PRODUCTION PLANNING MODULE

FI FI HR HR

CO CO

QM QM PM PM

PP PP

SD SD

MM MM

PS PS

Organizational and Master Data

Business Process for Manufacturing Planning and Execution

Reporting and Analysis

Sales Info System Forecasting Sales & Oper. Planning Demand Mgmt Order Settlement

Procurement

MPS/MRP Material planning Manufacturing Execution

CO/PA

Planning Process Execution Process

Requirement from sales/marketing Production Planning Check Availability Components no yes Run Schedule Qtys Capacity no yes

REM

Purchasing

Shift dates / Provide Addl. capacities

Sch & Cap Levelling Mfg. Execution

Receipt of Fin Goods In Stores Backflushing

Requirement from sales/marketing Production Planning Check Availability Components no yes Production Order Capacity no yes

Discrete

Purchasing

Shift dates / Provide Addl. capacities

Sch & Cap Levelling Mfg. Execution

Receipt of Fin Goods In Stores Production Confirmation

COMPONENTS Sales Info System Information contains total sales orders already obtained, incoming sales orders, pending sales orders product wise, customer wise, region wise. Forecasting Based on the past history of consumption, a forecast of the sales figures for a product can be made. Future projections are made using one of the Statistical forecasting methods.

CO/PA Projections will be based on the companys future projection of costing and profitability analysis. Sales & Operations Planning Higher level planning i.e.overall planning at company level Yearly/Half yearly/Quarterly Planning Demand Management Management of Requirements Requirements can be from sales forecasts, sales orders,etc.

MPS Planning of items that greatly influence the companys profits or consume critical resources/dominate production processes. After the production plan of these critical items are firmed up, the planning of other components are taken up. MRP This is the total planning of all the components taking into consideration the existing requirements and stocks. Creation of purchase requisitions, production orders,etc. Final step in the planning process.

MANUFACTURING EXECUTION Discrete Manufacturing Production orders are released Materials are issued Completion confirmations are performed Goods are received into stock Repetitive Manufacturing Run Schedule quantities are viewed Quantities are confirmed by Backflushing Goods are received into stock

ORDER SETTLEMENT Costs accrued to an order are debited to one or several allocation receivers belonging to financial or managerial accounting.

STANDARD PRODUCTION PLANNING REPORTS Stock/Requirements List Lists the latest stock/requirement position of a material in the plant i.e. planned orders, production orders,etc. Production Plan This report lists the monthly production plans material and plant wise. Orders This report lists the orders pending/completed for a material material wise or work center wise..

STANDARD PRODUCTION PLANNING REPORTS Consumption Lists the consumption of a material for the period in question. Quantity produced This report lists the quantity of the material produced during the Period in question. Work center Loads This report lists the available capacities, required capacities, remaining available capacities and %load for the work center.

STANDARD PRODUCTION PLANNING REPORTS Missing parts Lists the missing parts that are required for the production of a material. Backlogs Lists the backlog of the load at a work center for the period in question.

Production Planning Basic Data

Routings Materials Work Centers

Production Facilities

PP Basic Data

Production Resources/Tools

Inspection Plans Bills of Material

Capacities
F06010

SAP R/3 Integration Model

Customer Customer
Sales Order Shipment Credit Limit Material Availability Check

Sales & Transfer of Requirements Sales & Distribution Goods Issue to SO Distribution
Invoice

Sales Forecast / Plan

Production Production Planning Planning

Production Order

Production Order Receipt Production Cost

Accounting Document

Materials Materials Management Management

Invoice Receipt Goods Receipt

Receivable Accounts / Cash Receipt

Finance & Accounts Payable Vendor Finance & Vendor Controlling Controlling

Purchase Order

Organizational Structures in R/3

Views
Cost accounting External logistics Accounts Internal logistics (MRP/Production ) Inventory management

Levels
Group Controlling areas Sales organizations Purchasing organizations

Company codes Valuation areas Plants Storage locations/batches/special stocks

Material Master Data

Material Master

General Data
Data applicable throughout the client e.g. Material number Description Units of measure Weight Volume Product hierarchy

Sales Specific Data Plant Specific DataSt. Loc. Specific Data

Data dependent on sales organization and distribution channel e.g. Delivering plant Sales text Sales units Shipping data Division Data relevant for planning and production e.g. MRP profile Production costs Planning data Valuation Data referring to storage and inventory management e.g. Quantities Special stock Warehouse attributes

