the end of each shift to record production of the shift.
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1. Plan
Purchase Panning
After MRP execution schedule lines will be generated for regular purchase It will consider requirement from Production plan above, available stock and quota arrangement if any, to generate schedule lines. If there is no scheduling agreement then it will create purchase requisition which can be converted to purchase order Fine tune schedule lines generated by MRP using tcode MD04/ MD05, ME3M, ME38 If schedule is changed manually then, care should be taken that it is deleted or reduced if vendor is not following the schedule line (Do not create open schedule line for very high quantity eg 999999). Monitor schedule lined on daily basis as there are chances that the schedule lines will change on daily basis, based on change in production plan. Schedule lines can be freezed using transaction ZMTF, the materials for which schedules are freezed using this transaction will not be changed in the MRP run for the selected date range.
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2. DO
Production Execution
MRP will generate planned orders for finished goods and subassemblies. This can be fine tuned using ZPLAN1 transaction 1. MF60: Pull list to be printed by production and submitted to store for issuing material for production. Frequency: Start of each shift or twice in a day. (8:30 AM for shifts 2 and 3rd for current day then at 3:30 PM for 3rd shift today and 1st shift tomorrow) It will consider the planned orders which are still open and the new planned which are released for production step 5 for production planning MF60: Issue by store, store to complete the process of issuing materials for production before new request is printed by production. Frequency: Start of each shift or twice in a day. (Before 2:30 PM for 2nd and 3rd Shift of current day and after 4 PM for the 3rd and 1st shift of next day) It will consider the planned orders which are still open and the new planned which are released for production from step 5 for production planning ZMF42: Production Booking for the released planned orders. When production is booked for the released planned orders it will be reduced by the booked quantity. And the raw materials will be consumed as per the booked quantity. Frequency: Start of each shift or as frequently as possible.
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3.
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2. DO
Purchase Execution
Fine tune schedule lines on need basis 1. MD04/MD05/ME3M/ME38: Modify schedule lines if there is difference in schedule line and actual requirement. Frequency: On need basis 2. ME9E: Print Schedule line and communicate to vendor. OR ZSCHEDULE: Get the list of open schedule lines and communicate to vendor Frequency: On need basis 3. MIGO: Post gate entry and GRN Frequency: At the time of material arrival
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3. Check
There should be close relation between plan and execution. This should be checked on regular basis and corrective actions should be taken for the deviations. Following reports can be used to monitor this in various areas 1.
1.
Sales/Dispatch ZVDD : Planned vs Actual dispatch report (Use Help button beside execute button to understand report output) ZSDSCHD: Dispatch/Production plan for the FG Production
1. 2. 3. 4.
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2.
ZPPACT: Plan Vs Actual Production ZPLAN1: Production Plan ZPBLOG: Day wise shift wise production Log ZWIP: WIP at production cells Purchase
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ZSCHEDULE: Vendor wise schedule Vs Actual Receipt MD05 : Stock requirement list collective with traffic lights for early warning ZCOV : Stock coverage report based on material type
CONFIDENTIAL Copyright IBM Corporation 2010
4. ACT
Based on the deviations in the planning results correct and modify data used as input for planning. Few of regular likely deviations are mentioned below with corrective actions:
1.
1.
Sales / Dispatch: ZSDSCHD does not contain a FG for which dispatch plan needs to be updated Reason : Scheduling agreement does not exists for the material. In ZVDD plan is less than actual dispatch, modify next days plan to accommodate the disparity. In ZVDD plan is more than dispatch if required reduce next days plan so that yesterdays plan be used for todays plan
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3.
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4. ACT
2.
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4.
Production ZPPACT: difference in production plan and actual production. Delete old planned planed orders which will no longer be used. Correct dispatch schedule if required. This report can be used to track daily plan VS production completed. ZPLAN1: 1. Cannot see planned orders for a particular material, check master data for the material as mentioned in slide for master data. 2. Planned order exists for material which is not to be manufactured, delete planned order, change quantity, change date etc. ZPBLOG: Check ZPBLOG after each shift to ensure production Booking done for the shift. ZWIP: this report can be used to monitor WIP stock at various shop floor booking stages.
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4. ACT
3. Purchase Fine tune schedule lines on need basis 1. MD04/MD05/ME3M/ME38: Modify schedule lines if there is difference in schedule line and actual requirement. Frequency: On need basis ME9E: Print Schedule line and communicate to vendor. OR ZSCHEDULE: Get the list of open schedule lines and communicate to vendor Frequency: On need basis OR ZMMSA:
2.
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This presentation is just a guide line. Please refer User manuals for details process for the respective transactions
THANKS!!!!
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MRP Stabilization in 4 Steps

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IBM Global Business Services