SCM240

Production Planning (SAP R/3)
mySAP Supply Chain Management

Date Training Center Instructors Education Website

Instructor Handbook
Course Version: 2004 Q3 Course Duration: 5 Day(s) Material Number: 50066127 Owner: Bill Welch (i008505)

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

Copyright
Copyright © 2003 SAP AG. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.

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

Typographic Conventions
American English is the standard used in this handbook. The following typographic conventions are also used. Type Style Example text Description Words or characters that appear on the screen. These include field names, screen titles, pushbuttons as well as menu names, paths, and options. Also used for cross-references to other documentation both internal (in this documentation) and external (in other locations, such as SAPNet). Example text EXAMPLE TEXT Emphasized words or phrases in body text, titles of graphics, and tables Names of elements in the system. These include report names, program names, transaction codes, table names, and individual key words of a programming language, when surrounded by body text, for example SELECT and INCLUDE. Screen output. This includes file and directory names and their paths, messages, names of variables and parameters, and passages of the source text of a program. Exact user entry. These are words and characters that you enter in the system exactly as they appear in the documentation. Variable user entry. Pointed brackets indicate that you replace these words and characters with appropriate entries.

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About This Handbook

SCM240

Icon

Meaning For more information, tips, or background Note or further explanation of previous point Exception or caution Procedures

Indicates that the item is displayed in the instructor’s presentation.

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Contents
Course Overview ......................................................... vii
Course Goals ...........................................................vii Course Objectives ..................................................... ix

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

Unit 2: Evaluation the Planning Results............................ 29
Using the MRP and Stock/Requirements List ..................... 31 Exception Messages in SAP ERP .................................. 68 Days’ Supply........................................................... 78

Unit 3: MRP Basics ...................................................... 89
Concept of MRP....................................................... 91 MRP Types ............................................................ 97 Prerequisites for Running MRP .................................... 112 Methods for Executing a planning run.............................125 Settings in the Planning Run .......................................142

Unit 4: Demand Management in SAP ERP ........................ 169
Overview of Demand Management................................171 Make to Stock versus Make to Order .............................180 Make to Stock Planning Strategies ................................186 Make to Order Planning Strategies ................................ 211 Settings and Customizing...........................................240

Unit 5: Master Production Scheduling ............................. 259
Master Production Scheduling .....................................260

Unit 6: Influencing the Planning Run............................... 279
Net Requirements Calculation .....................................281 Using Buffers in Planning ...........................................291 Controlling order quantities in the planning run ..................324 Multi-Site Planning ...................................................345 Continuous Input/Output ............................................370

Unit 7: Technical Process of the Planning Run .................. 393
Basic Dates Scheduling in the Planning Run ....................395 Lead Time Scheduling in the Planning Run ......................413

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Master Data Selection during the Planning Run .................433

Unit 8: Multiple Sources of Supply in Planning.................. 461
Source Determination Overview ...................................463 Source Determination in Manufacturing ..........................468 Quota Arrangements ................................................481 Source Determination in Procurement ............................502

Unit 9: Life Cycle Planning ........................................... 531
Discontinuation in Production Planning ...........................532

Unit 10: Effects of Inventory in the Planning Run............... 553
Stock Types in Production Planning...............................554 Modeling Quality Inspection in Production planning.............565

Unit 11: Component Availability ..................................... 585
ATP in the Planned order ...........................................587 Configuration of ATP ................................................608

Unit 12: Simulating the Production Plan .......................... 623
Long-term planning requirements .................................624

Index ....................................................................... 659

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

Target Audience
This 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 Prerequisites
Required 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 Details
Unit 1: Overview of Production Planning in SAP ERP SAP ERP Supply Chain Planning Overview Exercise 1: Overview of SAP ERP Supply Chain Planning Unit 2: Evaluation the Planning Results Using the MRP and Stock/Requirements List Exercise 2: Using the MRP Lists Exception Messages in SAP ERP Days’ Supply Unit 3: MRP Basics Concept of MRP MRP Types 45 Minutes 25 Minutes 30 Minutes 10 Minutes 30 Minutes 25 Minutes 20 Minutes 40 Minutes

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Course Overview

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Prerequisites for Running MRP Methods for Executing a planning run Exercise 3: Executing a planning run in SAP ERP Settings in the Planning Run Exercise 4: Settings in the planning run Unit 4: Demand Management in SAP ERP Overview of Demand Management Exercise 5: Managing your Planned Independent Requirements Make to Stock versus Make to Order Make to Stock Planning Strategies Exercise 6: Using Make to Stock planning strategies Make to Order Planning Strategies Exercise 7: Make to Order in SAP ERP Settings and Customizing Unit 5: Master Production Scheduling Master Production Scheduling Exercise 8: Master production scheduling (MPS) and material requirements planning (MRP) Unit 6: Influencing the Planning Run Net Requirements Calculation Using Buffers in Planning Exercise 9: Dynamic Safety Stock Controlling order quantities in the planning run Exercise 10: Controlling Order Quantities in the Planning Run Multi-Site Planning Exercise 11: Multi-Site Planning Continuous Input/Output Exercise 12: Continuous Input/Output in the Planning Run (OPTIONAL) Unit 7: Technical Process of the Planning Run Basic Dates Scheduling in the Planning Run Exercise 13: Basic DateScheduling in the Planning Run Lead Time Scheduling in the Planning Run Exercise 14: Lead Time Scheduling in the Planning Run Master Data Selection during the Planning Run Unit 8: Multiple Sources of Supply in Planning Source Determination Overview Source Determination in Manufacturing Exercise 15: Source Determination in Manufacturing Quota Arrangements

20 Minutes 30 Minutes 30 Minutes 30 Minutes 20 Minutes 30 Minutes Minutes 10 Minutes 45 Minutes 30 Minutes 45 Minutes Minutes 50 Minutes 25 Minutes 25 Minutes 20 Minutes 30 Minutes 25 Minutes 45 Minutes 25 Minutes 30 Minutes 30 Minutes 35 Minutes 25 Minutes 30 Minutes Minutes 40 Minutes 15 Minutes 20 Minutes 30 Minutes 30 Minutes Minutes 30 Minutes

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Course Overview

Exercise 16: Production Versions and Quota Arrangements Source Determination in Procurement Exercise 17: Source Determination in Procurement Unit 9: Life Cycle Planning Discontinuation in Production Planning Exercise 18: Discontinuation in production planning Unit 10: Effects of Inventory in the Planning Run Stock Types in Production Planning Modeling Quality Inspection in Production planning Exercise 19: QM lots in Production Planning Unit 11: Component Availability ATP in the Planned order Exercise 20: Availability Checking in the Planned order Configuration of ATP Unit 12: Simulating the Production Plan Long-term planning requirements Exercise 21: MRP Run

Minutes 30 Minutes Minutes 45 Minutes 25 Minutes 30 Minutes 30 Minutes Minutes 45 Minutes 25 Minutes 30 Minutes 50 Minutes 25 Minutes

Course Goals
This 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 Objectives
After 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

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• • •

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 Information
The information in this course pertains to the following SAP Software Components and releases: Several of the Tasklists for the R-F##, and R-B## at plant 1000 are in German. Use T-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 to generate the following data: Configuration • Change Calendar in Plant 2400 from IT to 01. This allows the R-F1## at 2400 to be included in a product group to introduce the multi-site planning lesson.

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

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

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Course Overview

Material R-F1## R-F2## R-F3## R-F4## R-F1##

Plant 1000 1000 1000 1000 2400

Agg Factor 1 1 1 1 1

Proportion 20 20 20 20 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 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 1
1

Overview of Production Planning in SAP ERP

Unit Overview
This unit will give you an overview of some of the steps that be performed by a supply chain planner using SAP ERP.

Unit Objectives
After 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 Contents
Lesson: SAP ERP Supply Chain Planning Overview .........................2 Demonstration: Sales and Operations Planning ..........................5 Demonstration: Display Requirement in Demand Planning .............7 Demonstration: Materials Requirements Planning...................... 10 Exercise 1: Overview of SAP ERP Supply Chain Planning............ 15

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and manufacture of pumps. The process may be adapted based on certain characteristics of the material during the sales. you need to evaluate and analyze the SAP ERP solution for Supply Chain Planning. The overall goal of production planning is to maintain high customer service levels while minimizing costs. 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. 2 © 2003 SAP AG.Unit 1: Overview of Production Planning in SAP ERP SCM240 Lesson: 2 SAP ERP Supply Chain Planning Overview Lesson Duration: 45 Minutes Lesson Overview In this lesson you will get an overview of supply chain planning as it could be implemented with SAP ERP. Business Example The Precision Pump company manufactures and sells pumps. This will involve understanding the different steps in the process and how they are interrelated. To do this you will identify the different step in the process and compare them to the functionality in the Production Planning (PP) module of SAP ERP. inventory management or production process. SAP ERP Supply Chain Planning Process Any business that sell products or services typically needs to perform some sort of planning process to ensure enough supply is available to support demand. An exercise will be done at the end of the lesson to setup the evaluation unit and demand management unit. Some manufactured goods are produced in-house and the rest are externally procured. Depending upon the types of products or services a company offers. 2004/Q3 . sales. Lesson Objectives After completing this lesson. you need to plan and manage the requirement. As a planning manager. To do so. or the industry in which they may compete. All rights reserved. the process might be altered slightly.

All rights reserved. This demand can be at the finished good. sales plan. depending upon the industry. 2004/Q3 © 2003 SAP AG.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 to start what is often referred to as the Plan to Inventory process. 3 . or demand plan is required to triggered procurement of some nature. semi finished good. S&OP is a strategic process. or raw material level. This demand plan will be the basis or input in the operational process. Sales and Operations Planning (S&OP) The first step in any make to stock process is to derive some type of demand at the plant with a forecast. This process is typical in a make to stock type of environment. where a forecast. This typically entails developing a sales plan from any where between six to eighteen months or longer.

and/or several critical materials for which supply is tight. This will give the operations team a look at the “true”demand. In rough cut capacity planning. Sales Plan Production Plan Rough Cut Capacity Planning The sales plan is typically generated using historical consumption (sales) data then applied to a statistical model in order to generate a “forecast”. it is typically equivalent to that of the sales plan. The first time the production plan is generated. 2004/Q3 . it will be evaluated using rough cut capacity planning. When demand is created at a higher level than which inventory is stored. In addition it is often developed in weekly or monthly buckets of time. 3. planners will identify one or more bottleneck work centers. If the capacity check identifies overloads then planners will typically adjust the production plan 4 © 2003 SAP AG.Unit 1: Overview of Production Planning in SAP ERP SCM240 Figure 2: Sales and Operation Planning (S&OP) The S&OP process is typically made up of a minimum of three steps: 1. During the first pass at creating sales plans. they should be developed without regards to operational constraints. 2. The process it self is rough in nature due to the fact the demand is typically created at aggregate levels than what is typically executed. All rights reserved. Once the initial production plan is generated. This means that the sales plan may be created at the regional. division. a disaggregation process is required. compared to the operations team that will plan at material and daily level. Disaggregation will require proportional factors or percentages to ultimately get a “high-level” plan down to the material level. This assumes that the operations team will attempt to meet demand as it is planned by sales. or product group level.

Enter Product group Pump-## at plant 1000 The product group should contain the following data: Material R-F1## R-F1## R-F2## R-F3## R-F4## 4. Exit Transaction SAP ERP menu path: Logistics → Production → SOP → Planning → For Product Group → Change (MC82) Enter Product Group PUMP-## at plant 1000 and select the Active version. All rights reserved. 5. 5 . 6. SAP ERP menu path: Logistics → Production → SOP → Product Group → Display (MC85) 2. 3. 7. Enter the following demand starting in the third period: Period Month 3 Sales 8. This might typically involve moving production forward of the demand in order to build inventory ahead of the capacity constrained period. 1000 Month 4 800 Month 5 1000 Month 6 900 Month 7 Month 8 1000 1100 Plant 1000 2400 1000 1000 1000 Agg Factor 1 1 1 1 1 Proportion 20 20 20 20 20 Edit → Create productn plan → Synchronous to sales 2004/Q3 © 2003 SAP AG. Demonstration: Sales and Operations Planning Purpose System Data System: SAP ERP Client: 8XX User ID: Password: Set up instructions: 1.SCM240 Lesson: SAP ERP Supply Chain Planning Overview in accordance with the work centers capabilities.

Enter Product Group PUMP-## at plant 1000 and select the Active version.Unit 1: Overview of Production Planning in SAP ERP SCM240 9. 2004/Q3 . 13. 6 © 2003 SAP AG. or PG members as proportion of PG Leave defaults Leave Selected Leave Blank 00 Select Demand Management Demand management is the link between top-level requirements planning (S&OP) and materials planning (MPS and/or MRP).plan for mat. Select Create Sales Plan and select Continue 14. Select Transfer Now Value Pump-## 1000 A00 Prod. Scroll to review the details of the disaggregated sales plan 15. Select 11. Views → Capacity situation → Rough-cut planning → Show Save 10. All rights reserved. SAP ERP menu path: Logistics → Production → SOP → Planning → For Product Group→ Transfer Product Group to Planning (MC75) enter the following: Field Product Group Plant Version Transfer strategy and period From/To Invisible Transfer Rqmts type Version Active 16. SAP ERP menu path: Logistics → Production → SOP → Disaggregation→ Break Down PG Plan (MC76) 12.

Planning strategies are used to determine how these PIRs will be used during the MPS/MRP planning runs. 7 . or together with planned independent requirements. Demand management determines the requirements dates and quantities of the materials we are planning. Demonstration: Display Requirement in Demand Planning Purpose 2004/Q3 © 2003 SAP AG. Sales orders can serve as a sole requirements source.SCM240 Lesson: SAP ERP Supply Chain Planning Overview Figure 3: Demand Management in Production Planning Demand management may contain one or more demand programs or versions that will help drive the production planning process. they can create the “total” demand. for which procurement is then triggered specifically (make-to-order). Input for the demand programs can come 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 can be tied into the Sales and Distribution module to ingrate sales orders with the planning run. All rights reserved.

Unit 1: Overview of Production Planning in SAP ERP SCM240 System Data System: SAP ERP Client: 8XX User ID: Password: Set up instructions: 1.”. each situation could present a problem with available capacity or material availability. 3. Select Product Group and enter Pump-## at plant 1000. Whether the situation be a shift in demand patterns. All rights reserved. SAP ERP menu Path: Logistics → Production → Production Planning → Demand Management → Environment → Stock/Requirements List (MD04) Enter R-F1## at Plant 1000 Long Term Planning Over the course of normal business. 2004/Q3 ... extensions of existing product lines or the creating of new product lines.... SAP ERP menu Path: Logistics → Production → Production Planning → Demand Management → Planned Independent Requirements → Change (MD62) 2. planners will often be presented with “What if. Figure 4: Long Term Planning 8 © 2003 SAP AG. 4.

Long term planning will have the same capabilities and analysis tools that the operational planners will use to constantly evaluate the production plan. All rights reserved. Certain characteristics will decide how materials are going to be handled in SAP ERP Planning runs. These analyses allow planners to identify possible work center overloads or issues obtaining semi-finished or raw materials.SCM240 Lesson: SAP ERP Supply Chain Planning Overview In SAP ERP. Production Planning Procedures When deciding how to use SAP ERP for planing you will need to identify how materials behave over the course of time. Therefore planners can group products that behave similarly together so that they can use common planning techniques. In SAP ERP there are three main techniques that planners can use to drive the production planning process: • • • Master Production Scheduling (MPS) Material Requirements Planning (MRP) Consumption Based Planning 2004/Q3 © 2003 SAP AG. 9 . simulation planning can be obtained through the use of the Long Term Planning (LTP) module. Figure 5: Planning Procedures in SAP ERP Planning procedures will be typically made at the material/plant level. Long term planning is an optional tool that will allow planners to simulate demand changes and run a full Materials Planning and Capacity Planning analysis.

From the system menu at the top: System → Create Session 2. trigger a calculation process to predict future procurement or need. In contrast Consumption Based Planning is based on past usage values and uses a forecast to statistical procedure to determine future requirements. Value Selected NETCH 1 .Unit 1: Overview of Production Planning in SAP ERP SCM240 MPS and MRP will be discussed at great length in this course. Then using future planned demand (PIRs) or actual demand (sales orders). 3. SAP ERP menu path: Logistics → Production → MRP → Planning → Single-Item. Demonstration: Materials Requirements Planning Purpose Describe at an overview level the purpose of MRP System Data System: SAP ERP Client: 8XX User ID: Password: Set up instructions: 1. 2004/Q3 . MPS/MRP take into account current inventory and any frozen production as a starting point. Consumption based planning is characterized by its simplicity and is mainly used for B and C parts with low value.Schedule lines MRP List 1 . Multi-Level Planning (MD02) Use the following parameters for the planning run for product groupPump-## at plant 1000: Field Product Group Processing Key Create Purchase Req.Adapt Planning Data 2 .Purchase requisitions 3 .Lead time scheduling Select SAP ERP menu path: Logistics → Production → MRP → Evaluations → Stock/Requirements List (MD04) 10 © 2003 SAP AG. Delivery Schedules Create MRP List Planning Mode Scheduling Also plan unchanged components 4. All rights reserved.

In recent years many companies have consolidated facilities in order to obtain a higher rate of utilization on resources. or performing an optimization run to improve the schedule by grouping like production runs together to reduce the amount of setup time between jobs.SCM240 Lesson: SAP ERP Supply Chain Planning Overview Capacity planning The economic use of resources is an objective for many areas of a company. This process typically consists of two steps: • • Capacity Evaluation Capacity Leveling With capacity evaluation. This is called an overload. When and overload has been identified the production scheduler begins rescheduling the orders based on additional planning criteria. This may include performing finite scheduling to ensure that the resource is not overloaded. This trend has caused many companies to place more focus on 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). Note: Capacity planning in SAP ERP can occur in: • • • • • SOP After MPS After MRP With Production and Process orders Long Term Planning 2004/Q3 © 2003 SAP AG. All rights reserved. 11 . schedulers are reviewing the results of MPS/MRP and are looking for any time periods in which certain work centers may have more production planned than can be actually executed.

Unit 1: Overview of Production Planning in SAP ERP SCM240 The result of CRP will be a detailed schedule that will be issued to the shop floor. The shop floor will use planned orders to communicate production runs. but the control of the process remains simple. Project systems Repetitive Manufacturing is the simplest form of execution. Shop Floor Control Once a shop floor scheduled has been created and issued. Figure 7: Production Execution The graphic above identifies four types of execution process in SAP ERP: • • • • Repetitive Mfg (REM) Production Orders Process orders. the next step is execution. This schedule will instruct production management of the sequence and priorities of the production. In SAP ERP. With this type of execution process communication between scheduling and execution must remain tight. or endure long production runs while receiving production continuously. and production will be tracked on a material basis not an order basis. companies will have several options to choose from on how they wish to execute and track production. 12 © 2003 SAP AG. All rights reserved. This type of execution is often used in consumer products or the chemical industry. 2004/Q3 . or shop floor control. This is often used for less complicated products that are made several times a week/month.

allows companies to tie several levels of production or services together for better supervision and cost control. Process orders are very similar to production orders in that they act as a cost and data collector for each production run. Process orders are used more often in regulated industries. industries like pharmaceuticals and food require tighter controls and tracability. 13 . Complex products typically require a higher degree of control on the production floor. This would be applicable in construction and aero space and defense to name a few. However.SCM240 Lesson: SAP ERP Supply Chain Planning Overview Production orders are typically used in a more complicated manufacturing process. Project Systems (PS) is often used in Engineer-to-Order industries. for efficiency and profitability. Process orders have a tighter integration with Engineering Change Management (ECM) and can develop electronic batch records of each production run to give details of every step of the production process. 2004/Q3 © 2003 SAP AG. This allows management to review each production run if necessary. All rights reserved. companies can control and track the production process through the uses of order status. With production orders. The production orders also act as a cost and data collector for each production run. Project systems provides tight control and accounting for long extremely complex manufacturing. Using a Work Break down structure and activities tied to production orders.

Unit 1: Overview of Production Planning in SAP ERP SCM240 14 © 2003 SAP AG. 2004/Q3 . All rights reserved.

SAP ERP 8XX Z_SCM240 CAT ZSCM240 Must be run prior to executing this exercise Task 1: Create a Sales and Operations Plan in SAP ERP To better understand the SAP ERP production planning process. Enter a simple sales plan in S&OP and run it through a simplified production planning process to get a basic overview of the functionality. Display your product group and fill in the table below: Continued on next page 2004/Q3 © 2003 SAP AG. we will create a sales plan for one of your pump product groups. 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 Example As a senior planner. You will then release the sales plan to demand management as the demand plan. 1. 15 . System Data System: Client: User ID: Password: CATT: Set up instructions: 1. All rights reserved. you must be able to explain how SAP ERP will be used to model your entire production planning process. which will drive the MRP/MPS process for IDES.SCM240 Lesson: SAP ERP Supply Chain Planning Overview 11 Exercise 1: Overview of SAP ERP Supply Chain Planning Exercise Duration: 25 Minutes Exercise Objectives After completing this exercise. A product group Pump-## has been created for you at plant 1000 to represent the materials that you will be responsible for planning.

Continued on next page 16 © 2003 SAP AG. it can be used to drive the MPS/MRP process. disaggregate and release the plan. 4. All rights reserved. it must be transferred to the operations level were it can be viewed at the material level. Once demand is active in demand management. Task 2: Planned Independent Requirements Once a sales and production plan is complete at the strategic level.Unit 1: Overview of Production Planning in SAP ERP SCM240 Material Number Plant Proportion 2. P1 P2 P3 P4 P5 P6 2. Now that demand has been disaggregated and transferred to the material level. Save your plan 5. Fill out the following table based on the results of your transfer: Mat. PUMP-## at plant 1000 for version A00. Now that you have created a high level or rough production plan for your product group. 2004/Q3 . Plant Ver. at the material level using the product group’s proportions. at work center R-L##. to the locations. Enter the following demand starting in the third period: Period Month 3 Sales 1000 Month 4 700 Month 5 800 Month 6 900 Month 7 Month 8 1000 1100 3. Create a production plan that equals the sales plan View the rough cut capacity to see if your demand is going to cause any potential capacity overloads. 1. at any point within the planning horizon. review the planned independent requirements in demand management. Create /Change a sales plan for your product group PUMP-## at plant 1000 in the active version (A00).

17 .Lead time scheduling and capacity planning Select Continued on next page 2004/Q3 © 2003 SAP AG. Now that you have transferred demand from the strategic high-level plan. Use the following parameters for the planning run: Field Processing key Create purchase req. These requirements are causing negative inventory. All rights reserved.Purchase Requisitions 3 . After reviewing the stock/requirements list. In a second session. Task 3: Material Requirements Planning After releasing the production plan from the S&OP process. you have populated demand management with planned independent requirements. P1 P2 P3 P4 P5 P6 3. Plant Ver.Adapt Planning Data 2 . down to a tactical material level. multi-level MRP run for R-F1## at plant 1000. you will create a procurement plan for product R-F1## . run a single-item. use the stock requirements list to review what the transfer has actually accomplished for your material R-F1## at plant 1000: What is your current planning situation? 4. Delivery schedules Create MRP list Planning mode Scheduling Also plan unchanged components Value NETCH 1 . Using material requirements planning.Schedule lines MRP List 1 . it is obvious that demand is exceeding supply. 1.SCM240 Lesson: SAP ERP Supply Chain Planning Overview Mat.

to determine if the planning situation has changed. What has changed as a result of the MRP run? 3. review the stock requirements list. 2004/Q3 . for R-F1## at plant 1000. All rights reserved. Now that a MRP run has been executed. 18 © 2003 SAP AG.Unit 1: Overview of Production Planning in SAP ERP SCM240 2.