Material Types in the Standard SAP

Material Type
DIEN ERSA FERT HALB HAWA HIBE LEER NLAG ROH VERP WETT PROD

Description
Service Spare Part Finished Product Semi-finished Product Trading Good Operating Supply Empty Containers Non stock Item Raw Material Packaging Competitor Product Production Resources/ Tools

Master Data Views

s s

Master data is a key piece of information in the system Master data can be seen from a number of views Each view can correspond to an SAP module Each view has a number of information screens Each view belongs to an org unit within the business One product may have multiple plant and sales views, one for each plant or sales area

Finance Engineering Design Sales

ProductPurchasing Data
Production Stock

Examples of How Data is Used

Controls which General Ledger Account is updated
Finance Engineeri ng Design

Material description used in reporting Texts copied to purchase orders

Controls customer ordering rules for material

Sales

Product Purchasing Data

Production Stock

Data used to calculate MRP lead times

Maintains stock levels by plant, storage location, and batch

Bills of Material
Simple BOM Variant BOM Multiple BOM

Simple BOM representing single material

Similar materials represented by variants on one BOM

BOM representing a material which can be made up of multiple compositions e.g. different components and quantities

Bill of Material Validity

Area of Validity The same Bill of Material can be allocated to several plants. Before you can allocate the BOM to a different plant, the material must exist at the new plant, the unit of issue on the BOM item must be the same. Validity Period (Valid from/to dates) Becomes effective with the valid from date The validity date is determined by the system automatically to be either the next effective from date, or 12/31/1999. A A

B C B D X----------------------------------------------------------->>>> from 1/1/95 from 12/31/95 to 12/30/95 to 12/31/99

BOM Structure
BOM Header
Plant Assignment Validity Period Release Indicator

Item 10 Item 20 Item 30

Stock Items Non-stock Items Variable Size Items Document Items Text Items

Sub Item 10 Sub Item 20

Additional component details e.g. installation points for components

Bill of Material Glossary

BOM Category categorizes BOMs to represent different objects; for example: Material BOM -- structure of products manufactured Equipment BOM -- structure of equipment for plant maintenance Document BOM -- structure of documents such as drawings (3.0) BOM Group is a collective number for all BOMs in a group which allows for one or several similar products to be described under one number. All Alternatives of a multiple Bill of Material All variants of a variant Bill of Material BOM Usage special view of the BOM which represents a specific area of the company in which the BOM is used; for example, Engineering, Production, Costing, Sales, Plant Maintenance The BOM Usage allows different views to exist without

Bill of Material Glossary (cont.)Type the system distinguishes BOMs according to whether they Technical
represent product variants or production alternatives. If you create a variant for the BOM,the system marks it as a Variant Bill . If there is more than one alternative for a material, the system marks the BOM as a Multiple Bill. BOM Validity Bills of Material are valid over an area and effectivity period. Area of Validity -- identifies which plants the BOM has been allocated to Validity Period -- identifies the from and to effectivity dates. The default to date is 12/31/9999

Bill of Material Glossary (cont.)

Item Category When you enter a new Bill of Material item, an item category must be assigned. It has important control functions such as: Screen selection Specific processing, such as material number required, negative values supported. The Item Category cannot be changed once set. It must be deleted and re-added. Sizes are maintained for variable-size items Item categories include: Stock Items -- material in stock as a component Non-stock Items -- material not stocked - with or without a material number Variable-size -- system calculates the quantity required using formulas PM Structure Item -- used with plant maintenance equipment Document Item -- used with Document BOMs Sub-Items are typically used to represent different installation points for partial quantities of an item.
In assembling resistors on a printed circuit board, the installation points are

described. There is no logic related to sub-items

Work Centers
Machines
Cost Center

Capacity Requirements Planning

Assembly Line

Work Centers

People

Costing

Production Line

Scheduling, Execution Time

Work Centers and Routings

Routing
Operation 10

Work Center W1
Assembly

Cost Center 100

Work Center W1
Assembly

Operation 20

Cost Center 100

Work Center W2
Finishing

Operation 30

Cost Centre 200 Center

Work Center Category

Work centers are allocated to different work center categories The work center category is used to control the field and screen selection for work centers during work center maintenance. Work Center Category Statistical Work center Production Work Center Screen View Basic Data Basic Data Default Values Capacity Values Scheduling Cost Center Assignment

