Sap Scm240 Pp

SCM240Production Planning (ERP)

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Participant HandbookCourse Version: 81Course Duration: 5 Day(s)Material Number: 50086866

An SAP course - use it to learn, reference it for work

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About This HandbookThis handbook is intended to complement the instructor-led presentation of thiscourse, and serve as a source of reference. It is not suitable for self-study.

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2007 © 2008 SAP AG. All rights reserved. iii

About This Handbook SCM240

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iv © 2008 SAP AG. All rights reserved. 2007

ContentsCourse Overview ...... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii

Course Goals.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .viiCourse Objectives .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .vii

Unit 1: Overview of Production Planning in SAP ERP...... . . . . . . . . . . . . . . . . . . . . . . . . . . .1Overview of Supply Chain Planning... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2

Unit 2: Demand management..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21Overview of Demand Management ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23Planning Make-to-Stock Production... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28Planning Make-to-Order Production... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66Enhancements for Demand Management.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87Basics of the Availability Check.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .103

Unit 3: Executing Material Requirements Planning .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . .121Overview and Concept of MRP ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .123Prerequisites for MRP... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .127Setting and Executing the MRP Run.... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .132Firming ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .170

Unit 4: Technical Processes of Requirements Planning ..... . . . . . . . . . . . . . . . . . . . . . .191Net Requirements Calculation ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .193Lot-Size Calculation .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .216Procurement Types... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .234Scheduling.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .245BOM and Routing Selection.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .267

Unit 5: Evaluating and Processing the MRP Results ..... . . . . . . . . . . . . . . . . . . . . . . . . . .287MRP List and Stock/Requirements List. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .289Planning Table .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .313Exception Messages ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .318Additional Evaluation Aids ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .323

Unit 6: Additional MRP processes...... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .345Master Production Scheduling ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .347

2007 © 2008 SAP AG. All rights reserved. v

Contents SCM240

Long-Term Planning ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .358Multi-Site Planning... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .389MRP Areas ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .404

Appendix 1: .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .435

vi © 2008 SAP AG. All rights reserved. 2007

Course OverviewThis course teaches you how to use the production planning functions in ERP (SAPECC).

Target AudienceThis course is intended for the following audiences:

� This course is aimed at project team members and key users responsible for theimplementation of production planning with SAP ERP using SAP ECC.

Course PrerequisitesRequired Knowledge

� PLM110 � Basic Data Part 1� SCM100 � Planning Overview (ERP)

Recommended Knowledge

� SAPSCM - SAP SCM overview

Course GoalsThis course will prepare you to:

� Explain the various functions and uses of consumption-based planning andmaterial requirements planning

� Explain the processes and implementation options of important planningstrategies for non-configurable products

� Make the most important Customizing settings for material requirementsplanning and evaluate the planning results

� Introduce and classify further aspects of requirements planning

Course ObjectivesAfter completing this course, you will be able to:

� Explain the differences between consumption-based planning and materialrequirements planning

2007 © 2008 SAP AG. All rights reserved. vii

Course Overview SCM240

� Set up and use important planning strategies and Customizing fornon-configurable products

� Execute material requirements planning and evaluate the results� Configure the technical processes and related Customizing� Use the additional functions of material requirements planning

SAP Software Component InformationThe information in this course pertains to the following SAP Software Componentsand releases:

viii © 2008 SAP AG. All rights reserved. 2007

Unit 1Overview of Production Planning in

SAP ERP

Unit OverviewPlace the course in context in terms of both content and organizational aspects. It isimportant to show where the course belongs in the SCM curriculum. The courseoperates exclusively within SAP ECC as far as content, demonstrations, and exercisesare concerned, dealing with the production planning process in the system. The coursebuilds on the basics covered in SCM100.

As an introduction, put the production planning process into context: Talk about theentire planning chain from (optional) sales and operations planning to shop floorcontrol. Do not go into detail about the functions. Instead, show how the contents ofthe course relate to the neighboring business processes.

Unit ObjectivesAfter completing this unit, you will be able to:

� Place the course content in the overall context� Outline the business scenario used� Give an overview of Supply Chain Planning in ECC

Unit ContentsLesson: Overview of Supply Chain Planning.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2

Exercise 1: Production Planning Process with ECC... . . . . . . . . . . . . . . . . . . . . . . .9

2007 © 2008 SAP AG. All rights reserved. 1

Unit 1: Overview of Production Planning in SAP ERP SCM240

Lesson: Overview of Supply Chain Planning

Lesson OverviewWelcome the participants and introduce the course content and objectives. Familiarizethe participants with the course schedule. Get the participants to introduce themselves.

Lesson ObjectivesAfter completing this lesson, you will be able to:

� Place the course content in the overall context� Outline the business scenario used� Give an overview of Supply Chain Planning in ECC

Business ExampleYour company is implementing production planning and detailed scheduling usingECC MRP.

You use the example of the Precision Pump Company to familiarize yourself with thefunctions of MRP. The Precision Pump Company offers various standard pumps.

After you have entered future requirement quantities in demand management, youplan production in the production plant. Externally procured or low value materialsshould, if necessary, be planned using consumption-based planning.


SCM240 Lesson: Overview of Supply Chain Planning

Figure 1: Possible SAP Components of Supply Chain Planning

SC planning primarily uses the following SAP components: SAP ECC (ERP CentralComponent), SAP SCM (including APO, Advanced Planning and Optimization),and SAP BW (Business Information Warehouse). The SAP SCM system containsmany components that constituted separate systems in earlier releases. As well asAPO, SCM 4.1 also includes Supply Chain Event Management (EM) and InventoryCollaboration Hub (ICH).

The interfaces responsible for integrating ECC with BW or SCM APO are madeavailable using a corresponding Plug-In. The interface between ECC and SCM APOis called the Core Interface (CIF).



Figure 2: Supply Chain Planning in ECC

Supply Chain Planning in SAP ECC can be divided into several steps: Planningtakes place in demand management. Consumption of the forecast with sales ordersis possible. Long-term planning is simulative planning. You can use it to analyze ademand program to see how feasible it is, for example. Master production schedulingis requirements planning for master schedule items. Non-master schedule items areplanned in material requirements planning.



Figure 3: Production Planning and Control

Figure 4: Demand Management

Demand Management is the management of independent requirements. The behaviorof independent requirements in material requirements planning (for example, whetherthey are effective, or whether they consume other requirements) is determined by theirrequirements type or by the planning strategy.



Planned independent requirements are stock requirements that can be derived from aforecast of future demand. In make-to-stock production, you want to start procurementof the affected materials without waiting for specific sales orders. On the one hand,this kind of procedure allows you to reduce delivery times, while on the other hand,you can use forecast planning to spread the burden as evenly as possible across yourproduction resources.

Sales orders (customer independent requirements) are created in Sales andDistribution. Customer requirements can enter Material Requirements Planningdirectly, depending on their requirement type. This is always desirable if you wantto plan for specific customers.

Sales orders can be used either as exclusive requirement sources, for whichprocurement is then specifically triggered (make-to-order production), or they can begrouped with planned independent requirements to create the total requirements.Consumption is also possible with planned independent requirements.

Figure 5: MRP Procedures

If you want to plan material requirements automatically, you must define suitableMRP and lot-sizing procedures in the material master. To do this, use the MRP typeand lot size indicators. Depending on the procedure you choose, you then have tomaintain further data in the material master. You can define different MRP proceduresfor a material in different plants.

The two main planning procedures are consumption-based planning and materialrequirements planning.



Consumption-based planning is based on historical consumption values anduses forecasting or statistical procedures to determine future requirements.Consumption-based planning is characterized by its simplicity and is mainly used forB and C parts with a low value. One prerequisite of consumption-based planning isefficient and constantly up-to-date inventory management.

In contrast to consumption-based planning, material requirements planning takescurrent and future sales as a reference point and is executed for the whole BOMstructure. The planned requirement quantities trigger the MRP calculation. It producesbetter planning results than consumption-based planning.

Figure 6: The principle of MRP

In the first step for detailed planning in MRP, the procurement dates and quantities forthe required assemblies and components are determined based on the requirementsdates and quantities for the finished product (for example, a sales order). Bills ofmaterial and routings must be exploded to do this.

Scheduling of procurement for in-house products is carried out using the routing. Theproduction operations to be executed and the length of the individual operations arespecified in the routing. The assemblies (from the BOM) required for production mustbe available when production of the finished product is started. Procurement of theseassemblies must therefore be initiated earlier. In this way, assuming the dependent



requirements date is the availability date, the system determines the order dates ofthe components by means of backward scheduling using the in-house productiontime or planned delivery time.



Exercise 1: Production Planning Processwith ECC

Exercise ObjectivesAfter completing this exercise, you will be able to:� Execute the main steps required for the production planning process in SAP ECC.

Business ExamplePrecision Pumps Inc uses the make-to-stock production strategy. The make-to-stockproduction strategy is used. Pumps are manufactured, put away, and then sold.

Task 1:In plant 1000, enter a demand program (planned independent requirements) formaterial R-F1## (replace ## with your group number). Select make-to-stockproduction (LSF requirements) for the first 8 weeks of your planning period. To dothis, proceed as follows:

1. Maintain the material master: In the material master for pump R-F1##, enterstrategy group 10 for plant 1000 in theMRP 3 view and save the change.

2. In Demand Management, enter the planned independent requirements(requirement type LSF) for material R-F1## in plant 1000 (version 00). Setthe planning period to week format by entering the indicatorW in the planningperiod field in the initial screen for the transaction. Enter the following plannedindependent requirements for pump R-F1## in plant 1000:

Current

Week + 5

Current

Week + 6

Current

Week + 7

... Current

Week + 1225 25 25 ...25

(Total quantity: 200 pieces, the first column on the left-hand side in transactionMD61 is the current week)

Save your entries.

3. From the MRP menu, display the stock/requirements list for material R-F1## inplant 1000.

Continued on next page



Note down the exact date of the second LSF require-ment:______________________

Task 2:From the MRP menu, carry out multilevel, single-item planning for pump R-F1##.In the initial screen of the planning run, use the following creation indicators:

Processing key NETCH

Purchase req. purchase req. 2

Scheduling agreement schedule lines 3

Create MRP list 1

Planning mode 1

Scheduling 1

Also plan unchanged components Select

Display results Do not select

Display material list Select

Simulation mode Do not select

1. In the initial screen for single-item, multilevel MRP, save the creation indicatorsetting you have made for the MRP run by selecting the menu path Settings→ Save.

2. Start the MRP run by choosing Enter and confirm the system warning bychoosing Enter again.

Task 3:Once the MRP run has been carried out successfully, the system displays the statistics.

1. Choose theMaterial List pushbutton and select the row containing your pumpR-F1## by clicking on the button at the beginning of the row. Goto the displayfor the current stock-/requirements list for the material and refresh the screen(F6).You can now see the planned orders created for the requirements.




2. Display one of the planned orders by double-clicking it and choosing DisplayElement. Select the Component Overview pushbutton and compare theorder start date of the end product R-F1## with the requirements date for theassemblies R-B1##, R-B2## and R-B3##. How do you explain the date?

__________________________________________________________________

__________________________________________________________________

Then exit the display for the planned order and the stock-/requirements list(understand that you navigated in the stock-/requirements list in display mode).

Task 4:Call the current stock/requirements list again and convert the first two planned ordersinto production orders. Then release each production order.

1. From theMRP menu, display the current stock/requirements list for materialR-F1## in plant 1000.

2. Click on the Details of Element icon to display the statistics for the first plannedorder in the list. Choose the Convert planned order into production orderfunction.

Release the production order and save the order

3. Repeat the operation for the second planned order.

4. Refresh the display by selecting Refresh. Make a note of the production ordernumbers.

Production order number 1

_______________________________________


_______________________________________

Hint: You may have to wait a few seconds for the asynchronous updateto read the data from the queue and update it to the database. You cancall the refresh function several times until you see the production orders.




Task 5:Now assume that you have produced the product, and can post the end product, thepump, to stock. (We will skip completion confirmation for the purposes of thistraining example)

1. Execute the goods movement (more precisely: the Goods receipt for the orderMIGO with the transactionMIGO_GO) from the Inventory Management menu.

In this transaction, use Goods Receipt and Order, not Display, to make yourselections. Enter the order number and choose Enter to confirm your entry.

Select the Item OK field. You may have to scroll down to see this.

Take a look at theWhere tab page to make sure that themovement type 101 hasbeen defined (order to stock).

Post the goods movement.

Repeat the operation for the second order number.

2. Check the stock situation in the stock/requirements list and make a note of

the quantity of the oldest planned independent requirement:_____________________

the date of the oldest planned independent requirement:_____________________

the quantity available today: _____________________



Solution 1: Production Planning Processwith ECCTask 1:In plant 1000, enter a demand program (planned independent requirements) formaterial R-F1## (replace ## with your group number). Select make-to-stockproduction (LSF requirements) for the first 8 weeks of your planning period. To dothis, proceed as follows:

1. Maintain the material master: In the material master for pump R-F1##, enterstrategy group 10 for plant 1000 in theMRP 3 view and save the change.

a) Menu path: Logistics→ Production→ Master Data→ Material Master→ Material→ Change→ Immediately

2. In Demand Management, enter the planned independent requirements(requirement type LSF) for material R-F1## in plant 1000 (version 00). Setthe planning period to week format by entering the indicatorW in the planningperiod field in the initial screen for the transaction. Enter the following plannedindependent requirements for pump R-F1## in plant 1000:

Current

Week + 5

Current

Week + 6

Current

Week + 7

... Current

Week + 1225 25 25 ...25

(Total quantity: 200 pieces, the first column on the left-hand side in transactionMD61 is the current week)

Save your entries.

a) Menu path: Logistics→ Production→ Production Planning→ DemandManagement→ Planned Independent Requirements→ Create

3. From the MRP menu, display the stock/requirements list for material R-F1## inplant 1000.

Note down the exact date of the second LSF require-ment:______________________

a) Menu path: Logistics→ Production→ Production Planning→ DemandManagement→ Environment→ Stock/Requirements List

Date of second LSF requirement: Varies




Task 2:From the MRP menu, carry out multilevel, single-item planning for pump R-F1##.In the initial screen of the planning run, use the following creation indicators:


Purchase req. purchase req. 2

Scheduling agreement schedule lines 3

Create MRP list 1

Planning mode 1

Scheduling 1

Also plan unchanged components Select

Display results Do not select

Display material list Select

Simulation mode Do not select

1. In the initial screen for single-item, multilevel MRP, save the creation indicatorsetting you have made for the MRP run by selecting the menu path Settings→ Save.

a) Menu path: Logistics→ Production→ MRP→ Planning→ Single-Item,Multi-Level

2. Start the MRP run by choosing Enter and confirm the system warning bychoosing Enter again.





Task 3:Once the MRP run has been carried out successfully, the system displays the statistics.

1. Choose the Material List pushbutton and select the row containing your pumpR-F1## by clicking on the button at the beginning of the row. Goto the displayfor the current stock-/requirements list for the material and refresh the screen(F6).You can now see the planned orders created for the requirements.

a) No solution required.

2. Display one of the planned orders by double-clicking it and choosing DisplayElement. Select the Component Overview pushbutton and compare theorder start date of the end product R-F1## with the requirements date for theassemblies R-B1##, R-B2## and R-B3##. How do you explain the date?

__________________________________________________________________

__________________________________________________________________

Then exit the display for the planned order and the stock-/requirements list(understand that you navigated in the stock-/requirements list in display mode).

a) How do you explain the date? The requirements dates for the assembliescoincide with the order start date of the planned order for the finishedproduct. The assemblies are therefore available at the start of productionfor the finished product.

Task 4:Call the current stock/requirements list again and convert the first two planned ordersinto production orders. Then release each production order.

1. From theMRP menu, display the current stock/requirements list for materialR-F1## in plant 1000.


2. Click on the Details of Element icon to display the statistics for the first plannedorder in the list. Choose the Convert planned order into production orderfunction.

Release the production order and save the order





3. Repeat the operation for the second planned order.


4. Refresh the display by selecting Refresh. Make a note of the production ordernumbers.


_______________________________________


_______________________________________

Hint: You may have to wait a few seconds for the asynchronous updateto read the data from the queue and update it to the database. You cancall the refresh function several times until you see the production orders.

a) Production order number 1: Varies

Production order number 2: Varies

Task 5:Now assume that you have produced the product, and can post the end product, thepump, to stock. (We will skip completion confirmation for the purposes of thistraining example)

1. Execute the goods movement (more precisely: the Goods receipt for the orderMIGO with the transactionMIGO_GO) from the Inventory Management menu.

In this transaction, use Goods Receipt and Order, not Display, to make yourselections. Enter the order number and choose Enter to confirm your entry.

Select the Item OK field. You may have to scroll down to see this.

Take a look at theWhere tab page to make sure that themovement type 101 hasbeen defined (order to stock).

Post the goods movement.

Repeat the operation for the second order number.

a) Menu path: Logistics→Materials Management→ Inventory Management→ Goods Movement→ Goods Receipt→ GR for Order (MIGO)

Alternatively, you can also use transaction MIGO (goods movementMIGO).




2. Check the stock situation in the stock/requirements list and make a note of

the quantity of the oldest planned independent requirement:_____________________

the date of the oldest planned independent requirement:_____________________

the quantity available today: _____________________

a) the quantity of the oldest planned independent requirement: 25

the date of the oldest planned independent requirement: Varies

the quantity available today: 50



Lesson Summary

You should now be able to:� Place the course content in the overall context� Outline the business scenario used� Give an overview of Supply Chain Planning in ECC


SCM240 Unit Summary

Unit SummaryYou should now be able to:� Place the course content in the overall context� Outline the business scenario used� Give an overview of Supply Chain Planning in ECC


Unit Summary SCM240


Unit 2Demand management

Unit OverviewDemand management represents the first step in the planning process, as it isconsidered in this course. This unit (and course) does not cover determination of theactual level of the planned independent requirements � this is the task of preliminarydemand planning, realized in the SAP system by executing Sales and OperationsPlanning (or alternatively in SAP SCM (APO DP = Demand Planning)). Normally,the forecasting technique is used here.

Assuming that the planning figures are known, this unit deals with the issue of therequirements type for planned independent requirements. The requirements type isdetermined (or rather, can be determined) by the strategy entered in the material master.Point out that a strategy is usually defined as a result of the planned independentrequirement type and a customer requirement type, and how these interact.

In this course, sales orders are simulated by customer requirements (a sales ordercreates a customer requirement), since you have to create a delivery in order to cancelout a sales order (for which there is not enough time in this course). Otherwisecustomer requirements behave in the same manner as sales orders.

Introduce the various strategies in detail and explain their functions. There arestrategies that take effect at finished product level, and assembly strategies that areused for planning an assembly. The functions of planned independent requirementconsumption with customer requirements or dependent requirements and the functionsof planned independent requirement reduction are important in understanding howthe strategies work.

Furthermore, this unit will look explicitly at the availability check against planningand the availability check with ATP logic, although both these issues really comeunder the area of Sales. Nevertheless, this integrated whole must be dealt with fromtwo perspectives: Availability checks can also play a role in production planning(checking for available components from planned orders or production orders). Youshould also point out the difference between the net requirements calculation and theavailability check.


Unit 2: Demand management SCM240


� Use the planning strategy� Explain the interplay between planned independent requirements and customer

requirements� Use planning strategies for make-to-stock production� Use planning strategies for make-to-order production� Explain assembly processing� Make demand management settings� Make an adjustment and reduce requirements� Carry out ATP checks for sales orders

Unit ContentsLesson: Overview of Demand Management ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23Lesson: Planning Make-to-Stock Production... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Exercise 2: Sales Orders in Make-to-Stock Production .. . . . . . . . . . . . . . . . . . . 43Exercise 3: Planning with Final Assembly .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49Exercise 4: Subassembly Planning .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

Lesson: Planning Make-to-Order Production .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66Exercise 5: Planning Without Final Assembly .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79

Lesson: Enhancements for Demand Management ... . . . . . . . . . . . . . . . . . . . . . . . . . . 87Exercise 6: Customizing... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97

Lesson: Basics of the Availability Check... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .103Exercise 7: Availability Check for Sales Order .. . . . . . . . . . . . . . . . . . . . . . . . . . . .109


SCM240 Lesson: Overview of Demand Management

Lesson: Overview of Demand Management

Lesson OverviewThe fundamental concepts of demand management and the terms specific to thisarea will be explained.


� Use the planning strategy� Explain the interplay between planned independent requirements and customer

requirements

Business ExampleYou are a member of a project team in a company that manufactures pumps. Theteam is responsible for the implementation of production planning, from demandmanagement to material requirements planning. The pumps are not configurable.

You want to use planning strategies for the procurement of non-configurable pumps inDemand Management.

Figure 7: Overview: Requirements Calculation

With regard to later procurement and therefore requirement coverage, it is first usefulto take an overview of the net requirements calculation for material requirementsplanning. A procurement is generally necessary only if the requirements situation



exceeds the stock/receipt situation at the time of the comparison. Here, it isimportant which requirements are included in the requirements situation and how therequirements affect each other (for example, whether they are MRP-relevant andwhether they offset each other). The respective requirements volume (and thereforethe production program) also depends on the default settings maintained in theplanning or requirement strategy.

Note that, from a technical point of view, this behavior is not the same as anavailability check . The above comparison is a net requirements calculation.

This unit deals with the properties of the important ECC planning strategies and howto use them to generate a relevant production program.

Figure 8: Reasons for using planning strategies

A requirement is the quantity of a material that is required at a certain time in a plant.

Planned independent requirements have no relation to the requirements of othermaterials. In particular, planned independent requirements can be attained usingflexible planning or manual planning in the ECC system. They can also becharacterized under the general term �planning�. Together with sales orders theyform dependent requirements.

A planning strategy specifies one of a number of possible material planningprocedures.

Some planning strategies support make-to-stock production. You could, for example,plan production or purchasing based on a forecast and then cover the sales ordersfrom the stock.



Some planning strategies support make-to-order production. In this case, you may notstart production or purchasing, for example, until a sales order has been received.

Some requirements strategies support a combination of make-to-stock andmake-to-order production. You could produce the subordinate assembly based on aforecast, for example. You would not start the final assembly until a sales order isreceived.

Figure 9: Spectrum of Planning Strategies

A number of options are available for planning production with the help ofplanned independent requirements. The different effects that planned independentrequirements can have is controlled in ECC by the planning strategy.

If you use make-to-stock production strategies, production usually takes place withoutthere being sales orders for the respective material. If sales orders are then received,these can be met by warehouse stock so that short delivery times can be realized.With make-to-stock production, it is also possible to implement a steady productionprocess, independent of the current demand.

Make-to-stock production can also be executed for assemblies. In this case, thefinished products themselves are not produced to stock, but rather the necessaryassemblies are procured. A sales order for a finished product can usually be fulfilledquickly because only final assembly remains to be carried out and the assembliesrequired for this already exist.



Sales-order based production is not based on planning in the real sense; rather aproduct is procured for an existing sales order. Make-to-order production is oftenused in connection with subassembly planning for the components, to keep deliverytimes as short as possible.

Figure 10: Overview: Important Planning Strategies in ECC

The make-to-stock production strategies plan production or procurement using plannedindependent requirements, which can be created from sales or forecast figures. Salesorders are fulfilled by warehouse stock. Make-to-stock production strategies are usedin industries where demand and sales fluctuate but where production should be kept atfull capacity. Fluctuations in demand and sales are balanced out by warehouse stock.

When working with the strategies for make-to-order production, the sales order is theonly pegged requirement. In addition to standard make-to-order production, planningwithout final assembly is also possible. Various strategies for assembly processingare also available.



Lesson Summary

You should now be able to:� Use the planning strategy� Explain the interplay between planned independent requirements and customer

requirements



Lesson: Planning Make-to-Stock Production

Lesson OverviewPlanning make-to-stock production is mainly done using planned independentrequirements. Sales orders can be taken into account too, without the need for salesorder-specific planning.


� Use planning strategies for make-to-stock production

Business ExamplePump production is planned independently of sales orders using planned independentrequirements.

Figure 11: Important Make-to-Stock Production Strategies


SCM240 Lesson: Planning Make-to-Stock Production

Figure 12: Make-to-Stock: Overview

Areas where used: Make-to-stock strategies are aimed at planning the procurementof components (production or purchasing) by planning the finished product. If it iseasier for you to plan at component level, you can use planning at assembly level.Choose a make-to-stock production strategy if a) the materials do not have to be storedseparately or are assigned to a specific sales order; b) the costs have to be visible atmaterial level, in other words not at sales order level.

You use make-to-stock production when you produce stock independently of an order,because you want to supply your customers with goods from this stock later. Youmay want to produce goods without a sales order if you expect a demand for themin the future. Make-to-stock strategies thus support very close customer-supplierrelationships, since their purpose is to supply the customer with goods from stock asquickly as possible. Returns that have been through a quality check as well as otherunplanned goods receipts can be used for other sales orders. You can avoid increasedwarehouse stock in a make-to-stock environment by creating planned independentrequirements in advance to plan your stock. If you do this, you can also decidewhether sales orders that exceed your plan can influence production. In addition, salesorders should be known at a relatively early stage (for example, using schedulingagreements). Make-to-stock production strategies generally consist of four phases:Generation of planned independent requirements, procurement, receipt of sales order,goods issue for delivery and reduction of planned independent requirements.



Figure 13: Make-to-Stock Production (10)

In pure make-to-stock production (�net requirements planning� according to strategy10), the demand program is determined without reference to sales orders.

Sales orders are not relevant for MRP, but you can display them for informationpurposes. You can make this setting in the No MRP field in Customizing forthe relevant requirements class (work step, �Define Requirements Classes� inCustomizing for Sales and Distribution).

Sales orders are fulfilled from stock. No consumption with planned independentrequirements occurs. You can carry out the availability check with ATP logic in Salesand Distribution. Goods withdrawals against a sales order reduce the respective salesorder.

Reduction of the demand program, that is, of the planned independent requirements, iscarried out at goods issue (the PIR reduction indicator must be set in Customizingfor customer requirements class 30 if you want to reduce the demand program bydelivering to a sales order). The oldest planned independent requirement is reducedfirst, in accordance with the FIFO (first in first out) principle using the requirementdate. Future planned independent requirements are also reduced by goods issues,providing this is allowed by the �forward consumption period� in the material master.



Figure 14: Make-to-Stock Production (10): Master Data

Maintain the strategy group 10 in the material master (MRP 3) for the finished product.

Figure 15: Make-to-Stock Production/Net Requirements Planning (10)

The demand program is defined without reference to sales orders.



Sales orders are not relevant for MRP, but you can display them for informationpurposes. You make this setting in the No MRP field in Customizing for the relevantrequirements class (work step, �Define Requirements Classes� in Customizing forSales and Distribution).

Sales orders are fulfilled from stock. You can carry out the availability check withATP logic in Sales and Distribution. Goods withdrawals against a sales order reducethe respective sales order.

Reduction of the demand program, that is, of the planned independent requirements, iscarried out at goods issue (the PIR reduction indicator must be set in Customizingfor requirements class 30 if you want to reduce the demand program when deliveringto a sales order). The oldest planned independent requirement is reduced first, inaccordance with the FIFO (first in first out) principle and using the requirement date.Future planned independent requirements are also reduced by goods issues, providingthe forward consumption period in the material master allows this.

Figure 16: Production by Lot Size (30)

In production by lot size (strategy 30), the requirements for the finished product aretransferred to MRP when a sales order is processed. You can also plan additionalwarehouse requirements in Demand Management. This means that in production bylot size, sales orders as well as planned independent requirements are included inMaterial Requirements Planning. Planned independent requirements are not consumedby sales orders, however. Both requirements can then be procured in common lotusing a suitable lot-sizing procedure (for example, period lot-sizing) with a commonprocurement element (such as a planned order).



Sales orders are fulfilled from stock. The customer requirement is reduced by thegoods issue to the customer. You can carry out the availability check with ATP logicin Sales and Distribution.

The warehouse orders created additionally in demand management are reduced bythe goods issue to the warehouse order, for example, to a cost center (the reduction iscarried out according to the FIFO principle, just as for planning strategy 10).

You can apply this strategy when you need to map orders for major customers andfactory sales from the warehouse simultaneously, for example.

Figure 17: Production by Lot Size (30): Master Data



Figure 18: Production by Lot Size (30) for Sales and Stock Orders

In production by lot size, the system groups the procurement quantities for customerrequirements and planned independent requirements into lots. To do this, it uses thelot-sizing procedure defined in the material master record.

Figure 19: Planning with Final Assembly (40)



Planning with final assembly (planning strategy 40) allows you to focus on flexibleand fast reaction to customer demand, whilst also aiming for a production process thatis as smooth as possible.

The procurement and production of all components and assemblies including theirfinal assembly should be triggered by planned independent requirements before salesorders arrive.

You set the planned independent requirements for the finished product inDemand Management. Incoming sales orders consume these planned independentrequirements.

Planned independent requirements that have not been consumed can - periodically, forexample - be set to zero (transaction MD74).

If customer requirements exceed planned independent requirements, the systemautomatically creates a planned order for the sales order, including the unplannedquantity, in the next MRP run (sales orders that affect requirements).

The availability check can be executed from the sales order.

The consumption of planned independent requirements by customer requirementsdepends on the consumption mode and the consumption periods.

Figure 20: Planning with Final Assembly (40): Master Data

Maintain the strategy group 40 in the material master (MRP 3) for the finished product.



The settings for the consumption of sales orders and planned independent requirementsfrom the material master are included in this strategy.

In the material master, an MRP group can also be used to assign the consumption tothe material. If consumption values are found both directly using the strategy groupand indirectly using the MRP group, the values from the strategy group are taken.

Figure 21: Consumption

You can use consumption mode to determine the direction on the time axis in whichincoming sales orders are to consume planned independent requirements.

In backward consumption (consumption mode 1), the sales order consumes plannedindependent requirements from before the customer requirement.

In forward consumption (consumption mode 3), the sales order consumes plannedindependent requirements from after the customer requirement.

You can combine backward and forward consumption provided that you take theconsumption periods into account (consumption modes 2 or 4).



You can define the consumption mode and the consumption periods either in thematerial master or for each plant and MRP group. If no values have been entered, thesystem uses the default setting with backward consumption for 999 days

Hint: If you use mode 1 and do not maintain the backward consumptioninterval, this means that only the requirements on the current day areconsumed.

The consumption indicator (consumption type) is important in addition to theconsumption mode and consumption periods. The consumption indicator controlswhether the planned independent requirements are consumed with customerrequirements or with dependent requirements and order reservations, for example.It is defined as a default value for each planned independent requirement class inCustomizing for Demand Management. The indicator can be overridden in the itemdetail screen for planned independent requirements management.

Figure 22: Consumption Mode 1: Backward Consumption (I)



Figure 23: Consumption Mode 1: Backward Consumption (II)

Figure 24: Consumption Mode 2: Backward/Forward



Figure 25: Planning at Assembly Level (70)

It makes sense to plan at assembly level (strategy 70 + set mixed MRP indicator)when processing variants if it is easier to specify a requirements forecast for certainassemblies than it is for the variant diversity of the finished product.

With this planning strategy, planning for an assembly is considered separately.The planned independent requirement is entered at assembly level and triggers theproduction of the assembly.

If sales orders are received for the finished product, the BOM is exploded for thefinished product. Dependent requirements or reservations are also created for theassembly as a result of planned orders or production orders for the finished product.These consume the planned independent requirements of the assembly.

If, due to sales orders, planned orders, or production orders at finished product level,the dependent requirements or reservations exceed the assembly's planned independentrequirements, a planned order is created for the assembly during the next planning run.

In Sales and Distribution, the system does not perform a check of the assemblyplanning quantities.

In the strategy group of the material master record, you must enter strategy 70 and themixed MRP indicator must be set for assembly planning.

The consumption indicator in the item screen of the planned independent requirementsmust allow consumption with reservations and dependent requirements.



Figure 26: Planning at Assembly Level (70): Master Data

You make the strategy setting in the material master for the assembly or assemblies.Maintain the planning strategy 70 together with the set mixed MRP indicator in theECC material master (MRP 3) for the assembly or assemblies. In principle, thefinished product can show any strategy.

Maintain the consumption parameters (consumption mode, forward and backwardconsumption periods) in the material master.

The consumption indicator in the item screen for the planned independentrequirements must allow consumption with reservations and dependent requirements.

If you map this strategy together with a final assembly that takes place inmake-to-order production, you must also set the individual/collective indicator to�collective� in the material master of the assemblies.



Figure 27: Consumption in Subassembly Planning (70)

In the first step, you create the requirement quantities expected in the future for theassembly. You do this in Demand Management.

Sales orders at finished product level are created and planned or production ordersgenerated.

The resulting dependent requirements or reservations (for the assembly) consume theplanned independent requirements of the assembly.



Figure 28: Subassembly Planning (70): Consumption Periods

Similar to ECC strategy 40, the consumption logic is determined by the consumptionmode and the backward and forward consumption periods. These are defined in thematerial master for the assembly, or per plant and MRP group.

With this strategy, the consumption periods are calculated on the basis of thedependent requirements or reservations.



Exercise 2: Sales Orders in Make-to-StockProduction

Exercise ObjectivesAfter completing this exercise, you will be able to:� Describe the effect of a sales order in make-to-stock production.

Business ExamplePrecision Pumps Inc. has produced pumps to stock using make-to-stock production.A sales order is received. The sales order should have no influence on planning, butshould be available for information purposes. The sales order is delivered.

Task 1:You have executed planning strategy 10 from the start. Now create a customerrequirement in make-to-stock production and examine its effect in planning.

1. In the Demand Management menu, create a customer requirement of 10pieces for pump R-F1##. The date should appear 4 days after the secondplanned independent requirements date in the stock/requirements list. Usethe following data:

Delivering plant: 1000

Required delivery date: 4 calendar days after thesecond planned independentrequirements date in thestock/requirements list

Material: R-F1##

Quantity: 10 pieces

Confirm your entry by choosing Enter and make sure that the systemautomatically defines the customer requirement type KSL in the item.

Save the customer requirement.




2. Call the current stock/requirements list for material R-F1## in plant 1000(you can access the current stock/requirements list directly from the DemandManagement environment). You can see that the sales order is displayed forinformation purposes only but it is not relevant to planning (that is, it has noeffect on the available quantity).

a) Note the customer requirement number/item number:

__________________ / __________________________________

b) and the customer requirement quantity:

______________________________________________________

Task 2:Now reduce the planned independent requirements by withdrawing stock for thecustomer requirement.

1. The customer appears at the sales desk and wants to collect the 10 pumps ordered.The customer placed the order by telephone quite a while ago. You created thesales order in the system and it is displayed in the evaluation for informationpurposes, although the material ordered is from make-to-stock production.

From the Inventory Management menu, post the withdrawal to the customer inthe form of an other goods issue (transaction Goods Issue MIGO). Carry out thegoods movement using the following parameters:

Material number: R-F1##

Quantity: 10 pieces

Movement Type: 231 (Consumption to sales orderfrom warehouse)

Plant: 1000

Storage Location: 0002

Confirm the data with Enter and then enter the customer requirement number anditem you noted above on the Account Assignment tab page. Save your entries.

2. Call the stock/requirements list and examine the stock situation.

a) How has the stock situation changed?

______________________________________________________

b) Which independent requirements and sales orders have been reduced?




______________________________________________________

______________________________________________________



Solution 2: Sales Orders in Make-to-StockProductionTask 1:You have executed planning strategy 10 from the start. Now create a customerrequirement in make-to-stock production and examine its effect in planning.

1. In the Demand Management menu, create a customer requirement of 10pieces for pump R-F1##. The date should appear 4 days after the secondplanned independent requirements date in the stock/requirements list. Usethe following data:


Required delivery date: 4 calendar days after thesecond planned independentrequirements date in thestock/requirements list

Material: R-F1##

Quantity: 10 pieces

Confirm your entry by choosing Enter and make sure that the systemautomatically defines the customer requirement type KSL in the item.


a) Menu path: Logistics→ Production→ Production Planning→ DemandManagement→ Customer Requirements→ Create

2. Call the current stock/requirements list for material R-F1## in plant 1000(you can access the current stock/requirements list directly from the DemandManagement environment). You can see that the sales order is displayed forinformation purposes only but it is not relevant to planning (that is, it has noeffect on the available quantity).

a) Note the customer requirement number/item number:

__________________ / __________________________________

b) and the customer requirement quantity:




______________________________________________________

a) Sales order number/item number: Varies/10

b) Sales order quantity: 10 PC

Task 2:Now reduce the planned independent requirements by withdrawing stock for thecustomer requirement.

1. The customer appears at the sales desk and wants to collect the 10 pumps ordered.The customer placed the order by telephone quite a while ago. You created thesales order in the system and it is displayed in the evaluation for informationpurposes, although the material ordered is from make-to-stock production.

From the Inventory Management menu, post the withdrawal to the customer inthe form of an other goods issue (transaction Goods Issue MIGO). Carry out thegoods movement using the following parameters:

Material number: R-F1##

Quantity: 10 pieces

Movement Type: 231 (Consumption to sales orderfrom warehouse)

Plant: 1000

Storage Location: 0002

Confirm the data with Enter and then enter the customer requirement number anditem you noted above on the Account Assignment tab page. Save your entries.

a) Menu path: Logistics→Materials Management→ Inventory Management→ Goods Movement→ Goods Issue (MIGO)

Alternatively, you can also use the transaction MIGO (goods movementMIGO).

2. Call the stock/requirements list and examine the stock situation.

a) How has the stock situation changed?

______________________________________________________

b) Which independent requirements and sales orders have been reduced?

______________________________________________________




______________________________________________________

a) Stock reduced from 50 pieces to 40 pieces.

b) The oldest planned independent requirement has been reduced from25 pc to 15 pc. At the same time, the customer requirement wasreduced (from 10 pieces to 0 pieces) and no longer appears.



Exercise 3: Planning with Final Assembly

Exercise ObjectivesAfter completing this exercise, you will be able to:� Describe how planning with final assembly strategy works� Describe the effects of a sales order when using planning with final assembly

strategy

Business ExamplePrecision Pumps Inc. has produced pumps to stock. It now wants to change itsstrategy to planning with final assembly.

Task 1:In plant 1000, you want to enter a demand program (planned independentrequirements) beginning in six months time and distributed over a period of sixmonths. For these 6 months of your planning, choose the planning with final assembly(VSF requirements) strategy to plan the production of 1200 pumps. To do this, followthe two steps described below:

1. Maintain the material master: In the material master for pump R-F1## enterthe strategy group 40 (planning with final assembly). To do this, call thetransaction Change material immediately from the production master data withthe following parameters:

Select view(s): MRP 3

Organizational levels: Plant 1000

In the strategy group field, enter the value 40 and save the material master.

2. Maintain planned independent requirements: From the Demand Managementmenu create planned independent requirements for material R-F1## in plant1000. Set the planning period to month format by entering the indicator M andVersion 00 in the planning period field on the initial screen for the transaction.Start the transaction.

Enter material number R-F1## and plant 1000 (field MPR area) on the tablescreen in a new empty row. Select this row and go to the Schedule lines tab pageto access the schedule lines screen. Make sure the requirements type VSF, whichbelongs to strategy 40, is set automatically by the system.




Call the Split period online function from the edit menu to instruct the systemto automatically split the production quantity of 1200 pieces over the 6 monthperiod. Use the following data:

From: M, current month + 6months

To: Current month + 11months

Planned quantity: 1200 pieces

Period indicator for automatic distribution of requirements quantity: M.

Confirm (including any potential warnings) with Enter and save therequirements.

Task 2:

1. Display the stock/requirements list for material R-F1## in plant 1000 and note

a) the second VSF requirements date:

_________________________________

b) and the requirement quantity:

_________________________________

Task 3:From the MRP menu, carry out multilevel, single-item planning for pump R-F1##.Use the same creation indicators as in the previous exercises. Make sure the �DisplayMaterial List� indicator is selected. Start the planning by choosing Enter twice. Oncethe MRP run has been carried out, the system displays the statistics.

1. Choose the Material List function, select the row with pump R-F1## and goto tothe stock/requirements list of the material. You now see the planned orders thathave been created for the requirements (refresh the list if necessary).

2. What is the available quantity for the second VSF requirement date?

_________________________________

3. What is the planned independent requirements quantity for the second VSFrequirements date?




_________________________________

Task 4:Now enter a customer requirement of 10 pieces from the Demand Management menufor material R-F1## in plant 1000.

1. Use the second VSF planned independent requirement date + 4 calendardays (that is, the date you noted above + 4 days) as requirement date for thecustomer requirement. Make sure the requirements type is KSV (sales orderwith consumption) and save your entries.

Task 5:Call the current stock/requirements list again (If necessary choose the Refreshpushbutton after having called up the list) and analyze the behavior of the customerrequirement that you have just entered.

1. What difference do you see compared to the customer requirement you createdin make-to-stock production (previous exercise)?

______________________________________________________

2. What is the planned independent requirement quantity for the second VSFrequirements date in the stock/requirements list now?

______________________________________________________

Task 6:In the stock/requirements list, select the second VSF planned independent requirementand call the Details of element and Display element functions. In the plannedindependent requirements table, select the row with the requirements that were createdlast and examine the VSF planned independent requirement quantities (as they appearon the database) on the schedule lines screen.

1. Note the requirements quantity on the date above:

______________________________________________________

2. Do the two quantities (i.e., the quantity in this question and the quantity in theprevious question) differ? If so, by how much?

______________________________________________________




Task 7:Analyze the total planned independent requirements situation. To do this, access theDisplay Total Requirements function in the evaluations for Demand Management.

1. Which VSF requirements quantities were consumed by which customerrequirements quantities?

______________________________________________________

2. Which planned independent requirements quantities are displayed in thestock/requirements list?

______________________________________________________

Task 8:10 pumps from stock are delivered to the customer. Post the other goods issue. Youmust enter the customer requirement number and the item number here. You can findthis number in the stock/requirements list in the VSF planning customer requirement(planning with final assembly). You will recognize the process of this goods movementposting from the exercise �sales orders in make-to-stock production�, task 2.

1. How has the stock situation changed?

______________________________________________________

2. Which planned independent requirements (customer requirements/plannedindependent requirements) were reduced by the goods issue from warehouse?(From the current stock/requirements list, look at the schedule lines of the VSFrequirements on the database.)

______________________________________________________



Solution 3: Planning with Final AssemblyTask 1:In plant 1000, you want to enter a demand program (planned independentrequirements) beginning in six months time and distributed over a period of sixmonths. For these 6 months of your planning, choose the planning with final assembly(VSF requirements) strategy to plan the production of 1200 pumps. To do this, followthe two steps described below:

1. Maintain the material master: In the material master for pump R-F1## enterthe strategy group 40 (planning with final assembly). To do this, call thetransaction Change material immediately from the production master data withthe following parameters:

Select view(s): MRP 3

Organizational levels: Plant 1000

In the strategy group field, enter the value 40 and save the material master.


2. Maintain planned independent requirements: From the Demand Managementmenu create planned independent requirements for material R-F1## in plant1000. Set the planning period to month format by entering the indicator M andVersion 00 in the planning period field on the initial screen for the transaction.Start the transaction.

Enter material number R-F1## and plant 1000 (field MPR area) on the tablescreen in a new empty row. Select this row and go to the Schedule lines tab pageto access the schedule lines screen. Make sure the requirements type VSF, whichbelongs to strategy 40, is set automatically by the system.

Call the Split period online function from the edit menu to instruct the systemto automatically split the production quantity of 1200 pieces over the 6 monthperiod. Use the following data:




From: M, current month + 6months

To: Current month + 11months

Planned quantity: 1200 pieces

Period indicator for automatic distribution of requirements quantity: M.

Confirm (including any potential warnings) with Enter and save therequirements.


Task 2:

1. Display the stock/requirements list for material R-F1## in plant 1000 and note

a) the second VSF requirements date:

_________________________________

b) and the requirement quantity:

_________________________________

a) Varies

b) Varies

Task 3:From the MRP menu, carry out multilevel, single-item planning for pump R-F1##.Use the same creation indicators as in the previous exercises. Make sure the �DisplayMaterial List� indicator is selected. Start the planning by choosing Enter twice. Oncethe MRP run has been carried out, the system displays the statistics.

1. Choose the Material List function, select the row with pump R-F1## and goto tothe stock/requirements list of the material. You now see the planned orders thathave been created for the requirements (refresh the list if necessary).

a) No solution required

2. What is the available quantity for the second VSF requirement date?




_________________________________

a) Available quantity on the second VSF requirements date: 0 pc

3. What is the planned independent requirements quantity for the second VSFrequirements date?

_________________________________

a) Planned independent requirements quantity on the second VSFrequirements date: As above (see task 2)

Task 4:Now enter a customer requirement of 10 pieces from the Demand Management menufor material R-F1## in plant 1000.

1. Use the second VSF planned independent requirement date + 4 calendardays (that is, the date you noted above + 4 days) as requirement date for thecustomer requirement. Make sure the requirements type is KSV (sales orderwith consumption) and save your entries.


Task 5:Call the current stock/requirements list again (If necessary choose the Refreshpushbutton after having called up the list) and analyze the behavior of the customerrequirement that you have just entered.

1. What difference do you see compared to the customer requirement you createdin make-to-stock production (previous exercise)?

______________________________________________________

a) The sales order with requirements type KSV is relevant to requirements.This means it affects the available quantity.

2. What is the planned independent requirement quantity for the second VSFrequirements date in the stock/requirements list now?

______________________________________________________

a) The planned independent requirements displayed in the currentstock/requirements list is 10 less than the original requirement you notedabove. The procurement element remains unaffected by this for the timebeing; no new planning run was triggered.




Task 6:In the stock/requirements list, select the second VSF planned independent requirementand call the Details of element and Display element functions. In the plannedindependent requirements table, select the row with the requirements that were createdlast and examine the VSF planned independent requirement quantities (as they appearon the database) on the schedule lines screen.

1. Note the requirements quantity on the date above:

______________________________________________________

a) Varies (original quantity)

2. Do the two quantities (i.e., the quantity in this question and the quantity in theprevious question) differ? If so, by how much?

______________________________________________________

a) Yes, by 10 pc.

Task 7:Analyze the total planned independent requirements situation. To do this, access theDisplay Total Requirements function in the evaluations for Demand Management.

1. Which VSF requirements quantities were consumed by which customerrequirements quantities?

______________________________________________________

a) Menu path: Logistics→ Production→ Production Planning→ DemandManagement→ Evaluations→ Display Total Reqmts

Consumed VSF requirements quantities: The second VSF plannedindependent requirement quantity is consumed by the KSV customerrequirement.

2. Which planned independent requirements quantities are displayed in thestock/requirements list?

______________________________________________________

a) Displayed independent requirements quantities: In the currentstock/requirements list, the system displays the planned independentrequirements quantities that have not been consumed (that is, theplanned independent requirements that still exist after consumption).




Task 8:10 pumps from stock are delivered to the customer. Post the other goods issue. Youmust enter the customer requirement number and the item number here. You can findthis number in the stock/requirements list in the VSF planning customer requirement(planning with final assembly). You will recognize the process of this goods movementposting from the exercise �sales orders in make-to-stock production�, task 2.

1. How has the stock situation changed?

______________________________________________________

a) New requirements situation: The available plant stock has been reducedfrom 40 pieces to 30 pieces.

2. Which planned independent requirements (customer requirements/plannedindependent requirements) were reduced by the goods issue from warehouse?(From the current stock/requirements list, look at the schedule lines of the VSFrequirements on the database.)

______________________________________________________

a) Planned independent requirements reduction: The customer requirementwas reduced and is no longer included in the list. The VSF plannedindependent requirement was also reduced, that is, the second VSFquantity (affected by the consumption) was also reduced by 10 pc.These 10 pc. are recorded as a withdrawal quantity in the plannedindependent requirements schedule lines.





Exercise 4: Subassembly Planning

Exercise ObjectivesAfter completing this exercise, you will be able to:� Explain the functions in subassembly planning� Monitor the consumption of the planned independent requirements for the

assembly by dependent requirements or reservations created by the procurementelements for the finished product

Business ExamplePrecision Pumps Inc. wants to reduce delivery times for the pump. Procurement of theassemblies is therefore to be triggered in advance, not just when the pump is planned.This will reduce the total replenishment lead time for the finished product.