Continued on next page 2004/Q3 © 2003 SAP AG. Display your product group and fill in the table below: Material Number R-F1## R-F1## R-F2## R-F3## R-F4## a) b) 2. which will drive the MRP/MPS process for IDES. 19 . All rights reserved.SCM240 Lesson: SAP ERP Supply Chain Planning Overview Solution 1: Overview of SAP ERP Supply Chain Planning Task 1: Create a Sales and Operations Plan in SAP ERP To better understand the SAP ERP production planning process. Enter the demand as indicated in the table above. Enter the following demand starting in the third period: Period Month 3 Sales a) b) c) 1000 Month 4 700 Month 5 800 Month 6 900 Month 7 Month 8 1000 1100 SAP ERP menu path: Logistics → Production → SOP → Planning → For Product Group → Change (MC82) Enter Product Group PUMP-## at plant 1000 and select Active version. 1. we will create a sales plan for one of your pump product groups. You will then release the sales plan to demand management as the demand plan. A product group Pump-## has been created for you at plant 1000 to represent the materials that you will be responsible for planning. Plant 1000 2400 1000 1000 1000 Proportion 20 20 20 20 20 SAP ERP menu path: Logistics → Production → SOP → Product Group → Display (MC85) Enter Product group Pump-## at plant 1000 Create /Change a sales plan for your product group PUMP-## at plant 1000 in the active version (A00).

Save your plan a) Select Save Continued on next page 20 © 2003 SAP AG. 2004/Q3 . a) Views → Capacity situation → Rough-cut planning → Show Note: Any production overloads would manually be addressed by decreasing or increasing production to keep the capacity load under 100%. 5. Create a production plan that equals the sales plan a) Edit → Create productn plan → Synchronous to sales View the rough cut capacity to see if your demand is going to cause any potential capacity overloads. at any point within the planning horizon. at work center R-L##.Unit 1: Overview of Production Planning in SAP ERP SCM240 3. 4. All rights reserved.

21 . R-F1## R-F1## Plant 1000 2400 Ver. it can be used to drive the MPS/MRP process. at the material level using the product group’s proportions. All rights reserved. or PG members as proportion of PG Leave defaults Leave Selected Leave Blank 00 Select Select Transfer Now.plan for mat. it must be transferred to the operations level were it can be viewed at the material level. review the planned independent requirements in demand management. a) SAP ERP menu path: Logistics → Production → SOP → Planning For Product Group→ Transfer Product Group to Planning (MC75) enter the following: Field Product group Plant Version Transfer strategy and period From/To Invisible Transfer Rqmts type Version Active b) 2. Once demand is active in demand management. Now that you have created a high level or rough production plan for your product group. Value Pump-## 1000 A00 Prod. to transfer the product group’s production plan to the material level in Demand Management. to the locations. Fill out the following table based on the results of your transfer: Mat. Now that demand has been disaggregated and transferred to the material level. disaggregate and release the plan. 1. 00 00 P1 200 200 P2 140 140 P3 160 160 P4 180 180 P5 200 200 P6 220 220 Continued on next page 2004/Q3 © 2003 SAP AG. PUMP-## at plant 1000 for version A00.SCM240 Lesson: SAP ERP Supply Chain Planning Overview Task 2: Planned Independent Requirements Once a sales and production plan is complete at the strategic level.

you have populated demand management with planned independent requirements. down to a tactical material level. Exit the Planning Table. b) c) d) 3. Select Enter. These requirements are causing negative inventory. from the production plan. are causing a negative available balance. All rights reserved. The independent requirements. R-F2## R-F3## R-F4## a) Plant 1000 1000 1000 Ver. Now that you have transferred demand from the strategic high-level plan. Use the following parameters for the planning run: Field Processing key Create purchase req. Select the Table tab to review the period details of all materials. After reviewing the stock/requirements list. 2004/Q3 . multi-level MRP run for R-F1## at plant 1000. 1. Value NETCH 1 . run a single-item. In a second session.Purchase Requisitions Continued on next page 22 © 2003 SAP AG. use the stock requirements list to review what the transfer has actually accomplished for your material R-F1## at plant 1000: a) SAP ERP menu Path: Logistics → Production → Production Planning → Demand Management → Environment → Stock/Requirements List (MD04) 4. Using material requirements planning. will drive production planning at the material level. you will create a procurement plan for product R-F1## . These requirements which are acting like a demand plan. 00 00 00 P1 200 200 200 P2 140 140 140 P3 160 160 160 P4 180 180 180 P5 200 200 200 P6 220 220 220 SAP ERP menu Path: Logistics → Production → Production Planning → Demand Management → Planned Independent Requirements → Change (MD62) Select Product Group and enter Pump-## at plant 1000. it is obvious that demand is exceeding supply. Task 3: Material Requirements Planning After releasing the production plan from the S&OP process.Unit 1: Overview of Production Planning in SAP ERP SCM240 Mat. What is your current planning situation? Answer: Current inventory balance is Zero (0).

during some teaches the first planned order may be late. review the stock requirements list.Lead time scheduling and capacity planning Select From the system menu at the top: System → Create Session SAP ERP menu path: Logistics → Production → MRP → Planning → Single-Item. for R-F1## at plant 1000. Value 3 . Back twice to return to the main menu Now that a MRP run has been executed. 2004/Q3 © 2003 SAP AG. to determine if the planning situation has changed. This results in a zero inventory balance after each requirement. a planned order has been created to cover each planned independent requirement. a) SAP ERP menu path: Logistics → Production → MRP → Evaluations → Stock/Requirements List (MD04) 3. Multi-Level Planning (MD02) Select Select Enter twice to execute the run.Adapt Planning Data 2 . All rights reserved. What has changed as a result of the MRP run? Answer: As a result of MRP.Schedule lines MRP List 1 .SCM240 Lesson: SAP ERP Supply Chain Planning Overview Field Delivery schedules Create MRP list Planning mode Scheduling Also plan unchanged components a) b) c) d) 2. 23 . NOTE: due to different working days in each month.

Unit 1: Overview of Production Planning in SAP ERP SCM240 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 24 © 2003 SAP AG. All rights reserved. 2004/Q3 .

SCM240 Unit Summary Unit 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 2004/Q3 © 2003 SAP AG. 25 . All rights reserved.

All rights reserved.Unit Summary SCM240 26 © 2003 SAP AG. 2004/Q3 .

27 .SCM240 Test Your Knowledge 21 Test Your Knowledge 1. Define Sales and Operations Planning? 2. □ □ 3. All rights reserved. □ □ □ □ □ 4. Determine whether this statement is true or false. True False How may demand be provided to the SOP tool? Choose the correct answer(s). A B C D E Statistical forecast Manually entered Copy from COPA Copy from Sales info System All of the above Why is shop floor control important in the planning process? 2004/Q3 © 2003 SAP AG. Standard SOP is the only functionality provided to support this process.

4. 3. Answer: False Flexible planning may also be used. How may demand be provided to the SOP tool? Answer: E All of the above are valid. 2004/Q3 . All rights reserved. Standard SOP is the only functionality provided to support this process. 28 © 2003 SAP AG. Why is shop floor control important in the planning process? Answer: It provides the latest information to the planning tools as to what has actually occured.Test Your Knowledge SCM240 22 Answers 1. 2. Define Sales and Operations Planning? Answer: SOP is typically a monthy process where representatives from various areas of the company meet and review the supply and demand situation from a very high level (typically at the product group level).

....... 43 Demonstration: Navigation Profiles .... 37 Demonstration: Navigate the Overview Tree ..... All rights reserved.... 42 Demonstration: Pegged Requirements............................................................... 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 day’s supply and receipt day’s supply Unit Contents Lesson: Using the MRP and Stock/Requirements List ....................... 31 Demonstration: Navigating the Stock Requirements list ... 29 ........................................Unit 2 23 Evaluation the Planning Results Unit Overview This unit will introduce you to the tools that would be used on a day to day basis during the planning process... 35 Procedure: Navigating the Stock Requirements list ............... you will be able to: • • • • • Demonstrate how to use the MRP and Stock Requirements List for use in day to day planning............. 36 Demonstration: Changing MRP Elements in the Stock Requirements list..... 49 2004/Q3 © 2003 SAP AG............................... 40 Demonstration: Order Report ........... Unit Objectives After completing this unit.................. You will customize some of the views that speed up tasks in later units...............

......Unit 2: Evaluation the Planning Results SCM240 Demonstration: Collective Access to MRP Lists and Stock/Requirements Lists ... 2004/Q3 ........... 52 Exercise 2: Using the MRP Lists ... 75 Lesson: Days’ Supply ................................. 80 30 © 2003 SAP AG.................................................... 55 Lesson: Exception Messages in SAP ERP.......................... 73 Procedure: Using Exception Messages .............................. 78 Demonstration: Days’ Supply and Receipt Days’ Supply .................................................................. All rights reserved......................................... 68 Demonstration: Use of Exception messages ......... 74 Demonstration: Exception Message Configuration ......

you will learn how to collectively access the both result lists. Business Example As a production planner. Alongside the exception messages.SCM240 Lesson: Using the MRP and Stock/Requirements List Lesson: 24 Using the MRP and Stock/Requirements List Lesson Duration: 30 Minutes Lesson Overview In this lesson. Describe the differences between the MRP List and Stock Requirements (S/R) list Processing the MRP results usually follows a total planning run. which have led to the creation of exception messages. you need to ensure that the production plan generated by the SAP ERP system. you will be able to: • • Demonstrate how to use the MRP and Stock Requirements List for use in day to day planning. firming. and give detailed information as to the supply and demand situation. meets the demand requirements. Lesson Objectives After completing this lesson. The typical tools for this manual processing are the stock/requirements list and the MRP list with their respective collective accesses. days’ supply and receipt days’ supply. 2004/Q3 © 2003 SAP AG. Explore the MRP List and Stock/Requirements (S/R) List as an option for managing the production plan. All rights reserved. The aim is to manually process problem situations. In order to do this you need a tool that will help you manage problems with the production plan. In addition. these lists offer a range of functions for processing the planning results: Rescheduling data. evaluation functions such as order report or pegged requirements. 31 . you will learn about the usage of Material requirements planning (MRP) List and Stock/Requirements List and it’s functions.

2004/Q3 . a real evaluation tool is available in the Stock/Requirements (S/R) list. a production and procurement schedule will have 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 identify if any problems have occurred. Figure 8: MRP List and Stock/Requirements (S/R) List Layout 32 © 2003 SAP AG. All rights reserved. so the list is static. MRP lists are stored in the system until they are either deleted manually or replaced by new lists from a subsequent planning run. The structure of the lists are very similar in nature. Static or Real time. The MRP list always displays the supply and demand situation at the time of the last planning run and it also provides a work basis for the MRP controller. Changes that are made after the planning date are not taken into consideration. Each list will have it’s own unique attribute to display the relevant information for which it was designed. The MRP list will be created at the Material/MRP Area/Plant level. While the MRP list is a result of the planning run.Unit 2: Evaluation the Planning Results SCM240 Planning Run List Evaluations As a result of a planning run in SAP ERP. Prior to the initiating the planning run a planner can decide if they want an MRP list to be generated to display the results of the planning run.

SCM240 Lesson: Using the MRP and Stock/Requirements List The MRP list and S/R lists are made up of several different components to which the user 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 well as the unit of measure. The header details are dynamic. and can be turned on or off. The MRP Elements are listed individually by day. by summarizing the same MRP elements for the same day/week/month or user defined period. all materials will appear in the tree. The basic structure of both lists is the same: 2004/Q3 © 2003 SAP AG. users can get a list of all the MRP elements used by SAP ERP. The overview tree is used for toggling between various material numbers selected by the user. the list will contain all the members of the product group. If users access the the collective list and select several materials. All rights reserved. The period totals display will aggregate the MRP elements to a larger bucket of time. By selecting any MRP element and pressing the F1 key. The MRP Elements section will give the details about the supply and demand situation. 33 . MRP Elements are created on the basis of the supporting master data. If a user access’s the MRP list using a product group. Such objects include planned orders. These details refer to information about the material master or planning statistics that were a result of the last planning run. Not all MRP Elements will be applicable for a material. An MRP Element is a term for all objects displayed as items in the MRP list or in the S/R list. purchase orders. and sales orders. reservations.

All rights reserved. Depending upon which planning strategy(s) are being used the list reports might be broken down into several segments. For this. 34 © 2003 SAP AG. each order and its associated inventory will be planned separately from any other inventory or order. For example in a make-to-order scenario. If a receipt will be late then it will show up after the requirement. In particular. and typically. they contain the number of exception messages that have occurred during the planning of a material (MRP List Only). This data is grouped together according to topic in individual screens. The MRP type controls the screens that are displayed in the requirements planning evaluations. You define the display of the header details for the MRP evaluations in the Customizing IMG activity “Define screen sequence for header details”. Variable Headers The header details of the List reports contain additional data for the planning run. receipts. Using the IMG menu path Production → MRP → Evaluation → Define Screen Sequence for Header details . 2004/Q3 . exception messages will appear describing any issues with the plan. followed by the requirement. Therefore. the system will display the receipt first. and issues are displayed and planned within the appropriate segment. This means that related MRP elements are also displayed together. The MRP calculation takes place within the individual segments. companies can create there own sequence of headers. you can display different master data for the evaluation of consumption-based materials than for planning-based materials. The header details show an overview of master data and transaction data for each material. Within each segment.Unit 2: Evaluation the Planning Results SCM240 Figure 9: Planning Segments The MRP and S/R list is divided into various planning segments. the screen sequences have a key that is assigned to the MRP type. The individual stocks.

SCM240 Lesson: Using the MRP and Stock/Requirements List Demonstration: Navigating the Stock Requirements list Purpose System Data System: Client: User ID: Password: Set up instructions: must be complete. 35 . Select Switch to individual lines. All rights reserved. Switch To show the MRP elements in an Aggregated time bucket select to period totals and select the tab with the correct period of aggregation. 1. SAP ERP menu path: Logistics → Production → MRP → Evaluations → Stock/ Requirements List Enter Material R-F1## at plant 1000 and press ENTER 2004/Q3 © 2003 SAP AG. 5. 4. 2. 3. Caution: To show the Material header information select Expand Header details. Exercise from Lesson Production Planning overview CATT Z_SCM240 should be run to generate master data.

3. Switch To show the MRP elements in an Aggregated time bucket select to period totalsand select the tab with the correct period of aggregation. Details of Each MRP element can be viewed in more detail. 2004/Q3 . 4. In addition to displaying information. This is a working script of notes regarding the material. SAP ERP menu path: Logistics → Production → MRP → Evaluations → Stock/ Requirements List Enter Material R-F1## at plant 1000 and press ENTER To show the Material header information select Expand Header details. Select Switch to individual lines. All rights reserved. In addition it will give the user additional options to possibly Change 36 © 2003 SAP AG.Unit 2: Evaluation the Planning Results SCM240 28 Navigating the Stock Requirements list 1. users can create/change the material memo. In the List reports. 2. the MRP list is interactive and can carry out several functions. 5. the material memo will be marked with whom ever has updated the memo last and the date it was last changed. Functions of the MRP list Once in the MRP list a planner can use the data displayed to make intelligent business decisions. Figure 10: Functions of the MRP List Once inside the List reports. users can view more summary information about the specific MRP element. By selecting Element.

or convert to a purchase requisition. Change element Details of Details of Select the first planned independent requirement and select elementthen select Change element In the material field. By Material Memo icon. All rights reserved.SCM240 Lesson: Using the MRP and Stock/Requirements List or Display the element. SAP ERP menu path: Logistics → Production → MRP → Evaluations → Stock/ Requirements List 2. for the first dependent demand and display the Select parent planned order number 2004/Q3 © 2003 SAP AG. Enter Material R-F1## at plant 1000 and press ENTER Select the first Planned order and Double click or select element then select 4. 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 Stock Requirements list Purpose System Data System: Client: User ID: Password: Set up instructions: 1. This may be required to adhere to company wide accountability standards. which will selecting the be cumulated over time. Over time planners will make changes to the plan that should be documented. partially converting to a production order. Depending upon which element is chosen other options are available such as converting a planned order to a production order. the icon will show who and when last changed the long text on the material memo. users can leave long text notes. 6. convert to a process order. replace R-F1## with R-B1## and press ENTER Details of element. 3. After saving the material memo. 37 . 5.

Displaying the material tree is optional. 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. 9. they may have access to a tree structure on the left side of the screen that will make navigating between materials easier. In the material field. replace R-B1## with R-T1## and press ENTER Select Details of element. each user can set the overview tree to appear automatically. for the first purchase Requisition. the overview tree can be accessed by selecting Show Overview tree button. 38 © 2003 SAP AG. To set the overview tree to appear automatically.Unit 2: Evaluation the Planning Results SCM240 7. 2004/Q3 . 8. Upon entering either list report. users must select Save Settings. Demonstrate changing the material master. From S/R List Menu Path: Environment → Change Material List Report Display Structure Throughout the course of a day planners will have to review the supply and demand situation as it relates to several materials. All rights reserved. and in the Display tab select Overview Tree Displayed option. Depending upon how the user enters the list reports. Caution: This setting will be relevant for both the MRP List and the S/R list.

such as according to the processing indicator. 2004/Q3 © 2003 SAP AG.SCM240 Lesson: Using the MRP and Stock/Requirements List Figure 11: Overview Tree The worklist tree displays all materials in the current session. When accessing the list through the collective process. the new product will be added to the worklist. You can set in which order the fields are to be displayed. You can search for specific materials according to exception messages. You can display the stock/requirements list or MRP list for a material by double-clicking on the material in the tree. The work list can be customized by each user. Otherwise as you type over the material number. User-specific definitions for the traffic lights are also possible. all materials that were selected are displayed. User-specific sortings and groupings. 39 . All rights reserved. are possible.

the multi level order will be displayed. The product group tree will only appear if users have accessed the collective lists and used Product group as the selection criteria. and selecting Order Tree. 2004/Q3 . it is possible to now view order network exceptions. by selecting a material the correct stock/requirements list or MRP list is displayed in the MRP Element area. Note: As of SAP ERP release 4. All rights reserved. and the element involved in the order report is highlighted. By selecting the planned order in the MRP Elements section. In addition to the order details. These messages are generated and placed at the top assembly if there is an exception at a lower level.Unit 2: Evaluation the Planning Results SCM240 Figure 12: Order Tree The order tree will display the individual component requirements for the selected order or requirement are displayed on several levels. you can quickly get an overview of the stock situations at all levels of the order structure. By selecting the line dividing the tree from the MRP elements a user can re-size the window and see more order information.7. By selecting a particular material. exception messages and information will appear to the right of the material number. When you navigate in the order tree. the MRP Elements section will display the supply and demand situation. This way. Demonstration: Navigate the Overview Tree Purpose 40 © 2003 SAP AG.

Show students the MRP exceptions. SAP ERP menu path: Logistics → Production → MRP → Evaluations → Stock/Requirements List 2. 3. 41 . Enter Material R-F1## at plant 1000 and press ENTER Display the order tree. Show the worklist tree by selecting Work list. by selecting the first planned order and then select Set Up Order Structure. Order Report Figure 13: Order Report 2004/Q3 © 2003 SAP AG. in the tree structure. 6. All rights reserved. 5. Move your cursor just to the right of the “alert” icons to get the quick info on the exceptions. to show the MRP elements changing and the element being highlighted in blue. 4. Double click on several of the components.SCM240 Lesson: Using the MRP and Stock/Requirements List System Data System: Client: User ID: Password: Set up instructions: 1.

This enables the MRP controller to foresee possible future problems on subordinate BOM levels: • • • • Red: There are exception situations on subordinate BOM levels. production order including collective and process order. All rights reserved. Enter Material R-F1## at plant 1000 and press ENTER Display the order tree for the first planned order. 2004/Q3 . You access the transaction directly from the stock/requirements list or the MRP list. 3. The MRP controller checks how the production of a certain sales order is progressing or if there are missing parts or scheduling problems on a certain BOM level or for certain components. No color coding: You cannot explode the receipt element any further. The system determines the receipt elements that are planned for each MRP element. 5. and select 4.Unit 2: Evaluation the Planning Results SCM240 The evaluation “Order report” enables you to gain an overview of the status of all BOM levels from the list of MRP elements: Sales order. 42 © 2003 SAP AG. SAP ERP menu path: Logistics → Production → MRP → Evaluations → Stock/Requirements List 2. Select the first planned order. In doing so. yet no exception situations exist. Demonstration: Order Report Purpose To demonstrate Order Report/Order Tree/Pegged Requirements System Data System: Client: User ID: Password: Set up instructions: 1. and planned order. The receipt elements are color coded. Order Report. Green: Receipt elements have been created on subordinate BOM levels. Open all Drill down to show the details of the report by selecting lines. you can recognize problems in the production and procurement of assemblies and components at an early stage. White: The requirement is covered by warehouse stock on the subordinate BOM levels. Double Click on the planned order to see the dependent requirements.

In SAP ERP 4. You can call up this function from the details display of the requirements element. Pegged Requirements Report Figure 14: Pegged Requirements You can use the evaluation “Pegged requirements” ( you can access this directly from the stock/requirements list and MRP list) to trace from any BOM level on a multilevel basis which requirements have caused an order proposal and which independent requirements (particularly sales orders) are affected by the change in date or quantity of an order proposal on a lower level. stock transfer requirements. The function is available for the requirements. 43 . you can navigate from the requirements element directly to the pegged requirement on the level above in the stock/requirements or MRP list.SCM240 Lesson: Using the MRP and Stock/Requirements List 6. Demonstration: Pegged Requirements Purpose To demonstrate Order Report/Order Tree/Pegged Requirements 2004/Q3 © 2003 SAP AG. Call the list of the component R-T1##. and stock transfer reservations. order reservations. The system displays the stock/requirements or MRP list of the superordinate level and automatically positions the cursor on the correct line of the pegged requirement. Call the pegged requirements for the first requirement in the list and reproduce the path to the order. such as dependent requirements. This makes it much easier to find pegged requirements on different MRP levels. All rights reserved.

Select Order Route to see the trail of requirements as it blew through the bill of material. for maintaining favorites. SAP ERP menu path: Logistics → Production → MRP → Evaluations → Stock/Requirements List 2. 3. 5.Unit 2: Evaluation the Planning Results SCM240 System Data System: Client: User ID: Password: Set up instructions: 1. select Back. and select Pegged Requirements.6. users can now filter and select which MRP elements can be viewed and used in the available quantity calculation. then select Graphic. However. Select the first purchase requisition or planned order. 4. This report shows the origin of the requirement at the top of the order structure. To see and order graphic chart. 6. All rights reserved. Customizing: Production → Material Requirements Planning → Evaluation → Define Navigation Profiles Over time Planners will find the stock requirements list invaluable due to the amount of information that it contains as it relates to supply and demand. Advanced Functions of MRP and Stock/Requirements List Navigation profile The navigation profile function is enhanced by the possibility of defining your own favorites. planners are often put into a situation where others in the business will asked for data related to certain MRP elements. 2004/Q3 . Enter Material R-T1## at plant 1000 and press ENTER Display the pegged requirements report for the first purchase req/planned order. See notes : Changeability of Customizing Tables in the Production System and Authorization for Maintenance of Own Favorites. As of SAP ERP release 4. 44 © 2003 SAP AG.

and that are procurement proposals (planned order. All rights reserved. You define display filters in the Customizing IMG: Production → MRP → Evaluations → Filter → Define Display Filter . This will allow users to choose the selection filter that fits the particular requirements. and display filters have no influence on the MRP elements that are used in the calculation of the available quantity. schedule lines). purchase requisitions. Selection rules apply to the stock/requirements list only. You define which MRP elements are displayed and which of these elements are used in the calculation of the available quantity. To turn the filter off users can select a “blank” filter with no limitations or select Filter off to remove the filter. whether the MRP elements selected should be further limited using certain additional selections (for example. In the configuration of the display filter users can choose: • • which MRP elements are displayed of the MRP elements that you select. whether only the firmed elements 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.SCM240 Lesson: Using the MRP and Stock/Requirements List Figure 15: Display Filter and Selection Rule Display filters are used in the Stock/Requirements list and in the MRP list. storage location) You either define these additional selections directly or allow the user to define them in the respective transaction • • • The filters can be accessed in either of the lists by selecting Filter On. Selection rules enable the analysis in the stock/requirements 2004/Q3 © 2003 SAP AG. This is a display function. customer. vendor. 45 .

