SCM 240 Production Planning

SCM240Production Planning (SAP R/3)

mySAP Supply Chain Management

Date

Training Center

Instructors

Education Website

Instructor HandbookCourse Version: 2004 Q3Course Duration: 5 Day(s)Material Number: 50066127Owner: Bill Welch (i008505)

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

Copyright

Copyright 2003 SAP AG. All rights reserved.

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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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About This Handbook SCM240

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

Course Goals.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .viiCourse Objectives .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . x

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

Unit 2: Evaluation the Planning Results ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29Using the MRP and Stock/Requirements List. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31Exception Messages in SAP ERP... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71Days Supply .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83

Unit 3: MRP Basics..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95Concept of MRP ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97MRP Types ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .104Prerequisites for Running MRP... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119Methods for Executing a planning run .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .132Settings in the Planning Run ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .151

Unit 4: Demand Management in SAP ERP..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .179Overview of Demand Management ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .181Make to Stock versus Make to Order ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .190Make to Stock Planning Strategies.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .196Make to Order Planning Strategies.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .224Settings and Customizing ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .252

Unit 5: Master Production Scheduling ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .273Master Production Scheduling ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .274

Unit 6: Influencing the Planning Run ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .295Net Requirements Calculation ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .297Using Buffers in Planning.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .307Controlling order quantities in the planning run... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .342Multi-Site Planning.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .367Continuous Input/Output.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .394

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Contents SCM240

Unit 7: Technical Process of the Planning Run ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .417Basic Dates Scheduling in the Planning Run .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .419Lead Time Scheduling in the Planning Run .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .438Master Data Selection during the Planning Run.... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .460

Unit 8: Multiple Sources of Supply in Planning ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .489Source Determination Overview ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .491Source Determination in Manufacturing .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .496Quota Arrangements .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 511Source Determination in Procurement .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .532

Unit 9: Life Cycle Planning ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .559Discontinuation in Production Planning... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .560

Unit 10: Effects of Inventory in the Planning Run ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .583Stock Types in Production Planning.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .584Modeling Quality Inspection in Production planning .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .595

Unit 11: Component Availability ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .615ATP in the Planned order ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .617Configuration of ATP ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .640

Unit 12: Simulating the Production Plan ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .657Long-term planning requirements .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .658

Index ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .697

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Course Overview[Enter a brief overview of the course.]

Target AudienceThis course is intended for the following audiences:

Consultants Implementing MRP/MPS in SAP ERP Customers or Users who will be using MRP/MPS on a daily basis

Course PrerequisitesRequired Knowledge

Working knowledge of the following master data objects in SAP ERP

Material Masters Bills of material Task Lists/Routings Work Centers/Resources Master Recipes

Recommended Knowledge

General understanding of Production Planning process and industry terms General understanding of SAP ERP applications and the integration to

Production Planning (PP)

Course Duration DetailsUnit 1:Overview of Production Planning in SAP ERPSAP ERP Supply Chain Planning Overview 45 MinutesExercise 1: Overview of SAP ERP Supply ChainPlanning 25 Minutes

Unit 2: Evaluation the Planning ResultsUsing the MRP and Stock/Requirements List 30 MinutesExercise 2: Using the MRP Lists 10 MinutesException Messages in SAP ERP 30 MinutesDays Supply 25 Minutes

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Course Overview SCM240

Unit 3: MRP BasicsConcept of MRP 20 MinutesMRP Types 40 MinutesPrerequisites for Running MRP 20 MinutesMethods for Executing a planning run 30 MinutesExercise 3: Executing a planning run in SAP ERP 30 MinutesSettings in the Planning Run 30 MinutesExercise 4: Settings in the planning run 20 Minutes

Unit 4: Demand Management in SAP ERPOverview of Demand Management 30 MinutesExercise 5: Managing your Planned IndependentRequirements Minutes

Make to Stock versus Make to Order 10 MinutesMake to Stock Planning Strategies 45 MinutesExercise 6: Using Make to Stock planning strategies 30 MinutesMake to Order Planning Strategies 45 MinutesExercise 7: Make to Order in SAP ERP MinutesSettings and Customizing 50 Minutes

Unit 5: Master Production SchedulingMaster Production Scheduling 25 MinutesExercise 8: Master production scheduling (MPS)and material requirements planning (MRP) 25 Minutes

Unit 6: Influencing the Planning RunNet Requirements Calculation 20 MinutesUsing Buffers in Planning 30 MinutesExercise 9: Dynamic Safety Stock 25 MinutesControlling order quantities in the planning run 45 MinutesExercise 10: Controlling Order Quantities in thePlanning Run 25 Minutes

Multi-Site Planning 30 MinutesExercise 11: Multi-Site Planning 30 MinutesContinuous Input/Output 35 MinutesExercise 12: Continuous Input/Output in thePlanning Run (OPTIONAL) 25 Minutes

Unit 7: Technical Process of the Planning RunBasic Dates Scheduling in the Planning Run 30 MinutesExercise 13: Basic DateScheduling in the PlanningRun Minutes

Lead Time Scheduling in the Planning Run 40 Minutes

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SCM240 Course Overview

Exercise 14: Lead Time Scheduling in the PlanningRun 15 Minutes

Master Data Selection during the Planning Run 20 Minutes

Unit 8: Multiple Sources of Supply in PlanningSource Determination Overview 30 MinutesSource Determination in Manufacturing 30 MinutesExercise 15: Source Determination inManufacturing Minutes

Quota Arrangements 30 MinutesExercise 16: Production Versions and QuotaArrangements Minutes

Source Determination in Procurement 30 MinutesExercise 17: Source Determination in Procurement Minutes

Unit 9: Life Cycle PlanningDiscontinuation in Production Planning 45 MinutesExercise 18: Discontinuation in production planning 25 Minutes

Unit 10: Effects of Inventory in the Planning RunStock Types in Production Planning 30 MinutesModeling Quality Inspection in Production planning 30 MinutesExercise 19: QM lots in Production Planning Minutes

Unit 11: Component AvailabilityATP in the Planned order 45 MinutesExercise 20: Availability Checking in the Plannedorder 25 Minutes

Configuration of ATP 30 Minutes

Unit 12: Simulating the Production PlanLong-term planning requirements 50 MinutesExercise 21: MRP Run 25 Minutes

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Course GoalsThis course will prepare you to:

Gain an overview of the basic principals of SAP ERP Production Planning Demonstrate the tools that a production planner would use on a daily basis Demonstrate how Planning strategies are used to control the planning and

inventory process Gain detailed working knowledge of:

Demand Managements (DM) Materials Requirements Planning (MRP) Master Production Scheduling (MPS) Long Term Planning (LTP)

Demonstrate how to configure MRP in SAP ERP

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

Gain an overview of the basic principals of SAP ERP Production Planning Demonstrate the tools that a production planner would use on a daily basis Demonstrate how Planning strategies are used to control the planning and

inventory process Gain detailed working knowledge of MRP/MPS in SAP ERP Demonstrate how to configure MRP in SAP ERP

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

Several of the Tasklists for the R-F##, and R-B## at plant 1000 are in German. UseT-Code ZPSL or YILA to translate tasklists from English to German.