Task 1:You want to plan subassemblies in order to reduce delivery times for the pump. Todo this, you must create planned independent requirements for the assemblies forpump R-F1## using an appropriate requirements type. We are now going to carry outsubassembly planning using assembly R-B1## in plant 1000 as an example.

1. Modify the material master for R-B1## accordingly. Enter the followingparameters in theMRP 3 view in plant 1000:

Strategy group: 70 (subassembly planning)Consumption mode: 2 (Backward/forward)Consumption period Forward: 12 (working days)Consumption period Backward: 12 (working days)Mixed MRP: 1 (subassembly planning)

Save the material master.

2. Enter a planned independent requirement of 180 pieces for the month afternext for material R-B1## in plant 1000. Set the planning period to monthly byentering the indicator M in the planning period field in the initial screen of thetransaction. Use the following data:




Requirements date: Current month +2

Requirement quantity: 180 pieces

Make sure the requirements type is VSFB and the consumption indicator is 3 inthe item screen of the planned independent requirements. Save the requirement.

Task 2:Call the stock/requirements list for material R-B1## in plant 1000.

1. Which planned independent requirement quantity for the independentrequirement for the assembly created above is still relevant for requirements(displayed)?

______________________________________________________

2. Examine the consumption in the display of the total planned independentrequirements situation of material R-B1## in plant 1000. You can accessthis screen from the Demand Management menu or directly from thestock/requirements list. Which type of requirements consumed the VSFBplanned independent requirements and what was the quantity consumed?

______________________________________________________

3. Is the VSFB requirement covered by a procurement element?

______________________________________________________

Task 3:Select the VSFB planned independent requirement in the current stock/requirementslist.

1. Which VSFB planned independent requirement quantity appears when youchoose Details of element andDisplay element?

______________________________________________________

2. How do you explain the difference between this and the display in the list?

______________________________________________________

Task 4:Now carry out single-item, multilevel planning for material R-B1## in plant 1000.

1. Proceed using the same transaction and settings as in the previous exercises.





1. Which planned independent requirement quantity for the assembly independentrequirement created above is still relevant for requirements (displayed)?

______________________________________________________

2. Is the requirement covered by a procurement element now?

______________________________________________________



Solution 4: Subassembly PlanningTask 1:You want to plan subassemblies in order to reduce delivery times for the pump. Todo this, you must create planned independent requirements for the assemblies forpump R-F1## using an appropriate requirements type. We are now going to carry outsubassembly planning using assembly R-B1## in plant 1000 as an example.

1. Modify the material master for R-B1## accordingly. Enter the followingparameters in theMRP 3 view in plant 1000:

Strategy group: 70 (subassembly planning)Consumption mode: 2 (Backward/forward)Consumption period Forward: 12 (working days)Consumption period Backward: 12 (working days)Mixed MRP: 1 (subassembly planning)

Save the material master.


2. Enter a planned independent requirement of 180 pieces for the month afternext for material R-B1## in plant 1000. Set the planning period to monthly byentering the indicator M in the planning period field in the initial screen of thetransaction. Use the following data:

Requirements date: Current month +2

Requirement quantity: 180 pieces

Make sure the requirements type is VSFB and the consumption indicator is 3 inthe item screen of the planned independent requirements. Save the requirement.






1. Which planned independent requirement quantity for the independentrequirement for the assembly created above is still relevant for requirements(displayed)?

______________________________________________________

a) Planned independent requirements quantities still relevant to requirements:varies (for example, 55 pieces)

2. Examine the consumption in the display of the total planned independentrequirements situation of material R-B1## in plant 1000. You can accessthis screen from the Demand Management menu or directly from thestock/requirements list. Which type of requirements consumed the VSFBplanned independent requirements and what was the quantity consumed?

______________________________________________________

a) Consumption with the VSFB planned independent requirement: Varies.The dependent requirements and, if necessary, the order reservations(each for 25 pc) within the consumption periods consume the VSFBindependent requirements.

3. Is the VSFB requirement covered by a procurement element?

______________________________________________________

a) Procurement elements for the VSFB requirements: No, there is not anappropriate procurement element available as no planning run hasbeen carried out yet.

Task 3:Select the VSFB planned independent requirement in the current stock/requirementslist.

1. Which VSFB planned independent requirement quantity appears when youchoose Details of element andDisplay element?

______________________________________________________

a) VSFB planned independent requirements quantity with Display element:The complete quantity of 180 pc is displayed.

2. How do you explain the difference between this and the display in the list?




______________________________________________________

a) Explanation: The system only displays the non-consumed quantityin the list. The planned independent requirements had not yet beenreduced (by a goods receipt, for example). The complete quantity istherefore still available on the database.

Task 4:Now carry out single-item, multilevel planning for material R-B1## in plant 1000.

1. Proceed using the same transaction and settings as in the previous exercises.



1. Which planned independent requirement quantity for the assembly independentrequirement created above is still relevant for requirements (displayed)?

______________________________________________________

a) Planned independent requirements quantity displayed: This varies, asabove, for example 55 pc.

2. Is the requirement covered by a procurement element now?

______________________________________________________

a) Procurement element: Yes, the requirement is now covered by a newplanned order.



Lesson Summary

You should now be able to:� Use planning strategies for make-to-stock production



Lesson: Planning Make-to-Order Production

Lesson OverviewPlanning make-to-order production involves specific planning for individual salesorders.


� Use planning strategies for make-to-order production� Explain assembly processing

Business ExampleFor some customers or sales orders, pump production planning should beorder-specific down to several BOM components.

Figure 29: Important Make-to-Order Production Strategies


SCM240 Lesson: Planning Make-to-Order Production

Figure 30: Make-to-Order Production: Overview

For make-to-order production, each sales order is planned separately and managed inits own section in the MRP list or the current stock/requirements list.

The system does not perform a net requirements calculation between individual salesorders or with the anonymous warehouse stock.

In make-to-order production, the lot-for-lot order quantity is used as the default settingfor the lot-sizing procedure, regardless of the entry you have made in the materialmaster. You define the lot-sizing procedure for make-to-order production in ECCCustomizing for MRP in the work step �Check Lot-Sizing Procedure� in the field�Lot-Size Calculation for MTO Production�. Depending on how the lot-size indicatoris set in the material master, you can define a lot size for make-to-order productionthat differs from the lot size used in make-to-stock production.

The produced quantities cannot be exchanged between the individual sales ordersand the manufactured quantities are managed directly for the individual sales orders(in the sales order stock).

The sales order stock and the requirement are reduced by a goods issue to thesales order. As soon as the sales order is complete and the make-to-order stockhas been used up, the individual customer segment disappears from the currentstock/requirements list or MRP list in ECC.



Figure 31: Pure Make-to-Order Production (20)

Procurement/production is triggered by the sales order when using this strategy.

Pure make-to-order production (that is, without planning of assemblies/components)is done in ECC using strategy 20.

Figure 32: Pure Make-to-Order Production (20): Master Data



You make the settings for this strategy in the master of the finished product (MRP3).The individual/collective indicators for the assemblies need to be set accordingly inthe corresponding master.

Figure 33: Pure Make-to-Order Production (20): Example

The net requirements calculation is carried out individually for every sales order.Stock cannot be swapped back and forth between sales orders.

The procurement elements, that is, the planned orders, are created with reference tothe sales order and are managed in the individual customer segment. This directreference to the sales order is also retained in the production order.

The system manages the production and procurement costs specifically for each salesorder in a settlement order or project at sales order item level.

Requirements reduction (sales order) and reduction of make-to-order stock occurs ondelivery.



Figure 34: Individual/Collective Indicator: Example (I)

The individual/collective requirements indicator in the material master determineswhether a component is procured for a specific customer requirement in an individualsegment.

The ECC indicator 1 for individual requirements means that the material is beingspecially manufactured or procured for a sales order. An individual segment isspecially created for each requirement. An individual requirement is only created ifthe higher-level material does not generate a collective requirement.

The ECC indicator 2 for collective requirements means that the material is producedor procured for various requirements. The requirements are contained in the netrequirements segment.

The ECC indicator left blank means that the component is planned in the same wayas the higher-level assembly (if this represents the finished product produced inmake-to-order production and also has the indicator left blank, the constraint formake-to-order production replaces the entry with 1: 1 means individual requirementsonly).

In the example above, two individual segments (for sales orders A and B) are createdfor the shaft.

If you want to control the material item for each BOM individually in ECC, use the�Explosion type� field in the component's item data (General Data view). The settingin the ECC BOM overrides the setting in the material master.



Figure 35: Individual/Collective Indicator: Example (II)

All materials that appear under one material in collective requirements in the BOMare planned as collective requirements (�inheritance�) irrespective of the setting inthe material master.

Figure 36: Planning Without Final Assembly (50): Planning



As in make-to-order production, planning without final assembly (planning strategy50) enables you to manufacture products specifically for a customer. However, withthis planning strategy, certain assemblies should be produced or procured before thesales order for the finished product is received. Production does not extend at firstto the finished product level. The material is produced at manufacturing level untilthe point of final assembly, in other words, the assemblies and components are keptat the warehouse until the sales order is received. Final assembly is only triggeredupon receipt of the sales order. This strategy is useful if a large part of the valueadded process occurs at final assembly.

Planning that is independent of the sales order takes place using planned independentrequirements. These planned independent requirements are created for the finishedproduct. In the planning run, the system first creates planned orders for the finishedproduct to cover these requirements. These planned orders cannot be converted intoproduction orders (planned orders without a conversion indicator and the order typeVP). You can only convert these planned orders into production orders once the salesorder has been received. This then triggers final assembly. If a material shortageexists, however, the system creates planned orders at assembly and component levelsin the planning run. These planned orders can be converted into production ordersor purchase requisitions since production and procurement should have already beentriggered for the lower production levels before the sales order is received.

The planning without final assembly strategy enables you to reduce delivery times(since production can access existing assemblies and components without delay)without having to carry out final assembly for the product.

Figure 37: Planning Without Final Assembly (50): Sales Order



The receipt of the sales order triggers final assembly. The sales order appears withinan individual customer segment in which planning is performed separately for thesales order. In the next planning run, the system creates a planned order for thenewly created sales order in the individual customer segment. This planned ordercan be converted into a production order. This then allows final assembly. In theplanning segment, however, the planned order quantity for the planned order withoutconversion indicator (with the order type VP) is reduced in accordance with the newrequirements situation. In this strategy, the sales order is managed in the individualcustomer planning segment. If this is not desired, you can also manage the salesorder in the net requirements segment (planning strategy 52). Should you choose thisprocedure, you have to work with the lot-sizing procedure �lot-for-lot order quantity�.Neither the rounding value or rounding profile nor the minimum or maximum lotsizes should be maintained. Furthermore, stocks are not taken into account. In ECCapplications, this strategy as well as the strategy planning with a planning material arethe most commonly used strategies in a make-to-order production environment.

Example: If a planned independent requirement of 100 pieces exists and you receive asales order for 40 pieces which consumes the planned independent requirements thenthe sales order for 40 pieces remains in the individual customer planning segmentand a planned independent requirement for 60 pieces in the forecast segment. Assoon as the product is planned again in the next planning run, the system creates aplanned order for 40 pieces in the individual customer planning segment which youcan convert into a production order. At the same time, the system reduces the existingplanned order in the planning segment from 100 pieces to 60 pieces.

Figure 38: Planning Without Final Assembly (50): Master Data



Maintain the strategy group 50 (MRP 3) for the finished product and the consumptionparameters.

Maintain the individual/collective indicator 2 in the material master for the assembliesthat are to be procured and stored (supplied for storage) before the sales order isreceived.

It is also possible that production, not only for the finished product, but also for specialassemblies, is only triggered upon receipt of a sales order.

Figure 39: Stocking Level

If a large part of the value added process occurs at final assembly it makes sense touse planning strategy 50 (Planning without final assembly). Here, final assembly isnot triggered until a sales order exists.

The storage level is always below the finished product level.



Figure 40: Flexible Determination of the Stocking Level (50)

If the stocking level (amount up to which is produced to stock) is not generally to bedirectly below the finished product within the product structure, you can move thestocking level for certain materials: If you enter the individual/collective indicator 1(individual requirements only) or �blank� (individual and collective requirement) inthe material master (MRP view) for the material assembly 2, the material assembly 2is specifically produced for the sales order once the sales order is received, and notproduced to stock in advance (planned order with VP status). Only the components ofmaterial assembly 2 are procured and stored before the sales order is received. For thisexample, therefore, you must set the individual/collective indicator to 2 (collectiverequirements only) for the components of assembly 2 also. The strategy group is onlyto be entered for the finished product.

If you do not wish to create VP planned orders in all BOMs for a particular material,you can assign the �Planning off� explosion control indicator in the �Basic Data�for the BOM item. You define this indicator under �Define Explosion Types� inCustomizing for BOMs.



Figure 41: Planned Orders in the Planning Segment (50)

Capacity evaluations are possible for planned orders with order type VP.

Planned orders with order type VP can be used for external procurement,subcontracting, stock transfer or direct production.

These orders cannot be changed manually and cannot be converted into productionorders or purchase orders.

Figure 42: Assembly Processing as a Special Form of Make-to-Order Production

Assembly processing is a form of sales order processing. The procurement elementsare created when you create the sales order



Figure 43: Assembly Order

Assembly processing is a form of sales order processing. The procurement elementsare created on creation of the sales order item. In general, the components of thefinished product have already been manufactured.

Once you have created the sales order, the system checks the availability of thecomponents (for the production order). It also determines a possible delivery dateand costs the order.

With strategy 82, creating the sales order triggers the creation of a production order.You do not need to carry out a separate planning run. With strategy 81, when youcreate a sales orders, the system creates a planned order for repetitive manufacturingand with strategy 83, it creates a network for engineer-to-order production.

Order processing is carried out using the tools available in production control.Delivery is made in Sales and Distribution.

The total confirmation date depends on the date of the component which is availablelast. The confirmation quantity is derived from the available quantity of thecomponent with the lowest confirmed quantity on the requirements date.

Assembly processing can either be carried out statically (one assembly order per salesorder item) or dynamically (several assembly orders per sales order item). Dynamicprocessing enables you to execute partial deliveries. In this case, however, the directreference to the sales order is lost.



Figure 44: Changes in Assembly Processing

Schedule lines are automatically changed in the sales order.

Changes have an effect on the assigned production order until an operation has beenconfirmed or until the order header has the status deleted, locked, or technicallycompleted.



Exercise 5: Planning Without FinalAssembly

Exercise ObjectivesAfter completing this exercise, you will be able to:� Explain the functions of planning without final assembly� Monitor consumption between planned independent requirements and customer

requirements� Explain the purpose and the characteristics of planned orders in the planning

segment

Business ExampleTo be able to respond more quickly to sales orders, Precision Pumps Inc. would like tomanufacture assemblies for pumps in advance and place them in stock. Only when asales order is received should the pumps be assembled in make-to-order production.

Hint: Caution! In order to gain a clearer overview in the following exercises,delete old planning data at this point:

1. Call the current stock/requirements list for material R-F1## (transactionMD04). Choose Details of element for a planned independentrequirement and then choose Change element. In the table for themaintenance of planned independent requirements, select all the rows(items) you have used and choose Delete item. Save and refresh the list.

2. Then carry out single-item, multilevel planning for material R-F1## inplant 1000 (transaction MD02).

3. Check the current stock/requirements list again, by calling it for materialR-F1## and, if necessary, refreshing it. There should only be plantstock.



Task 1:In plant 1000, you want to create a demand program that will plan a monthly quantityof 100 pieces in three months� time. First of all, choose the planning strategy planningwithout final assembly for the pump (VSE requirements, planning without finalassembly). To do this, proceed as follows:

1. Maintain the material master: In the material master for pump R-F1## in plant1000, enter strategy group 50 (planning without final assembly). As in thepreceding exercises, callMRP3 view using the transaction Change materialimmediately. Make the change in the corresponding field and save the change.

2. Create the planned independent requirements: To do this, use the transactionCreate Planned Independent Requirements again from the DemandManagement menu for the material R-F1## in plant 1000. Set the indicatorMfor monthly format in the planning period field in the initial screen for thetransaction.

On the Table screen in the row with material R-F1## in the month currentmonth + 3, enter a planned independent requirements quantity of 100 pieces.Select the row and proceed to the Schedule Lines tab page. Note the requirementstype VSE.

In the Period indicator for split field, enterW for week quantities and confirmthis using Enter so that the allocation takes effect. Save the planned independentrequirements.

Task 2:Carry out a planning run for material R-F1## in the form of single-item, multi-levelplanning.

1. Use the creation indicator that you used in the preceding exercises. Start theplanning run by confirming twice using Enter.

Task 3:Look at the planning results in the stock/requirements list.

1. Call the stock/requirements list for material R-F1## (plant 1000). Make surethat the planned independent requirements quantities and the planned orders theybelong to are listed in a separate planning segment.

Doubleclick (Additional data for element) to check whether these planned orderscan be converted into production orders and explain this:

_____________________________________________________Continued on next page



_____________________________________________________

2. Look at the current stock/requirements list for assembly R-B2## (the flywheel)in plant 1000.

Are these planned orders also taken up in a planning segment? Are theyconvertible? (Give a reason)

______________________________________________________

______________________________________________________

______________________________________________________

Task 4:A customer requirement with the desired date 3 days later than the date of the secondplanned independent requirement is received for the finished product.

1. Now enter a customer requirement of 10 pieces for material R-F1## in plant1000 from the Demand Management menu. Make sure the requirements type isKEV (make-to-order production with consumption) and save your entries.

Task 5:Carry out a new MRP run for material R-F1##, plant 1000 in the form of single-item,multi-level planning.


Task 6:Call the current stock/requirements list for material R-F1## in plant 1000 and, ifnecessary, refresh the list.

1. What has happened?

____________________________________________________________________________________________________________

______________________________________________________

______________________________________________________

2. Can the procurement element for the customer requirement be converted?

______________________________________________________



Solution 5: PlanningWithout Final AssemblyTask 1:In plant 1000, you want to create a demand program that will plan a monthly quantityof 100 pieces in three months� time. First of all, choose the planning strategy planningwithout final assembly for the pump (VSE requirements, planning without finalassembly). To do this, proceed as follows:

1. Maintain the material master: In the material master for pump R-F1## in plant1000, enter strategy group 50 (planning without final assembly). As in thepreceding exercises, callMRP3 view using the transaction Change materialimmediately. Make the change in the corresponding field and save the change.


2. Create the planned independent requirements: To do this, use the transactionCreate Planned Independent Requirements again from the DemandManagement menu for the material R-F1## in plant 1000. Set the indicatorMfor monthly format in the planning period field in the initial screen for thetransaction.

On the Table screen in the row with material R-F1## in the month currentmonth + 3, enter a planned independent requirements quantity of 100 pieces.Select the row and proceed to the Schedule Lines tab page. Note the requirementstype VSE.

In the Period indicator for split field, enterW for week quantities and confirmthis using Enter so that the allocation takes effect. Save the planned independentrequirements.


Task 2:Carry out a planning run for material R-F1## in the form of single-item, multi-levelplanning.






Task 3:Look at the planning results in the stock/requirements list.

1. Call the stock/requirements list for material R-F1## (plant 1000). Make surethat the planned independent requirements quantities and the planned orders theybelong to are listed in a separate planning segment.

Doubleclick (Additional data for element) to check whether these planned orderscan be converted into production orders and explain this:

_____________________________________________________

_____________________________________________________

a) Can the planned orders be converted? The planned orders in theplanning segment have the order type VP (or IndR, respectively) andtherefore cannot be converted or changed (the Detail view does notoffer a pushbutton to convert the planned order into a productionorder or a change mode, for example). They merely serve to createdependent requirements at subordinate BOM levels.

2. Look at the current stock/requirements list for assembly R-B2## (the flywheel)in plant 1000.

Are these planned orders also taken up in a planning segment? Are theyconvertible? (Give a reason)

______________________________________________________

______________________________________________________

______________________________________________________

a) Planned orders for assembly R-B2##: Planned orders for assemblyR-B2## are not taken up in a planning segment. They have order typeLA (or Stck, respectively) and can be converted into production orders.The reason being that the individual/collective indicator in the materialmaster for the assembly has been set to collective requirement. Thisallows production of assemblies before a sales order is received.




Task 4:A customer requirement with the desired date 3 days later than the date of the secondplanned independent requirement is received for the finished product.

1. Now enter a customer requirement of 10 pieces for material R-F1## in plant1000 from the Demand Management menu. Make sure the requirements type isKEV (make-to-order production with consumption) and save your entries.


Task 5:Carry out a new MRP run for material R-F1##, plant 1000 in the form of single-item,multi-level planning.



Task 6:Call the current stock/requirements list for material R-F1## in plant 1000 and, ifnecessary, refresh the list.

1. What has happened?

____________________________________________________________________________________________________________

______________________________________________________




______________________________________________________


What has happened? The customer requirement received is managedin an individual customer segment. Consumption has occurredbetween the related quantity and a planned independent requirementfrom the planning segment. Due to the planning run, a procurementelement (planned order) has been created. This procurement elementis produced in make-to-order production and covers the customerrequirement. In addition, the planned order quantity that belongs tothe partially consumed planned independent requirement has beenadjusted.

2. Can the procurement element for the customer requirement be converted?

______________________________________________________

a) The planned order in the individual customer segment (order type KD(or Ord., respectively)) can be converted into a production order.



Lesson Summary

You should now be able to:� Use planning strategies for make-to-order production� Explain assembly processing


SCM240 Lesson: Enhancements for Demand Management

Lesson: Enhancements for Demand Management

Lesson OverviewThere are a range of enhancement functions available in planned independentrequirements management to ensure that the production planning process runssmoothly and consistently.


� Make demand management settings� Make an adjustment and reduce requirements

Business ExampleMost of the settings for Demand Management have already been made. You have toexecute several important functions to ensure it runs smoothly.

Figure 45: Overview: Several Special Planning Strategies

Numerous other planning strategies are available for planning a material.

The �special planning strategies� mentioned above can be treated as an optionalelement of the course.



Figure 46: Planned Independent Requirements Reduction

In general, planned independent requirements are reduced by goods issue postingsin SAP ECC inventory management. The assigned movement type must allowplanned independent requirements to be reduced, however. For each movementtype, you can define whether or not a requirements reduction should take place ininventory management (SAP ECC Customizing: Materials Management→ InventoryManagement and Physical Inventory→ Movement Types→ Copy, Change MovementTypes). The default movement types are preset.

Figure 47: Planning Strategies and PIR Reduction



The independent requirements of make-to-stock production, strategy 10 (requirementstype LSF) are reduced as a result of the goods issue. The oldest planned independentrequirement is reduced first, in accordance with the FIFO (first in first out) principleand using the requirement date. Future planned independent requirements arealso reduced by goods issues, providing the consumption mode and the forwardconsumption period allows this. With goods issue for a sales order, the requirementsare also reduced, provided that this has been set in the requirements class.

With strategy 30, the sales order requirements are reduced when withdrawals are madefor the sales order, the planned independent requirements are reduced by sales fromstock (similar to strategy 10).

With strategy 59, the planned independent requirements are reduced by the goodsissue for the production order for the finished product. You must backflush thematerial components.

With strategies 70 and 74, the assembly's planned independent requirements arereduced by the goods issue for a production order or cost center.

The corresponding movement type must allow the reduction of the plannedindependent requirements. In addition, the system only reduces the plannedindependent requirements for the requirements type that is controlled by the mainstrategy of the strategy group assigned to the material. Planned independentrequirements for the requirements types of the alternative strategies are not usuallyreduced by the material movements.



Figure 48: Adjusting the Planned Independent Requirements

The period of adjustment determines a period in which planned independentrequirements are not taken into account in the requirements calculation, but merelyhave an MRP-effect for customer requirements. However, the planned independentrequirements remain on the database (hide function).

You maintain the period of adjustment in working days in Customizing for theMRP group. The corresponding adjustment indicator defines whether the period ofadjustment points to the past or to the future. The adjustment indicator also specifieswhether the adjustment is valid for planned independent requirements for all strategiesor only for planned independent requirements that are planned using a strategy inwhich customer requirements and planned independent requirements are consumed.

The adjustment can be used to eradicate �planning errors�, for example. The periodof adjustment could therefore correspond to the period in which only the customerrequirements that exist up to now are to be covered, and no new ones are expected.



Figure 49: Reorganizing Planned Independent Requirements

During the adjustment, planned independent requirements that lie within the period ofadjustment are simply ignored in material requirements planning but remain on thedatabase. The aim of reorganization is to delete old planned independent requirementsfrom the database.

The reorganization takes place in 3 steps:

1. �Adjust requirements� (transaction MD47): Quantities that have not beenassigned before the specified reorganization key date (this date can also be in thefuture) are set to 0 and are flagged for reorganization.

2. Reorganize schedule lines (MD75): Schedule lines that have a quantity of 0before the key date are deleted from the database.

3. Delete history (MD76): The history can be deleted by determining a (further)key date.

As an alternative to the key date, you can maintain a reorganization period per plant(in the Customizing for Demand Management). This is calculated backwards from thecurrent date.

We recommend that you carry out reorganization periodically, for example, oncea month.



Figure 50: Settings for Material Requirements Planning

The Customizing settings for the requirements planning are basically controlled atthree levels:

� Material master� MRP group (Customizing step Carry Out Overall Maintenance of MRP Groups)� Plant parameters (Customizing step Carry Out Overall Maintenance of Plant

Parameters)

The MRP group is an organizational object that is used to assign certain controlparameters for MRP to a group of materials. This includes the creation indicators forpurchase requisitions, schedule lines, the planning horizon, and so on. In Customizing,you can define the MRP group with these specific control parameters and assign thematerial to the corresponding MRP group in the material master record (MRP 1 view).

If a setting is possible on several levels, the setting in the material master takes priorityover the setting in the MRP group to which the material is assigned. The setting in theMRP group takes priority over the setting in the plant parameters.

Hint: Setting the Requirement Parameters:

In transactions MD61, 62, 63 (Create, Change, Display Planned IndependentRequirements), you can preset the requirements parameters. This function isnot advisable when using strategies (it overrides them). If you have to use it,you should do so only for displaying and changing data.



Figure 51: Customizing for Planned Independent Requirements Management

The planning strategy is an effective procedure when planning a material.

You define the planning strategy using a requirements type from planned independentrequirements management, a requirements type from sales order management, or byeffectively combining both requirements types.

The strategy group enables you to combine several planning strategies.



Figure 52: Strategy Groups and Planning Strategies

You can create the strategy groups in Customizing, in the work step Define StrategyGroup. A strategy group can contain a main strategy and up to seven alternativestrategies. You can also create the strategies in the Customizing for DemandManagement.

You assign the strategy group to the material in the material master record (MRP 3view) or the assigned MRP group.

When you create the customer requirements or the planned independent requirements,the system uses the customer requirements type or planned independent requirementstype defined in the main strategy of the strategy group assigned to the material. Youcan do this provided that the requirements type is not defined by user parametersor manual entry when creating the planned independent requirements or customerrequirements (sales order). You can determine the requirements types that can be usedfor a material in the alternative strategies.

In the sales order, you can access the customer requirements type in the sales orderitem in the Procurement view.

You can also determine the customer requirements type from the item type of thesales order if no strategy group has been assigned to the material (in CustomizingSales and Distribution, in the work step Determination of Requirement Types UsingTransaction).



Figure 53: Requirement Types and Classes

Generally, a planning strategy groups two requirements types - for plannedindependent requirements and for customer requirements.

The requirements type is assigned to one specific requirements class. Therefore,the requirements class represents a kind of �values list� for the settings of therequirements type. This means that any changes to the requirements type are made byway of the corresponding requirements class.

In the requirements class, you can control how the customer requirements are toconsume the planned independent requirements, for example.

The definition of the requirements class is made in the Customizing for DemandManagement for �planned independent� requirements classes and in the Customizingfor SD for �independent customer� requirements classes.

The requirements class controls functions relevant for sales order requirementsin Logistics. In the requirements class, you define the type of availability check,whether the requirement is relevant to MRP (No MRP field), whether consumptionis to be carried out and if so, which type (Assignment indicator field). The exacttype of assembly processing is defined using the customer requirements type forthe corresponding sales order.

Furthermore, you can define specifications that are used in cost accounting (such asthe settlement profile for settling a requirements class).





Exercise 6: Customizing

Exercise ObjectivesAfter completing this exercise, you will be able to:� Make and check the Customizing settings for the planning strategies

Business ExampleThe SAP person responsible for the project verifies the settings for strategy 50 inCustomizing and checks the MRP group settings.

Task 1:In Customizing for Demand Management, check which requirement types and classesare assigned to strategy 50 (planning without final assembly). (You can see thesesettings in Customizing, in the step Define Strategy.)

Hint: You only need display authorization to do this.

Plnd. Indep. Reqmnt Customer requirementsRequirements typeRequirements class

1. For which data object (requirements class or requirements type) do you make theindividual settings to determine how strategy 50 works.

_____________________________________________________

2. Name the Customizing paths for the work steps you need to modify this dataobject. Navigate to the relevant entries.

Planned independent requirement:

___________________________________________________________________________________________

Customer requirements:

______________________________________________________________________________________________




Task 2:When planning with strategy 50, customer requirements consume planned independentrequirements.

1. What values do the consumption or assignment indicators have in Customizing?

Requirements classConsumption orassignment indicator

Task 3:1. Which planning strategies are allowed by strategy group 50 (Planning without

final assembly)?

_________________________________________

Task 4:Finally, take a look at an MRP group. In Customizing, display the MRP group SCM2(Customizing step Carry Out Overall Maintenance of MRP Groups).

1. Which strategy group is maintained for plant 1000 in the MRP group SCM2?

______________________________________________________

2. Which values have been maintained for the planning horizon and therescheduling horizon in this MRP group?

Planning horizon: ______________________________________________________________________________

Rescheduling horizon: ________________________________________________________________



Solution 6: CustomizingTask 1:In Customizing for Demand Management, check which requirement types and classesare assigned to strategy 50 (planning without final assembly). (You can see thesesettings in Customizing, in the step Define Strategy.)

Hint: You only need display authorization to do this.

Plnd. Indep. Reqmnt Customer requirements

Requirements type

Requirements class

1. For which data object (requirements class or requirements type) do you make theindividual settings to determine how strategy 50 works.

_____________________________________________________

a) Menu path Customizing: Production→ Production Planning→ DemandManagement→ Planned Independent Requirements→ Planning Strategy→ Define Strategy

Plnd. Indep. Reqmnt Customer requirementsRequirements type VSE KEVRequirements class 103 045

Settings to activate strategy 50: You make the individual settings inthe requirements class. You then assign the requirements class to therequirements type.

2. Name the Customizing paths for the work steps you need to modify this dataobject. Navigate to the relevant entries.

Planned independent requirement:

___________________________________________________________________________________________




Customer requirements:

______________________________________________________________________________________________

a) Customizing path to modify the requirements classes:

Planned independent requirement: Customizing: Production→ ProductionPlanning→ Demand Management→ Planned Independent Requirements→ Requirements Types/Requirements Classes→ Maintain RequirementsClasses

Customer requirements: Customizing: Sales and Distribution→ BasicFunctions→ Availability Check and Transfer of Requirements→ Transferof Requirements→ Define Requirements Classes

Task 2:When planning with strategy 50, customer requirements consume planned independentrequirements.

1. What values do the consumption or assignment indicators have in Customizing?

Requirements classConsumption orassignment indicator

a) Consumption indicator or assignment indicator in Customizing: You maygather in the Customizing step Define Strategy.

Requirements class 103 045Consumption orassignment indicator

2 2

Task 3:1. Which planning strategies are allowed by strategy group 50 (Planning without

final assembly)?




_________________________________________

a) Planning strategies of strategy group 50:Planning strategies in strategygroup 50: As well as planning strategy 50 (standard case) you canalso use the strategies 40 and 20.

Menu path Customizing: Production→ Production Planning→ DemandManagement→ Planned Independent Requirements→ Planning Strategy→ Define Strategy Group

Task 4:Finally, take a look at an MRP group. In Customizing, display the MRP group SCM2(Customizing step Carry Out Overall Maintenance of MRP Groups).

1. Which strategy group is maintained for plant 1000 in the MRP group SCM2?

______________________________________________________

a) Menu path: Customizing: Production→ Material Requirements Planning→ MRP Groups→ Carry Out Overall Maintenance of MRP Groups

Strategy group for MRP group SCM2: Strategy group 40 (chooseStrategy Group in MRP group maintenance)

2. Which values have been maintained for the planning horizon and therescheduling horizon in this MRP group?

Planning horizon: ______________________________________________________________________________

Rescheduling horizon: ________________________________________________________________

a) Planning horizon and rescheduling horizon:

200 working days, 200 working days (choose Planning Horizon orRescheduling Horizon in the MRP group maintenance screen).



Lesson Summary

You should now be able to:� Make demand management settings� Make an adjustment and reduce requirements


SCM240 Lesson: Basics of the Availability Check

Lesson: Basics of the Availability Check

Lesson OverviewThe ATP check can be done from the sales order, for example. It is not directlyconnected with material requirements planning, but should be set in such a way that itcorresponds with it.


� Carry out ATP checks for sales orders

Business ExampleSales orders were created and included in material requirements planning. Afterwards,an availability check is carried out.

Figure 54: Availability Check in SAP ECC

The availability check can be used in a number of ways. It can be used in salesorders (but also in production orders or during goods movements). Therefore, whenyou create a sales order, for example, the system uses the ATP check to determinewhether there is enough stock available in the warehouse for the required material.The system can also check if receipts (for example, production orders and plannedorders) have already been planned by the requested date. If the answer is yes, thesales order can be confirmed.



As well as the availability check according to ATP, forecast planning offers anotheralternative (choose in the customer requirements class).

Figure 55: Availability Check for Sales Order with ATP Logic

When performing an availability check using ATP logic (Available-to-Promise), thesystem checks whether all issues are covered by existing receipts and whether openquantities from the receipts are still available to cover newly received issues. Theseopen quantities that have not yet been assigned are added together to give the ATPquantity.

In the availability check using ATP logic, the system checks whether the requirementquantities are covered by specially defined receipt and issue elements or by a specificstock. If you can confirm a quantity for the requirement date, this quantity is flaggedas confirmed in the requirement and the ATP quantity of the stock or receipt for thecomponents is reduced correspondingly. In the next availability check, you can onlyconfirm requirements for the amount of the remaining ATP quantity.

The ATP quantities are not calculated across planning segments and do not take anyperiods into account.



Figure 56: ATP in Planned Order

In addition to the classical SD application (sales orders, deliveries), there are alsoavailability checks in other areas:

� Planned orders from production planning (check for component availability, forexample, from the planned order detailed display)

� Production/process orders from production (check of the component availability,for example, when opening or releasing)

� Goods movements from Materials Management (missing part check, check forother confirmation situations)

Even though the aim of the ATP check for planned orders is to evaluate the componentavailability, from a technical point of view, it is not part of the requirements planningrun. During requirements planning, if there is a material shortage, the systemgenerates new procurement elements. However, this is based on the net requirementscalculation. Therefore, the result of a planned order ATP is not visible directly fromthe stock/requirements list. Instead, the result of material requirements planning isdisplayed there. The availability check for planned orders has specific Customizingsettings and you can use specific transactions (for example, the collective availabilitycheck to trigger and evaluate it (availability overview). In addition to the informationabout whether the open requirements can be confirmed on time, the timeframe and thevolume of the ATP quantities, that is, the quantities that are still available for otherrequirements, are also important for the evaluation.

In the collective availability check, you can use profiles to sort the planned ordersappropriately and then to trigger the check. You can reset an existing confirmationsituation and you can firm ATP-confirmed planned orders.

The result of a component check is transferred to the planned order header in the formof the confirmed quantity and the order confirmation date.



Figure 57: Settings for the ATP Check in SAP ECC

The checking group that is entered in the material master (MRP3 view) enablesmaterials to be grouped according to checking properties (Maintenance in Customizingfor SD).

You use the checking rules, which are set in Customizing for the respective businessapplication, to carry out different checks depending on the area of application (salesorder, production order, for example). The check can also be left out completely.

The connection between the checking group and the checking rules is made by enteringthis into the scope of check (Customizing for the application). Here you define thestocks, issues and receipts for which the combination is valid as check instructions.



Figure 58: Availability Check with Planned Independent Requirements

In the check against planned independent requirements, the system only checksagainst the open planned independent requirements quantities. This means that noATP quantities, receipts or stocks are included in the availability check.

The check against planned independent requirement assignments determines whethersufficient planned independent requirements have been planned to cover a customerrequirement.

In this check, the system uses the consumption mode (backward consumption in theexample above) and the corresponding consumption periods.

You can usually define the type of availability check to be performed in the customerrequirements class for the strategy. When using strategy 50, you can only carry outthe availability check against planned independent requirements. In strategy 60,when you process the sales order, you can check against the planned independentrequirements for the planning material.





Exercise 7: Availability Check for SalesOrder

Exercise ObjectivesAfter completing this exercise, you will be able to:� Perform an availability check in the sales order dialog� Evaluate the effects of the "Fix date" switch

Business ExamplePumps with material number R-F1## (## denotes your group number) are producedin plant 1000.

Perform an availability check from a sales order and interpret the results.

Task 1:A sales employee enters a sales order for the pump (material R-F1##, plant 1000):

1. In Sales and Distribution, navigate to Sales and call the transaction for creating asales order.

The order is a standard order (order type OR). Enter the following organizationaldata:

Sales Organization: 1000Distribution Channel: 10Division: 00Sales Office: 1000

Choose Enter to call the standard order overview screen and enter the followingdata here:

Sold-to party: 1000Ship-to party: 1000PO number: Sub_## (## = group number)




Required delivery date: 3 days later than the first VSEplanned independent requirementfor material R-F1## in plant 1000.

Material: R-F1##Order quantity: Quantity of the VSE previous

planned independent requirement+ 3 pc.

Choose Enter to confirm your entries and, if necessary, confirm the informationmessage with Enter.

2. The system displays the results of the availability check performed in thebackground in a new window (if the window does not appear automatically, youcan call it yourself from the sales order using the the seventh pushbutton fromthe left at the bottom of the screen).

Interpret the information. Differentiate in particular between the data providedfor material staging and delivery.

Is it possible to confirm the complete required delivery quantity with a one-timedelivery on the required delivery date?

___________________________________________________

Are there any alternatives?

___________________________________________________

___________________________________________________

___________________________________________________

Do not exit from this dialog.

3. To interpret the situation, open another session and call the stocks/requirementslist for material R-F1##, plant 1000.

Give a reason for the result of the previous availability check on the basis of thequantity and scheduling situation. What type of planning is this?

_____________________________________________________

_____________________________________________________

4. Were new procurement elements generated through the availability check?

_____________________________________________________




Do not exit the stock/requirements list.

5. In the first session (check dialog), ensure that the Fix date indicator is not set.Call the F1 help for this field.

With this setting, will a sales order appear with the required delivery quantity orthe confirmed quantity in the stock/requirements list?

______________________________________________________

In the check dialog, choose Complete Delivery and then save the sales order.

6. In the second session, refresh the stock/requirements list for R-F1##, plant1000 (F6 key). What quantity does the sales order return?

______________________________________________________

______________________________________________________

Task 2:The customer cancels their sales order without warning.

1. Go to change mode for the sales order that you have just entered. The easiestway to do this is to double-click the sales order in the stock/requirements list.Make a note of the sales order number from the stock/requirements list here:

__________________________________________________

Follow the menu path: Sales Document→ Delete and confirm and save yourchange.

Note: You can use this simple deletion method here because there are nofollow-on documents.

2. After this deletion, are the quantities originally used in the confirmation availablefor other sales orders?

___________________________________________________



Solution 7: Availability Check for SalesOrderTask 1:A sales employee enters a sales order for the pump (material R-F1##, plant 1000):

1. In Sales and Distribution, navigate to Sales and call the transaction for creating asales order.

The order is a standard order (order type OR). Enter the following organizationaldata:

Sales Organization: 1000Distribution Channel: 10Division: 00Sales Office: 1000

Choose Enter to call the standard order overview screen and enter the followingdata here:

Sold-to party: 1000Ship-to party: 1000PO number: Sub_## (## = group number)Required delivery date: 3 days later than the first VSE

planned independent requirementfor material R-F1## in plant 1000.

Material: R-F1##Order quantity: Quantity of the VSE previous

planned independent requirement+ 3 pc.

Choose Enter to confirm your entries and, if necessary, confirm the informationmessage with Enter.

a) Menu path: ECC Logistics→ Sales and Distribution→ Sales→ Order→ Create




2. The system displays the results of the availability check performed in thebackground in a new window (if the window does not appear automatically, youcan call it yourself from the sales order using the the seventh pushbutton fromthe left at the bottom of the screen).

Interpret the information. Differentiate in particular between the data providedfor material staging and delivery.

Is it possible to confirm the complete required delivery quantity with a one-timedelivery on the required delivery date?

___________________________________________________

Are there any alternatives?

___________________________________________________

___________________________________________________

___________________________________________________

Do not exit from this dialog.

a) On-time requirement coverage: This varies. An on-time staging of therequired delivery quantity is generally not possible. Only some of therequired pumps can be confirmed on the required date.

Alternatives: This varies. In general, the system provides a deliveryproposal (partial deliveries according to availability) or it proposes acomplete delivery when all the stock is available.

3. To interpret the situation, open another session and call the stocks/requirementslist for material R-F1##, plant 1000.

Give a reason for the result of the previous availability check on the basis of thequantity and scheduling situation. What type of planning is this?

_____________________________________________________




_____________________________________________________

a) Menu path: ECC Logistics→ Production→ MRP→ Evaluations→Stock/Requirements List

Reason: This scenario describes planning without final assembly. Anavailability check with ATP (against stocks and receipts) would not bevery relevant here since the receipt elements are restricted to VP/IndRplanned orders, which by definition cannot be used for production.In this case, checks are also carried out against consumption withplanning. This is set in the customer requirements class.

The first planned independent requirement within the planningsegment, which is found using backward consumption cannotcompletely consume the sales order. Therefore, due to consumptionmode 2, in the material master, forward consumption is used to searchfor late planned independent requirements.

4. Were new procurement elements generated through the availability check?

_____________________________________________________

Do not exit the stock/requirements list.

a) Have new procurement elements been generated? No. The planned ordersfor material R-F1## result from previous multi-level requirementsplanning (from the last exercise). The availability check in ECC doesnot itself generate new requirement coverage elements.

5. In the first session (check dialog), ensure that the Fix date indicator is not set.Call the F1 help for this field.

With this setting, will a sales order appear with the required delivery quantity orthe confirmed quantity in the stock/requirements list?

______________________________________________________

In the check dialog, choose Complete Delivery and then save the sales order.

a) Sales order quantity: The system displays a sales order using therequired delivery quantity and not the confirmed quantity.

6. In the second session, refresh the stock/requirements list for R-F1##, plant1000 (F6 key). What quantity does the sales order return?

______________________________________________________




______________________________________________________

a) Stock/requirements list: The sales order returns the required deliveryquantity.

Task 2:The customer cancels their sales order without warning.

1. Go to change mode for the sales order that you have just entered. The easiestway to do this is to double-click the sales order in the stock/requirements list.Make a note of the sales order number from the stock/requirements list here:

__________________________________________________

Follow the menu path: Sales Document→ Delete and confirm and save yourchange.

Note: You can use this simple deletion method here because there are nofollow-on documents.

a) Sales order number: This varies

2. After this deletion, are the quantities originally used in the confirmation availablefor other sales orders?

___________________________________________________

a) You delete the order: Yes, after the deletion, the confirmed quantitiesare released again.



Lesson Summary

You should now be able to:� Carry out ATP checks for sales orders


SCM240 Unit Summary

Unit SummaryYou should now be able to:� Use the planning strategy� Explain the interplay between planned independent requirements and customer

requirements� Use planning strategies for make-to-stock production� Use planning strategies for make-to-order production� Explain assembly processing� Make demand management settings� Make an adjustment and reduce requirements� Carry out ATP checks for sales orders


Unit Summary SCM240


SCM240 Test Your Knowledge

Test Your Knowledge

1. Which of the following parameters are determined by the planning strategy?Choose the correct answer(s).□ A Planned independent requirement type□ B Order type (production order or process order)□ C Customer requirement type□ D Procurement type

2. Changes to the planning situation automatically result in a new ATP availabilitycheck .Determine whether this statement is true or false.□ True□ False


Test Your Knowledge SCM240

Answers

1. Which of the following parameters are determined by the planning strategy?

Answer: A, C

The planning strategy determines the independent requirements type.

2. Changes to the planning situation automatically result in a new ATP availabilitycheck .

Answer: False

The ATP check and the material requirements planning are not technically linkedto one another. Both functions have to be consistent with one another froman organizational perspective.


Unit 3Executing Material Requirements

Planning

Unit OverviewOnce requirements exist in the system in the form of customer requirements orplanned independent requirements, it is the task of requirements planning to plan theserequirements with the correct quantities and in good time by creating procurementelements. Requirements planning can be single-level or multilevel (covering all BOMlevels). You can execute requirements planning for each material, for the entire plant,or for a particular planning scope.

The goal of requirements planning is, on the one hand, to create planned orders atfinished product level so that all of the planned independent requirements are coveredand, on the other hand, to procure the assemblies and components of these plannedorders on time using dependent requirements. Planning is executed using a top-downprocedure.

When planning a number of materials, for example a whole plant, you are oftenrequired to restrict the scope of planning to those materials for which there has beenan MRP-relevant change since the last planning run, and which therefore require anew planning run. This is done using a net change procedure, which controls thescope of planning using the corresponding entries in the planning file. You also wantto avoid having to plan a single material several times, for example if it appears inseveral BOMs. For this reason, a specific low-level code is assigned to each materialas the lowest BOM level at which the material appears in any BOM. Planning isdone from one low-level code to the next.

Single-item planning affects only one particular material and is therefore suitable forplanning critical resources, for example. There are various ways in which you caninfluence the planning result interactively. One of these possibilities is single-itemplanning in simulation mode, which makes it possible to analyze and executemultilevel planning for a particular material.

Finally, you need to prevent a planned result from being influenced by materialrequirements planning. You can use firming to do this.


Unit 3: Executing Material Requirements Planning SCM240


� Explain the principle of multilevel requirements planning� Go through the principle of external procurement and the document flow� Make the necessary settings in Customizing� Make the necessary settings in the master data� Trigger single-item planning� Trigger total planning� Interpret the planning file� Execute the MRP run in simulation mode� Firm a planned order in different ways� Use firming in requirements planning

Unit ContentsLesson: Overview and Concept of MRP... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .123Lesson: Prerequisites for MRP .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .127Lesson: Setting and Executing the MRP Run... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .132

Exercise 8: Planning File .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .149Exercise 9: Simulative MRP ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .159

Lesson: Firming ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .170Exercise 10: Firming .. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .177


SCM240 Lesson: Overview and Concept of MRP

Lesson: Overview and Concept of MRP

Lesson OverviewThe principle of multilevel requirements planning with external procurement isexplained here.


� Explain the principle of multilevel requirements planning� Go through the principle of external procurement and the document flow

Business ExampleRequirements exist for the materials. They are transferred to MRP.

Figure 59: Principles and Results of MRP

Material requirements planning takes current and future sales as its referencepoint. The planned requirement quantities trigger the MRP calculation. In MRP,the requirements elements include sales orders, planned independent requirements,material reservations, the dependent requirements created by exploding the BOM,and so on.



If the MRP run determines shortage quantities, the system creates procurementproposals: Purchase requisitions and planned orders are internal planning elementsthat can be changed, rescheduled, or deleted at almost any time.

With in-house production, the system creates planned orders for planning theproduction quantities. When planning is complete, planned orders can be convertedinto production orders.

With external procurement, the system either uses a planned order or uses a purchaserequisition directly to plan the external procurement quantity. When planning iscomplete, the planned order is converted into a purchase requisition, which issubsequently converted to a purchase order. Using the creation indicator for purchaserequisitions on the initial screen of the planning run, you control whether the systemimmediately creates purchase requisitions directly, or first creates planned orders.

If a scheduling agreement exists for a material and is relevant for MRP in the sourcelist, you can also create schedule lines directly using MRP. You control this using thecreation indicator for scheduling agreement delivery schedule lines on the initialscreen of the planning run.

The creation indicators defined on the initial screen of the planning run are validfor single-level and multilevel single-item planning. The indicators can be changedduring total planning and are overridden, if required, by the creation indicator definedfor each plant and MRP group in Customizing.