Cost Center Assignment to Work Center for Operation Costing

Cost Center Activity Rates
Set Up (SET) Machine (MACH) Labor (LAB) Set Up $70.00 Mach $60.00 Labor $80.00 Overhead $70.00

Work Center with Activities during production

Routing with standard values

Oper 0010 Oper 0020 Oper 0030 Oper 0040

Use of Formulas in Work Centers

Work Center Schedule Work Center Capacity

Work Center Formulas

Set up Formula Machine Time Formula Teardown Formula

Operation Std Values

Set up 1.0 hrs Machine 5.5 hrs

Routing with standard values

Oper 0010 Oper 0020 Oper 0030

Teardown .5 hrs Oper 0040

Available Capacity at a Work Center

1 hr Break Time 1 hr 8 hrs 7 hrs 6 hrs Planned Downtime

Working Hours

Working Hours less Breaks

Productive Working Hours

Routing Structure Views

Routing

Operation 10Operation 20 Operation 30

Process Resource Tool (PRT)

Materials Components BOM

Work Centre: PP-ASSEM

Control Key: Operation Text: Std Values: - Time Tkts Pre-assemble Lab:10 mins - Costing frame Mach:10 mins

Production Master Data

Material Type

BOM BOM Groups Groups

Item Category

Materials Materials and PRTs and PRTs

Routing Routing Groups Groups

Cost Cost Centers Centers

W/C Category

Bills of Bills of Material Material

Components Allocated to Operations

Routings Routings

Work Work Centers Centers

Operation
Operation types
(Main) operation Sub-operation
Sub-operation HierarchyCosting Completion confirmations Scheduling always takes place on the (main) operation level

The control key defines whether completion confirmations and costing are carried out on the (main) operation level, or on the sub-operation level. Indicator: group operation combined operation sub-operation level (main) operation

Operation / Sub-operation
Schedule at Operation Level

Operation Operation 0010 0010

Capacity Planning & Costing possible at Sub Operation Level Level Sub Operation Sub Operation 0010 / /10 0010 10 at Work Center A1 at Work Center A1 Sub Operation Sub Operation 0010 / /20 0010 20 at Work Center A2 at Work Center A2 Sub Operation Sub Operation 0010 / /30 0010 30 at Work Center A3 at Work Center A3

Operation Operation 0020 0020

Useful when processing for operation 0010 occurs over multiple work centers

Material Allocation
Product
BOM Routing

Op. 10 Op. 20 Op. 30

Op. 10 Op. 30

Material-Routing Allocations
Material 1 1 2 2 01 02 01 02

Routing Group
1 1 1 2 3

Routing Group Counter

1 2 3 1 1

s s

A routing alterative can be allocated to several materials. A material in a plant can be allocated to several alternatives.

Routing Default Values

Material Material Master Master Routing Routing Work Work Center Center

Base Unit of Measure Planner Group Short Text

Control Key Standard Values Activities Standards Text Key HR data

Oper 0010 Oper 0010 Oper 0020 Oper 0020

External Processing
Purch Reqn Routing data copied to order Purch Reqn including quantities and dates Purch Ord Purchasing creates P.O. Purch Ord Vendor Proc Vendor Proc Goods Rec At goods receipt, the operation Goods Rec is confirmed

Oper 0040 Oper 0040 Oper 0050 Oper 0050

Operation Lead Time

Float Before Oper 0010 Oper 0020 Oper 0030 Float After

Operation Lead Time Queue | Setup | Process | Teardown | Wait | Move Interoperation Time Execution Time Interoperation Time

Routing Operation Sequences

Standard
Routing represents a standard sequence defining production procedure Routing includes processes which can be performed simultaneously to achieve time efficiencies

Parallel

Split

Routing includes processes which can/must be split across a number of work centers

Overlapped

Routing defines process where one operation is to overlap with the following operation

The Planning SOP Concept in SAPMPS

Sales Plan Planned Independent Requiremen ts Offset Customer Independent Requirements

MRP
Demand ie Requirements

Requirements (Orders) from SD Module Keep Balanced Planned Orders Production Orders Purchase Requisitions

Production Plan Order Proposals

Order proposals, planned orders etc are created and adjusted by running the MRP or MPS programs.