Prior to the start of this class CATT ZT_SCM240 must be run in order togenerate the following data:

Configuration

Change Calendar in Plant 2400 from IT to 01. This allows the R-F1## at 2400 tobe included in a product group to introduce the multi-site planning lesson.

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SCM240 Course Overview

Master Data:

Create the Following Material Masters:

R-F3##/1000 R-F4##/1000 R-F5##/1000 R-F1##/2400

Create BOM and Routings for the Following materiasl copying from the R-F1##/1000

R-F3##/1000 R-F4##/1000 R-F5##/1000

Chage the following settings to the the mateiral master records

R-F1##/1000: Strategy 10 R-F2##/1000: Strategy 40 R-F3##/1000: Strategy 50 R-F4##/1000: Strategy 52 R-F5##/1000: Strategy 20 R-F1##/2400: Strategy 40

Creat Product groups Pump-00 thru Pump-30, Include the following settings:

Material Plant Agg Factor ProportionR-F1## 1000 1 20R-F2## 1000 1 20R-F3## 1000 1 20R-F4## 1000 1 20R-F1## 2400 1 20

Create Rough Cut Planning Profile for Pump-## Plant at 1000

Time Span: 20 Days

Base Qty: 1 pc

Status: 4 Release General

Usage: 1- Production

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From Lot Size: 1 To Lot Size: 999,999,999

work center: R-L## /1000

Running Rate 7 min/pc

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Unit 11 Overview of Production Planning in

SAP ERP

Unit OverviewThis unit will give you an overview of some of the steps that be performed by a supplychain planner using SAP ERP.

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

Outline the steps in the SAP ERP Supply Chain Planning process Demonstrate knowledge of the different planning techniques in SAP ERP

Unit ContentsLesson: SAP ERP Supply Chain Planning Overview ... . . . . . . . . . . . . . . . . . . . . . . . . . .2

Demonstration: Sales and Operations Planning ... . . . . . . . . . . . . . . . . . . . . . . . . . . .5Demonstration: Display Requirement in Demand Planning .. . . . . . . . . . . . . . . .8Demonstration: Materials Requirements Planning.. . . . . . . . . . . . . . . . . . . . . . . . . 11Exercise 1: Overview of SAP ERP Supply Chain Planning.. . . . . . . . . . . . . . . 15

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Unit 1: Overview of Production Planning in SAP ERP SCM240

Lesson:2

SAP ERP Supply Chain Planning OverviewLesson Duration: 45 Minutes

Lesson OverviewIn this lesson you will get an overview of supply chain planning as it could beimplemented with SAP ERP. This will involve understanding the different steps in theprocess and how they are interrelated.

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

Outline the steps in the SAP ERP Supply Chain Planning process Demonstrate knowledge of the different planning techniques in SAP ERP

The idea of this unit is to give students a high level overview of the entire process.An exercise will be done at the end of the lesson to setup the evaluation unit anddemand management unit.

Business ExampleThe Precision Pump company manufactures and sells pumps. Some manufacturedgoods are produced in-house and the rest are externally procured. As a planningmanager, you need to plan and manage the requirement, sales, and manufacture ofpumps. To do so, you need to evaluate and analyze the SAP ERP solution for SupplyChain Planning. To do this you will identify the different step in the process andcompare them to the functionality in the Production Planning (PP) module of SAPERP.

SAP ERP Supply Chain Planning ProcessAny business that sell products or services typically needs to perform some sort ofplanning process to ensure enough supply is available to support demand. Dependingupon the types of products or services a company offers, or the industry in which theymay compete, the process might be altered slightly.

The overall goal of production planning is to maintain high customer service levelswhile minimizing costs. The process may be adapted based on certain characteristicsof the material during the sales, inventory management or production process.

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SCM240 Lesson: SAP ERP Supply Chain Planning Overview

Figure 1: The Production Planning Process

In the graphic above you can see the different steps that can be used in SAP ERP tostart what is often referred to as the Plan to Inventory process. This process is typicalin a make to stock type of environment, where a forecast, sales plan, or demand plan isrequired to triggered procurement of some nature. This demand can be at the finishedgood, semi finished good, or raw material level.

Sales and Operations Planning (S&OP)The first step in any make to stock process is to derive some type of demand at the plantwith a forecast. This demand plan will be the basis or input in the operational process.S&OP is a strategic process. This typically entails developing a sales plan from anywhere between six to eighteen months or longer, depending upon the industry.



Figure 2: Sales and Operation Planning (S&OP)

The S&OP process is typically made up of a minimum of three steps:

1. Sales Plan2. Production Plan3. Rough Cut Capacity Planning

The sales plan is typically generated using historical consumption (sales) data thenapplied to a statistical model in order to generate a forecast. During the first passat creating sales plans, they should be developed without regards to operationalconstraints. This will give the operations team a look at the truedemand.

The process it self is rough in nature due to the fact the demand is typically created ataggregate levels than what is typically executed. This means that the sales plan maybe created at the regional, division, or product group level. In addition it is oftendeveloped in weekly or monthly buckets of time, compared to the operations teamthat will plan at material and daily level.

When demand is created at a higher level than which inventory is stored, adisaggregation process is required. Disaggregation will require proportional factors orpercentages to ultimately get a high-level plan down to the material level.

The first time the production plan is generated, it is typically equivalent to that of thesales plan. This assumes that the operations team will attempt to meet demand as it isplanned by sales. Once the initial production plan is generated, it will be evaluatedusing rough cut capacity planning.



In rough cut capacity planning, planners will identify one or more bottleneck workcenters, and/or several critical materials for which supply is tight. If the capacitycheck identifies overloads then planners will typically adjust the production plan inaccordance with the work centers capabilities. This might typically involve movingproduction forward of the demand in order to build inventory ahead of the capacityconstrained period.

Demonstration: Sales and Operations Planning

Purpose

System DataSystem: SAP ERPClient: 8XXUser ID:Password:Set up instructions:1. SAP ERP menu path: Logistics Production SOP Product Group

Display (MC85)

2. Enter Product group Pump-## at plant 1000

3. The product group should contain the following data:

Material Plant Agg Factor ProportionR-F1## 1000 1 20R-F1## 2400 1 20R-F2## 1000 1 20R-F3## 1000 1 20R-F4## 1000 1 20

4. Exit Transaction

5. SAP ERP menu path: Logistics Production SOP Planning ForProduct Group Change (MC82)

6. Enter Product Group PUMP-## at plant 1000 and select the Active version.

7. Enter the following demand starting in the third period:



Period Month 3 Month 4 Month 5 Month 6 Month 7 Month8

Sales 1000 800 1000 900 1000 1100

8. Edit Create productn plan Synchronous to sales

9. Views Capacity situation Rough-cut planning Show

10. Select Save

11. SAP ERP menu path: Logistics Production SOP DisaggregationBreak Down PG Plan (MC76)

12. Enter Product Group PUMP-## at plant 1000 and select the Active version.

13. Select Create Sales Plan and select Continue

14. Scroll to review the details of the disaggregated sales plan

15. SAP ERP menu path: Logistics Production SOP Planning ForProduct Group Transfer Product Group to Planning (MC75) enter thefollowing:

Field ValueProduct Group Pump-##Plant 1000Version A00Transfer strategy andperiod

Prod.plan for mat. or PG members as proportionof PG

From/To Leave defaultsInvisible Transfer Leave SelectedRqmts type Leave BlankVersion 00Active Select

16. Select Transfer Now



Demand ManagementDemand management is the link between top-level requirements planning (S&OP)and materials planning (MPS and/or MRP).