Figure 60: Multi-Level Material Requirements Planning


SCM240 Lesson: Overview and Concept of MRP

With in-house production, the system creates planned orders for planning theproduction quantities. In multilevel production, that is, when a finished productis made up of assemblies or components, the corresponding assembly grouprequirements are mapped by way of dependent requirements.

Dependent requirements enter the MRP for the assembly as requirements. Thisensures timely staging of the assemblies.

When planning is complete, planned orders can be converted into production orders.When this is done, the system transforms the dependent requirements of the plannedorder into production order reservations.



Lesson Summary

You should now be able to:� Explain the principle of multilevel requirements planning� Go through the principle of external procurement and the document flow


SCM240 Lesson: Prerequisites for MRP

Lesson: Prerequisites for MRP

Lesson OverviewTo prepare for MRP you need to make and check various settings in Customizingand in the master data.


� Make the necessary settings in Customizing� Make the necessary settings in the master data

Business ExampleThe settings required for carrying out material requirements planning are checkedand adjusted.

Figure 61: Prerequisites for MRP



In the Customizing activity �Activate MRP and Set Up Planning File�, you can specifyfor which plant an MRP run is to be carried out by activating material requirementsplanning. You can only make entries in the planning file once this indicator has beenset, which means that:

� When a material that is relevant for MRP is created, the system copies thematerial number to the planning file and flags it for planning,

� Whenever a change relevant to MRP is made, the system flags the materialfor planning.

If materials were created before the MRP run for a plant was activated, you mustcreate an entry in the planning file for all MRP-relevant materials in this plant. Thisfunction can only be executed in background processing. You trigger this function inthe work step Set up planning file in the Customizing activity Activate MRP and SetUp Planning File, which you can call directly from the MRP menu.

If these conditions are fulfilled, materials already in the planning file can be excludedfrom the MRP run using the MRP type in the material master (for example, by usingthe MRP type ND).

In addition, you can lock a material using the material status for MRP or generate awarning regarding materials planning.

Figure 62: Customizing for MRP



The settings for material requirements planning are controlled on three levels:

� Material master (MRP views)� MRP group (Customizing step Carry Out Overall Maintenance of MRP Groups)� Plant parameters (Customizing step Carry Out Overall Maintenance of Plant

Parameters)

If a setting is possible on several levels, the setting in the material master takes priorityover the setting in the MRP group to which the material is assigned. The setting in theMRP group takes priority over the setting in the plant parameters.

Figure 63: Controller

A company typically uses numerous different materials in the production andprocurement process. As a result, a corresponding number of material masters must becreated in the system. The majority of materials are planned in requirements planning.

The planning-relevant materials are typically assigned to the people responsible forplanning administration and procurement. In SAP ERP, the official name for thisrole is "MRP controller".

When you enter the MRP controller number (which must be defined in Customizingfor requirements planning) in the material master, this responsibility is updated in thesystem. An MRP controller number does not have to refer to just one person, insteadit can be used to group materials logically. Several MRP controller numbers can beassigned to one person.



You can use this relationship, for example, when you access specific material groups(for example, in the context of targeted planning) and for evaluations.



Lesson Summary

You should now be able to:� Make the necessary settings in Customizing� Make the necessary settings in the master data



Lesson: Setting and Executing the MRP Run

Lesson OverviewThere are various options available for carrying out the MRP run.


� Trigger single-item planning� Trigger total planning� Interpret the planning file� Execute the MRP run in simulation mode

Business ExampleYou can use different methods to execute the MRP run.

Setting and Executing the MRP Run

Figure 64: Executing Material Requirements Planning

You can execute the planning run at two levels: As total planning for a plant or foran individual material. You can execute a total planning run for several plants and/orMRP areas (planning scope).

You can execute a single-item planning run for one BOM level only (single-level) orfor all BOM levels (multi-level). Interactive planning of a material is also possible.


SCM240 Lesson: Setting and Executing the MRP Run

Multilevel single-item planning can also be executed for a Sales and OperationsPlanning (SOP) product group.

You can execute total planning online or as a background job.

Total planning for a plant encompasses all MRP-relevant materials for this plant andincludes the BOM explosion for materials with BOMs.

From the MRP menu, you can execute total planning online or as a background job.To execute the total planning run as a background job, select a report variant to restrictit to the relevant plant, and schedule the job.

You can use a user exit to restrict the total planning run to materials that fulfill certainfreely definable criteria. For example, you can select all materials for which aparticular MRP controller is responsible.

Figure 65: Cross-Plant Total Planning

The total planning run can be triggered for each plant, for example, as a backgroundjob with a variant for each plant to be planned. If, however, there are mutualdependencies (for example, due to stock transfer), plants may have to be plannedseveral times (plant 1000 in the slide).

It is therefore possible to group together several plants (or MRP areas) in the scopeof a planning run in a planning sequence and to plan on a cross-plant basis in a totalplanning run. The system takes mutual dependencies, such as those arising throughstock transfer, into account automatically (the situation displayed in the slide requires



that both plants 1000 and 1100 are entered in the scope of planning: The planningthen takes place in the suggested sequence of plant 1000, plant 1100 and, if necessary,in plant 1000 again).

You define the scope of planning for total planning in the Customizing activity DefineScope of Planning for Total Planning for Material Requirements Planning. If you haveactivated MRP with MRP areas, you can group together plants and MRP areas in aplanning scope. In particular, it is possible to plan all of the materials in an MRP area.

You can use the planning scope to execute a total planning run online or as abackground job for one plant, for several plants, for an MRP area, for several MRPareas in Material Requirements Planning, in master production scheduling, and inlong-term planning. The planning run with planning scope must always be startedwith parallel processing.

Figure 66: Parallel Processing in the Planning Run

When planning with planning scope, you must set the Parallel Processing indicator inthe planning run.

Parallel processing means that the planning run is divided into several independentwork packages that run parallel to each other in different sessions. You define thesessions in the Customizing activity Define Parallel Processing in MRP. You canaccess this activity directly from the MRP menu.



Advantages of parallel processing:

� Improved performance: if several computers or processors are available for thesesessions, the time required for a planning run can be reduced significantly.

� Robustness: The planning run continues even if a runtime error occurs fora material. This material is given a corresponding entry in the material list.(Without parallel processing, the planning run terminates and the remainingmaterials are not planned.)

The work packages are divided up by low-level code. The improvement inperformance is particularly noticeable if the BOMs have a wide structure, that is, ifthe individual elements in the BOM are made up of many components.

Figure 67: Low-Level Coding

The low-level code is the lowest level at which a material appears in any BOMstructure. The low-level code of a material is always higher than the low-level code ofall its predecessors in all the BOM structures.

The low-level code controls the planning sequence: The system plans the materialswith low-level code 0 first, then those with low-level code 1 and so on. All materialsare thus planned in the correct sequence in a planning run.

The low-level code is calculated and saved at client level during BOM maintenance.You can display the low-level code in the material master from the MRP 1 view bychoosing Information on material or in the planning file entry, provided that an entryfor that material exists in the planning file.



Figure 68: MRP Control Parameters

You need to specify the following control parameters for MRP when you start theplanning run:

� Processing key: You define the planning type as regenerative planning or netchange planning within the total horizon or within the planning horizon only.

� The Create purchase requisition and Schedule lines indicators are only relevantfor materials that are procured externally. You can determine whether or inwhich period purchase requisitions and schedule lines are required as a result ofthe planning run.

� You can determine further whether the planning run is to generate MRP lists.It is possible to have the system create MRP lists only when certain exceptionmessages are issued (you define the exception messages that are to triggerthe generation of an MRP list in the Customizing activity �Define and GroupException Messages�).

� With the planning mode, you define whether the existing planning data shouldsimply be adjusted, whether BOMs and routings should also be re-exploded, orwhether the existing (unfirmed) plan should be deleted and re-scheduled fromthe very beginning again (caution - performance).

You can also set the creation indicator in the MRP group for purchase requisitions,scheduling agreement schedule lines and MRP lists. The materials assigned to thisMRP group are then planned accordingly in the total planning run.



Figure 69: Scope of Planning Run

With regenerative planning, the system plans all the materials in a plant. Thisis useful for the first planning run and also during day-to-day operation of theplant if data consistency cannot be guaranteed due to technical errors. During theday-to-day operation of a plant, it usually makes sense (particularly with a largenumber of materials) to execute MRP for only those materials which have undergoneMRP-relevant changes (for example, due to goods issues, new sales orders or changesto the BOM structure). Due to it short runtime, net change planning (which is used toplan only these materials), allows you to execute the planning run at short intervals,so that you always have the current planning result. With net change planning in theplanning horizon, the system only takes into account changes that are within theplanning horizon. The system only plans materials to which an MRP-relevant changehas been made within the planning horizon. In addition, the materials are only plannedwithin this horizon. You set the planning horizon as a plant or MRP group parameterin MRP Customizing. The planning horizon should include at least the time periodin which sales orders are received. The delivery times and total lead times for thematerial should also be contained in this horizon. You specify the type of planningrun to be used in the �Processing Key� field on the initial screen. With single-itemplanning, you can only choose between net change planning (NETCH) or net changeplanning in the planning horizon (NETPL). With total planning, you can also selectthe NEUPL key to determine that all materials in the planning file are to be planned.



Figure 70: Planning File and MRP (1)

The planning file contains all of the materials relevant to MRP for each plant.

Net change planning only plans those materials that have been subject to a changerelevant to MRP. Changes relevant to MRP lead to a planning file entry being createdspecific to the plant and material. Examples of MRP-relevant changes include changesto the procurement type, changes to the operation times, and also creation of salesorders, dependent requirements, stock changes, and so on.

The respective entries in the planning file are made automatically by the businessapplication of the system. They can, however, also be made manually from the MRPmenu in individual cases. (When doing this, you should remember that a change in therouting does not automatically cause an indicator to be set in the planning file.)

The planning file entry contains information such as the following:

� The low-level code of the material,� Whether the material has been subject to an MRP-relevant change (NETCH

or NETPL indicator),� Whether the BOM has to be re-exploded or whether all existing order proposals

are to be deleted.

You can use the transaction Display planning file entry from the MRP menu to analyzethe contents of the planning file entry record for the materials.



Figure 71: Planning File and MRP (2)

During the planning run, the system checks every entry for a material in the planningfile.

� With regenerative planning, the system plans all materials contained in theplanning file without taking the indicators into account.

� With net change planning, the system only plans those materials that have beenflagged with the �NETCH planning� indicator.

� With net change planning in the planning horizon, the system only plans thosematerials that have been flagged with the �NETPL planning� indicator.

Once the planning run has been executed, the entry in the planning file is automaticallydeleted. The NETCH planning and NETPL planning indicators are reset whenregenerative and net change planning is used. The system only deletes the NETPLplanning indicator for a net change planning run in the planning horizon.

The planning horizon is maintained in Customizing for MRP as a plant parameteror for each MRP group.

You can define whether a planning entry is to be retained or deleted if a terminationshould occur while planning a material. You can do this in the IMG activity �DefineError Processing in the Planning Run� in Customizing for MRP calculation bychoosing �Del. planning flag�. This determines whether or not the material is takeninto account in the next planning run.



Figure 72: Net Change Planning in the Planning Horizon

You can only restrict material requirements planning to the planning horizon if it isnecessary to accelerate MRP for performance reasons. Only those requirements withinthe planning horizon are then covered by goods receipts. If you only execute netchange planning in the planning horizon, the system does not plan those requirementsthat are outside the planning horizon.

It is important to note that, as time lapses, requirements may fall into the planninghorizon that have not yet been covered by goods receipts. As long as no other changesrelevant to MRP are made, these requirements will not be covered until the nextplanning run for the whole time axis (NETCH indicator). This kind of planning runshould therefore be carried out on a regular basis.

A further possibility for dealing with the problem shown in the slide is to set theRegular MRP indicator in Customizing for the MRP type of the material and toalso maintain the maximum MRP interval in the MRP group. An entry for thenext planning date is generated automatically in the planning file. The material isautomatically included in MRP by the time the MRP date has been reached at thelatest, irrespective of the other settings in the planning file.

In order to be able to plan the changes outside the planning horizon, you must carryout net change planning at larger intervals.



Figure 73: Executing the Planning Run Single-Item, Single-Level

During single-item, multilevel planning, the system explodes the material's BOM andcreates and plans the dependent requirements of the assemblies and components. Ifthe components also have BOMs, these are also exploded and the components areplanned. This is repeated until all BOM levels have been exploded. All materialsare planned according to the parameters entered in the initial screen of single-item,multilevel planning. Planning is carried out as top-down planning. During multilevelplanning, the MRP controller has the option of displaying and manually changing theplanning result of assemblies or components before planning is resumed.

During single-item, single-level planning, the system generates dependentrequirements for materials at the next BOM level. �Single-item, interactive planning�is available as a variant in which the system displays the current planning situationbefore the planning run can be triggered manually.

You can check and process planning results for single-item, single-level, or multilevelplanning before saving them (Display results before they are saved indicator in theinitial screen). The MRP controller is able to create, change, delete, and rescheduleprocurement proposals before planning is resumed.



Figure 74: Options in Interactive Planning

You have the following options for influencing the planning result interactively:

� Single-level planning, interactive: You plan on a single-level, the systemdisplays only the current planning result when you call the function, you triggerthe planning manually from the menu for single-item, interactive planning andsave the result when closing the function.

� Single-item, multi-level: Setting the Display results before they are savedindicator (the function can also be used for multi-level planning) has theadvantage that the results are not saved until they have been checked and, wherenecessary, changed by the MRP controller. The materials to be planned thisway are displayed as breakpoints, and you can choose at which point (material)you would like to stop. You are then able to display the planning result for thedesired breakpoint and change it before proceeding with further planning. Thechanges take immediate effect on subsequent planning.

If you do not set the Display results before they are saved indicator, the planningresults are automatically written to the database in the planning run. In addition,you have the option of checking the result for all planned materials directly atthe end of planning by selecting Display matl. list on the initial screen.

� Single-item, multi-level with the simulation mode indicator set: You can plan aplanned order on multiple levels.



Figure 75: MRP in Simulation Mode (1)

A simulation mode is available for single-item, multilevel planning (�Simulationmode� indicator on the initial screen). You can use this planning type to analyze and,if necessary, change the planning situation for a planned order on all BOM levels.

This example shows a BOM structure with a replenishment lead time of 20 days. Thistime period is eight days longer than the requirements date of the finished product,which lies in the future.

There is an eight day delay in the procurement of the finished product, when takingthe whole BOM structure into account. The procurement or production process forseveral assemblies or components should have already been triggered in order for therequirements date for the finished product to be met. In this situation, the systemgenerates an exception message Plan process according to schedule for the affectedprocurement proposals.




Simulative MRP performs a multilevel BOM explosion and schedules the procurementproposals in the same way as non-simulative MRP. Using the requirements date ofthe finished product as a starting point, the MRP run schedules backwards over allBOM levels. Procurement proposals with opening dates in the past are scheduledforward from the current date.

When scheduling problems arise (for example, with dates in the past), the systemcreates an exception message in all affected planned orders of the higher-levelmaterials. The time delay is also displayed. The system indicates the total numberof days that you are behind schedule as a result of the scheduling problems in thelower-level assemblies or components. This presupposes that you have not permittedthe start date to be in the past in Customizing.

You can use the evaluation tools to easily identify the procurement proposal whichcaused the time delay or exception message.

You initiate simulative planning by selecting the Simulation mode field in additionto the usual parameters on the initial screen for single-item, multilevel planning andchoosing Enter twice.

In simulative MRP, the system stores all of the procurement proposals from thewhole BOM structure in the main memory. The planning results can be checked andchanged by the MRP controller. You also have the option of carrying out planningagain without having to leave and re-enter the transaction.




You can analyze scheduling problems in simulative MRP by looking at the delay. Thedelay for planned order 3 of the finished product shows the number of days by whichthe procurement chain must be moved into the future, so that the start dates of all theplanned orders for the assemblies and components do not lie in the past.

The delays are calculated for each element as the time that the element is behindwith regards to the start date of the superior element in the BOM. The delay for theprocurement chain is the total of these individual delays. In our example, the delayis 8 days.

Delays stemming from the planned order for the finished product are not taken intoaccount. These delays only come about if the correct start date for the planned order,in relation to the requirements date, already falls in the past and there is already acorresponding exception message for this order.




In order to resolve problem situations, you can change the procurement elementsand repeat the planning process for the dependent BOM branches. In order that thechanges made to the planning process remain effective, you must set the �firming�indicator in the modified procurement element.

In the planning results, the MRP controller moves the planned order finish date ofthe finished product eight days into the future and firms the planned order. Finally,the MRP controller flags the planned order in the individual lines overview and thenchooses the �Execute planning run� function to start another planning run for thedependent BOM branches, specifically for this planned order. You do not need toexit the transaction to do this.




All changes are stored in the main memory and the results are only written to thedatabase when you save. Once you have accepted the planning results, all simulationresults are transferred from the main memory into the database and saved there. Ifyou do not want to accept the planning results and do not save them, the systemdiscards them.

During the simulation run, you can change all of the data in the database independentof the data in the main memory, since the database is not locked. However, you cannotexecute any subsequent data transfer from the database during simulative MRP, forexample, if a further requirement has been received by the system.





Exercise 8: Planning File

Exercise ObjectivesAfter completing this exercise, you will be able to:� Explain the relationship between the planning run and the planning file

Business ExampleThe project team familiarizes itself with the relationship between the planning runand the planning file. The team also needs to examine the effect of a change to theBOM and a change to MRP-relevant material master data.

Task 1:Analyze the relationship between the planning run and the planning file.

1. First, execute single-item, multilevel planning for R-F1##, plant 1000 (use thepredefined parameters to do this) and then display the planning file entry forthe material R-F1## in plant 1000 from the MRP menu.

Which of the following indicators are set?

Planning indicator NETCH ____ Planning indicator NETPL ____BOM explosion ____

2. Create a customer requirement:

Material: R-F1##Plant: 1000Requirements date: Today + 6 months (date in day format)Quantity: 50 pieces

Then select the planning file entry for R-F1## in plant 1000 again. Which ofthe following indicators are set now?





Give a reason for the answer by analyzing the planning horizon. Where inCustomizing can you set the planning horizon and what value is entered there?

______________________________________________________

______________________________________________________

Which value is relevant for material R-F1## in plant 1000? Why?

______________________________________________________

______________________________________________________

3. Carry out a single-item, multilevel planning run with net change planning forthe material R-F1## in plant 1000. Use the NETCH processing key. Then selectthe planning file entry for R-F1## in plant 1000.

Which of the following indicators are set now?


4. Enter an additional customer requirement as follows:

Material: R-F1##Plant: 1000Requirements date: Today +1 month (date in day format)Quantity: 60 pieces

Then select the planning file entry for R-F1## in plant 1000. Which of thefollowing indicators are set now?


5. Executemulti-level requirements planning as net change planning for materialR-F1## in plant 1000. Use processing key NETPL. Then select the planningfile entry for R-F1## in plant 1000.






Give a reason for the result:

______________________________________________________

______________________________________________________

6. Execute multilevel requirements planning for the material R-F1## in plant 1000with the processing key NETCH. Then check the indicators in the planningfile entry.


Task 2:Now execute a BOM change: Electronic turbo pump R-B4## is to be defined in futureas a quantity of 2 pieces in the BOM of pump R-F1## in plant 1000.

1. To do this, call transaction Material BOM - Change in the master data forproduction and enter the following parameters in the initial screen:

Material: R-F1##Plant: 1000Usage: 1

Choose Enter or the Item button to go to the item overview. There you changethe item for component R-B4## in the following way:

Item number: 0040Material: R-B4##Quantity: 2

Confirm with Enter. Save the BOM changes.

2. Check the effect of this change to the BOM on the planning file entry.





Planning indicator NETCH ____

Planning indicator NETPL ____

BOM explosion ____

3. Carry out multilevel requirements planning for material R-F1## in plant 1000again with the processing key NETCH and check the result again in the planningfile.



BOM explosion ____

Task 3:Analyze the effect of an MRP-relevant change to the material master. In the laststep, you executed a multilevel planning run. You have therefore planned all thecomponents.

1. Now select the planning file entry for assembly R-B4## in the plant. Which ofthe following indicators are set?



BOM explosion ____

2. Change the material master for the material R-B4## in plant 1000 by entering50 pcs as safety stock in the viewMRP 2. Save the material master.

Then select the planning file entry for R-B4## in plant 1000. Which of thefollowing indicators are set?



BOM explosion ____



Solution 8: Planning FileTask 1:Analyze the relationship between the planning run and the planning file.

1. First, execute single-item, multilevel planning for R-F1##, plant 1000 (use thepredefined parameters to do this) and then display the planning file entry forthe material R-F1## in plant 1000 from the MRP menu.

Which of the following indicators are set?



Menu path: Logistics→ Production→ MRP→ Planning→ PlanningFile Entry→ Display

Indicators set:

Planning indicator NETCH No Planning indicator NETPL NoBOM explosion No

2. Create a customer requirement:

Material: R-F1##Plant: 1000Requirements date: Today + 6 months (date in day format)Quantity: 50 pieces

Then select the planning file entry for R-F1## in plant 1000 again. Which ofthe following indicators are set now?





Give a reason for the answer by analyzing the planning horizon. Where inCustomizing can you set the planning horizon and what value is entered there?

______________________________________________________

______________________________________________________

Which value is relevant for material R-F1## in plant 1000? Why?

______________________________________________________

______________________________________________________


Indicators set:

Planning indicator NETCH Yes Planning indicator NETPL NoBOM explosion No

Planning horizon settings:

Menu path: Customizing: Production→ Material Requirements Planning→ Plant Parameters→ Carry Out Overall Maintenance of PlantParameters

Planning horizon in plant 1000: 100 working days

Menu path: Customizing: Production→ Material Requirements Planning→ MRP Groups→ Carry Out Overall Maintenance of MRP Groups

MRP group 0031 is entered in the material master of material R-F1##.

Planning horizon for MRP group 0031 in plant 1000: No horizonhas been defined.

If a planning horizon had been entered in the MRP group, thiswould have a higher priority than the planning horizon in the plantparameters.

3. Carry out a single-item, multilevel planning run with net change planning forthe material R-F1## in plant 1000. Use the NETCH processing key. Then selectthe planning file entry for R-F1## in plant 1000.







Indicators set:


4. Enter an additional customer requirement as follows:

Material: R-F1##Plant: 1000Requirements date: Today +1 month (date in day format)Quantity: 60 pieces

Then select the planning file entry for R-F1## in plant 1000. Which of thefollowing indicators are set now?


a) Indicators set:

Planning indicator NETCH Yes Planning indicator NETPL YesBOM explosion No

5. Execute multi-level requirements planning as net change planning for materialR-F1## in plant 1000. Use processing key NETPL. Then select the planningfile entry for R-F1## in plant 1000.







______________________________________________________

______________________________________________________

a) Indicators set:

Planning indicator NETCH Yes Planning indicator NETPL NoBOM explosion No

Reason: Planning occurs only within the planning horizon when youuse the processing key NETPL.

6. Execute multilevel requirements planning for the material R-F1## in plant 1000with the processing key NETCH. Then check the indicators in the planningfile entry.


a) Indicators set:


Task 2:Now execute a BOM change: Electronic turbo pump R-B4## is to be defined in futureas a quantity of 2 pieces in the BOM of pump R-F1## in plant 1000.

1. To do this, call transaction Material BOM - Change in the master data forproduction and enter the following parameters in the initial screen:

Material: R-F1##Plant: 1000Usage: 1

Choose Enter or the Item button to go to the item overview. There you changethe item for component R-B4## in the following way:




Item number: 0040Material: R-B4##Quantity: 2

Confirm with Enter. Save the BOM changes.

a) Logistics→ Production→ Master Data→ Bills of Material→ Bill ofMaterial→ Material BOM→ Change

2. Check the effect of this change to the BOM on the planning file entry.




BOM explosion ____

a) Indicators set:

Planning indicator NETCH Yes

Planning indicator NETPL Yes

BOM explosion Yes

3. Carry out multilevel requirements planning for material R-F1## in plant 1000again with the processing key NETCH and check the result again in the planningfile.



BOM explosion ____

a) Indicators set:

Planning indicator NETCH No

Planning indicator NETPL No

BOM explosion No




Task 3:Analyze the effect of an MRP-relevant change to the material master. In the laststep, you executed a multilevel planning run. You have therefore planned all thecomponents.

1. Now select the planning file entry for assembly R-B4## in the plant. Which ofthe following indicators are set?



BOM explosion ____

a) Indicators set:



BOM explosion No

2. Change the material master for the material R-B4## in plant 1000 by entering50 pcs as safety stock in the viewMRP 2. Save the material master.

Then select the planning file entry for R-B4## in plant 1000. Which of thefollowing indicators are set?



BOM explosion ____

a) Logistics→ Production→Master Data→Material Master→Material→ Change→ Immediately

Indicators set:



BOM explosion No



Exercise 9: Simulative MRP

Exercise ObjectivesAfter completing this exercise, you will be able to:� Execute the MRP run in simulation mode� In particular, analyze situations with scheduling problems due to the delay and

implement measures to correct the problem in simulation mode.

Business ExampleAs a member of the project team, you familiarize yourself with the functions ofsimulative material requirements planning.

Task 1:In the previous exercise, you created and planned a customer requirement of 60 piecesof the pump R-F1## for the date today + 1 month. This means that you fulfilled therequirement with a planned order.

Hint: If you did not carry out the previous exercise on the planning file entry,create the above mentioned customer requirement now (make sure that therequirement type is KEV) and then execute multi-level planning.

Note the change in the stock/requirements list:

1. Make a note of the customer requirement number:

______________________________________________________

2. Write down the number of the corresponding planned order:

______________________________________________________

Task 2:Analyze the planned order as far as the dates are concerned.

1. Was the planned order for the customer requirement created on time?

______________________________________________________

(Note that the availability date of a planned order always falls on a working day,which is not necessarily the case for the customer requirements date.)




2. What is the start date of this planned order?

______________________________________________________

What consequences does this have for procuring the components for this plannedorder?

_____________________________________________________

3. Execute the order report function from the stock/requirements list for thisplanned order. Based on this evaluation, do you foresee problems in fulfillingthe sales order?

_____________________________________________________

Task 3:Now execute single-item, multi-level planning in simulation mode for materialR-F1## in plant 1000. To do this, select the Simulation mode indicator in the MRPinitial screen.

1. Make sure that the indicator Also Plan Unchanged Components is set, and thatyou use planning mode 3 in this case.

Start the planning run by choosing Enter twice.

Hint: Do not exit the transaction.

Task 4:Evaluate the planning results: After you have executed multilevel requirementsplanning, display the planning results on the material overview screen.

Select the planning result for finished product R-F1## by choosing the function 1stmaterial.

1. Examine the planned order in the individual customer segment that you alreadyanalyzed above. Is a delay displayed for this planned order?

______________________________________________________

By how many working days is the planned order delayed due to the lower levelassemblies and components?

____________________________________________ working days




2. Select the planned order and click on the order structure button. Select theplanned order and choose the Expand Subtree button. Note down the twoprocurement elements that cause the longest delays in the following table:

MRP element Number of MRPelement

Material Delay (workingdays)

Return to the display of the Planning results: Individual lines for materialR-F1##.

Hint: Do not leave the transaction.

Task 5:Now reschedule the planned order into the future: Select the planned order youexamined and choose the Reschedule procurement proposal button. Using thedisplayed (availability) date of the planned order, postpone the planned order by thenumber of working days that was displayed as the delay time for the planned order(see above). Enter the appropriate new order finish date for the planned order inthe new field.

Hint: To help you do this, you can use F4 and the plant calendar in theReschDate field. The new end date is calculated as previous end date +delay time of planned order, calculated in working days.

Make sure that you do not use the current date as the starting point forrescheduling by mistake.

1. Make sure that the planned order is firmed. To do this, display the detail screenfor the relevant planned order by calling it from the list. Check whether theindicator is set in the Firmed field. Return to the list by choosing the Copyprocurement proposal button.





Task 6:Display the stock/requirements list for material R-F1## in plant 1000 in a parallelsession.

1. Is the changed end date displayed for the planned order that you have just edited?

________________________________________________________


________________________________________________________

Task 7:You should now execute planning for the planned order again: The assemblies andcomponents that lie below the planned order that you have rescheduled, have notyet been planned.

Return to the session with the simulation results. Select the planned order that youhave just processed and choose Execute planning run.

1. By how many working days is the planned order now delayed due to theassemblies and components?

____________________________________________ working days

2. Save the planning result (and exit the transaction).

Task 8:Call up the stock/requirements list for material R-F1## in plant 1000 again (ifnecessary, refresh the list).

1. Is the modified end date now displayed for the planned order you just edited?

____________________________________________________________


____________________________________________________________

____________________________________________________________

Task 9:Then call the stock/requirements list for R-F1##, plant 1000 and execute the �orderreport� function for this planned order.

1. Do the assemblies and components still show rescheduling messages?

____________________________________________________________



Solution 9: Simulative MRPTask 1:In the previous exercise, you created and planned a customer requirement of 60 piecesof the pump R-F1## for the date today + 1 month. This means that you fulfilled therequirement with a planned order.

Hint: If you did not carry out the previous exercise on the planning file entry,create the above mentioned customer requirement now (make sure that therequirement type is KEV) and then execute multi-level planning.

Note the change in the stock/requirements list:

1. Make a note of the customer requirement number:

______________________________________________________

a) Customer requirement number: Varies

2. Write down the number of the corresponding planned order:

______________________________________________________

a) Planned order number: Varies

Task 2:Analyze the planned order as far as the dates are concerned.

1. Was the planned order for the customer requirement created on time?

______________________________________________________

(Note that the availability date of a planned order always falls on a working day,which is not necessarily the case for the customer requirements date.)

a) Planned order on time: Yes, the planned order was created on time.

If the customer requirements date lands on a holiday or a weekend, theplanned order will have an availability date that is before the customerrequirements date.

2. What is the start date of this planned order?

______________________________________________________




What consequences does this have for procuring the components for this plannedorder?

_____________________________________________________

a) Planned order start date: Varies, about one week after the current date.

Consequences for procuring the components: The time available forprocuring the components is very tight. If the components are notalready in stock, there could be problems meeting the order date.

3. Execute the order report function from the stock/requirements list for thisplanned order. Based on this evaluation, do you foresee problems in fulfillingthe sales order?

_____________________________________________________

a) Problems foreseen: Yes, problems can be expected.

Procurement of the subordinate components occurs with procurementelements that contain exception messages.

Task 3:Now execute single-item, multi-level planning in simulation mode for materialR-F1## in plant 1000. To do this, select the Simulation mode indicator in the MRPinitial screen.

1. Make sure that the indicator Also Plan Unchanged Components is set, and thatyou use planning mode 3 in this case.

Start the planning run by choosing Enter twice.

Hint: Do not exit the transaction.





Task 4:Evaluate the planning results: After you have executed multilevel requirementsplanning, display the planning results on the material overview screen.

Select the planning result for finished product R-F1## by choosing the function 1stmaterial.

1. Examine the planned order in the individual customer segment that you alreadyanalyzed above. Is a delay displayed for this planned order?

______________________________________________________

By how many working days is the planned order delayed due to the lower levelassemblies and components?

____________________________________________ working days

a) Delay: Yes, a delay is displayed.

Length of the total delay of the planned order: Varies, around 15 workingdays.

2. Select the planned order and click on the order structure button. Select theplanned order and choose the Expand Subtree button. Note down the twoprocurement elements that cause the longest delays in the following table:






Return to the display of the Planning results: Individual lines for materialR-F1##.


a) Longest delay:



PLOrd Varies R-B3## Varies, around15 days

PLOrd Varies R-B4## Varies, around11 days

Task 5:Now reschedule the planned order into the future: Select the planned order youexamined and choose the Reschedule procurement proposal button. Using thedisplayed (availability) date of the planned order, postpone the planned order by thenumber of working days that was displayed as the delay time for the planned order(see above). Enter the appropriate new order finish date for the planned order inthe new field.

Hint: To help you do this, you can use F4 and the plant calendar in theReschDate field. The new end date is calculated as previous end date +delay time of planned order, calculated in working days.

Make sure that you do not use the current date as the starting point forrescheduling by mistake.

1. Make sure that the planned order is firmed. To do this, display the detail screenfor the relevant planned order by calling it from the list. Check whether theindicator is set in the Firmed field. Return to the list by choosing the Copyprocurement proposal button.






Task 6:Display the stock/requirements list for material R-F1## in plant 1000 in a parallelsession.

1. Is the changed end date displayed for the planned order that you have just edited?

________________________________________________________


________________________________________________________

a) Modified end date: No, the new date is not displayed.

Reason: Simulative requirements planning occurs in the main memory.As long as the planning run is not saved, the data in the databaseremains unchanged.

Task 7:You should now execute planning for the planned order again: The assemblies andcomponents that lie below the planned order that you have rescheduled, have notyet been planned.

Return to the session with the simulation results. Select the planned order that youhave just processed and choose Execute planning run.

1. By how many working days is the planned order now delayed due to theassemblies and components?

____________________________________________ working days

a) Total delay now: 0 working days

2. Save the planning result (and exit the transaction).


Task 8:Call up the stock/requirements list for material R-F1## in plant 1000 again (ifnecessary, refresh the list).

1. Is the modified end date now displayed for the planned order you just edited?

____________________________________________________________


____________________________________________________________Continued on next page



____________________________________________________________

a) Modified end date now displayed: Yes, the modified end date is nowdisplayed.

Reason: When you save the planning run, the planning results aresaved to the database.

Task 9:Then call the stock/requirements list for R-F1##, plant 1000 and execute the �orderreport� function for this planned order.

1. Do the assemblies and components still show rescheduling messages?

____________________________________________________________

a) Rescheduling messages for assemblies and components: No

(Only the exception message �Opening date in the past� appears)



Lesson Summary

You should now be able to:� Trigger single-item planning� Trigger total planning� Interpret the planning file� Execute the MRP run in simulation mode



Lesson: Firming

Lesson OverviewWhen you firm planned orders you can protect a master production schedule fromchanges that are made automatically during material requirements planning.


� Firm a planned order in different ways� Use firming in requirements planning

Business ExampleNo more planning is to take place in the short term. To ensure this, the plannedorders are firmed.

Firming

Figure 80: Firming: Philosophy


SCM240 Lesson: Firming

You can use the firming period to protect the master production schedule for masterschedule items (in the MPS run) and for non-master schedule items (in the MRPrun) from being changed automatically in the near future and therefore stabilizeplanning. Within the firming period, which is defined individually for each material,procurement proposals are no longer changed automatically during the MRP run.

You should define the firming period on the basis of the total lead time of the material.

In the above example, the order finish date of the planned order, E1, lies one daybefore the end of the firming period. The system therefore treats it as firmed and doesnot automatically reschedule it. The master production schedule for the componentsis therefore stabilized.

You can define the firming period using the planning time fence or a manual firmingdate. Planned orders can also be firmed and unfirmed manually.

The system will draw your attention to any possible changes to the master productionschedule in the form of an exception message in the MRP list. It is then up to theMRP controller to process these changes.

Figure 81: Firming a Planned Order

If a planned order is changed manually, the system automatically sets the firmedindicator for this planned order. This means that the header data of the planned orderwill remain unchanged in the next planning run.



If a component in a planned order is changed manually, the system also sets the firmedindicator for the components. This means that the components of the planned orderwill not be changed in the next planning run.

The firming indicators for the planned order or the components of the planned ordercan be changed manually.

If the planned orders are flagged as firmed through the definition of a firming periodin the stock/requirements list and the MRP list, this occurs independently of thefirming indicator for the planned order or its components.

By resetting the conversion indicator in the planned order, you can prevent the plannedorder being converted into a production order or purchase requisition.

Figure 82: Firming Period and Firming Types

The firming type determines how the procurement proposals (especially plannedorders and purchase requisitions) are to be firmed for the planning run and in whichorder they are to be scheduled within the firming period.

You specify the firming procedure to be used for each material using the the MRPtype. The firming type is defined in Customizing for the MRP type.

You can use firming for materials planned with both master production schedulingand material requirements planning. Corresponding MRP types are available for thisin the standard system.



Figure 83: Overview of Firming Types

� With firming type �0�, no firming period is effective.� With firming types �1� and �2�, �automatically firmed� indicates that

any procurement proposals inside the firming period will now be firmedautomatically. They can therefore no longer be changed by the planning run,only manually. Likewise, all procurement proposals that are moved into theplanning time fence are firmed automatically.

� Firming type �1�: The planning run covers all new shortages that have occurredwithin the planning time fence at the end of the firming period.

� Firming type �2�: The planning run does not cover any new shortages that haveoccurred within the planning time fence.

� Firming type �3�: All procurement proposals that have not been manually firmedwithin the planning time fence are moved to the end of the firming period. Ifnew shortages occur within the firming period, they are covered at the end ofthe firming period.

� Firming type �4�: All procurement proposals that have not been manually firmedwithin the planning time fence are deleted. If new shortages occur within thefirming period, they are not covered.



Figure 84: Planning Time Fence

You can use the firming period to protect the master production schedule for a materialfrom being automatically changed in the near future. Procurement proposals withinthe firming period are no longer changed automatically during the MRP run. You candefine the firming period using the planning time fence. The system calculates thefinish date of the firming period on the basis of the MRP date.

You can specify the planning time fence either for each material in the material masterrecord or using the MRP group assigned to the material master. The length of theplanning time fence (in working days) should be based on the total lead time of thematerial. The planning time fence is only effective in connection with an MRP typethat has a firming type.

The firming type determines how the procurement proposals are firmed for theplanning run and how the dates are set within the planning time fence. Existingprocurement proposals which slip into the planning time fence are firmed automaticallywith firming type 1, as shown in the graphic, as soon as the date of the procurementproposal falls at least one day before the end date of the planning time fence.

The date for new purchase requisitions that were created within the planning time fenceand not created manually, is postponed to the final date of the planning time fencewith firming type 1. This means that these new procurement proposals are not firmed.



Figure 85: Manual Firming Date

You can also define the firming period by manually entering a date lying in the future- that is, the �manual firming date�. The manual firming date causes automaticfirming of the procurement proposals for materials with firming types 1 and 2 and liebefore the manual firming date.

Unlike the planning time fence, materials without a firming type (firming type 0)are treated like materials with firming type 1 as far as the manual firming date isconcerned. This means that the procurement proposals that lie before the manualfirming date are firmed, and new procurement proposals are moved to the manualfirming date. If you have set a manual firming date and a planning time fence is active,the firming period is determined by the end of the planning time fence, providing thisdate is later than the manual firming date. If the manual firming date is the later ofthe two dates, then this defines the firming period. You set and reset the manualfirming date in the stock/requirements list, in the planning results, or in interactivesingle-item planning. You can apply this function in material requirements planning,master production scheduling, or long-term planning.



Figure 86: Roll Forward Period

As well as the planning time fence, you can also maintain the roll forward period inthe MRP group. You can use the roll forward period to delete firmed but out-of-dateplanned orders in order to automatically update the production master schedule.

The Roll Forward indicator in Customizing for the MRP type controls whether or notthe roll forward mechanism is applied for a material.

All firmed planned orders with an end date within the roll forward period are deletedin the planning run and either new planned orders are created with suitable dates or,if the corresponding firming type applies, they are moved to the end of the planningtime fence.



Exercise 10: Firming

Exercise ObjectivesAfter completing this exercise, you will be able to:� Use firming to restrict requirements planning

Business ExampleSince some end products including pump R-F2## are frequently ordered by customersat short notice, you want to use firming to stabilize requirements planning in theshort term. New customer requirements do not automatically lead to new (on time)procurement elements.

Hint: In this exercise, you will work with material R-F2## in plant 1000,and not with R-F1##.

Task 1:In material R-F2## in plant 1000 on the MRP views 1 and 3, maintain a firminghorizon of 20 (working) days and the strategy group 40 and save your changes.

1. Ignoring any previous entries that have been made from the demand managementmenu for material R-F2## in plant 1000 create the following active VSFplanned independent requirements in planned requirements version 00 (useW (week) for the planning period):

Current week+ 1

Current week+ 2

Current week+ 3

Current week+ +4

Current week+ 5

20 10 10 10 10

Confirm any warning messages that may appear with Enter and save therequirements.




Task 2:Execute single-item, single-level planning (and not multi-level planning) usingthe preset parameters for material R-F2## in plant 1000 and call up the currentstock/requirements list for this material.

Menu path: Logistics→ Production→ Production Planning→ MPS→ MPS→Single-Item, Single-Level

1. Is a planning time fence active for this material (does the system display acorresponding time fence)? Why (not)?

______________________________________________________

2. Check that a planning time fence has been entered in the materialmaster R-F2## for the plant 1000. Why is no firming active?______________________________________________________

Task 3:Convert the material using the MRP type to planned MRP with fixing type 1 in orderto satisfy the production demands: To do this, go the the viewMRP 1 of the materialmaster R-F2## in plant 1000 and change the value of the fieldMRP type to P1.Save your changes. Take another look at the (refreshed) stock/requirements list formaterial R-F2## in plant 1000.

1. Does the system display a planning time fence? _____________________

2. To which date is the end of the planning time fence set?

______________________________________________________

Why are the planned orders within the planning time fence flagged as firmed?

______________________________________________________

3. Choose Display Element to display the header screen of a firmed planned orderinside the planning time fence. Is the firming indicator for planned orderset?_________________

Task 4:A sales order is received for 100 pieces of material R-F2##, delivering plant 1000.Requirements date is today's date + 3 weeks.

1. From the demand management menu, create a corresponding customerrequirement (use the data specified for this customer requirement) and thensave it.




2. Now call the stock/requirements list and analyze the (consumption) situation.For which date is there a material shortage, in other words, on which date doesthe quantity available for planning fall below zero?

______________________________________________________

Task 5:Execute interactive single-item planning for material R-F2## in plant 1000.

1. Call the transaction. When planning is called, the system reads the currentplanning situation. You have to trigger planning manually by choosing ExecutePlanning. After you have executed this function, you can see the planningresults that have, at this point in time, not yet been saved to the database.

2. On which date is the material shortage corrected, in other words, on whichdate is a planned order created so that the available quantity is greater thanor equal to zero?

________________________________

What is the number of this planned order?

_________________

3. Why is the shortage situation determined above not covered on time?

______________________________________________________

4. Select the planned order, and display the exceptions by choosing Element details(to the very left of the planned order row).

Go back, select the planned order and execute the function Reschedule Proc.Proposal (button to the bottom left).

What is the receipt due date for the planned order now?

______________________________________________________

Save the planning results.

Task 6:Call the stock/requirements list for material R-F2## in plant 1000.

1. View the planned order that you have rescheduled, the number of which youhave noted. Is the firming indicator set in this planned order?

____________




Give a reason for your result:

___________________________________________________

2. In the stock/requirements list, set themanual firming date for 3 working dayslater than the end of the planning time fence. Refresh the list.

Which firming date takes effect?

__________________

Task 7:

1. Increase the customer requirement that you created before by 15 pieces. Saveand then execute single-item, single-level planning again. Analyze the planningresult: When has an additional procurement element for the increased quantityof the sales order been scheduled?

__________________________________________________________

2. Then clean up material R-F2## as described at the beginning of exercise5. Note that first you must reverse the firmings (for the material in thestock/requirements list - you may have to do this manually).



Solution 10: FirmingTask 1:In material R-F2## in plant 1000 on the MRP views 1 and 3, maintain a firminghorizon of 20 (working) days and the strategy group 40 and save your changes.

1. Ignoring any previous entries that have been made from the demand managementmenu for material R-F2## in plant 1000 create the following active VSFplanned independent requirements in planned requirements version 00 (useW (week) for the planning period):

Current week+ 1

Current week+ 2

Current week+ 3

Current week+ +4

Current week+ 5

20 10 10 10 10

Confirm any warning messages that may appear with Enter and save therequirements.


Menu path: Logistics→ Production→ Production Planning→ DemandManagement→ Planned Independent Requirements→ Create

Task 2:Execute single-item, single-level planning (and not multi-level planning) usingthe preset parameters for material R-F2## in plant 1000 and call up the currentstock/requirements list for this material.

Menu path: Logistics→ Production→ Production Planning→ MPS→ MPS→Single-Item, Single-Level

1. Is a planning time fence active for this material (does the system display acorresponding time fence)? Why (not)?

______________________________________________________

a) Planning time fence active: No




2. Check that a planning time fence has been entered in the materialmaster R-F2## for the plant 1000. Why is no firming active?______________________________________________________

a) Reason: The effect of the planning time fence is controlled by the MRPtype in the material master. The MRP type PD in the material masterR-F2## determines that no automatic firming is to take place.

Task 3:Convert the material using the MRP type to planned MRP with fixing type 1 in orderto satisfy the production demands: To do this, go the the viewMRP 1 of the materialmaster R-F2## in plant 1000 and change the value of the fieldMRP type to P1.Save your changes. Take another look at the (refreshed) stock/requirements list formaterial R-F2## in plant 1000.

1. Does the system display a planning time fence? _____________________

a) Planning time fence displayed: Yes

2. To which date is the end of the planning time fence set?

______________________________________________________

Why are the planned orders within the planning time fence flagged as firmed?

______________________________________________________

a) End of the planning time fence: Varies (Today + 20 working days)

Planned orders within the planning time fence firmed: The plannedorders within the planning time fence are flagged as firmed, becausethe MRP type P1, which you have entered in the material master,defines that procurement proposals that fall within the planning timefence are firmed automatically.

3. Choose Display Element to display the header screen of a firmed planned orderinside the planning time fence. Is the firming indicator for planned orderset?_________________

a) Indicator for firming planned order: No




Task 4:A sales order is received for 100 pieces of material R-F2##, delivering plant 1000.Requirements date is today's date + 3 weeks.

1. From the demand management menu, create a corresponding customerrequirement (use the data specified for this customer requirement) and thensave it.


2. Now call the stock/requirements list and analyze the (consumption) situation.For which date is there a material shortage, in other words, on which date doesthe quantity available for planning fall below zero?

______________________________________________________

a) Date quantity available for planning below zero: The available quantityfalls below zero on the requirements date of the customer requirement.

Task 5:Execute interactive single-item planning for material R-F2## in plant 1000.

1. Call the transaction. When planning is called, the system reads the currentplanning situation. You have to trigger planning manually by choosing ExecutePlanning. After you have executed this function, you can see the planningresults that have, at this point in time, not yet been saved to the database.

a) No solution is required.

2. On which date is the material shortage corrected, in other words, on whichdate is a planned order created so that the available quantity is greater thanor equal to zero?

________________________________

What is the number of this planned order?

_________________

a) Available quantity greater than or equal to zero: The available quantity isgreater than or equal to zero at the end of the planning time fence.

Planned order number: This varies

3. Why is the shortage situation determined above not covered on time?




______________________________________________________

a) Why not on time: Behind the MRP type P1 is the firming type 1. Forfirming type 1, recent shortage situations within the planning timefence are not covered with a new procurement element until the endof the planning time fence. You can perform rescheduling manuallyat a later stage.

4. Select the planned order, and display the exceptions by choosing Element details(to the very left of the planned order row).

Go back, select the planned order and execute the function Reschedule Proc.Proposal (button to the bottom left).

What is the receipt due date for the planned order now?

______________________________________________________

Save the planning results.

a) Planned order date now: The planned order is now (normally) on therequirements date for the KSV customer requirement (Note: Due tothe relatively long in-house production time for the planned order in thefinished product, forward scheduling may be necessary. In this case, anexception message is attached to the planned order and the creation timeis delayed).

Task 6:Call the stock/requirements list for material R-F2## in plant 1000.

1. View the planned order that you have rescheduled, the number of which youhave noted. Is the firming indicator set in this planned order?

____________

Give a reason for your result:

___________________________________________________

a) Firming indicator set: Yes, the firming indicator in the planned orderheader is set.

Reason: The planned order was rescheduled manually in single-item,interactive planning. This manual change led to the firming indicatorbeing set.

2. In the stock/requirements list, set themanual firming date for 3 working dayslater than the end of the planning time fence. Refresh the list.




Which firming date takes effect?

__________________

a) Firming date: The date varies. The firming date that was set manuallytakes effect, because it is later than the end of the planning time fencefrom the material master.

Task 7:

1. Increase the customer requirement that you created before by 15 pieces. Saveand then execute single-item, single-level planning again. Analyze the planningresult: When has an additional procurement element for the increased quantityof the sales order been scheduled?