In detail. or in the user-specific settings. Due to its important content planners will use the List reports several times a day. You define these in the Customizing: IMG Production → MRP → Evaluations → Filter → Define Selection Rules. Due to it’s frequency of use.Unit 2: Evaluation the Planning Results SCM240 list of various planning situations that are different with regard to the MRP elements taken into account. You determine the selection horizon either directly or allow the user to make this setting in the respective transaction – • • • • You define whether selection rules and display filters are to be used when accessing the list. as of SAP ERP release 4. if necessary. you define • which MRP elements are selected to set up the respective evaluation list and/or to calculate the quantity available and the ranges of coverage do not consider: the element is not displayed and is not used to calculate the 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. All rights reserved. 46 © 2003 SAP AG. or by choosing the “Filter on” icon in the list. Through users settings. planners will be able to add their own icon buttons to jump to the most well used transactions for certain types of materials. This is done by choosing the indicator “With filter” in the initial screen. the list reports can be customized by each user. also calculated which period (selection horizon) should be represented.6. Selection rules have no influence on the requirements calculation. 2004/Q3 .

and the user is assigned to a profile in the user-specific settings on the General Settings tab page. A navigation profile is defined in Customizing Production → MRP → Evaluations → Define navigation profiles. the display in the list is limited to five general transaction calls and two transaction calls per MRP element. choose the * button in the details for the MRP element. You can also connect the offering of a transaction to certain parameters from the material master. The system always displays the first five or first two transaction calls that are relevant for the context. However. MRP group. material type. you can determine any number of transaction calls. In addition. or they refer to a particular MRP element (planned order. For each transaction call. you can activate two favorites per MRP element as transaction calls. To do this.SCM240 Lesson: Using the MRP and Stock/Requirements List Figure 16: Navigation profile Each user can be assigned a navigation profile. A navigation profile contains transaction calls for transactions that can be called directly from the stock/requirements list or the MRP list. such as procurement type. dependent requirement). and MRP type. choose Environment .Own favorites. you can preassign three parameters for the initial screen of the transaction. which means actions at the material level. The transactions are either general. All rights reserved. 2004/Q3 © 2003 SAP AG. 47 . In a navigation profile. For this. A function similar to the navigation profiles is available with the selection of personal favorites where you can also activate up to five general transaction calls.

Here. All rights reserved. users may not have the corresponding authorization. choose ’Environment -> Authorization -> Authorization groups’. 6.MD04: Authorization group for maintenance of own favorites. in general. a separate authorization group should be created for this and assigned to these users. Assign this authorization group to the corresponding user profiles. With the ABAP Dictionary (Transaction SE11). See note 501318 . Authorization group ’MCMD’ is assigned to the affected views. 3. 48 © 2003 SAP AG. 2. However. Create a new authorization group for authorization object ’S_TABU_DIS’ using ’New entries’. users who have no general authorization for the table maintenance in MRP do not have this authorization group.Unit 2: Evaluation the Planning Results SCM240 Caution: During the user-specific maintenance of own favorites in the stock/requirements list and MRP list. 5. assigned to the tables and views of the MRP Customizing. for more information. This authorization group refers to authorization object ’S_TABU_DIS’ and is. 2004/Q3 . In order to create the authorization group for the affected views proceed as follows: 1. If it is required that also users who are not allowed to maintain the other tables should be able to maintain entries for their own favorites. also users who have generally no table maintenance authorization should be able to maintain these tables in the requirements planning. 4. call up the table maintenance generator for views V_U444B and V_U444C (Utilities -> Table maintenance generator). Save your change. Return to the previous screen and here replace entry ’MCMD’ by your new authorization group in field ’Authorization group’. Therefore.

you can show or hide the overview tree. You define the screen sequence of the header details in Customizing for the MRP type. you can change the various settings at any time.6.Own Favorites. For example. 49 . stock and requirements situations on the individual MRP levels are buffered in the memory when the order report or tree is being compiled. A user exit for showing user-specific categories is available. Your personal settings. Demonstration: Navigation Profiles Purpose To demonstrate Navigation Profiles in the List reports 2004/Q3 © 2003 SAP AG. This ensures that subsequent calls of the order report and tree can be carried out much faster. you can set the indicator Buffered Reading of Order Report/Tree in the general settings of the stock/requirements list. As of SAP ERP 4. determine the screen that appears when accessing the lists. If you set the indicator.SCM240 Lesson: Using the MRP and Stock/Requirements List Figure 17: Settings that Can Be Made Individually You can use your personal settings to specify a number of default display options for the stock/requirements list and the MRP list. All rights reserved. From the lists. as well as your “Own favorites” in Environment .

it is impossible and illogical to review the results of every material. every planner will have the same question. 5. 50 © 2003 SAP AG. Discuss the changes in the application toolbar. 7. Select Save and enter through any informational messages. From there planners will work through the less severe problems until the next planning run. “Where do I start”? Due to the amount of materials most planners are responsible for. 4. Scroll through the tabs and select the General settings Tab. Therefore. Enter Material R-T1## at plant 1000 and press ENTER Select Save Settings . Add the Stock Overview Report to your own favorites. 6. after the conclusion of every “ batch”planning run. In the Navigation profile field select SAPPPMRP00 . planners will review the collective list reports to derive the situation that warrants the highest attention. 8.MRP Controller. All rights reserved. Collective Access to MRP and Stock/Requirements List After a planing run is completed. 3. 2004/Q3 .Unit 2: Evaluation the Planning Results SCM240 System Data System: Client: User ID: Password: Set up instructions: 1. SAP ERP menu path: Logistics → Production → MRP → Evaluations → Stock/Requirements List 2.

You can also define user-specific sort criteria. The selection criteria for collective access in the MRP lists are not the same as those in the stock/requirements lists. a material overview is displayed with all of the selected materials. You can make user-specific definitions for the display of traffic lights according to day’s supply violations or exception groups. First. Note: Each list report will have a different method of selecting materials. 51 . the MRP or processing date and/or the processing 2004/Q3 © 2003 SAP AG. and sort functions for individual customer segments by date or number.6. If you have used the search function to select several lists for processing. You can use the search function to specifically select materials according to particular exception messages. the following are available as orientation help: Traffic lights. real-time versus static data. Note: As of release 4. All rights reserved. based on the situation that will presented to the planner. For example. Here. Users. If you have set the “Set up lists in background” indicator. From the overview. various search functions in the overview and in the individual lists. you can display all the lists for which you are responsible as MRP controller. you can go from one list directly into the next selected list. will typically use broad selection criteria to gather large amounts of information.SCM240 Lesson: Using the MRP and Stock/Requirements List Figure 18: Collective Access to MRP List and Stock/Requirements List Both the MRP List and the Stock/Requirements list can be collectively accessed to review a large number of materials. users can not save the sort criteria as “user-specific” settings. you can branch to the individual lists and process the materials there.

This is not a correction in the standard system! Note: See SAP Note : 509928 . It is also possible search for processing indicators or new exceptions. the system sorts among other things according to the criterion ’Traffic light’. 2004/Q3 . To achieve the required sort sequence with an EBCDIC character set.red The following sequence is expected: Ascending: Red . The orientation guides in the material overview correspond with those in the stock/requirements list.green . Demonstration: Collective Access to MRP Lists and Stock/Requirements Lists Purpose To demonstrate collective access to MRP lists and stock/requirements lists System Data System: Client: User ID: Password: Set up instructions: Note: The two collective accesses have different selection screens. The following sequence is displayed: Ascending order: Red . Here. with operating system OS/400.Yellow . In the material list of the collective display of the stock/requirements list (Transaction MD07) or the display of the MRP lists (Transaction MD06). the previous icon for the red traffic light is replaced with a different icon. With an ASCII character set. for more details or updates.Unit 2: Evaluation the Planning Results SCM240 indicator for the selection are available.green . for example. you can implement the following modification.red The unexpected sort sequence only occurs in systems which use an EBCDIC character set.MD07/MD06: Sorting according to traffic light. you do not have to explain every individual field. the system sorts as expected. However.yellow . All rights reserved.yellow Descending order: Yellow .green Descending: Green . 52 © 2003 SAP AG.

scroll through the list of materials.SCM240 Lesson: Using the MRP and Stock/Requirements List 1. 4. display and explain the various selection parameters: • MRP controller • Product group • MRP date • Exception groups • Processing indicator. Sort the list by traffic light in ascending order. 5. 53 . point out the settings and functions of the traffic lights and the sort and search functions. Select Sort. Select several materials and select Selected MRP lists Using the Overview tree or the “Next/Previous Materials” icons. 2. 2004/Q3 © 2003 SAP AG. In the initial screen of the collective MRP list . 7. 6. Select Define Traffic Light and explain to the students the concept of sorting. SAP ERP menu path: Logistics → Production → MRP → Evaluations → MRP List . All rights reserved.Collective Display (MD06) Select your MRP controller 0## at plant 1000. 3. 8. only in MRP lists • Material data Select the Exception groups Tab. and select all exception groups and select Continue (Enter) In the Material List.

All rights reserved.Unit 2: Evaluation the Planning Results SCM240 54 © 2003 SAP AG. 2004/Q3 .

SAP ERP 4. System Data System: Client: User ID: Password: CATT: Set up instructions: 1. 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 Example Your batch planning run has just been completed therefore you need to process the results and resolve any issues. Customize the List reports so that you can have several “hot buttons” that will allow planners to speed up the exception process. You have been told that the Stock/Requirements list is a very flexible tool to manage the supply and demand situation. Task 1: Navigation Profiles in the Stock Requirements list Upon completion of a planning run. However you need to make it more flexible.SCM240 Lesson: Using the MRP and Stock/Requirements List 41 Exercise 2: Using the MRP Lists Exercise Duration: 10 Minutes Exercise Objectives After completing this exercise. You concentrate on situations for which rescheduling proposals exist. than time to correct them. Use your material R-F1## at plant 1000 to access the Stock/Requirements list Continued on next page 2004/Q3 © 2003 SAP AG. you often have more exceptions to deal with.00 8XX SCM240-## Z_SCM240 The production Planning overview exercise must be completed before any of these exercises can be completed. As a planner. As a planner you need a tool that will allow you to resolve any exceptions that have come about since the last planning run. 55 . you change the scheduled dates of the planned orders according to the rescheduling proposals that are in the MRP list.7 x 2. All rights reserved. After having clarified the situation in production. 1. You process the MRP lists of the materials for which you are responsible as MRP controller and which were created this week. certain exceptions or problems will be raised.

In the S/R list. Add the stock overview report to your “Own Favorites ” so that you can access it at any time. What changes took place as result of adding the navigation profile? 3. Use the following settings: Field Navigation no. 2. the stock overview report (MMBE) is not available through the navigation profile. review your purchased material R-T1##. All rights reserved. What were the results of your activity? 6. add the Navigation profile SAPPPMRP00 . One of the transactions that you normally run. 2004/Q3 . Exit the stock requirements list Continued on next page 56 © 2003 SAP AG. Did the icons change at all? 4. Transaction code Text in menu Icon Icon text Value 1 MMBE Stock Overview Report Select Any First select enter to refresh the screen.Unit 2: Evaluation the Planning Results SCM240 Using your user settings. then enter Stock Stock Overview Report Info text 5.MRP Controller so you can use the List Reports more easily.

Access the MRP list . As a planner. The first thing that you must do as a planner is to evaluate your planning results. What changes do you observe in the display of the MRP elements? Do you also see changes in the available quantity that is calculated for each MRP element? Test the effect of display filter SAP Only Receipts. the system displays two new fields in the list header where you can define a display filter or a selection rule. 5. and 6 will give you a yellow light. 4. In addition. Access the Stock/Requirements list for material R-F1## at plant 1000. Choose Filter on then. Define your traffic light so that exception group 7 and 8 will give your a red light. What is the affect of the selection rule? Select Filter off to work without a display filter or a selection rule. You want to edit MRP lists with exceptions that affect the rescheduling of procurement proposals. 2. Restrict the selection by selecting the exception group 7 on the tab page Exception groups. and 4. such as Selection group 7.Collective display and select the MRP lists by plant 1000 and your MRP controller number 0## and MRP lists have been created in the current week. 1. In this instance she would like the firmed schedule compared to the current demand. What was the affect on the display Enter a selection rule with the description SAP Only Receipts. Task 3: Using the Collective MRP List Your nightly planning run has just completed. Start the selection by choosing Enter. 7. filter using only exception groups 8. 5.SCM240 Lesson: Using the MRP and Stock/Requirements List Task 2: Filters in the Stock Requirements list (Optional) Your production manager has just requested the production plan for one of your pumps R-F1## at plant 1000. 57 . Use the collective MRP List to identify what materials have issues that you must resolve. You are responsible for more materials than you have time to review. Demonstrate how this is possible by using the filters and selection rules in the stock/requirements list for material R-F1##. 3. you need to find out what materials need your immediate attention. How many materials were selected? ___________ 2. and 4. 1. Use the display filter with the description SAP requirements and firmed receipts. Continued on next page 2004/Q3 © 2003 SAP AG. All rights reserved.

8. two rescheduling dates are executed in the exception messages for rescheduling. 6. For the order in question. find a planned order for which exception message 10. Did any changes occur in the Material overview screen? 4. Date: __________ Significance: _______________________ 7. If the order in question has a rescheduling date to the right of the MRP Element data we need to reschedule the planned order for the date it is suggesting. or 30 is displayed and for which the rescheduling date is not today. did you set the processing indictor? Material: ____________________________ Exit the collective display of the MRP lists. Choose all the materials and review the details In the lists. Date: __________ Significance: _______________________ 2. that is. All rights reserved. Make a note of the material number and the number of the selected planned order: __________ 5. 9. Set the processing indicator for the material and return to the Material List. Change the Planned order so it will arrive in time to cover the requirement in question. This means. in which material MRP list. 58 © 2003 SAP AG. In which MRP list. you need to acknowledge that the material list has been processed. Return to the S/R list and for the planned order that you firmed remove the firming indicator and save. see how many exception messages exist. The system displays the overview of the materials selected. it displays all materials for the MRP controller 0##. 15. What are the two dates and what significance do they have? 1.Unit 2: Evaluation the Planning Results SCM240 3. for which there are MRP lists in which receipt elements with exception messages for rescheduling have been created. 2004/Q3 . In the detailed data for the selected MRP element. After making the changes to the plan.

the stock overview report (MMBE) is not available through the navigation profile. than time to correct them. 4. All rights reserved.) 3. Customize the List reports so that you can have several “hot buttons” that will allow planners to speed up the exception process. Did the icons change at all? Answer: Yes. 59 . You have been told that the Stock/Requirements list is a very flexible tool to manage the supply and demand situation. a) b) c) d) e) f) 2. As a planner. Use your material R-F1## at plant 1000 to access the Stock/Requirements list Using your user settings.SCM240 Lesson: Using the MRP and Stock/Requirements List Solution 2: Using the MRP Lists Task 1: Navigation Profiles in the Stock Requirements list Upon completion of a planning run. One of the transactions that you normally run. What changes took place as result of adding the navigation profile? Answer: Several icons were added to the icon bar for planning transactions. due to settings in the navigation profile.MRP Controller Select Save and enter through any informational messages. add the Navigation profile SAPPPMRP00 . certain exceptions or problems will be raised. you often have more exceptions to deal with. Use the following settings: Continued on next page 2004/Q3 © 2003 SAP AG. 1. In the S/R list. etc. different transactions show up for those materials that are “purchased” versus being manufactured. review your purchased material R-T1##. Planning File. SAP ERP menu path: Logistics → Production → MRP → Evaluations → Stock/Requirements List (MD04) Enter Material R-F1## and plant 1000and press ENTER Select Save Settings Scroll through the tabs and select the General settings Tab In the Navigation profile field select SAPPPMRP00 . (MRP. As a planner you need a tool that will allow you to resolve any exceptions that have come about since the last planning run. However you need to make it more flexible. Add the stock overview report to your “Own Favorites ” so that you can access it at any time.MRP Controller so you can use the List Reports more easily.

then enter Stock Stock Overview Report Info text a) b) c) d) e) 5. 6. quick info. will give you the description for you transaction.Unit 2: Evaluation the Planning Results SCM240 Field Navigation no. Exit the stock requirements list a) Continued on next page 60 © 2003 SAP AG. the text for your menu appears. if you use the menu path Environment → Own Favorites . Lastly. All rights reserved. In addition if you place your cursor on the icon. What were the results of your activity? Answer: A new icon was added. with the icon and the icon text. From the S/R list menu path Environment → Own Favorites → Maintain Select New Entries Enter the parameters in the table Select Select Save Back twice and answer YES to saving the changes. Transaction code Text in menu Icon Icon text Value 1 MMBE Stock Overview Report Select Any First select enter to refresh the screen. 2004/Q3 .

5. Set the filter to display: Requirements and firmed receipts. Use the display filter with the description SAP requirements and firmed receipts. Demonstrate how this is possible by using the filters and selection rules in the stock/requirements list for material R-F1##. All rights reserved. Select Filter On. 3. the system displays two new fields in the list header where you can define a display filter or a selection rule. What was the affect on the display a) Effect of display filter SAP Only Receipts: The system only displays the receipt elements and no change to the Available Qty 4. 1. Select a) Continued on next page 2004/Q3 © 2003 SAP AG. the available quantity is not changed by the display filter. Enter a selection rule with the description SAP Only Receipts. Choose Filter on then.SCM240 Lesson: Using the MRP and Stock/Requirements List Task 2: Filters in the Stock Requirements list (Optional) Your production manager has just requested the production plan for one of your pumps R-F1## at plant 1000. 61 . What is the affect of the selection rule? a) The available quantity have been recalculated using only receipts. What changes do you observe in the display of the MRP elements? a) b) c) d) 2. Access the Stock/Requirements list for material R-F1## at plant 1000. Filter off to work without a display filter or a selection rule. Test the effect of display filter SAP Only Receipts. SAP ERP menu path: Logistics → Production → MRP → Evaluations → Stock/Requirements List (MD04) Enter your material R-F1## at plant 1000 and press ENTER. Do you also see changes in the available quantity that is calculated for each MRP element? a) Changes to the available quantity: No. In this instance she would like the firmed schedule compared to the current demand.

Start the selection by choosing Enter.Collective Display (MD06) Enter the following Data: Field Name Plant MRP Controller MRP date from: Value 1000 0## Beginning of the week to: Today Select the Exception groups Tab Field Name General messages Exception during rescheduling Terminations Select Continue (Enter) Value Select Select Select Continued on next page 62 © 2003 SAP AG. you need to find out what materials need your immediate attention. Restrict the selection by selecting the exception group 7 on the tab page Exception groups. As a planner. 2004/Q3 .Collective display and select the MRP lists by plant 1000 and your MRP controller number 0## and MRP lists have been created in the current week. 1. and 4. The first thing that you must do as a planner is to evaluate your planning results. In addition. You want to edit MRP lists with exceptions that affect the rescheduling of procurement proposals. All rights reserved. Use the collective MRP List to identify what materials have issues that you must resolve. such as Selection group 7. filter using only exception groups 8. 7. Access the MRP list . You are responsible for more materials than you have time to review. How many materials were selected? ___________ a) b) SAP ERP Menu path: Logistics → Production → MRP → Evaluations → MRP List .Unit 2: Evaluation the Planning Results SCM240 Task 3: Using the Collective MRP List Your nightly planning run has just completed.

and 4. two rescheduling dates are executed in the exception messages for rescheduling. 15. Choose all the materials and review the details a) Select All and then select Display selected MRP lists to Select display the corresponding lists in order. 5. Make a note of the material number and the number of the selected planned order: __________ a) To navigate through the list of materials select Next Material and/or Previous Material to switch between the lists. and 6 will give you a yellow light. In the lists.SCM240 Lesson: Using the MRP and Stock/Requirements List 2. 63 . it displays all materials for the MRP controller 0##. In the detailed data for the selected MRP element. for which there are MRP lists in which receipt elements with exception messages for rescheduling have been created. 4. Select Save as user setting. Additionally you can use the Show Overview Tree button and use the worklist to navigate between the materials. see how many exception messages exist. a) b) c) d) From the Material List select Define traffic light. Define your traffic light so that exception group 7 and 8 will give your a red light. This means. Set the radio buttons for exception groups 7 and 8 so that they will trigger a red traffic light. and 6 so they will trigger a yellow traffic light. Date: __________ Significance: _______________________ Continued on next page 2004/Q3 © 2003 SAP AG. b) 6. or 30 is displayed and for which the rescheduling date is not today. Number of selected planned order: Varies For the order in question. The system displays the overview of the materials selected. All rights reserved. Did any changes occur in the Material overview screen? Answer: Some or all of the materials should have changed from green to yellow or red. 3. 5. Set the radio buttons for exception groups 4. 5. find a planned order for which exception message 10. What are the two dates and what significance do they have? 1.

in which material MRP list. Exit the material MRP List In the Material List. Continued on next page 64 © 2003 SAP AG. a) b) c) Select Details of element for the order in questions. Date: Varies Significance: Goods receipt date If the order in question has a rescheduling date to the right of the MRP Element data we need to reschedule the planned order for the date it is suggesting.Unit 2: Evaluation the Planning Results SCM240 2. Material: Varies. a) b) c) d) e) Select Processing indicator on in the list. did you set the processing indictor? Material: ____________________________ Exit the collective display of the MRP lists. repeat the last step. All rights reserved. you need to acknowledge that the material list has been processed. Delete the dates in the fields Start and Plnd Open. If not. Change the Planned order so it will arrive in time to cover the requirement in question. Exception-Info. Date: __________ Significance: _______________________ a) Details of element for this order. To display the long text of an exception message. After making the changes to the plan. Change element. In the additional data. the material that has been process has the following indicator set . 1. a Select maximum of two exception messages are saved. Select Save d) 8. In the MRP list for this order. In which MRP list. Exit the collective display of the MRP List. Set the processing indicator for the material and return to the Material List. for example R-F1##. less one day as the order finish in the dates section. that is. Choose Enter so that the system determines the current start and opening dates. select Enter the Reschedule date. Check in the header details that the processing indicator is set. Date: Varies Significance: Availability date 2. 2004/Q3 . you can select the respective message in the detail screen for the MRP element and select b) 7.

Select change element. a) b) c) d) e) f) SAP ERP menu path: Logistics → Production → MRP → Evaluations → Stock/Requirements List (MD04) Enter your material R-F1## at plant 1000 and press ENTER. All rights reserved. Return to the S/R list and for the planned order that you firmed remove the firming indicator and save. 2004/Q3 © 2003 SAP AG. In the bottom right corner remove the check from the Firmed indicator. Select Save. 65 . Double click on the firm planned order with the * at the end.SCM240 Lesson: Using the MRP and Stock/Requirements List 9.

Unit 2: Evaluation the Planning Results SCM240 Facilitated Discussion Discussion Questions Use the following questions to engage the participants in the discussion. Feel free to use your own additional questions. 66 © 2003 SAP AG. All rights reserved. 2004/Q3 .

All rights reserved.SCM240 Lesson: Using the MRP and Stock/Requirements List Lesson Summary You should now be able to: • Demonstrate how to use the MRP and Stock Requirements List for use in day to day planning. 67 . • Describe the differences between the MRP List and Stock Requirements (S/R) list Related Information The follow Notes may offer more information about the list reports: • 94145: MD04: Explanation note for displaying columns 2004/Q3 © 2003 SAP AG.

Business Example As a production planner you are responsible for the procurement plan and inventory of hundreds of materials. Using Exception Messages Upon completion of almost every planning run. SAP ERP uses exception messages to identify any issues with a production plan. Based on the number of changes that happen every day you can not review the procurement plans of every production. 2004/Q3 . 68 © 2003 SAP AG.Unit 2: Evaluation the Planning Results SCM240 Lesson: 53 Exception Messages in SAP ERP Lesson Duration: 30 Minutes Lesson Overview In this lesson. All rights reserved. Planners need a method to identify each problem as it relates to a material/locaton. you will be able to: • • Explain how exception messages are used in the production planning process Demonstrate how to configure exception messages. problems will have arisen from scheduling issues. you will learn about monitoring MRP result by using exception messages. Lesson Objectives After completing this lesson.