Figure 3: Demand Management in Production Planning

Demand management may contain one or more demand programs or versions thatwill help drive the production planning process. Input for the demand programs cancome from one or more sources:

The Sales Plan or Production Plan from S&OP A Material Forecast Manual Entry Another program Plan Transferred from SAP SCM

The result of the demand programs are called Planned Independent Requirements(PIRs). Demand management determines the requirements dates and quantities ofthe materials we are planning. Planning strategies are used to determine how thesePIRs will be used during the MPS/MRP planning runs.

Demand Management can be tied into the Sales and Distribution module to ingratesales orders with the planning run. Sales orders can serve as a sole requirementssource, for which procurement is then triggered specifically (make-to-order), ortogether with planned independent requirements, they can create the total demand.



Demonstration: Display Requirement in DemandPlanning

Purpose

System DataSystem: SAP ERPClient: 8XXUser ID:Password:Set up instructions:1. SAP ERP menu Path: Logistics Production Production Planning

Demand Management Planned Independent Requirements Change (MD62)

2. Select Product Group and enter Pump-## at plant 1000.

3. SAP ERP menu Path: Logistics Production Production PlanningDemand Management Environment Stock/Requirements List (MD04)

4. Enter R-F1## at Plant 1000

Long Term PlanningOver the course of normal business, planners will often be presented with Whatif....... Whether the situation be a shift in demand patterns, extensions of existingproduct lines or the creating of new product lines, each situation could present aproblem with available capacity or material availability.



Figure 4: Long Term Planning

In SAP ERP, simulation planning can be obtained through the use of the Long TermPlanning (LTP) module. Long term planning is an optional tool that will allowplanners to simulate demand changes and run a full Materials Planning and CapacityPlanning analysis. These analyses allow planners to identify possible work centeroverloads or issues obtaining semi-finished or raw materials. Long term planning willhave the same capabilities and analysis tools that the operational planners will use toconstantly evaluate the production plan.

Production Planning ProceduresWhen deciding how to use SAP ERP for planing you will need to identify howmaterials behave over the course of time. Certain characteristics will decide howmaterials are going to be handled in SAP ERP Planning runs.



Figure 5: Planning Procedures in SAP ERP

Planning procedures will be typically made at the material/plant level. Thereforeplanners can group products that behave similarly together so that they can usecommon planning techniques.

In SAP ERP there are three main techniques that planners can use to drive theproduction planning process:

Master Production Scheduling (MPS) Material Requirements Planning (MRP) Consumption Based Planning

MPS and MRP will be discussed at great length in this course. MPS/MRP take intoaccount current inventory and any frozen production as a starting point. Then usingfuture planned demand (PIRs) or actual demand (sales orders), trigger a calculationprocess to predict future procurement or need.

In contrast Consumption Based Planning is based on past usage values and uses aforecast to statistical procedure to determine future requirements. Consumption basedplanning is characterized by its simplicity and is mainly used for B and C parts withlow value.



Demonstration: Materials Requirements Planning

PurposeDescribe at an overview level the purpose of MRP

System DataSystem: SAP ERPClient: 8XXUser ID:Password:Set up instructions:1. From the system menu at the top: System Create Session

2. SAP ERP menu path: Logistics Production MRP PlanningSingle-Item, Multi-Level Planning (MD02)

3. Use the following parameters for the planning run for product groupPump-## atplant 1000:

Field ValueProduct Group SelectedProcessing Key NETCHCreate Purchase Req. 1 - Purchase requisitionsDelivery Schedules 3 - Schedule linesCreate MRP List MRP ListPlanning Mode 1 - Adapt Planning DataScheduling 2 - Lead time schedulingAlso plan unchanged components Select

4. SAP ERP menu path: Logistics Production MRP EvaluationsStock/Requirements List (MD04)



Capacity planningThe economic use of resources is an objective for many areas of a company. In recentyears many companies have consolidated facilities in order to obtain a higher rate ofutilization on resources. This trend has caused many companies to place more focuson the creation of a detail plan or a shop floor schedule

Figure 6: Capacity Planning

In SAP ERP this process is called Capacity Requirements Planning (CRP). Thisprocess typically consists of two steps:

Capacity Evaluation Capacity Leveling

With capacity evaluation, schedulers are reviewing the results of MPS/MRP and arelooking for any time periods in which certain work centers may have more productionplanned than can be actually executed. This is called an overload.



When and overload has been identified the production scheduler begins reschedulingthe orders based on additional planning criteria. This may include performing finitescheduling to ensure that the resource is not overloaded, or performing an optimizationrun to improve the schedule by grouping like production runs together to reducethe amount of setup time between jobs.

Note: Capacity planning in SAP ERP can occur in:

SOP After MPS After MRP With Production and Process orders Long Term Planning

The result of CRP will be a detailed schedule that will be issued to the shop floor.This schedule will instruct production management of the sequence and prioritiesof the production.

Shop Floor ControlOnce a shop floor scheduled has been created and issued, the next step is execution,or shop floor control. In SAP ERP, companies will have several options to choosefrom on how they wish to execute and track production.

Figure 7: Production Execution



The graphic above identifies four types of execution process in SAP ERP:

Repetitive Mfg (REM) Production Orders Process orders. Project systems

Repetitive Manufacturing is the simplest form of execution. This is often used forless complicated products that are made several times a week/month, or endure longproduction runs while receiving production continuously. This type of execution isoften used in consumer products or the chemical industry. With this type of executionprocess communication between scheduling and execution must remain tight, but thecontrol of the process remains simple. The shop floor will use planned orders tocommunicate production runs, and production will be tracked on a material basisnot an order basis.

Production orders are typically used in a more complicated manufacturing process.Complex products typically require a higher degree of control on the productionfloor. With production orders, companies can control and track the production processthrough the uses of order status. The production orders also act as a cost and datacollector for each production run. This allows management to review each productionrun if necessary, for efficiency and profitability.

Process orders are used more often in regulated industries. Process orders are verysimilar to production orders in that they act as a cost and data collector for eachproduction run. However, industries like pharmaceuticals and food require tightercontrols and tracability. Process orders have a tighter integration with EngineeringChange Management (ECM) and can develop electronic batch records of eachproduction run to give details of every step of the production process.

Project Systems (PS) is often used in Engineer-to-Order industries. This would beapplicable in construction and aero space and defense to name a few. Project systemsprovides tight control and accounting for long extremely complex manufacturing.Using a Work Break down structure and activities tied to production orders, allowscompanies to tie several levels of production or services together for better supervisionand cost control.