__________________________________________________________

a) Menu path: Logistics→ Production→ MRP→ Planning→ Single-Item,Single-Level

When an additional procurement element is scheduled: The date varies.The additional procurement element is scheduled for the end of theeffective planning time fence, that is, on the manual firming date thatyou entered previously.

2. Then clean up material R-F2## as described at the beginning of exercise5. Note that first you must reverse the firmings (for the material in thestock/requirements list - you may have to do this manually).




Lesson Summary

You should now be able to:� Firm a planned order in different ways� Use firming in requirements planning


SCM240 Unit Summary

Unit SummaryYou should now be able to:� Explain the principle of multilevel requirements planning� Go through the principle of external procurement and the document flow� Make the necessary settings in Customizing� Make the necessary settings in the master data� Trigger single-item planning� Trigger total planning� Interpret the planning file� Execute the MRP run in simulation mode� Firm a planned order in different ways� Use firming in requirements planning


Unit Summary SCM240



Test Your Knowledge

1. In material requirements planning you can calculate the dates for multi-levelproduction automatically.Determine whether this statement is true or false.□ True□ False

2. Which of the following settings have to be made in order to execute a materialrequirements planning run for a material?Choose the correct answer(s).□ A MRP activated in general□ B Material status allows MRP□ C MRP views have been created



Answers

1. In material requirements planning you can calculate the dates for multi-levelproduction automatically.

Answer: True

Material requirements planning for multi-level production is done by means ofbackward scheduling. This determines when the respective assemblies andcomponents have to be available so that the deadline for the finished productcan be met.

2. Which of the following settings have to be made in order to execute a materialrequirements planning run for a material?

Answer: A, B, C

MRP must be activated in Customizing in general (for each plant). Thematerial status can block a material for requirements planning globally or ona plant-by-plant basis. When you create MRP views the system generates anentry in the planning file.


Unit 4Technical Processes of Requirements

Planning

Unit OverviewTheMRP run consists of a number of individual steps that occur in the system one afterthe other. The planning result depends on the various settings for these different steps.

The first step is the net requirements calculation, which determines if a shortage willoccur for a certain material and if so, when. As well as the requirements, safety timeand quantity buffers can be included in the net requirements calculation.

In the next step, the lot-size calculation is made: The lot size for the procurementelement is determined on the basis of the shortage. You define the lot-size procedurein Customizing and assign it to a material in the material master record.

Since materials produced in-house are scheduled differently to those procuredexternally, you must define the procurement type before scheduling begins. Thescheduling itself is more complicated for materials produced in-house than for thoseprocured externally, since two scheduling types � basic date scheduling and leadtime scheduling � have to be coordinated.

The final step is the BOM explosion, once you have determined which BOM is tobe exploded with which change status. The selection of BOM and routing is usuallycontrolled by selection IDs, which are defined in Customizing.


� Understand the net requirements calculation� Work with safety stocks� Use the dynamic safety stock� Use the safety time� Use static lot-sizing procedures� Use lot-sizing by period


Unit 4: Technical Processes of Requirements Planning SCM240

� Use optimizing lot-sizing procedures� Make corresponding settings in Customizing� Use the procurement type for in-house production� Use the procurement type for external procurement� Use the quota arrangement� Describe scheduling for in-house production� Describe scheduling for external procurement� Understand multilevel backward scheduling� Make corresponding settings in Customizing� Set the parameters for selecting the BOM� Set the parameters for selecting the routing� Make corresponding settings in Customizing

Unit ContentsLesson: Net Requirements Calculation .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .193

Exercise 11: Net Requirements Calculation and Safety Stock ... . . . . . . . .205Lesson: Lot-Size Calculation .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .216

Exercise 12: Lot-Size Calculation ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .227Lesson: Procurement Types .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .234

Exercise 13: Procurement Type and Quota Arrangement .. . . . . . . . . . . . . . .237Lesson: Scheduling.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .245

Exercise 14: Scheduling... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .255Lesson: BOM and Routing Selection.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .267

Exercise 15: Routing and BOM Selection.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .281


SCM240 Lesson: Net Requirements Calculation

Lesson: Net Requirements Calculation

Lesson OverviewThe net requirements calculation is the first step that is carried out in materialrequirements planning. Various buffers are available to work round unexpectedbottlenecks.


� Understand the net requirements calculation� Work with safety stocks� Use the dynamic safety stock� Use the safety time

Business ExampleThe net requirements calculation is provided with safety stocks and safety times inorder to work round unexpected bottlenecks.

Figure 87: Overview: Net Requirements Calculation



The net requirements calculation is the first step in the material requirements planningrun and is executed at plant level or at MRP area level. During this process, the systemchecks whether the requirements can be covered by the available warehouse stockand fixed dispatched receipts. If shortages exist, the system creates a procurementproposal.

Figure 88: Net requirements calculation

In MRP, a net requirements calculation is executed in the planning run to determinewhether a material shortage exists for a certain material. In addition, stock andfixed receipts that currently exist within the rescheduling horizon (purchase orders,production orders, fixed purchase requisitions, and planned orders...) are comparedwith the safety stock and requirements. The result of this comparison is the quantityavailable for planning.

The stock available for planning combines the following stock from all storagelocations that belong to this plant or MRP area and are not excluded from MRP orplanned separately: unrestricted-use stock, stock in quality inspection, unrestricted-useconsignment stock and consignment stock in quality inspection.

In the Customizing activity Define Availability of Stock in Transfer/BlockedStock/Unrestricted Stock you can define for each plant whether the stock in transferfrom plant-to-plant stock transfers is included in the plant stock available for planningwithout stock transport orders, or the blocked stock, or the restricted stock for batches.



If the quantity available for MRP is less than zero, a material shortage exists. MRPreacts to material shortages by creating new procurement proposals, that is, bycreating purchase requisitions or planned orders, depending on the procurement type.The proposed procurement quantity results from the lot-sizing procedure that is setin the material master.

Figure 89: Net Requirements Calculation Time Line

The quantity available for planning consists of stock available for planning and thefixed receipts (purchase orders, production orders, firmed planned orders, firmedpurchase requisitions, and so on) minus the safety stock and the requirements. This iscalculated for every requirements date along the time axis. If the quantity availablefor planning is less than zero, a material shortage exists.

If there is a material shortage, the system determines the net requirement (shortagequantity).

The lot-size calculation is executed on the basis of the net requirements and acalculation is made for a procurement proposal (planned order, purchase requisition,or schedule lines).



Overview: Quantity and Time Buffers

� Safety stock� Safety stock partially available� Dynamic safety stock� Safety time

There are two types of buffer that you can plan in order to take into accountuncertainties in the development of demands:

� Quantity buffer: Safety stock, partially available safety stock, dynamic safetystock

� Time buffer: Safety time

Figure 90: Safety Stock

For every requirement for which the available stock for planning is insufficient, thesystem creates a procurement element in order to procure (at least) the quantity thatthe available stock for planning is unable to cover.

You can define the safety stock level per plant in the MRP 2 view of the materialmaster or per MRP area in the MRP area segment. Safety stock reduces the stockavailable for planning.

When the inventory is lower than the defined safety stock level, the system replenishesthe safety stock during the planning run. Note that this is also the case if the safetystock is only slightly below the defined safety stock level.



This type of safety stock is independent of the requirement quantities and is thereforestatic.

The safety stock is displayed in a separate line in the stock/requirements list and inthe MRP list.

Figure 91: Safety Stock Partially Available

You can define the proportion of safety stock that is available for planning for eachMRP group in the Customizing activity Define Safety Stock Availability. It is definedas a percentage of the safety stock level that is specified in the material master.

A new order proposal is not created until stock falls below the available portion ofsafety stock. This order proposal replenishes stock up to (at least) the safety stocklevel. This means that no individual order proposals are created for very small materialshortages. This reduces the amount of administrative work and planning.



Figure 92: Dynamic Safety Stock (1)

Using the range of coverage calculation, you can determine a dynamic level of safetystock that is oriented to requirements.

During every planning run, the system checks whether the available quantity is belowthe minimum stock level. If this is the case, the system creates an order proposal inorder to increase the available quantity to at least the target stock level (dynamicsafety stock).

If the maximum stock level is exceeded, the quantity is adjusted as long as a firmedprocurement proposal is not involved. The system issues an exception message forfirmed procurement proposals.

Any additional defined static safety stock and the dynamic safety stock are addedtogether.




The dynamic safety stock is calculated on the basis of the average daily requirementsand therefore automatically adjusts itself to changes in demand. The dynamic safetystock is calculated using the following formula: average daily requirements x targetrange of coverage.

In the Customizing activity Define Range of Coverage Profile (Dynamic Safety Stock)you can define the periodicity (week, month, or period according to the planningcalendar) and the number of periods for which the average daily requirements are tobe determined. The average daily requirement is calculated for each period.

In Customizing, you enter the minimum and target range of coverage as the numberof days in which a material must still be available or should still be available. Youcan also specify a maximum range of coverage. Multiplying the average dailyrequirements by the values for the minimum, target, and maximum range of coveragedefined in Customizing results in the minimum, target, and maximum stock.

During the planning run, the system checks whether the range of coverage (availablequantity divided by average daily requirement) is below the minimum range ofcoverage or above the maximum range of coverage.




You can enter the ranges of coverage (minimum, target, and maximum ranges ofcoverage) for up to three periods and you can maintain different ranges of coveragefor each period. If you have only maintained one period, the range of coverageis unlimited.

The values adopted by the individual parameters of the dynamic safety stock caneither be checked directly after single-item planning in the planning results or inthe stock/requirements list. In both evaluations, the dynamic safety stock data iscontained in the period totals display.

The following data is displayed: target range of coverage, minimum range of coverage,maximum range of coverage, target stock (dynamic safety stock), minimum stock.

The parameters for calculating the dynamic safety stock are stored in a range ofcoverage profile in Customizing for MRP, in the activity Define Range of CoverageProfile (Dynamic Safety Stock). You can access this activity directly from the MRPmenu under Environment - Current Settings.

The range of coverage profile is assigned to the material in the material master record(MRP data screen 2 or MRP area segment).




In addition to the three intervals for which you can determine different ranges ofcoverage, you can define fixed periods with a different range of coverage. This isuseful, for example, if a higher safety stock is to be planned because of increaseddemand in a particular period.

In the Customizing activity Define Range of Coverage Profile (Dynamic SafetyStock), you assign the periods with a deviating range of coverage to an existing rangeof coverage profile. You can define as many deviating periods as you wish (eachdefined by entering the start date and finish date) with various ranges of coveragefor one profile.



Figure 96: Safety Time

The safety time is a float after production (in contrast to the positive/negative leadtime in the component data of a BOM item). It is used to avoid material shortagescaused, for example, by an unreliable vendor.

The order proposals are brought forward by the number of working days specified inthe safety time. The actual requirements dates are not changed.

You define the safety time for each plant in the material master in the MRP 2 view orfor each MRP area in the MRP area segment.



Figure 97: Safety Time in Multi-Level Production

If a safety time has been defined at finished product level and also at assembly level,these two times are added together when planning the assembly. This may not bedesired. You can therefore determine for each material whether the safety time isvalid for all requirements or only for planned independent requirements (such assales orders).

The safety time indicator is used in the MRP 2 view for the material for each plant, orfor each MRP area in the MRP area segment to determine whether the safety time

� should not to be taken into account (indicator = blank),� should only to be taken into account for independent requirements (indicator = 1),� should be taken into account for all requirements (indicator = 2).



Figure 98: Period Profile for the Safety Time

You define the safety time in the material master for each plant (MRP 2 view) or foreach MRP area (in the MRP area segment). In addition, you can assign a safety timeperiod profile to a material for each plant (MRP 2 view). You can use the periodprofile to determine user-defined deviating safety times for particular periods. Thesecould be periods when a special marketing campaign is being used, for example.

You define safety time period profiles in the Customizing activity Define PeriodProfile for Safety Time/Actual Range of Coverage. You can access this activity directlyfrom the MRP menu under Environment - Current Settings.

You first create a period profile, to which you can then assign as many periods withdifferent safety times as you wish.

As of release ECC 5.0 you can define safety times with decimal fractions too. Forexample, you enter a figure of 3.1 days using 3 days safety time and 10% lead time(%). This means that 90% of the daily requirement quantity is deferred by 3 days andthe remaining 10% by 4 days.



Exercise 11: Net Requirements Calculationand Safety Stock

Exercise ObjectivesAfter completing this exercise, you will be able to:� Use dynamic safety stock as a quantity buffer and the safety time as a time buffer.

Business ExampleFollowing the production phase-in period, it appears that pump R-F1## will be soldin larger quantities. In future, the pump will be planned, assembled, and put intostorage so that sales orders can be fulfilled as quickly as possible. Uncertainties inplanning are to be covered by using dynamic safety stock. Any delivery delays onthe part of production caused by reorganizational measures should be interceptedusing the safety time.

Caution: In this exercise, you will be working with pump R-F1## and notwith R-F2##

Task 1:First, change the material master for pump R-F1## in plant 1000, if required:

1. In theMRP 3 view, enter strategy group 40, consumption mode 2 and 30 daysfor both the forward and backward consumption periods.

Task 2:Call the transaction for creating planned independent requirements for the materialR-F1##, plant 1000, version 00.

1. First, delete the row with the planned independent requirements that remainfrom the test phase for strategy 50. To do this, select the relevant row and deletethe item. Save your change and exit from the table.

2. Call the same transaction again and enter the following planned independentrequirements for the pump R-F1## in plant 1000:

Current month+ 3

Current month+ 4

Current month+ 5

Current month+ 6

90 70 120 100




Verify the requirements type VSF. Save your entries.

Task 3:Execute single-item, multilevel planning for pump R-F1## in plant 1000.

1. In the initial screen of the planning run, check the creation indicators:

Processing key NETCHCreate purchase requisition 2Scheduling agreement schedule lines 3Create MRP list 1Planning mode 1Scheduling 1Also plan unchanged components SelectDisplay results before they are saved Do not selectDisplay material list SelectSimulation mode Do not select

To start the planning run, press Enter twice.

2. Display or refresh the stock/requirements list for material R-F1## in plant1000. What is the available quantity at the end of the net planning segment (thisis the planning segment that contains the plant stock).

______________________________________________________

Task 4:Test the effectiveness of a static safety stock.

1. Add a safety stock of 80 pieces to the material master for R-F1## in plant 1000in theMRP 2 view and save this change.

2. Refresh the stock/requirements list. What is the available quantity at the endof the net planning segment (plant segment)?

______________________________________________________

Explain this shortage:

______________________________________________________




______________________________________________________

3. Execute multilevel requirements planning once more using the above settingsand explain the result after you have refreshed the stock/requirements listagain.

_____________________________________________________

______________________________________________________

Task 5:Due to fluctuating demand, the definition of static safety stock does not seem practical.Rather, the safety stock should adapt itself to the requirements situation. The range ofcoverage of the safety stock should be 5 days.

1. Change the material master R-F1## in plant 1000 as follows:

Delete the safety stock and enter the coverage profile 002 instead. Save thechange.

2. Open another session and check the coverage profile 002 in plant 1000 inCustomizing for MRP. What are the parameters for determining the averagedaily requirement and what values do these parameters have?

_______________________________________ ________________________________________________ ________________________________________________ _________

3. Execute single-item, multilevel planning using the settings listed above. Callthe stock/requirements list again. Go to the Period totals display (using thetotals symbol on the left margin of the stock/requirements list) and go to the�Months� tab page.

You notice that the available quantity differs from month to month.

What is the available quantity in the month current month + 4?

______________________________________________________

Use the table entries and your documents to reconstruct the way the calculationwas made:

______________________________________________________

______________________________________________________




______________________________________________________

______________________________________________________

Task 6:During the months current month + 5 and current month + 6 there are likely to bedelivery delays on the part of production due to various reorganization measures.

1. In the Customizing for MRP, enter the period profile P## for plant 1000 for thesafety time with the description �Period profile group ##� for the period firstday of current month + 5 to last day of current month + 6 with a safety timeof 3 working days. Save your entries.

2. Enter the new period profile P## in the material master for R-F1## in plant 1000in theMRP 2 view. Which additional entry is necessary to activate the periodprofile for planned independent requirements?

______________________________________________________

Enter safety time indicator 1.

3. Execute multi-level planning for material R-F1## in plant 1000 and thenrefresh the stock/requirements list.

In the two critical months, do the availability dates correspond to therequirements dates?

______________________________________________________

Explain the new situation:

______________________________________________________

______________________________________________________

Hint: To make the following exercises clearer, delete the entriesin the Coverage Profile and Safety Time Indicator fields in thematerial master for R-F1## in plant 1000 in theMRP 2 view. Save thematerial master. Then execute single-item, multilevel planning formaterial R-F1## in plant 1000. Call the stock/requirements list fromthe menu tree again. The availability dates should now correspond tothe requirements dates and the available quantity in the period totalsdisplay/Month tab page should be zero again.



Solution 11: Net Requirements Calculationand Safety StockTask 1:First, change the material master for pump R-F1## in plant 1000, if required:

1. In theMRP 3 view, enter strategy group 40, consumption mode 2 and 30 daysfor both the forward and backward consumption periods.

a) Change the material master from the stock/requirements list viaEnvironment→ Change Material or via

Menu path: Logistics→ Production→ Master Data→ Material Master→ Material→ Change→ Immediately

Task 2:Call the transaction for creating planned independent requirements for the materialR-F1##, plant 1000, version 00.

1. First, delete the row with the planned independent requirements that remainfrom the test phase for strategy 50. To do this, select the relevant row and deletethe item. Save your change and exit from the table.


2. Call the same transaction again and enter the following planned independentrequirements for the pump R-F1## in plant 1000:

Current month+ 3

Current month+ 4

Current month+ 5

Current month+ 6

90 70 120 100

Verify the requirements type VSF. Save your entries.


Task 3:Execute single-item, multilevel planning for pump R-F1## in plant 1000.

1. In the initial screen of the planning run, check the creation indicators:




Processing key NETCHCreate purchase requisition 2Scheduling agreement schedule lines 3Create MRP list 1Planning mode 1Scheduling 1Also plan unchanged components SelectDisplay results before they are saved Do not selectDisplay material list SelectSimulation mode Do not select

To start the planning run, press Enter twice.


2. Display or refresh the stock/requirements list for material R-F1## in plant1000. What is the available quantity at the end of the net planning segment (thisis the planning segment that contains the plant stock).

______________________________________________________

a) Quantity available at the end of the net requirements planning segment: 0pcs

Task 4:Test the effectiveness of a static safety stock.

1. Add a safety stock of 80 pieces to the material master for R-F1## in plant 1000in theMRP 2 view and save this change.


2. Refresh the stock/requirements list. What is the available quantity at the endof the net planning segment (plant segment)?

______________________________________________________

Explain this shortage:

______________________________________________________




______________________________________________________

a) Quantity available for planning at the end of the net requirements planningsegment: Minus 80 pcs.

Reason: The newly created safety stock flows into the net requirementscalculation as a requirement.

3. Execute multilevel requirements planning once more using the above settingsand explain the result after you have refreshed the stock/requirements listagain.

_____________________________________________________

______________________________________________________

a) The available quantity at the end of the net requirements planningsegment is once again 0 pieces. The requirement from the safety stockwas fulfilled through requirements planning.

Task 5:Due to fluctuating demand, the definition of static safety stock does not seem practical.Rather, the safety stock should adapt itself to the requirements situation. The range ofcoverage of the safety stock should be 5 days.

1. Change the material master R-F1## in plant 1000 as follows:

Delete the safety stock and enter the coverage profile 002 instead. Save thechange.


2. Open another session and check the coverage profile 002 in plant 1000 inCustomizing for MRP. What are the parameters for determining the averagedaily requirement and what values do these parameters have?




_______________________________________ ________________________________________________ ________________________________________________ _________

a) Menu path: Customizing: Production→ Material Requirements Planning→ Planning→ MRP Calculation→ Define Range of Coverage Profile(Dynamic Safety Stock)

Parameters for determining the average daily requirement:

Number of periods 3

Type of period length 3 (standard days)Days per period 20

3. Execute single-item, multilevel planning using the settings listed above. Callthe stock/requirements list again. Go to the Period totals display (using thetotals symbol on the left margin of the stock/requirements list) and go to the�Months� tab page.

You notice that the available quantity differs from month to month.

What is the available quantity in the month current month + 4?

______________________________________________________

Use the table entries and your documents to reconstruct the way the calculationwas made:

______________________________________________________

______________________________________________________

______________________________________________________




______________________________________________________

a) Available quantity in the month current month + 4: 25 pcs

Calculation method (example):

Planned independent requirements from 3periods:Period 1: Current month + 4: 70 pcsPeriod 2: Current month + 5: 120 pcsPeriod 3: Current month + 6: 100 pcsTotal: 290 pcs290 pieces divided by 3 x 20 days = 4.83 pc/day4.83 pc/day x coverage range 5 days = 24.16 pc24.16 pc rounds up to 25 pc.

Task 6:During the months current month + 5 and current month + 6 there are likely to bedelivery delays on the part of production due to various reorganization measures.

1. In the Customizing for MRP, enter the period profile P## for plant 1000 for thesafety time with the description �Period profile group ##� for the period firstday of current month + 5 to last day of current month + 6 with a safety timeof 3 working days. Save your entries.

a) Menu path: Customizing: Production→ Material Requirements Planning→ Planning→ MRP Calculation→ Define Period Profile for SafetyTime/Actual Range of Coverage

2. Enter the new period profile P## in the material master for R-F1## in plant 1000in theMRP 2 view. Which additional entry is necessary to activate the periodprofile for planned independent requirements?

______________________________________________________

Enter safety time indicator 1.

a) Additional entry necessary: Safety time indicator

3. Execute multi-level planning for material R-F1## in plant 1000 and thenrefresh the stock/requirements list.




In the two critical months, do the availability dates correspond to therequirements dates?

______________________________________________________

Explain the new situation:

______________________________________________________

______________________________________________________

Hint: To make the following exercises clearer, delete the entriesin the Coverage Profile and Safety Time Indicator fields in thematerial master for R-F1## in plant 1000 in theMRP 2 view. Save thematerial master. Then execute single-item, multilevel planning formaterial R-F1## in plant 1000. Call the stock/requirements list fromthe menu tree again. The availability dates should now correspond tothe requirements dates and the available quantity in the period totalsdisplay/Month tab page should be zero again.

a) In the two critical months, do the availability dates correspond to therequirements dates? No

Reason: Due to the period profile you entered with a safety time of 3working days, the availability dates are 3 working days before therequirements dates in the defined period.



Lesson Summary

You should now be able to:� Understand the net requirements calculation� Work with safety stocks� Use the dynamic safety stock� Use the safety time



Lesson: Lot-Size Calculation

Lesson OverviewThe lot.size calculation follows on from the net requirements calculation. A range ofdifferent methods are available for this.


� Use static lot-sizing procedures� Use lot-sizing by period� Use optimizing lot-sizing procedures� Make corresponding settings in Customizing

Business ExampleYou should set the lot-sizing procedures in such a way that the correct procurementquantities are scheduled at the correct times.

Lot-Size CalculationIn the net requirements calculation, the system determines the shortage quantities onthe respective requirements dates. These shortage quantities must be covered byreceipt elements. The system specifies the number of receipts during a planningrun in the lot-size calculation.

You can define how the lot sizes are calculated by selecting a lot-sizing procedurewhen maintaining the material master record (MRP 1).

The result of the lot-size calculation is the quantity to be produced or procured, whichyou can change and display in the order proposal.


SCM240 Lesson: Lot-Size Calculation

Figure 99: Overview of Lot-Sizing Procedures

There are three different groups of procedures in the lot-size calculation: staticlot-sizing procedures, period lot-sizing procedures and optimum lot-sizing procedures.

You can also enter restrictions in material master maintenance that the system takesinto account when forming the lot sizes:

� Minimum lot size (minimum procurement quantity below which the lot sizeis not allowed to fall)

� Maximum lot size (maximum procurement quantity for each lot)� Rounding value (the system rounds up to a multiple of the rounding value)� Rounding profile (used to create scaled rounding)

You define the different lot-sizing procedures in the Customizing activity �CheckLot-Sizing Procedure�. You assign the procedure to a material on a plant basis in thematerial master (MRP 1) or per MRP area in the MRP area segment of the material.



Figure 100: Static Lot-Sizing Procedures

If you select the lot-for-lot order quantity, an order proposal is created for the shortagequantity. If several requirements exist on one day that cannot be covered, the ECCsystem still only creates one order proposal covering the total shortage quantity onthis particular day.

If you use the the fixed/firmed lot size procedure, the system creates an order proposalfor the amount of the fixed lot size should material shortages occur. If this orderproposal does not cover the requirements sufficiently, the system creates as manyadditional order proposals for the same date, in this lot size, as are needed to coverthe requirements.

When replenishing to the maximum stock level, if a material shortage occurs, aprocurement proposal is created for the amount defined in the material master recordas the maximum stock level. However, if the shortage quantity for one day is largerthan the maximum stock level, the lot size is the same as the shortage quantity. Abalanced stock/requirements situation has priority over the lot-sizing procedure. Thesystem can also order an amount that replenishes stock up to the maximum level andcovers all requirements (when defining the lot-sizing procedure in transaction OMI4,enter the indicator 1 in the field Max. Stock Level).



Figure 101: Lot-Sizing by Period

In the period lot-sizing procedure, the system groups together the procurement ofrequirements quantities within a period in one lot size. The period lengths can be days,weeks, months or user-defined periods in accordance with the planning calendar.

You can choose the number of periods within which the procurement quantities are tobe grouped together. If the number is to be larger than 1, the number is entered in theNo. of periods field for the lot-sizing procedure in the ECC Customizing step �CheckLot-Sizing Procedure� for the lot-sizing procedure selected in the material master.

You can place the resulting receipt at the period start, period finish, or on the date ofthe first requirement, by maintaining the relevant value in the �Scheduling� field inthe ECC Customizing step Check Lot-Sizing Procedure.

If you have defined in Customizing that the availability date is at the start or finish ofthe period, the date of the planned order that is generated is moved accordingly.



Figure 102: Lot Size According to Planning Calendar

In the period lot-sizing procedure according to the planning calendar, the systemgroups together the procurement of the requirements quantities within a period definedby the planning calendar in one lot.

You assign a planning calendar to a material on a plant basis in the material master(MRP 2) or per MRP area in the MRP area segment.

You maintain a planning calendar (period division) in SAP ECC in the master data inthe MRP menu or in the Customizing IMG activity �Maintain Planning Calendar�.



Figure 103: Optimizing Lot-Sizing Procedures

Optimizing lot-sizing procedures optimize the total costs resulting from ordering(order and setup costs) and storage costs.

You enter the ordering costs in the material master (MRP 1) or, where applicable, inthe MRP area segment.

The system determines the storage costs based on the storage costs indicator, whichyou define in the Customizing activity �Check Lot-Sizing Procedure� by entering astorage cost interest rate. You assign the storage costs indicator to the material master(for each MRP area, if necessary). The formula for calculating storage costs is then:

Storage costs = Requirement x Price x Storage cost interest rate x Time in storage /100 / 365.

Based on the first material shortage date determined in the net requirements planning,the system groups together requirements until the optimum cost has been reached.The optimizing lot size procedures differ only by the type of the minimum cost:

Part period balancing: Sum of storage costs equals ordering costs

Least unit cost procedure: Minimum total costs per piece

Groff reorder procedure: Groups together requirements quantities in one lot untilthe rise in the average storage costs per period is greater than the reduction in theorder costs per period.



Dynamic lot size creation:Dynamic planning invoice: Groups together the requirementquantities in one lot until the additional storage costs are greater than the lot sizefixed costs.

Figure 104: Minimum Lot Size / Maximum Lot Size

You can influence the grouping of requirements into a lot by entering additionalrestrictions in the material master record. For example, you can define limitingvalues (minimum lot size, maximum lot size). During lot-size calculation, the systemtakes into account these limiting values. That is, the lot size is either rounded up tothe minimum lot size, or the system prevents the grouping of requirements to formmore than the maximum lot size.



Figure 105: Rounding

You can influence the grouping of requirements into a lot by entering additionalrestrictions in the material master record. By specifying a rounding value, forexample, the system will determine during lot-size calculation that the lot sizequantity is a multiple of an order unit (for example, pallet size, if the material is onlydelivered in complete pallets).

In addition to that, you can use rounding profiles. A rounding profile is used todefine settings for rounding up or rounding down the order proposal quantity intodeliverable units.

You define the rounding profiles in Customizing. A rounding profile consists of thethreshold value and the rounding value. The threshold value is the value from whichthe system rounds up to the value of the next deliverable unit. The rounding valueis the value to which the system should round up as soon as the threshold value isexceeded.

You can define several combinations of threshold and rounding values for a roundingprofile.

A simulation is available for checking the rounding profile Customizing settings.



Figure 106: Special Lot-Sizing Procedures

You can control the choice of lot-size procedure especially for make-to-orderproduction (lot-for-lot order quantity, lot-for-lot order quantity with rounding values,lot-sizing for short-term area).

By setting the splitting quota indicator in the Customizing for lot-size procedures, youcan distribute the procurement quantity across various sources. To do this, you mustset the quota arrangement usage indicator in the material master record (Purchasingor MRP 2 view). You maintain the portions of the various sources in the quotaarrangement in the master data for Purchasing.

You can set the Overlapping indicator for all lot-sizing procedures in Customizing inorder to distribute the order quantity into partial quantities. These quantities are notproduced at the same time, but rather in regular, overlapping intervals. Procurementproposals can overlap in the future and in the past. You also maintain the takt timeand, depending on the lot-size procedure, the maximum lot size or the rounding value.



Figure 107: Long-Term Lot Size

The purpose of the long-term lot size is to divide the time axis for MRP into ashort-term and a long-term area, enabling the lot-size calculation to be carried outusing different lot-sizing procedures in these two areas. Creating larger lots in thelong-term area has a particularly positive effect on performance.

It is therefore possible to receive a rough preview of the future master productionschedule in the long-term area and to have a more precise analysis in the short-termarea.

You maintain the settings for the long-term lot size, just as for the other lot-sizingprocedures, in Customizing for MRP in the IMG activity �Check Lot-SizingProcedures�. You can define the lot size that is to be used in the short-term periodand the lot size that is to be used in the long-term period, as well as the end ofthe short-term/beginning of the long-term periods using the key of the lot-sizingprocedure. You defined the length of the short-term area by entering the periodicity(for example, month, week) and the number of periods.

If a material is planned with short-term and long-term lot sizes, the period of validityof both lot-sizing procedures is determined during the planning run. The orderquantities in the short-term horizon are calculated using the lot size in the short-termarea. The system switches to the long-term lot size on the date from which thelong-term lot size is valid. To calculate this date, the system always rounds up to thebeginning of the next full long-term period.



Under certain circumstances, there is the danger that a material planned usinglong-term lot size may not be changed and may therefore not be included in newplanning when using NETCH or NETPL planning. The planning order would then beconverted in the long-term lot size. In order to prevent this from occurring, you canset the Recurring MRP indicator in Customizing for the MRP type of the material, andalso maintain theMax. MRP Interval in the MRP group. The material is then includedin planning after the maximum MRP interval has been processed and is plannedwith the short-term lot size, if required.



Exercise 12: Lot-Size Calculation

Exercise ObjectivesAfter completing this exercise, you will be able to:� Make the main settings for the lot-sizing procedure� Use the lot-sizing procedure

Business ExamplePump R-F1## is only to be planned in the short-term horizon, in which procurementactually occurs. Taking performance issues into account, the MRP controller shouldmake do with a preview at the aggregated level in the long-term horizon.

Task 1:First, determine which lot-sizing procedure is currently being used for planning in thematerial master for pump R-F1## in plant 1000.

1. ____________________________________________________________

Is this a static, periodic or optimizing lot-sizing procedure?

____________________________________________________________

Task 2:Now create your own lot-sizing procedure with which you can gain a summarizingpreview beyond a short-term horizon.

1. To do this, call the activity Check Lot-Sizing Procedure in Customizing forMRP.

TheMRP Lot Size field takes you to the defined lot-sizing procedures.

Call the lot-sizing procedure entered under task 1 point 1 by double-clicking on it.

Have the long-term lot size settings been maintained?

______________________________________________________

2. Choose the �Copy As...� pushbutton and enter your group number ## and thedescription �Exact lot size with preview group ##� as the name for the newprocedure.




In the period indicator for the long-term lot size field, enterM, and enter 3 inthe corresponding number of periods field to determine where the short-termperiod ends and the long-term period begins.

Choose the lot-sizing procedure P for period lot sizing for the lot size in thelong-term horizon, 3 as the number of periods and the lot size indicator M.

Press Enter, confirm any warning messages that may appear and then saveyour new procedure.

Task 3:Now plan your pump with the new lot-sizing procedure.

1. Call the material master for the pump R-F1##, plant 1000, and enter your newlycreated lot-sizing procedure.

In addition, choose amaximum lot-size of 20 pieces and save these changes.

2. Execute a multilevel planning run using the following settings:

Processing key NETCHCreate purchase requisition 2Scheduling agreement schedule lines 3Create MRP list 1Planning mode 3Scheduling 1Also plan unchanged components SelectDisplay results before they are saved Do not selectDisplay material list Do not selectSimulation mode Do not select

3. Evaluate the planning result using the stock/requirements list.

How is the result in the plant segment (net segment) attained?

______________________________________________________

______________________________________________________

______________________________________________________

Why are the make-to-order segments unaffected?




______________________________________________________

______________________________________________________

Task 4:You are, however, unsatisfied with the result and therefore call the material masteragain to reverse the changes.

1. In the material master for the pump R-F1##, plant 1000 set the exact lot-size EXagain and delete the maximum lot-size of 20 pieces.

2. Execute another multilevel planning run for the pump with the settings fromtask 3, point 2.

3. Verify the result by taking a look at the stock/requirements list, which you needto call from the SAP Easy Access menu again.



Solution 12: Lot-Size CalculationTask 1:First, determine which lot-sizing procedure is currently being used for planning in thematerial master for pump R-F1## in plant 1000.

1. ____________________________________________________________

Is this a static, periodic or optimizing lot-sizing procedure?

____________________________________________________________

a) Lot-sizing procedure: The pump is being planned with the exact lotsize EX.

Procedure type: The exact lot size is a static lot-sizing procedure.

Task 2:Now create your own lot-sizing procedure with which you can gain a summarizingpreview beyond a short-term horizon.

1. To do this, call the activity Check Lot-Sizing Procedure in Customizing forMRP.

TheMRP Lot Size field takes you to the defined lot-sizing procedures.

Call the lot-sizing procedure entered under task 1 point 1 by double-clicking on it.

Have the long-term lot size settings been maintained?

______________________________________________________

a) Long-term lot size maintained? No long-term lot size settings have beenmaintained.

2. Choose the �Copy As...� pushbutton and enter your group number ## and thedescription �Exact lot size with preview group ##� as the name for the newprocedure.

In the period indicator for the long-term lot size field, enterM, and enter 3 inthe corresponding number of periods field to determine where the short-termperiod ends and the long-term period begins.

Choose the lot-sizing procedure P for period lot sizing for the lot size in thelong-term horizon, 3 as the number of periods and the lot size indicator M.




Press Enter, confirm any warning messages that may appear and then saveyour new procedure.

a) Menu path: Customizing: Production→ Material Requirements Planning→ Planning→ Lot-Size Calculation→ Check Lot-Sizing Procedure

Task 3:Now plan your pump with the new lot-sizing procedure.

1. Call the material master for the pump R-F1##, plant 1000, and enter your newlycreated lot-sizing procedure.

In addition, choose a maximum lot-size of 20 pieces and save these changes.

a) Menu path: Logistics→ Production→ Master Data→ Material Master→ Material→ Change→ Immediately, MRP 1 view

2. Execute a multilevel planning run using the following settings:

Processing key NETCHCreate purchase requisition 2Scheduling agreement schedule lines 3Create MRP list 1Planning mode 3Scheduling 1Also plan unchanged components SelectDisplay results before they are saved Do not selectDisplay material list Do not selectSimulation mode Do not select


3. Evaluate the planning result using the stock/requirements list.

How is the result in the plant segment (net segment) attained?

______________________________________________________

______________________________________________________

______________________________________________________




Why are the make-to-order segments unaffected?

______________________________________________________

______________________________________________________


Interpretation of the results: In the short-term horizon (up to threemonths time) planning is done using the �Exact Lot-Size� procedure,taking a maximum lot size of 20 pieces into account. In the long-termhorizon that follows on from this, the requirement elements aregrouped in blocks of 3 months each and fulfilled by a sharedprocurement element (preview at aggregated level). The availabilitydate is the requirement date for the first requirement element toappear.

Make-to-order segments: When you made the settings for the lot-sizingprocedure, the �make-to-order lot-size� indicator retained the initialvalue �blank�. This means that the exact lot-size is used in themake-to-order segments, regardless of the procedure used in the netsegment. Consequently, with this setting, even the maximum lot-sizehas no bearing in make-to-order segments.

Task 4:You are, however, unsatisfied with the result and therefore call the material masteragain to reverse the changes.

1. In the material master for the pump R-F1##, plant 1000 set the exact lot-size EXagain and delete the maximum lot-size of 20 pieces.


2. Execute another multilevel planning run for the pump with the settings fromtask 3, point 2.


3. Verify the result by taking a look at the stock/requirements list, which you needto call from the SAP Easy Access menu again.




Lesson Summary

You should now be able to:� Use static lot-sizing procedures� Use lot-sizing by period� Use optimizing lot-sizing procedures� Make corresponding settings in Customizing



Lesson: Procurement Types

Lesson OverviewWhen you determine the procurement type you establish the form in which aprocurement proposal has to be scheduled.


� Use the procurement type for in-house production� Use the procurement type for external procurement� Use the quota arrangement

Business ExampleThe procurement type is determined for each material and included in materialrequirements planning. Quota arrangements are used if the procurement of a materialis to be distributed across several procurement sources.

Procurement TypeWhen determining a procurement proposal, the system checks whether the receipt isto be produced in-house or procured externally.


SCM240 Lesson: Procurement Types

Figure 108: Procurement Types

The procurement type is used to determine whether a material is to be producedin-house or procured externally.

The procurement type is predefined by the material type in Customizing for thematerial master and is defined in the material master record (MRP 1, Procurementtype field).

If the procurement type permits both in-house production and external procurement,material requirements planning starts with in-house production.

A procurement type other than in-house production or external procurement can beset using the special procurement key in the material master. You define the specialprocurement types in the Customizing activity �Define Special Procurement Type�;In doing so, special procurement types are assigned to a procurement type, whichdefines the procurement type more precisely.

In this section, we will concentrate on in-house production.



Figure 109: Quota Arrangement and Quota Maintenance

If a material is obtained from various sources of supply, the individual sources ofsupply can be provided with a quota arrangement. The quota arrangement specifieshow the receipts should be distributed amongst each source of supply. The quotarating determines which source of supply is next in line. The procurement quantitiesare then filled one after the other using the various sources of supply.

With a quota arrangement you can also define a preferred source of supply. Then onlythe remainder of a requirement quantity that exceeds the maximum release quantityassigned to the preferred source of supply is requested from an alternative source ofsupply (see the example in the graphic). The smallest periodicity for the maximumrelease quantity is a week (maximum release quantities per day can be realized byselecting the periodicity according to planning calendar and then creating a planningcalendar with day periodicity).

Each quota arrangement applies for a specific period of time. A quota arrangementitem is created within the period for every source of supply. Only continuous validityperiods can be defined for a material.

A quota arrangement may include external procurement or in-house production, aswell as various special procurement types. A source list entry is also necessary forexternal procurement, though theMRP-relevant indicator should be taken into account.

Using the quota arrangement usage indicator in the material master (Purchasing orMRP 2 views), you determine that a quota arrangement is used for a material. Youalso specify the business application areas in which the quota arrangement is usedand determine that the quota-allocated quantity is updated. You define the quotaarrangement usage indicator in Customizing for Purchasing.



Exercise 13: Procurement Type and QuotaArrangement

Exercise ObjectivesAfter completing this exercise, you will be able to:� Classify the effect of the procurement type� Work with quota arrangements

Business ExampleIn future, shaft R-B3##, plant 1000 is to be produced in-house. The amount producedfor each period will be determined by capacity restraints. Further demand can besatisfied through external procurement. To do this, you use the quota arrangementfunction.

Task 1:To test the effects of a quota arrangement in procurement, material R-B3## is used.Make the necessary settings to do this in the steps below.

1. Call the material master for the assembly R-B3##, plant 1000, and check theprocurement type. Which procurement type has been entered there and whatdoes this abbreviation mean?

______________________________________________________

2. Activate the quota arrangement for the material R-B3##, plant 1000, inrequirements planning by entering 3 in the Quota Arrangement Usage field inthe corresponding MRP view.

Choose Save.

Task 2:Carry out quota maintenance for the shaft from the master data menu in MaterialRequirements Planning.

1. Call the transaction to access the initial screen. The quota arrangement should bevalid until end of next year.

After you have done this, go to the item overview.

2. Now maintain the quota arrangement using the following constraints:




item 1:Procurement type: E (Internal procurement),Special Procurement type: E (In-house production).Maximum release quantity: 50 piecesNumber of periods for this release quantity: 1Periods: W (week)Priority for this item: 1

Hint: With item 1, make sure that you actually maintain settings for themaximum release quantity and not the maximum quantity.

item 2:Procurement type: F (External Procurement),

Special Procurement type: K (Consignment).

Priority for this item: 2Save the quota arrangement settings.

Task 3:Due to the planning activities that you carried out in the previous exercises for thefinished product R-F1##, dependent requirements also exist for the assembly R-B3##.The corresponding procurement elements are now to be generated again using thequota arrangement.

1. Start single-item, multi-level planning with the following settings:

Processing key NETCHCreate purchase requisition 1Scheduling agreement schedule lines 3Create MRP list 1Planning mode 3Scheduling 1Also plan unchanged components Select




Display results before they are saved Do not selectDisplay material list Do not selectSimulation mode Do not select

2. Call or refresh the stock/requirements list. Interpret the result by calling thequota arrangement again (pushbutton in the stock/requirements list).

How large are the total quantities that appear in the quota arrangement (quotaallocated quantity)?

Item 1:_____________________________________________

Item 2:_____________________________________________

Which procurement elements are generated for the dependent requirements andwhat is the reason for this?

______________________________________________________

______________________________________________________

______________________________________________________

3. The quota arrangement check has been completed. Deactivate the quotaarrangement for R-B3## (plant 1000) again.



Solution 13: Procurement Type and QuotaArrangementTask 1:To test the effects of a quota arrangement in procurement, material R-B3## is used.Make the necessary settings to do this in the steps below.

1. Call the material master for the assembly R-B3##, plant 1000, and check theprocurement type. Which procurement type has been entered there and whatdoes this abbreviation mean?

______________________________________________________


Indicator entered: X

Meaning: Both procurement types (in-house production and externalprocurement) are permitted.

2. Activate the quota arrangement for the material R-B3##, plant 1000, inrequirements planning by entering 3 in the Quota Arrangement Usage field inthe corresponding MRP view.

Choose Save.


Task 2:Carry out quota maintenance for the shaft from the master data menu in MaterialRequirements Planning.

1. Call the transaction to access the initial screen. The quota arrangement should bevalid until end of next year.

After you have done this, go to the item overview.

a) Menu path: Logistics→ Production→ MRP→ Master Data→ QuotaMaintenance

Material: R-B3##Plant: 1000




2. Now maintain the quota arrangement using the following constraints:

item 1:Procurement type: E (Internal procurement),Special Procurement type: E (In-house production).Maximum release quantity: 50 piecesNumber of periods for this release quantity: 1Periods: W (week)Priority for this item: 1

Hint: With item 1, make sure that you actually maintain settings for themaximum release quantity and not the maximum quantity.

item 2:Procurement type: F (External Procurement),Special Procurement type: K (Consignment).Priority for this item: 2Save the quota arrangement settings.


Task 3:Due to the planning activities that you carried out in the previous exercises for thefinished product R-F1##, dependent requirements also exist for the assembly R-B3##.The corresponding procurement elements are now to be generated again using thequota arrangement.

1. Start single-item, multi-level planning with the following settings:


Create purchase requisition 1Scheduling agreement schedule lines 3Create MRP list 1Planning mode 3




Scheduling 1Also plan unchanged components SelectDisplay results before they are saved Do not selectDisplay material list Do not selectSimulation mode Do not select


2. Call or refresh the stock/requirements list. Interpret the result by calling thequota arrangement again (pushbutton in the stock/requirements list).

How large are the total quantities that appear in the quota arrangement (quotaallocated quantity)?

Item 1:_____________________________________________

Item 2:_____________________________________________

Which procurement elements are generated for the dependent requirements andwhat is the reason for this?

______________________________________________________

______________________________________________________

______________________________________________________

a) Total quantities for items 1 and 2: Varies (for example, item 1: 370 pieces,item 2: 150 pieces)

Procurement elements: Planned orders and sometimes also purchaserequisitions are generated.

Reason: Depending on whether requirements of up to 50 pieces or moreappear in a planning interval (one week), either only a correspondingplanned order is generated (this means the requirement can besatisfied from production alone), or a purchase requisition is created aswell to cover the requirements that exceed the 50 pieces.The reason forthis lies in the quota arrangement settings you have defined and in thesettings for the planning run (always generate purchase requisitionsfor external procurement).




3. The quota arrangement check has been completed. Deactivate the quotaarrangement for R-B3## (plant 1000) again.


Quota arrangement usage: <blank>

Choose Save.

Hint: To deactivate the quota arrangement, all you have to do isset the Quota arrangement usage indicator in the material masterback to blank. You do not need to delete it.



Lesson Summary

You should now be able to:� Use the procurement type for in-house production� Use the procurement type for external procurement� Use the quota arrangement


SCM240 Lesson: Scheduling

Lesson: Scheduling

Lesson OverviewScheduling takes place for materials produced in-house and procured externally usingthe corresponding time elements. With products that are produced in-house, youshould take the supply planning across all BOM levels into account.


� Describe scheduling for in-house production� Describe scheduling for external procurement� Understand multilevel backward scheduling� Make corresponding settings in Customizing

Business ExampleFor scheduling in-house production you need to ensure that basic date schedulingand lead time scheduling run synchronously. Postponements that occur during theconversion to a production order should be kept as small as possible.

SchedulingDuring scheduling, the system calculates the start and finish dates of the procurementelements for materials produced in-house or externally. In order to calculate thesedates, the system uses the in-house production time for parts produced in-house andthe delivery time in the material master or purchasing info record for parts procuredexternally.



Figure 110: Scheduling Types in Production Planning

There are two methods for scheduling in production planning that are applieddifferently. If material requirements planning is carried out without lead timescheduling as shown in the upper part of the diagram, capacity requirements are notdetermined for the planned orders. Production orders are always scheduled usinglead time scheduling via the operations. Lead time scheduling can also be used todetermine capacity requirements for planned orders in MRP. The production orderalways has both sets of dates (basic dates and production dates). The production datesare dates relevant to production. In order to ensure smooth material requirementsplanning, it is absolutely essential to schedule the routing and to update the schedulingresult in the material master.



Figure 111: Basic Date Scheduling Backwards for In-House Production

With materials planned using MRP, future requirements dates are known. Backwardscheduling is used. With backward scheduling, the system calculates the order finishdate by subtracting the goods receipt processing time from the requirements date. Thisgives the number of workdays that are required for checking the material and placingit in storage after the goods are received. Backward scheduling is defined in the MRP2 view in the material master. The system calculates the order start date by subtractingthe in-house production time from the order finish date. The in-house productiontime comprises the lead time and floats (safety time, float before production, andso on). You can maintain the in-house production time in the material master as avalue that is independent of the lot size (MRP or Work Scheduling views) or as alot-size-dependent value (Work Scheduling view). If the in-house production time isindependent of the lot size, the system uses this value to determine the basic datesindependent of the order quantity. With an in-house production time that depends onthe lot size, the system determines the time based on the order lot size. The setup timeand queue time are independent of the lot size. The opening period for the plannedorder is then subtracted from the order start date. This gives the opening date.

The opening period reflects the processing time that the MRP controller requires toconvert planned orders. You define the opening period as a float for the schedulingmargin key in the Customizing for MRP, in the activity �Define Floats (SchedulingMargin Key)� for each plant, and enter the scheduling margin key in the materialmaster (MRP 2).