69 . such as start date in the past or stocks falling below the safety level. The MRP list shows the exception messages that were generated as a results of the planning run. Exception messages alert you to situations that require further processing. When dealing with make-to-stock materials. the plan results are monitored using exception messages. Exception messages indicate the following: Newly created order proposals from planning.SCM240 Lesson: Exception Messages in SAP ERP Figure 19: Exception Messages As a result of a planning run or simple changes to supply and demand. Make-to-stock products are constantly re-pegging based on chronological order. users should be aware that different exception messages could be displayed for the same material/plant combination. All rights reserved. Pegging is the relationship between a specific requirement and the receipt that was created to supply the demand.quota exceeded 2004/Q3 © 2003 SAP AG. the Stock/Requirements list will show alerts based on dynamic pegging. problems with BOM explosion or scheduling. The Stock/Requirements list will show exception messages in a real time environment. When using either the MRP List or the Stock/Requirements list. release qty . 96 98 70 Exception message Stock fallen below safety stock level Abnormal end of requirements planning Max. The MRP controller can then select those materials from the planning results to process them manually. dates in the past. rescheduling proposals. Here is a list of the current exception messages in SAP ERP: Group 6 8 6 No.

opening date in the past New. Uncovered reqmt after effective-out date No Requirements coverage Coverage not provided by master plan Recursive BOM components possible Opening date in the past Start date in the past Finish date in the past Bring process forward Postpone process Cancel process Plan Process according to schedule Excess stock Shortage in individual segment Disc. 2004/Q3 .Unit 2: Evaluation the Planning Results SCM240 Group 4 1 2 3 4 4 2 3 5 5 5 5 5 6 6 6 1 2 3 7 7 7 7 6 6 6 6 4 4 No. and start date in the past New. All rights reserved. 01 02 03 04 61 62 63 64 50 52 54 55 53 58 56 40 69 05 06 07 10 15 20 30 25 26 57 59 42 44 Exception message Newly created New. and finish date in the past Scheduling: Customizing inconsistent Scheduling: Master data inconsistent Production start before order start Production finish after order finish No BOM exists No BOM selected No valid run schedule Phantom assembly not exploded No BOM explosion due to missing config. matl partly replaced by follow-up Receipt after effective-out date Order proposal has been changed Order proposal re-exploded 70 © 2003 SAP AG.

If the exception corresponds to an element in both lists. The automatic adjustment of these dates is possible in the planning result display or evaluation. 71 . “Reschedule order proposal”. Figure 20: Old/New Exception Messages You can differentiate between old and new exceptions in the MRP list if you work with the processing indicator. the system compares the exceptions with those from the old MRP list during the planning run.SCM240 Lesson: Exception Messages in SAP ERP Group 4 4 4 No. you can specifically select the lists with new exception messages. it is flagged as an “old” exception. “Display results before saving” has been selected in the initial screen of the planning run. In the collective list display. The rescheduling proposal can be accepted here using the function. the system displays a corresponding exception message in the stock/requirements list and the MRP list as a rescheduling proposal. in interactive planning or when the indicator. If this proposal is to be accepted. for example. 2004/Q3 © 2003 SAP AG. 46 80 82 Exception message Order proposal has been manually changed Reference to retail promotion Item is blocked If scheduling problems occur. you must adjust the dates for the receipt element manually. All rights reserved. For processed MRP lists.

the processing indicator of the MRP list is retained. If the corresponding exception is then found. but the adjustment only affects the exceptions that are directly visible when displaying the MRP list. Creation date in the past new. the MRP list does not appear if only lists with new exceptions are selected in the collective display for MRP lists (MD06). The exceptions of the old and the new MRP list are only adjusted if a processed MRP list exists for the material/plant. If the system finds correspondences. Refer to Note 30684 for more details on this point. During the materials planning of a material. If there are exception messages in the MRP list that was just created. exceptions can be characterized as ’old’ or ’new’. 72 © 2003 SAP AG. it is characterized in the new list as ’old’. an exception adjustment is executed for the previously available MRP list if this is characterized as processed. all exceptions are regarded as ’new’. the exception “Order proposal manually changed” must always be ’old’ since a change was consciously made to the corresponding line of the list. the system searches for matching exceptions in the old MRP list that is indicated as processed. Note: In the planning run. End date in the past order proposal automatically changed newly exploded material has no bill of material no valid bill of material version without valid SAFK record In contrast. you can specifically select the lists with new exceptions and even search for new and old exceptions in the individual lists. 2004/Q3 . Start date in the past new. If this applies to all the exceptions of the new list. which is normally that with the higher priority. All rights reserved. In addition. the exception of the new list is characterized as ’old’. The following exceptions can never be regarded as ’old’: • • • • • • • • • newly scheduled new.Unit 2: Evaluation the Planning Results SCM240 When using collective display of the MRP lists. It is possible for a line of the MRP list to have two exceptions. This function only refers to the exceptions with the highest priority The mode of operation in the planning run can be sketched roughly as follows: First.

73 . 3. If this exists and has the same exception then the exception is marked as ’old’ if one of the following special cases does not apply: • • Rescheduling exception: The rescheduling date must then also agree Stock material surplus: Then quantity and reduction quantity must also agree Demonstration: Use of Exception messages Purpose System Data System: Client: User ID: Password: Set up instructions: 1. SAP ERP menu path: Logistics → Production → MRP → Evaluations → MRP List . 2004/Q3 © 2003 SAP AG. the old list is first searched for the corresponding element. Point out the exception message groups.Collective Display 2. Details of element to see the exception messages for the MRP Select element.SCM240 Lesson: Exception Messages in SAP ERP All remaining exceptions take part in the adjustment. In this case. Press ENTER . 6. All rights reserved. 4. 7. Select using your MRP Controller 0## at plant 1000 Select the Exception groups tab. Select a material that has an exception message in group 7 and select Display selected MRP list. 5. and select all exception groups.

Customizing Exception Messages When exception messages are generated.Unit 2: Evaluation the Planning Results SCM240 58 Using Exception Messages 1. 5. and select all exception groups. 2. Therefore companies can only use those exception messages are delivered by SAP. 4. SAP ERP menu path: Logistics → Production → MRP → Evaluations → MRP List . Press ENTER . In this activity companies can: • • • • • Text of the exception message Determine the priority of each message (99 = highest priority) Assign which group the exception messages belong Turn off the exception message Create the MRP list depending on the exception message created 74 © 2003 SAP AG. Select the Exception groups tab. 2004/Q3 .Collective Display Select using your MRP Controller 0## at plant 1000. Figure 21: Exception Message Configuration In the Customizing IMG Production → Materials Requirements Planning → Evaluation → Exception Messages → Define and Group Exception Messages. 3. Select a material that has an exception message in group 7 and select Display selected MRP lists. Details of element to see the exception messages for the MRP Select element. 6. only SAP developed exception messages will be used. All rights reserved.

In the Customizing IMG Production → Materials Requirements Planning → Evaluations → Exception Messages → Define and group together exception messages 2. 75 .) you can save a maximum of two exception message in the planning run. the two messages with the higher priority are selected. Demonstration: Exception Message Configuration Purpose System Data System: Client: User ID: Password: Set up instructions: 1.SCM240 Lesson: Exception Messages in SAP ERP Caution: These settings are client specific and affect all plants during the planning run. Only the exception with the highest priority is displayed in the list. companies can change the text of each exception message group. Per line of the MRP list (for example planned order. Double click on first entry and explain the settings. purchase order . only renamed. In addition to configuring each exception message. following the IMG menu path: Production → Materials Requirements Planning → Evaluations → Exception Messages → Check Exception Group TextsGroups can not be added or removed. This only refers to the exceptions with the highest priority. If an element has more than two exception messages. 2004/Q3 © 2003 SAP AG. In addition.. All rights reserved.. there is a search function the exception messages in the details of the MRP element. On the detail screen for the line (double-click on the element) the system displays concerning both exception messages.

All rights reserved. Feel free to use your own additional questions. 76 © 2003 SAP AG. Discussion Questions Use the following questions to engage the participants in the discussion. 2004/Q3 .Unit 2: Evaluation the Planning Results SCM240 Facilitated Discussion Discuss the Purpose of Exception messages and what reports will be relevant to review them.

77 . All rights reserved.SCM240 Lesson: Exception Messages in SAP ERP Lesson Summary You should now be able to: • Explain how exception messages are used in the production planning process • Demonstrate how to configure exception messages. 2004/Q3 © 2003 SAP AG.

Unit 2: Evaluation the Planning Results SCM240 Lesson: 61 Days’ Supply Lesson Duration: 25 Minutes Lesson Overview In this lesson. explain the process of interpreting day’s supply and receipt supply. Lesson Objectives After completing this lesson. All rights reserved. Business Example The Precision Pump company constitutes a number of independent business units for manufacturing pumps. you will learn how to interpret the day’s supply and receipt day’s supply for a material. Then. 2004/Q3 . you will be able to: • Interpret day’s supply and receipt day’s supply Discuss the need for using the day’s supply function. As a planning manager. you need to identify potential shortages for the material supply. An Overview to Day’s Supply Figure 22: Days’ Supply 78 © 2003 SAP AG.

you define per plant whether or not the days’ supply should be defined as the point where the stock falls below the physical stock level (indicator “Safety stock” = “1”) or the safety stock level (indicator = “blank”). “Define receipt elements for receipt days’ supply”. there will be enough stock to cover 60% of the requirement). You can flag materials with critical days’ supplies using a red traffic light in the stock/requirements list and in the MRP list. You can define two different receipt days’ supplies that are different with reference to the selection of firmed receipt elements that are taken into account. you define whether or not the receipt days’ supply should be defined as the point where stock falls below the physical stock level or the safety stock level (see days’ supply). This function provides you with information about when the material shortage will occur if no goods receipt is delivered (worst case). You choose which firmed receipts are to be taken into account in the calculation per plant in the Customizing activity. For example. a days’ supply of 24. 2004/Q3 © 2003 SAP AG. All rights reserved. 79 . Figure 23: Receipt Days’ Supply The receipt days’ supply provides you with information about when the material shortage will occur if certain firmed receipts are delivered.SCM240 Lesson: Days’ Supply The days’ supply enables you to determine potential shortages at an early stage. “Define receipt elements for receipt days’ supply”. In the “Safety stock” field in the IMG activity. The days’ supply is entered in workdays and the value entered after the decimal point indicates the portion of the requirement that can still be covered on the shortage day. In the “Safety stock” field.6 means that the stock can cover the requirements for the next 24 days and on day 25.

receipt days’ supply 1 (“1”). You define for various firmed receipts whether or not they are taken into account. All rights reserved. production orders and firmed planned orders are taken into account to calculate receipt days’ supply 1. or only for receipt days’ supply 2 (“2”). for both receipt days’ supplies (“X”). In the above example. 2004/Q3 . which is defined in the Customizing IMG activity. These supplies are different with reference to the selection of their receipt elements. “Define receipt elements for receipt days’ supply”. whereas receipt days’ supply 2 supplies information about the size of the receipt days’ supply taking the production orders into account. System Data System: Client: User ID: Password: Set up instructions: 80 © 2003 SAP AG. Demonstration: Days’ Supply and Receipt Days’ Supply Purpose To demonstrate days’ supply and receipt days’ supply.Unit 2: Evaluation the Planning Results SCM240 Figure 24: Receipt Days’ Supply 1 and 2 (Example) You can analyze two different receipt days’ supplies (1 and 2).

and explain values for days’ supply and receipt days’ supply (all three values are the same). Manually fix the second planned order. if necessary. Call the stock/requirements list for material R-F1## plant 1000: Expand the header and scroll to the Stocks/coverage tab.SCM240 Lesson: Days’ Supply 1. Demo example: For plant 1000 enter “1” in the “Firmed Planned Orders” (FPOrd) column in Customizing. Warehouse stock 7 pieces. Create a new material by copying R-F1##. Enter “blank” in the “Safety stock” column in Customizing. (static) safety stock 5 pieces. planning run. explain how the days’ supplies are calculated using goods receipts and additional planned independent requirements. show how to define the days’ supply and receipt days’ supply and include safety stock. create planned independent requirements: current week + 2 weeks to current week + 6. 2004/Q3 © 2003 SAP AG. Enter “1” in the “Safety Stock” column. 81 . Convert the first planned order in a production order. Display the days’ supply and the two receipt days’ supplies in the header details. 2. refresh MD04 . Explain the calculated values for both receipt days’ supply. Customizing: Production → Material Requirements Planning → Evaluation → Define Receipt Elements for Receipt Days’ Supply. each 10 pieces. All rights reserved. Call up MD04 again (do not refresh ) and explain the calculated value for the days’ supply. In Customizing.

All rights reserved.Unit 2: Evaluation the Planning Results SCM240 Facilitated Discussion Discussion Questions Use the following questions to engage the participants in the discussion. 2004/Q3 . What information is provided by the receipt day’s supply? 82 © 2003 SAP AG. Feel free to use your own additional questions.

SCM240 Lesson: Days’ Supply Lesson Summary You should now be able to: • Interpret day’s supply and receipt day’s supply 2004/Q3 © 2003 SAP AG. All rights reserved. 83 .

• Interpret day’s supply and receipt day’s supply 84 © 2003 SAP AG. • 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. 2004/Q3 . All rights reserved.Unit Summary SCM240 Unit Summary You should now be able to: • Demonstrate how to use the MRP and Stock Requirements List for use in day to day planning.

2. how can I do so? 4. Where can you see many pieces of master data for the material in the MRP list ? 3.SCM240 Test Your Knowledge 67 Test Your Knowledge 1. 85 . What is the purpose of exception messages? 2004/Q3 © 2003 SAP AG. All rights reserved. If I wished to look at only those materials for which I was responsible as the MRP controller. Can I control what data is displayed and in what order in the variable header? 5. What does it mean to say the stock requirements list and the MRP list are split into various planning segments.

How can the number of rescheduling exception messages be reduced or limited? Choose the correct answer(s). A B C D Net Change planning Tolerance Values Planning time fence Reduce all lead times to 1 What is the purpose of the receipt days’ supply? 86 © 2003 SAP AG. What exception messages should be displayed generated and displayed to the planner? 7. 2004/Q3 .Test Your Knowledge SCM240 6. All rights reserved. □ □ □ □ 8.

2. how can I do so? Answer: Using the collective display of the MRP or stock requirements list and limit the selection accordingly. 6. Where can you see many pieces of master data for the material in the MRP list ? Answer: In the detailed (variable) header. All rights reserved. 87 . 4. Answer: This means that the MRP elements that are linked with each other are also displayed together. 3. What exception messages should be displayed generated and displayed to the planner? Answer: Too many exception messages will lead to the planner ignoring all of them. If I wished to look at only those materials for which I was responsible as the MRP controller. Through customizing for MRP type. What is the purpose of exception messages? Answer: Exception messages alert the planner that a planning situation has occured that the system could not resolve completely and therefore should require manual intervention. 5. What does it mean to say the stock requirements list and the MRP list are split into various planning segments. In general the only exception messages that should be displayed are the exceptions that will have action taken against them.SCM240 Test Your Knowledge 69 Answers 1. Can I control what data is displayed and in what order in the variable header? Answer: Yes. 2004/Q3 © 2003 SAP AG. IE: only the ones you will do something about.

D Tolerance values can be set to limit the exception messages generated. 8. What is the purpose of the receipt days’ supply? Answer: The receipt days’ supply provides you with information about when the material shortage will occur if certain firmed receipts are delivered. 88 © 2003 SAP AG. How can the number of rescheduling exception messages be reduced or limited? Answer: B. Adding a planning time fence would actually increase the number of rescheduling messages. Although reducing the lead time will reduce the exception messages. 2004/Q3 . it’s not a feasible solution. All rights reserved.Test Your Knowledge SCM240 7.

2004/Q3 © 2003 SAP AG. Explain how the different planning techniques can influence your business process Explain how MPS is used in SAP ERP Explain how MRP is used in SAP ERP Explain how Consumption based planning is used in SAP ERP Demonstrate the configuration of MRP Types in SAP ERP Identify the minimum configuration requirements in order to execute a planning run in SAP ERP Explain the different techniques of executing planning runs in SAP ERP Demonstrate the purpose of the settings in the planning run Explain the purpose of the planning file and how it influences the settings in the planning run. you will be able to: • • • • • • • • • • • Explain the Fundamental concept of Materials Requirements Planning (MRP) Explain the purpose of independent requirements.Unit 3 71 MRP Basics Unit Overview This unit will discuss the basics relevant to production planning. You will be introduced to various concept of planning ins SAP ERP as well as some of the transactions that will be used throughout the balance of the course to trigger replenishments for large amounts of material. 89 . Unit Objectives After completing this unit. All rights reserved.

......................................................122 Lesson: Methods for Executing a planning run ......................151 90 © 2003 SAP AG.......................................................................................121 Procedure: Creating and setting the Material Status ............120 Demonstration: Material Status.................. 97 Demonstration: Firming Settings ...............................................................................125 Procedure: Setting up MRP to run in the background ......... 2004/Q3 .......... 91 Lesson: MRP Types ...................... 112 Demonstration: Prerequisites for Material Requirements Planning (Optional) ......106 Procedure: MRP Type and MRP Group Configuration .............................................................107 Lesson: Prerequisites for Running MRP.................. MRP Group......................................................................... and Plant ......... 119 Procedure: Create and Maintain MRP Controllers................................104 Procedure: Planning time fences....128 Demonstration: Executing MRP .........................142 Exercise 4: Settings in the planning run ... 114 Procedure: MRP Activation and Create planning files.... MRP Group...............................................................135 Exercise 3: Executing a planning run in SAP ERP ............................. 116 Procedure: MRP Settings in the Material Master.........................................Unit 3: MRP Basics SCM240 Unit Contents Lesson: Concept of MRP ...... All rights reserved... and Plant .............137 Lesson: Settings in the Planning Run .......................................... 118 Demonstration: MRP Controllers ............................ 115 Demonstration: MRP Settings in the Material Master......................

why they are important in the supply chain planning process. Lesson Objectives After completing this lesson. Based on the make up and experience of the class. This lesson is designed to introduce the concept of production planning. you will be able to: • • Explain the Fundamental concept of Materials Requirements Planning (MRP) Explain the purpose of independent requirements. Business Example As a senior production planner you are often required to train new planners or explain your sophisticated planning process to other members of management. All rights reserved. 91 . In this lesson we will focus on the topics of material oriented planning. We need to explain the concept of planning against independent requirements. the instructor can decided how much time is required to discuss rudimentary concepts of planning. Essentially that this is a material/location based planning process. At this time we will outline the General concepts of Materials Requirements Planning. This lesson will address these topics from a high-level perspective and be discussed in detail in other lessons. What they are. 2004/Q3 © 2003 SAP AG. Keep it at a very high level as if it was to be delivered to people with no SAP ERP planning experience. such as MPS and MRP.SCM240 Lesson: Concept of MRP Lesson: 73 Concept of MRP Lesson Duration: 20 Minutes Lesson Overview The concept of enterprise wide planning can encompass numerous tasks with many different groups or departments getting involved. etc.

The two basic kinds of independent demand are customer requirements (actual) and forecast (planned). Customer requirements typically take the form of Sales Orders. Supplies are considered on hand inventory and existing open orders. The term used in SAP ERP planning for this future projection is Planned Independent Requirements. 92 © 2003 SAP AG. Dependent Demand: Requirements for component parts on the Bill of Material. Independent demand is demand that is not dependent upon a bill of material explosion. It is not driven by the requirements of another higher level assembly. Independent Demand: Customer requirements or Forecast. Throughout this entire course we will discuss two basic types of demand that are relevant to MRP: 1. This way a plan can be put together and the organization is ready when the actual customer demand is received. This projection is normally derived using sales history and statistical methods. However those details are beyond the scope of this course. All rights reserved.Unit 3: MRP Basics SCM240 Basic MRP Concept Figure 25: MRP Overview The ultimate goal of Material Requirements Planning (MRP) is in reality very straight forward. A Forecast is a projection of what an organization believes the demand may be in the future. MRP’s purpose is to create material replenishments to offset current and future demands. This forecast then serves as a baseline for planning. Customer Independent Requirements or Schedule Lines (blanket orders). Demands are critical and they are the key for driving MRP. 2004/Q3 . 2.

Determines if there is a shortage and when. Note: If the material is to be purchased. Scheduling (When do we need to start?): Schedule based on the items lead time. MRP Process Figure 26: Basic MRP processing steps Material Requirements Planning (MRP) is a process of logical steps: 1. Manufactured or purchased. The requirements are directly related to. A planned order is created and dependent requirements are passed to the component materials. Bill of Material explosion (What components will be required?) The BOM will be exploded to determine what materials are required to complete the manufacturing process.SCM240 Lesson: Concept of MRP Dependent demand is demand for a component item used in a Bill of Material. Lot Size Calculation (How many do we get?): Determination of how many should be procured. 2. Net Requirements Calculation (Do we need any?) : This is a time phased comparison of supplies vs. 4. Procurement Type (Where do we get them?): Determine the source. the order is created. 5. the demand requirements of the upper level item. Step 1 then begins all over again with the components. and in most cases proportionally related to. 2004/Q3 © 2003 SAP AG. For example: minimum lot size or rounding value. It may be a purchased raw material or a sub-assembly. This provides a start date and finish date. 3. Step 5 is not performed. demand. All rights reserved. 93 .

When planning is complete. dependent requirements created for the assembly act as requirements. In the case of in-house production. When planning is complete. the system generates procurement proposals. planned orders can be converted into production or process orders. planned orders can be converted into production orders. 94 © 2003 SAP AG. 2004/Q3 . During a planning run. In multi-level production. the system creates planned orders to plan the production quantities. This ensures timely staging of the assemblies. All rights reserved. the system transforms the dependent requirements of the planned order into production order reservations. In the case of in-house production. the system creates planned orders to plan the production quantities. which is subsequently converted to a purchase order. In the case of external procurement. the planned order is converted into a purchase requisition. when a finished product is made up of assemblies or components. reschedule. When this is done. When planning is complete. the system either creates a planned order or a purchase requisition to plan the external procurement quantity. or delete at any time. that is. the corresponding assembly group requirements are mapped using dependent requirements. Purchase requisitions and planned orders are internal planning elements that you can change.Unit 3: MRP Basics SCM240 Procurement Proposals Figure 27: Principles and Results of MRP If the system determines shortage of material quantities during MRP.

Discussion Questions Use the following questions to engage the participants in the discussion. • What is the purpose of Independent Requirements. 95 . that is designed to plan the procurement and production from the Finished product at a distribution center.SCM240 Lesson: Concept of MRP Facilitated Discussion Ensure that students can give a general purpose for why companies do material based planning. In SAP ERP it is a material/location based planning process. They can take the form of Sales orders or Planned Independent Requirements. and what form do they take. Feel free to use your own additional questions. All rights reserved. to the raw material at a vendor. Independent requirements are used to drive the make-to-stock process at some level of the Bill of material. • How does production planning fit into the Supply Chain Planning process. This is used to initial the planning process. 2004/Q3 © 2003 SAP AG.

2004/Q3 . 96 © 2003 SAP AG.Unit 3: MRP Basics SCM240 Lesson Summary You should now be able to: • Explain the Fundamental concept of Materials Requirements Planning (MRP) • Explain the purpose of independent requirements. All rights reserved.

semi finished goods and raw materials. In this lesson you will explore how MRP types can be used to group products together in a planning process that limits that amount of time a person will have to spend adjusting production and procurement plans. Business Example As a senior production planner it is your responsibility to manage and over see all the production planning processes in SAP ERP. Details are covered in SCM525. Lesson Objectives After completing this lesson. To properly guide your planners we must identify the different planning techniques in SAP ERP. 2004/Q3 © 2003 SAP AG.SCM240 Lesson: MRP Types Lesson: 78 MRP Types Lesson Duration: 40 Minutes Lesson Overview In order for a planner to succeed on a day to day basis. MPS should be covered from a level just so they understand the various MRP Types. In the manufacturing of pumps. your company experiences many different scenarios in which it must manage the demand for all of your finished goods. All rights reserved. one must be aware of the functionality that can be used that best fits the traits of how a products reacts in your business environment. 97 . you will be able to: • • • • • Explain how the different planning techniques can influence your business process Explain how MPS is used in SAP ERP Explain how MRP is used in SAP ERP Explain how Consumption based planning is used in SAP ERP Demonstrate the configuration of MRP Types in SAP ERP Consumption based planning should be covered from a very high level. planning time fence and MRP Type concepts should be covered in detail. There is a separate unit covering MPS. Firming.

