SAP PP MRP Process flow

MRP Process flow

• With MRP, inventory can be optimized via planning receipts according to the needs so that surplus inventory could be avoided.
• Sales and distribution give concrete customer requirements from the market.
• In Demand Management, sales are planned in advance via a sales forecast. The sales forecast is entered in demand management in the form of Planned Independent Requirement (PIR), i.e., the requirement for the finished product.
• In order to cover these requirements, MRP does net requirement calculation and plans procurement quantities and dates on which the material needs to be procured or produced.
• If a material is produced in-house, the system explodes the BOM and calculates the dependent requirements, that is, the quantity of components required to produce the finished product.
• If a material shortage exists, planned orders are created at every BOM level to fulfill the requirements and purchase requisitions are generated for externally procured raw materials. You can also create planned orders for externally procured materials which can be converted to purchase requisition.
• MRP does lead time scheduling and calculates planned order dates based on routing times. Basically, it does backward scheduling starting from requirement date minus (GR processing times, in-house production time, float time before production ) and calculates the duration of planned orders.
• Production orders or Purchase orders are created after conversion of planned orders and purchase requisition respectively.
• MRP type "PD" in material master MRP 1 view is essential to run the MRP for the materials. If, you don't want to run MRP on the material then MRP type "ND" can be maintained in the material master.

MRP Planning Parameters

MRP parameters are required for MRP run in terms of considering the requirements (PIR) in planning horizon, scheduling parameters and about the usage of BOM and routing data.

Processing Key

• Net change (NETCH): In this run, the system considers those materials in the planning run from their last MRP run which have undergone some changes pertaining to receipts and issues or any stock changes.
• Net Change in Planning Horizon (NETPL): In this run, the system considers those materials in the planning run from their last MRP run which have undergone some changes pertaining to receipts and issues or any stock changes. It considers the requirements in a pre-defined planning horizon, unlike NETCH key which considers the total futuristic requirements.
• Regenerative Planning (NEUPL): It plans all the materials for the MRP Run irrespective of the changes they undergo. This plan is not so widely used. It takes a long time to obtain the final result.

Planning Mode

• Adapt planning data: It only processes the changed data.
• Re explodes BOM and Routing: Read BOM and routing data again for the existing orders.
• Delete and recreate planning data: It completely deletes the planning data (all receipts) and creates again.

Scheduling

• Basic Scheduling: MRP calculates only basic dates for the orders and in house production time for the material master is used.
• Lead Time Scheduling: The production dates are determined by the lead time scheduling for planned orders. The routings are read to schedule and calculate the capacity requirements on work centers.

For SAP ERP Training or SAP MRP Process flow Module Training please visit the links.

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SAP PP Master Data

SAP PP Master Data

Master data contains the main detailed objects in SAP Production Planning module. In SAP PP, main objects are Bill of Materials, material master, routing, and work center. Master data contains the key properties of these objects such as production order, material type, planning requirements, goods issue, and goods receipt.

Material master

The material master contains information on all the materials that a company procures or produces, stores, and sells. It is the company’s essential source for retrieving material-specific data. This information is stored in individual material master records. There are different views for user departments i.e. Purchasing, Sales, Quality Management, Accounting, costing, MRP, forecasting etc. Major settings related to production planning are available in MRP and Work scheduling views of material master. Individual department’s users are responsible for material master maintenance activity as per requirements.

Routing

Sequence of operations (i.e. Work Steps) needed to make up product or assembly. A routing is used as a source for creating a production order or a run schedule header by copying. It describes production process. Routing also contained information like place of work to be performed, time required to carry out work, material or component requirement along with equipment need if any.

Bill of Material

A list of components that make up product or assembly along with quantity and unit of measures. BOM is basis for number of activities in many areas like CAD Department, MRP Department, Work Scheduling Department and production order management department, Sales Order activities and in product costing department.

Work Centers

is a place where work (operations) is carried out. A work center is created for a plant and is assigned to operations in routing. Data in work centers is used for scheduling, Costing, Capacity Planning etc. Work centers are capacity collectors for internal and external processing.

Production Resource Tools

Production Resource/Tool (PRT) is a movable operating resource used in production planning to perform an activity repeatedly. Examples of PRTs are Drawings, jigs and fixtures and measuring instruments.

For SAP ERP Training or SAP PP Master Data Module Training please visit the links. 