Sales and Operations Planning Functions

SOP specifies sales quantities for the long and intermediate term to roughly assess the feasibility of sales and operation plans Sales and Operations Planning at the Product Group or F/G level Materials may be planned together in Product Groups Sales quantities are determined for future periods Production quantities are then determined on the basis of sales

Sales and Operations Planning Planning Levels

MRP II is concerned with integrating individual plans within a supply chain Profitability Analysis Revenue and Sales Plans Sales and Operations Planning Sales and Production Plans Master Planning Demand Program and Master Schedule Material Requirements Planning Dependent Requirements and Procurement Plan

Sales and Operations Planning Steps

Step 1 Sales Planning of Future Sales Quantities Copy in from Sales Information System or Profitability Analysis Automatic forecast based on historical factors Manual entry of sales quantities

Step 2 Production Planning Synchronize production plan with sales plan Stock level equal to zero Specify a target days supply by period Specify a target stock level by period Enter planning data manually

Sales and Operations Planning Steps

Step 3 Disaggregation of Planning Values Determine the sales and production quantities of product group members Modify the disaggregated sales planning data and create a production plan for each member

Step 4 Transfer of Planning Values to MRP Pass the planned sales and production quantities as independent requirements to demand management If product group data is transferred, the system automatically disaggregates the planning data to the finished product level

Sales and Operations Planning Product Groups

A Product Group brings together materials according to some criteria such as similar type or manufacturing process. Link material master data with product groups Materials and product groups can be members of more than one group for different planning scenarios Assignment of members from different plants to the same product group for cross-plant planning A product group may have a different unit of measure from its members e.g. aggregate in cartons vs pieces Proportional factors for disaggregation - how the product group quantitiy is distributed to its members Supports production versions for a material or group Supports multi-level product group hierarchy Graphical support of one or more levels

Sales and Operations Planning The Planning Table

Sales and Production Planning is carried out using a Planning Table which shows the stock level that results from the sales and operations planning for both materials and product groups

The Planning Table is divided into: Sales Quantities Production Quantities Target Days Supply and Target Stock Levels

Sales and Operations Planning Creating a Sales Plan

Manual Data Entry and Distribution Functions Entered directly into the Planning Table as a % or qty

Copying Data from Sales Information System Planned order, invoiced or delivery quantities The planning data is aggregated across all materials in the group

Copying from Profitability Analysis Quantity and performance measures

Copying the Forecast Aggregates the consumption values for all the materials in the product group

Sales and Operations Planning Creating a Production Plan

Determine the quantities to produce to meet the sales plan Synchronize to the Sales Plan the system copies the sales quantities into the production quantities

Zero Stock Level Use existing stock to cover sales quantities. When used up, production quantities will synchronize with the sales quantities

Target Stock Level The system determines production quantities based on sales and target stock levels

Target Days Supply Coverage is expressed in days

Sales and Operations Planning Disaggregation

Functionality is based on proportionality factors of product group members The result of disaggregation is the sales plan of its members Strategy parameters are used to create the production plan from the sales plan on to a product group member Disaggregation can be carried out for the product group or for selected members only

Sales and Operations Planning Transferring Data to Demand Management

Transfer a single-level product group (multiple) or individual material (single) Independent Requirements Parameters Specify Requirements Type Version Number Limit scope of the time period

Master Planning

Demand Management Planning and Consumption Strategies Specification of Requirement Quantities and Delivery Dates

Master Production Scheduling Planning for Master Schedule Items Planning Time Fence Interactive MPS

Sales and Operations Planning

Copy from Sales Plan Copy from Prodn Plan Copy from Forecast Copy from Orig Plan

Manual Planned Independent Requirements

Demand Management Demand Program

Sales Demand from Sales Orders

MRP/MPS

Planning Strategy Make-to Stock

Make product for stock in expectation of customer sales Plan using planned independent requirements for anonymous make-to-stock production. Use Net or Gross Requirements Planning Net Requirements -- includes warehouse stock, planned issues and receipts Gross Requirements -- excludes warehouse stock. Just includes planned and open orders

Example is a shelf stock item such as a bike accessory light Planning Requirement Type is LSF - make to stock which is used in the planned independent requirements transaction

Sales Order Requirement is KSL - which is sale from stock

Strategy: Make-To-Stock Production

Example: Common shelf items such as a bike accessory (light)
Sale from stock
Warehouse Stock Finished Product