It is typically well suited for high volume. 2004/Q3 . For example: pallets and common packaging materials. A more basic type of planning known as Consumption based planning is available. If the material is to be manufactured. It is characterized by simplicity and is therefore not as complex as the standard MRP procedure.Unit 3: MRP Basics SCM240 MRP Procedures in SAP ERP Figure 28: Overview of Planning Procedures MRP is a time phased material replenishment plan. A significant difference is that the requirements for these materials are based on a statistical forecast as opposed to being driven a master plan. Detailed procurement elements are generated at the appropriate time to ensure specific quantities are available to meet demands. 98 © 2003 SAP AG. the bill of material is exploded to also assure proper planning of component materials. low value materials. These methods are based on historical consumption values. All rights reserved.

In reorder point planning. the reorder point and the safety stock are calculated during the forecast run on the basis of the forecast values. The purchase order quantity is created from the lot-sizing procedure in the material master record. purchase orders. time-phased material planning can be combined with a reorder point. These requirements are forecast requirements and are immediately available in planning. For example. forecast-based planning and time-phased planning. For automatic reorder point planning. reorder point planning. The shortage quantity is calculated by comparing the receipt elements. historical data is used in the material forecast to estimate future requirements. The system only takes into account forecast requirement quantities as issues. The reorder point can be determined manually or automatically using the material forecast. and the replenishment lead time. Other issue elements such as sales orders or reservations are only displayed in forecast-based planning. In accordance with this. the following points must be considered when defining the reorder point: • • • Safety stock Previous consumption or future requirements Replenishment lead time The safety stock must cover both the unplanned material excess consumption during the replenishment lead time. 3. These are not taken into account in the net requirements calculations. The material is only planned on the days that have been specified by the planning cycle. 1. 2004/Q3 © 2003 SAP AG. The reorder point is made up of the expected average material requirement during the replenishment lead time and the safety stock. the service level. 99 . 2. the quantity available for planning results from the following calculation: Warehouse stock + fixed receipts. In addition.SCM240 Lesson: MRP Types There are three basic consumption based planning methods. the forecast requirements are used to define the procurement quantity for covering the relevant time interval until the receipt of the next procurement quantity. To compensate for unforeseen fluctuations in requirements. forecast requirements are also calculated. order proposals. All rights reserved. In time-phased planning. and purchase orders. there is a material shortage. In forecast-based planning. fixed planned orders. The system sets the planning date as the basis for the requirements date. If the quantity available for planning is less than the reorder point. as well as the additional requirements caused by delayed deliveries. and fixed purchase requisitions. such as warehouse stock. with the safety stock and the forecast requirement quantities.

This means that changes made to these critical parts are not copied to the dependent parts. but planning is not executed for these items unless they are MPS items. Master production scheduling is executed with the same logic as material requirements planning but without planning materials that are not labelled as MPS items. You plan the master schedule items (MPS items) and the non-master schedule items in separate planning runs. purchase requisitions. The master production scheduling run only plans the master schedule items. The results of master production scheduling are not passed on to dependent parts until the master 100 © 2003 SAP AG. Therefore it is functionally equivalent to MRP. thus avoiding any disruption arising during production and procurement of purchased parts. It is typical for theses materials that the master production schedule is initially defined on the level of this critical or important material before the dependent assemblies and purchased parts are planned and procured.Unit 3: MRP Basics SCM240 Master Production Schedule (MPS) in SAP ERP Figure 29: MPS Concept Master production Scheduling is a different organizational process rather than different functional goal. The concept of MPS is to enables you to plan materials that greatly influence a company’s profits and critical resources and therefore need to be planned more carefully. schedule lines) to offset current or future material shortages. The goal of MPS is to generate material supplies (planned orders. All rights reserved. Dependent requirements are created for the next low-level code. You are able to specify finished products or assemblies for master schedule items in the "MRP 1" view of the material master. 2004/Q3 .

101 . All rights reserved. By resetting the conversion indicator in the planned order. This means that the header data of the planned order will not be changed in the next planning run. you can prevent the planned order being converted into a production order or purchase requisition. the system also sets the “firmed” indicator for the components as well as for the header information. The firming indicators for the planned order or the components of the planned order can only be changed manually. This means that the components of the planned order will not be changed in the next planning run. 2004/Q3 © 2003 SAP AG. If a component in a planned order is changed manually. If the planned orders are flagged as firmed while defining a firming period in the stock/requirements list and the MRP list. this occurs independent of the firming indicator for the planned order or its components. Master schedule items are not planned along with the MRP run to ensure that you can plan these materials independently. Firming/Fixing in SAP ERP Figure 30: Firming planned orders If a planned order is changed manually. the system automatically sets the “firmed” indicator for this planned order.SCM240 Lesson: MRP Types plan for the critical parts has been processed and finely-tuned.

You can define the planning time fence either per material in the material master record or using the MRP group assigned to the material master. Procurement proposals within the planning time fence are no longer changed automatically during the MRP run. 2004/Q3 . in workdays. You can define the firming period using the planning time fence. The system calculates the finish date of the firming period based on the MRP date. should be based on the total lead time of the material. 102 © 2003 SAP AG.Unit 3: MRP Basics SCM240 Planning Time Fence in SAP ERP Figure 31: Planning Time Fence Using the planning time fence. The firming type defines for the planning run how the procurement proposals are firmed and how the dates are set within the planning time fence. All rights reserved. The length of the firming horizon. you can protect the production schedule for a material from being automatically changed. The firming horizon is only effective in connection with an MRP type that has a firming type.

Exception messages will be created. This means that a planned order will have a end date at the time fence and will be backward scheduled. However. As a result. All rights reserved. P3 or P4. Firming type 2: The planning run does not cover any shortages that have occurred during the firming period. P1. Secondly it controls use of the planning time fence. If new shortages occur within the fixing period. M3 or M4. Firming type 1: The planning run covers all the shortages that have occurred during the firming period at the end of the firming period. 103 . The difference between the various types is defined by how they treat the planning time fence. First it identifies which materials are to be planned during the MPS and which materials are planned by MRP. they are covered at the end of the fixing period. M1. 2004/Q3 © 2003 SAP AG. MPS materials are identified with an MRP type that starts with “M”: M0. the procurement proposals can no longer be changed by the planning run but only by the scheduler. Firming type 3: All procurement proposals that have not been manually firmed within the firming period are moved to the end of the firming period. MRP materials are identified with an MRP type that starts with “P”: PD.SCM240 Lesson: MRP Types Configuration of Firming Types Figure 32: Overview of Firming Types The MRP type controls two important aspects of the planning run. 1 and 2 procurement proposals will be automatically firmed as they roll into the planning time fence. P2. M2. In firming types.

Show how it is possible to define a planning time fence in the Customizing of the MRP groups. Firming Type 1: MRP Types M1 and P1. Firming Type 3: MRP Types M3 and P3. Firming types: • Firming Type 0: MRP Types M0 and PD. in this context. 104 © 2003 SAP AG. • • • • Demonstration: Firming Settings Purpose To demonstrate firming settings System Data System: Client: User ID: Password: Set up instructions: 1. Explain the MRP type field and. The planning time fence is not considered. and so on. explain the difference between types. and exceptions are generated. Even if a value is entered into the planning time fence field of the material master. All rights reserved. If new shortages occur within the fixing period. PD. Display the Customizing for MRP types: Customizing: Production → Material Requirements Planning → Master Data → Check MRP Types. it is not taken into consideration during planning. Firming Type 2: MRP Types M2 and P2. Display the planning time fence in the Stock requirements list. P2. 3.Unit 3: MRP Basics SCM240 Firming type 4: All procurement proposals that have not been manually firmed within the firming period are deleted. 2004/Q3 . they are not covered. Firming Type 4: MRP Types M4 and P4. P1. Display the planning time fence in the material master of R-F1## (MRP 1) Change the MRP Type to either a firming type 1 or 3. Customizing: Production → Material Requirements Planning → MRP Groups → Carry Out Overall Maintenance of MRP Groups or • 2.

SCM240 Lesson: MRP Types Customizing: Production → Material Requirements Planning → Planning → MRP Calculation → Define Planning Time Fence and Roll Forward Period. 2004/Q3 © 2003 SAP AG. 105 . All rights reserved.

The planning time fence should now be displayed. Note the value in the MRP Type and Planning time Fence fields on the MRP 1 view. transaction MD04. All rights reserved. 3. Access the Stock Requirements. Transaction MM02. Enter 30 days for the Planning Time Fence and change the MRP type to a firming type that uses the planning time fence. 2. 106 © 2003 SAP AG. Suggest either type 1 (P1) or type 3 (P3). 2004/Q3 . Return to the material master (step 1). Change the material master for material R-F1##. Change the MRP Type and Planning time fence back to the original noted values.Unit 3: MRP Basics SCM240 86 Planning time fences 1. 4.

SCM240 Lesson: MRP Types 87 MRP Type and MRP Group Configuration 1. 2004/Q3 © 2003 SAP AG. 107 . Customizing: Production → Material Requirements Planning → MRP Groups → Carry Out Overall Maintenance of MRP Groups Manual Firming Dates in SAP ERP Manual Firming Date In contrast to the planning time fence. the manual firming date is also effective for materials of MRP types with firming type 0 or without a firming type. All rights reserved. Access the configuration for MRP Groups. Customizing: Production → Material Requirements Planning → Master Data → Check MRP Types. such as the “manual firming date”. Access the configuration for the MRP Type. 2. The manual firming date causes automatic firming for materials that have firming types 1 and 2 and lie before the manual firming date. Figure 33: Manual Firming Date You can also define the firming period by manually entering a date in the future.

Unit 3: MRP Basics SCM240 Unlike the planning time fence. If you have set a manual firming date and a planning time fence is active. You can apply this function in material requirements planning. then if this date is later than the manual firming date. You set and reset the manual firming date in the stock/requirements list. All rights reserved. materials without a firming type (firming type 0) are considered as materials with firming type 1 with reference to the manual firming date. This means that the procurement proposals that lie before the firming date are firmed and new procurement proposals are moved to the manual firming date. or in single-term. You define the start and the length of the roll forward period in the Customizing of the MRP group: Customizing: Production → Material Requirements Planning → MRP Groups → Carry Out Overall Maintenance of MRP Groups → Planning time fence. or Customizing: Production → Material Requirements Planning → Planning → MRP Calculation → Define Planning Time Fence and Roll Forward Period. in the planning results. 2004/Q3 . 108 © 2003 SAP AG. then this defines the firming period. interactive planning. Customizing: Production → Material Requirements Planning → Master Data → Check MRP Types. the firming period is determined by the end of the planning time fence. If the manual firming date is the later of the two dates. master production scheduling. or long-term planning. You activate the function in the Customizing of the MRP type. Roll Forward in SAP ERP Roll Forward Period You use the roll forward period to delete firmed but out-of-date planned orders to clear or update planning.

you can maintain the roll forward period in the MRP group. All firmed planned orders with an end date within the roll forward period are deleted in the planning run and either new planned orders are created with suitable dates or if the corresponding firming type applies. You can use the roll forward period to delete firmed but out-of-date planned orders to automatically update the production schedule. All rights reserved. 2004/Q3 © 2003 SAP AG. 109 . the orders are moved to the end of the planning time fence.SCM240 Lesson: MRP Types Figure 34: Roll Forward Period In addition to the planning time fence. The “Roll forward indicator” in the Customizing for the MRP type controls whether or not the roll forward mechanism is applied for a material.

2004/Q3 . All rights reserved. Feel free to use your own additional questions.Unit 3: MRP Basics SCM240 Facilitated Discussion Discussion Questions Use the following questions to engage the participants in the discussion. 110 © 2003 SAP AG.

111 .SCM240 Lesson: MRP Types Lesson Summary You should now be able to: • Explain how the different planning techniques can influence your business process • Explain how MPS is used in SAP ERP • Explain how MRP is used in SAP ERP • Explain how Consumption based planning is used in SAP ERP • Demonstrate the configuration of MRP Types in SAP ERP 2004/Q3 © 2003 SAP AG. All rights reserved.

112 © 2003 SAP AG. We will also review the controls and priorities here. All rights reserved. you will be able to: • Identify the minimum configuration requirements in order to execute a planning run in SAP ERP The following points must be explained in order for MRP to function in SAP ERP • • • • • • Activate MRP and Set Up Planning File Define Planning File Entries for Goods Movements Plant configuration MRP group configuration Order number configuration (manual vs system gen. MRP group).Unit 3: MRP Basics SCM240 Lesson: 90 Prerequisites for Running MRP Lesson Duration: 20 Minutes Lesson Overview Prior to running Material Requirements Planning. Identify the necessary configuration steps to execute a planning run. orders) MRP controllers Business Example As the senior production planner you are responsible to ensure the production planning run generates the correct results for your procurement plan. Lesson Objectives After completing this lesson. 2004/Q3 . Certain settings may also be maintained at different levels (ie: plant vs. In this lesson we will explore those settings. The appropriate minimum configuration settings must be set.

which you can access directly from the MRP menu.SCM240 Lesson: Prerequisites for Running MRP Activating MRP in SAP ERP Figure 35: MRP Activation By selecting "Material requirements planning" in the Customizing IMG activity "Activate MRP and set up planning file". All rights reserved. This function can only be used as background processing. Therefore a consistency check should be run to create the planning file entries. Materials already in the planning file can be excluded from the MRP run using the MRP type in the material master (for example. Note: for new customers. . 113 . by using the MRP type ND). you are able to lock a material using the material status for MRP or generate a warning regarding the planning. and subsequently the MRP run for a plant is activated.when a material that is relevant for MRP is created. You activate this function in the activity "Set up planning file" in the Customizing IMG activity "Activate MRP and set up planning file". Entries in the planning file can be made only after this indicator has been set. when creating material masters via a legacy upload do not create a planning file entry. the system sets the "total change" or the "net change planning" indicator (dependent on the planning horizon) in the planning file. the system copies the material number to the planning file and sets both the "total change indicator" and the "net change indicator". 2004/Q3 © 2003 SAP AG. In addition. If materials have been created. once the indicator has been set: . That means. you must create an entry in the planning file for all materials relevant to MRP in this plant. you can specify for which plant an MRP run is to be carried out.whenever a change relevant to MRP is made for the material.

The consistency check is also relevant if material masters are transferred inappropriately to the system using transfer programs created by the user..Unit 3: MRP Basics SCM240 Demonstration: Prerequisites for Material Requirements Planning (Optional) Purpose To explain the prerequisites for MRP System Data System: Client: User ID: Password: Set up instructions: 1. MRP 1).. Display where SAP R/3 Enterprise Material Requirements Planning is activated: Customizing: . Using pump R-F1##. 114 © 2003 SAP AG.Production → Material Requirements Planning → Planning File Entries → Activate MRP and Set Up Planning Files. show the entries for the MRP type (material master. Graphic from SCM240. 2004/Q3 .. All rights reserved. for example. plant 1000 as an example. The consistency check is only required if material requirements planning is to be deactivated for one plant.. Structure of the planning file and the consistency check are also under the following menu path:Production → MRP → Planning → Planning File Entry. It is not certain whether or not the low-level code in the material master matches the code in the planning file.. or if MRP is to be deactivated for individual materials using the MRP type “No planning”. The planning file entries that are no longer relevant are then deleted. “Activate MRP” and “Set Up Planning File” needs to be executed only once. as a result. this section is described briefly.. 2.

All rights reserved. or if MRP is to be deactivated for individual materials using the MRP type “No planning”. It is not certain whether or not the low-level code in the material master matches the code in the planning file. Display where SAP R/3 Enterprise Material Requirements Planning is activated: Customizing: ... for example. “Activate MRP” and “Set Up Planning File” needs to be executed only once. The consistency check is also relevant if material masters are transferred inappropriately to the system using transfer programs created by the user. The planning file entries that are no longer relevant are then deleted. 115 .Production → Material Requirements Planning → Planning File Entries → Activate MRP and Set Up Planning Files. Structure of the planning file and the consistency check also under the following menu path:Production → MRP → Planning → Planning File Entry.SCM240 Lesson: Prerequisites for Running MRP 92 MRP Activation and Create planning files 1.. Customizing for MRP in SAP ERP Figure 36: MRP Parameter Priorities 2004/Q3 © 2003 SAP AG. The consistency check is only required if material requirements planning is to be deactivated for one plant....

This includes the creation indicators for purchase requisitions. This can also be entered in the plant. schedule lines. The setting in the MRP group takes priority over the setting in the plant parameters. and the planning horizon. MRP 3: Display the settings for consumption. The same settings are also possible in the MRP group. 116 © 2003 SAP AG. In Customizing.Unit 3: MRP Basics SCM240 The Customizing settings for the requirements planning are controlled at three levels: • • • Material master MRP group (Customizing step “Carry Out Overall Maintenance of MRP Groups”) Plant parameters (Customizing step “Carry Out Overall Maintenance of Plant Parameters”) The MRP group is an organizational object that is used to allocate certain control parameters for MRP to a group of materials. and Plant Purpose To learn about MRP settings in material master. the setting in the material master takes priority over that in the MRP group to which the material is assigned. If a setting is possible on several levels. Consumption/adjustment: You can set up consumption and adjustment in the MRP group. Display the planning horizon. Display the material master R-F1##: MRP 1: Explain the MRP group field. 2004/Q3 . Demonstration: MRP Settings in the Material Master. and Plant System Data System: Client: User ID: Password: Set up instructions: 1. 2. Display the MRP group 0031 in Customizing: Customizing: Production → Material Requirements Planning → MRP Groups → Carryout Overall Maintenance of MRP Groups. MRP Group. MRP Group. All rights reserved. you define the MRP group with these specific control parameters and assign the material to the corresponding MRP group in the material master record (MRP 1 view).

SCM240 Lesson: Prerequisites for Running MRP 3. Display the plant parameters in Customizing: Customizing: Production → Material Requirements Planning → Plant Parameters → Carryout Overall maintenance of Plant Parameters. 117 . Display the planning horizon 2004/Q3 © 2003 SAP AG. All rights reserved.

118 © 2003 SAP AG. This can also be entered in the plant. MRP Group. Display the MRP group 0031 in Customizing: Customizing: Production → Material Requirements Planning → MRP Groups → Carryout Overall Maintenance of MRP Groups. and Plant 1. MRP 3: Display the settings for consumption. Display the plant parameters in Customizing: Customizing: Production → Material Requirements Planning → Plant Parameters → Carryout Overall Maintenance of Plant Parameters. 2004/Q3 . The majority of these materials will also be planned by MRP. Display the planning horizon. 3. Therefore a corresponding number of material masters must be created and maintained.Unit 3: MRP Basics SCM240 94 MRP Settings in the Material Master. Consumption/adjustment: You can set up consumption and adjustment in the MRP group. Display the planning horizon MRP Controllers in SAP ERP Figure 37: MRP Controllers An organization typically has many materials. 2. Display the material master R-F1##: MRP 1: Display the MRP group field. All rights reserved. The same settings are also possible in the MRP group.

This identification in SAP ERP is the MRP Controller. Typically MRP Controller codes are based on logical groupings of parts. Display the customizing for MRP Controller 0##. Display the material master R-F1##: MRP 1: Display and explain the MRP Controller field. It can also be used for reporting. All rights reserved. It is maintained in the material master on the MRP 1 view. This controller code can then be used to access and process the planning results for a specific group of materials.SCM240 Lesson: Prerequisites for Running MRP These planned materials must be managed by the appropriate individual who is responsible for the specific item. Rather than based planner names. Customizing: Production → Material Requirements Planning → Master Data → Define MRP Controllers OR SAP Menu → Logistics → Production → MRP → Environment → Current Settings → Define MRP Controllers 2004/Q3 © 2003 SAP AG. The MRP Controller represents who is responsible for the planning of a material in a certain plant. Demonstration: MRP Controllers Purpose To learn about MRP controllers System Data System: Client: User ID: Password: Set up instructions: 1. 119 . This provides the flexibility for one person (planner) to be responsible for multiple MRP Controllers. 2.

2. Display the material master R-F1##: MRP 1: Display the MRP Controller field. 120 © 2003 SAP AG.Unit 3: MRP Basics SCM240 96 Create and Maintain MRP Controllers 1. Customizing: Production → Material Requirements Planning → Master Data → Define MRP Controllers OR SAP Menu → Logistics → Production → MRP → Environment → Current Settings → Define MRP Controllers Material Status SAP ERP Figure 38: Material Status The material status enables you to control how a material is used in various business applications. In general. You define this in the Customizing IMG activity "Define material status". You can display whether a material is subject to certain restrictions by means of the status information function. You call up this function from the MRP 1 view of the material master by choosing the push-button "Information on material". 2004/Q3 . If both have been maintained. You can define the material status cross-plant ("Basic data 1" view) or for an individual plant ("MRP 1" view). .It can be locked for specific business transactions by the material status (materials management and production planning and control views).It can be flagged for deletion. the more restrictive of the two applies for the respective application. All rights reserved. you can limit how a material is used in various ways: . Display the customizing for MRP Controller 0##.

SCM240 Lesson: Prerequisites for Running MRP Demonstration: Material Status Purpose To explain material status System Data System: Client: User ID: Password: Set up instructions: 1. All rights reserved. 2004/Q3 © 2003 SAP AG.material requirements planning can no longer be executed. Enter plant-specific material status “01” (blocked for procurement/warehouse) in material R-F1##. Display the definition of the material status in Customizing Customizing: Logistics . Then delete the material status you entered. Display and explain the assignment of the material status (cross-plant and plant-specific) in the material master. 3.General → Material Master → Settings for Key Fields → Define Material Statuses 2. 121 . plant 1000 .

3. Then delete the material status you entered. All rights reserved.Unit 3: MRP Basics SCM240 97 Creating and setting the Material Status 1. Enter plant-specific material status “01” (blocked for procurement/warehouse) in material R-F1##. 122 © 2003 SAP AG.General → Material Master → Settings for Key Fields → Define Material Statuses 2.material requirements planning can no longer be executed. 2004/Q3 . plant 1000 . Display the assignment of the material status (cross-plant and plant-specific) in the material master. Display the definition of the material status in Customizing Customizing: Logistics .

SCM240 Lesson: Prerequisites for Running MRP Facilitated Discussion Discussion Questions Use the following questions to engage the participants in the discussion. Feel free to use your own additional questions. 123 . 2004/Q3 © 2003 SAP AG. All rights reserved.

2004/Q3 . All rights reserved.Unit 3: MRP Basics SCM240 Lesson Summary You should now be able to: • Identify the minimum configuration requirements in order to execute a planning run in SAP ERP 124 © 2003 SAP AG.

Review the different methods of executing planning runs to eliminate the exceptions. production planners will have to execute planning runs at will.SCM240 Lesson: Methods for Executing a planning run Lesson: 99 Methods for Executing a planning run Lesson Duration: 30 Minutes Lesson Overview Over the course of a day or a week. in order to evaluate the impact of supply or demand changes. Once faced with exceptions. plant planning includes planning in the plant MRP area. you will be able to: • Explain the different techniques of executing planning runs in SAP ERP Discuss the following concepts: MRP Run You can execute MRP as total planning not only at the plant level but also in the planning scope (see the following graphics). which are processed by different sessions or servers. 125 . stock transfers Planning with planning scope only with parallel processing • At this point. it will be the planners job to correct these problems. for example. A low-level code is only processed after all the work packages of the previous one have been completed. refer to planning with MRP areas (unit 8). Lesson Objectives After completing this lesson. Division of the planning run between various sessions of an application server or between various servers: Each low-level code is divided into work packages. 2004/Q3 © 2003 SAP AG. and manage their business by exception. Parallel Processing During the Planning Run Customizing: Select Production → Material Requirements Planning → Define Parallel Processing in MRP or select Logistics → Production → MRP → Environment → Current Settings → Define Parallel Processing in MRP. Cross-Plant Total Planning • Planning scope as summary of plants/MRP areas in a particular planning sequence. taking into account mutual dependencies. All rights reserved. To set up the user exit in the total planning run. If MRP areas are activated. you can refer to SAP Note 208025. It should be the goal of each planner to touch as few materials as possible.