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SAP PP Course Outline

SAP PP Course Outline 

Introduction

SAP PP module is another important module that includes software designed specifically for production planning and management. This module also consists of master data, system configuration and transactions in order to accomplish plan procedure for production. SAP PP module collaborate with master data, sales and operations planning, distribution resource planning, material requirements planning, Kanban, product cost planning and so on while working towards production management in enterprises.

Content

PP- Master Data Set Up

• BOM
• Work Center
• Routing
• SAP Tables

MRP

• MRP Views
• Lot Sizing Procedures
• Procurement Proposals
• Evaluation of MRP Results
• Tables in MRP

Discrete Manufacturing

• Planned Orders
• Production orders
• Order Types
• Scheduling
• Goods Issue
• Goods Receipts
• Status Profile

Repetitive Manufacturing

• Production Versions
• Planning Table
• Back flushing

Sales and Operational Planning

• Sales Forecast
• Production Plan
• Demand Management

Planning Strategies

• Planning with final assembly
• Planning without final assembly
• Planning at assembly level
• Net Requirements planning
• Gross requirements planning
• Make to order strategy

KANBAN

• Supply Area
• Kanban Board
• Supply Source
• Demand Source

Functional SPEC

• How to create a functional spec with real time examples
• Extracting data from Tables

Overview of PP Configuration


For SAP ERP Training or SAP PP Module Training  please visit the links.

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SAP Production Planning (PP)

SAP Production Planning (PP)

SAP PP module is another important module that includes software designed specifically for production planning and management. This module also consists of master data, system configuration and transactions in order to accomplish plan procedure for production. SAP PPmodule collaborate with master data, sales and operations planning, distribution resource planning, material requirements planning, Kanban, product cost planning and so on while working towards production management in enterprises.

SAP PP - Organization Structure

In SAPPP module, the organization structure defines the location of manufacturing plants and storage locations within the plant. At the top of the structure, you have the company and the company code and then each company code contains different plant and storag locations.

Following diagram represents a common organization structure in live SAP ProductionPlanning environment.

SAP PP - Integration with Other Modules

All the details of manufacturing process can be record and track e.g. planed costs, actual costs and material flows. Production planning module is fully integrated with other sap modules such as sales and distribution, material management, FICO (financial accounting and controlling), plant maintenance and logistics execution (le). 

SAP PP and SAP MM

·        This involves movement of goods, auto goods receipt.

·        It includes creating a reservation for Production Order/Planning.

·        Raising purchase orders with MRP Run.

·        Quotations and Vendor selection.

SAP PP and SAP SD

·        This is used to check the availability of material for production order.

·        To perform MRP Run, Requirement Types.

·        Bill of Material components and operation.

SAP PP and SAP FICO

·        Updating price in material master data.

·        Defining activity type in the cost center.

·        Assigning activity type to work center.

·        Cost Estimation.

·        Production cost controlling

·        Posting accounting activities related to goods movement, material request, etc.

SAP PP and Project System

·        Assigning planning activities to WBS in the Project.

·        Running Material requirement planning at Project level (MD51). The procured material attached to WBS are reserved as project stock against the particular project.

·        The component attached to the network are planned at the plant level and are reserved as plant stock.

Sub modules of production planning are as follows

·         SOP (Sales Operation Planning)

·         LTP (Long Term Planning)

·         DM (Data Management)

·         MPS/ MRP (Master Production Schedule/Material Requirement Planning)

·         CRP (Capacity Requirement Planning)

·         Shop Floor Control

        Information systems 

   Production Planning Basic data

Integration Model

Bill of Materials

Bill of materials master data is related to material requirement planning and provides the list of components to produce the product.

To produce a product with different variants, you can create super Bills of Material that has a list of components to manufacture different variants of a product. Selection of component depends on the details mentioned in the planning order. You can create up to 99 Bills of Material.

Bill of Materials

Bill of Materials master data is related to material requirement planning and provides the list of components to produce the product.

To produce a product with different variants, you can create super Bill of Materials that has a list of components to manufacture different variants of a product. The selection of component depends on the details mentioned in the planning order.

Work Centre and Routing

Work centre consists of master data related to routing of products. It contains data related to scheduling, capacity planning, and production costing. All the manufacturing activities are performed in the work centre.

Routine defines the list of activities to be performed for the production process. Routing defines a sequence of activities performed at the work center. Routing plays in important role in calculating production cost, machine time and labor time.

For more details about sap erp training and sap PP  training please visit : www.asipt.net/sap-erp-training

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