Planning

Production Push

Planning Strategy Planning with Final Assembly

Make product in expectation of customer sales Plan using planned independent requirements at finished goods level to drive demand to long lead time components Typically there is a longer lead time to produce than the customer is willing to wait for Sales orders consume the planned independent requirement quantities Planned quantities that are not consumed by sales orders result in excess stock Example is a long lead time custom product Planning Requirement Type is VSF planning with final assembly Sales Order Requirement is KSV which is sales order with consumption

Strategy: Planning with Final Assembly

Example: Custom furniture such as a cherry table

Final Assembly to Sales Order

Sales Order Warehouse Stock

Finished Product

Planning Planned Independent Requirements

Purchase

Produce

MRP without reference to sales order

Production Push

Planning Strategy Planning Without Final Assembly

Final assembly is initiated by the customer sales order Stop production at sub-assembly level Final assembly pull Example is automobile assembled with unique combination of features (subassemblies)

Planning Requirement Type is VSE -- planning without final assembly Sales Order Requirement is KEV -- independent customer order with consumption

Strategy: Planning Without Final Assembly

Example: Option oriented product such as a car
Planning Sales Order Assembly when Sales Order Scheduled
Warehouse Stock Finished Product

Planned Independent Requirements

Purchase

Produce
Warehouse Stock Assembly 02

Warehouse Stock Assembly 01

Stop at leve Production Push

Final Assembly Pull

Planning Strategy Planning with Planning Material

Planned independent requirements of Planning Material initiate procurement of the planning bill components Sales orders for the final assembly create planned orders of the finished product and reduce planning quantities for the planning material Possible to plan a family of products from forecast placed on the planning bill. The planning bill details, through percentages, the quantity required for common parts Example is a bike with common sub-assemblies used in many finished items Planning Requirement Type is VSEF -- planning with planning material Sales Order Requirement is KEVV -- independent customer order with planning material

Strategy: Planning with Planning Material

Example: Bikes with the same features except for the color
Planning

Sales Order

Customer Stock Finished Product

Planning Material

Purchase

Produce

Planned Independent Requirements Note: Percentages drive lower level demands for sub assemblies

Warehouse Stock Assembly 01

Warehouse Stock Assembly 02

Final Assembly Pull

Production Push

Strategy: Production by Lot Size

Example: Combine customer orders for the same item

Sales Order

Warehouse Stock Finished Product

Production by Lot Size Pull

Planning Strategy Make to Order Production

Sales orders are planned according to sales order number Produced quantities for each sales order are managed individually Production and procurement costs are managed in either a settlement order or a project

Example is a custom product with a unique structure such that it only applies to a particular customers order

Sales Requirement Type is KE -- independent customer order without consumption

Strategy: Make-To-Order Production

Example: New machinery
Sales Order
Warehouse Stock Finished Product

Production by Lot Size Pull

MRP Features
Net requirements calculation Lot sizing

MRP
Forecasting

Internal production and external purchasing

Order scheduling and generation

Bill of Material Explosion

MRP Overview

Overview Purchased Items

MRP

Purchasing

Master data Material Batches Vendors Customers :

Goods receipt Warehouse manageme nt system Inventory management Valuation Goods Transfer issue posting

Invoice receipt Invoice verification

Accounting

MRP: Reorder Point Planning

Stock

Reorder Point

Safety Stock

Time Order Date Delivery Date

Forward Scheduling for External Procurement

Forward scheduling used for reorder point material

Release Order Date

Desired Delivery Date

Purchasing Process Time

Vendor Planned Delivery Time

Goods Receipt Process Time

Today

Net Change Daily Accumulation: Planning

Planned Individual Requirements Sales Orders Entries from Planning File Coverage calculation per requirement date Warehouse Stock Open Order Proposals

+
Order Proposal Shortages

Reservations

MRP Prerequisites
PLANT LEVEL MATERIAL LEVEL
s s s s

Activated for MRP Valid MRP Type Valid Material Status Material MRP Views Maintained w MRP Controller w Planned Lead Time w MRP Group w Lot Size Data