Identify the different ways to execute a planning run. several times a day. followed by low-level code 1. A material’s low-level code is always greater than the low-level code of all its predecessors in all BOMs. All rights reserved. Low Level Codes in SAP ERP Figure 39: Low-Level Codes The low-level code is the lowest level at which the material appears in a BOM. In order to do this effectively you will need to run MRP several times a week and in some instances. etc. • • • • • • • Total planing Parallel Processing Scope of planning MRP Areas Background planning (how to set one up) Single item planning methods. Business Example As the senior production planner you are given the responsibility of planning some of the more critical parts in the manufacturing of pumps. and so on. materials with low-level code 0 are planned. The low-level code controls the planning sequence: First.Unit 3: MRP Basics SCM240 Target: Improving performance and robustness. 2004/Q3 . 126 © 2003 SAP AG. This allows all the materials to be planned in the correct sequence in one run.

You can execute total planning online or as a background job. for example. All rights reserved. which fulfill the freely definable criteria. You can display the low-level code in the material master from the MRP 1 view by choosing “Information on material” or in the planning file entry. Interactive planning of a material is also possible. to select all the materials belonging to a particular MRP controller. You can execute single-item planning either for one BOM level only (single-level) or for all BOM levels (multi-level). You can also execute a total planning run for several plants and/or MRP areas (planning scope). You can execute multi-level single-item planning for a Sales and Operations Planning (SOP) product group.SCM240 Lesson: Methods for Executing a planning run The low-level code is calculated and saved at the client level during BOM maintenance. you can execute total planning “Online” or “As background job”. In order to execute total planning as a background job. A user exit enables you to limit the total planning run specifically to those materials. Total planning for a plant consists of all materials relevant to MRP for this plant and includes the BOM explosion for materials with BOMs. From the MRP menu. You can use this. 2004/Q3 © 2003 SAP AG. provided that an entry for that material exists in the planning file. 127 . as total planning for a plant or for an individual material. you select a report variant limiting it to the corresponding plant and schedule the job. Total MRP Figure 40: Total MRP Run You can execute the planning run at two levels.

Parallel processing means that the planning run is divided into several independent work packages that run parallel to each other in different sessions. This variant should contain the appropriate settings for the MRP run. Schedule the background job using transaction code SM37. Parallel Processing of the Planning Run Figure 41: Parallel Processing of the Planning Run When planning with a planning scope. Advantages of parallel processing: • Improves performance: If several computers or processors are available for these sessions. 2. “Define parallel processing in MRP”. you must set the indicator. the planning run terminates with a dump and the remaining materials are not planned. 2004/Q3 . the time required for a planning run can be reduced significantly. You can access this activity directly from the MRP menu. You define the sessions in the Customizing activity. in the planning run.Unit 3: MRP Basics SCM240 102 Setting up MRP to run in the background 1. Robustness: The planning run can continue if there is a run-time error for a material. This material is indicated with a corresponding entry in the material list. “Parallel processing”. • 128 © 2003 SAP AG. Create a variant MRP or MPS (program names: RMMRP000or RMMPS000) using transaction code SE38 OR SA38. All rights reserved. Without parallel processing.

for several MRP areas in MRP. you can plan all the materials in an MRP area. you can group together plants and MRP areas within a planning scope. for several plants. and where necessary. plant 1100. as a background job with a variant for each plant to be planned. If there are mutual dependencies. All rights reserved. You define the scope of planning for total planning in the MRP Customizing activity.SCM240 Lesson: Methods for Executing a planning run The work packages are divided by low-level code. As a result. The system automatically takes into account mutual dependencies. in plant 1000 again. if the individual elements in the BOM are made up of several components. plant 1000. “Define scope of planning for total planning”. The planning scope allows you to execute a total planning run online or as a background job for a plant. and in long-term planning. plants may have to be planned several times (plant 1000 in the graphic). If you have activated MRP with MRP areas. Scope of Planning in SAP ERP Figure 42: Cross-Plant Total Planning The total planning run can be triggered per plant. In particular. For example. 2004/Q3 © 2003 SAP AG. 129 . due to stock transfer. in master production scheduling. for an MRP area. The improvement in performance is clear if the BOMs have a wide structure. The situation displayed in the graphic requires plant 1000 and plant 1100 to be entered in the scope of planning planning takes place for each material in the proposed sequence. for example. that is. The planning run with planning scope must always be started with parallel processing. such as those arising through stock transfer. you can group together several plants (or MRP areas) in the scope of a planning run in a planning sequence and plan on a cross-plant basis in a total planning run.

excluding storage locations planned separately or excluded from MRP. the requirements planning takes place at the plant level. This means that all requirements of a material. such as dependent requirements. flow into requirements planning together at the plant level. 2004/Q3 . and customer requirements for all storage locations that are not planned separately or excluded from MRP. in-house production or external procurement is used to satisfy the requirements.Unit 3: MRP Basics SCM240 MRP Areas in SAP ERP Figure 43: Requirements Planning Without MRP Areas Without MRP areas. planned independent requirements. All rights reserved. Depending on the procurement type of the material. The settings defined in the material master of the material for MRP are valid for the entire plant. 130 © 2003 SAP AG.

For example. In each MRP area. In the collective display. You can assign a receipt (procurement) or issue element (requirement) to a storage location area using the storage location. For each MRP area. The provision of components for individual subcontractors can be planned separately using a MRP area. separate evaluation of the planning results takes place with individual MRP lists or stock/requirements lists. All rights reserved. This unit is planned separately from the remaining plant and MRP areas. it is possible to plan the requirements separately for different production lines. you can assign various MRP parameters to a material so that requirements planning can be specifically tailored to the needs of the individual MRP areas. you can select materials specifically for one MRP area and for all MRP areas of a plant. a larger degree of differentiation is possible in MRP. In storage location MRP areas. 131 . An MRP area is also defined for a subcontractor (supplier) and the corresponding components to be provided are assigned to this MRP area. One storage location can be assigned to one MRP area only. one or several storage locations are grouped together in one organizational unit. Planning takes place separately for each MRP area.SCM240 Lesson: Methods for Executing a planning run Figure 44: Planning with MRP Areas With the introduction of MRP areas. 2004/Q3 © 2003 SAP AG.

it is also important that either the Storage 1 or the Storage 2 view exists in the material master for this storage location. 2004/Q3 . type. As the assignment to a storage location MRP area takes place using the storage locations that the system determines in the planning run. you define the MRP area. All rights reserved. storage location already specified in the Bill of material (BOM) (BOM item). In Customizing: Define MRP Areas. 132 © 2003 SAP AG. The requirements planning for MRP areas can be activated (Customizing: Activate Requirements Planning for MRP Areas) and you can create MRP areas (Customizing: Define MRP Areas). and in the production version or material master. The materials to be planned in MRP areas other than the plant MRP area must be assigned to these MRP areas by creating the corresponding MRP area segments in the MRP 1 view of the material master. the work center (production supply area). To ensure consistent planning. you should check whether certain factors are included in the MRP area that you assigned in the material master. assign one or more storage locations. the existing planning file entries at the plant level must be converted to planning file entries at the MRP area level (Customizing: Convert Planning File Entries for MRP Areas). For defining subcontractor MRP areas. In storage location MRP areas. These factors are like. To complete the process of defining the storage location MRP area. and plant assignment. assign one subcontractor only. you are asked to define a receiving storage location.Unit 3: MRP Basics SCM240 Figure 45: Preparing for Planning with MRP Areas For introducing requirements planning with MRP areas.

these BOMs are also exploded and the components are planned. Planning is carried out as “top-down planning”. You can check and process planning results for single-item. 2004/Q3 © 2003 SAP AG. multilevel planning.SCM240 Lesson: Methods for Executing a planning run Single Item MRP in SAP ERP Figure 46: Executing the Planning Run for Single Items During single-item. multilevel planning. Single-item. and reschedule procurement proposals before planning is resumed. 133 . During single-item. the system generates dependent requirements for materials at the next BOM level. The MRP controller has the option of displaying and manually changing the planning result of assemblies or components before planning is resumed. interactive planning is available as a variant in which the system displays the current planning situation before the planning run can be triggered manually. This is repeated until all BOM levels are exploded. The MRP controller is able to create. All materials are planned according to the parameters entered in the initial screen of single-item. single-level. All rights reserved. the system explodes the material’s Bill of material (BOM) and creates and plans the dependent requirements of the assemblies and components. single-level planning. change. or multilevel planning before saving them using the indicator “Display results before they are saved” in the initial screen. If the components also have BOMs. delete.

you are able to display the planning result for the desired breakpoint and change the planning result before proceeding with further planning. • “Single-item. You trigger the planning manually from the menu for single-item. This has the advantage that the results are not saved until they have been checked and changed by the MRP controller. interactive planning and save the result when closing the function. if necessary. 2004/Q3 . The materials to be planned this way are displayed as breakpoints. “Single-item. All rights reserved. setting the indicator “simulation mode”: You can plan a planned order on multiple levels. In addition. The changes take immediate effect on subsequent planning. interactive”: You plan on a single-level. you have the option of checking the result for all planned materials directly at the end of planning by selecting the “Display matl. list” on the initial screen. and you are able to control at which point a material can be stopped. • 134 © 2003 SAP AG. the planning results are automatically written to the database in the planning run. If you do not set the “Display results before they are saved”. multi-level” setting the indicator “Display results before they are saved” (function also possible for multi-level planning). the system displays only the current planning situation when you access the function.Unit 3: MRP Basics SCM240 Interactive MRP Planning in SAP ERP Figure 47: Options in “Interactive” Planning You have the following options for influencing the planning result interactively: • “Single-level planning. Then. multi-level”.

interactive planning 2004/Q3 © 2003 SAP AG. • • • • Total planning of a plant (or of a plant MRP area) Planning with planning scope (only with parallel processing) Single-item.SCM240 Lesson: Methods for Executing a planning run Demonstration: Executing MRP Purpose To explain how to display the different possibilities to execute the MRP run System Data System: Client: User ID: Password: Set up instructions: 1. single-level. All rights reserved. 135 . and multi-level planning Single-item. Display the different possibilities to execute the MRP run.

2004/Q3 .Unit 3: MRP Basics SCM240 136 © 2003 SAP AG. All rights reserved.

Be sure to select the check box “Product Group” in the scope of planning area. Using material requirements planning. MRP has been executed for material R-F1## in plant 1000. you have populated demand management with planned independent requirements. System Data System: Client: User ID: Password: CATT: Set up instructions: 1.SCM240 Lesson: Methods for Executing a planning run 109 Exercise 3: Executing a planning run in SAP ERP Exercise Duration: 30 Minutes Exercise Objectives After completing this exercise. R-F4## (plant 1000). Run a single-item. All rights reserved. To complete the full planning process. you will be able to: • Demonstrate how to run a single-time MRP run Business Example Product Group Pump-## contains five material/plant combinations: R-F1## (plant 1000 and plant 2400). 1. you will build a procurement plan for all of the products in your product group PUMP-##. multi-level MRP run for all products in the product group PUMP-##. R-F2## (plant 1000). we must run MRP for the other materials in our product group. Task: Material Requirments Planning for a Product Group After releasing the production plan from the S&OP process. 137 . Use the following parameters for the planning run: Hint: Enter your Product Group PUMP-## in the material field of the MRP run transaction. R-F3## (plant 1000). Continued on next page 2004/Q3 © 2003 SAP AG. These requirements are driving your stocking position into negative territory.

Adapt Planning Data 2 .Purchase Requisitions 3 .Lead time scheduling Select How many materials have been planned? 3. 2004/Q3 . Delivery schedules Create MRP list Planning mode Scheduling Also plan unchanged components 2. All rights reserved.Schedule lines MRP List 1 . Now that a MRP run has been executed. 138 © 2003 SAP AG. Value NETCH 1 . What has changed as a result of the MRP run? 4. execute the stock requirements list to see if the planning situation has changed for material R-F2## in plant 1000.Unit 3: MRP Basics SCM240 Field Processing key Create purchase req.

All rights reserved. you will build a procurement plan for all of the products in your product group PUMP-##. 139 . Delivery schedules Create MRP list Planning mode Scheduling Also plan unchanged components a) b) c) 2. multi-level MRP run for all products in the product group PUMP-##. Value NETCH 1 . Be sure to select the check box “Product Group” in the scope of planning area. 1.Lead time scheduling Select SAP ERP menu path: Logistics → Production → MRP → Planning → Single-Item.Purchase Requisitions 3 . Field Processing key Create purchase req.SCM240 Lesson: Methods for Executing a planning run Solution 3: Executing a planning run in SAP ERP Task: Material Requirments Planning for a Product Group After releasing the production plan from the S&OP process. Continued on next page 2004/Q3 © 2003 SAP AG.Schedule lines MRP List 1 . These requirements are driving your stocking position into negative territory. Multi-Level Planning (MD02) Select Select Enter twice to execute the run. Along with their corresponding component parts.Adapt Planning Data 2 . Use the following parameters for the planning run: Hint: Enter your Product Group PUMP-## in the material field of the MRP run transaction. But each material contained in the product group has been planned. Run a single-item. Using material requirements planning. you have populated demand management with planned independent requirements. Back twice to return to the main menu How many materials have been planned? Answer: Varies.

Now that a MRP run has been executed. during some teaches the first planned order may be late. NOTE: due to different working days in each month. a) SAP ERP menu path: Logistics → Production → MRP → Evaluations → Stock/Requirements List (MD04) 4. What has changed as a result of the MRP run? Answer: As a result of MRP. execute the stock requirements list to see if the planning situation has changed for material R-F2## in plant 1000. 140 © 2003 SAP AG. This results in a zero inventory balance after each requirements. a planned order has been created to cover each planned independent requirement.Unit 3: MRP Basics SCM240 3. All rights reserved. 2004/Q3 .

All rights reserved.SCM240 Lesson: Methods for Executing a planning run Lesson Summary You should now be able to: • Explain the different techniques of executing planning runs in SAP ERP 2004/Q3 © 2003 SAP AG. 141 .

you will be able to: • • Demonstrate the purpose of the settings in the planning run Explain the purpose of the planning file and how it influences the settings in the planning run. Therefore you need to ensure that when a planning run is executed. planners must be aware of the settings used in the planning run to finish the run as quick as possible. the results are as accurate as possible the first time round. In order to mimimize the use of system resources.. 142 © 2003 SAP AG. NETCH. Business Example As the senior planner you are given the most critical items to plan. planners often must execute a planning run during the day. NETPL) Different Planning run Settings MRP Group Settings for Planning run Planning File entries Etc. Review the various Planning run settings and execute a planning run. Demonstrate how changes in demand and master data can affect the settings in the planning run.Unit 3: MRP Basics SCM240 Lesson: 114 Settings in the Planning Run Lesson Duration: 30 Minutes Lesson Overview Due to constant changes in demand. MRP Control Settings MRP Control Parameters The indicators to create purchase requisitions. Discuss it at a high level. Identify the purpose of each of the settings in the planning run to ensure accurate results. 2004/Q3 . Note: Scheduling will be done in a later unit. Include the following topics: • • • • • MRP Processing KEY (NEUPL. and MRP lists can be defined in the initial screen for the planning run and in the MRP group.. Lesson Objectives After completing this lesson. All rights reserved. scheduling agreements.

the planning horizon should contain the delivery and total lead times for the material. The planning horizon should. span the time period in which sales orders are received. In addition. For single-item planning (single-level and multi-level): Only the settings on the initial screen are valid in this case. in the case of multi-level planning. All rights reserved.SCM240 Lesson: Settings in the Planning Run Important note on the creation indicators for each MRP group: Customizing: Production → Material Requirements Planning → Planning → Define Creation Indicator. The net change planning procedure (NETCH) only includes materials that have undergone a planning-relevant change since the last planning run. Already in SCM240. You should only choose complete planning (NEUPL) in exceptional cases or if there are data inconsistencies. which are not firmed. You cannot use NEUPL in single-item planning. which is set in the planning file for a material. The planning mode controls how procurement proposals from the previous planning run. which can be entered in the initial screen at the start of a planning run only function as proposals. this section is described briefly. The Customizing settings have no effect. For the total planning run: The creation indicators. at least. This is controlled in the planning file. Scope of the Planning Run Restricting the planning run and using the net change procedure avoids performance problems: You should not plan more materials then necessary. the existing planning data is reactivated in the planning run. which may have settings in their MRP group. As a result. The planning mode. Planning File and MRP (1) Planning File and MRP (2) SA → record type: B = MRP part. D = phantom assembly The planning mode is automatically set in the planning file and can be defined in the initial screen for every planning run. By defining a planning horizon. you also restrict the planning scope as far as time is concerned (NETPL). 143 . which means that procurement proposals that are not firmed remain in the 2004/Q3 © 2003 SAP AG. This rule is valid for both single-level and multi-level planning. should be dealt with in the next planning run. Similar to total planning. NETCH/NETPL (equivalent to planning mode 1) → If the NETCH/NETPL indicators are set. These indicators are only valid if the system does not find a creation indicator in the MRP group. several materials are accessed. may be overridden by the planning mode in the initial screen of the planning run.

changes to the standard time and component assignment. purchase requisitions. sales requirements. or a change to the lot size independent in-house production time (work scheduling view). purchase orders. which lead to planning mode 2: • • • • • Changes to BOMs. which lead to planning mode 3: • • • • Changes to the lot size-independent in-house production time (MRP 2) Change to planned delivery time Change to scheduling margin key Change to MRP controller No planning file entry is created for the following changes: • • Changes in Customizing. for example. 144 © 2003 SAP AG. All rights reserved. forecast requirements. or reservations Changes to the stock Changes to fields relevant to planning for these goods receipts or issues Changes to the lot-sizing procedure or the MRP type • • • Re-explode BOM (equivalent to planning mode 2) → The existing non-firmed procurement elements are transferred but the BOM and the routing are exploded again. The BOM and the routing are only exploded for newly adjusted procurement proposals. Examples of changes. Examples of changes.Unit 3: MRP Basics SCM240 database and are only adjusted if they do not match the new planning situation with reference to dates or quantities. additions. phantom assemblies Changes to the dependency that is assigned in the BOM Classification of a material Classification of a material Changes to the production version in the material master or in the planned order Changes to or new key assignment of BOM explosion number Rest procurement proposals (equivalent to planning mode 3) → Any existing planning data is deleted and created again. Examples of changes. 2004/Q3 . sales order BOMs. dependent requirements. you can overcome this functional gap by setting this indicator manually following a change to a routing and/or in-house production time or by executing a planning run with planning mode 2 or 3. This improves performance. even for those that do no have to be adjusted. which lead to planning mode 1: • Changes. changes to the purchasing department processing time in the plant parameters Changes relevant to planning in the routing. or deletions to planned orders. for example.

SCM240 Lesson: Settings in the Planning Run You can define whether or not to retain or delete the planning file entries following a termination of the planning run in the following Customizing activity:Customizing: Production → Material Requirements Planning → Planning → MRP Calculation → Define Error Handling in Planning Run. this is not an MRP-relevant change. Or: Indicator “Plan Regularly” in the MRP type together with the“ Maximum MRP Period” per MRP group. All rights reserved. Figure 48: MRP Control Parameters 2004/Q3 © 2003 SAP AG. Solution: Carry out NETCH (complete time-axis) regularly in addition to NETPL (net change planning in the planning horizon). Net Change Planning in the Planning Horizon If a requirement drifts into the planning horizon. 145 .

Unit 3: MRP Basics SCM240 When starting the planning run. and MRP lists in the MRP group. It can also be based on the exception message. you define whether or not the existing planning data should simply be adjusted. The appropriate purchasing data must be set up accordingly: Info records. which lead to planning mode 3: – – – – Changes to the lot size-independent in-house production time (MRP 2) Change to planned delivery time Change to scheduling margin key Change to MRP controller • • You can also set the creation indicator for purchase requisitions. 146 © 2003 SAP AG. specify the following control parameters for materials planning: • Processing key: You define the planning type as regenerative planning or net change planning over the whole period or restricted to the planning horizon. The “Create purchase requisition” and “Schedule lines” indicators are only relevant for materials that are procured externally. It could also use a large portion of the number range. • You can also determine whether or not the planning run should generate MRP lists. Three options are available for each purchase requisitions and schedule lines: None (always planned orders). All rights reserved. (Caution: The final option of deleted and recreating the planned orders could have performance implications. or whether or not the existing unfirmed plan should be deleted and rescheduled from the very beginning again. source lists or schedule agreements. The exception messages that should trigger an MRP list to be generated can be defined in the Customizing activity. The materials that are assigned to this MRP group are then planned accordingly in the total planning run. whether or not BOMs and routings should also be re-exploded.) Examples of changes. MRP typically creates planned orders. However you can set this indicator if purchase requisitions and schedule lines are required as a result of the planning run. 2004/Q3 . “Define and group exception messages”. always create and only create within the opening period defined in the material master (planned orders after). schedule lines. Explained further in the next section. With the planning mode. ie: Only generate MRP lists when certain exception messages have appeared for a material.

net change planning. the system plans all the materials of a plant. enables you to carry out the planning run at short time intervals so that you can always work with the current planning results. The system only plans those materials that have been subject to an MRP-change within the planning horizon. you need to execute MRP only for those materials that have undergone MRP-relevant changes. 2004/Q3 © 2003 SAP AG. the system only takes the changes within the planning horizon into account. new sales orders. The planning horizon should at least span the time period in which sales orders are received and should contain the delivery and total lead times for the material. In a working plant. During net change planning in the planning horizon. the consistency of the data cannot be guaranteed. due to technical errors. and changes to the BOM structure. This is practical when carrying out the planning run for the first time and in a productive system when. You specify the type of planning run using the “processing key” field in the initial screen for planning. All rights reserved. you also have the option of using the NEUPL key. 147 . you can only decide whether or not “net change planning” (NETCH) or “net change planning in the planning horizon” (NETPL) is executed. which is used to plan only these materials. using which all the materials in the planning file are planned.SCM240 Lesson: Settings in the Planning Run Scope of the Planning run Figure 49: Scope of the Planning Run During regenerative planning. In total planning. such as through goods issues. when you use a lot of materials. Due to its short run time. You set the planning horizon in Customizing for MRP as a plant or MRP group parameter. In single-item planning. The materials are planned within this horizon only.

Examples of MRP-relevant changes include changes to the procurement type. All rights reserved. dependent requirements. you should remember that a change in the routing does not automatically cause an indicator to be set in the planning file. 2004/Q3 . Net change planning only plans those materials that have been subject to a change relevant to MRP. 148 © 2003 SAP AG.Unit 3: MRP Basics SCM240 Planning File Entries in SAP ERP Figure 50: Planning File Entries and MRP The planning file contains all the materials relevant to MRP for each plant. and also creation of sales orders. changes to the operation times. Display planning file entry. When doing this. The respective entries in the planning file are made automatically by the business application of the system. and stock changes. You can also make the entries manually from the MRP menu in individual cases. Changes relevant to MRP lead to a planning file entry being created specific to the plant and material. The planning file entry includes the following information: • • • The low-level code of the material Whether or not the material has been subject to an MRP-relevant change (NETCH or NETPL indicator) Whether or not the BOM has to be re-exploded or whether or not all existing order proposals are to be deleted You can use the transaction. from the MRP menu to analyze the contents of the planning file entry record for the materials.