Figure 112: Basic Date Scheduling Forwards for In-House Production

If during backward scheduling of materials planned using MRP the system determinesan order start date that is in the past, it automatically switches to forward scheduling inorder to receive realistic scheduling data. With forward scheduling, the system setsthe current date as the order start date. The in-house production time is added to thecurrent date to give the order finish date. The goods receipt processing time is addedto the order finish date in order to determine the MRP date. The material is availablefrom this date onwards. There is no order creation date with forward scheduling sincethe opening date calculated is in the past.

In the �Parameters for Determining the Basic Dates� activity in MRP Customizing,you can make a setting for each plant to prevent the system from automaticallyswitching to forward scheduling when calculating basic dates if the order start date isin the past. If the indicator is set, backward scheduling is always used to determine thebasic dates, even if the start date is in the past.



Figure 113: Basic Scheduling for External Procurement

The scheduling procedure for materials procured externally is the same as for materialsproduced in-house: it is merely a matter of replacing the in-house production timewith the sum of the purchasing department processing time and the planned deliverytime. You define the purchasing department processing time in workdays as a plantparameter in Customizing. The planned delivery time is specified in calendar days. Itcan be determined on a non-vendor-specific or vendor-specific basis. You maintain thenon-vendor-specific planned delivery time in the material master in the MRP 2 view.

You enter a vendor-specific planned delivery time in the purchasing info record orin the outline agreement. It is used in the planning run, if the Sched. info rec/agr.(scheduling info record/agreement) indicator is maintained in Customizing as a plantparameter or MRP group parameter and if a vendor can be uniquely assigned as partof automatic source determination.



Figure 114: Order Dates for Basic Scheduling

Basic scheduling is carried out if you start the planning run with the schedulingindicator set to 1 (basic dates will be determined for planned orders). The planning rundetermines the dependent requirements for the components via the BOM explosion.With basic scheduling, the dependent requirements date is derived from the order startdate of the planned order that caused the requirements.

Taking the dependent requirements date as the availability date, the system determinesthe basic order dates of the components by means of backward scheduling usingin-house production time or planned delivery time. With basic scheduling, no capacityrequirements are calculated or dispatched for the order.



Figure 115: Lead Time Scheduling

You trigger lead time scheduling in MRP by setting the scheduling indicator to�2� (lead time scheduling and capacity planning). During the planning run withthe scheduling indicator �2�, the order start and order finish dates are determinedfor each basic scheduling. This is followed automatically by the actual lead timescheduling which can alternatively also be executed manually for individual plannedorders (Planned order � Change � Edit � Scheduling) based on the existing basic datescheduling with the scheduling indicator �1� (Determining basic dates for plannedorders). In lead time scheduling the precise production times (that is, production startand finish dates) are defined for materials produced in-house and at the same time thecapacity requirements are created. The materials staging dates for the componentsare also determined. Lead time scheduling is carried out using the times from thetask list. It is executed as forward scheduling or backward scheduling, dependingon the setting you make in the �Define Scheduling Parameters for Planned Orders�activity in Customizing. The following times are taken into account: � Buffer times(float before production and safety time) that are assigned to the material using thescheduling margin key � the individual time portions from the routing: Waiting time,setup time, labor time, and machine time.

In backward scheduling, the system first works back from the order finish date tocalculate the float after production, which in turn gives the production finish date.The individual operations of the task list are scheduled backwards, starting from theproduction finish date. The start date of the first operation becomes the productionstart date.



Figure 116: Reduction and Scheduling Adjustment

To ensure smooth interplay between basic date scheduling and lead time scheduling,the in-house production time in the material master must match the lead timescheduling via the routing. If basic scheduling differs from lead time scheduling, thebasic dates can be adjusted to the production dates after the production dates havebeen re-determined through reduction. If the production start date of the planned orderis before the order start date, the system can determine new production dates usingreduction. Reduction can take place at two points: 1. To reduce the float beforeproduction and the safety time, you must set up reduction in the Customizing for thescheduling parameters for planned orders for the plant, the planned order type, andwhere necessary the production scheduler; 2.To reduce the operation times, you mustassign a reduction strategy to the operation in the routing. In the Customizing activity�Define Scheduling Parameters for Planned Orders�, in the �Adjust Scheduling�section, you can define whether and how the basic dates are to be adjusted to theproduction dates. If there are scheduling problems, the basis for calculating basicdates switches from backward to forward scheduling. If, based on these basic dates,detailed scheduling occurs backward and if the times in the routing are much shorterthan those in the material master, the following situation may arise: The calculatedproduction start date is further in the future than is necessary (and may still be ableto be produced on schedule.) To avoid this, Customizing is overridden. the systemschedules forward and the order finish date is adjusted (it falls on the requirementsdate at the earliest). The proposed order start date remains the same.



Figure 117: Staging Components in Accordance with the Operation

With lead time scheduling using the routing, the dependent requirements dates canbe placed on the dates of the assigned operations. A material order appropriate forthe operation is then possible.

The standard system assumes staging of materials in accordance with the componentassignment of the BOM to the routing. The dependent requirements date of theBOM components is set on the production start date of the operations to which theyare assigned.

If BOM components are assigned to the first operation of the routing in the defaultsettings or component assignment maintenance, their dependent requirements dateis set to the production start date of the first operation. With pure basic scheduling,their dependent requirements date is the order start date of the planned order thatcaused the requirements.

In Customizing for MRP, in the �Adjust Scheduling� section of the IMG activity�Define Scheduling Parameters for Planned Orders�, you can define that the dependentrequirements date is also to be placed on the order start date with lead time scheduling(for example, if capacity requirements have to be created using lead time scheduling).



Figure 118: Changing Dependent Requirement Dates

In the BOM explosion, the required components or assemblies are determined forthe relevant BOM.

The dependent requirement date of a particular component can be moved using thenegative lead time or positive lead time from the BOM. You maintain the negativeand positive lead times in the basic data screen of the component item. The lead timeis entered as negative lead-time offset.

The positive lead time is not taken into account in lead time scheduling. They areused for the simulation of component assignment in the routing during basic datescheduling.

The negative lead time is taken into account in lead time scheduling. The componentmust be available earlier by this period.



Exercise 14: Scheduling

Exercise ObjectivesAfter completing this exercise, you will be able to:� Describe the functions of scheduling� Monitor the order dates in multilevel production

Business ExampleBased on material R-F1## in plant 1000, the project team examines the possibilitiesfor staging the assemblies and components at different times in multi-level productionplanning.

Task 1:Call the current stock/requirements list for material R-F1## in plant 1000. Select aplanned order in the net segment that is not firmed and does not show any exceptionmessages.

1. Make a note of the number of the planned order.

______________________________________________________

2. Choose the Order Report pushbutton at the bottom left of the screen. In theorder report, double-click on the respective element and select the componentmaterials to analyze.

With dependent requirements, always analyze the �corresponding� requirementscoverage element.

To do this, place your cursor on the line and use theDisplay Element pushbutton.

R-F1## basic dates Production datesFinish: ________________ Finish: ________________Start: ________________ Start: ________________Goods receipt processing time:R-B1## basic dates Production datesFinish: ________________ Finish: ________________Start: ________________ Start: ________________Goods receipt processing time:




R-B4## basic dates Production datesFinish: ________________ Finish: ________________Start: ________________ Start: ________________Goods receipt processing time:

3. What relationship do the dates have to one another?

___________________________________________________

___________________________________________________

___________________________________________________

4. Why is there no production date?

___________________________________________________

___________________________________________________

___________________________________________________

Task 2:The assembly electronic turbo drive R-B4## cannot be installed until assembliesR-B1##. R-B2##, and R-B3## are assembled. Therefore the electronic turbo driveshould be made available later in the basic date scheduling.

1. Call the BOM for material R-F1## in plant 1000 and usage 1 using thetransaction Change BOM in the production master data and branch to theitem overview.

Select the item for assembly R-B4## and choose the Item button. On the BasicData tab page, define a positive lead time (�Lead-time offset�) of 5 workingdays.

Save the change.

2. Execute multilevel planning for material R-F1## in plant 1000.

Choose planning mode 2 (re-explode BOM and routing) and scheduling type 1(basic date scheduling).

3. Refresh the stock/requirements list for material R-F1## in plant 1000 andanalyze the new scheduling situation for the planned order you selected.

Proceed in the same way as described in task 1 point 2.




R-F1## basic dates Production datesFinish: ________________ Finish: ________________Start: ________________ Start: ________________Goods receipt processing time:R-B1## basic dates Production datesFinish: ________________ Finish: ________________Start: ________________ Start: ________________Goods receipt processing time:R-B4## basic dates Production datesFinish: ________________ Finish: ________________Start: ________________ Start: ________________Goods receipt processing time:

Compare the result with the result from task 1 point 2.

______________________________________________________

______________________________________________________

Task 3:You should also test the effect of the positive lead time in the BOM item for leadtime scheduling.

1. Execute multilevel planning for material R-F1## in plant 1000:

Choose planning mode 2 (re-explode BOM and routing) and scheduling type 2(lead time scheduling).

2. Refresh the stock/requirements list for material R-F1## in plant 1000 and analyzethe new scheduling situation for the planned order you selected previously.

R-F1## basic dates Production datesFinish: ________________ Finish: ________________Start: ________________ Start: ________________Goods receipt processing time:R-B1## basic dates Production dates




Finish: ________________ Finish: ________________Start: ________________ Start: ________________Goods receipt processing time:R-B4## basic dates Production datesFinish: ________________ Finish: ________________Start: ________________ Start: ________________Goods receipt processing time:

Do production dates exist now?

______________________________________________________

Does the positive lead time for assembly R-B4## also affect lead timescheduling?

______________________________________________________

Task 4:Optional task:

To achieve staging of assemblies or components in accordance with the operation inlead time scheduling as well, you must make a component or operation assignment forthe affected assemblies or components.

1. Call the BOM for material R-F1## in plant 1000 with usage 1 once more.

Select item R-B4## in the item overview. Choose Extras and then OperationAssignment.

Select the operation 50 (install electronic turbo pump) in the operation overviewand choose Edit, New assignment and save.

2. Execute multilevel planning for material R-F1## in plant 1000 again.


3. Refresh the stock/requirements list for material R-F1## in plant 1000 andanalyze the new scheduling situation for the planned order you selected again.





Compare the result with the result from task 3 point 2. Will the electronicturbo pump assembly R-B4## now also be staged at a later date in lead timescheduling?

______________________________________________________

Hint: The staging date for assembly R-B4## (determined usingcomponent assignment) in lead time scheduling does not necessarilycorrespond to the staging date determined in basic date scheduling,because the positive lead time is independent of lot size.



Solution 14: SchedulingTask 1:Call the current stock/requirements list for material R-F1## in plant 1000. Select aplanned order in the net segment that is not firmed and does not show any exceptionmessages.

1. Make a note of the number of the planned order.

______________________________________________________

a) Number of selected planned order: Varies

2. Choose the Order Report pushbutton at the bottom left of the screen. In theorder report, double-click on the respective element and select the componentmaterials to analyze.

With dependent requirements, always analyze the �corresponding� requirementscoverage element.

To do this, place your cursor on the line and use theDisplay Element pushbutton.

R-F1## basic dates Production datesFinish: ________________ Finish: ________________Start: ________________ Start: ________________Goods receipt processing time:R-B1## basic dates Production datesFinish: ________________ Finish: ________________Start: ________________ Start: ________________Goods receipt processing time:R-B4## basic dates Production dates




Finish: ________________ Finish: ________________Start: ________________ Start: ________________Goods receipt processing time:

a)

R-F1## basic dates Production datesFinish: Varies Finish: Not availableStart: Varies Start: Not availableGoods receipt processing time: 1 dayR-B1## basic dates Production datesFinish: Varies Finish: Not availableStart: Varies Start: Not availableGoods receipt processing time: 1 dayR-B4## basic dates Production datesFinish: Varies Finish: Not availableStart: Varies Start: Not availableGoods receipt processing time: 1 day

3. What relationship do the dates have to one another?

___________________________________________________

___________________________________________________

___________________________________________________

a) The order start date of the finished product coincides with the orderfinish dates of the assemblies plus the goods receipt processing timesof the assemblies.

4. Why is there no production date?

___________________________________________________

___________________________________________________




___________________________________________________

a) There are no production dates because material requirements planningwas executed first with scheduling indicator 1 (basic date scheduling).

Task 2:The assembly electronic turbo drive R-B4## cannot be installed until assembliesR-B1##. R-B2##, and R-B3## are assembled. Therefore the electronic turbo driveshould be made available later in the basic date scheduling.

1. Call the BOM for material R-F1## in plant 1000 and usage 1 using thetransaction Change BOM in the production master data and branch to theitem overview.

Select the item for assembly R-B4## and choose the Item button. On the BasicData tab page, define a positive lead time (�Lead-time offset�) of 5 workingdays.

Save the change.

a) Menu path: Logistics→ Production→ Master Data→ Bills of Material→ Bill of Material→ Material BOM→ Change

2. Execute multilevel planning for material R-F1## in plant 1000.

Choose planning mode 2 (re-explode BOM and routing) and scheduling type 1(basic date scheduling).


3. Refresh the stock/requirements list for material R-F1## in plant 1000 andanalyze the new scheduling situation for the planned order you selected.

Proceed in the same way as described in task 1 point 2.

R-F1## basic dates Production datesFinish: ________________ Finish: ________________Start: ________________ Start: ________________Goods receipt processing time:R-B1## basic dates Production datesFinish: ________________ Finish: ________________Start: ________________ Start: ________________Goods receipt processing time:




R-B4## basic dates Production datesFinish: ________________ Finish: ________________Start: ________________ Start: ________________Goods receipt processing time:

Compare the result with the result from task 1 point 2.

______________________________________________________

______________________________________________________

a) Due to the positive lead time of 5 days, which is set in assembly R-B4##,the order finish date of this assembly is 5 days after the order finishdate of assembly R-B1##, which does not have positive lead time set.

Task 3:You should also test the effect of the positive lead time in the BOM item for leadtime scheduling.

1. Execute multilevel planning for material R-F1## in plant 1000:



2. Refresh the stock/requirements list for material R-F1## in plant 1000 and analyzethe new scheduling situation for the planned order you selected previously.

R-F1## basic dates Production datesFinish: ________________ Finish: ________________Start: ________________ Start: ________________Goods receipt processing time:R-B1## basic dates Production datesFinish: ________________ Finish: ________________Start: ________________ Start: ________________Goods receipt processing time:R-B4## basic dates Production dates




Finish: ________________ Finish: ________________Start: ________________ Start: ________________Goods receipt processing time:

Do production dates exist now?

______________________________________________________

Does the positive lead time for assembly R-B4## also affect lead timescheduling?

______________________________________________________

a) Production dates available: Yes, because requirements planning wasexecuted with scheduling indicator 2 (lead time scheduling).

No, the positive lead time does not have an effect in lead timescheduling.

Task 4:Optional task:

To achieve staging of assemblies or components in accordance with the operation inlead time scheduling as well, you must make a component or operation assignment forthe affected assemblies or components.

1. Call the BOM for material R-F1## in plant 1000 with usage 1 once more.

Select item R-B4## in the item overview. Choose Extras and then OperationAssignment.

Select the operation 50 (install electronic turbo pump) in the operation overviewand choose Edit, New assignment and save.

a) Menu path: Logistics→ Production→ Master Data→ Bills of Material→ Bill of Material→ Material BOM→ Change

2. Execute multilevel planning for material R-F1## in plant 1000 again.



3. Refresh the stock/requirements list for material R-F1## in plant 1000 andanalyze the new scheduling situation for the planned order you selected again.





Compare the result with the result from task 3 point 2. Will the electronicturbo pump assembly R-B4## now also be staged at a later date in lead timescheduling?

______________________________________________________

Hint: The staging date for assembly R-B4## (determined usingcomponent assignment) in lead time scheduling does not necessarilycorrespond to the staging date determined in basic date scheduling,because the positive lead time is independent of lot size.

a) Yes, the assembly R-B4## will now be staged at a later date (primarilyat the start date for operation 50 assigned to the assembly forthe finished product R-F1##. You can check this on the DetailedScheduling tab page in the details for the planned order at finishedproduct level).



Lesson Summary

You should now be able to:� Describe scheduling for in-house production� Describe scheduling for external procurement� Understand multilevel backward scheduling� Make corresponding settings in Customizing


SCM240 Lesson: BOM and Routing Selection

Lesson: BOM and Routing Selection

Lesson OverviewPlanned orders for materials produced in-house are scheduled using the materialmaster, the routing and the BOM. You therefore need to make the correspondingsettings for selecting the routing and BOM.


� Set the parameters for selecting the BOM� Set the parameters for selecting the routing� Make corresponding settings in Customizing

Business ExampleYou have to select the correct BOMs and routings to schedule in-house production.

BOM ExplosionAfter the planning run has executed the net requirements calculation, the lot-sizecalculation, and the scheduling for a material, it determines the required quantitiesfor assemblies produced in-house and the materials staging date for the requiredcomponents and assemblies. The system determines and explodes the valid BOM forevery new order proposal of an assembly in the planning run. In the case of existingprocurement proposals, the BOM is only re-exploded if the quantity or the date of theprocurement proposal or the BOM structure has been changed. If the BOM structurehas changed, the system creates a planning file entry with the �new BOM explosion�indicator. If, however, you want a new BOM explosion during the planning run, youcan control this on the initial screen using the planning mode (planning mode 2 or 3).You can view the detailed data for the BOM explosion in the planned order on the�Master Data� screen.



Figure 119: BOM Explosion: Overview

During the planning run, the system explodes the BOM for every new planned orderof an assembly. The following steps are carried out to determine the valid BOM:

� In the planning run, the system first checks which BOM usage has the highestpriority. It then checks if this usage has a valid BOM on the explosion date. Ifthis is not the case, the system creates an exception message.

� If there are different BOM alternatives, the system checks which alternativecorresponds to the prerequisites of the alternative selection.

� If the alternative selection requires the selection to be made in accordancewith the production version, the BOM is already determined by the productionversion in which it is contained.

� The change status on the explosion date is determined for the selected BOMalternative, if necessary.

� The BOM items relevant to production are copied to the planned order for thevalid BOM. The dependent requirements quantity is determined by the quantityfactor of the BOM item.

� The dependent requirements date is determined in accordance with thescheduling of the superior assembly: it is either derived from the basic startdate or from the production start date of the operations in the planned order forthe superior assembly.



The BOM must be maintained in the appropriate plant in order to carry out theplanning run. Furthermore, the validity of a BOM is determined by the BOM status.To use the BOM in MRP, you must have set the BOM status in the BOM header sothat it is active for MRP.

Figure 120: Selection of BOM Usage

With the BOM usage, it is possible to manage separate BOMs for the differentbusiness areas (Engineering/Design, Production, Costing, and so on). The maindifferences in the BOM structures result from the different tasks of the various areasthat process different item data.

You have to define which BOM usage is to be used in the planning run. You determinethe priority of the usages for the planning run using the selection ID in Customizingfor MRP, in the activity �Define BOM Selection� (Note: The routing selection isnot defined in this activity). You can define a sequence for the selection of a validBOM with the �usage� criterion.

If the system does not find a valid BOM in the selected usage, it selects the usage withthe next lowest priority and carries out the check for valid BOMs.

You define the order of priority for the BOM usage, that is, the selection ID, inCustomizing for production basic data, in the activity �Define Order of Priority forBOM Usages�.



Figure 121: Selection of Alternative BOM

In the case of multiple BOMs, you have to define which alternative BOM is to beselected during the planning run.

You can define which procedure is to be used to select the BOM in the material masterrecord, in the �Selection method� field for the MRP data (MRP 4).

Three options are available:

� BOM selection using the order quantity (lot size): The order quantity is based onthe lot size in accordance with the selected lot-size procedure.

� Selection according to explosion date: The system uses the explosion dateto determine the valid BOM (or the valid routing) for a planned order. InCustomizing, you can define whether the order start date, order finish date, orfixed key date of the BOM explosion number is selected.

� Selection according to production version: The production version determinesthe different production methods that can be used to produce a material. Theproduction version therefore contains a routing and a BOM. The alternativeBOM to be selected, the BOM usage, the lot-size range, and the effectivityperiod of a BOM can be defined for the alternative selection. With alternativeselection indicator 3, the selection is always made according to productionversion; with indicator 2 , the selection is made according to production versionwhen this is possible (if not, then according to lot size).



Figure 122: Selection by Order Quantity (Lot Size)

During the planning run, the system checks whether a valid alternative BOM existsfor the order quantity (lot size). You must defined the lot-size range of an alternativein the BOM. The valid alternative is exploded and dependent requirements are createdfor the corresponding components. If the system does not find a valid or suitablealternative for the order quantity, it creates an exception message.



Figure 123: Defining the Explosion Date

In Customizing for MRP, in the activity �Define BOM Explosion Control�, you candefine the explosion date for the BOM and routings selection at plant or MRP grouplevel.

The explosion date determines which BOM (or which routing) is used for theexplosion and thus for determining the dependent requirements for the planned order.This means that the BOM that is valid on the explosion date is selected and the systemgenerates dependent requirements for the components entered there.

The following options are available for the explosion date:

� Order start date� Order finish date� BOM explosion number (gross date)



Figure 124: Explosion According to Order Start Date

For BOM explosion according to date (selection method indicator = 1),assembly-specific periods are defined, within which certain alternative BOMs areto be used. The system then checks the defined period for the assembly during theplanning run. The system checks in which period the explosion date lies, and selectsthe corresponding alternative BOM. The default setting is that the order start date isset as the BOM explosion date. The suitable alternative is exploded and dependentrequirements are created for the corresponding components.

To define the alternative BOM for each period, you choose �BOM via dates� in themaster data in the MRP menu. To define the alternative selection using dates, enterthe following parameters in the table: Material number, plant, BOM usage, and thevalid-from date, from which the alternative BOM is to be used in the planning run,and the BOM alternative.

In order to assign several alternative BOMs with different effectivity periods to amaterial, you define the beginning of the effectivity period for each alternative in the�Valid from� field. The beginning of the validity period of the next alternative on thetime axis marks the end of the effectivity period of the previous alternative.

The system selects the BOM and explodes it as soon as the basic dates have beendetermined in the scheduling, that is, in the case of lead time scheduling even beforethe scheduling is carried out via the routing. If the basic date is to be adjusted to the



production date (for example, if the deadline is missed), the BOM is still exploded onthe original basic date. The BOM explosion date and the final basic date are differentin this special case.

Figure 125: Explosion Using Order Finish Date

Here you can see the BOM explosion situation if you define in Customizing that theBOM explosion date is to be set according to the planned order finish date.

The system selects and explodes the BOM as soon as the order finish date has beendetermined in the scheduling. If, in the case of lead time scheduling, the order startdate is to be adjusted to the production dates, this does not change the order finishdate, that is, BOM explosion date and the final basic date do not differ in this case.

If the system does not find a valid or suitable alternative, the BOM with the suitablelot size is used.



Figure 126: Explosion Using the BOM Explosion Number

If the order start date of the planned order is set as the explosion date for the BOMexplosion, there could be large intervals between the explosion dates of the individualBOM structures under certain circumstances, in the case of multiple BOMs. If BOMs(alternatives) change over time due to different requirements, the situation could occurthat an assembly used several times is produced using different BOM compositions.

If you would like to ensure for a particular production unit that the whole BOMstructure is always exploded with the same explosion date, you can assign a BOMexplosion number to the planned independent requirements or the sales order or to aplanned order.

Using the BOM explosion number, you can define a standard explosion date for allBOM levels. This �gross date� is contained in the BOM explosion number. The BOMis exploded for all level with this gross date.

You maintain a BOM explosion number in the MRP master data. You can define thegross date for an alphanumeric BOM explosion number.

The BOM explosion number can be entered and pre-defined in the planned order(header screen), in the planned independent requirement (Schedule Lines screen,Settings -> BOM explosion number), in customer requirements or in the sales order(item screen Sales or item detail screen Sales A).



Figure 127: Selection by Production Version

There may be different BOMs according to which a material is produced. Theproduction of a material can also be described in various routings. The material canbe produced on different production lines (work centers). The data on the differentmethods according to which a material can be produced, can be combined in theproduction version and assigned as such to the material.

The production version defines the following data:

� Alternative BOMs and BOM usages for the BOM explosion� Task list type, task list group, and group counter of the routing� Validity period of the production version (fields �Valid from� and �Valid to�)� Lot-size area of the production version (fields �Lot-Size from� and �Lot-Size to�)

If the value �2� has been entered for the selection method indicator in the materialmaster, the BOM is selected by production version, as long as valid data is available.If the system does not find a production version or does not find a production versionwhich is suitable as far as usage, lot-size and validity period is concerned, thenthe selection occurs according to lot-size in the same way as when the selectionmethod indicator is set to �blank�. If the indicator is set to �3�, the selection occursaccording to production version, which means that if the system does not find anyselection version or does not find any appropriate selection version, it cannot create aproduction order and issues an exception message.



Figure 128: Change Status According to Order Start Date

The BOM (or alternative BOM) can have different validity periods on the time axisdue to changes that have been made (for example in the BOM composition). The BOMcan have different compositions (statuses) at different times. Every change status has avalid-from date and a valid-to date, defined by the valid-from date of the next change.

The BOM status at the time of the explosion date is exploded. Whether this is theorder start or finish date, or the fixed key date of the BOM explosion number, dependson the settings made in Customizing (Customizing activity �Define BOM ExplosionControl�).



Figure 129: Change Status According to Order Finish Date

Figure 130: Change Status According to BOM Explosion Number

By entering a BOM explosion number, you can explicitly define an explosion date(fixed key date) for a BOM structure.



Figure 131: Summary: BOM Selection

The BOM selection in the MRP run has three steps:

1. The BOM usage is defined by the BOM selection ID, which you assign on aplant-by-plant basis in the Customizing activity �Define BOM Selection�.

2. The alternative BOM is determined according to the setting for the BOMselection indicator in the material master. If the selection is to be made accordingto explosion date, you should enter the date to be used in the Customizingactivity �Define BOM Explosion Control�.

3. The change status of the BOM is then determined using the explosion date. Thesame Customizing setting as in step 2 is the basis for the choice of date.



Figure 132: Routing Selection

If you start the planning run with the scheduling indicator 2 (lead time schedulingand capacity planning), the system selects the routing for each planned order. Thesystem calculates the dates, the staging of materials and the capacity requirementsusing the routing.

The selection method indicator in the material master (MRP 4) is also crucial forselecting the routing:

� If it has been set to value 2 or 3 (selection by production version), the routing isalso selected according to the selected production version.

� Otherwise, the selection ID of the routing selection, which is defined inCustomizing for MRP at detailed scheduling level in the activity �DefineScheduling Parameters for Planned Orders�, decides which routing is selected.

You define the selection ID of the routing selection in Customizing for Productionunder basic data. The explosion dates of the BOM and the routing are identical. Ifthe planned order is managed using Engineering Change Management, the systemuses the routing with the change status at the time of the BOM explosion date. Thetask list group and the group counter for the routing as well as the correspondingscheduling and capacity requirements can be seen on the �Detailed Scheduling�screen for the order.



Exercise 15: Routing and BOM Selection

Exercise ObjectivesAfter completing this exercise, you will be able to:� Analyze the selection of routings and BOMs in the MRP run and make the

appropriate settings in the system.

Business ExampleUsing material R-F1## in plant 1000, the project team investigates the technicalprocesses involved in selecting routings and BOMs during the planning run.

Task 1:Call the stock/requirements list for the material R-F1## in plant 1000, then call threeexisting planned orders, one after the other, in the net segment and check which BOMwas selected by looking at theMaster Data tab page for the respective planned order.

1. Have the production dates and the corresponding capacity requirements beencreated on the basis of the same routing for all the planned orders?

______________________________________________________

2. Which settings in the system have caused these routings to be selected?Individually:

What value does the selection method indicator in the material master formaterial R-F1## have and what does this mean?

______________________________________________________

What Selection ID for detailed planning is set in Customizing for the existingplanned orders (you can find this selection ID in the Customizing IMG activityDefine Scheduling Parameters for Planned Orders)?

______________________________________________________

Task 2:Evaluate the BOM explosion in the planned orders:

1. Call the stock/requirements list for material R-F1## in plant 1000 and analyzethe planned orders you looked at before. On theMaster Data tab page for therespective planned order, find out which BOM was exploded on which date:




1. BOM: ____________________________

Date: __________________________________________

2. BOM: ____________________________

Date: __________________________________________

3. BOM: ____________________________

Date: _____________________

2. Now analyze the detailed data for the planned orders. On which basic date wasthe BOM for each planned order exploded?

______________________________________________________

3. Which indicator is responsible for selecting the alternative BOM and whatsetting has been made here?

______________________________________________________



Solution 15: Routing and BOM SelectionTask 1:Call the stock/requirements list for the material R-F1## in plant 1000, then call threeexisting planned orders, one after the other, in the net segment and check which BOMwas selected by looking at theMaster Data tab page for the respective planned order.

1. Have the production dates and the corresponding capacity requirements beencreated on the basis of the same routing for all the planned orders?

______________________________________________________

a) Same routing: Yes

2. Which settings in the system have caused these routings to be selected?Individually:

What value does the selection method indicator in the material master formaterial R-F1## have and what does this mean?

______________________________________________________

What Selection ID for detailed planning is set in Customizing for the existingplanned orders (you can find this selection ID in the Customizing IMG activityDefine Scheduling Parameters for Planned Orders)?

______________________________________________________

a) Selection method indicator in the material master: �Blank�

Meaning: The selection is made according to the order quantity.

Selection ID for the detailed planning in Customizing: (Menu path:Customizing: Production→ Material Requirements Planning→ Planning→ Scheduling and Capacity Parameters→ Define Scheduling Parametersfor Planned Orders)

The selection ID detailed scheduling 01 is valid for planned orders (anyorder type and production controller) in plant 1000.

Using this selection ID, the system searches for a routing with usage 1(production) and status 4 (released general) as the highest priority (this canbe checked using the transaction OPEB).




Task 2:Evaluate the BOM explosion in the planned orders:

1. Call the stock/requirements list for material R-F1## in plant 1000 and analyzethe planned orders you looked at before. On theMaster Data tab page for therespective planned order, find out which BOM was exploded on which date:

1. BOM: ____________________________

Date: __________________________________________

2. BOM: ____________________________

Date: __________________________________________

3. BOM: ____________________________

Date: _____________________

a) BOM and date: Varies

2. Now analyze the detailed data for the planned orders. On which basic date wasthe BOM for each planned order exploded?

______________________________________________________

a) Basic date: The BOMs were exploded on the respective order start date.

3. Which indicator is responsible for selecting the alternative BOM and whatsetting has been made here?

______________________________________________________

a) Criterion for the alternative BOM selection: The alternative selectionfield in the material master that is responsible for controlling theselection has the value �blank� (selection by order quantity), as youhave seen before.



Lesson Summary

You should now be able to:� Set the parameters for selecting the BOM� Set the parameters for selecting the routing� Make corresponding settings in Customizing


Unit Summary SCM240

Unit SummaryYou should now be able to:� Understand the net requirements calculation� Work with safety stocks� Use the dynamic safety stock� Use the safety time� Use static lot-sizing procedures� Use lot-sizing by period� Use optimizing lot-sizing procedures� Make corresponding settings in Customizing� Use the procurement type for in-house production� Use the procurement type for external procurement� Use the quota arrangement� Describe scheduling for in-house production� Describe scheduling for external procurement� Understand multilevel backward scheduling� Make corresponding settings in Customizing� Set the parameters for selecting the BOM� Set the parameters for selecting the routing� Make corresponding settings in Customizing


Unit 5Evaluating and Processing the MRP

Results

Unit OverviewThe MRP results are usually processed after a total planning run. The aim is to processproblem situations that have led to the creation of exception messages manually.

The normal tools for this manual processing are the stock/requirements list and theMRP list with their respective collective accesses. As well as the exception messages,these lists offer a range of functions for processing the planning results: Reschedulingdata, firming, evaluation functions such as order report or pegged requirements, stockdays' supply and receipt days' supply.

The stock/requirements list and the MRP list are set up and used in the same way.However, the detailed functions of the two lists differ. Both lists, with their diversefunctions, are used not only in operative requirements planning but also in long-termplanning. They are therefore one of the most important tools for the MRP controller.


� Work with the stock/requirements list� Use the MRP list� Use navigation profiles� Deploy the display filter and selection rules� Use the collective call� Use the planning table for repetitive manufacturing� Use production versions� Interpret exception messages� Make corresponding settings in Customizing� Interpret ranges of coverage� Use the pegged requirements display


Unit 5: Evaluating and Processing the MRP Results SCM240

� Use the order report

Unit ContentsLesson: MRP List and Stock/Requirements List.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .289

Exercise 16: Functions of the Stock/Requirements List.. . . . . . . . . . . . . . . . . .301Exercise 17: Display Filter, Selection Rule (Optional) . . . . . . . . . . . . . . . . . . . .309

Lesson: Planning Table .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .313Lesson: Exception Messages .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .318Lesson: Additional Evaluation Aids... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .323

Exercise 18: Collective Display of MRP Lists... . . . . . . . . . . . . . . . . . . . . . . . . . . . .329Exercise 19: Rescheduling Check (Optional). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .333


SCM240 Lesson: MRP List and Stock/Requirements List

Lesson: MRP List and Stock/Requirements List

Lesson OverviewYou evaluate and, if necessary, process the MRP results from two central lists: Thestock/requirements list and the MRP list.


� Work with the stock/requirements list� Use the MRP list� Use navigation profiles� Deploy the display filter and selection rules� Use the collective call

Business ExampleA range of different functions are available in both lists for evaluating and processingthe MRP results. The MRP controller needs to know how to use these.

MRP List and Stock/Requirements List



Figure 133: MRP List and Stock/Requirements List

You can evaluate the planning situation or the result of a planning run by using thestock/requirements list or the MRP list. You can do this using individual access orcollective access. The current stock/requirements list is a dynamic list that shows thecurrent levels of stock, requirements, and receipts. You are able to view any changesas soon as the stock/requirements list is called, or in the stock/requirements listdisplay screen when the elements are read in real time from the database using the�Refresh� function. The MRP list displays the result of the last planning run and istherefore static: Changes made after the planning run are not displayed. You candetermine whether an MRP list is to be created during the planning run. The basicstructure of both lists is the same:

� Links are in the form of a tree for the worklist of the MRP controller.� Above the list is the header with the material number. You can display additional

information in the header details.� The list itself contains the individual MRP elements and the corresponding

available quantities.

User-specific settings enable you to adapt the lists to your personal requirements (seeCustomizing for the Evaluation of Material Requirements Planning, �Configure MRPList / Stock/Requirements List�). You can use a customer exit to display additionaldata, which you can then access using a function key (see �Customer Exit: ProgramAdditional Columns� in Customizing).



Figure 134: Functions of the Stock/Requirements List

The stock/requirements list offers several display options: You can display differentdates (the availability date or the goods receipt date, with/without safety time). Youcan work with display filters and selection rules, you can work in the period totalsdisplay, and so on. You can define the display accordingly in your own personalsettings. �Period Totals� is a display function in the MRP list and stock/requirementslist evaluations that groups the planning results into periodic buckets (for example,weekly or monthly buckets). In the �Define Period Display for Period Totals� activityin Customizing, you define which periods are to be shown in the �Period Totals�display. The periods you select here are shown on various tab pages in the PeriodTotals display.

You can process individual MRP elements from the list. Alongside the standardfunctions (such as search functions), you also have functions defined on a user-specificbasis that can be accessed through the �Navigation Profile� and personal favorites.You can also process the list with a range of user-specific functions at a material level.

You can analyze the capacity situation from the current stock/requirements list. Foreach work center and capacity category, the system displays the available capacity,the total capacity requirements, and the capacity requirements of this material perperiod. Overload situations are highlighted in color. Note that planned orders thathave not been scheduled using detailed scheduling (created by a planning run with thescheduling indicator 1) do not create capacity requirements.



Figure 135: Functions of the MRP List

The functions in the MRP list are largely identical to the functions in thestock/requirements list, as far as processing MRP elements or display optionsis concerned, for example. Selection rules, however, are only used in thestock/requirements list. In contrast to the stock/requirements list, you can set aprocessing indicator for the MRP list. This indicator serves to highlight lists that havealready been processed by the MRP controller.

You define the display of the header details for the MRP evaluations in theCustomizing IMG activity �Define Screen Sequence for Header Details�. The headerdetails of the MRP list contain additional data for the planning run. In particular, theycontain the number of exception messages that have occurred during the planningof a material.

The header details show an overview of master data and transaction data for eachmaterial. This data is grouped together according to topic in individual screens.The MRP type controls which screens are displayed in the requirements planningevaluations. To do this, the screen sequences are provided with a key, which isthen assigned to the MRP type. It is therefore possible to display master data forthe evaluation of consumption-based materials that is different to that displayed forMRP planned materials.



Figure 136: Collective Access to Stock/Requirements List

Collective access to the stock/requirements list is possible using a large numberselection criteria. For example, you can display all of the lists for which you areresponsible as MRP controller.

Firstly, a material overview is displayed with all of the selected materials. If youhave set the �Set up Lists in Background� indicator, the following are availablefor orientation: Traffic lights, various search functions in the overview and in theindividual lists, and sort functions (also for individual customer segments by date ornumber). You can use the search function to select materials by certain exceptionmessages. You can make user-specific definitions for the display of traffic lightsaccording to day's supply violations or exception groups. You can also defineuser-specific sort criteria. From the overview, you can go to the individual lists andprocess the materials there. For example, if you have used the search function toselect several lists for processing, you can jump from one list directly into the nextlist selected.



Figure 137: MRP list collective display

The selection criteria for collective access in the MRP lists are not the same as thosein the stock/requirements lists. Here, for example, the MRP or processing date and/orthe processing indicator for the selection are available.

The orientation guides in the material overview correspond with those in thestock/requirements list. It is also possible to search for processing indicators or newexceptions.



Figure 138: Planning segments

The MRP list and the stock/requirements list are divided up into various planningsegments. This means that related MRP elements are also displayed together.

The individual stocks, receipts, and issues are displayed and planned within theappropriate segment. The MRP calculation takes place within the individual segments.

Figure 139: Material Tree



Displaying the material tree is optional (this can be set in the user settings). Press the�Material Tree� button.

You can change the layout of the tree and display the following:

� Worklist tree: All materials in the current session are displayed (especially if theinitial access is via collective access).

� Order tree: The individual component requirements for the selected order orrequirement are displayed at several levels (see next page).

� Product group tree: All materials of a product group (only if using collectiveaccess via a product group) are displayed.

You can display the stock/requirements list or MRP list for a material bydouble-clicking on the material in the tree.

For the worklist tree, you can set in which order the fields are to be displayed.User-specific definitions for the traffic lights are also possible. User-specific sortingsand groupings (for example, according to the processing indicator) are possible. Youcan search for specific materials (according to exception messages, for example).

Figure 140: Order Tree

If you work with the order tree in the stock/requirements list or MRP list, the systemdisplays all component requirements relating to a selected order or requirement atseveral levels. This function is based on the order report. If problems occur duringmaterial requirements planning, you are notified by exception messages.



When you navigate in the order tree, the correct stock/requirements list or MRP listis displayed in a chart, and the cursor is positioned on the according componentrequirement. This way you can quickly get an overview of the stock situations inall levels of the order structure.

Figure 141: Display Filter and Selection Rule

You define whether selection rules and display filters are to be used when accessingthe list. This is done by choosing the indicator �With filter� in the initial screen, or inthe list itself by choosing the icon �Filter on�, or in the user-specific settings.

Display filters are used in the stock/requirements list and in the MRP list. This ispurely a display function and display filters have no influence on the MRP elementsthat are used in the calculation of the available quantity. They are defined in the�Define Display Filters� activity in Customizing.

Selection rules can only be used for the current stock/requirements list. Youdefine which MRP elements are displayed and which of these elements areused in the calculation of the available quantity. They enable the analysis in thestock/requirements list of various planning situations that are different with regardto the MRP elements that are taken into account. Selection rules have no influenceon the requirements calculation. They are defined in the �Define Selection Rules�activity in Customizing.



Figure 142: Navigation Profile

A navigation profile contains transaction calls for transactions that can be calleddirectly from the stock/requirements list, or the MRP list. The transactions are eithergeneral, (meaning actions at material level), or they refer to a particular MRP element.

You define a navigation profile in the Customizing activity �Define NavigationProfiles� and you can assign yourself to a profile in the user-specific settings (on the�General Settings� tab page).

In a navigation profile, you can determine any number of transaction calls. However,the display in the list is limited to five general transaction calls and two transactioncalls per MRP element: The system always displays the first five or first twotransaction calls that are relevant for the context.

For each transaction call, you can pre-assign three parameters for the initial screen ofthe transaction. You can also connect the offering of a transaction to certain parametersfrom the material master: Procurement type, material type, MRP group, MRP type.

A function similar to the navigation profiles is available with the selection of personalfavorites, where you can also activate up to five general transaction calls (choose�Environment - Own Favorites�). Apart from that, you can activate two favorites perMRP element as transaction calls (choose the �*� button in the details for the MRPelement).



Figure 143: Settings That Can Be Made Individually ...

You can use your personal settings to specify a number of default display options forthe stock/requirements list and the MRP list.

Your personal settings (as well as your �Own Favorites� in Environment - OwnFavorites) determine the screen that appears when accessing the lists. From the lists,you can change the various settings at any time - for example, you can show or hidethe overview tree.

You define the screen sequence of the header details in the Customizing for the MRPtype.

A user exit for showing user-specific categories is available.





Exercise 16: Functions of theStock/Requirements List

Exercise ObjectivesAfter completing this exercise, you will be able to:� Use the functions and display options for the stock/requirements list,� Make your own personal settings for the display.

Business ExampleAs a member of the project team, you want to familiarize yourself with the displayoptions that are available for the stock/requirements list and the MRP list.

Task 1:You check the personal settings with which you can define the screen for thestock/requirements list and the MRP list and, if necessary, make different settings.

1. From the MRP menu, call the stock/requirements list for material R-F1## inplant 1000. To view the default settings that were used to access the list, chooseSettings→ Settings. The corresponding data is sorted thematically on several tabpages. What are the names of the tab pages?

__________________ ____________________________________ ____________________________________

2. In what form are the requirements displayed with the existing settings (Displaytab page)?

__________________________________________________

__________________________________________________

3. Does the system display the availability date or the goods receipt date as the dateof an MRP element (Dates tab page)?

__________________________________________________




4. Return to the Display tab page and select the fieldWith header details formaterial. Use the Continue function to return to the list. Are the header detailsnow displayed?

______________________________________________________

In the header details, find which strategy group is specified in the material master:

______________________________________________________

Choose Collapse header details from the list.

Task 2:You want to call frequently used transactions directly from the currentstock/requirements list. To do this, assign a navigation profile to your user.

1. From the environment of the stock/requirement list, choose Assign navigationprofile. Use the F4 help to enter the profile SCM001 in the Navigation Profilefield and Copy the entry.

2. Which transaction calls are now displayed above the list header?

__________________ ____________________________________ ____________________________________

3. You decide to copy this setting into your personal settings. To do this, chooseSettings again and save.

4. Exit the stock/requirements list and then call it again. Are the transaction callsdisplayed?

______________________________________________________

Task 3:In the stock/requirements list for material R-F1## (plant 1000), display the materialtree by choosing Show Overview Tree.

1. Which materials are displayed in the overview?

_________________________________________________

_________________________________________________




2. Switch to the stock/requirements list for the material R-B1## by entering thecorresponding material number in the Material field in the list header and chooseEnter.

Which materials are displayed in the material tree now?

_________________________________________________

3. Return to material R-F1## by double-clicking on the corresponding materialnumber in the material tree. Note the message in the status row: The displayedlist has the status of the given time. Refresh (F6), if necessary!

Select the first planned order in the list and switch to the order report byexecuting the Order Report function in the material tree. Confirm the informationmessage. Which materials are displayed in the material tree?

__________________________________________________

__________________________________________________

__________________________________________________

__________________________________________________

__________________________________________________

What connects these materials?

__________________________________________________

__________________________________________________

4. If you prefer to do so, you can make the display of the material tree a defaultsetting for the initial view of the stock/requirements list by choosing Settings andsave. Note that you can choose to display or hide the tree in the list at any time.



Solution 16: Functions of theStock/Requirements ListTask 1:You check the personal settings with which you can define the screen for thestock/requirements list and the MRP list and, if necessary, make different settings.

1. From the MRP menu, call the stock/requirements list for material R-F1## inplant 1000. To view the default settings that were used to access the list, chooseSettings→ Settings. The corresponding data is sorted thematically on several tabpages. What are the names of the tab pages?

__________________ ____________________________________ ____________________________________


Titles of the tab pages:

Display Period totalsDates FilterGeneral settings

2. In what form are the requirements displayed with the existing settings (Displaytab page)?

__________________________________________________

__________________________________________________

a) Display of requirements: The requirements are displayed individually(and are not grouped in days).

3. Does the system display the availability date or the goods receipt date as the dateof an MRP element (Dates tab page)?

__________________________________________________

a) Availability date or goods receipt date: The availability date is displayed.




4. Return to the Display tab page and select the fieldWith header details formaterial. Use the Continue function to return to the list. Are the header detailsnow displayed?

______________________________________________________

In the header details, find which strategy group is specified in the material master:

______________________________________________________

Choose Collapse header details from the list.

a) Header details: Yes

Strategy group in the material master: Varies according to the exercisethat was carried out last (strategy group 40 or 50).

Task 2:You want to call frequently used transactions directly from the currentstock/requirements list. To do this, assign a navigation profile to your user.

1. From the environment of the stock/requirement list, choose Assign navigationprofile. Use the F4 help to enter the profile SCM001 in the Navigation Profilefield and Copy the entry.

a) Menu path: From the list display Environment→ Navigation profile→Assign

2. Which transaction calls are now displayed above the list header?

__________________ ____________________________________ ____________________________________

a) Displayed transaction calls:

Create planned independentrequirement

Single-item, interactive planning

Create customer requirement Display planning file entrySingle-item multi-level planning




3. You decide to copy this setting into your personal settings. To do this, chooseSettings again and save.


4. Exit the stock/requirements list and then call it again. Are the transaction callsdisplayed?

______________________________________________________

a) Transaction calls displayed: Yes

Task 3:In the stock/requirements list for material R-F1## (plant 1000), display the materialtree by choosing Show Overview Tree.

1. Which materials are displayed in the overview?

_________________________________________________

_________________________________________________

a) Materials in material tree: Varies. All the materials that you haveprocessed in the current session are displayed. If you called thematerial tree directly after re-entering the list for material R-F1##,only this material is displayed.

2. Switch to the stock/requirements list for the material R-B1## by entering thecorresponding material number in the Material field in the list header and chooseEnter.

Which materials are displayed in the material tree now?

_________________________________________________

a) Materials in the material tree: Material R-B1## is now also displayed.

3. Return to material R-F1## by double-clicking on the corresponding materialnumber in the material tree. Note the message in the status row: The displayedlist has the status of the given time. Refresh (F6), if necessary!

Select the first planned order in the list and switch to the order report byexecuting the Order Report function in the material tree. Confirm the informationmessage. Which materials are displayed in the material tree?

__________________________________________________

__________________________________________________




__________________________________________________

__________________________________________________

__________________________________________________

What connects these materials?

__________________________________________________

__________________________________________________

a) Materials in the material tree: In addition to R-F1##, materials R-B1##,R-B2##, R-B3##, R-B4##, as well as R-T0##, R-T1##, R-T2##, R-T4##,and R-T5## are displayed.

Reason: These materials are the assemblies and components for thefinished product R-F1## (except for the finished product itself). Thesystem therefore displays all materials that flow into the production ofthe planned order you selected.

4. If you prefer to do so, you can make the display of the material tree a defaultsetting for the initial view of the stock/requirements list by choosing Settings andsave. Note that you can choose to display or hide the tree in the list at any time.






Exercise 17: Display Filter, Selection Rule(Optional)

Exercise ObjectivesAfter completing this exercise, you will be able to:� Use the display filter and selection rule.

Business ExampleAs a member of the project team, you want to familiarize yourself with the functionsof the display filter and the selection rule.

Task:In the stock/requirements list for material R-F1##, choose Filter on. The systemthen displays two new fields in the list header where you can define a display filteror a selection rule.