11 Exercise 1: Overview of SAP ERP SupplyChain PlanningExercise Duration: 25 Minutes

Exercise ObjectivesAfter completing this exercise, you will be able to: Create a high level sales and production plan for your Product group Pump-## Transfer a production plan at the product group level to the material level Execute MRP to initiate a procurement plan

Business ExampleAs a senior planner, you must be able to explain how SAP ERP will be used to modelyour entire production planning process. Enter a simple sales plan in S&OP andrun it through a simplified production planning process to get a basic overview ofthe functionality.

System DataSystem: SAP ERPClient: 8XXUser ID:Password:

CATT: Z_SCM240Set up instructions:

1. CAT ZSCM240 Must be run prior to executing this exercise

Task 1: Create a Sales and Operations Plan in SAP ERPTo better understand the SAP ERP production planning process, we will create a salesplan for one of your pump product groups. You will then release the sales plan todemand management as the demand plan, which will drive the MRP/MPS processfor IDES.

1. A product group Pump-## has been created for you at plant 1000 to representthe materials that you will be responsible for planning. Display your productgroup and fill in the table below:

Continued on next page



Material Number Plant Proportion

2. Create /Change a sales plan for your product group PUMP-## at plant 1000 inthe active version (A00). Enter the following demand starting in the third period:


Sales 1000 700 800 900 1000 1100

3. Create a production plan that equals the sales plan

4. View the rough cut capacity to see if your demand is going to cause any potentialcapacity overloads, at work center R-L##, at any point within the planninghorizon.

5. Save your plan

Task 2: Planned Independent RequirementsOnce a sales and production plan is complete at the strategic level, it must betransferred to the operations level were it can be viewed at the material level. Oncedemand is active in demand management, it can be used to drive the MPS/MRPprocess.

1. Now that you have created a high level or rough production plan for your productgroup, PUMP-## at plant 1000 for version A00, disaggregate and release theplan, to the locations, at the material level using the product groups proportions.

2. Now that demand has been disaggregated and transferred to the material level,review the planned independent requirements in demand management. Fill outthe following table based on the results of your transfer:




Mat. Plant Ver. P1 P2 P3 P4 P5 P6

3. Now that you have transferred demand from the strategic high-level plan, downto a tactical material level, use the stock requirements list to review what thetransfer has actually accomplished for your material R-F1## at plant 1000:

4. What is your current planning situation?

Task 3: Material Requirements PlanningAfter releasing the production plan from the S&OP process, you have populateddemand management with planned independent requirements. These requirements arecausing negative inventory. Using material requirements planning, you will create aprocurement plan for product R-F1## .

1. After reviewing the stock/requirements list, it is obvious that demand isexceeding supply. In a second session, run a single-item, multi-level MRP runfor R-F1## at plant 1000. Use the following parameters for the planning run:

Field ValueProcessing key NETCHCreate purchase req. 1 - Purchase RequisitionsDelivery schedules 3 - Schedule linesCreate MRP list MRP List




Field ValuePlanning mode 1 - Adapt Planning DataScheduling 2 - Lead time scheduling

and capacity planningAlso plan unchanged components Select

2. Now that a MRP run has been executed, review the stock requirements list, forR-F1## at plant 1000, to determine if the planning situation has changed.

3. What has changed as a result of the MRP run?



Solution 1: Overview of SAP ERP SupplyChain PlanningTask 1: Create a Sales and Operations Plan in SAP ERPTo better understand the SAP ERP production planning process, we will create a salesplan for one of your pump product groups. You will then release the sales plan todemand management as the demand plan, which will drive the MRP/MPS processfor IDES.

1. A product group Pump-## has been created for you at plant 1000 to representthe materials that you will be responsible for planning. Display your productgroup and fill in the table below:

Material Number Plant ProportionR-F1## 1000 20R-F1## 2400 20R-F2## 1000 20R-F3## 1000 20R-F4## 1000 20

a) SAP ERP menu path: Logistics Production SOP Product Group Display (MC85)

b) Enter Product group Pump-## at plant 1000

2. Create /Change a sales plan for your product group PUMP-## at plant 1000 inthe active version (A00). Enter the following demand starting in the third period:


Sales 1000 700 800 900 1000 1100

a) SAP ERP menu path: Logistics Production SOP Planning ForProduct Group Change (MC82)

b) Enter Product Group PUMP-## at plant 1000 and select Active version.

c) Enter the demand as indicated in the table above.




3. Create a production plan that equals the sales plan

a) Edit Create productn plan Synchronous to sales

4. View the rough cut capacity to see if your demand is going to cause any potentialcapacity overloads, at work center R-L##, at any point within the planninghorizon.

a) Views Capacity situation Rough-cut planning Show

Note: Any production overloads would manually be addressed bydecreasing or increasing production to keep the capacity loadunder 100%.

5. Save your plan

a) Select Save




Task 2: Planned Independent RequirementsOnce a sales and production plan is complete at the strategic level, it must betransferred to the operations level were it can be viewed at the material level. Oncedemand is active in demand management, it can be used to drive the MPS/MRPprocess.

1. Now that you have created a high level or rough production plan for your productgroup, PUMP-## at plant 1000 for version A00, disaggregate and release theplan, to the locations, at the material level using the product groups proportions.

a) SAP ERP menu path: Logistics Production SOP Planning ForProduct Group Transfer Product Group to Planning (MC75) enter thefollowing:

Field ValueProduct group Pump-##Plant 1000Version A00Transfer strategy and period Prod.plan for mat. or PG members as

proportion of PGFrom/To Leave defaultsInvisible Transfer Leave SelectedRqmts type Leave BlankVersion 00Active Select

b) Select Transfer Now, to transfer the product groups production plan to thematerial level in Demand Management.

2. Now that demand has been disaggregated and transferred to the material level,review the planned independent requirements in demand management. Fill outthe following table based on the results of your transfer:

Mat. Plant Ver. P1 P2 P3 P4 P5 P6R-F1## 1000 00 200 140 160 180 200 220R-F1## 2400 00 200 140 160 180 200 220




Mat. Plant Ver. P1 P2 P3 P4 P5 P6R-F2## 1000 00 200 140 160 180 200 220R-F3## 1000 00 200 140 160 180 200 220R-F4## 1000 00 200 140 160 180 200 220

a) SAP ERP menu Path: Logistics Production Production PlanningDemand Management Planned Independent Requirements Change(MD62)

b) Select Product Group and enter Pump-## at plant 1000. Select Enter.

c) Select the Table tab to review the period details of all materials.

d) Exit the Planning Table.

3. Now that you have transferred demand from the strategic high-level plan, downto a tactical material level, use the stock requirements list to review what thetransfer has actually accomplished for your material R-F1## at plant 1000:

a) SAP ERP menu Path: Logistics Production Production PlanningDemand Management Environment Stock/Requirements List (MD04)

4. What is your current planning situation?

Answer: Current inventory balance is Zero (0). The independent requirements,from the production plan, are causing a negative available balance. Theserequirements which are acting like a demand plan, will drive production planningat the material level.

