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MRP is not a subprocess of MPS.

For triggering MRP, your mrp type will be PD or P1, or in series.


For triggering MPS, your mrp type will be M0 or M1 or in series.
MRP : We can use it for all the materials.
For planning run, use tcode
Total planning MD01
Single item multi level planning MD02
Single item single level planning MD03
Stock list MD04
MPS: Finished product & important assemblies are planned separately. These are called MPS
items. System creates requirements for the BOM directly below only one level.
MD41 - MPS run
MD43 - Interactive planning
MDO4 - Result.
Reward if useful

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1.In the MPS run, the materials marked MRP Type as MPS (ie. M0,M1) only will be included . The
planned orders are created at the MPS Material level only.
2.The BOM is exploded for next one level down only.Further level will not be exploded,that means
Dependent requirements are created for the BOM components one level down, further level will not
processed.
This allows MRP controller can ensure that the MPS items are correctly planned before any MRP
run takes place. This allows the planner to check and change the planning result, before any MRP
run takes place for other materials.
For example,consider this business scenario, suppose one wants to do planning for finished Goods
once pre week, but it is necessary to do planning for their components on daily basis.
so for this exmple, you can define Finished materials with MRP type as MPS and all the components
with MRP type as MRP.
MPS run is carried out before the MRP run. So that the Planner can ensure planning result before
the MRP run.
MRP.
MRP Run will plan all BOM level of Materials.
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Usually MPS is done before MRP. MPS is done for the Critical/Final products for which the company
depends for Profit sharing or which will effect the Balance Sheet.
MPS is done while preparing the Annual Budget of the company, which can be reviewed Quarterly.
While preparing the Budget, the Master plan states The quantity of the"Final Critical Finished
products " to be produced based on the Capacity & Annual forecast.
MPS is done only for One-level of BOM
MPS is one of the Type of MRP, but MPS is done before MRP.
MRP's purpose is to make sure that the right material is available at the right time. It can plan even
the dependent items or assemblies, based on the requirement or planning from MPS.
I hope that your doubt is cleared now. Hence reward points.
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Difference between MRP vs MPS


Explain the difference between MRP & MPS. Though both components gives
you the requirement list, what we gain out of MPS run rather than running
MRP. What is the main idea behind this?

The following might help in explaining the difference between MPS and its counter
part MRP.

Master Production Schedule (MPS) :


MPS operates within only one level of the BOM, While MRP can be utilized
throughout all levels of a materials BOM. If a MPS is run on a material, the
necessary orders are planned at that level. Dependent requirements (if any) are placed
on the next BOM level down, and then the process stops.

Main Idea : Master production scheduling (MPS) is a form of MRP that


concentrates planning on the parts or products that have the great influence on
company profits or which dominate the entire production process by taking critical
resources. These items are marked as A parts (MPS items) and are planned with
extra attention. These items are selected for a separate MPS run that takes place
before the MRP run. The MPS run is conducted without a BOM explosion so that the
MRP controller can ensure that the Master schedule items (MSI) are correctly planned
before the detailed MRP run takes place.

The master production schedule is a line on the master schedule grid that reflects the
anticipated build schedule for those items assigned to the master scheduler. The
master scheduler maintains this schedule, and in turn, it becomes a set of planning
numbers that drives material requirements planning. It represents what the company
plans to produce expressed in specific configurations, quantities, and dates. The
master production schedule is not a sales item forecast that represents a statement of
demand. The master production schedule must take into account the forecast, the
production plan, and other important considerations such as backlog, availability of
material, availability of capacity, and management policies and goals. Syn: master
schedule.

Material Requirements Planning (MRP) :


A set of techniques that uses bill of material data, inventory data, and the master
production schedule to calculate requirements for materials. It makes
recommendations to release replenishment orders for material. Further, because it is
time-phased, it makes recommendations to reschedule open orders when due dates
and need dates are not in phase. Time-phased MRP begins with the items listed on the
MPS and determines

(1) the quantity of all components and materials required to fabricate those items and

(2) the date that the components and material are required. Time-phased MRP is
accomplished by exploding the bill of material, adjusting for inventory quantities on
hand or on order, and offsetting the net requirements by the appropriate lead times.

MRP Interview Questions:

What is the need of mrp list if stock requirement list is already there?

The MRP list displays the result of the last planning run. Changes that have occurred
between planning runs are ignored in the MRP list. In contrast to this, the system
displays all changes in stock, receipts and issues, which have currently occurred, in
the stock/requirements list.

Which tcode are used to run MRP?

- MD01 is generally used to run the MRP for all the materials in a plant normally just
before go-live.
- MD02 is used to run MRP for materials which have a BOM i.e multi-level.
- MD03 is used to run MRP for materials which do not have a BOM i.e single level.