1. Call the display filter with the description SAP requirements and firmedreceipts. What changes do you see in the display of the MRP elements?

______________________________________________________

2. Do you also see changes in the available quantity that is calculated for eachMRP element?

______________________________________________________

3. Now test the effect of the display filter SAP Only receipts. Which elements arenow displayed?

______________________________________________________

4. Remove the display filter and enter the selection rule with the description SAPRequirements and Stocks instead.

What available quantity is now displayed at the end of the net planning segment?

______________________________________________________

Give a reason for this:

______________________________________________________

______________________________________________________

5. Now choose the Filter off button to work without a display filter or a selectionrule.



Solution 17: Display Filter, Selection Rule(Optional)Task:In the stock/requirements list for material R-F1##, choose Filter on. The systemthen displays two new fields in the list header where you can define a display filteror a selection rule.

1. Call the display filter with the description SAP requirements and firmedreceipts. What changes do you see in the display of the MRP elements?

______________________________________________________

a) Changes to the display: Only requirements and firmed planned orders(if they exist) are now displayed.

2. Do you also see changes in the available quantity that is calculated for eachMRP element?

______________________________________________________

a) Changes to the available quantity: No, the available quantity is notchanged by the display filter.Even without displaying planned orders,the available quantity at the end of the list remains 0 pieces.

3. Now test the effect of the display filter SAP Only receipts. Which elements arenow displayed?

______________________________________________________

a) Effect of the display filter SAP Only make-to-order planning: Only receiptelements are displayed.

4. Remove the display filter and enter the selection rule with the description SAPRequirements and Stocks instead.

What available quantity is now displayed at the end of the net planning segment?

______________________________________________________

Give a reason for this:

______________________________________________________




______________________________________________________

a) Quantity available for planning at the end of the net requirements planningsegment: Varies, for example, minus 350 pcs.

Reason: In contrast to display filters, selection rules have aneffect on the calculation of the available quantity. When using the�Requirements and Stocks� selection rule, only requirements andstocks are included in the calculation. Receipt elements are not takeninto account. In this example, the available quantity is merely the totalof all requirements and stocks.

5. Now choose the Filter off button to work without a display filter or a selectionrule.




Lesson Summary

You should now be able to:� Work with the stock/requirements list� Use the MRP list� Use navigation profiles� Deploy the display filter and selection rules� Use the collective call


SCM240 Lesson: Planning Table

Lesson: Planning Table

Lesson OverviewThe planning table for repetitive manufacturing can also be used for normal�order-based� production. It offers additional options for processing the MRP results.


� Use the planning table for repetitive manufacturing� Use production versions

Business ExampleThe planning table for repetitive manufacturing is particularly useful when you wantto check the capacity situation for a production plan. You therefore need to makepreparations for using this tool.

Planning Table

Figure 144: Planning Table / Period-Based Planning



The planning table enables the work scheduler to process the master productionschedule. They can check the production quantities at a glance, change them ifrequired, and create new production quantities (planned orders). The work schedulercan also determine the capacity load utilization of the production line and theavailability of the products. Pegging can also be executed by double clicking on thecapacity requirements.

The planning table was originally developed for repetitive manufacturing. In repetitivemanufacturing, orders are generally planned according to quantity and period, and thisis reflected in the planning table display. You can choose any planning period (shift,day, week, month, planning calendar period).

In the assignment mode, the work scheduler can assign production quantities (plannedorders) to a production version and therefore to a production line. If this has alreadybeen executed in the MRP run, the work scheduler can also change assignments thathave already been made . Planned orders that have already been manually assigned toa production line are classified as order type �PE� (run schedule quantities) and areusually firmed. This firming method can either be limited to the planning time fenceor completely deactivated for each material using the repetitive manufacturing profile.

In the planning table, you can display various key figures (the range of coverage, theavailable quantity, and so on) and define the display sequence.

Changes you make in the planning table are not written to the database unless yousave them.

Figure 145: Planning in the Planning Table



The entire planning process for period-based production can be carried out using theplanning table. As well as planned orders, you can also display and process productionorders for discrete production and process orders for process manufacturing in theplanning table. Production and process orders are displayed in a separate row -PR.ORD. You can make changes to production orders or process orders by branchingdirectly from the planning table to the orders using change mode. It is, however, notpossible to execute mass change functions such as distribution according to shifts forproduction and process orders.

You can convert planned orders to production orders directly using the �convertquantities� function in the planning table. The system then shows the line PR.ORD: ,where you can view these orders. You must call the planning table again in order tobe able to make changes to these newly created orders.

In order to display production and process orders in the repetitive manufacturingplanning table you need a valid production version in the material master.

Figure 146: Production Version for the Planning Table

To work with the planning table, there must be at least one production version in thematerial master of the corresponding material. The production version contains datarelevant to production that describes a manufacturing process:

� You determine in which period the version can be used in the fields �Valid from�and �Valid to�. You can enter a lot size range for the version in the fields �Fromlot size� and �To lot size�.



� You can define a routing for detailed planning, rate-based planning, andrough-cut planning. You enter a task list group and a group counter for detailedplanning. The routing entered is then used for capacity requirements planning.

� You can uniquely assign a particular BOM to the version using the fields �BOMUsage� and �Alternative BOM�.

� In the �Production Line� field, you define the work center (production line) forthe assignment of production quantities in the planning table. The system onlydisplays the capacity requirements for this work center in the planning table. Inorder to execute capacity planning, this work center (production line) mustbe contained in the routing.

Hint: Extra info on discrete manufacturing compared with repetitivemanufacturing

The planning table is actually a tool for planning in repetitive manufacturing.You should therefore explain at this point the differences between discretemanufacturing and repetitive manufacturing.

� Order-based production (production in individual production orders)

Period-based production (production with certain quantities per period)

� Products change frequently

Product produced unchanged over a longer period of time

� Varying sequence of work centers (complex routings)

Constant flow through production lines (simplified routings)

� Semifinished products often put into interim storage

Semifinished products often processed further without interim storage

� Components staged with reference to order

Components staged at production lines periodically and anonymously

� Status processing

Reduced control effort (no status processing)

� Completion confirmation (backflush) for individual operations or orders

Completion confirmation based on periods (final backflushing)

� Order-based cost monitoring

Period-based cost monitoring



Lesson Summary

You should now be able to:� Use the planning table for repetitive manufacturing� Use production versions



Lesson: Exception Messages

Lesson OverviewException messages draw attention to problems in planning. They therefore constitutean important tool for the MRP controller.


� Interpret exception messages� Make corresponding settings in Customizing

Business ExampleThe exception messages are set in such a way that the MRP controller can locatepotential problems quickly.

Exception Messages

Figure 147: Exception Messages

You use exception messages to help monitor the MRP results. Exception messagesprovide information about specific operations. They alert you to items that requireyour attention (such as a start date in the past, stocks falling below the safety level


SCM240 Lesson: Exception Messages

and so on). The MRP controller can then select those materials from the planningresults in order to process them manually. Exception messages generally indicatethe following: Newly created order proposals from planning, dates in the past (forexample, opening date), problems with BOM explosion or scheduling, reschedulingproposals. In the Customizing activity �Define and Group Exception Messages�, youcan determine the properties of the exception messages. This includes the priority(should several exception messages appear), the splitting of exception messages intoexception groups for the selection, and the creation of the MRP list depending on theexception message created. If several exception messages apply to one MRP element,the priority assigned to these messages determines which messages are displayed. Thesystem displays a maximum of two exception messages for each MRP element. Ifscheduling problems occur, the system displays a relevant exception message in thestock/requirements list and MRP list and displays a rescheduling proposal. If thisproposal is accepted, you must adjust the dates for the receipt element manually.These dates can be adjusted automatically in the display or evaluation of the planningresults (for example, in interactive planning or when the �Display Result� indicatorhas been selected in the initial screen of the planning run): You can accept therescheduling proposal here using the �Reschedule Order Proposal� function.

Figure 148: Old/New Exception Messages

You can differentiate between old and new exceptions in the MRP list if you workwith the processing indicator. For those materials planned in the planning run, thesystem compares the exception messages in the new MRP list with the exceptionmessages in the old list: If one exception message appears in both lists, it is indicated



as an �old� exception message; the remaining exception messages are considered tobe new messages. In the collective list display, you can specifically select only thoselists with new exception messages. When using collective display of the MRP lists,you can specifically select only lists with new exceptions and even search for newand old exceptions in the individual lists.

Customizing exception messages is restricted to:

� The description of each exception message� The priority of each exception message (high numeric value = high priority)� The unique assignment of the message to an exception group� Triggering the creation of an MRP list (if this is agreed in the planning run)� The option to hide the relevant exception message

Note that these settings are valid for all clients.

No provision has been made for exceptions other than the predefined messages.

You can maintain your own description for the exception groups 1 to 7 (of 8).

Figure 149: Rescheduling Check for Firmed Receipts


SCM240 Lesson: Exception Messages

The planning run does not automatically reschedule firmed receipts. If the dates ofthese elements no longer fall within the rescheduling horizon, the system generatesthe following exception messages:

� �Reschedule in operation�, if the requirements date is before that of the receiptelement, - �reschedule out operation�, if the requirements date is after that of thereceipt element

� �Reverse operation�, when the requirement no longer exists.

Using the rescheduling horizon, you can stop the system from using receipts thatare a long time in the future to cover requirements in the near future. In this case,the system checks within the period, which is made up of the in-house productiontime, goods receipt processing time, and the rescheduling horizon (starting from theplanning date), to see if the existing dates for firmed receipts are still suitable orwhether firmed receipts can be rescheduled in to cover requirements. In Customizing,you define at plant level which firmed receipts the system checks. You can maintainthe rescheduling horizon and the tolerance values for each plant and each MRP group.If the system cannot find a receipt element within the rescheduling horizon that can berescheduled in or out to cover requirements, it creates a new one. The reschedulingcheck of firmed elements is not restricted to a horizon. In order to reduce the numberof exception messages, you can set tolerance values for rescheduling in and out. Thesystem only creates an exception message when the difference between the currentreceipt date and the rescheduling date exceeds the given tolerance value.



Lesson Summary

You should now be able to:� Interpret exception messages� Make corresponding settings in Customizing


SCM240 Lesson: Additional Evaluation Aids

Lesson: Additional Evaluation Aids

Lesson OverviewWith the pegged requirement and order report evaluations you can analyze problemsacross all BOM levels. You can use ranges of coverage to spot potential problemsat an early stage.


� Interpret ranges of coverage� Use the pegged requirements display� Use the order report

Business ExampleYou need to make settings for ranges of coverage in such a way that the MRPcontroller can spot future bottlenecks at an early stage.

Additional Evaluation Aids

Figure 150: Stock Days' Supply



The stock days' supply enables you to recognize potential shortages at an early stage.It tells you when the production supply will cease if there are no more receipts.

In the �Safety stock� field in the Customizing activity �Define Receipt Elements forReceipt Days' Supply� you determine for each plant whether the days' supply shouldbe defined as the point where stock falls below the physical stock level (indicator�Safety stock� = �1�) or the safety stock level (indicator = �blank�).

The days' supply is entered in workdays and anything entered after the decimal pointindicates to what portion of the requirement can still be covered on the shortage day(for example a days' supply of 24.6 means that the stock can cover the requirementsfor the next 24 days and on day 25 there will be enough stock to cover 60% of therequirement). You can flag materials with critical days' supplies with a red traffic lightin the stock/requirements list and in the MRP list.

Figure 151: Receipt Days' Supply

The receipt days' supply provides you with information about when the productionsupply will cease if certain firmed receipts are delivered. You can define two differentreceipt days' supplies that differ in terms of the selection of the firmed receipt elementsthat are taken into account.

You select the firmed receipts to be taken account in the calculation for each plant inthe Customizing activity �Define Receipt Elements for Receipt Days' Supply�. In the�Safety Stock� field, you define whether the receipt days' supply should be definedas the point where stock falls below the physical stock level or the safety stock level(see stock days' supply).



Figure 152: Receipt Days' Supply 1 and 2 (Example)

You can analyze two different receipt days' supplies (1 and 2). These two receipt days'supplies differ with regard to the selection of their receipt elements. The selection isdefined in the Customizing IMG activity �Define Receipt Elements for Receipt Days'Supply�. For different firmed receipts you determine one of the following: That theyare not taken into account (blank), that they are taken into account for both receiptdays' supplies (�X�), that they are only taken into account for receipt days' supply 1(�1�), that they are only taken into account for receipt days' supply 2 (�2�).

In the above example, production orders and firmed planned orders are included inthe calculation of receipt days' supply 1, while the receipt days' supply 2 providesinformation on the extent of the range of coverage taking only the production ordersinto account.



Figure 153: Pegged requirement

You can use the �Pegged Requirements� evaluation, which you can access directlyfrom the stock/requirements list and MRP list, to trace from any BOM level acrossother BOM levels which requirements have caused an order proposal and whichindependent requirements (particularly sales orders) are affected by the change in dateor quantity of an order proposal on a lower level.

In the stock/requirements or MRP list, you can navigate directly from the requirementselement to the pegged requirement on the level above. The system displays thestock/requirements or MRP list of the superordinate level and automatically positionsthe cursor on the line of the pegged requirement. This makes it much easier to findpegged requirements on different MRP levels. You can call this function from thedetails display of the requirements element. The function is available for the followingrequirements elements: Dependent requirements, order reservations, stock transferrequirements, stock transfer reservations.



Figure 154: Order Report

The �Order Report� evaluation enables you to gain an overview of the status of allBOM levels from the following MRP elements: Sales order, production order (alsocollective and process order), and planned order. In this way, you can recognizeproblems in the production and procurement of assemblies and components at anearly stage.

You call the transaction directly from the stock/requirements list or MRP list. Thesystem determines which receipt elements are planned for each MRP element. TheMRP controller is therefore able to check how the production of a certain sales orderis progressing, or if there are missing parts or scheduling problems on a particularBOM level or for certain components.





Exercise 18: Collective Display of MRP Lists

Exercise ObjectivesAfter completing this exercise, you will be able to:� Call MRP lists using the collective display,� Use the processing indicator.

Business ExampleYou want to process the MRP lists for the materials for which you are responsibleas MRP controller, and which were created this week. You want to concentrate inparticular on situations for which rescheduling proposals exist. After having clarifiedthe situation in production, you change the scheduled dates of the planned ordersaccording to the rescheduling proposals that are in the MRP list.

Task 1:You will now learn about an option for collective evaluation of your previous planningactivities. To do this, you use the collective display of MRP lists.

1. Starting from the Evaluation menu, call the MRP List - Collective Display.Restrict your selection to MRP lists for materials in plant 1000, for which youare responsible as MRP controller 0##, and for which MRP lists have beencreated in the current week. To do this, enter the following in the initial screen:

Plant: 1000MRP controller: 0##MRP date from: Beginning of the week to: Today

Start the selection by choosing Enter.

How many materials were selected?

______________________________________________________

2. The system displays an overview of the materials selected. In other words, youcan see all the materials for the MRP controller 0##.

Choose Select All and Display selected MRP lists in order to display thecorresponding lists in order (Next Material button).




Which exception messages appear in the MRP lists?

Hint: Double-click on the exception message to view the short text inthe status bar.

______________________________________________________

______________________________________________________

______________________________________________________

Task 2:In the MRP list for the material R-B2## you notice that no further processing isnecessary.

1. You therefore set the processing indicator for this material in the MRP list.

Then exit the collective display for the MRP list and call the transaction again.This time, select the option Only unprocessed MRP lists on the ProcessingIndicator tab page in addition to the selection from task 1 point 1.

Was the material R-B2## you processed before selected too?

____________________________________________________________



Solution 18: Collective Display of MRP ListsTask 1:You will now learn about an option for collective evaluation of your previous planningactivities. To do this, you use the collective display of MRP lists.

1. Starting from the Evaluation menu, call the MRP List - Collective Display.Restrict your selection to MRP lists for materials in plant 1000, for which youare responsible as MRP controller 0##, and for which MRP lists have beencreated in the current week. To do this, enter the following in the initial screen:

Plant: 1000MRP controller: 0##MRP date from: Beginning of the week to: Today

Start the selection by choosing Enter.

How many materials were selected?

______________________________________________________

a) Menu path: Logistics→ Production→MRP→ Evaluations→MRP List -Collective Display

Number of materials selected: Varies, for example 12 materials

2. The system displays an overview of the materials selected. In other words, youcan see all the materials for the MRP controller 0##.

Choose Select All and Display selected MRP lists in order to display thecorresponding lists in order (Next Material button).

Which exception messages appear in the MRP lists?

Hint: Double-click on the exception message to view the short text inthe status bar.

______________________________________________________

______________________________________________________




______________________________________________________

a) Which messages: Varies, for example 42, 44, 30, 10

Hint: Each planning order can contain up to 2 messages - seedetails for the planning order

Task 2:In the MRP list for the material R-B2## you notice that no further processing isnecessary.

1. You therefore set the processing indicator for this material in the MRP list.

Then exit the collective display for the MRP list and call the transaction again.This time, select the option Only unprocessed MRP lists on the ProcessingIndicator tab page in addition to the selection from task 1 point 1.

Was the material R-B2## you processed before selected too?

____________________________________________________________

a) Display the processed material: No



Exercise 19: Rescheduling Check (Optional)

Exercise ObjectivesAfter completing this exercise, you will be able to:� Interpret the rescheduling proposals� Carry out the parameterization of the rescheduling check

Business ExamplePumps with the material number T-F1## (## denotes your group number) can beplanned and produced in plant 1000.

Use a small test case for pump T-F1## as an example for the rescheduling check fordelayed firmed elements and interpret the result.

Caution: Note that in this case, you are using pump T-F1##, plant 1000 andnot pump R-F1##, plant 1000, which you have been using up to now.

Task 1:Enter a customer requirement for pump T-F1## in plant 1000.

1. In the program planning section, call the transaction for creating a customerrequirement.

Choose the following parameters:

Material: T-F1##Order quantity: 2 pcsDelivering plant: 1000Required delivery date: Wednesday of the current week +

5 weeks

Choose Enter to confirm your entries and any information messages.


2. Start multilevel single-item planning for your material T-F1##, plant 1000 andinterpret the result in the stock/requirements list.




Is there an on-time requirement coverage, that is, is the requirement coverageelement able to cover the requirement on time?

____________________________________________________

3. In the stock/requirements list, define the followingmanual firming date:

Availability date of the planned order plus 3 working days

Refresh the list. Is the firming of the planned order visible from the list?

_____________________________________________________

Task 2:The customer subsequently changes the requested delivery date.

1. The new requirements date is now one working day before the original requesteddelivery date.

Change the customer requirement by going to the stock/requirements listand double-clicking to go to the details. In the item (that is, not in the fieldRequested Delivery Date), change the field for the first date accordingly.

Save the customer requirement, return to the stock/requirements list andrefresh it.

Did the postponement take place?

_____________________________________________________

Are you assigned as MRP controller for this postponement, that is, does thesystem issue a rescheduling message? Why (not)? To find out, display thesettings for the rescheduling check in the plant parameters (Customizing).

____________________________________________________________________________________________________________

2. The customer wants to postpone the date by another week (7 calendar days).

Change the date of the customer requirement as before and check the newsituation in the stock/requirements list.

Are you assigned as MRP controller for this postponement, that is, does thesystem issue a rescheduling message? Why (not)?

____________________________________________________________________________________________________________




In this case, would a planning run generate a new on-time procurement element?______________________________________________________

Check your answer by triggering multilevel single-item planning for T-F1##,plant 1000.

Task 3:The examination of the rescheduling check for delayed firmed receipts has terminated.Therefore, remove the test entries:

1. First delete the customer requirement (change mode: Independent requirements→ Delete.

2. In the stock/requirements list, remove the manual firming date (Edit→ Setfirming date→ Delete) and refresh the list.

3. Start single item multilevel planning for T-F1##, plant 1000.



Solution 19: Rescheduling Check (Optional)Task 1:Enter a customer requirement for pump T-F1## in plant 1000.

1. In the program planning section, call the transaction for creating a customerrequirement.

Choose the following parameters:

Material: T-F1##Order quantity: 2 pcsDelivering plant: 1000Required delivery date: Wednesday of the current week +

5 weeks

Choose Enter to confirm your entries and any information messages.



2. Start multilevel single-item planning for your material T-F1##, plant 1000 andinterpret the result in the stock/requirements list.

Is there an on-time requirement coverage, that is, is the requirement coverageelement able to cover the requirement on time?

____________________________________________________

a) Menu path: Logistics→ Production→ MRP→ Planning→ Multi-LevelSingle-Item Planning

Menu path: Logistics → Production → MRP → Evaluations →Stock/Requirements List

On-time requirement coverage: In general, there is an on-time requirementscoverage. Minor differences are possible, for example, if the relevantWednesday is a public holiday. In this case, the requirement coverageelement is made available earlier.

3. In the stock/requirements list, define the followingmanual firming date:

Availability date of the planned order plus 3 working days




Refresh the list. Is the firming of the planned order visible from the list?

_____________________________________________________

a) Menu path: Logistics → Production → MRP → Evaluations →Stock/Requirements List

Edit→ Set Firming Date

Firming: The manual firming date is displayed. The planned order inthe relevant firming interval is flagged as firmed (*).

Task 2:The customer subsequently changes the requested delivery date.

1. The new requirements date is now one working day before the original requesteddelivery date.

Change the customer requirement by going to the stock/requirements listand double-clicking to go to the details. In the item (that is, not in the fieldRequested Delivery Date), change the field for the first date accordingly.

Save the customer requirement, return to the stock/requirements list andrefresh it.

Did the postponement take place?

_____________________________________________________

Are you assigned as MRP controller for this postponement, that is, does thesystem issue a rescheduling message? Why (not)? To find out, display thesettings for the rescheduling check in the plant parameters (Customizing).




____________________________________________________________________________________________________________


Postponement: The postponement took place. However, the system doesnot issue a rescheduling message in this case since the scale of thepostponement (1 working day) is still within the tolerance intervalallowed for the rescheduling check in Customizing.

Menu path: Customizing (transaction SPRO)→ F5→ Production→Material Requirements Planning→ Plant Parameters→ Carry OutOverall Maintenance of Plant Parameters

Maintain→ Plant 1000→ Rescheduling

The tolerance value for bringing forward a requirement is 2 workingdays. Therefore, there is no need for a rescheduling message (yet).

2. The customer wants to postpone the date by another week (7 calendar days).

Change the date of the customer requirement as before and check the newsituation in the stock/requirements list.

Are you assigned as MRP controller for this postponement, that is, does thesystem issue a rescheduling message? Why (not)?

____________________________________________________________________________________________________________

In this case, would a planning run generate a new on-time procurement element?______________________________________________________

Check your answer by triggering multilevel single-item planning for T-F1##,plant 1000.

a) You postpone the date by another week: Yes, you are assigned tothe postponement. A postponement of 8 days is no longer allowedaccording to the parameterization in the plant parameters and leads toa rescheduling message. The MRP controller can tell what the date ofthe procurement proposal should be.

A new planning run does not lead to a new procurement proposalbecause the two elements (requirement and delayed requirementcoverage element) belong together.

Menu path: Logistics→ Production→ MRP→ Planning→ MultilevelSingle-Item Planning




Task 3:The examination of the rescheduling check for delayed firmed receipts has terminated.Therefore, remove the test entries:

1. First delete the customer requirement (change mode: Independent requirements→ Delete.

a) Menu path: Logistics→ Production→ Production Planning→ DemandManagement→ Customer Requirements→ Change

2. In the stock/requirements list, remove the manual firming date (Edit→ Setfirming date→ Delete) and refresh the list.


3. Start single item multilevel planning for T-F1##, plant 1000.

a) Menu path: Logistics→ Production→ MRP→ Planning→ MultilevelSingle-Item Planning



Lesson Summary

You should now be able to:� Interpret ranges of coverage� Use the pegged requirements display� Use the order report


SCM240 Unit Summary

Unit SummaryYou should now be able to:� Work with the stock/requirements list� Use the MRP list� Use navigation profiles� Deploy the display filter and selection rules� Use the collective call� Use the planning table for repetitive manufacturing� Use production versions� Interpret exception messages� Make corresponding settings in Customizing� Interpret ranges of coverage� Use the pegged requirements display� Use the order report


Unit Summary SCM240



Test Your Knowledge

1. The planned orders that are displayed in the planning table cannot be seen inthe stock/requirements list.Determine whether this statement is true or false.□ True□ False

2. Which of the following problems can be displayed using exception messages?Choose the correct answer(s).□ A Scheduling delays in material requirements planning□ B Failed ATP check□ C Unforeseen change of MRP controller□ D Delayed arrival of production operators



Answers

1. The planned orders that are displayed in the planning table cannot be seen inthe stock/requirements list.

Answer: False

Like other documents, planned orders can also be processed using a numberof different transactions: Manual change, stock/requirements list, MRP list,planning table, and so on.

2. Which of the following problems can be displayed using exception messages?

Answer: A

Exception messages point out problems in material requirements planning. Theyusually refer to individual MRP elements.


Unit 6Additional MRP processes

Unit OverviewBased on the functions that the participants have learnt up to now, there aresome additional processes that not all users of demand management and materialrequirements planning use.

This concluding unit gives you an overview of these processes.

These processes are master production scheduling for favored planning of importantparts and long-term planning under which simulated planning is carried out in ECC,separated from productive planning procedures.

In addition, this unit deals with scenarios of multi-site planning (for example,cross-plant stock transfers) and finally MRP areas, for example, for separaterequirements planning for individual locations.


� Define master schedule items� Create the connection between master production scheduling and material

requirements planning� Name the objectives of long-term planning� Analyze the business environment of long-term planning� Describe the long-term planning scenario� Execute long-term planning� Transfer and receive firmed orders� Perform and use multi-site planning� Describe plant organization with MRP areas� Characterize MRP area types� Set up MRP areas� Make specific settings for storage location MRP areas


Unit 6: Additional MRP processes SCM240

� Make corresponding settings in Customizing

Unit ContentsLesson: Master Production Scheduling .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .347

Exercise 20: Master Production Scheduling ... . . . . . . . . . . . . . . . . . . . . . . . . . . . .351Lesson: Long-Term Planning.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .358

Exercise 21: Executing Long-Term Planning ... . . . . . . . . . . . . . . . . . . . . . . . . . . . .375Lesson: Multi-Site Planning ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .389

Exercise 22: Multi-Site Planning (Optional) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .397Lesson: MRP Areas .. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .404

Exercise 23: Planning with Storage Location MRP Areas .. . . . . . . . . . . . . . .417


SCM240 Lesson: Master Production Scheduling

Lesson: Master Production Scheduling

Lesson OverviewYou can use master production scheduling to plan certain materials that are importantfor the planning process separately to other less important materials.


� Define master schedule items� Create the connection between master production scheduling and material

requirements planning

Business ExampleImportant materials that are critical to planning should be planned separately tonormal material requirements planning, with greater attention paid to them.

Master Production Scheduling andMaterial RequirementsPlanning

Figure 155: Master Production Scheduling and Material Requirements Planning(1)



Master production scheduling (MPS) enables you to plan materials that have greatinfluence on value creation for a company, or that use critical resources and thereforeneed to be planned more carefully. It is normally the case for these materials that themaster production schedule is first defined at the level of this critical or importantmaterial before the dependent assemblies and purchased parts are planned andprocured. This means that changes made to these critical parts must not be passed onto the dependent parts immediately, in order to avoid any disruption during productionand procurement of purchased parts.

You plan the master schedule items (MPS items) and the non-master schedule items inseparate planning runs. You can specify finished products or assemblies for masterschedule items provided that you have entered a corresponding MRP type for eachplant or each MRP area in the �MRP 1� view of the material master. You mustdefine the MRP procedure �M� (master schedule item procedure) in this MRP type inCustomizing for MRP types (Customizing activity �Check MRP Types�).

The master production scheduling run only plans the master schedule items. Masterproduction scheduling is executed with the same logic as material requirementsplanning. Dependent requirements are created for the next low-level code.

The results of master production scheduling are not passed on to dependent parts untilthe master plan for the critical parts has been processed and finely-tuned. Masterschedule items are not planned along with the MRP run to ensure that you can planthese materials independently.



Figure 156: Master Production Scheduling and Material Requirements Planning(2)

There are two steps in the total planning run:

1. Master production scheduling (MPS) plans the master schedule items on thebasis of the requirements that exist for these parts (for example, plannedindependent requirements). The MPS run generates planned orders for themaster schedule items and the corresponding dependent requirements at theBOM level below. Capacity leveling is possible at MPS level.

2. MRP plans the other assemblies and components in the BOM structure.

You can combine both steps by setting the indicator �Process MRP Materials� inthe initial screen.





Exercise 20: Master Production Scheduling

Exercise ObjectivesAfter completing this exercise, you will be able to:� Explain the relationship between master production scheduling and material

requirements planning.

Business ExampleSince some finished products, including pump T-F1## use critical resources, theyshould be defined as master production items and planned separately. To do this, theproject team examines the relationship between the planning of master schedule itemsand non-master schedule items.

Task 1:

Hint: Note: In this exercise, you will work with the material T-F1## inplant 1000, and not with R-F1##!

If MRP elements still exist for T-F1## from previous exercises, clean upthese first.

Define material T-F1## in plant 1000 as a master schedule item.

1. Which indicator do you use to make this setting?

______________________________________________________

2. Which entry do you have to make for the indicator so that master productionscheduling with firming type 0 takes effect?

______________________________________________________

Make the entry and save.

3. Check the planning file for the material T-F1## in plant 1000. Which of thefollowing indicators are set?

Master schedule item (MPS) ___________

Planning indicator NETCH ___________

Planning indicator NETPL _____




Task 2:Make sure that strategy group 40 is entered in the material master for the pumpT-F1## in plant 1000, as well as consumption mode 2 and forward/backwardconsumption period 30 days respectively.

1. Create the following planned independent requirements for pump T-F1## inplant 1000 (version 00):

Current month + 2 Current month + 3 Current month + 4100 100 100

Save your entries.

Task 3:Try to execute single-item, multilevel planning for material T-F1## in plant 1000(MD02).

1. Is this possible? _____________

Task 4:Execute single-item, single-level planning for master schedule items (MD42) formaterial T-F1## in plant 1000 from the master production scheduling menu. Use thepreset parameters.

1. Call or refresh the stock/requirements list. Are the planned independentrequirements now covered by corresponding procurement elements?

______________________________________________________

2. Check the planning file. Which of the following indicators are now set?



Planning indicator NETPL ______

Task 5:From the master production scheduling menu, call the initial screen for online totalplanning for master schedule items (MD40).

1. Which indicator determines whether planning should consider only masterschedule items or also non-master schedule items?




____________________________________________________________

Hint: Do not execute total planning; exit the transaction.



Solution 20: Master Production SchedulingTask 1:

Hint: Note: In this exercise, you will work with the material T-F1## inplant 1000, and not with R-F1##!

If MRP elements still exist for T-F1## from previous exercises, clean upthese first.

Define material T-F1## in plant 1000 as a master schedule item.

1. Which indicator do you use to make this setting?

______________________________________________________

a) Indicator that a material is a master schedule item: MRP type

2. Which entry do you have to make for the indicator so that master productionscheduling with firming type 0 takes effect?

______________________________________________________

Make the entry and save.

a) MRP type for master schedule item with firming type 0: M0 (can beverified in the material master in the MRP 1 view, F4 help for the MRPType field)

3. Check the planning file for the material T-F1## in plant 1000. Which of thefollowing indicators are set?



Planning indicator NETPL _____

a) Menu path: Logistics→ Production→ MRP→ Planning→ PlanningFile Entry→ Display

Indicators set in the planning file:

Master schedule item: Yes






Task 2:Make sure that strategy group 40 is entered in the material master for the pumpT-F1## in plant 1000, as well as consumption mode 2 and forward/backwardconsumption period 30 days respectively.

1. Create the following planned independent requirements for pump T-F1## inplant 1000 (version 00):

Current month + 2 Current month + 3 Current month + 4100 100 100

Save your entries.


Task 3:Try to execute single-item, multilevel planning for material T-F1## in plant 1000(MD02).

1. Is this possible? _____________

a) Single-item, multi-level planning for master schedule item possible: No

Task 4:Execute single-item, single-level planning for master schedule items (MD42) formaterial T-F1## in plant 1000 from the master production scheduling menu. Use thepreset parameters.

1. Call or refresh the stock/requirements list. Are the planned independentrequirements now covered by corresponding procurement elements?

______________________________________________________

a) Menu path: Logistics→ Production→ Production Planning→ MPS→MPS→ Single-Item, Single-Level

Planned independent requirements covered by procurement elements: Yes

2. Check the planning file. Which of the following indicators are now set?






Planning indicator NETPL ______

a) Indicators set in the planning file:

Master schedule item: Yes



Task 5:From the master production scheduling menu, call the initial screen for online totalplanning for master schedule items (MD40).

1. Which indicator determines whether planning should consider only masterschedule items or also non-master schedule items?

____________________________________________________________

Hint: Do not execute total planning; exit the transaction.

a) Menu path: Logistics→ Production→ Production Planning→ MPS→MPS→ Total Planning→ Online

Consider non-MPS items indicator: Process MRP materials



Lesson Summary

You should now be able to:� Define master schedule items� Create the connection between master production scheduling and material

requirements planning



Lesson: Long-Term Planning

Lesson OverviewLong-term planning enables you to simulate a demand program at all BOM levels.


� Name the objectives of long-term planning� Analyze the business environment of long-term planning� Describe the long-term planning scenario� Execute long-term planning� Transfer and receive firmed orders

Business ExampleYou want to use long-term planning to assess the feasibility of new demand programs.

The firmed master production schedule is to be transferred to operative planning.

Objectives of Long-Term Planning

� Simulation of a demand program at all BOM levels� Reconciliation of capacities� Reconciliation of cost center planning� Purchasing forecast� Inventory controlling forecast

In long-term planning, future demand programs are simulated within a planning run.Capacity requirements, the activity type requirement of the cost centers, and thepurchased parts requirement can be calculated in this way. The demand program thatcan be simulated may include planned independent requirements and/or sales orders.The material requirements planning, capacity planning, order volumes, purchasingbudget, cost center planning and inventory controlling can be evaluated and optimizedfrom the simulation. After the simulative planning results are evaluated, the previousdemand program can be replaced with the preferred long-term planning version. Theexternal procurement data can be transferred to the purchasing information systemusing a special report and evaluated there. Future stock is derived from existingrequirements and future receipts. The data determined in long-term planning for therequirements/stock situation can be transferred to inventory controlling and evaluatedthere using the standard analysis.


SCM240 Lesson: Long-Term Planning

The data determined in long-term planning for the activity requirement is transferred toCost Center Accounting as planning data. This allows you to calculate the productioncosts for each cost center and to cost the products. The activity requirements that aredetermined in long-term planning can be transferred to Cost Center Accounting usinga separate report after long-term planning has been completed. The planning data forthe cost centers is updated by determining the activity requirements from the routingdata. Cost Center Accounting displays how many activities production has planned.

Figure 157: Simulative Planning Areas

The principle of long-term planning is to simulate different versions of the demandprogram. The simulation can include operative data (for example, master data, salesorders, purchase orders, production orders). The simulation can be used to optimizematerial requirements planning, capacity planning, order volumes, purchasing budget,cost center planning, and inventory controlling in the demand program and theproduction and procurement data.

In long-term planning, independent �planning areas� can be created that are integratedinto operative planning. Within these planning areas, separate simulation stock data iscalculated and maintained which can be used to carry out planning in scenarios. Anseparate simulative planning area exists for each scenario in the system. Operativedata can be copied to or referenced (taken into account) by one or more simulativeplanning areas.



Simulative planning can be executed for the long term or short term. There is notime restriction on the execution of long-term planning. The planning periods forlong-term planning and operative planning should be coordinated to avoid businessinconsistencies.

Figure 158: Embedding in the Functional Environment



Long-term planning can be executed on the basis of operative master data: bill ofmaterials, routings and material master records. Therefore, you do not have to createany new operative data. If you want to simulate situations that use different masterdata, you can also create special master data for long-term planning:

� You can create special long-term planning routings and run simulationswith regard to lead time scheduling and capacity planning. To do this, youmust maintain a routing selection ID that controls the long-term routing inCustomizing. This selection ID is assigned to a scenario, that is, a simulativeplanning area, in the Customizing IMG activity �Define Scheduling Parametersfor Planned Orders�.

� In addition, you can use special long-term planning BOMs. To do this, youdefine a special usage for long-term planning in the Customizing IMG activity�Define BOM Usages� and determine the allowed material types for the BOMheader and BOM item for this usage. In the Customizing IMG activity �DefineOrder of Priority for BOM Usages�, you then maintain a BOM selection IDthat calls up the long-term BOM. This selection ID is assigned to a simulativeplanning area when creating the scenario in the �BOM selection ID� field. Thetools available for long-term planning are used in the same way as the tools inoperative planning. Therefore, very little additional training is required.

You can exclude BOM items from long-term planning using the explosion controlindicator in the individual items.

Figure 159: Planning Scenario (1)



When you create a planning scenario, you load certain settings for the scenarioby selecting one of the following default settings: �Long-term planning�, �Grosslong-term planning� or �Short-term simulation�. You can change these default settingsat any time. You can also copy the settings from another scenario. If you select the�Gross Long-Term Planning� indicator on the initial screen, the system proposescontrol parameters for planning the requirements quantities for cost evaluation andbudgeting purposes, without taking operative, available stocks, material-specificlot sizes or scrap into account.

In the planning scenario, the settings you make and items you define include:

� The plants for which the simulation is to be executed� The planned independent requirements versions (active or inactive) that are

to be simulated� The opening stock on which the simulation is based (zero stock, safety stock,

plant stock at the time of planning, average plant stock)� Whether fixed receipts (purchase orders, production orders, material

reservations) are to be included in the net requirements calculation� Whether dependent requirements are generated for consumption-based materials,

KANBAN materials and bulk material� Which version of the available capacity is used in the simulation.

Figure 160: Consumption-Based Materials



Consumption-based materials are not planned in MRP because no dependentrequirements are created for these materials. In consumption-based planning,materials are not replenished during the MRP run until stock falls below the reorderpoint, or in forecast-based planning until the forecasts for future consumptionrequirements are not covered.

In long-term planning, dependent requirements can be created for consumption-basedmaterials, bulk material, and KANBAN materials, that is, the material is planned inthe scenario as though it were a material planned using MRP. You are thus providedwith a preview of the procurement quantities that are necessary to satisfy the simulatedindependent requirements.

You can analyze the forecast more closely in the Purchasing Information Systemin the long-term planning evaluations.

Figure 161: Planning Scenario (2)



In the planning scenario you also set :

� Whether the system should work with direct production, that is, whether duringplanning it should create a collective order for materials that are to be produceddirectly. When using direct production in long-term planning, only the headerorder can be changed and not the subordinate orders in the collective order.

� Whether the long-term planning should be executed as gross requirementsplanning and whether the calculation of scrap in the long-term planning runshould be deactivated.

� Whether long-term planning BOMs should be used.� Whether firmed planned orders are to be transferred (copied) from operative

material requirements planning to long-term planning (the firmed plannedorders can be changed) and whether firmed purchase requisitions in operativeplanning are to be taken into account in the simulative planning area (thesecannot be changed).

� Whether the planning time fence applies in long-term planning for materials thatare affected by a planning time fence in MRP.

� Whether sales orders are to be included in long-term planning (these cannot bechanged from long-term planning).

� Whether make-to-order production or individual project planning should beexecuted for the materials in the corresponding strategy. Make-to-order planningpresupposes that sales orders with a requirements type for make-to-orderplanning are taken into account. If the �Make-to-order and project planning�indicator is not set, the sales orders with a make-to-order planning requirementstype are ignored in the scenario.



Figure 162: Simulative Planned Independent Requirements

Several planned independent requirements versions can be created for one material.

Planned independent requirements versions can be created using the following:

� The sales and operations planning for a material or a product group� The results of flexible planning from sales and operations planning� Forecasting� Planned independent requirements of other materials� Planned independent requirements versions of the same materials� Manually

A planned independent requirements version can be set as active or inactive. Inactiveversions are created for simulation purposes. Only active planned independentrequirements versions are taken into account in operative planning.

If, according to the settings in the scenario, sales orders are included along withplanned independent requirements in the simulative planning area, then these areconsumed here according to the same logic as in operative demand management.



Long-Term Planning Run

Figure 163: Executing Long-Term Planning

A planning scenario must be released before long-term MRP can be carried out.Once the planning scenario is released, planning file entries for all materials of theplants that are assigned to the planning scenario are created in the background.Each scenario thus has its own planning file for long-term planning. Depending onhow the scenario is configured, external requirements and fixed receipts may betransferred to long-term planning in addition to the assigned planned independentrequirements. If you set the �Consider Sales Orders� indicator, sales orders and alsoSD scheduling agreements, contracts and deliveries can be taken into account. The�Include Firm Receipts� indicator, on the other hand, refers to production orders,purchase orders, scheduling agreement schedule lines, reservations, shipment releasesand QM inspection lots. Operative data that flows into long-term planning cannotbe changed in the simulative planning area. Firm operative planned orders arethe exception: The order headers for firmed planned orders (i.e., basic dates andorder quantity) are copied to the simulative area, but the capacity requirements anddependent requirements are not copied in. (You control the transfer of firmed plannedorders in the initial screen of the planning run.) Only (simulative) planned orders arecreated in long-term planning. Long-term planning can be executed as total planning,single-item planning, single-item planning in simulation mode or using the repetitivemanufacturing planning table. After the simulative planning results have beenevaluated and adjusted, the required planned independent requirements version can



be activated in the planning scenario and assigned a new version number if required.When you activate the planned independent requirements version, it becomes relevantfor operative planning. You can also transfer firmed, simulative planned orders fromlong-term planning to operative planning.

Figure 164: Transferring Firmed Planned Orders

You can copy firmed planned orders from operative MRP to the simulative planningarea. Only the planned order headers are copied during the copying process. Changesto components of planned orders that have been made in operative planning are notcopied. With simulative planning, the planned order components are created againaccording to the BOM selected in the simulative planning run.

The firmed planned orders are copied per material by the simulative planning runin the simulative planning area. During this process, all firmed planned ordersare selected for each material of a BOM structure and are adopted (copied to thesimulative planning area). These are also firmed in long-term planning but can bechanged manually there.

The order finish date of the planned order that was selected and copied last is savedas the temporary end of the copying period for each material. The copying period isdetermined by the firmed operative planned order that is furthest in the future.

When copying a firmed planned order from operative planning, all firmed andunfirmed simulative planned orders in the simulative planning area with order finishdates within the copying period are deleted.



Figure 165: Planning Levels for Capacity Data

Capacity data can usually be found at various levels:

� At detailed scheduling level in operative MRP� At detailed scheduling level in long-term planning, whereby the data is managed

separately for each scenario� At rough-cut planning level in Sales and Operations Planning

The capacity evaluations in operative MRP and in long-term planning are executedseparately. Only capacity requirements derived from production orders that are takeninto account as fixed receipts in long-term planning are transferred into the capacityevaluation of the relevant scenario.



Figure 166: Capacity Check with Overload Display

The same capacity planning functions are available in long-term planning as formaterial requirements planning. Capacity planning can be called from plannedorder processing, the planning result for single-item planning, or from thestock/requirements list.

In the capacity check of the stock/requirements list, the available capacity, the totalcapacity requirements independent of materials and the capacity requirements of thismaterial are displayed in periods for each work center and capacity category. Overloadsituations are highlighted in color. The overload function calculates the maximum loadfor each work center and capacity category and the overload is highlighted in color.

A planning run with the scheduling indicator �2� (lead time scheduling and capacityplanning) is a prerequisite for the capacity check. The planning run with schedulingindicator �1� (basic date scheduling) does not reduce capacity requirements.



Figure 167: Long-Term Planning and Operative Planning

The operative demand program results from the total of all active planned independentrequirement versions.

You can �activate� a planned independent requirement in two ways:

1. By setting the active indicator of the planned independent requirementsversion: as the operative planning is the total of all active planned independentrequirements versions, this procedure is the equivalent of an addition to theplan up to now.

2. �Activate� it in the scenario: The source planned independent requirementsversion is then transferred (copied) into a target planned independentrequirements version. If an active version is selected as the target version forthe transfer and the periods in which planned independent requirements exist inthe source and target versions overlap, the planned independent requirementsof the target version are overwritten by the planned independent requirementsof the source version in these overlapping periods.



Figure 168: Transferring Firmed Planned Orders (1)

Following the simulation, you can transfer firmed simulative planned orders for asimulative planning area to operative planning (copied to the operative planning area).In the operative area, you can create purchase requisitions or schedule lines formaterials procured externally.

This type of copying is carried out for a material in the transaction �interactivesingle-item planning� in operative MRP. In the following screen of the planningresults, copying is triggered using the Edit→ Copy Simulative Planned Ordersfunction. You explicitly define the start and finish of the copying period for thisprocess.

All firmed planned orders with order finish dates within the selected period are copiedfrom the simulative planning area to the operative planning area. In the operativeplanning area, all firmed and unfirmed planned orders with an order finish date withinthe copying period are deleted, so that only the copied planned orders remain inoperative planning in this period.

If operative planned orders were converted into production orders before the transfer,the production orders still remain after the transfer of the planning results and thecopied firmed planned orders are added to them. You can avoid unnecessary doubleprocurement if you convert the planned orders into production orders before the startof simulative planning and have defined in the planning scenario that all firmedreceipts are taken into account in long-term planning.



Figure 169: Transferring Firmed Planned Orders (2)

After the simulation, you can transfer firmed simulative planned orders for asimulative planning area to operative planning. For materials procured externally, youcan create firmed purchase requisitions or firmed schedule lines for simulative plannedorders with order type �NB� when transferring the orders to the operative area. Todo this, enter the respective creation indicators in the initial screen of interactivesingle-item planning in the MRP menu in the �Create Purchase Requisition� and�Schedule Lines� fields (purchase requisitions or schedule lines, schedule lines in theopening period or purchase requisitions in the opening period). For schedule lines tobe created, the scheduling agreement item must be entered in the firmed simulativeplanned order before the transfer takes place. You achieve this by maintainingthe scheduling agreement item as relevant to MRP before the long-term planningrun in the simulative area. After the transfer, the firmed planned orders, purchaserequisitions, and schedule lines are displayed in the planning result. Once you savethe planning result, the transfer to operative planning is complete. If there werenon-firmed purchase requisitions and schedule lines in the copying period in operativeplanning, these are deleted during the transfer of the planning result, and the purchaserequisitions and schedule lines that were created during the transfer are used in theoperative planning. If the purchase requisitions and schedule lines were firmed inoperative planning, they are still used after the transfer of the planning results. Youcan avoid unnecessary double purchase requisitions and schedule lines, if you have setbeforehand in the planning scenario that all firmed receipts are taken into account inthe long-term planning.



Figure 170: Long-Term Planning: Initial Data

The following items can be transferred to the simulative planning area:

� Active or inactive planned independent requirements versions� Sales orders� Firmed, operative planned orders� Firmed purchase requisitions� Production orders� Purchase orders



Figure 171: Long-Term Planning: Results Data

The following items can be transferred from the simulative to the operative planningarea:

� Active planned independent requirements versions� Firmed, simulative planned orders (as purchase requisitions or scheduling

agreement schedule lines for externally procured materials)



Exercise 21: Executing Long-Term Planning

Exercise ObjectivesAfter completing this exercise, you will be able to:� Create a scenario for long-term planning,� Execute and evaluate a long-term planning run.

Business ExampleA future demand program is to be simulated for pump R-F1## in plant 1000,and a capacity consideration should also be made. Dependent requirements forconsumption-based materials should also be calculated in order to check the existingframework agreements with the vendors.

Task 1:Check or change material masters:

1. Make sure that strategy group 40 is entered in the material master for thefinished product R-F1## in plant 1000, as well as consumption mode 2 andforward/backward consumption period 30 days respectively (MRP 3 view).

2. From the long-term planning menu, enter the inactive planned independentrequirements for the material R-F1## in plant 1000 in the planned independentrequirement version ##. Set the planning period to monthly format byentering the indicatorM in the planning period field in the initial screen forthe transaction. In the Selected version field, enter the planned independentrequirement version ## (= your group number). Start the transaction and createthe following requirements:

Current month + 7 350Current month + 8 350Current month + 9 350Current month + 10 350Current month + 11 300Current month + 12 450

Hint: Remember that you have to deactivate the active indicator.