Task 3: Material Requirements PlanningAfter releasing the production plan from the S&OP process, you have populateddemand management with planned independent requirements. These requirements arecausing negative inventory. Using material requirements planning, you will create aprocurement plan for product R-F1## .

1. After reviewing the stock/requirements list, it is obvious that demand isexceeding supply. In a second session, run a single-item, multi-level MRP runfor R-F1## at plant 1000. Use the following parameters for the planning run:

Field ValueProcessing key NETCHCreate purchase req. 1 - Purchase Requisitions




Field ValueDelivery schedules 3 - Schedule linesCreate MRP list MRP ListPlanning mode 1 - Adapt Planning DataScheduling 2 - Lead time scheduling

and capacity planningAlso plan unchanged components Select

a) From the system menu at the top: System Create Session

b) SAP ERP menu path: Logistics Production MRP PlanningSingle-Item, Multi-Level Planning (MD02)

c) Select Enter twice to execute the run.

d) Select Back twice to return to the main menu

2. Now that a MRP run has been executed, review the stock requirements list, forR-F1## at plant 1000, to determine if the planning situation has changed.

a) SAP ERP menu path: Logistics Production MRP EvaluationsStock/Requirements List (MD04)

3. What has changed as a result of the MRP run?

Answer: As a result of MRP, a planned order has been created to cover eachplanned independent requirement. This results in a zero inventory balance aftereach requirement.NOTE: due to different working days in each month, during some teaches thefirst planned order may be late.



Lesson Summary

You should now be able to: Outline the steps in the SAP ERP Supply Chain Planning process Demonstrate knowledge of the different planning techniques in SAP ERP


SCM240 Unit Summary

Unit SummaryYou should now be able to: Outline the steps in the SAP ERP Supply Chain Planning process Demonstrate knowledge of the different planning techniques in SAP ERP


Unit Summary SCM240


SCM240 Test Your Knowledge

21Test Your Knowledge

1. Define Sales and Operations Planning?

2. Standard SOP is the only functionality provided to support this process.Determine whether this statement is true or false. True False

3. How may demand be provided to the SOP tool?Choose the correct answer(s). A Statistical forecast B Manually entered C Copy from COPA D Copy from Sales info System E All of the above

4. Why is shop floor control important in the planning process?


Test Your Knowledge SCM240

22Answers

1. Define Sales and Operations Planning?

Answer: SOP is typically a monthy process where representatives from variousareas of the company meet and review the supply and demand situation from avery high level (typically at the product group level).

2. Standard SOP is the only functionality provided to support this process.

Answer: False

Flexible planning may also be used.

3. How may demand be provided to the SOP tool?

Answer: E

All of the above are valid.

4. Why is shop floor control important in the planning process?

Answer: It provides the latest information to the planning tools as to whathas actually occured.


Unit 223 Evaluation the Planning Results

Unit OverviewThis unit will introduce you to the tools that would be used on a day to day basisduring the planning process. You will customize some of the views that speed uptasks in later units.

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

Demonstrate how to use the MRP and Stock Requirements List for use in dayto day planning.

Describe the differences between the MRP List and Stock Requirements (S/R)list

Explain how exception messages are used in the production planning process Demonstrate how to configure exception messages. Interpret days supply and receipt days supply

Unit ContentsLesson: Using the MRP and Stock/Requirements List . . . . . . . . . . . . . . . . . . . . . . . . . 31

Demonstration: Navigating the Stock Requirements list . . . . . . . . . . . . . . . . . . . 35Procedure: Navigating the Stock Requirements list . . . . . . . . . . . . . . . . . . . . . . . . 37Demonstration: Changing MRP Elements in the Stock Requirementslist . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38Demonstration: Navigate the Overview Tree .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42


Unit 2: Evaluation the Planning Results SCM240

Demonstration: Order Report .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44Demonstration: Pegged Requirements.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45Demonstration: Navigation Profiles .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51Demonstration: Collective Access to MRP Lists and Stock/RequirementsLists .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54Exercise 2: Using the MRP Lists .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

Lesson: Exception Messages in SAP ERP... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71Demonstration: Use of Exception messages ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76Procedure: Using Exception Messages .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78Demonstration: Exception Message Configuration .. . . . . . . . . . . . . . . . . . . . . . . . 79

Lesson: Days Supply .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83Demonstration: Days Supply and Receipt Days Supply ... . . . . . . . . . . . . . . . 86


SCM240 Lesson: Using the MRP and Stock/Requirements List

Lesson:24

Using the MRP and Stock/Requirements ListLesson Duration: 30 Minutes

Lesson OverviewIn this lesson, you will learn about the usage of Material requirements planning (MRP)List and Stock/Requirements List and its functions. In addition, you will learn how tocollectively access the both result lists.

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

Demonstrate how to use the MRP and Stock Requirements List for use in dayto day planning.

Describe the differences between the MRP List and Stock Requirements (S/R)list

Processing the MRP results usually follows a total planning run. The aim is tomanually process problem situations, which have led to the creation of exceptionmessages. The typical tools for this manual processing are the stock/requirements listand the MRP list with their respective collective accesses. Alongside the exceptionmessages, these lists offer a range of functions for processing the planning results:Rescheduling data, firming, evaluation functions such as order report or peggedrequirements, days supply and receipt days supply.

Business ExampleAs a production planner, you need to ensure that the production plan generated bythe SAP ERP system, meets the demand requirements. In order to do this you need atool that will help you manage problems with the production plan, and give detailedinformation as to the supply and demand situation. Explore the MRP List andStock/Requirements (S/R) List as an option for managing the production plan.



Planning Run List EvaluationsAs a result of a planning run in SAP ERP, a production and procurement schedule willhave been created. The planning run will have generated the following items:

Planned orders Purchase requisitions Schedule Lines Stock Transfer Requests Material Transfers Dependent Requirements Exception messages

Planners will require a tool that will allow them to view the results and to identifyif any problems have occurred. Prior to the initiating the planning run a planner candecide if they want an MRP list to be generated to display the results of the planningrun. The MRP list will be created at the Material/MRP Area/Plant level. The MRP listalways displays the supply and demand situation at the time of the last planning runand it also provides a work basis for the MRP controller. Changes that are made afterthe planning date are not taken into consideration, so the list is static. MRP lists arestored in the system until they are either deleted manually or replaced by new listsfrom a subsequent planning run.

While the MRP list is a result of the planning run, a real evaluation tool is available inthe Stock/Requirements (S/R) list. The structure of the lists are very similar in nature.Each list will have its own unique attribute to display the relevant information forwhich it was designed; Static or Real time.



Figure 8: MRP List and Stock/Requirements (S/R) List Layout

The MRP list and S/R lists are made up of several different components to which theuser can navigate to at any time:

Material Header Material Header Details (Dynamic) Material Tree (Dynamic) MRP Elements Period Totals (Dynamic)

The material header will identify which material/location is being viewed as wellas the unit of measure. The header details are dynamic, and can be turned on or off.These details refer to information about the material master or planning statisticsthat were a result of the last planning run.

