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PP Planning Workshop
Agenda
Attendees:
Production Planning
Topics:
Demand Management
Master Production Schedule
Material Requirements Planning
Forecasting
Procurement
Demand
Management
MPS
MRP
Manufacturing
Execution
Order
Settlement
Inventory
Inventory
Costing
Costing
Reporting
Reportingand
andAnalysis
Analysis
CO/PA
OK?
SOP
OK?
MPS
OK?
MRP
OK?
Profitability analysis
- Revenue plans
- Sales plans (quantities)
Planning Levels
Region 1
Region 2
Product group
Product 1
Product 2
Assembly 1
Assembly 2
Part 1
Part 2
Feedback/Replanning
Planning Steps
Demand Management
DEMAND MANAGEMENT
Demand
Demand program
program
MPS or MRP
Demand management determines the requirement dates and quantities for important
assemblies and specifies the strategies for planning and producing or procuring finished
products.
Discussion
What is the Production Forecast made up of ?
Motorcycle
Run MRP at
this level.
Power Train
Motor
Gear
Exhaust
Chassis
Front
Wheel
Rear
Wheel
Frame
Brake
System
MPS Run
MPS creates planned orders for top-level items
to satisfy independent requirements.
Independent
Requirement
Planned order for the
motorcycle creates
dependent requirements
for all components.
Motorcycle
Power Train
Chassis
There are no
planned orders
at this level.
Time
Issues
Single-item,
Single-item,single-level
single-levelplanning
planning(MPS)
(MPS)
Options
for
manually
changing
Options for manually changingthe
themaster
masterplan:
plan:
++create
create
++delete
delete
++change
change
++reschedule
reschedule
Single-item,
Single-item,multi-level
multi-levelplanning
planning(MRP)
(MRP)
Planning
Planningaacomplete
completeBOM
BOMstructure
structure
Option
Optionof
ofmanually
manuallychanging
changingthe
theproduction
production
plan
planfor
foreach
eachmaterial
materialin
inthe
theBOM.
BOM.
In single-item, multi-level planning, the complete BOM structure is planned for a particular
material.
In single-level planning, the MRP controller can display the planning results of individual
assemblies or components, and correct them if necessary, before planning further.
The net change planning procedure plans only those items that have undergone a
change relevant to planning since the last MPS/MRP run
In net change planning in the planning horizon, MPS/MRP is carried out only
within a defined planning horizon
MRP Procedures
Materials planning
Consumption
based
Reorder point
procedure
Manual
reorder point
MRP
Purchase
Requisitio
n
Material
Quantity
Due Date
Material
Plant
Element lines:
- Current stock
- Supply items
- Demand items
- Quantity
- Date
Material
Stock/requirements list
Purchase
Purchaserequisition
requisition
Purchase
Purchaseorder
order
Planned
orders
Planned orders
Sales
Salesorders
orders
Reservations
Reservations
Warehouse
Warehousestock
stock
Production
Productionorders
orders
The stock/requirements (S/R) list displays the most up-to-date situation of stocks and
requirements (i.e., supply and demand information)
The S/R list contains the scheduled date, receipts and requirements quantities and resulting
available quantity that represents planned stock
MRP list
Requirements
Requirements
Purchase
Purchaserequisitions
requisitions
Planned
Plannedorders
orders
Element lines:
- Current stock
- Supply items
- Demand items
- Quantity
- Date
Planning result
Material
Plant
Planning
file
The MRP list displays the future stock/requirements situation at the time of the last
planning run (i.e., the planning results for the material)
During the planning run the R/3 System creates MRP lists if the creation indicator was
selected
The MRP list is a tool for reworking a planning result with selection options (material,
plant, MRP controller, exception messages)
Discussion
How often is Planning process run ?
Planning
Planning
Production
Production
Sales
Sales order
order
Customer
Customer
Requirement
Requirement
Consumption Process
Comparison
Comparison with
with
planning
planning quantities
quantities
Forecast
Forecast
Total
Total
Requirements
Requirements
Master
Master Plan
Plan
Planning
Planning quantities
Customer requirements
Backward/Forward Consumption
Planned
independent
requirements
Backward/forward consumption
1
Time
Sales Orders
Backward
period
Forward
period
InInbackward/forward
backward/forwardconsumption
consumptionwhen
whenaasales
salesorder
orderisiscreated,
created,ititisisfirst
firstallocated
allocatedtotothe
the
independent
requirement
in
the
most
recent
past.
If
the
order
is
larger
than
the
independent
independent requirement in the most recent past. If the order is larger than the independent
requirement,
requirement,the
thesales
salesorder
orderisisallocated
allocatedtotothe
thenext
nextindependent
independentrequirement
requirementthat
thatlies
liesininthe
the
past
until
all
independent
requirements
have
been
consumed
within
the
defined
consumption
past until all independent requirements have been consumed within the defined consumption
period.
period. Once
Onceall
allofofthe
thepast
pastindependent
independentrequirements
requirementshave
havebeen
beenconsumed,
consumed,the
thesales
salesorder
order
isisallocated
to
the
first
independent
requirement
in
the
future.
allocated to the first independent requirement in the future.
Planned Orders:
Basic Information
A planned order represents a planned receipt of a material in a plant. It
specifies when the material is required in stock and the quantity that is
expected.
Planned orders are converted into production orders for in-house
production or into purchase requisitions for external procurement.
Capacity
requirements
Items
A
Material
Material
Materialcomponent
component
--Quantity
Quantity
--Date
Date
Operations
Periods
Periods
The planned goods receipt determined by net requirements calculation covers the
requirement.
Planned Orders
MRP
Planned orders
PF
PF
PS
PO
PS
PO
Opening period
x days later
Today
x days earlier
Planned orders have a planned start date (PS), planned finish date (PF) and a planned opening
date (PO).
The planned opening date is the date on which a planned order should be converted into a
purchase requisition or production order.
Planned orders
PF
PF
PS
PO
PS
PO
Opening period
x days later
Today
x days earlier
Production
Order
Purchase
requisition
Production Orders
What is to be produced
NEXT
BACK
EXIT
Production
Order
MRP
Production Order
Order header
Operations
Material components
Production resource/tool
Costs
Planned
100 20
Target
50
Actual
Material master
Bill of material
Routing
Planned cost records
Other manually entered
information
explodes the bill of material (BOM) and transfers the BOM items
into the order.
Scheduling
Scheduling
For External
Procurement
Determine the
delivery and release
dates by
Backward
scheduling
or
Forward
scheduling
For In-house
Production
Determine the
basic dates for
production by
Backward
scheduling
or
Forward
scheduling
Float after
production
10
Order
Order start
start
date
date
20
Production
Production
start
start date
date
30
Production
Production
finish
finish date
date
Order
Order
finish
finish date
date
Operations
Operations
(from
(from the
the routing)
routing)
Production
Order
Availability check
Order release
Printing
Printingof
of
documents
documents
Material
Material
withdrawal
withdrawal
Processing
Processing
Completion
Completion
confirmation
confirmation
Goods
Goods
receipt
receipt
Settlement
Settlement
Production
Order
Availability check
Order release
Printing
Printingof
of
documents
documents
Material
Material
withdrawal
withdrawal
Processing
Processing
Completion
Completion
confirmation
confirmation
Goods
Goods
receipt
receipt
Settlement
Settlement
Order release is the basis for many subsequent processes in the production order
(printing order documents, material issues, etc.)
You can release an individual operation, the entire order or several orders at the same
time
Discussion
What is the Conversion process ?