Save the planned independent requirements.

Task 2:Create a planning scenario:

1. From the long-term planning menu, create a planning scenario in order tosimulate the demand program for planned independent requirement version ##.When accessing the scenario, choose the default value indicator Long-termplanning.

Use the following data::

Scenario number: 0## (## = group number)

Text of scenario: Long-term scenario ##

Confirm your entries with Enter and make the following settings:

Planning period From 1. Day of the current month + 7To Last day of the current month + 12

Safety stock as opening stock;

Generate dependent requirements for consumption-based planningmaterials;

Do not include sales orders from operative planning;

Switch off the planning time fence;

Do not use direct production;

Do not use make-to-order and project planning;

Do not include firm receipts (purchase orders, production orders, andmaterial reservations);

Do not include firm purchase requisitions;

Do not include firm planned orders.

Do not exit the transaction.

2. The planned independent requirement version ## in plant 1000 is to be simulatedin the scenario. To do this, assign plant 1000 to the scenario by choosing Plantsand making the respective entry with New Entry. Confirm your entry.




Then choose Planned Independent Requirements and New Entry, enter plannedindependent requirements version ## and Confirm this entry also.

3. Release the scenario. To do this, execute the Release + Save function in thescenario. The planning file entries for the materials in the assigned plants shouldbe created immediately.

Task 3:Examine the current requirements/stock situation for scenario 0##. To do this, call thestock/requirements list from the evaluations for long-term planning and enter materialnumber R-F1##, plant 1000, and scenario 0##.

Hint: It is a good idea to call the stock/requirements list for the scenario in aseparate session, since you use it to constantly monitor the planning progress.

1. Does the system display the planned independent requirements for the version## that flow into scenario 0## in the list?

2. Do these planned independent requirements that flow into scenario 0## alsoappear on the operative stock/requirements list that you access from the MaterialRequirements Planning menu?

______________________________________________________

Why (not)?

______________________________________________________

Task 4:Execute long-term planning for material R-F1## in plant 1000 and scenario 0##.Since you want to look at the capacity situation in scenario 0## later, which is relevantfor the production of material R-F1##, the capacity requirements should be created inlong-term planning. From the long-term planning menu, call (long-term) single-item,multilevel planning.

1. Enter the following parameters on the initial screen:

Planning scenario: 0##Material: R-F1##Plant: 1000




Processing key: NETCHScheduling: 2 (lead-time scheduling and capacity planning)Include firmed plannedorders:

1 (Use setting in the planning scenario)

Also plan unchanged components: Select.Display results: Do not select.Display material list: Select.Simulation mode: Do not select.

Hint: Pay particular attention to scheduling indicator 2.

First save your settings and start the long-term planning run by choosing Entertwice.

Task 5:Evaluate the current requirements/stock situation for scenario 0##.

1. Did the system create procurement elements to cover your planned independentrequirements?

______________________________________________________

2. Switch to material R-T3## in the stock/requirements list for scenario 0##. Whatis the MRP type of the material and what significance does this have?

______________________________________________________

Did long-term planning create dependent requirements?

______________________________________________________




Task 6:Evaluation of the capacity situation: From the stock/requirements list for materialR-F1## in plant 1000 for scenario 0##, go to the capacity situation.Select Detailedplnng as the planning type and weeks as the period overview. For the evaluationperiod, enter the start and end dates of the planning period that you have alreadyentered in the scenario definition (the first day of the current month + 7 to the lastday of the current month + 12). To start the capacity evaluation, press Continue.

1. Did the system create any capacity overloads? _____________________

Hint: You can use the arrow at the very bottom in the transaction toswitch between capacities.

2. How many percent overload at which work center, in which capacity category,and in what period (enter some data as an example)?

Work center Capacitycategory

Period Max. load (in percent)

Task 7:In the period with the largest overload, select the Total Requirement field (absoluteamounts, not as a percentage) and choose the Pegged requirements button to evaluatethe pegged capacity requirement.

1. Which planned orders cause the capacity load?

____________________________________________________________

2. To adjust the capacity load to suit the available capacity, reduce the plannedindependent requirements for the last of the planned orders causing thecapacity overload by 50 pieces (take account of your version number ##).

Hint: Make sure that the active indicator is not / will not be set in theplanned independent requirement.

Save the changed planned independent requirements.




3. Repeat the (long-term) single-item, multilevel planning for material T-F1##,in plant 1000, scenario 0## with the previously saved parameter settings andevaluate the capacity situation in the stock/requirements list again.

Are there still capacity overloads? _______________

Task 8:You have adjusted the capacities of your production plan in long-term planning andnow want to transfer it to operative planning. You therefore activate the inactiveplanned independent requirements that were simulated in scenario 0##.

1. You activate the planned independent requirements in the Change PlanningScenario transaction, which you can call for scenario 0## from the Long-TermPlanning menu. Choose Active Independent requirements. In the dialog boxthat appears, select planned independent requirements version ## and enterplanned independent requirements version number 00 as the target version.(The proposed transfer period is the period you specified as the planning periodin the scenario.) Delete the Test mode indicator, select the Create list indicatorand choose Activate.

2. Call the operative stock/requirements list. Are the VSF requirements that youhad created in long-term planning displayed? _________________

Which planned independent requirements version contains theserequirements? (To answer this question, display the Element from the list.)________________________________________



Solution 21: Executing Long-Term PlanningTask 1:Check or change material masters:

1. Make sure that strategy group 40 is entered in the material master for thefinished product R-F1## in plant 1000, as well as consumption mode 2 andforward/backward consumption period 30 days respectively (MRP 3 view).


2. From the long-term planning menu, enter the inactive planned independentrequirements for the material R-F1## in plant 1000 in the planned independentrequirement version ##. Set the planning period to monthly format byentering the indicatorM in the planning period field in the initial screen forthe transaction. In the Selected version field, enter the planned independentrequirement version ## (= your group number). Start the transaction and createthe following requirements:

Current month + 7 350Current month + 8 350Current month + 9 350Current month + 10 350Current month + 11 300Current month + 12 450

Hint: Remember that you have to deactivate the active indicator.

Save the planned independent requirements.

a) Menu path: Logistics→ Production→ Production Planning→ Long-TermPlanning→ Planned Indep. Reqmts→ Create




Task 2:Create a planning scenario:

1. From the long-term planning menu, create a planning scenario in order tosimulate the demand program for planned independent requirement version ##.When accessing the scenario, choose the default value indicator Long-termplanning.

Use the following data::

Scenario number: 0## (## = group number)

Text of scenario: Long-term scenario ##

Confirm your entries with Enter and make the following settings:

Planning period From 1. Day of the current month + 7To Last day of the current month + 12

Safety stock as opening stock;

Generate dependent requirements for consumption-based planningmaterials;

Do not include sales orders from operative planning;

Switch off the planning time fence;

Do not use direct production;

Do not use make-to-order and project planning;

Do not include firm receipts (purchase orders, production orders, andmaterial reservations);

Do not include firm purchase requisitions;

Do not include firm planned orders.

Do not exit the transaction.

a) Menu path: Logistics→ Production→ Production Planning→ Long-TermPlanning→ Scenario→ Create

2. The planned independent requirement version ## in plant 1000 is to be simulatedin the scenario. To do this, assign plant 1000 to the scenario by choosing Plantsand making the respective entry with New Entry. Confirm your entry.




Then choose Planned Independent Requirements and New Entry, enter plannedindependent requirements version ## and Confirm this entry also.


3. Release the scenario. To do this, execute the Release + Save function in thescenario. The planning file entries for the materials in the assigned plants shouldbe created immediately.


Task 3:Examine the current requirements/stock situation for scenario 0##. To do this, call thestock/requirements list from the evaluations for long-term planning and enter materialnumber R-F1##, plant 1000, and scenario 0##.

Hint: It is a good idea to call the stock/requirements list for the scenario in aseparate session, since you use it to constantly monitor the planning progress.

1. Does the system display the planned independent requirements for the version## that flow into scenario 0## in the list?

a) Menu path: Logistics→ Production→ Production Planning→ Long-TermPlanning→ Evaluations→ Stock/Reqmts List

Planned independent requirements of version ## displayed: Yes

2. Do these planned independent requirements that flow into scenario 0## alsoappear on the operative stock/requirements list that you access from the MaterialRequirements Planning menu?

______________________________________________________

Why (not)?

______________________________________________________

a) Independent requirements also in operative stock/requirements list: No

Reason: Only active planned independent requirement versions are takeninto account (and displayed) in operative planning. The independentrequirement version ## is, however, not active.




Task 4:Execute long-term planning for material R-F1## in plant 1000 and scenario 0##.Since you want to look at the capacity situation in scenario 0## later, which is relevantfor the production of material R-F1##, the capacity requirements should be created inlong-term planning. From the long-term planning menu, call (long-term) single-item,multilevel planning.

1. Enter the following parameters on the initial screen:

Planning scenario: 0##Material: R-F1##Plant: 1000Processing key: NETCHScheduling: 2 (lead-time scheduling and capacity planning)Include firmed plannedorders:

1 (Use setting in the planning scenario)

Also plan unchanged components: Select.Display results: Do not select.Display material list: Select.Simulation mode: Do not select.

Hint: Pay particular attention to scheduling indicator 2.

First save your settings and start the long-term planning run by choosing Entertwice.

a) Menu path: Logistics→ Production→ Production Planning→ Long-TermPlanning→ Long-Term Planning→ Single-Item, Multi-Level

Task 5:Evaluate the current requirements/stock situation for scenario 0##.

1. Did the system create procurement elements to cover your planned independentrequirements?




______________________________________________________

a) Procurement elements created: Yes

2. Switch to material R-T3## in the stock/requirements list for scenario 0##. Whatis the MRP type of the material and what significance does this have?

______________________________________________________

Did long-term planning create dependent requirements?

______________________________________________________

a) MRP type of material R-T3##:

VB: Reorder point planning

Dependent requirements created: Yes (SimReq)

Task 6:Evaluation of the capacity situation: From the stock/requirements list for materialR-F1## in plant 1000 for scenario 0##, go to the capacity situation.Select Detailedplnng as the planning type and weeks as the period overview. For the evaluationperiod, enter the start and end dates of the planning period that you have alreadyentered in the scenario definition (the first day of the current month + 7 to the lastday of the current month + 12). To start the capacity evaluation, press Continue.

1. Did the system create any capacity overloads? _____________________

Hint: You can use the arrow at the very bottom in the transaction toswitch between capacities.

a) Capacity overloads: In general, yes (see also the �Overload� or�Capacities� buttons)

2. How many percent overload at which work center, in which capacity category,and in what period (enter some data as an example)?




Work center Capacitycategory


a)

Workcenter

Cap.cate-gory


R-L## 001 Varies varies (for example, 171.5)R-L## 002 Varies varies (for example, 171.5)

Task 7:In the period with the largest overload, select the Total Requirement field (absoluteamounts, not as a percentage) and choose the Pegged requirements button to evaluatethe pegged capacity requirement.

1. Which planned orders cause the capacity load?

____________________________________________________________

a) Planned orders causing capacity load: Varies

2. To adjust the capacity load to suit the available capacity, reduce the plannedindependent requirements for the last of the planned orders causing thecapacity overload by 50 pieces (take account of your version number ##).

Hint: Make sure that the active indicator is not / will not be set in theplanned independent requirement.

Save the changed planned independent requirements.


3. Repeat the (long-term) single-item, multilevel planning for material T-F1##,in plant 1000, scenario 0## with the previously saved parameter settings andevaluate the capacity situation in the stock/requirements list again.

Are there still capacity overloads? _______________

a) Capacity overload: Generally no.




Task 8:You have adjusted the capacities of your production plan in long-term planning andnow want to transfer it to operative planning. You therefore activate the inactiveplanned independent requirements that were simulated in scenario 0##.

1. You activate the planned independent requirements in the Change PlanningScenario transaction, which you can call for scenario 0## from the Long-TermPlanning menu. Choose Active Independent requirements. In the dialog boxthat appears, select planned independent requirements version ## and enterplanned independent requirements version number 00 as the target version.(The proposed transfer period is the period you specified as the planning periodin the scenario.) Delete the Test mode indicator, select the Create list indicatorand choose Activate.


2. Call the operative stock/requirements list. Are the VSF requirements that youhad created in long-term planning displayed? _________________

Which planned independent requirements version contains theserequirements? (To answer this question, display the Element from the list.)________________________________________

a) VSF requirements displayed: Yes

Planned independent requirement version: 00



Lesson Summary

You should now be able to:� Name the objectives of long-term planning� Analyze the business environment of long-term planning� Describe the long-term planning scenario� Execute long-term planning� Transfer and receive firmed orders


SCM240 Lesson: Multi-Site Planning

Lesson: Multi-Site Planning

Lesson OverviewStock transfers from the plant to the distribution center of an enterprise play animportant role. You want to display some of these processes.


� Perform and use multi-site planning

Business ExampleSome of your pumps, which were produced during make-to-stock production, are soldout in some of your distribution centers.

You want to correct this by producing pumps in the production plants and thentransferring them to the distribution centers.

Figure 172: Overview: The Stock Transfer Process



A stock transfer between two plants can be executed using different procedures. Atransfer posting uses only the component "materials management" (MM). In contrastto a storage-location-to-storage-location stock transfer, a plant-to-plant transfer alwaysaffects material requirements planning.

A change in the plant stock is taken into account by MRP. Two procedures areavailable for the physical transfer of materials from one plant to another:

� One-step procedure� Two-step procedure

The procurement of a material using a stock transfer process is defined in thematerial master using a special procurement type of the type "Stock transfer", whichcategorizes the relevant procurement type in more detail. You must define a specialprocurement type for each supplying plant in Customizing for requirements planning.

Figure 173: One Step Stock Transfer (Transfer Posting)

When companies want a very simple process of transferring stock from one plant toanother, they can make use of the one step procedure. This procedure is normally usedif the plants are close together and the transit time and transit costs are not very high,and therefore do not play a role in planning (for example, a plant and distributioncenter with two plant codes and the same physical location).



In the case of the one-step procedure, the goods issue and goods receipt are posted ina single material document. You must therefore enter all relevant data, such as thematerial, issuing plant, issuing storage location, receiving plant, and receiving storagelocation in this one step. The movement type in the standard system is 301.

Figure 174: Two Step Stock Transfer (Transfer Posting)

In the case of the two-step procedure, when removing the material from storage(movement type 303), you must specify the receiving plant in addition to the materialand the issuing organizational levels. This is necessary because valuation of the stocktransfer takes place when the material is removed from storage and posted to stockin transfer at the receiving plant. You can either enter the put away (movement type305) with reference to the material document of the stock removal or enter all datamanually. As a result of the put away, the quantity is booked out of stock in transferand into unrestricted-use stock at the receiving plant. Valuation of the put away is notnecessary, since the stock in transfer and the unrestricted-use stock at the receivingstorage location belong to the same plant.



Figure 175: Stock Transport Order Without Delivery

This type of stock transfer involves not only inventory management but alsopurchasing in the receiving plant. The process begins in the receiving plant withthe entry of a stock transport order in the purchasing department. A goods issuereferencing this stock transport order is then entered in the issuing plant. The quantitybooked out is initially managed as stock in transit at the receiving plant. The processis ended by the posting of the goods receipt against the stock transport order at thereceiving plant.

In comparison to a stock transfer without a stock transport order, a stock transfer usinga stock transport order has the following characteristics:

� The stock transport order is integrated into material requirements planning.Purchase requisitions, which are generated from material requirements planning,can be converted to stock transport orders. The receipt can be planned at thereceiving plant.

� The goods receipt can be posted directly to consumption.� In the case of a goods receipt into the warehouse, you can also post the material

to stock in quality inspection or to blocked stock.� You can use the purchase order history to monitor the entire process (goods

issue and goods receipt).



Figure 176: Stock Transport Order Two Step with Delivery

If two transfer locations are far apart, it is often useful to map the shipping of theproduct so that the goods issue from the shipping center is adjusted. This also appliesto the transit quantity and the planned goods receipt.

In the two step procedure with stock transport order and shipping processing, stockin transit is created when the goods issue is posted. As a result, stock in transit ismonitored. With this action, one can display the stock in transit in the stock overviewfor the material.

Stock in transit is valuated, but not for unrestricted use. It is stocked at the receivingplant level. A goods receipt is posted in the receiving plant when the goods arereceived. Depending on the decision you make, you can transfer the stock tounrestricted-use stock, blocked stock, or quality inspection stock.

You create stock transport orders for stock transfer within a company code usingdocument type UB in the default. In addition to the receiving plant, you also specifythe supplying plant here. You also use the item category U (stock transfer). A stocktransport order with a special MRP element is displayed in the stock/requirementsoverview.

You use a stock transport scheduling agreement if stock transfers are to be executedat regular time intervals, or if you want to schedule the delivery dates of a stocktransfer precisely.



Characteristics of the stock transport order:

� The quantity of stock booked out is first stocked in the stock in transit of thereceiving plant.

� Only when the goods receipt is posted is the quantity posted to the stock of thereceiving plant. In this way, it is possible to monitor the quantity that is in transit.

� The stock transfer is evaluated with the valuation price of the material in thedelivering plant.

Prerequisites for this process:

� The receiving plant must be set up an an (internal) customer so that it can bedisplayed in SD.

Figure 177: Special case: Withdrawal in the Other Plant

Often time planners are faced with supply chain planning dilemmas that arise duethe geographic closeness of facilities that supply each other. In some situationscompanies have manufacturing locations within a close geographical area, whichtend to support each other with manufactured components. During normal businessactivity large amounts of goods movements and affect system performance negatively.This procedure provides a "lean" alternative to using stock transport orders and isespecially useful when plants are close together.

You can specify that the components required to build an assembly are to bewithdrawn from a different plant from the planning plant (that is, the issuing plant).Dependent requirements for these components are created directly in the issuing plant.The withdrawal does not involve any significant costs or time.



You can use withdrawal from an alternative plant for both components producedin-house and procured externally. In Customizing for material requirements planning,a special procurement type, which can also be used as a template for some specialprocurement types, is defined for both procedures.

Figure 178: Special Case:Production in another plant

You can define that a particular product is to be produced in an alternative plant (thatis, the production plant) from the planning plant. The planning of the product iscarried out in the planning plant but it is actually produced in the production plant.The product's BOM is created in the production plant.

A customer-defined special procurement type is also used for production in anotherplant. Depending on the production plant, a separate special procurement typeis maintained in Customizing for material requirements planning. The specialprocurement type is assigned to a specific material.



The production flow in the other plant is as follows:

� You first plan material requirements in the planning plant. During the planningrun, the system creates a planned order for the assembly in the planning plant, ifthis is necessary.

� During scheduling of planned orders in the planning plant, note the following:The system determines the basic dates using the in-house production times andthe scheduling margin key entered for the planning plant in the material masterrecord. If material requirements planning is executed with lead-time schedulingusing the routing, the routing and the scheduling margin key in the productionplant form the basis for determining the production date. When you definethat you want the basic dates during lead-time scheduling to be adjusted to theproduction dates (IMG activity "Define Scheduling Parameters for PlannedOrders"), the system determines the basic dates by adding the production enddate and the float after production. The system uses the production start dateminus float before production as the order start date. The system determines thefloat before production and the float after production from the scheduling marginkey in the material master record for the production plant.

� You plan material requirements in the production plant. The system explodes theBOM for the assembly in the production plant and determines the dependentrequirements. You convert the planned order in the planning plant into aproduction order. The dependent requirements in the production plant areconverted into a dependent reservation and production of the components in theproduction plant is initiated. When creating the goods receipt for the productionorder, the stock in the planning plant is increased.



Exercise 22: Multi-Site Planning (Optional)

Exercise ObjectivesAfter completing this exercise, you will be able to:� Carry out multi-site planing using the relevant special procurement key

Business ExampleThe majority of your pumps are produced during make-to-stock production. Due toyour global customer base you need to stock your end product closer to the customer.Plant 2400 is the distribution center planned for this. You have carried out planning inplant 2400 using Sales & Operations Planning. Set up material R-F1## in distributioncenter 2400 so that it will be automatically be delivered by plant 1000 with materialR-F1##.

Task 1:First, enter material-specific properties relevant for planning for material R-F1## indistribution center 2400. To do this, proceed as follows:

1. Call the transaction for creating materials:

Menu path: Logistics→ Production→ Master Data→ Material Master→Material→ Create (General)→ Immediately

Material: R-F1##Industry sector: Mechanical engineeringMaterial type: FERT (Finished product)Copy from� material: (None)

Go to the viewsMRP 1 and 2 and in the window that then appears, enter plant2400.

Maintain the following entries on both MRP views:

MRP type: PDMRP Controller: 0##MRP lot size: EXProcurement type: F




Special procurement: 41 (Stock transfer from plant 1000)Planned delivery time: 10 daysSched. margin key: 001

Then save the material master.

What is the effect of special procurement type 41?

__________________________________________________________

Task 2:Enter a customer requirement for distribution center 2400.

1. Enter a customer requirement for distribution center 2400.

Use the following specifications:

Delivering plant: 2400Required delivery date: Today +1 monthMaterial: R-F1##Order quantity: 8 pieces

Then save the customer requirement.

Task 3:Then execute material requirements planning and interpret the result.

1. Call single item multilevel planning for R-F1## in plant 2400 and change theexisting parameterization at the following point:

Create purchase requisition: 1 (Purchase requisitions)

Now trigger multilevel single item planning.

2. First interpret the stock/requirements list forR-F1## in plant 2400.

Which additional MRP element was generated by the system in one month andhow should you interpret it?

In the stock/requirements list, choose Vendor.




Display the details for the MRP element.

______________________________________________________________________________________________________

What is the availability date of this MRP element?

3. Check the stock/requirements list for R-F1## in plant 1000. Can you find the�counterpart� for the above MRP element?

___________________________________________________

Is the requirements element covered?

___________________________________________________

If the requirements element is covered, what date is the material available andwhat is this date in relation to the date you made a note of above?

______________________________________________________________________________________________________



Solution 22: Multi-Site Planning (Optional)Task 1:First, enter material-specific properties relevant for planning for material R-F1## indistribution center 2400. To do this, proceed as follows:

1. Call the transaction for creating materials:

Menu path: Logistics→ Production→ Master Data→ Material Master→Material→ Create (General)→ Immediately

Material: R-F1##Industry sector: Mechanical engineeringMaterial type: FERT (Finished product)Copy from� material: (None)

Go to the viewsMRP 1 and 2 and in the window that then appears, enter plant2400.

Maintain the following entries on both MRP views:

MRP type: PDMRP Controller: 0##MRP lot size: EXProcurement type: FSpecial procurement: 41 (Stock transfer from plant 1000)Planned delivery time: 10 daysSched. margin key: 001

Then save the material master.

What is the effect of special procurement type 41?

__________________________________________________________

a) Special procurement type 41: Special procurement type 41 is definedin Customizing master data for material requirements planning fordistribution center 2400 and triggers a stock transfer of the relevantmaterial from plant 1000 if there is a material shortage.




Task 2:Enter a customer requirement for distribution center 2400.

1. Enter a customer requirement for distribution center 2400.

Use the following specifications:

Delivering plant: 2400Required delivery date: Today +1 monthMaterial: R-F1##Order quantity: 8 pieces

Then save the customer requirement.


Task 3:Then execute material requirements planning and interpret the result.

1. Call single item multilevel planning for R-F1## in plant 2400 and change theexisting parameterization at the following point:

Create purchase requisition: 1 (Purchase requisitions)

Now trigger multilevel single item planning.

a) Menu path: Logistics→ Production→ MRP→ Planning→ MultilevelSingle-Item Planning

2. First interpret the stock/requirements list forR-F1## in plant 2400.

Which additional MRP element was generated by the system in one month andhow should you interpret it?

In the stock/requirements list, choose Vendor.

Display the details for the MRP element.

______________________________________________________________________________________________________




What is the availability date of this MRP element?


The system generated a purchase requisition as a receipt. Due to thespecial procurement type 41, production plant 1000 is the vendor.

Availability date of the purchase requisition: Varies. It is about one monthfrom today.

3. Check the stock/requirements list for R-F1## in plant 1000. Can you find the�counterpart� for the above MRP element?

___________________________________________________

Is the requirements element covered?

___________________________________________________

If the requirements element is covered, what date is the material available andwhat is this date in relation to the date you made a note of above?

______________________________________________________________________________________________________

a) In plant 1000, a purchase requisition release is generated as acounterpart to the purchase requisition (same quantity).

The purchase requisition release is already covered, generally by stock ora procurement element of in-house production (planned order).

There is a time span of 10 days between the request and the release.These are the 10 days that are required for the physical stock transferand that you have defined as the planned delivery time at the beginningof the exercise in the material master.



Lesson Summary

You should now be able to:� Perform and use multi-site planning



Lesson: MRP Areas

Lesson OverviewMRP areas enable you to differentiate material requirements planning below plantlevel.

You can execute planning specifically for individual storage location MRP areasbelow plant level.


� Describe plant organization with MRP areas� Characterize MRP area types� Set up MRP areas� Make specific settings for storage location MRP areas� Make corresponding settings in Customizing

Business ExampleMaterial requirements planning is to be differentiated below plant level. The presentstorage location MRP is to be replaced by MRP areas.

You want to set up and use storage location MRP areas for planning. You make thenecessary settings in Customizing and in the material master.


SCM240 Lesson: MRP Areas

Concept of Planning with MRP Areas

Figure 179: Requirements Planning Without MRP Areas

Without MRP areas, material requirements planning takes place at plant level. Thismeans that all the requirements of a material (such as dependent requirements, plannedindependent requirements, customer requirements) for all storage locations that are notplanned separately or excluded from MRP, flow into requirements planning togetherat plant level. Depending on the procurement type of the material, either in-houseproduction or external procurement is used to cover the requirements.

The settings defined in the material master of the material for MRP are valid for theentire plant (excluding storage locations planned separately or excluded from MRP).



Figure 180: Planning with MRP Areas

With the introduction of MRP areas, a larger degree of differentiation is possible inMRP. Planning takes place separately for each MRP area. It is possible to plan therequirements separately for different production lines, for example.

In storage location MRP areas, one or more storage locations are grouped together inone organizational unit. This unit is planned separately from the remaining plant andMRP areas. You can assign a receipt (procurement) or issue element (requirement) toa storage location area using the storage location. A storage location can be assignedto one MRP area only.

The provision of components for individual subcontractors can be planned separatelyusing an MRP area. An MRP area is also defined for a subcontractor (supplier) andthe corresponding subcontracting components are assigned to this MRP area.

In each MRP area, separate evaluation of the planning results takes place withindividual MRP lists or stock/requirements lists. In the collective display, you canselect materials specifically for one MRP area, as well as for all MRP areas of a plant.

For each MRP area, you can assign various MRP parameters to a material, so thatrequirements planning can be specifically tailored to the needs of the individual MRPareas.



Figure 181: Plant Organization with MRP Areas

You deploy MRP areas if you want to plan materials that are required in differentproduction areas, storage locations, or by subcontractors, separately from each other.MRP with MRP areas is activated at client level and is therefore valid for all plantsbelonging to this client. It cannot be reversed.

The introduction of MRP areas can be useful even if you do not want to plan withMRP areas. In particular, if you need to plan many plants, the introduction of MRPareas improves system performance because the planning file can be accessed moreprecisely.

There are three types of MRP areas:

1. Plant MRP areas (mandatory) that are automatically created when you activateplanning with MRP areas. This number matches the number of the plant. If noadditional MRP areas are defined, the plant MRP area covers the entire plant.

2. Storage location MRP areas that are defined by the storage locations assignedto them.

3. Subcontractor MRP areas that are used in planning the requirement of materialprovided for a subcontractor, and are defined by the assignment of thissubcontractor. A subcontractor must be assigned to just one subcontractor MRParea and vice versa.



Figure 182: Converting Planning File Entries

The existing planning file entries at plant level are converted into planning file entriesat MRP area level. The conversion uses a report that is triggered in Customizing forMRP, in the activity �Convert Planning File Entries for MRP Areas�. The system usesthis conversion report to create a new planning file, in which you can access entriesfor individual MRP areas.

The system creates the plant MRP area automatically for every plant, with the resultthat for every plant there is exactly one plant MRP area with the same number asthe plant.



Setting up and Executing Planning with MRP Areas

Figure 183: Preparing for Planning with MRP Areas

To introduce material requirements planning with MRP areas, the existing planningfile entries at plant level must first be converted to planning file entries at MRParea level (Customizing activity: �Convert Planning File Entries for MRP Areas�).Material requirements planning for MRP areas can then be activated (Customizingactivity: �Activate MRP for MRP Areas�) and you can create MRP areas(Customizing activity: �Define MRP Areas�).

In the Customizing activity "Define MRP Areas", you define the MRP area, includingthe area type, and plant assignment first. In storage location MRP areas, you are thenasked to define a receiving storage location. To complete the process of definingthe storage location MRP area, assign one or more storage locations, and to definesubcontractor MRP areas, assign one subcontractor only.

The materials to be planned in MRP areas other than the plant MRP area must beassigned to these MRP areas by creating the corresponding MRP area segments in the�MRP 1� view of the material master.

As the assignment to a storage location MRP area takes place using the storagelocations determined by the system in the planning run, you should check that thestorage location, which may already be specified in the BOM (BOM item), the workcenter (production supply area), and in the production version or material master,is included in the MRP area that you assigned in the material master. To ensureconsistent planning, it is also important that either the Storage 1 or the Storage 2 viewexists in the material master for this storage location.



Figure 184: MRP Area Segment in the Material Master

To assign a material to an MRP area (for example, using the storage location), youmust create a corresponding MRP area segment in the material master record for thematerial. (The MRP area must already be defined in Customizing.) Materials withno MRP area segments remain in the plant MRP area.

To create an MRP area segment, choose the �MRP Areas� pushbutton from the MRP1 view in the material master.

A material can be assigned to any number of MRP areas, as long as you create asegment in each MRP area. For each MRP area, you can specify MRP and forecastparameters that differ from the material master at plant level. The consumption valuesare updated separately for each MRP area. A different MRP area can be assigned,however, the values at plant level are used for the strategy, the offsetting logic, theperiod of adjustment, and the check rules.

The assignment of a material to an MRP area can be deleted using the �Deletionflag� indicator in the initial screen for the MRP area segment in the material master.Any dependent requirements or reservations that were planned in this MRP area aretherefore transferred to the plant MRP area.

You can display the materials assigned to a particular MRP area. In the Customizingactivity �Define MRP Areas�, choose the �Material Overview for MRP Area�pushbutton from the MRP area details screen.



Figure 185: Assignment to a Storage Location MRP Area

Planned independent requirements are created for each MRP area. Sales orders areassigned to an MRP area according to their storage location (the issue storage locationin the Shipping screen of the item details).

Dependent requirements are automatically assigned to an MRP area in the planningrun, depending on their production or issue storage location. To do this, the systemaccesses the BOM item details of the component, the material master of thecomponent, or the production version of the header material (you make the necessarysettings in Customizing for MRP under �Define Storage Location and Supply AreaDetermination in BOM Explosion�). If the storage location determined allows thematerial to be assigned to an MRP area of this material (assigned in the materialmaster), then the requirement is planned in this MRP area. If another assignment isnot possible, planning takes place in the plant MRP area.

The requirement elements (planned independent requirements, sales order, and soon) are covered following the assignment to an MRP area within this MRP area.If a production storage location (or an external procurement storage location) isdetermined for a corresponding procurement element (that is the relevant plannedorder) that does not belong to this MRP area, then the receiving storage location ofthe MRP area is used instead.



Figure 186: Special Procurement Types in the MRP Area

Materials that are planned in a MRP area can be procured using the specialprocurement type �stock transfer from plant to MRP area�.

For this purpose you have to create a special procurement key in Customizing forMRP (Customizing step �Define Special Procurement Type�), which containsprocurement type �F� (external procurement), special procurement type �U� (stocktransfer), and your own plant as the stock transfer plant. This special procurement keyis entered in the MRP area segment of the corresponding MRP area.

The stock transfer process takes place as in storage location MRP. A stock transferreservation is created at MRP area level, and a reservation with reference to this stocktransfer reservation is created at plant level. When the procurement in the plant iscomplete, the transfer posting is carried out in the MRP area in Inventory Managementwith reference to the stock transfer reservation. This process can also be mapped usingstock transport requisitions. The planned delivery time specified in the MRP areasegment can be used as the stock transfer time, if the corresponding indicator has beenset. Otherwise, the planned delivery time of the plant is used. The requirements date ofthe purchase requisition release that is created at plant level is brought forward by thisstock transfer time. You use the �Stock Transfer� field in Customizing for the specialprocurement key �Stock Transfer from Plant to MRP Area� to control whether stocktransfer reservations or stock transfer requisitions are generated in the planning run.



Special procurement types that refer to the BOM explosions, such as phantomassembly, are not permitted in an MRP area segment. Special procurement typesthat refer to an actual goods movement, such as stock transfer from another plant,external procurement, stock transfer from plant to MRP area, are permitted. A specialprocurement type �Stock Transfer from MRP Area to MRP Area� is not intended.

The storage location MRP (that is, a storage location planned separately or excludedfrom planning) is only retained because of upward compatibility, but can becompletely replaced by MRP with storage location MRP areas.

In addition, you can also carry out a stock transfer from storage location to storagelocation and thus from storage location MRP area to storage location MRP area.You make the settings for this in Customizing for Materials Management (MaterialsManagement→ Purchasing→ Purchase Order→ Set up Stock Transfer Order→ Set Up Stock Transfer Between Storage Locations). You can use the BADIMD_EXT_SUP to implement your own logic for determining the issuing plant andstorage location and the planned delivery time. This BADI uses the additional field�Additional Info for BADI� in the special procurement key.

Figure 187: Strategies of Make-to-Stock Production in MRP Areas

In storage location MRP areas the materials can only be planned with themake-to-stock production planning strategies (strategies 10, 11, 30, 40, 70). In demandmanagement, only the planned independent requirements of the correspondingrequirements classes can be created for storage location MRP areas.



Make-to-order planning strategies can be used only in the plant MRP area. Individualcustomer segments are put in the plant MRP area to ensure that the sales order is onlyplanned in the individual customer segment, even if the storage locations have beenchanged. Regardless of the storage location, the sales order items and procurementelements remain in the corresponding individual customer segment and thus in theplant MRP area.

The strategies with planning segments (strategies 50, 52, 59, 60, 74, and so on) canalso only be used in the plant MRP area.

Figure 188: ATP Check with MRP Areas

As soon as MRP with MRP areas has been activated, the ATP check is also activatedat MRP area level. The availability check is then carried out for the individual MRPareas.

Sales orders for make-to-order production are always planned in the plant MRP area.For the customer requirements types in make-to-stock production, the assignment toan MRP area is made using the storage location.

As in the previous ATP check at plant level, the ATP check can be carried out with orwithout the storage location check in Customizing, depending on how the availabilitycheck is controlled. If no storage location check has been set, the ATP check is onlycarried out for the total MRP area, while the available quantity is also checked in thestorage location (of the sales order) with storage location check.



Figure 189: Scope of Planning with MRP Areas

The total planning run can be triggered for each plant, for example, as a backgroundjob with a variant for each plant to be planned. In planning with MRP areas, it is alsopossible to plan only individual MRP areas.

You can group together several MRP areas or plants in a scope of planning for aplanning sequence and plan on a cross-plant basis in a total planning run. The systemautomatically takes mutual dependencies, such as those arising through stock transfer,into account (the situation displayed in the graphic merely requires that MRP area10001 and plant 1100 are entered in the scope of planning � the planning takes placefor each material in the proposed order MRP area 10001, and plant 1100, and thenMRP area 10001 again if necessary).

You define the scope of planning for total planning in the Customizing activity�Define Scope of Planning for Total Planning� for Material Requirements Planning.You can also only specify an individual MRP area in the scope of planning.

By using scope of planning, you can execute a total planning run online or as abackground job for a plant, for several plants, for an MRP area, for several MRP areasin MRP, in MPS and in long-term planning.

The planning run using scope of planning must always be started with parallelprocessing.





Exercise 23: Planning with Storage LocationMRP Areas

Exercise ObjectivesAfter completing this exercise, you will be able to:� Execute MRP for the finished product in a separate MRP area,� Make the necessary settings for this in Customizing and the material master.

Business ExamplePump R-F1## is to be planned in plant 1000 in make-to-stock production usingstrategy 40 (planning with final assembly) in MRP area LO##P1000.



Task 1:Check and change the material master if necessary. Make sure that strategy group40 is entered in the material master for the finished product R-F1## in plant 1000,as well as consumption mode 2 and forward/backward consumption period 30days respectively (MRP 3 view).

Check the Customizing settings: You intend to plan the pump R-F1## in theLO##P1000 storage location MRP area in plant 1000. You therefore check thecharacteristics of this MRP area: Display the MRP area LO##P1000 in Customizingfor MRP master data (IMG activity Define MRP areas).

1. What type of MRP area is it?

2. Which storage locations are assigned to this MRP area?

3. What is the receiving storage location?

Task 2:You assign the material R-F1## to the MRP area LO##P1000 by creating acorresponding MRP area segment in the material master.

1. Use transaction Change Material to call the MRP 1 view of the material masterR-F1##. First check whether theMRP area exists indicator is set:: __________




2. Now assign the MRP area. Choose the MRP Areas button. In the subsequentoverview screen of MRP areas, add the MRP area LO##P1000. Choose Checkto access the detail screen for the MRP data that is valid in this MRP area. Usethe following settings:

MRP type: PD

MRP controller: 0##

Lot size: EX

Adopt (twice) the entries to return to the MRP1 view in the material master.

3. Is the MRP area exists indicator set now?

__________________________________________________

4. Save the material master.

Task 3:Create a planned independent requirement for material R-F1## in MRP areaLO##P1000:

1. In the initial screen for the transaction Create Planned Independent Requirement,enter the MRP area LO##P1000 for the material R-F1##. Use months as theplanning period and enter material number R-F1## with a requirement of20 pieces for the current month + 3 for this MRP area in a new row in theplanning table. Make sure that the version is 00 and the requirements type isVSF and save your entries.

2. First, take a look at the stock/requirements list for material R-F1## in MRParea LO##P1000.

Is the planned independent requirement of 20 pieces displayed? _____________

Do other requirements or procurement elements flow into the stock/requirementslist for this MRP area? ______________

3. Now display the stock/requirements list in plant MRP area 1000. Does theplanned independent requirement you just created appear in the plant MRParea? _________




Task 4:Executing requirements planning in MRP area LO##P1000: Execute multilevelrequirements planning in MRP area LO##P1000 in plant 1000.Then display thestock/requirements list for this MRP area again.

1. Has a procurement element been created? _________________

2. Which storage location has been determined in the header of the plannedorder that was created to cover the requirement in MRP area LO##P1000?______________________________________________

Why? ______________________________________________

Task 5:You receive a sales order for 8 pieces of material R-F1## for the 20th day of thecurrent month + 2.

1. Create a corresponding customer requirement using the following data:


Required delivery date: 20th of the current month + 2

Material: R-F1##

Order quantity: 8 pcs

When you check your data by choosing Enter, make sure that the customerrequirements type is KSV. Save the requirement.

2. Take a look at the stock/requirements list for MRP area LO##P1000 and plantMRP area 1000. In which MRP area is the sales order and why?

______________________________________________________

3. Note down the number and the item of the customer requirement:__________________ / _____________________

Task 6:Change the issue storage location for this customer requirement: It should be providedfrom storage location L1##.

1. From the stock/requirements list for plant 1000, change the customer requirement(select it and choose the Change Element icon). In the entry screen, enter

L1##Continued on next page



as the storage location. Save your entries.

2. Refresh the stock/requirements list for the plant MRP area 1000. Is the salesorder still displayed? _____________________________________________

3. Call the stock/requirements list for MRP area LO##P1000 inplant 1000 (refresh if necessary). Is the sales order displayed here?______________________________________________________

Why (not)?_________________________________________

4. Check whether the sales order has consumed the planned independentrequirements in accordance with the strategy in the material master. Consumed?____________

Task 7:Start a multilevel planning run in MRP area LO##P1000 in plant 1000 in order toadjust the planned orders to the current requirements situation. Start the transactionby pressing Enter twice.

1. Convert the first planned order in the stock/requirements list for MRP areaLO##P1000 into a production order (you call this function directly fromAdditional data for element). Release the production order and save it.

2. Refresh the stock/requirements list and note down the number of the productionorder: _________________

3. What is the receiving storage location for the production order? _______

Task 8:Post the goods receipt for the production order, the number of which you noted downin the previous exercise. Post this goods receipt to the storage location L1##.

1. From the Inventory Management menu, execute the transaction GR for Order(MIGO). You are already familiar with this transaction from the previousexercises. Make sure that the movement type is 101, the storage location L1##and the indicator Item OK. Otherwise, accept the proposals made by the system.Confirm any warning messages and post the goods movement.

2. Check the stock/requirements list forMRP area LO##P1000. Have the goods beenreceived in this MRP area? __________________________________________

3. What is the stock level for today�s date? __________




Task 9:Now deliver the customer requirement; that is, create an appropriate Goods Issue(MIGO) - Other. You are already familiar with this transaction too. Use the movementtype 231 and enter the plant 1000. Enter the following data:

Sales order: Your order number and order item

Material: R-F1##

Quantity: 8 pcs

Storage location: L1##

Confirm any warning messages that may appear and post the document.

1. Call up the stock/requirements list for MRP area LO##P1000. What is the stocklevel? ______________

2. Is the customer requirement still visible in the list? _______________

Why (not)? _________________________________________



Solution 23: Planning with Storage LocationMRP AreasTask 1:Check and change the material master if necessary. Make sure that strategy group40 is entered in the material master for the finished product R-F1## in plant 1000,as well as consumption mode 2 and forward/backward consumption period 30days respectively (MRP 3 view).

Check the Customizing settings: You intend to plan the pump R-F1## in theLO##P1000 storage location MRP area in plant 1000. You therefore check thecharacteristics of this MRP area: Display the MRP area LO##P1000 in Customizingfor MRP master data (IMG activity Define MRP areas).

1. What type of MRP area is it?

Answer: It is an MRP area type 02; that is a storage location MRP area.

2. Which storage locations are assigned to this MRP area?

Answer: The storage locations L0## and L1## are assigned to this MRP area.

3. What is the receiving storage location?

Answer: The receiving storage location is L0##.

Task 2:You assign the material R-F1## to the MRP area LO##P1000 by creating acorresponding MRP area segment in the material master.

1. Use transaction Change Material to call the MRP 1 view of the material masterR-F1##. First check whether theMRP area exists indicator is set:: __________

a) �MRP area exists� indicator set: No

2. Now assign the MRP area. Choose the MRP Areas button. In the subsequentoverview screen of MRP areas, add the MRP area LO##P1000. Choose Checkto access the detail screen for the MRP data that is valid in this MRP area. Usethe following settings:

MRP type: PD

MRP controller: 0##

Lot size: EX




Adopt (twice) the entries to return to the MRP1 view in the material master.


3. Is the MRP area exists indicator set now?

__________________________________________________

a) �MRP area exists� indicator set: Yes

4. Save the material master.


Task 3:Create a planned independent requirement for material R-F1## in MRP areaLO##P1000:

1. In the initial screen for the transaction Create Planned Independent Requirement,enter the MRP area LO##P1000 for the material R-F1##. Use months as theplanning period and enter material number R-F1## with a requirement of20 pieces for the current month + 3 for this MRP area in a new row in theplanning table. Make sure that the version is 00 and the requirements type isVSF and save your entries.


2. First, take a look at the stock/requirements list for material R-F1## in MRParea LO##P1000.

Is the planned independent requirement of 20 pieces displayed? _____________

Do other requirements or procurement elements flow into the stock/requirementslist for this MRP area? ______________

a) Planned independent requirement: Yes

Other requirements or procurement elements: No

3. Now display the stock/requirements list in plant MRP area 1000. Does theplanned independent requirement you just created appear in the plant MRParea? _________

a) Planned independent requirement in plant MRP area: No




Task 4:Executing requirements planning in MRP area LO##P1000: Execute multilevelrequirements planning in MRP area LO##P1000 in plant 1000.Then display thestock/requirements list for this MRP area again.

1. Has a procurement element been created? _________________


Procurement element: Yes

2. Which storage location has been determined in the header of the plannedorder that was created to cover the requirement in MRP area LO##P1000?______________________________________________

Why? ______________________________________________

a) Storage location in header of planned order: Storage location L0##

Reason: Storage location 0002 is entered as the production storagelocation in the material master. As this storage location does notbelong to the MRP area and requirements are only covered withinthe respective MRP area, the receiving storage location of the MRParea is used instead.

Task 5:You receive a sales order for 8 pieces of material R-F1## for the 20th day of thecurrent month + 2.

1. Create a corresponding customer requirement using the following data:


Required delivery date: 20th of the current month + 2

Material: R-F1##

Order quantity: 8 pcs

When you check your data by choosing Enter, make sure that the customerrequirements type is KSV. Save the requirement.





2. Take a look at the stock/requirements list for MRP area LO##P1000 and plantMRP area 1000. In which MRP area is the sales order and why?

______________________________________________________

a) MRP area of sales order: The customer requirement is in the plant MRParea. No storage location that could control a deviating assignment toa special MRP area has been entered for the sales order. It thereforeremains in the plant MRP area.

3. Note down the number and the item of the customer requirement:__________________ / _____________________

a) Number and item: Varies/10

Task 6:Change the issue storage location for this customer requirement: It should be providedfrom storage location L1##.

1. From the stock/requirements list for plant 1000, change the customer requirement(select it and choose the Change Element icon). In the entry screen, enter

L1##

as the storage location. Save your entries.


2. Refresh the stock/requirements list for the plant MRP area 1000. Is the salesorder still displayed? _____________________________________________

a) Sales order in plant MRP area: No

3. Call the stock/requirements list for MRP area LO##P1000 inplant 1000 (refresh if necessary). Is the sales order displayed here?______________________________________________________

Why (not)?_________________________________________

a) Sales order in MRP area LO##P1000: Yes

Reason: The sales order is assigned to the MRP area using its issuestorage location L1##.

4. Check whether the sales order has consumed the planned independentrequirements in accordance with the strategy in the material master. Consumed?____________

a) Consumption: Yes




Task 7:Start a multilevel planning run in MRP area LO##P1000 in plant 1000 in order toadjust the planned orders to the current requirements situation. Start the transactionby pressing Enter twice.

1. Convert the first planned order in the stock/requirements list for MRP areaLO##P1000 into a production order (you call this function directly fromAdditional data for element). Release the production order and save it.


2. Refresh the stock/requirements list and note down the number of the productionorder: _________________

a) Number of production order: Varies

3. What is the receiving storage location for the production order? _______

a) Receiving storage location of production order: L0##

Task 8:Post the goods receipt for the production order, the number of which you noted downin the previous exercise. Post this goods receipt to the storage location L1##.

1. From the Inventory Management menu, execute the transaction GR for Order(MIGO). You are already familiar with this transaction from the previousexercises. Make sure that the movement type is 101, the storage location L1##and the indicator Item OK. Otherwise, accept the proposals made by the system.Confirm any warning messages and post the goods movement.

a) Menu path: Logistics→Materials Management→ Inventory Management→ Goods Movement→ Goods Receipt→ GR for Order (MIGO)

2. Check the stock/requirements list forMRP area LO##P1000. Have the goods beenreceived in this MRP area? __________________________________________

a) Goods receipt in this MRP area: Yes

3. What is the stock level for today�s date? __________

a) Stock for today�s date: 8 pieces




Task 9:Now deliver the customer requirement; that is, create an appropriate Goods Issue(MIGO) - Other. You are already familiar with this transaction too. Use the movementtype 231 and enter the plant 1000. Enter the following data:

Sales order: Your order number and order item

Material: R-F1##

Quantity: 8 pcs

Storage location: L1##

Confirm any warning messages that may appear and post the document.

1. Call up the stock/requirements list for MRP area LO##P1000. What is the stocklevel? ______________

a) Menu path: Logistics→Materials Management→ Inventory Management→ Goods Movement→ Goods Issue (MIGO)

Stock: 0 pc

2. Is the customer requirement still visible in the list? _______________

Why (not)? _________________________________________

a) Customer requirement visible: No

Reason: The customer requirement has been reduced by the goodsreceipt.