The overview tree is used for toggling between various material numbers selected bythe user. If users access the the collective list and select several materials, all materialswill appear in the tree. If a user accesss the MRP list using a product group, the listwill contain all the members of the product group.

The MRP Elements section will give the details about the supply and demandsituation. An MRP Element is a term for all objects displayed as items in the MRP listor in the S/R list. Such objects include planned orders, purchase orders, reservations,and sales orders. The MRP Elements are listed individually by day. By selecting any



MRP element and pressing the F1 key, users can get a list of all the MRP elementsused by SAP ERP. MRP Elements are created on the basis of the supporting masterdata. Not all MRP Elements will be applicable for a material.

The period totals display will aggregate the MRP elements to a larger bucket oftime, by summarizing the same MRP elements for the same day/week/month or userdefined period.

The basic structure of both lists is the same:

Figure 9: Planning Segments

The MRP and S/R list is divided into various planning segments. This means thatrelated MRP elements are also displayed together. Depending upon which planningstrategy(s) are being used the list reports might be broken down into several segments.For example in a make-to-order scenario, each order and its associated inventorywill be planned separately from any other inventory or order. The individual stocks,receipts, and issues are displayed and planned within the appropriate segment. TheMRP calculation takes place within the individual segments.

Within each segment, the system will display the receipt first, followed by therequirement. If a receipt will be late then it will show up after the requirement, andtypically, exception messages will appear describing any issues with the plan.



Variable HeadersThe header details of the List reports contain additional data for the planning run. Inparticular, they contain the number of exception messages that have occurred duringthe planning of a material (MRP List Only). You define the display of the headerdetails for the MRP evaluations in the Customizing IMG activity Define screensequence for header details. Using the IMG menu path Production MRPEvaluation Define Screen Sequence for Header details , companies can createthere own sequence of headers.

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.TheMRP type controls the screens that are displayed in the requirements planningevaluations. For this, the screen sequences have a key that is assigned to theMRP type. Therefore, you can display different master data for the evaluation ofconsumption-based materials than for planning-based materials.

Demonstration: Navigating the Stock Requirements list

Purpose

System DataSystem:Client:User ID:Password:Set up instructions: Exercise from Lesson Production Planning overview mustbe complete.

CATT Z_SCM240 should be run to generate master data.

1. SAP ERP menu path: Logistics Production MRP Evaluations Stock/Requirements List

2. Enter Material R-F1## at plant 1000 and press ENTER

3.

Caution: To show the Material header information select ExpandHeader details.

4. To show the MRP elements in an Aggregated time bucket select Switch toperiod totals and select the tab with the correct period of aggregation.



5. Select Switch to individual lines.



28Navigating the Stock Requirements list

1. SAP ERP menu path: Logistics Production MRP Evaluations Stock/Requirements List


3. To show the Material header information select Expand Header details.

4. To show the MRP elements in an Aggregated time bucket select Switch toperiod totalsand select the tab with the correct period of aggregation.

5. Select Switch to individual lines.

Functions of the MRP listOnce in the MRP list a planner can use the data displayed to make intelligent businessdecisions. In addition to displaying information, the MRP list is interactive and cancarry out several functions.

Figure 10: Functions of the MRP List

Once inside the List reports, users can create/change the material memo. This is aworking script of notes regarding the material. In the List reports, the material memowill be marked with whom ever has updated the memo last and the date it was lastchanged.



Each MRP element can be viewed in more detail. By selecting Details of Element,users can view more summary information about the specific MRP element. In

addition it will give the user additional options to possibly Change or Displaythe element. Depending upon which element is chosen other options are availablesuch as converting a planned order to a production order, partially converting to aproduction order, convert to a process order, or convert to a purchase requisition.

Over time planners will make changes to the plan that should be documented. Thismay be required to adhere to company wide accountability standards. By selecting the

Material Memo icon, users can leave long text notes, which will be cumulatedover time. After saving the material memo, the icon will show who and when lastchanged the long text on the material memo.

Users can also access the following functions:

Change/Display Material master Display ATP Quantities View Stock/Sales Statistics Compare results to Long Term Planning

Demonstration: Changing MRP Elements in the StockRequirements list

Purpose

System DataSystem:Client:User ID:Password:Set up instructions:1. SAP ERP menu path: Logistics Production MRP Evaluations Stock/

Requirements List


3. Select the first Planned order and Double click or select Details of elementthen select Change element



4. Select the first planned independent requirement and select Details ofelementthen select Change element

5. In the material field, replace R-F1## with R-B1## and press ENTER

6. Select Details of element, for the first dependent demand and display theparent planned order number

7. In the material field, replace R-B1## with R-T1## and press ENTER

8. Select Details of element, for the first purchase Requisition.

9. Demonstrate changing the material master. From S/R List Menu Path:Environment Change Material

List Report Display StructureThroughout the course of a day planners will have to review the supply and demandsituation as it relates to several materials. Depending upon how the user enters the listreports, they may have access to a tree structure on the left side of the screen that willmake navigating between materials easier.

Displaying the material tree is optional. Upon entering either list report, the overviewtree can be accessed by selecting Show Overview tree button.

You can change the layout of the tree and display the following:

Worklist tree Order tree Product group tree

After accessing one of the lists, each user can set the overview tree to appearautomatically. To set the overview tree to appear automatically, users must selectSave Settings, and in the Display tab select Overview Tree Displayed option.

Caution: This setting will be relevant for both the MRP List and the S/R list.



Figure 11: Overview Tree

The worklist tree displays all materials in the current session. When accessing thelist through the collective process, all materials that were selected are displayed.Otherwise as you type over the material number, the new product will be added tothe worklist. The work list can be customized by each user. You can set in whichorder the fields are to be displayed. User-specific definitions for the traffic lightsare also possible. User-specific sortings and groupings, such as according to theprocessing indicator, are possible. You can search for specific materials accordingto exception messages.

You can display the stock/requirements list or MRP list for a material bydouble-clicking on the material in the tree.



Figure 12: Order Tree

The order tree will display the individual component requirements for the selectedorder or requirement are displayed on several levels. By selecting the planned order in

the MRP Elements section, and selecting Order Tree, the multi level order willbe displayed. In addition to the order details, exception messages and information willappear to the right of the material number. By selecting the line dividing the tree fromthe MRP elements a user can re-size the window and see more order information.

Note: As of SAP ERP release 4.7, it is possible to now view order networkexceptions. These messages are generated and placed at the top assembly ifthere is an exception at a lower level.

When you navigate in the order tree, by selecting a material the correctstock/requirements list or MRP list is displayed in the MRP Element area, and theelement involved in the order report is highlighted. This way, you can quickly get anoverview of the stock situations at all levels of the order structure.

The product group tree will only appear if users have accessed the collective listsand used Product group as the selection criteria. By selecting a particular material, theMRP Elements section will display the supply and demand situation.