SCM240 Lesson: Settings in the Planning Run Figure 51: Planning File Entries and MRP (2) During the planning run. In the case of net change planning in the planning horizon. You can do this in the IMG activity. in the Customizing for MRP calculation by choosing “Del. During net change planning in the planning horizon. the system plans all the materials contained in the planning file without taking the indicators into account. The planning horizon is maintained in the Customizing for MRP as a plant parameter or per MRP group. only the “NETPL planning file entry” indicator is reset. the system only plans those materials that have been flagged with the “NETPL planning file entry” indicator. 2004/Q3 © 2003 SAP AG. the system checks every entry for a material in the planning file. All rights reserved. The “NETCH planning file entry” and “NETPL planning file entry” indicators are reset upon regenerative and net change planning. This determines whether or not the material is taken into account in the next planning run. the entry in the planning file is automatically deleted. • • • In the case of regenerative planning. After the planning run has been executed. the system only plans those materials that have been flagged with the “NETCH planning file entry” indicator. “Define error processing in the planning run”. You can define whether or not a planning entry is to be retained or deleted if a termination should occur while planning a material. In the case of net change planning. planning flag”. 149 .

To plan the changes outside the planning horizon. 150 © 2003 SAP AG. Only those requirements within the planning horizon are covered by the goods receipts. If you only execute net change planning in the planning horizon. requirements may fall into the planning horizon that have not yet been covered by goods receipts.Unit 3: MRP Basics SCM240 Net Change within the Planning Horizon Figure 52: Net Change Planning in the Planning Horizon You can only restrict material requirements planning to the planning horizon if you need to accelerate MRP for performance reasons. All rights reserved. in the Customizing for the MRP type of the material and to maintain the maximum MRP interval in the MRP group. as time lapses. 2004/Q3 . you must carry out net change planning at larger intervals. It is important to note that. An entry for the next planning date is generated automatically in the planning file. “Regular MRP”. the system does not plan those requirements that are outside the planning horizon. The material is included in MRP automatically by the MRP date at the latest. A further possibility for dealing with the problem shown in the graphic is to set the indicator. As long as no other changes relevant to MRP are made. This type of planning run should be carried out on a regular basis. regardless of the other settings in the planning file. these requirements will not be covered until the next planning run for the whole time axis (“NETCH” indicator).

you will be able to: • Demonstrate the relationship between planning file entries and Material Requirements Planning. The project team needs to familiarize itself with the relationship between the planning run and the planning file. etc) or master data (BOM. 2004/Q3 © 2003 SAP AG. Display the planning file for the material R-F1## in the plant 1000. 151 . Which of the following indicators are set now? Continued on next page 3. Review the planning file again for material R-F1## and note the entries. In addition. forecast. This will ensure complete planning of all materials. we must examine the effect of master data changes on Material Requirements Planning (MRP). Change the material master (MRP 1 View) for material R-F1## to reflect this minimum lot size. ____ ExplodeBOM____ 2. Business Example MRP relevant changes to either transactional data (sales orders.SCM240 Lesson: Settings in the Planning Run 121 Exercise 4: Settings in the planning run Exercise Duration: 20 Minutes Exercise Objectives After completing this exercise. Material Master. All rights reserved. System Data System: Client: User ID: Password: CATT: Set up instructions: Task: Analyze the relationship between the planning run and the planning file. 1. Select the planning file entry for the material R-F1## in the plant 1000. Production has determined that the most efficient method to produce the product is in lots of at least 10 pcs. Which of the following indicators are set? NChgplng ____ NChgePHor. etc) should flag materials to be planned in the subsequent MRP run.

___ ExlodeBOM ____ 152 © 2003 SAP AG.Unit 3: MRP Basics SCM240 NChgplng ____ NChgePHor. All rights reserved. Which of the following indicators are set now? NChge plng ____ NChgePHor. Value NETCH 1 .Adapt Planning Data 2 . Use the following parameters for the planning run: Field Processing key Create purchase req.Lead time scheduling Select Review the planning file again for material R-F1## and note the entries. Select the planning file entry for the material R-F1## in the plant 1000. Delivery schedules Create MRP list Planning mode Scheduling Also Plan Unchanged components 5.Purchase Requisitions 3 . ___ ExplodeBOM ____ 4. multi-level MRP run for R-F1## at plant 1000. 2004/Q3 . Run a single-item.Schedule lines MRP List 1 .

No ExplodeBOM. ___ Continued on next page 2004/Q3 © 2003 SAP AG. Which of the following indicators are set? NChgplng ____ NChgePHor. Display the planning file for the material R-F1## in the plant 1000. Which of the following indicators are set now? NChgplng ____ NChgePHor. No 2. 1. . a) b) Menu path: Logistics → Production → Master Data → Material Master → Material → Change → Immediately (MM02) Enter material R-F1##. . Save. Select Choose MRP 1 View and select Enter Plant 1000 and select c) 3. Enter 10 in the field “Minimum lot size” and select Review the planning file again for material R-F1## and note the entries. All rights reserved. Production has determined that the most efficient method to produce the product is in lots of at least 10 pcs. 153 . .SCM240 Lesson: Settings in the Planning Run Solution 4: Settings in the planning run Task: Analyze the relationship between the planning run and the planning file. Change the material master (MRP 1 View) for material R-F1## to reflect this minimum lot size. ____ ExplodeBOM____ a) b) c) Menu path: Logistics → Production → MRP → Planning → Planning File Entry → Display Enter material R-F1## and plant 1000. Select the planning file entry for the material R-F1## in the plant 1000. Select Indicators set: NChge plng No NChgePHor.

Adapt Planning Data 2 . Which of the following indicators are set now? NChge plng ____ NChgePHor. multi-level MRP run for R-F1## at plant 1000. Value NETCH 1 . Yes ExplodeBOM No 4. Use the following parameters for the planning run: Field Processing key Create purchase req.Unit 3: MRP Basics SCM240 ExplodeBOM ____ a) Menu path: Logistics → Production → MRP → Planning → Planning File Entry → Display Indicators set: NChgeplngYes NChgePHor. Delivery schedules Create MRP list Planning mode Scheduling Also Plan Unchanged components a) b) c) 5.Lead time scheduling Select SAP ERP menu path: Logistics → Production → MRP → Planning → Single-Item. Multi-Level Planning (MD02) Select Select Enter twice to execute the run. Select the planning file entry for the material R-F1## in the plant 1000.Purchase Requisitions 3 . Back twice to return to the main menu Review the planning file again for material R-F1## and note the entries. All rights reserved.Schedule lines MRP List 1 . ___ Continued on next page 154 © 2003 SAP AG. Run a single-item. 2004/Q3 .

155 . All rights reserved. No ExplodeBOM No 2004/Q3 © 2003 SAP AG.SCM240 Lesson: Settings in the Planning Run ExlodeBOM ____ a) Menu path: Logistics → Production → MRP → Planning → Planning File Entry → Display Indicators set: NChge plng No NChgePHor.

All rights reserved. 156 © 2003 SAP AG. 2004/Q3 .Unit 3: MRP Basics SCM240 Lesson Summary You should now be able to: • Demonstrate the purpose of the settings in the planning run • Explain the purpose of the planning file and how it influences the settings in the planning run.

157 . All rights reserved. 2004/Q3 © 2003 SAP AG.SCM240 Unit Summary Unit Summary You should now be able to: • Explain the Fundamental concept of Materials Requirements Planning (MRP) • Explain the purpose of independent requirements. • Explain how the different planning techniques can influence your business process • Explain how MPS is used in SAP ERP • Explain how MRP is used in SAP ERP • Explain how Consumption based planning is used in SAP ERP • Demonstrate the configuration of MRP Types in SAP ERP • Identify the minimum configuration requirements in order to execute a planning run in SAP ERP • Explain the different techniques of executing planning runs in SAP ERP • Demonstrate the purpose of the settings in the planning run • Explain the purpose of the planning file and how it influences the settings in the planning run.

Unit Summary SCM240 158 © 2003 SAP AG. All rights reserved. 2004/Q3 .

□ □ 5. What supplies will MRP create to offset shortages? Choose the correct answer(s). All rights reserved. Determine whether this statement is true or false.SCM240 Test Your Knowledge 129 Test Your Knowledge 1. What is the overall purpose of MRP? 2. 159 . □ □ □ □ □ □ 3. Determine whether this statement is true or false. □ □ 4. A B C D E F Planned Independent Requirements Sales Orders Production Orders Planned Orders None of the above Sales orders are dependent demand. True False What is a planned independent requirement used for? 2004/Q3 © 2003 SAP AG. True False Requirements for a screw needed to manufacture a pump are dependent demand.

which takes precedent? 11. If both the PTF and the manual firming date are maintained. What is the difference between “firming” and “fixing” when dealing with MRP types? 9. All rights reserved. 10.Test Your Knowledge SCM240 6. Why is a planning time fence used? 8. If you wish to run single-item MRP for an item designated as MRP type “M1”. MPS and long-term planning? 160 © 2003 SAP AG. Explain the relationship between the PTF and MRP TYPE. Can a manual firming date be assigned in MRP. 2004/Q3 . what will happen? 7.

161 . which in turn can override settings in the plant parameters. What field can be configured to control the transactions that may take place for a material? 15. All rights reserved. What is the MRP Controller? 17. One planner may only be responsible for one MRP controller.SCM240 Test Your Knowledge 12. Determine whether this statement is true or false. Material Master settings can override settings in the MRP group. □ □ True False 14. □ □ True False 2004/Q3 © 2003 SAP AG. What is the danger of not allowing inventory movements? 16. What is the “MRP Group” 13. Determine whether this statement is true or false.

What are the three levels on which a planning run can be carried out? 19. Parallel Processing must be active to use scope of planning. □ □ True False 22. If MRP Areas are used. Determine whether this statement is true or false. Explain “net change planning” 162 © 2003 SAP AG. □ □ True False 20. The low level code is calculated by the system and saved at the client level during BOM maintenance. 2004/Q3 . all materials in the given storage location are planned at the MRP area level.Test Your Knowledge SCM240 18. All rights reserved. What is the main advantage of using Scope of Planning? 21. Determine whether this statement is true or false. □ □ True False 23. Determine whether this statement is true or false.

What is the danger in running NETPL only ? 28. yet you are unable to include a material in the planning run. You have activated MRP and set up the planning file.SCM240 Test Your Knowledge 24. Why may this happen? 2004/Q3 © 2003 SAP AG. What is the reason an MRP controller would likely choose to run net change in the planning horizon as opposed to net change in the total horizon? 27. Give some examples of changes “relevant to MRP” 25. All rights reserved. 163 . How does R/3 know what materials have undergone a change relevant to production? 26.

Sales orders are dependent demand. What is a planned independent requirement used for? Answer: Planned independent requirements represent a projection of what the demand will be. To accomplish this it must balance supply versus demand. 2. (you can. 4. Another term might be forecast. What supplies will MRP create to offset shortages? Answer: D MRP will create planned orders. run MPS on an MRP item) 164 © 2003 SAP AG. 2004/Q3 . 6. Requirements for a screw needed to manufacture a pump are dependent demand. however. Answer: True Dependent demand because the quantity required is dependent on the number of pumps to be manufactured. If you wish to run single-item MRP for an item designated as MRP type “M1”. 3. Answer: False Sales orders are independent demand.Test Your Knowledge SCM240 134 Answers 1. what will happen? Answer: You will get a message stating you cannot carry out this transaction. 5. These requirements are used to drive planning in a proactive manner so that materials are available when needed. If a shortage occurs MRP must create more supply to offset the shortage. All rights reserved. What is the overall purpose of MRP? Answer: The purpose of MRP is to assure material is available when needed. This is done through all levels of the Bill of Material.

165 . If both the PTF and the manual firming date are maintained. which in turn can override settings in the plant parameters. Answer: The MRP Type . What field can be configured to control the transactions that may take place for a material? Answer: The Material Status field 2004/Q3 © 2003 SAP AG. 8. What is the “MRP Group” Answer: A material master field with which you can assign special planning control parameters to materials. Answer: True Material master take the higher priority 14. Material Master settings can override settings in the MRP group. 10. through “firming type” controls how and if the MRP run will firm existing and new order proposals in relation to the firming period. What is the difference between “firming” and “fixing” when dealing with MRP types? Answer: Nothing. MPS and long-term planning? Answer: yes 12. 13. Can a manual firming date be assigned in MRP.SCM240 Test Your Knowledge 7. which takes precedent? Answer: The later in time of the two. Why is a planning time fence used? Answer: The planning time fence delineates the time frame for which MPS/MRP will not automatically make changes to the plan. All rights reserved. Explain the relationship between the PTF and MRP TYPE. 11. 9.

16. Parallel Processing must be active to use scope of planning. All rights reserved. Answer: True Low level code is calculated following BOM Maintenance. this will be automatically accomodated for by the planning run. 166 © 2003 SAP AG. Answer: False MRP controllers should be structured by logically grouping materials.Test Your Knowledge SCM240 15. 18. 21. 20. Therefore one physical person may be responsible for more than one MRP Controller. 17. What is the main advantage of using Scope of Planning? Answer: Multiple plants and/or MRP areas can be selected for the MRP run. What is the danger of not allowing inventory movements? Answer: Excess material may not be disgarded. 2004/Q3 . Product group 19. Answer: True Parallel processing must be activated. If dependencies exist between the locations. Total plant. Therefore it isn’t necessary to run the plants multiple time in a specific sequence. The low level code is calculated by the system and saved at the client level during BOM maintenance. One planner may only be responsible for one MRP controller. What is the MRP Controller? Answer: The MRP Controller field defines who is responsible for a specific material in a plant. What are the three levels on which a planning run can be carried out? Answer: Single item.

What is the reason an MRP controller would likely choose to run net change in the planning horizon as opposed to net change in the total horizon? Answer: To accelerate MRP. How does R/3 know what materials have undergone a change relevant to production? Answer: R/3 reads the planning file which will contain an entry specific to plant and material. What is the danger in running NETPL only ? Answer: Requirements that were outside the planning horizon move into the planning horizon as time marches on.SCM240 Test Your Knowledge 22. sales orders. All rights reserved. They are not covered until the next planning run. 28. 23. If MRP Areas are used. 2004/Q3 © 2003 SAP AG. Why may this happen? Answer: The mrp type and the material status must also be set to allow MRP for each material. Answer: False Assignment to the MRP area is material specific. goods movements. 27. You have activated MRP and set up the planning file. etc. 167 . Give some examples of changes “relevant to MRP” Answer: BOM changes. 24. 25. 26. all materials in the given storage location are planned at the MRP area level. yet you are unable to include a material in the planning run. Explain “net change planning” Answer: This is the planning of only those materials that have undergone a change relevant to MRP since the last planning run.

2004/Q3 .Unit 3: MRP Basics SCM240 168 © 2003 SAP AG. All rights reserved.

Demonstrate various functions in Demand Management Explain how make to stock and make to order will be represented in SAP ERP Explain how Net Requirments planning differs from Planning with Final Assembly Demonstrate how to plan at the sub assembly level Explain the concepts of Consumption and Reduction Identify several popular planning strategies and their characteristics. Unit Objectives After completing this unit.Unit 4 139 Demand Management in SAP ERP Unit Overview This unit will introduce you to the Demand Management tool in SAP ERP. you will be able to: • • • • • • • • • • • • Explain where Demand Management is in the flow of the supply chain planning process. All rights reserved. While only a select employees of a company will have access directly to the tool itself. you will see how various master data fields affect demand management and its interaction with the planning runs. Explain how make to order works in SAP ERP Demonstrate how to plan at the sub assembly level while still maintaining make to order at the finished good level Identify several popular planning strategies and their characteristics Explain the difference between make to order and assembly to order Customize MRP settings 2004/Q3 © 2003 SAP AG. 169 .

....................................... 211 Demonstration: SAP R/3 Strategy 60 (Planning With Planning Material)..244 Demonstration: Customizing Planned Independent Requirements Management ........................225 Lesson: Settings and Customizing ................................. All rights reserved. and Plant .... 2004/Q3 ...................................................................................Unit 4: Demand Management in SAP ERP SCM240 Unit Contents Lesson: Overview of Demand Management .............................................240 Demonstration: MRP Settings in the Material Master.191 Demonstration: .............................................. MRP Group...............................186 Demonstration: Net Requirements Planning..................................................196 Exercise 6: Using Make to Stock planning strategies ..............175 Lesson: Make to Stock versus Make to Order ................................180 Lesson: Make to Stock Planning Strategies.................................................................................................................217 Demonstration: Subassembly Planning Without Final Assembly (74) ..........189 Procedure: Make-toStock .....220 Demonstration: Assembly Processing............................................................201 Lesson: Make to Order Planning Strategies ...............................................223 Exercise 7: Make to Order in SAP ERP ...................171 Exercise 5: Managing your Planned Independent Requirements.240 Demonstration: Planning with Final Assembly (Strategy 50/52) ...........................................................245 170 © 2003 SAP AG.........................194 Demonstration: .......

171 . In addition. 2004/Q3 © 2003 SAP AG. Demonstrate various functions in Demand Management Discuss the following topics: • • • • • Purpose of Demand Mgt. Holds both planned and actual independent rqmts. Business Example As the senior production planner. In order to minimize inventory. companies must often make changes to planned demand in order to better communicate the changes through the rest of the supply chain. Requirements plans Versions and active flag Period and automatic splitting Item text and item history Note: Make sure you include several demonstrations/procedures. you will be advising other planners on how to use the planning functionality in SAP ERP. You will review the different techniques in SAP ERP in order to position your demand properly. you will be able to: • • Explain where Demand Management is in the flow of the supply chain planning process. In this lesson you will learn how the basic functions of demand management work in SAP ERP.SCM240 Lesson: Overview of Demand Management Lesson: 141 Overview of Demand Management Lesson Duration: 30 Minutes Lesson Overview There are many different types of demand that may or may not be relevant to Material Requirements Planning: Sales Demand. Lesson Objectives After completing this lesson. planners must be aware of how and where requirements will be stored. All rights reserved. but keep service levels high you must make sure all demand is being represented properly in SAP ERP. etc. Planned Independent Requirements. In order to execute supply chain planning in SAP ERP. Dependent Requirements. You realize that various products sell and react differently to demand.

MRP and MPS will plan to the demand program. We can therefore split the periods as required manually or automatically. 2004/Q3 .Unit 4: Demand Management in SAP ERP SCM240 Demand Management Demand Management Discuss that demand management creates the demand program. Period splitting is important because sales and marketing often forecast in months. The demand program is NOT software. • • Planned Independent Requirements Customer Independent Requirements 172 © 2003 SAP AG. demand management can pull its numbers from many sources. Planning horizon is unlimited – discuss how this can affect a customer. All rights reserved. demand management acts as a funnel or pipeline to translate requirements or forecasts from a number of different sources to standard formats to which MRP and MPS can plan. sales customer requirements and materials planning (MPS and/or MRP). Because a variety of different processes may exist between and among our customers. We can maintain a change history so that we can compare results with forecasts. but rather is the requirements plan to which MRP plans. In effect. Figure 53: Demand Management Demand management is the link between planned requirements. but production must plan in daily buckets or weekly buckets. Without values in Demand Management. Contained within Demand Management may be two types of demand. MRP/MPS can do no planning. Transfer of requirements can be done at a number of different levels depending on the appropriate business processes of the company.

A procurement plan can then be put together to assure product is available when the “actual” demand is received. However they can be very useful for testing. Normally this is done only when the Sales and Distribution (SD) module is not used. All rights reserved. However it is not a program that must be run. For planning purposes they are treated just like a sales order. The demand program analyzes all of these demands and determines the appropriate quantity and dates that should be passed to the planning function(s). Actual customer requirements are managed via the Sales and Distribution module. They are the “planned”demands that a company believes will be required in the future. 173 .SCM240 Lesson: Overview of Demand Management Planned Independent Requirements are sometimes synonymous with a forecast. 2004/Q3 © 2003 SAP AG. it serves as a filter for the demands being passed to MRP. Planned Independent requirements may come from the following sources: • • • • The sales plan or the production plan from SOP A material forecast Manual entry Another program plan Customer Independent Requirements can be input into demand management in place of sales orders. Hint: Demand Management is very important. Figure 54: Demand Management The planning horizon is unlimited. As the diagram above depicts. Planned Independent Requirements and Customer Independent Requirments are stored and maintained in Demand Management.

Only the “active” version is passed to the operative planning functions. We can create a change history of our plan. This allows multiple demand plans to be maintained for the same product.Unit 4: Demand Management in SAP ERP SCM240 We can split periods into finer detail. Inactive versions may be used for “what if” planning. Multiple requirements can be managed using a Requirements plan number. if the SOP plan we transferred to demand management was in monthly periods. We can do this for a material or a group of materials. we could split the requirements into weeks and/or days. Multiple versions can be active at once. Planning data (sales or production quantities) can be transferred to demand management from an individual material (single transfer). 174 © 2003 SAP AG. or from all materials in a product group (multiple transfer). or into user-defined lengths. All rights reserved. as well as descriptive texts. 2004/Q3 .This allows easier organization and access to requirements for multiple materials. For example. Planned independent requirements are assigned to a version.

have decided that the forecast should be split into weekly buckets so the product can be planned in more finite time buckets. We will manually change the forecast to reflect these changes. Continued on next page 2004/Q3 © 2003 SAP AG. Business Example Management has decided that the forecast should be increased. • Split planned independent requirements into smaller time buckets for more precise planning. These changes must also be logged and noted for traceability purposes.SCM240 Lesson: Overview of Demand Management 145 Exercise 5: Managing your Planned Independent Requirements Exercise Duration: Minutes Exercise Objectives After completing this exercise. 175 . All rights reserved. Therefore we will make these changes directly in demand management. • Display the change history for requirements. you will be able to: • Demonstrate the ability to manually change planned independent requirements. changes have been suggested and they must be revised. 1. it must be transferred to the operations level were it can be viewed at the material level. System Data System: Client: User ID: Password: CATT: Set up instructions: Task: Planned Independent Requirements Once a sales and production plan is complete at the strategic level. You. Once demand is active in demand management it can be used to drive the MPS/MRP process. as a planner. There are only a few changes for material R-F1## in Plant 2400. Now that you have created planned independent requirements. The requirements for this material in plant 2400 must be increased by 25 each month.

Return to the Planning Table . of the PIRs and review the history of changes made to the independent requirement. Since we made a manual override to the requirements. You wish to plan the first three periods in weekly buckets as opposed to monthly. 176 © 2003 SAP AG. All rights reserved. Split the requirement into weekly buckets. 4. 3.Unit 4: Demand Management in SAP ERP SCM240 2. 2004/Q3 . we will document the change with item text.

SCM240 Lesson: Overview of Demand Management Solution 5: Managing your Planned Independent Requirements Task: Planned Independent Requirements Once a sales and production plan is complete at the strategic level. Once demand is active in demand management it can be used to drive the MPS/MRP process. Select enter . lines tab. a) SAP ERP menu path: Logistics → Production → Production Planning → Demand Management→ Planned Independent Requirements → Change (MD62) . e) f) Enter 25 in the Change quantity field and plus “+” in the OP field. All rights reserved. Select all the periods with an independent requirement and select Chge sched. changes have been suggested and they must be revised. There are only a few changes for material R-F1## in Plant 2400. it must be transferred to the operations level were it can be viewed at the material level. Highlight the line with your material and select the Sched. The requirements for this material in plant 2400 must be increased by 25 each month. Now that you have created planned independent requirements. Continued on next page 2004/Q3 © 2003 SAP AG. and enter the following: Field Material Plant All active versions Planning horizon Planning period b) c) d) Select enter. Therefore we will make these changes directly in demand management. 177 . Value R-F1## 2400 Select Leave defaults Leave default to access the maintenance screens.lines . 1. Return to the Table tab.

The requirement has been split. based on the number of workdays. Menu path: Goto → Item history. Menu path: Goto → Item text. reqmts Change:Planning 3. of the PIRs and review the history of changes made to the independent requirement. Since we made a manual override to the requirements. Select Save 4. For example: “I increased the requirements because my boss told me to. we will document the change with item text. Enter text. 178 © 2003 SAP AG. Place a W in the Splt column for the first three requirements and select . Plant 2400. Return to the Planning Table . a) b) c) d) e) Highlight the line containing material R-F1##. Split the requirement into weekly buckets. a) b) c) d) Highlight the line with your material and select the Sched. Note: The changes you just made are shown in the item history. Confirm any information message since long text does not yet exist. You wish to plan the first three periods in weekly buckets as opposed to monthly.Unit 4: Demand Management in SAP ERP SCM240 2. lines tab. 2004/Q3 . into weekly buckets. All rights reserved.” Select Select Table Save Back to return to the Plnd ind. a) b) Highlight the line with your material.