Material Master MRP I Key Fields

Basic, General, and Lot Size Data
s

Procurement Type indicates if the material is externally procured, or produced internally or both. Special Procurement identifies special planning rules which may be used for inhouse production or external procurement MRP Type determines how the material is planned such as MRP, MPS, or consumption based planning Material Lead Time identifies for material planning the planned delivery days or in-house production days Lot Size determines which lot-sizing procedure the system uses to calculate order quantities

Material Master MRP 1Key Fields

Scheduling Parameters Planning Time Fence: defines a period during which MRP/MPS will not automatically add or reschedule orders Scheduling Margin: controls the release period, opening period for a material and scheduling floats for production Release period is the number of working days in the release period Opening period is the number of working days between the order creation and planned start date Order floats allows for safety margin before and after production Planned Delivery: lead-time for purchased material In-house Production: lead-time for manufactured material GR Processing Time: goods receipt processing time Example: dock-to-stock time

Material Master MRP 2 Key Fields

Availability Check indicates whether the system generates individual or summarized requirements for sales orders for this material and for planning, which MRP items the system includes in the availability check. Mat./PPC Status is used to limit the usability of materials for certain activities such as, purchasing, bills of material

Material Master MRP 3 Key Fields

Independent Requirements Consumption Mode: controls consumption of planned independent requirements by customer requirements Selections: backward, forward, or both Consumption Periods Backward/Forward: specifies the number of periods of forward or backward consumption Used in conjunction with consumption mode Storage Location MRP MRP Indicator: determines whether or not requirements, for a specific storage location, are planned separately from the overall plan Reorder Level: used for storage location MRP Replenishment Quantity: used for storage location MRP

VB

MRP Types

Manual Reorder Point Planning: MRP produces order proposals when stock falls below a reorder point. The reorder point and safety stock levels are entered manually Automatic Reorder Point Planning: The reorder point and safety stock level are calculated based on the forecast results Forecast Planning The latest forecast is copied as requirements which are used to create order proposals Deterministic Planning MRP produces order proposal(s) to match the exact quantity of the requirements based on independent and dependent demands

VM VV PD

M0

Lot Sizing
Static
Lot for Lot Fixed Lot size Replenish up to maximum stock level

Periodic
Daily Lot size Weekly Lot size Monthly Lot size Flexible period Lot size according to planning calen.

Optimum (Cost )
Part period balancing Least unit cost procedure Dynamic Lot size creation Groff reorder procedure

MRP: Static Lot Sizing

Lot for Lot Order Quantity: Shortage Quantity =
Ordered Quantity

Fixed Lot Size:

If Material Fixed Order Quantity Shortage = Quantity

Order = Fixed Order Quantity

Shortage Quantity > I fFixed Order Quantity

Order Order Order

Replenishment up to Maximum Stock Level:

Order Quantity Stock required to achieve maximum stock level set in = the material master

Carrying Out the Planning Run

Total Planning All materials in a given plant
s s

All materials are reviewed by MRP regardless of activity Only the materials in a plant that have undergone a change relevant to planning since the last planning run (net change planning)

Planning Interval Limiting the MRP Planning Interval

example: 100 days Planned requirements and supply order receipts MRP Planning Horizon Tim e

Planning Run Options for Automatic Creation of Requisitions and Delivery Schedules
MRP Control Parameter: determine whether or not MRP will automatically create requisitions or delivery schedules Options are: Do not automatically create. Only create planned order Automatically create within the opening period Automatically create for the entire planning horizon Opening Period Parameter: allows the user to take advantage of MRPs automatic creation features while retaining control over the number of open purchasing documents

MRP List
Group of Materials for which controller is responsible Controllers MRP Listing
MRP Order Proposals and Planner Messages from MRP Planning run. Planner can drill down to review material movement activity

MRP Controller

Goods Issues

Goods Receipt

Stock Requirements List

Supply/Demand Ref EM Quantity

MRP Element

Ava

STOCK 100 ORDER Sales Order 25 75 PL ORD 1000 120 05 100 175 ------------------------------------------------> Planning Time Fence

ements List brings together all the supply orders, independent nt demands and stock balances for the material. MRP makes als to balance the supply/demand position for the material

MRP List vs Stock Requirements List

MRP Planning Result Last planning run results

MRP MRP Planning Planning Process Process

Current Stock, Rqmts, Balances, planned Receipts, Issues Stock Requirements List uses current data

The MRP List displays the result of the last planning run The Stock Requirements List displays the most up-to-date stock and requirements situation