Demonstration: Navigate the Overview Tree

Purpose

System DataSystem:Client:User ID:Password:Set up instructions:1. SAP ERP menu path: Logistics Production MRP Evaluations

Stock/Requirements List


3. Display the order tree, by selecting the first planned order and then selectSet Up Order Structure.

4. Double click on several of the components, in the tree structure, to show theMRP elements changing and the element being highlighted in blue.

5. Show students the MRP exceptions. Move your cursor just to the right of thealert icons to get the quick info on the exceptions.

6. Show the worklist tree by selecting Work list.



Order Report

Figure 13: Order Report

The evaluation Order report enables you to gain an overview of the status of allBOM levels from the list of MRP elements: Sales order, production order includingcollective and process order, and planned order. In doing so, you can recognizeproblems in the production and procurement of assemblies and components at anearly stage.

You access the transaction directly from the stock/requirements list or the MRP list.

The system determines the receipt elements that are planned for each MRP element.The MRP controller checks how the production of a certain sales order is progressingor if there are missing parts or scheduling problems on a certain BOM level or forcertain components.

The receipt elements are color coded. This enables the MRP controller to foreseepossible future problems on subordinate BOM levels:

Red: There are exception situations on subordinate BOM levels. White: The requirement is covered by warehouse stock on the subordinate

BOM levels. Green: Receipt elements have been created on subordinate BOM levels, yet

no exception situations exist. No color coding: You cannot explode the receipt element any further.



Demonstration: Order Report

PurposeTo demonstrate Order Report/Order Tree/Pegged Requirements




3. Display the order tree for the first planned order. Select the first planned order,

and select Order Report.

4. Drill down to show the details of the report by selecting Open all lines.

5. Double Click on the planned order to see the dependent requirements.

6. Call the list of the component R-T1##. Call the pegged requirements for the firstrequirement in the list and reproduce the path to the order.



Pegged Requirements Report

Figure 14: Pegged Requirements

You can use the evaluation Pegged requirements ( you can access this directly fromthe stock/requirements list and MRP list) to trace from any BOM level on a multilevelbasis which requirements have caused an order proposal and which independentrequirements (particularly sales orders) are affected by the change in date or quantityof an order proposal on a lower level.

In SAP ERP 4, you can navigate from the requirements element directly to thepegged requirement on the level above in the stock/requirements or MRP list. Thesystem displays the stock/requirements or MRP list of the superordinate level andautomatically positions the cursor on the correct line of the pegged requirement. Thismakes it much easier to find pegged requirements on different MRP levels. Youcan call up this function from the details display of the requirements element. Thefunction is available for the requirements, such as dependent requirements, orderreservations, stock transfer requirements, and stock transfer reservations.

Demonstration: Pegged Requirements

PurposeTo demonstrate Order Report/Order Tree/Pegged Requirements





2. Enter Material R-T1## at plant 1000 and press ENTER

3. Display the pegged requirements report for the first purchase req/planned order.

Select the first purchase requisition or planned order, and select PeggedRequirements.

4. This report shows the origin of the requirement at the top of the order structure.

5. Select Order Route to see the trail of requirements as it blew through the billof material.

6. To see and order graphic chart, select Back, then select Graphic.

Advanced Functions of MRP and Stock/RequirementsList

Navigation profile

The navigation profile function is enhanced by the possibility of defining your ownfavorites. See notes : Changeability of Customizing Tables in the Production Systemand Authorization for Maintenance of Own Favorites, for maintaining favorites.

Customizing: Production Material Requirements Planning EvaluationDefine Navigation Profiles

Over time Planners will find the stock requirements list invaluable due to the amountof information that it contains as it relates to supply and demand. However, plannersare often put into a situation where others in the business will asked for data related tocertain MRP elements. As of SAP ERP release 4.6, users can now filter and selectwhich MRP elements can be viewed and used in the available quantity calculation.



Figure 15: Display Filter and Selection Rule

Display filters are used in the Stock/Requirements list and in the MRP list. This isa display function, and display filters have no influence on the MRP elements thatare used in the calculation of the available quantity. You define display filters in theCustomizing IMG: Production MRP Evaluations Filter Define DisplayFilter . In the configuration of the display filter users can choose:

which MRP elements are displayed of the MRP elements that you select, and that are procurement proposals

(planned order, purchase requisitions, schedule lines), whether only the firmedelements are displayed

which MRP segments are displayed which period (display horizon) is displayed You either directly define the display

horizon or allow the user to make the setting in the respective transaction. whether the MRP elements selected should be further limited using certain

additional selections (for example, customer, vendor, storage location) Youeither define these additional selections directly or allow the user to define themin the respective transaction

The filters can be accessed in either of the lists by selecting Filter On. This willallow users to choose the selection filter that fits the particular requirements. To turnthe filter off users can select a blank filter with no limitations or select Filteroff to remove the filter.



Selection rules apply to the stock/requirements list only. You define which MRPelements are displayed and which of these elements are used in the calculation of theavailable quantity. Selection rules enable the analysis in the stock/requirements listof various planning situations that are different with regard to the MRP elementstaken into account. Selection rules have no influence on the requirements calculation.You define these in the Customizing: IMG Production MRP EvaluationsFilter Define Selection Rules.

In detail, you define

which MRP elements are selected to set up the respective evaluation list and/orto calculate the quantity available and the ranges of coverage

do not consider: the element is not displayed and is not used to calculatethe quantity available and the ranges of coverage

display: the element is displayed but is not used in the calculation show affecting availability: the element is displayed and is used in the

calculation which stocks are used to calculate the stock available whether schedule lines in the display are replaced by the more current forecast

delivery schedules or JIT delivery schedules whether dependent requirements and dependent reservations for bulk materials

are displayed and, if necessary, also calculated which period (selection horizon) should be represented. You determine the

selection horizon either directly or allow the user to make this setting in therespective transaction

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 bychoosing the Filter on icon in the list, or in the user-specific settings.

Due to its important content planners will use the List reports several times a day. Dueto its frequency of use, as of SAP ERP release 4.6, the list reports can be customizedby each user. Through users settings, planners will be able to add their own iconbuttons to jump to the most well used transactions for certain types of materials.



Figure 16: Navigation profile

Each user can be assigned a navigation profile. A navigation profile containstransaction calls for transactions that can be called directly from the stock/requirementslist or the MRP list. The transactions are either general, which means actions at thematerial level, or they refer to a particular MRP element (planned order, dependentrequirement).

A navigation profile is defined in Customizing Production MRP EvaluationsDefine navigation profiles, and the user is assigned to a profile in the user-specificsettings 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 preassign three parameters for the initial screenof the transaction. You can also connect the offering of a transaction to certainparameters from the material master, such as procurement type, material type, MRPgroup, and 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. To do this,choose Environment - Own favorites. In addition, you can activate two favorites perMRP element as transaction calls. For this, choose the * button in the details forthe MRP element.



Caution: During the user-specific maintenance of own favorites in thestock/requirements list and MRP list, users may not have the correspondingauthorization. However, also users who have generally no table maintenanceauthorization should be able to maintain these tables in the requirementsplanning.

