APAC Procurement Business Module

Time-Phased Planning Procedure Training Document

Local Group Companies

Submit Date, 15-Jun-04

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 Copyright @ 2003 Holcim Services (Asia) Ltd.
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Document Name Time-Phased Planning Procedure Training Document
Author Ha Tran
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Created 15-Jun-04
Last Edited
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Version Revision Date Revision Description Author Sign-off

V 1.0 15-Jun-04 Ha Tran

Document Approval
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Table of Contents
TIME-PHASED PLANNING ................................................................................................................. 4

BUSINESS PROCESS PROCEDURE................................................................................................. 6

1. CREATION OF PLANNING CALENDAR (PLANNING CYCLE) ................................................................... 6
2. ASSIGNMENT OF PLANNING CALENDAR TO THE MATERIAL IN MASTER RECORDS VIA TRANSACTION
MM02 .............................................................................................................................................. 11
3. RUN MATERIAL REQUIREMENTS PLANNING TO GENERATE THE PROCUREMENT PROPOSAL ................ 16
CHECK STOCK/REQUIREMENTS LIST FOR THE RELATED MATERIAL ....................................................... 16
4. RUNNING OF MATERIAL REQUIREMENTS PLANNING (MRP) ............................................................. 19

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Time-Phased Planning
Time-phased planning is a MRP procedure where the materials are planned in a particular time
interval. If, for example, a vendor always delivers a material on a certain weekday, then it makes
sense to plan this material according to the same cycle, adjusted to the delivery date.

To plan a material with time-phased planning, it is a must that the MRP Type shall be entered in the
material master record for time-phased planning and the planning cycle. The latter is defined in the
form of a planning calendar in the Planning Cycle field.

For time-phased planning materials, the planning file entries NETCH and NETPL in the planning file
are not important, so are not set for MRP changes. Materials that are planned according to a time-
phase are provided with an MRP date in the planning file. This date is reset on the creation of a new
material master data, and then after every planning run. This date corresponds to the day that the
material will next be planned; it is calculated on the basis of the planning cycle specified in the
material master. The material will only be planned on the days that have been specified by the
planning cycle. Noted that to have control of this procedure and plan a material before the intended
MRP date, it is possible to specify a MRP date in the planning run. For example, if the MRP run is
planned for Monday, it is probable to execute the run for Monday on Saturday.

The lot-sizing procedure for a time-phased planning material is the exact lot size, so optimizing lot-
sizing procedures can also be applicable for time-phased planning.

When the planning run is triggered, the system uses the MRP date in the planning file to check
whether the materials are to be planned. The MRP date is calculated from the planning cycle. The
system calculates the requirement. It also determines a time interval according to the following
algorithm:

MRP date + planning cycle + purchasing processing time + planned delivery time + goods receipt
processing time.

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The system compares the forecast requirement in this time interval with the stock and both the fixed
and firm receipts in this time interval. It then calculates the quantity to be ordered. During
calculation, the system assumes that the fixed receipts lie at certain intervals. It does not matter
whether the fixed receipts are available at the start or at the end of the interval. This means that
there may be a temporary shortage.

Noted that Time-phased planning can be combined with a reorder point. The material is not only
planned on the MRP date in the planning file, but also when the reorder point is fallen short of due to
a good issue. If the reorder point has shortage, the material is flagged for planning, as is the
planning cycle. During requirements calculation, the system creates a time interval that spans from
the time of the reorder point shortage to the availability date of the next regular MRP date. For this
time interval, the ordered quantity must suffice. On the next MRP date, the material is again planned
at regular intervals.

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Business Process Procedure

1. Creation of Planning Calendar (Planning Cycle)

1.1. Access transaction by

Via Menu Logistics Æ Materials Management ÆMaterial Requirements Planning

(MRP) Æ MRP Æ Master Data Æ Planning Calendar Æ Create Periods

Via Transaction Code MD25

Key T-Code: MD25

Fig-01

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1.2. On “Create Planning Calendar” screen, fill in the data as below:

Fig-02

Field Name Description R/O/C/D User Action and Values

Plant Key uniquely identifying a R Enter the plant number
plant
Planning Three character number R Enter the planning calendar (S38,
calendar that specifically identifies a for instance)
PPS-planning calendar
Press ‘ENTER’
Legend: R = Required, O = Optional, C = Conditional, D = Display

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1.3. On “Create Planning Calendar” screen, fill in the data as below:

Fig-03

Field Name Description R/O/C/D User Action and Values

Planning A short description of the R Enter the short description
calendar: short planning calendar
description
Minimum period A period that you require R Enter the minimum period
to reprocess the planning
calendar
The indicator instructs the R Select the indicator
system to select the next
working day instead
Click on icon
Legend: R = Required, O = Optional, C = Conditional, D = Display

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1.4. On the pop up screen, select ‘Months (week days)’ alternative option and click on
icon:

Fig-04

1.5. Supposing it is agreed between purchasing and vendor that all shipments will be
delivered to the warehouse on every Monday of each week, on “Create Planning
Calendar” screen, make the setting and press ‘ENTER’:

Fig-05

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1.6. On the pop up screen, maintain the appropriate validity period (normally 12 month
period) and then click on icon:

Fig-06

1.7. On “Create Planning Calendar: Periods” screen, click on icon to save this newly-
defined planning calendar:

Fig-07

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2. Assignment of Planning Calendar to the material in master records via

Transaction MM02

2.1. Access transaction by

Via Menu Logistics Æ Materials Management ÆMaterial Master Æ Material Æ

Change Æ Immediately

Via Transaction Code MM02

Key T-Code: MM02

Fig-08

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2.2. On “Change Material (Initial Screen)” screen, fill in the data as below:

Fig-09

Field Name Description R/O/C/D User Action and Values

Material Alphanumeric key uniquely R Enter the material number
identifying the material

Click on icon
Legend: R = Required, O = Optional, C = Conditional, D = Display

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2.3. On the pop up screen, select appropriate User views (MRP Views) and click on icon:

Fig-10

2.4. On the pop up screen, fill in the data as below:

Fig-11

Field Name Description R/O/C/D User Action and Values

Plant Key uniquely identifying a R Enter the plant
plant
Stor. location Number of the storage R Enter the storage location number
location at which the
material is stored
Press ‘ENTER’ or click on icon.
The next screen will pop up where
the planning calendar can be filled
in the “Planning Cycle” field of the
MRP View 1
Legend: R = Required, O = Optional, C = Conditional, D = Display

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2.5. On “Change Material XXXXXXXXXXXX (TH –Spare Parts1)” screen, fill in the data as
below:

Fig-12

Fig-13

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Field Name Description R/O/C/D

User Action and Values
Click on “Ctrl+S” icon to save this
material master record.
Legend: R = Required, O = Optional, C = Conditional, D = Display

Fig-14

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3. Run Material Requirements Planning to generate the procurement proposal

Check Stock/Requirements List for the related material

3.1. Access transaction by

Via Menu Logistics Æ Materials Management Æ Inventory Management Æ

Environment Æ Stock Æ Stock/Requirements List

Via Transaction Code MD04

Key T-Code: MD04

Key T-Code: MD04

Fig-15

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3.2. On “Stock/Requirements List: Initial Screen” screen, fill in the data as below:

Fig-16

Field Name Description R/O/C/D User Action and Values

Material Alphanumeric key uniquely R Enter the material number
identifying the material
MRP area Number of the MRP area R Enter the MRP area number
for which material
requirements planning
should be carried out
separately
Plant Key uniquely identifying a R Enter the plant
plant
Press ‘ENTER’ to see the details
of the stock/requirements list for
the related material
Legend: R = Required, O = Optional, C = Conditional, D = Display

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Fig-17

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4. Running of Material Requirements Planning (MRP)

4.1. Access transaction by

Via Menu Logistics Æ Materials Management Æ Material Requirements Planning

(MRP) ÆMRP Æ Planning Æ Single-Item, Single-Level

Via Transaction Code MD03

Key T-Code: MD03

Fig-18

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4.2. On “Single-Item, Single-Level” screen, fill in the data as below:

Fig-19

Field Name Description R/O/C/D User Action and Values

Material Alphanumeric key uniquely R Enter the material
identifying the material
MRP area Number of the MRP area R Enter the MRP area number
for which material
requirements planning
should be carried out
separately
Plant Key uniquely identifying a R Enter the plant number
plant
Press ‘Enter’ twice (skipping the
warning message) which leads you
to the result of MRP run for this
related material
Legend: R = Required, O = Optional, C = Conditional, D = Display

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4.3. On “Planning Result: Individual Lines” screen, click on icon to save the result of MRP
run for this material:

Fig-20

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