Backward Scheduling for External Procurement

s s

MRP determines the basic scheduling dates using backward scheduling If the release date lies in the past, the system automatically switches to forward scheduling
Calculated Order Release Date Desired Delivery Date

MRP Planning Purchasing Date -- today Process Time

Vendor Planned Delivery Time

Future Requirement Goods Receipt Date

Process Time

MRP Planning Lead Time

Backward Scheduling for In-house Production

s s

MRP determines the basic scheduling dates using backward scheduling If the release date lies in the past, the system automatically swithches to forward scheduling Order Release Date Orde r Start Date
In-house Production Time

Order Finis h Date

Goods Receipt Process Time

Order Release Process Time

MRP Planning Date -- today

MRP Planning Lead Time

Future Requiremen t Date

Multi-Level Planning Structure

Independent Requirements Customer Requirements

E1
Planned Orders

= Demand = Supply

Level 0

Dependent Requirements

B1
Planned Orders
Dependent Requirements

B2
Planned Orders
Dependent Requirements

Level 1

R1
Planned Orders

R2
Planned Orders

Level 2

R 3 Planned Orders

Order Proposals: Planned Orders

Production Order

Procurement Type is In-house Production

Planned Order Planned Order

MRP

Order Qty Order Qty Order Date Order Date Capacity Reqts. Capacity Reqts. Resource Reqts. Resource Reqts.

MRP Controller

Planning for In-house Production

Planning Run MRP Controller
Manual Creation Auto Creation Manual changes/ deletion
Planned Planned Order Order

Auto Change/ Delete if situation changes

Collective Conversion into Production Order Individual Conversion into Production Order

Production Order

Production Order Release

The Production Cycle

Select Routing Select BOM Schedule Times & Dates Relea se Order Create Order
Production Order

Confirmation Slip

Print Shop Floor Papers Check Availability Actual Labor Issue Materials to Order Confirm Completi on Calculate Actual Costs Receive complete goods into stock
Goods Receipt

Calculate Capacity

Calculate Planned Costs

Create Required Purchases

Purchase Requisitions

Goods Issue

OAK BROOK TECHNOLOGIES

Production Order Creation

Manual Order Creation Order Proposal MRP Conversion

Determine Order Type

Routing Selection

s s

Alternate Sequence Assignments One operation is required Enter start or finish date depending on scheduling direction
s s s

Changes are allowed before order release

Lead Time Scheduling
s

Bill of Material Selection

Component Overrides Material Reservations Item Categories

Production Order Release

s Production Order Order release is carried out manually Ready for Release

Material Availability s Uses checking rules defined in configuration Check

Order or Operation Release

Shop Paper s On-line or in background Printing Possible Pick List, Confirmation Slips,... s

Material Withdrawals Possible

Material Availability Check

Stock on Hand Net Available 150 150 Units 100

Reserva tion for 50 Units 100

Planned Order for 200 Units

Depende nt Requirem ent for 300 200 Units

Requirem ent for 50 Units are

Goods Movement for a Production Order

Reservation Planned Goods Issue

Material 1
Unplanned Goods Issue

Production

Material 2 Consumption of Material 1 and 2 Goods receipt of Material 3

Goods Issue

Goods issues only apply to stock items

Goods Issue Results

Update Reservations Material Usage Statistics

Goods Issue Posting

G/L Account Update Accounting Material Document Cost Object Allocation

Completion Confirmations
Production Order Production Order Operations Operations 0010 - -Assemble Board 0010 Assemble Board 0020 - -Assemble Case 0020 Assemble Case 0030 - -Assemble unit 0030 Assemble unit 0040 - -Final Test 0040 Final Test C
Confirm Confirm Operation 0010 Operation 0010 Activities Activities Confirm Confirm Operation 0020 Operation 0020 Activities Activities

Milesto ne Confirm Confirm

Operation 0030 Operation 0030 Activities Activities

s s s s s

Partial or Final Confirmation Single or Collective Confirmation Milestone Confirmation Reduction of Capacity Requirements Determination of Actual Costs

Confirm Confirm Operation 0040 Operation 0040 Activities Activities

Confirmation Data
Quantity
s s s

Yield Scrap Quantity Scrap Reason

Dates

s s

Start date Finish date Work Center Personnel Number Qualification Wage Group Wage Type

Labor

s s s s s