Authorization group MCMD is assigned to the affected views. Thisauthorization group refers to authorization object S_TABU_DIS and is, ingeneral, assigned to the tables and views of the MRP Customizing. Therefore,users who have no general authorization for the table maintenance in MRP donot have this authorization group.

If it is required that also users who are not allowed to maintain the othertables should be able to maintain entries for their own favorites, a separateauthorization group should be created for this and assigned to these users.In order to create the authorization group for the affected views proceedas follows:

1. With the ABAP Dictionary (Transaction SE11), call up the tablemaintenance generator for views V_U444B and V_U444C (Utilities-> Table maintenance generator).

2. Here, choose Environment -> Authorization -> Authorization groups.3. Create a new authorization group for authorization object

S_TABU_DIS using New entries.4. Return to the previous screen and here replace entry MCMD by your

new authorization group in field Authorization group.5. Save your change.6. Assign this authorization group to the corresponding user profiles.

See note 501318 - MD04: Authorization group for maintenance of ownfavorites, for more information.



Figure 17: 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 Customizing for the MRP type.

A user exit for showing user-specific categories is available.

As of SAP ERP 4.6, you can set the indicator Buffered Reading of Order Report/Treein the general settings of the stock/requirements list. If you set the indicator, stockand requirements situations on the individual MRP levels are buffered in the memorywhen the order report or tree is being compiled. This ensures that subsequent calls ofthe order report and tree can be carried out much faster.

Demonstration: Navigation Profiles

PurposeTo demonstrate Navigation Profiles in the List reports





2. Enter Material R-T1## at plant 1000 and press ENTER

3. Select Save Settings .

4. Scroll through the tabs and select the General settings Tab.

5. In the Navigation profile field select SAPPPMRP00 - MRP Controller.

6. Select Save and enter through any informational messages.

7. Discuss the changes in the application toolbar.

8. Add the Stock Overview Report to your own favorites.

Collective Access to MRP and Stock/Requirements ListAfter a planing run is completed, every planner will have the same question, Wheredo I start? Due to the amount of materials most planners are responsible for, it isimpossible and illogical to review the results of every material. Therefore, after theconclusion of every batchplanning run, planners will review the collective listreports to derive the situation that warrants the highest attention. From there plannerswill work through the less severe problems until the next planning run.



Figure 18: Collective Access to MRP List and Stock/Requirements List

Both the MRP List and the Stock/Requirements list can be collectively accessed toreview a large number of materials. Users, will typically use broad selection criteria togather large amounts of information. For example, you can display all the lists forwhich you are responsible as MRP controller.

Note: Each list report will have a different method of selecting materials,based on the situation that will presented to the planner, real-time versusstatic data.

First, a material overview is displayed with all of the selected materials. If youhave set the Set up lists in background indicator, the following are available asorientation help: Traffic lights, various search functions in the overview and in theindividual lists, and sort functions for individual customer segments by date ornumber. You can use the search function to specifically select materials according toparticular exception messages.

You can make user-specific definitions for the display of traffic lights according todays supply violations or exception groups. You can also define user-specific sortcriteria.

Note: As of release 4.6, users can not save the sort criteria as user-specificsettings.



From the overview, you can branch to the individual lists and process the materialsthere. If you have used the search function to select several lists for processing, youcan go from one list directly into the next selected list. The selection criteria forcollective access in the MRP lists are not the same as those in the stock/requirementslists. Here, the MRP or processing date and/or the processing indicator for theselection are available. The orientation guides in the material overview correspondwith those in the stock/requirements list. It is also possible search for processingindicators or new exceptions.

In the material list of the collective display of the stock/requirements list (TransactionMD07) or the display of the MRP lists (Transaction MD06), the system sorts amongother things according to the criterion Traffic light. The following sequence isdisplayed:

Ascending order: Red - green - yellow

Descending order: Yellow - green - red

The following sequence is expected: Ascending: Red - yellow - green Descending:Green - Yellow - red

The unexpected sort sequence only occurs in systems which use an EBCDIC characterset, for example, with operating system OS/400. With an ASCII character set, thesystem sorts as expected.

To achieve the required sort sequence with an EBCDIC character set, you canimplement the following modification. Here, the previous icon for the red traffic lightis replaced with a different icon. This is not a correction in the standard system!

Note: See SAP Note : 509928 - MD07/MD06: Sorting according to trafficlight, for more details or updates.

Demonstration: Collective Access to MRP Lists andStock/Requirements Lists

PurposeTo demonstrate collective access to MRP lists and stock/requirements lists

System DataSystem:Client:



User ID:Password:Set up instructions:

Note: The two collective accesses have different selection screens. However,you do not have to explain every individual field.

1. SAP ERP menu path: Logistics Production MRP Evaluations MRPList - Collective Display (MD06)

2. Select your MRP controller 0## at plant 1000.

3. In the initial screen of the collective MRP list , display and explain the variousselection parameters:

MRP controller Product group MRP date Exception groups Processing indicator, only in MRP lists Material data

4. Select the Exception groups Tab, and select all exception groups and select

Continue (Enter)

5. In the Material List, point out the settings and functions of the traffic lightsand the sort and search functions. Select Define Traffic Light and explain tothe students the concept of sorting.

6. Select Sort. Sort the list by traffic light in ascending order.

7. Select several materials and select Selected MRP lists

8. Using the Overview tree or the Next/Previous Materials icons, scroll throughthe list of materials.



43 Exercise 2: Using the MRP ListsExercise Duration: 10 Minutes

Exercise ObjectivesAfter completing this exercise, you will be able to: Use the display filter and the selection rule Use the collective display of Materials Requirement Planning (MRP) lists Use the processing indicator

Business ExampleYour batch planning run has just been completed therefore you need to processthe results and resolve any issues. You process the MRP lists of the materials forwhich you are responsible as MRP controller and which were created this week.You concentrate on situations for which rescheduling proposals exist. After havingclarified the situation in production, you change the scheduled dates of the plannedorders according to the rescheduling proposals that are in the MRP list.

System DataSystem: SAP ERP 4.7 x 2.00Client: 8XXUser ID: SCM240-##Password:

CATT: Z_SCM240Set up instructions:

1. The production Planning overview exercise must be completed before any ofthese exercises can be completed.



Task 1: Navigation Profiles in the Stock Requirements listUpon completion of a planning run, certain exceptions or problems will be raised. Asa planner you need a tool that will allow you to resolve any exceptions that have comeabout since the last planning run. Customize the List reports so that you can haveseveral hot buttons that will allow planners to speed up the exception process.

1. As a planner, you often have more exceptions to deal with, than time tocorrect them. You have been told that the Stock/Requirements list is a veryflexible tool to manage the supply and demand situation. However you needto make it more flexible. Use your material R-F1## at plant 1000 to accessthe Stock/Requirements list

Using your user settings, add the Navigation profile SAPPPMRP00 - MRPController so you can use the List Reports more easily.

2. What changes took place as result of adding the navigation profile?

3. In the S/R list, review your purchased material R-T1##. Did the icons change atall?

4. One of the transactions that you normally run, the stock overview r

SCM 240 Production Planning

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