Lesson Summary

You should now be able to:� Describe plant organization with MRP areas� Characterize MRP area types� Set up MRP areas� Make specific settings for storage location MRP areas� Make corresponding settings in Customizing


Unit Summary SCM240

Unit SummaryYou should now be able to:� Define master schedule items� Create the connection between master production scheduling and material

requirements planning� Name the objectives of long-term planning� Analyze the business environment of long-term planning� Describe the long-term planning scenario� Execute long-term planning� Transfer and receive firmed orders� Perform and use multi-site planning� Describe plant organization with MRP areas� Characterize MRP area types� Set up MRP areas� Make specific settings for storage location MRP areas� Make corresponding settings in Customizing



Test Your Knowledge

1. When you use master production scheduling you do not normally need to carryout material requirements planning.Determine whether this statement is true or false.□ True□ False

2. Which of the following aims can you pursue with long-term planning?Choose the correct answer(s).□ A Simplify material requirements planning□ B Use master production scheduling□ C Adjust the demand program□ D Acquire a purchasing forecast□ E Simplify production backflush

3. What are the possible MRP area types?Choose the correct answer(s).□ A Plant MRP area□ B ATP MRP area□ C Subcontractor MRP area□ D Procurement MRP area□ E Storage location MRP area



Answers

1. When you use master production scheduling you do not normally need to carryout material requirements planning.

Answer: False

Master production scheduling is generally carried out in two phases: First, youexecute MPS, then you link it to MRP.

2. Which of the following aims can you pursue with long-term planning?

Answer: C, D

Long-term planning is simulative planning with the same degree of detail asmaterial requirements planning. It allows you to perform a range of analysesat a simulative level.

3. What are the possible MRP area types?

Answer: A, C, E

There are three MRP types: Plant MRP area, storage location MRP area,subcontractor MRP area.


SCM240 Course Summary

Course SummaryYou should now be able to:

� Explain the differences between consumption-based planning and materialrequirements planning

� Set up and use important planning strategies and Customizing fornon-configurable products

� Execute material requirements planning and evaluate the results� Configure the technical processes and related Customizing� Use the additional functions of material requirements planning

Related InformationRecommended follow-up courses

The following courses serve as follow-ups to this course:

� SCM360 Capacity Requirements Planning,� SCM310 Production Orders,� SCM320 Repetitive Manufacturing,� SCM340 Process Manufacturing.

SCM360 deals with capacity planning in ECC. SCM310 deals with shop floor controlwith production orders and planning execution. Both SCM320 or SCM340 cover thetopics of repetitive manufacturing and process manufacturing.

Recommended follow-up activities

� Repeat the exercises. using IDES data or your own data� Read the online documentation.� Read the IMG documentation.� Read the release notes.


Course Summary SCM240


Appendix 1Additional Planning Strategies, Quota Arrangement,Phase-Out Control, Subcontracting with MRP Areas

� Further special planning strategies� Additional information about quota arrangement� Phase-out control� Subcontracting

Figure 190: Overview of Several Special Planning Strategies

A number of different strategies are available for planning a material.

The �special planning strategies� can be treated as an optional element of the course.


Appendix 1: SCM240

Figure 191: Overview of Several Special Planning Strategies (1)



Figure 192: Make-To-Stock Production

In addition to net requirements planning, gross requirements planning is anotherstrategy for make-to-stock production.


SCM240 Appendix 1:

Planned orders, production orders, purchase orders, and other elements are taken intoaccount as receipts when determining requirements.

In the case of gross requirements planning, no warehouse stock is taken into account.Only receipt elements are included in the net requirements calculation.

In net requirements planning, the available warehouse stock for planning is takeninto account.

Figure 193: Process of Gross Requirements Planning (11)

The demand program is determined with no reference to sales orders or existingwarehouse stock. This is why this production strategy is also referred to as �forcedproduction�. The focus of this strategy is on full capacity production.

Sales orders are not relevant to MRP, but you can display them for informationpurposes. You have to set this in the �no MRP� field in Customizing for the relevantrequirements class.

Sales orders are filled from stock. You can carry out the availability check with ATPlogic in Sales and Distribution.

The demand program is reduced by the receipt of goods in the warehouse. As withnet requirements planning, the oldest planned independent requirement for grossrequirements planning is reduced first in accordance with the FIFO principle. Futureplanned independent requirements are also reduced by goods receipt if the forwardconsumption period allows this.

A separate segment is created for gross requirements planning in the currentstock/requirements and MRP lists.


Appendix 1: SCM240

Figure 194: Settings for Gross Requirements Planning (11)

The gross requirements planning strategy must be entered in the strategy group ofthe material master (view: MRP 3) and the mixed MRP indicator set to �Grossrequirements planning� in the material master (view: MRP 3).

Sales orders are not relevant for MRP, but you can display them for informationpurposes. You have to define this in the �no MRP� field for the relevant requirementsclass in Customizing.


SCM240 Appendix 1:




Figure 196: Planning Without Final Assembly (50/52)


Appendix 1: SCM240

With strategy 50 (planning without final assembly), the finished product is producedon the basis of the sales order. To achieve short delivery times, certain assembliesshould be produced or procured before the sales order for the finished product isreceived.

Planning that is independent of the sales order is done using planned independentrequirements for the finished product. In the MRP run, the system first createsplanned orders for the finished product to cover these requirements. These plannedorders cannot be converted into production orders (order type VP). However, thesystem creates planned orders in the MRP run at subassembly and component levels ifa material shortage exists. These planned orders can be converted into a productionorder or a purchase requisition.

Final assembly is triggered upon receipt of the sales order. With strategy 50, thesales order appears in an individual customer planning segment in the currentstock/requirements list, in which planning is executed separately for the sales order.With strategy 52, the sales order is managed in the net requirements planning segment.This means that during requirements planning and creation of a sales order (order typeLA), any existing make-to-stock inventory and other receipt elements can be takeninto account in the net requirements planning segment. The quantity produced on thebasis of a sales order is also posted to make-to-stock inventory.

You can only carry out the availability check for planned independent requirements.That is, the check of planned independent requirements at finished product level.

Figure 197: Planning Without Final Assembly (52)


SCM240 Appendix 1:

Note that with this approach the lot-size procedure �lot-for-lot order quantity� isused. Neither the rounding value or rounding profile nor the minimum or maximumlot sizes should be maintained. Otherwise, the assignment logic is not compatiblewith an availability check, which could lead to excess planning or incorrect resultsin the availability check.

Figure 198: Overview of Several Special Planning Strategies (3)




Appendix 1: SCM240

Figure 199: Phantom Assembly

A phantom assembly can represent a subassembly that is created in the productionprocess and is not placed into stock, but rather used immediately. Phantom assembliescan also represent a logical grouping. For example, a car radio assembly consists ofthe radio, speakers and an aerial.

You flag a phantom assembly as such by entering a special procurement type in thematerial master (view MRP 2) or by entering the indicator (or overriding it) in theBOM item.

In the planning run, the dependent requirements of the higher-level assembly arepassed down directly to the components of the phantom assembly.

In exceptional cases, phantom assemblies can be placed in stock and withdrawn at alater date.


SCM240 Appendix 1:

Figure 200: Phantom Assembly Planning (59)

Strategy 59 (phantom assembly planning) must be entered in the material masterof the phantom assembly and the mixed MRP indicator 1 (subassembly planning)as well as the special procurement type 50 (phantom assembly) must be set. Theplanned quantities for the phantom assembly are set in step one (1). This plannedindependent requirement leads to a dependent requirement for the components of thephantom assembly in MRP. Procurement of the components is triggered (2). Thecustomer requirement or the planned order/production order at finished productlevel creates a dependent requirement / reservation at phantom assembly level.Normally this is not the case for phantom assemblies, however with strategy 59, thesedependent requirements / reservations are created anyway in order to balance out theplanned independent requirements. However, these are not relevant for planning.Consumption of the planned independent requirements also means that the dependentrequirements are reduced at component level. However, MRP-relevant dependentrequirements / reservations are created at component level as a result of the plannedorder / production order for the finished product (3).

Once final assembly has been carried out (4), the phantom assembly is confirmed and,if necessary, the components of the assembly backflushed. The planned independentrequirement, the reservations for the phantom assembly and the reservations for thecomponents are reduced (5).

Backflushing is important so that the planned independent requirements and thereservations can be reduced consistently.


Appendix 1: SCM240

Figure 201: Phantom Assembly Planning Settings (59)

If you want to use the �Phantom assembly planning (59)� strategy, make the followingsettings in the material master of the assembly (MRP view):

- Special procurement type = 50 (phantom assembly)

- Strategy group = 59 (planning at phantom assembly level)

- Mixed MRP indicator = 1 (assembly planning with final assembly)

In the material master for the components of the phantom assembly, set the backflushindicator (MRP 2 view) to ensure consistent reduction of the planned independentrequirements and the reservations. You should also assign the components to the sameoperation in the routing to ensure that the components are confirmed at the same time.


SCM240 Appendix 1:




Figure 203: Assembly Planning Without Final Assembly (74) (1)


Appendix 1: SCM240

The strategy �Assembly planning without final assembly� (strategy 74) is amixture of the strategies �assembly planning� (strategy 70) and �planning withoutfinal assembly� (strategy 50 or 52). As in strategy 70, in strategy 74 the plannedindependent requirements for an assembly are regarded separately to the end productand independent of any lot size. You do not have to know the finished product(s) forwhich the assembly is required.

The planned independent requirements are created at assembly level. In contrastto strategy 70, and similar to strategies 50 and 52, the creation of the plannedindependent requirements does not trigger the production of the assemblies, but ratherthe procurement of the components. The components are placed into stock untilthe planned order or the production order for the finished product is received. Theproduction of the assembly is not triggered until the planned order or the productionorder for the finished product has been received.

Material requirements planning is carried out for the assembly and creates plannedorders for the assembly's planned independent requirements. These cannot beconverted into a production order nor can they be used in repetitive manufacturing(order type VP). The planned independent requirements and the planned orders forthe assembly are in the planning segment. Conversion and procurement (assembly)are not possible until a planned order or a production order for the finished productis created. At component levels below the assembly, however, the system createsplanned orders in the planning run if a material shortage exists. These planned orderscan be converted into a production orders or a purchase requisition.

At this stage of planning, the stock at assembly level is not taken into account.


SCM240 Appendix 1:


Production of the assembly is not triggered until receipt of the planned order orthe production order for the finished product. The dependent requirements andreservations created as a result of the planned order or the production order consumethe planned independent requirements of the assembly (as in strategy 70).

Depending on the strategy of the finished product and the individual/collectiveindicator of the assembly, the dependent requirements and reservations for theassembly and the accompanying planned orders for the assembly appear in the netsegment or in the sales order planning segment.

In material requirements planning, dependent requirements and reservations in thenet segment or a sales order planning segment result in planned orders that canbe converted or used in repetitive manufacturing. This then enables the productionof the assembly. At this stage of planning, stock at assembly level is included asstock in the net segment or as sales order stock. In the planning segment, however,the planned order quantity for the VP planned order is reduced in accordance withthe new requirements situation.


Appendix 1: SCM240


In the first step, you create the requirement quantities expected in the future for theassembly. You do this in demand management.

Sales orders, planned orders, or production orders are created for the finished product.

The resulting dependent requirements or reservations (for the assembly) consume theplanned independent requirements of the assembly.

The consumption mode and the consumption periods are calculated according to thereservation or the dependent requirements.


SCM240 Appendix 1:


If you want to use the �Planning without final assembly� strategy (74) for the assembly,you must make the following settings in the material master record (MRP view):

� Strategy group = 74 (planning without final assembly at assembly level) forthe assembly

� Mixed MRP indicator = 3 (assembly planning without final assembly)� Consumption parameters (consumption mode, backward consumption period,

forward consumption period)� Individual / collective indicator = 2 (collective requirements only) for the

components to be procured and stored before receipt of the planned or productionorder for the finished product.

� Individual / collective indicator = 1 (individual requirements only) or blank(individual and collective requirements) for the components not to be procureduntil receipt of the planned order or the production order for the finished product.


Appendix 1: SCM240




Figure 208: Planning with the Planning Material (60) I


SCM240 Appendix 1:

The planning strategy �Planning with planning material� is particularly useful if youhave several finished products with the same main assemblies. To do this, you definea planning material which contains the common assemblies and their BOMs.

Planning is carried out for the planning material and triggers the production andprocurement of the planning material's components.

Figure 209: Planning with the Planning Material (60) II

When the sales order for the saleable product is received, the system can check in salesorder processing whether the planned independent requirements quantities suffice(that is, availability check as a check against forecast).

The sales order for a finished product that refers to the planning material reducesthe planned independent requirements of the planning material and simultaneouslytriggers final assembly.

The sales order is managed within an individual customer segment. If you do not wantto do this, you can manage it in the net requirements segment.

Example for application of this strategy: Welding equipment manufacturer withdifferent colors for different distributors.


Appendix 1: SCM240

Figure 210: Planning Material (60): Master Data

Create a separate material master record for the planning material in SAP ECC:In the SAP ECC material master for the planning material, enter strategy 60, theconsumption mode and the consumption periods.

Enter the planning material and strategy 60 in the SAP ECC material master recordsfor all the finished products that are to be planned using this strategy.

In SAP ECC, create a BOM for the planning material which includes all non-variableparts (these must also be included in the BOM of the finished product).

In the assemblies' master, set the individual/collective indicator to always collectiverequirements.


SCM240 Appendix 1:

Figure 211: Planning Material Example (60) I

Figure 212: Planning Material Example (60) II


Appendix 1: SCM240

Figure 213: Quote arrangement

Additional information about quota arrangement

The quota arrangement facilitates the administration of sources of supply at plantlevel. If you procure a certain material from different sources, you can assign a quotato each individual source. The quota indicates which share of the requirements arisingfor the material over a certain period is to be procured from which source.

If a quota arrangement is defined and active for a material (the activation occurs inthe �Quota Arrangement Usage� field in the material master), it is used for sourcedetermination. A quota arrangement is valid for a specific period of time. A quotaarrangement item is created for each source during that period.

Caution: If a quota arrangement is defined, this does not mean that the quantity of asingle manually created replenishment is automatically distributed among differentsources. In such a case, the entire requested quantity of the replenishment is assignedto one source. This is the source that is next in line to receive the relevant order, inaccordance with the quota arrangement. The breakdown of requirements according tothe specified quotas can only take place if material requirements planning is used.

You can carry out quota maintenance in the requirements planning master data asfollows: Enter the material and the plant on the initial screen, and then enter thedate until which the quota arrangement is valid in the header overview. The start


SCM240 Appendix 1:

date is always the current date or the date that is at the end of the previous quotaarrangement. Enter a quota arrangement item for each required source of supply.To do this, proceed as follows:

� Specify the procurement type for each source (in-house production or externalprocurement). A source of supply (info record and/or outline agreement) mustexist before you can maintain a quota arrangement item with the procurementtype �external procurement�.

� Where appropriate, specify the special procurement type (for example, stocktransfer).

� Enter the vendor, supplying plant or production version.� Specify the numeric relationships on the basis of which requirements arising

over the period are to be distributed.

The system uses quotas to calculate the distribution of the requirements in percentand updates the quota allocated quantity. The requirements assigned based on thequota arrangement are used.

In Customizing for quota arrangements, you define the number range for the quotaarrangement and specify whether the number is to be assigned internally (by thesystem) or externally (through user input).

Figure 214: Setting Up the Quota Arrangement


Appendix 1: SCM240

Before a quota arrangement can be maintained for a material, you must specify thebusiness applications for which the quota arrangement is to be used (for example,in materials planning or in purchase requisitions). Specify this in the �QuotaArrangement Usage� field. You can find this field in the plant-specific purchasingdata/materials planning data of the material master record.

An entry in this field determines the areas in which the source determinationfacility finds the appropriate source on the basis of the quota arrangement. Thequota-allocated quantity of the relevant quota arrangement item is updated from theareas specified via this indicator. The following areas can be taken into consideration:

� Purchase orders: The quantity of the material ordered to date goes into thequota-allocated quantity, provided that a source from the quota arrangementwas used.

� Purchase requisitions: The source determination process is controlled using thequota arrangement. The requested quantity of all purchase requisitions assignedfor this material goes into the quota-allocated quantity.

� Scheduling agreement: The total quantity of the scheduling agreement deliveryschedule lines for this material goes into the quota-allocated quantity.

� Planned orders: The total quantity of all relevant assigned planned orders forthis material goes into the quota-allocated quantity.

� Material Requirements Planning: Source determination on the basis of quotaarrangements can also be used in material requirements planning (MRP). Plannedorders and purchase requisitions generated via MRP have a source assigned on aquota basis, and the requirement goes into the quota-allocated quantity.

� Production orders: The total quantity from all production orders for this materialgoes into the quota-allocated quantity of a relevant quota arrangement item forin-house production.

In the case of sources for which you have specified a quota in the current validityperiod, the system calculates which source is next in line for a certain requirement.This calculation is carried out by the system during the source determination processfor a requested material.


SCM240 Appendix 1:

Figure 215: Quota Rating and Source Determination

The system assigns a quota rating to each of the sources. The quota rating is calculatedas follows:

� Quota rating = (quota-allocated quantity + quota base quantity)/quota

The individual values are as follows:

� Quota-allocated quantity: Total quantity of all requirements includedin the quota-allocated quantity according to the quota arrangement usageindicator in the material master record. The quota-allocated quantity is updatedautomatically.

� Quota base quantity: Quantity used to control the quota arrangement manually(for example, when new sources are included).

� Quota: Number that determines how requirements are distributed among thevarious sources.

In the automatic source determination process, the source with the lowest quotarating is assigned.

The formula yields the following truism: The higher the quota, the lower the quotarating and the greater the probability that the relevant source will be determined as thevalid source.


Appendix 1: SCM240

The quota base quantity can be used on the one hand when a new source is includedin an already existing quota arrangement and on the other to remedy a disproportionbetween quota and quota-allocated quantity. You can use the quota base quantity toprevent the new source from being assigned all requirements (for example, in the formof requisitions or purchase orders) until such time as its quota-allocated quantityexceeds that of one of the existing sources. This is achieved due to the fact that thequota base quantity acts as an additional quota-allocated quantity in the calculationof the quota rating.

Example: You include a new vendor in an already existing quota arrangement. Theexisting quota arrangement consists of two vendors, who are each assigned 50% ofthe material requirements that arise. Each of these vendors has a high quota-allocatedquantity because your company has already ordered a lot of material from them duringthe validity period of the quota arrangement. The new vendor is to be assigned thesame share of forthcoming requirements as the other two. However, according to theformula for calculating the quota rating, all requirements will be allocated to the newvendor until such time as his quota rating exceeds that of one of the other two vendors.If the purchase requisitions are to be assigned evenly, as if the new vendor had alwaysbeen a party to the quota arrangement, you must define the quota base quantity for thenew vendor appropriately, or have it determined by the system. The system providesthe following procedures for determining the quota base quantity:

� Individual calculation: Calculates the quota base quantity for the selectedquota arrangement items. Select the items whose quota base quantity is to berecalculated and choose Edit→ Base Quantities→ Individual Calculation.

� Collective invoice: Calculates the quota base quantity for all quota arrangementitems. Use this procedure if the allocation of requirements that arise for amaterial under a quota arrangement is to be based on the starting situationagain, in which all sources have the same quota rating. Choose Edit→ BaseQuantities→ Collective Calculation.

Calculation of quota rating - example:

You create a purchase requisition for a material (100 pc) for which the sourcedetermination process in the requisition is regulated on the basis of a quotaarrangement. The following table shows the current situation with regard to the quotaarrangement at the time of source determination:

Vendor Quota Quota-allocatedquantity

Quota basequantity

A 3 780 0B 2 380 0C 1 0 260


SCM240 Appendix 1:

According to the specified formula, the quota ratings for vendors A, B, and C are asfollows:

Vendor Quota ratingA (780 + 0) / 3 = 260B (380 + 0) / 2 = 190C (0+260)/1=260

This means that the source representing vendor B is will be assigned to the requisitionitem because this vendor has the lowest quota rating. After the requisition has beensaved, the situation regarding the quota arrangement is as follows:


Quota basequantity

A 3 780 0B 2 480 0C 1 0 260

Figure 216: Quota Arrangement in Manufacturing


Appendix 1: SCM240

In contrast to source assignment via quota arrangement in the manual creation of areplenishment, in the planning run it is possible to split up the requirement as per thespecified quotas among the various sources in the quota arrangement.

For the quota arrangement to be taken into account during the source determinationprocess in material requirements planning, the quota arrangement usage indicatormust have previously been set to the appropriate value in the material master record.Furthermore, each source in the quota arrangement (apart from info records) musthave been entered in the source list with the appropriate MRP indicator.

In source determination for manufacturing, the only option planners have is to choosethe production version. BOMs and Routings can not be selected using a quotaarrangements. However, a production version can contain only a BOM or only arouting. You do not have to specify both.

Figure 217: Requirement Splitting in the Quota Arrangement

Whether or not a requirement is split is determined via the lot-sizing procedure thathas been assigned. The indicator for the splitting quota must have been assigned tothe lot-sizing procedure with which the material is planned (in Customizing). In thecase of the lot size ES (lot-for lot order quantity with splitting), for example, the�Splitting quota� indicator is set.


SCM240 Appendix 1:

When maintaining a quota arrangement, you can also specify a minimum or maximumlot size for each item of the arrangement. However, the specified lot sizes are onlytaken into account in the case of requisitions and planned orders that are generatedautomatically (that is, via the MRP system). The lot size specified in the quotaarrangement item overrides the settings in the material master record.

Example of requirement splitting in materials planning:

The starting situation is as follows: There is a requirement for 1000 pc of a certainmaterial in whose master record the lot size ES (exact lot size calculation withsplitting) has been set. Each vendor has been assigned the quota shown in thefollowing table:


A 4 420B 3 310C 2 190D 1 100

In requirements planning, four purchase requisitions are generated. The requirementof 1000 pc is distributed among the four sources in the proportion 4:3:2:1. In the caseof a quota arrangement with splitting, the quota-allocated quantity and quota ratingare both irrelevant. The following distribution thus applies with respect to the quotaarrangement:


A 4 820B 3 610C 2 390D 1 200

To prevent the system from splitting up a requirement that is too small in the courseof a planning run, you can specify a minimum quantity for splitting. The minimumquantity defines the lowest quantity that a lot must have before it can be split upamong several sources during the requirements planning run. If the lot is smaller thanor equal to the minimum quantity, the usual quota arrangement logic applies.

Example of requirement splitting with minimum splitting quantity


Appendix 1: SCM240

During the maintenance of a quota arrangement for a material with the numberR-T100, a minimum splitting quantity of 1200 is set. Suppose there is a requirementof 1000 pc. In the course of a planning run for material R-T100, this requirement willbe converted into a single purchase requisition. Since the requirement falls belowthe minimum quantity for splitting, no splitting takes place and the vendor with thehighest quota is determined by the system as the source for the requisition.

Figure 218: Maximum Lot Size in the Quota Arrangement

Maximum lot size per quota arrangement item: A maximum lot size is defined asthe maximum PO quantity that may be assigned per order proposal to a source inthe requirements planning run. If the requirement quantity exceeds the maximumlot size, another quota-allocation process takes place for the residual quantity. Itmay now happen that, due to a low quota rating, the same source is reselected and asecond order proposal generated for it. To prevent this, you can set the 1x indicator. Ifthis indicator is set, a source is not taken into account for more than one lot with aquantity equal to the maximum lot size per planning run. The remaining quantity isthen allocated to the next sources.

Minimum quantity for each quota arrangement item: A minimum lot size is defined asthe minimum PO quantity that may be assigned per order proposal to a source in therequirements planning run. If the requirement quantity is less than the minimum lotsize, the lot is assigned to the source with a quantity equal to the minimum lot size.

Phase-out control

� Discontinued parts in long-term planning, master production scheduling andmaterial requirements planning

� Material master and BOM maintenance of simple and parallel discontinuation


SCM240 Appendix 1:

Example of maximum lot size with 1x indicator:

There is a requirement of 500 pc of a certain material. The starting situation is asshown in the following table:


Max. lot size 1x

A 3 100 250 xB 1 200

Due to the fact that the 1x indicator has been set, a planning run will result inthe generation of one requisition for 250 pc with vendor A as the source and onerequisition for 250 pc with vendor B as the source.

Without the one-time indicator, the planning run would generate two requisitionsfor 250 pc with vendor A as the source.

Figure 219: Discontinued Parts (Simple Discontinuation)

In engineering/design you can determine that a material is to be replaced by anothermaterial on a particular date. These changes may be necessary for the followingreasons, for example: - Other safety regulations are to apply from a particular date.A certain component must therefore be exchanged as it is no longer meets the safetyrequirements. - An expensive part is replaced by a cheaper part.


Appendix 1: SCM240

Discontinued parts functions in the same way in long-term planning, masterproduction scheduling and material requirements planning. Simple discontinuation: Adiscontinued component is being replaced by a follow-up material from a particulardate as soon as the available stock for planning of the discontinued component is zero.This means that when the available stock for planning of the discontinued materialreaches zero, the dependent requirements of the discontinued material are switchedto the follow-up material. If the follow-up material is not available for planning, thefollow-up material (instead of the discontinued material) is procured. The safety stockof the discontinued material is not used by MRP. If the available stock for planning ofthe discontinued material becomes larger than zero again, for example due to a repeatorder, this material is used again. In addition, the system issues an exception messagefor receipts after the effective-out date. Prerequisites: You must set the discontinuedparts indicator �1� in the material master record of the discontinued component. Youalso must enter a follow-up material and define an effective-out date. The follow-upmaterial can be maintained as such for information purposes in the bill of materials.

Figure 220: Discontinued Parts (Parallel Discontinuation)

Parallel discontinuation: A group of materials is replaced by another group ofmaterials. If a component is to be discontinued (main discontinued part) and itsavailable stock is zero, another component (dependent discontinued part) alsohas to be discontinued. If, for example, a particular nut is to be discontinued, thecorresponding bolt also has to be discontinued.

Prerequisites:


SCM240 Appendix 1:

- Material master record: You must set the discontinued part indicator "1" in thematerial master record of the main discontinued part and set the discontinued partindicator "3" in the material master record of the dependent discontinued part.

- Bill of materials: In the extras for the BOM item, you define a discontinuation groupin the "Discontinuation data". You can define the name of this character string, whichthen combines BOM items that belong together and are to be discontinued. The mainand the dependent discontinued parts are identified using the same discontinuationgroup.

- You also set the follow-up item indicator for the follow-up component(s). Thefollow-up group combines all follow-up items of a BOM that belong together. Thisgroup determines the follow-up items that are to replace the discontinued parts. Thecharacter string of the follow-up group must be identical to that of the discontinuationgroup.

Figure 221: Subcontracting (1)

In the MRP run, the system explodes the BOM for the material to be procured anddetermines the component requirements that need to be provided to the subcontractor.The field for the material provision indicator in the BOM item (tab page Status/Longtext) must remain empty for these components. Dependent requirements are generated.You need to enter the material provision indicator �L� for components which thesubcontractor has procured. In this case, no dependent requirements are created.


Appendix 1: SCM240

The graphic shows subcontracting using a pump as an example. Several subcontractorsare responsible for the final assembly of the pump; the casing is procured in thecompany's own plant and transported to the appropriate subcontractor. The number ofcasings provided depends on the number of pumps ordered from the subcontractor(subcontract order) and the number of casings that are already with the subcontractor(stock of material provided). The screws to assemble the pump (and, if necessary, anyfurther components) are procured by the subcontractor (provision of the material bythe subcontractor).

The requirements of material provided are treated separately for each subcontractor.The stock of material provided that is stored with a subcontractor can only be usedto cover that subcontractor's requirements of the material provided and not thoseof other subcontractors.

In the current stock/requirements list and MRP list, the stock of material provided andrequirements of material provided are shown per subcontractor in separate planningsegments. A subcontractor's requirements of material provided that are not coveredby the material provided already stocked at the subcontractor, are entered in the netrequirements calculation and are shown and planned in the net planning segment.


You have the option of using MRP with MRP areas for subcontracting. By introducingthe MRP areas, the stocks of material provided and requirements of material providedfor components in the subcontractor purchase requisitions or purchase orders areplanned separately on a subcontractor by subcontractor basis.


SCM240 Appendix 1:

In the Customizing activity �Define MRP Areas�, you define an MRP area type 03�Subcontractor� (vendor). In the process, you assign the subcontractor's vendornumber to this MRP area. A subcontractor is uniquely assigned to one subcontractorMRP area.

In the �MRP 1� view of the material master for the material provided, you assign thesubcontractor MRP areas and MRP parameters (MRP area segments), which arevalid for this material provided.

The stock of material provided that is with the subcontractor can be covered bytransferring stock from the company's own plant. A further possibility is to procurethe components to be provided from a vendor, who delivers the material directly to thesubcontractor. This is subcontractor third party order processing. The control of thereplenishment is determined by the special procurement type in the MRP area segment.

In the example above, the casing and rotor components to be provided to the customerare planned. The components can be procured differently for the subcontractors Aand B. The control of procurement is set for each subcontractor MRP area using anappropriate special procurement key in the material master (for more details, seethe next graphic).


For the dependent requirements of the components provided to be assigned tothe subcontractor's MRP area, a standard planned order or a purchase requisitionwith subcontracting item category and assigned source of supply must exist for the


Appendix 1: SCM240

(finished) product to be procured. For this, the special procurement subcontractingmust be entered in the material master, or in the quota arrangement that affects stock,for the (finished) product. In MRP, the automatic assignment of a subcontractorgenerally takes place via the existing source determination mechanism (specialprocurement type, quota arrangement, source list).

If the special procurement type �Stock transfer from plant to MRP area� is entered inthe subcontractor MRP area data in the material master of a component provided, astock transfer reservation is generated in the MRP run as a replenishment element forthe component provided, from the plant stock to the subcontractor stock of materialprovided (movement type 541). When the stock is transferred with reference to thereservation, the plant stock and the reservation are reduced and the stock of materialprovided created.

If the special procurement type �External procurement� is specified in thesubcontractor MRP area data in the material master of a component provided, apurchase requisition is generated in the MRP run with the indicator �Subcontracting�as a replenishment element for the component provided. The subcontractor whodelivers the finished product is entered here in the inbound delivery address. Thegoods receipt for this purchase order is posted to the subcontractor's stock of materialprovided.

Once the goods receipt has been posted for the subcontract order, the stock of materialprovided and the subcontracting requirements for the components provided arereduced.

The components to be provided for the subcontractor can be procured using stocktransfer requisitions from the plant to the subcontracting MRP area.


SCM240 Appendix 1:

Overview of Planning Strategies

Figure 224: Planning Strategies

Figure 225: Planning Strategies


Appendix 1: SCM240

Horizons in Production PlanningSome Horizons in Production Planning

Planning horizon

The planning horizon determines the short-term planning area. It is calculated inworkdays.

Definition:

1. As an MRP group parameter

(Customizing: Carry Out Overall Maintenance of MRP Groups).

2. As a plant parameter

(Customizing: Carry Out Overall Maintenance of Plant Parameters).

Consumption period

The backward and forward consumption periods together with the consumption moderestrict the period in which the customer requirements with planned independentrequirements are consumed. The consumption period is calculated in workdays. (Asan exception, the forward consumption period in the make-to-stock strategies 10 and11 determines the time frame in which planned independent requirements can bereduced on the basis of the FIFO rule in the future too.)

Definition:

1. In the material master (MRP 3).2. As an MRP group parameter


Planning time fence

The planning time fence defines a period in which the system can make no automaticchanges to the production plan (as long as the materials have an MRP type with anappropriate firming type). The period is calculated in workdays. You can also set afirming date (and thereby the end of the planning time fence) manually.

Definition:

1. In the material master (MRP 1).2. As an MRP group parameter


Planning time fence for the maintenance of independent requirements


SCM240 Appendix 1:

The planning time fence for the maintenance of independent requirements determinesa period in which the system generates a message when there are changes to thedemand program. This period, which is defined in workdays, does not affect MRP.

Definition:

On a plant-basis in the Customizing activity Define Firming Period for MaintainingIndependent Requirements.

Roll Forward Period

The roll forward period defines a period (in workdays) for the update of the productionplan. All firmed planned orders that fall before the end of the roll forward period(which can lie in the future or the past) are deleted (if the roll forward indicator�Delete firm planned orders� is set in the MRP type for the respective material).

Definition:

As an MRP group parameter


Period of adjustment

The period of adjustment defines a period in which planned independent requirementsare no longer taken into account in the net requirements calculation. The variousadjustment indicators control whether the end of this period is in the past or the futureand which types of planned independent requirements are ignored. The period ofadjustment is in calendar days.

Definition:

As an MRP group parameter


Reorganization period

The reorganization period determines the date from which data is reorganized. Thisdate is calculated by deducting the reorganization period (in calendar days) fromtoday�s date. The system reorganizes all data that is older than the reorganizationperiod.

Definition:

On a plant-basis in the Customizing activity Define the Reorganization Interval.

Rescheduling horizon

The rescheduling horizon determines a period (in workdays), starting form the endof the replenishment lead-time, in which the system checks in the net requirementscalculation whether the dates for firmed or fixed receipt elements should be moved.


Appendix 1: SCM240

This horizon is only valid for deexpediting firmed or fixed receipt elements. Thesystem checks the deexpedition (into the future) of such a receipt element withoutrestricting the check to this period.

Definition:

1. As an MRP group parameter


2. As a plant parameter

(Carry Out Overall Maintenance of Plant Parameters in Customizing. You alsodetermine which receipts are counted as firmed or fixed here.)

Scheduling horizon

The scheduling horizon can be used to define a period in which lead-time schedulingcan be executed in MRP. The system executes detailed scheduling and generatescapacity requirements for planned orders with an order start date that lies in the futurewithin this period (in workdays). In the case of planned orders that lie further in thefuture the scheduling takes place using the in-house production time in the materialmaster.

Definition:

On a plant-basis in the Customizing activity Define Scheduling Parameters forPlanned Orders.

Menu PathsSome menu paths in Production Planning

Master DataMaterial master

Logistics → Production → Master Data → Material Master → Material→Create\Change\Display

MRP profile

Logistics→ Production→ Master Data→ Material Master→ Profile→ MRPProfile→ Create\Change\Delete\Display\Usage

Bill of materials

Logistics→ Production→ Master Data→ Bills of Material→ Bill of Material→Material BOM→ Create\Change\Display


SCM240 Appendix 1:

Routing

Logistics→ Production→ Master Data→ Routings→ Routings→ StandardRoutings→ Create\Change\Display

Demand ManagementPlanned independent requirements

Logistics→ Production→ Production Planning→ Demand Management→ PlannedIndependent Requirements→ Create\Change\Display

Customer requirement

Logistics→ Production→ Production Planning→ Demand Management→Customer Requirements→ Create\Change\Display

Total requirements � Planned independent requirement assignment

Logistics→ Production→ Production Planning→ Demand Management→Evaluations→ Display Total Reqmts

(Alternatively, this can also be accessed from the stock/requirements list by choosingEnvironment→ Display Total Requirements.)

Reorganization

Logistics → Production → Production Planning → Demand Management→ Environment → Independent Requirements: Reorganization → AdjustRequirements\Schedule Lines: Reorganize\Delete History

SD sales order

Logistics→ Sales and Distribution→ Sales→ Order→ Create\Change\Display

Material availability overview

Logistics→ Sales and Distribution→ Sales→ Environment→ Availability Overview

MRPCurrent stock/requirements list

Logistics → Production → MRP → Evaluations → Stock/RequirementsList\Stock/Requirements List: Collective Display

MRP List

Logistics→ Production→ MRP→ Evaluations→ MRP List \ MRP List � CollectiveDisplay


Appendix 1: SCM240

Single-item planning

Logistics→ Production→MRP→ Planning→ Single-Item, Multi-Level\Single-Item,Single-Level

Interactive single-item planning

Logistics→ Production→ MRP→ Planning→ Single-Item, Interactive Planning→Execute Planning Run

Total planning

Logistics→ Production→ MRP→ Planning→ Total Planning→ Online\AsBackground Job

Planning table

Logistics → Production→ MRP → Planning → Planning Table → DisplayMode\Change Mode

Planning file entry

Logistics → Production → MRP → Planning → Planning File Entry →Create\Display

Manual firming date

Logistics→ Production→ MRP→ Evaluations→ Stock/Requirements List Edit→Set Firming Date

Planning calendar

Logistics → Production → MRP → Master Data → Planning Calendar →Create\Change\Display Periods

Planned order

Logistics→ Production→ MRP→ Planned Order→ Create\Change

Pegged requirements

Logistics→ Production→ MRP→ Evaluations→ Pegged requirements

(alternatively, you can also access this directly from the stock/requirements list)

Convert planned order in MRP

Logistics→ Production→ MRP→ Planned Order→ Convert to Pur. Req.\Convertto Prod. Ord. → Collective\Partial Conversion

Detailed data on BOM explosion for a planned order

Logistics→ Production→ MRP→ Planned Order→ Change\Display


SCM240 Appendix 1:

Goto→ Component Overview

Extras→ For Explosion

Definition of BOM alternatives per time period

Logistics � Production � MRP � Master Data � BOM by Date

(this can also be accessed in Customizing for Basic Data in Production)

BOM explosion numbers

Logistics→ Production→ MRP→ Master Data→ BOM Explosion Number→Edit\Display

Scheduled jobs

Tools→ CCMS→ Background Processing→ Jobs - Overview and Administration

Long-Term PlanningScenario

Logistics→ Production→ Production Planning→ Long-Term Planning→ PlanningScenario→ Create\Change\Display

Simulative planning

Logistics→ Production → Production Planning → Long-Term Planning →Long-Term Planning

MRP list, stock/requirements list for long-term planning

Logistics→ Production → Production Planning → Long-Term Planning →Evaluations

Adoption of firmed simulative planned orders in operative planning

Logistics→ Production→ MRP→ Planning→ Single-Item, Interactive→ Edit→ Copy Simulative LT Planned Orders

Master Production SchedulingPlanning run

Logistics→ Production→ Production Planning→ MPS→ MPS→ Single-Item,Multi-Level\Single-Level\Interactive

CustomizingTools→ Customizing→ IMG→ Edit Project


Appendix 1: SCM240

Goto→ Display SAP Reference IMG

Planning strategies

Customizing: Production→ Production Planning→ Demand Management→Planned Independent Requirements→ Planning Strategy→ Define Strategy

Assign requirement types to requirements class

Customizing: Production→ Production Planning→ Demand Management→Planned Independent Requirements→ Requirements Types/Requirements Classes→Define Requirement Types and Allocate Requirements Class

Planned independent requirements classes

Customizing: Production→ Production Planning→ Demand Management→Planned Independent Requirements→ Requirements Types/Requirements Classes→Maintain Requirements Classes

Planning time fence for the maintenance of independent requirements

Customizing: Production→ Production Planning→ Demand Management→Planned Independent Requirements→ Define Firming Period for MaintainingIndependent Reqmts

Message output for invalid requirements type

Customizing: Production→ Production Planning→ Demand Management→Planned Independent Requirements→ Requirements Types/Requirements Classes→Message Output for Invalid Requirements Type

Planned independent requirements versions

Customizing: Production→ Production Planning→ Demand Management→Planned Independent Requirements→ Define Version Numbers

Customer requirements classes

Customizing: Sales and Distribution→ Basic Functions→ Availability Check andTransfer of Requirements→ Transfer of Requirements→Define Requirements Classes

Special procurement

Customizing: Production→ Material Requirements Planning→ Master Data→Define Special Procurement Type

Movement types

Customizing: Materials Management→ Inventory Management and PhysicalInventory→ Movement Types→ Copy, Change Movement Types

Availability check settings


SCM240 Appendix 1:

Customizing: Sales and Distribution→ Basic Functions→ Availability Check andTransfer of Requirements→ Availability Check→ Availability Check with ATP Logicor Against Planning→ Carry Out Control For Availability Check

Available plant stock

Customizing: Production→ Material Requirements Planning→ Planning→MRP Calculation→ Stocks→ Define Availability of Stock in Transfer/BlockedStock/Restricted Stock

Attributes of material types

Customizing: Logistics - General→ Material Master→ Basic Settings→ MaterialTypes→ Define Attributes of Material Types

Material status

Customizing: Logistics - General→ Material Master→ Settings for Key Fields→Define Material Statuses

MRP and planning file entries

Customizing: Production→ Material Requirements Planning→ Planning FileEntries→ Activate MRP and Set Up Planning File

Material requirements planning for MRP areas

Customizing: Production→ Material Requirements Planning→ Master Data→MRP Areas→ Activate MRP for MRP Areas

MRP areas

Customizing: Production→ Material Requirements Planning→ Master Data→MRP Areas→ Define MRP Areas

Storage mode for MRP lists

Customizing: Production → Material Requirements Planning → Check ofPerformance Settings→ Check Storage Mode for MRP List

Scope of planning for total planning

Customizing: Production→ Material Requirements Planning→ Planning→ DefineScope of Planning for Total Planning

Parallel processing in MRP

Customizing: Production→ Material Requirements Planning→ Define ParallelProcessing in MRP

(alternatively, this can be accessed directly from MRP)

Plant parameters


Appendix 1: SCM240

Customizing: Production→Material Requirements Planning→ Plant Parameters→Carry Out Overall Maintenance of Plant Parameters

MRP group parameters

Customizing: Production→ Material Requirements Planning→ MRP Groups→Carry Out Overall Maintenance of MRP Groups

MRP type

Customizing: Production→ Material Requirements Planning→ Master Data→Check MRP Types

Planning table entry parameters

Customizing: Production→ Repetitive Manufacturing→ Planning→ Planning Table→ Maintain Entry Parameters

Planning table row selection

Customizing: Production→ Repetitive Manufacturing→ Planning→ PlanningTable→ Maintain Row Selection

Planning horizon

Customizing: Production→ Material Requirements Planning→ Planning→ MRPCalculation→ Define Planning Horizon

(alternatively, this can be accessed from the plant parameters or the MRP groupparameters)

Planning time fence and roll forward period

Customizing: Production→ Material Requirements Planning→ Planning→ MRPCalculation→ Define Planning Time Fence and Roll Forward Period

(alternatively, this can be accessed from the MRP group parameters)

Reorganization interval

Customizing: Production→ Production Planning→ Demand Management→Planned Independent Requirements→ Define the Reorganization Interval

Rescheduling check

Customizing: Production→ Material Requirements Planning→ Planning→ MRPCalculation→ Define Rescheduling Check

(alternatively, this can be accessed from the plant parameters or the MRP groupparameters)

Screen sequence �header details�


SCM240 Appendix 1:

Customizing: Production→ Material Requirements Planning→ Evaluation→Define Screen Sequence for Header Details

Navigation profiles

Customizing: Production→ Material Requirements Planning→ Evaluation→Define Navigation Profiles

Selection rules

Customizing: Production→ Material Requirements Planning→ Evaluation→ Filter→ Define Selection Rules

Display filter

Customizing: Production→ Material Requirements Planning→ Evaluation→ Filter→ Define Display Filter

Period totals

Customizing: Production→Material Requirements Planning→ Evaluation→ PeriodTotals→ Define Period Display for Period Totals

Exception messages

Customizing: Production→ Material Requirements Planning→ Evaluation→Exception Messages→ Define and Group Exception Messages

Receipt days' supply

Customizing: Production→ Material Requirements Planning→ Evaluation→Define Receipt Elements for Receipt Days� Supply

Floats (scheduling margin key)

Customizing: Production→ Material Requirements Planning→ Planning→Scheduling and Capacity Parameters→ Define Floats (Scheduling Margin Key)

Safety stock availability

Customizing: Production→ Material Requirements Planning→ Planning→ MRPCalculation→ Stocks→ Define Safety Stock Availability

Period profile for safety time/Actual range of coverage

Customizing: Production→ Material Requirements Planning→ Planning→ MRPCalculation→ Define Period Profile for Safety Time/Actual Range of Coverage


Range of coverage profile (dynamic safety stock)


Appendix 1: SCM240

Customizing: Production→ Material Requirements Planning→ Planning→ MRPCalculation→ Define Range of Coverage Profile (Dynamic Safety Stock)


Lot-sizing procedures

Customizing: Production→Material Requirements Planning→ Planning→ Lot-SizeCalculation→ Check Lot-Sizing Procedure

Rounding profile

Customizing: Production→Material Requirements Planning→ Planning→ Lot-SizeCalculation→ Maintain Rounding Profile

Planning calendar

Customizing: Production→ Material Requirements Planning→ Master Data→Maintain Planning Calendar


Selection ID for routing selection

Customizing: Production→ Basic Data→ Routing→ Routing Selection→ SelectAutomatically

Scheduling parameters for planned orders

Customizing: Production→ Material Requirements Planning→ Planning→Scheduling and Capacity Parameters→ Define Scheduling Parameters for PlannedOrders

(Note: As of Release 3.0, routing selection is controlled using this table, and no longerby following the menu path Customizing: Production→ Material RequirementsPlanning→ Planning→ BOM Explosion/Routing Determination→ Define Selectionof BOMs and Routings)

BOM usage

Customizing: Production→ Basic Data→ Bill of Material→ General Data→ BOMUsage→ Define BOM Usages

Selection ID of BOM selection

Customizing: Production → Basic Data → Bill of Material → AlternativeDetermination→ Define Order of Priority for BOM Usages

Selection of BOM usage per plant

Customizing: Production→ Material Requirements Planning→ Planning→ BOMExplosion→ Define BOM Selection


SCM240 Appendix 1:

BOM explosion control

Customizing: Production→ Material Requirements Planning→ Planning→ BOMExplosion→ Define BOM Explosion Control

Error handling in the planning run

Customizing: Production→ Material Requirements Planning→ Planning→ MRPCalculation→ Define Error Processing in the Planning Run

BAdIs and BAPIsBusiness Add-Ins

The following BAdIs (Business Add-Ins) are interfaces that contain coding forfunctional enhancements without modifying the original programming.

Short description of the BAdI Name of the BAdIGeneral MRPReset subcontracting logic MD_SUBCONT_LOGICChange logic for MRP data import MD_CHANGE_MRP_DATAChange requirements dates for stocktransfers

MD_STOCK_TRANSFER

Own MRP elements in MRP/LTP MD_ADD_ELEMENTSFlexible independent requirementsconsumption/reduction (SAP Note608760)

MD_PIR_FLEX_CONS

MRP planning evaluationFurther process MRP list MD_MRP_LISTChange MRP element display MD_DISPLAY_ELEMENTCollect and process planning data MD_PLANNING_RESULTAdditional columns in the materialoverview

MD_ADD_COL_OVERVIEW

Additional columns in the MRPevaluation

MD_ADD_COL_EZPS

MRP procurement proposalChange purchase requisition MD_PUREQ_CHANGEProcess purchase requisition further MD_PUREQ_POST


Appendix 1: SCM240

Change planned order MD_PLDORD_CHANGEProcess planned orders further MD_PLDORD_POSTChange source of supply assignments MD_MODIFY_SOURCEDetermine production version MD_MODIFY_PRODVERSLog planned order postings due to timestamp problems

MD_PLDORD_TIME_STAMP

Schedule planned orders MD_PLDORD_SCHEDULINGDeactivate release strategy determinationfor purchase requisition (SAP Note592297)

MD_PURREQ_REL_STRAT

Calculate the last lot exactly in theindividual segment

MD_LAST_LOT_EXACT

Determine the issuing storage location MD_EXT_SUPMRP executionChange package size in parallel MRPplanning run

MD_MRP_RUN_PARALLEL

Deactivate MRP element changeability(SAP Note 600940)

MD_INTERACT_PLANNING

Change planning parameters MD_MRP_PARAMETERSLong-term planning/simulationDefine additional parameters in planningscenario

MD_PLANNING_SCENARIO

You can find additional information regarding functions and implementation in therelease notes, in MRP Customizing, and/or in the above-mentioned SAP Notes.

BAPIs

BAPIs (Business Application Programming Interfaces) enable you to access astandardized programming interface to allow external access to business processesand data in the SAP system.


SCM240 Appendix 1:

Short description of the BAPI Name of the BAPISelect the current stock/requirements list GetStockRequirementListSelect the MRP list GetMRPListSingle-item, single-level and multilevelplanning

MaterialRequirementsPlanning

You will find further information about the methods in the BAPI Explorer (transactionBAPI).


Appendix 1: SCM240


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