179 .SCM240 Lesson: Overview of Demand Management Lesson Summary You should now be able to: • Explain where Demand Management is in the flow of the supply chain planning process. • Demonstrate various functions in Demand Management 2004/Q3 © 2003 SAP AG. All rights reserved.

Make-to-Order Make-to-Stock Production Discuss the concepts of make-to-stock versus planning with final assembly. you will be able to: • Explain how make to stock and make to order will be represented in SAP ERP Introduce the concept of Make-to-stock and make-to-order in simple terms. Review the process of make-to-stock and make-to-order in SAP ERP. When planning production. Make-to-Stock vs. Other pumps can only be manufactured upon receipt of a sales order and can only be sold to that specific customer. Lesson Objectives After completing this lesson. All rights reserved. 180 © 2003 SAP AG. planning is to the forecast only. With planning with final assembly. regardless of sales orders. Specific strategies will be covered in a later lesson. Ensure that students are aware that with make to stock. a planner. Identify how SAP ERP will model these two processes. must know how SAP ERP will allow them to mimic the products demand patterns as best as possible. planning is to the higher of sales or forecasts. 2004/Q3 . Describe the different concept between Make-to-Stock and Make-to-Order planning. Some pumps sell directly from inventory that is placed ahead of time at your distribution centers. Business Example The pumps that your company manufacturers have different demand patterns.Unit 4: Demand Management in SAP ERP SCM240 Lesson: 149 Make to Stock versus Make to Order Lesson Duration: 10 Minutes Lesson Overview In certain industries the replenishment lead times of a product and the manufacturing process itself will dictate how a planning process will unfold for various products. Demonstrate the unrestristriced versus sales order stock so students begin to get an idea of what Make -to-order means in SAP ERP.

181 . ranging from make-to-order production to make-to-stock production. In this lesson we will discuss MTS vs MTO. Various requirement strategies are available. Other strategies are highlighted on the graphic. 2004/Q3 © 2003 SAP AG. Make-to-Stock Planning Make-to-Order Planning R/3 contains several different make-to-stock processes in order to allow companies to meet a number of business requirements. point out that this is a subset of Make-to-Order planning strategies and will be discussed in a later lesson. All rights reserved.SCM240 Lesson: Make to Stock versus Make to Order Figure 55: Requirements Strategies Requirements strategies represent the business procedures to plan production quantities and production dates.

All rights reserved. 182 © 2003 SAP AG. the finished products are not produced to stock but the necessary assemblies are procured. A sales order for a finished product can then be met quickly because it is only the final assembly that has to be executed because the assemblies already exist. 2004/Q3 . these orders can be met by warehouse stock so that reduced delivery times can be realized. Make-to-stock production can also be executed for assemblies. In this lesson we will discuss MTS vs MTO. If strategies are used for make-to-stock production. point out that this is a subset of Make-to-Order planning strategies and will be discussed in a later lesson. We ship the customer order from our stock of finished goods. In this case.Unit 4: Demand Management in SAP ERP SCM240 Figure 56: Make-to-Stock overview Make-to-stock production means we build general stock in anticipation of customer demand. Other strategies are highlighted on the graphic. production takes place without sales orders already having to be present for the material concerned. If sales orders are received. Make-to-Order Planning Make-to-Order Planning R/3 contains several different make-to-order processes in order to allow companies to meet a number of business requirements.

183 . 2004/Q3 © 2003 SAP AG. All rights reserved. etc) are created with reference to the sales order item. Typically Planned Independent Requirements are not entered for the product and planning is not done ahead of time for the product. Execution (production orders. • • • • MRP planned orders are created directly with reference to the sales order item. Only when the sales order is received can execution take place. Shipment occurs from specific inventory only. process orders.SCM240 Lesson: Make to Stock versus Make to Order Figure 57: Make-to-Order Overview In the Make-to-Order planning. In Make-to-Order planning all aspects of planning and execution are linked directly to the sales order line item. Material is placed in specific inventory with reference to the sales order item. execution cannot take place until actual customer demand is realized.

Feel free to use your own additional questions. 184 © 2003 SAP AG.Unit 4: Demand Management in SAP ERP SCM240 Facilitated Discussion Discussion Questions Use the following questions to engage the participants in the discussion. 2004/Q3 . All rights reserved.

All rights reserved.SCM240 Lesson: Make to Stock versus Make to Order Lesson Summary You should now be able to: • Explain how make to stock and make to order will be represented in SAP ERP 2004/Q3 © 2003 SAP AG. 185 .

Discuss the following techniques: • • • • • • Strategy 10 Strategy 40 Thorough discussion in Consumption and reduction Strategy 70 Strategy 52 (demo) Strategy 59 Business Example As a production planner several of your pumps sell directly from inventory. you have decided to place product in inventory in anticipation of customer demand. Lesson Objectives After completing this lesson. You will use several planning strategies to minimize inventory and keep service levels high. Some have very predictable demand others have very erratic demand. 2004/Q3 .Unit 4: Demand Management in SAP ERP SCM240 Lesson: 153 Make to Stock Planning Strategies Lesson Duration: 45 Minutes Lesson Overview Several of your products have extensive lead times and volatile demand. Review several make-to-stock (MTS) planning strategies to see how SAP ERP will allow planners to model different approaches with this concept. In order to combat this and ensure high levels of customer service. In addition some of you pump assemblies are common to several finished pump products and you want to reduce lead times and inventory. you will be able to: • • • • Explain how Net Requirments planning differs from Planning with Final Assembly Demonstrate how to plan at the sub assembly level Explain the concepts of Consumption and Reduction Identify several popular planning strategies and their characteristics. All rights reserved. 186 © 2003 SAP AG.

Goods issue of 7 pieces: Stock 15 pieces → 22 pieces. planned ind. 10 pieces. Make-to-Stock Production Gross Requirements Planning (11) Gross requirements planning.: 10 pieces. Stock is not taken into account. procurement? No. req. Brief explanation of the net requirements planning logic based on a numerical example: 1. from the familiar strategies. Stock 15 pieces. The stock is taken into account in the net requirements calculation. Strategy 59 corresponds to strategy 70.) Make-To-Stock Strategies and Concepts Make-to-Stock Strategies 2004/Q3 © 2003 SAP AG. 187 . planned ind. 11 and 59. Stock: 15 pieces. req. 10 pieces → 3 pieces (oldest requirement is reduced). and 70: • • Strategy 11 corresponds to strategy 10 but does not take existing warehouse stock into account. focus on load on production. 2.SCM240 Lesson: Make to Stock Planning Strategies Strategies of Make-to-Stock Production Go through the basic characteristics of make-to-stock production again and derive the two strategies. req. Goods issue of 5 pieces: Stock 15 pieces → planned ind. except for phantom assemblies. 10 pieces → 5 pieces (oldest requirement is reduced). procurement? Yes. planned ind. Brief explanation of the gross requirements planning logic based on a numerical example: 1. req. Settings for Gross Requirements Planning (11) Mixed MRP indicator 2 is required for gross requirements planning. (Pay special attention to this when resetting the planning data. All rights reserved. 2. 40. 10.

Unit 4: Demand Management in SAP ERP SCM240 Figure 58: Strategies of Make-to-Stock Production The make-to-stock production strategies plan production or procurement using planned independent requirements. All rights reserved. Sales orders are met by the warehouse stock. but can be displayed for information purposes. Make-to-Stock Figure 59: Anonymous Make-to-Stock (10) The demand is defined without reference to sales orders. Fluctuations in demand and sales are balanced using warehouse stock. which can be created from sales or forecast figures. 188 © 2003 SAP AG. "Defining Requirements Classes" in Customizing for SD). Make-to-stock production strategies are used in industries in which demand and sales fluctuate but where production is to be kept at the same capacity. 2004/Q3 . Sales orders are not relevant to MRP. You make this setting in the "No MRP" field in Customizing for the appropriate requirements class (workstep.

1. storage location 0002). Plant 1000 Check the material master and make the following settings: MRP type PD. 189 . if allowed by the consumption mode and the forward consumption period. no warehouse stock is taken into account. you can carry out the availability check according to ATP logic. Material R-F1##. In the case of gross requirements planning. The oldest planned independent requirement is reduced first according to the FIFO (first-in-first-out) principle using the requirement date. All rights reserved. 2004/Q3 © 2003 SAP AG. Only receipt elements are included in the net requirements calculation. 2. Refresh the stock/requirements list after each step. In net requirements planning. Material withdrawals for a sales order reduce this sales order’s quantity. strategy group 10 (F4 help for strategy group). gross requirements planning (Strategy 11) is another strategy of make-to-stock production. the available warehouse stock for planning is taken into account. Demonstration: Net Requirements Planning Purpose To explain net requirements planning System Data System: Client: User ID: Password: Set up instructions: Note: You can set navigation profile SCM001 during this demonstration to call the main functions from the stock/requirements list. Release both production orders. Future planned independent requirements are also reduced by goods issues. Post a goods receipt for the production orders (goods issue for order. The consumption of the demand program (that is of the planned independent requirements) is carried out at goods issue (the indicator "PIR reduction" in Customizing of the requirements class 30 must be set if you want to reduce the demand program when delivering to a sales order). In Sales and Distribution. Execute the goods receipt and goods issue transactions in a separate session or define up to five favorites for the purpose. 3.SCM240 Lesson: Make to Stock Planning Strategies Sales orders are covered by warehouse stock. Convert the first two planned orders into production orders. movement type 101. In addition to net requirements planning (Strategy 10).

5. Reduction of the customer requirement. such as partially processed goods issue for a customer requirement. reduction of the warehouse stock. reduction of the oldest planned independent requirement according to the FIFO rule (first-in-first-out). 190 © 2003 SAP AG. the planned independent requirements remain the same. storage location 0002). If more material was removed than there were planned independent requirements in the past. from the display of the requirements under Environment → Status overview. All rights reserved. This can be determined by the fact that the available quantity in the list is not affected. Post a goods issue for the customer requirement (movement type 231. 2004/Q3 . A new MRP run does not cause any new planned orders because the stock level that now exists is taken into account in net requirements planning.Unit 4: Demand Management in SAP ERP SCM240 → The stock level increases by the amount of the posted goods receipt. Create a customer requirement: 8 pieces for today + 6 weeks → The customer requirement does not affect planning (make-to-stock production). You can display the subsequent documents for a customer requirement. 4. then planned independent requirements in the future are also reduced if a corresponding entry exists in the consumption period forward (although this function does not actually have anything to do with consumption).

Logistics → Production → Production Planning → Demand Management → Customer Requirements → Create (MD81) → The customer requirement does not affect planning (make-to-stock production). 3. Convert the first planned order into a production order from the S/R List. 191 . Post a goods receipt for the production orders (goods issue for order. movement type 101. Material R-F1##. Logistics → Production → Production Control → Goods Movements → Goods Receipt (MB31) → The stock level increases by the amount of the posted goods receipt.SCM240 Lesson: Make to Stock Planning Strategies 156 Make-toStock 1. storage location 0002). reduction of the warehouse stock. strategy group 10 (F4 help for strategy group). 5. If more material was removed than there were planned independent requirements in the past. reduction of the oldest planned independent requirement according to the FIFO rule (first-in-first-out). 2004/Q3 © 2003 SAP AG. Plant 1000 Check the material master and make the following settings: MRP type PD. A new MRP run does not cause any new planned orders because the stock level that now exists is taken into account in net requirements planning. storage location 0002). Customer requirement: 8 pieces for today + 6 weeks. then planned independent requirements in the future are also reduced if a corresponding entry exists in the consumption period forward (although this function does not actually have anything to do with consumption). the planned independent requirements remain the same. MM02 2. 4. This can be determined by the fact that the available quantity in the list is not affected. Post a goods issue for the customer requirement (movement type 231. Logistics → Production → Production Control → Goods Movements → Goods Issue (MB1A) → Reduction of the customer requirement. All rights reserved.

unconsumed planned independent requirements no longer have an effect on planning). Incoming sales orders consume these planned independent requirements. All rights reserved.Unit 4: Demand Management in SAP ERP SCM240 Planning with Final Assembly Figure 60: Planning with Final Assembly Overview In planning with final assembly (strategy 40). is triggered by the planned independent requirements before the sales order is received. including final assembly. Planned independent requirements left unconsumed increase the warehouse stock .as long as they are not adjusted to customer requirements (“Adjust Requirements“ is a function to be run periodically to ensure that old. In effect planning is on the higher of the two: Planned Independent Requirements vs. If customer requirements exceeds planned independent requirements. Actual sales Requirements. the system automatically creates a planned order for the unplanned quantity in the next MRP run. 192 © 2003 SAP AG. You plan the planned independent requirements for the finished product in Demand Management. 2004/Q3 . Production. the main focus is on flexibility in reacting to customers’ demands.

In forward consumption (consumption mode 3). subassembly planning of dependent requirements.SCM240 Lesson: Make to Stock Planning Strategies Figure 61: Consumption To set up consumption of customer requirements. only requirements on the same day are consumed. All rights reserved. you must set the consumption mode and the consumption period in the material master in the MRP 3 view or in the MRP group. The consumption indicator (consumption type) is important in addition to the consumption mode and consumption periods. The consumption mode defines the direction on the time axis in which the consumption with planning should occur. Note: If consumption mode 1 and the backward consumption period are not maintained. If no values are entered for the consumption mode and the consumption interval. The consumption indicator controls whether or not the planned independent requirements are consumed 2004/Q3 © 2003 SAP AG. 193 . the sales order or dependent requirements consume planned independent requirements that are available after meeting the customer requirement. You can combine backward and forward consumption only if you take the consumption periods into account (consumption mode 2 or 4). the sales order or dependent requirements consume planned independent requirements that are available before the customer requirement. starting from the date of the sales order to the dependent requirement. In backward consumption (consumption mode 1). or reservations with planned independent requirements. the system uses the default setting with backward consumption for 999 days.

Reduction is the process of actually reducing the value of the planned ind. Reduction of the planned independent requirements will also take place as a result of the sales requirement. consumption mode. and consumption indicator (consumption type): Consumption mode. Whereas during “consumption” the actual value stored was not changed. consumption period. consumption interval: Maintain these in the material master (MRP 3) or in the Customizing for the MRP group parameters. 194 © 2003 SAP AG. Follow exercise: Planning at the Assembly Level Planning at the Assembly Level (70) Consumption Brief revision of the terms. 2004/Q3 .Unit 4: Demand Management in SAP ERP SCM240 using requirements and/or dependent requirements and order reservations. requirement as it’s stored in the system. Demonstration: Purpose System Data System: Client: User ID: Password: Set up instructions: 1. The indicator can be overridden in the item detail screen of planned independent requirements management. only the quantity passed to planning was lowered. reduction Consumption is not the only integration between actual sales requirements and planned independent requirements. The consumption indicator is defined as a default value for each planned independent requirement class in Customizing for demand management. In gross requirements planning reduction takes place when the goods are received into inventory. Consumption vs. All rights reserved. With the exception of planning strategy 11 (gross requirements planning) reduction takes place when the goods are actually issued.

Default values for the consumption type for each requirements class: Determination of concrete requirements. All rights reserved. phantom assemblies can be placed in stock and withdrawn at a later date. the dependent requirements exceed the planning quantity by 200 pieces. While doing so. in which the missing stock level of the assembly creates a further complication. such as customer requirement. you should point out that the prerequisite to backflush the phantom assembly components is of a technical nature and not part of the strategy. 2004/Q3 © 2003 SAP AG. Customizing: Select Production → Production Planning → Demand Management → Planned Independent Requirements → Default Values and Presettings → Define default values for consumption type per requirements class Brief explanation of the subassembly planning logic based on a numerical example: The motor assembly is to be developed into three different car models: A. and C. dependent requirement. You control the withdrawal using the function. Phantom Assembly Planning (59) This strategy is very complicated and difficult to explain. Phantom Assemblies Do not describe the planning strategy but describe the functions of a phantom assembly. and 300 pieces for C. at least one component of the phantom assembly must be subject to backflushing so that the planned independent requirements and reservations are reduced with the phantom assembly. The dependent requirements for the motors consume the planned independent requirements. 400 pieces for A. This means that 1000 pieces can be obtained from the warehouse stock and 200 pieces must still be procured.SCM240 Lesson: Make to Stock Planning Strategies Customizing: Select Production → Production Planning → Demand Management → Planned Independent Requirements → Maintain consumption mode and period of adjustment. Planning is executed for the motor: 1000 pieces in January and procurement is triggered. Go through the individual steps of this strategy based on the notes. In exceptional cases. “Edit components” of the planned order of the material at a level higher than the phantom assembly level (for a detailed view of a component item click the button “From warehouse”). Technically. You can think of it as a modification of strategy 70. with which consumption occurs. 195 . and reservations. B. Sales orders are received for the cars. 500 pieces for B. however.

In the strategy group of the material master record. The requirements are created at the assembly level and these requirements trigger the production of the assembly. Demonstration: Purpose 196 © 2003 SAP AG. the BOM is exploded for the finished product. when it is easy to specify a requirements forecast for certain assemblies than it is to do so for the variant diversity of the finished product.Unit 4: Demand Management in SAP ERP SCM240 Figure 62: Planning at the Assembly Level (70) Planning at the assembly level (strategy 70 + assembly planning indicator set) is appropriate for production with variants. planned orders. due to sales orders. Dependent requirements or reservations are also created for the assembly as a result of planned orders or production orders for the finished product. These dependant requirements consume the planned independent requirements of the assembly. All rights reserved. In this planning strategy. the planned independent requirements for an assembly are planned separately. If. If sales orders are received for the finished product. 2004/Q3 . the dependent requirements or reservations exceed the assembly’s planned independent requirements. you must enter strategy 70 and the mixed MRP indicator must be set for assembly planning. a planned order is created for the assembly during the next planning run. or production orders at finished product level. for example.

a car radio assembly consists of the radio. which is not placed into stock but used immediately. speakers. which is created in the production process. All rights reserved. In the planning run. phantom assemblies can be placed in stock and withdrawn at a later date. Follow exercise: Planning at the Phantom Assembly level Figure 63: Phantom Assembly A phantom assembly can represent a subassembly. For example. 197 . and an aerial. 2004/Q3 © 2003 SAP AG. the dependent requirements of the higher-level assembly are directly passed down to the components of the phantom assembly.SCM240 Lesson: Make to Stock Planning Strategies System Data System: Client: User ID: Password: Set up instructions: 1. In exceptional cases. Phantom assemblies can also represent a logical grouping. You flag a phantom assembly by entering a special procurement type in the material master (view MRP 2) or by entering the indicator (or overriding it) in the BOM item.

Procurement of the components is triggered in step two (2). the phantom assembly is confirmed and. All rights reserved. MRP-relevant dependent requirements/reservations are created at the component level as a result of the planned order/production order for the finished product in step three (3). these are not relevant for planning. Backflushing is important so that the planned independent requirements and the reservations can be reduced consistently. The planned independent requirement and the reservation of the phantom assembly and the reservations of the components are reduced in step five (5). with strategy 59. 198 © 2003 SAP AG. However. the components of the assembly are backflushed. this is not the case for phantom assemblies. if necessary. This planned independent requirement leads to a dependent requirement for the components of the phantom assembly in MRP. However. Normally. 2004/Q3 . The customer requirement or the planned order/production order at the finished product level creates a dependent requirement/reservation at the phantom assembly level.Unit 4: Demand Management in SAP ERP SCM240 Figure 64: Phantom Assembly Planning (59) You must have entered strategy 59 (phantom assembly planning) in the material master of the phantom assembly and set the mixed MRP indicator 1 (subassembly planning) and the special procurement type 50 (phantom assembly). these dependent requirements/reservations are created to balance the planned independent requirements. However. The planned quantities for the phantom assembly are set in step one (1). After final assembly has been carried out in step four (4). Consumption of the planned independent requirements also means that the dependent requirements are reduced at the component level.

2004/Q3 © 2003 SAP AG. set the indicator for backflush (MRP 2 view) to ensure consistent reduction of the planned independent requirements and the reservations. Strategy group = 59 (planning at the phantom assembly level). Mixed MRP indicator = 1 (assembly planning with final assembly). All rights reserved.SCM240 Lesson: Make to Stock Planning Strategies Figure 65: Phantom Assembly Planning Settings (59) If you want to use the Phantom assembly planning (59) strategy. In the material master of all the components of the phantom. You should also assign the components to the same operation in the routing to ensure that the components are confirmed at the same time. 199 . you must make the following settings in the material master of the assembly (“MRP” view): • • • Special procurement type = 50 (phantom assembly).

Delete history: The history can be deleted by determining a (further) key date.Unit 4: Demand Management in SAP ERP SCM240 Reorganizing the Planned Independent Requirements Figure 66: Reorganizing Planned Independent Requirements Planned independent requirements that have not been reduced can be reorganized using SAP R/3 transactions MD74. This can be calculated backwards from the current date. and MD76. 3. whereby planned independent requirements within an adjustment period are ignored by the system during planning. such as once per month. MD75. It is recommended that you periodically execute reorganization. 2. Reorganization of schedule lines: Schedule lines with quantity 0 before the key date are deleted from the database. Note: This should not be confused with adjustment according to MRP group in SAP R/3 Enterprise. Adjust requirements: Quantities that have not been consumed/assigned before the reorganization key date which is to be specified (this date can also be in the future. a reorganization period can be maintained per plant in SAP R/3 Enterprise (demand management Customizing). 200 © 2003 SAP AG. but remain quantitatively preserved. Reorganization takes place in 3 steps: 1. Alternatively. All rights reserved. The goal of this is to delete obsolete planned independent requirements from the database. the reorganization period is also possible per plant) are set to 0 and are flagged for reorganization. 2004/Q3 .

Therefore our business environment will dictate backward consumption only. • Verify the requirements type and consumption process are functioning as expected. System Data System: Client: User ID: Password: CATT: Set up instructions: 1. Assembly R-B4## is required for the production of R-F2##.SCM240 Lesson: Make to Stock Planning Strategies 165 Exercise 6: Using Make to Stock planning strategies Exercise Duration: 30 Minutes Exercise Objectives After completing this exercise. If we oversell the current month’s projection. if sales orders exceed the expected planned demand. 201 . Therefore. However. we must plan this material at the component level. All rights reserved. • Receive a sales order for the product. Business Example Finished product R-F2## is built in advance and inventoried so customer shipments can be made on an on-time basis. 2004/Q3 © 2003 SAP AG. you will be able to: • Maintain the planning strategy settings in the material master of product R-F2##. It is also sold as a spare part and used in other finished products that are not planned. additional product must be produced. Planning strategy 40 (Planning with final assembly) will be used to control this planning situation. that does not mean less will be sold in another month.

Enter a sales order (type OR) for 50 pcs of material R-F2## to be delivered in two months. 3. Finally. 2004/Q3 . The material will then be re-planned for accuracy. All rights reserved. We will then verify the planned independent requirements using the stock requirements list. Maintain the material master for pump R-F2##. Assure it is setup for planning strategy “Planning with final assembly”. Consumption mode “Backward Only ”and backward consumption period of 30 days. After the requirements have been entered. What is the requirements type of the planned independent requirements? 2. To assure proper planning we will maintain the material master. plant 1000 is to be planned using strategy 40 (30 days backward consumption only).Unit 4: Demand Management in SAP ERP SCM240 Task 1: Planning with final assembly: Requirements Strategy 40 Material R-F2##. Return to the stock requirements list to see if the planning situation has changed. Access the stock requirements list to review the current planning situation for material R-F2##at plant 1000. they will be verified and we will run MRP. 6. an actual sales order is received. which will consume the independent requirements. Have planned orders been created to offset the shortages? On what dates? 5. 1. 4. Continued on next page 202 © 2003 SAP AG.

Continued on next page 2004/Q3 © 2003 SAP AG. If MRP is run again. Has the planning situation changed? 9. Delivery schedules Create MRP list Planning mode Scheduling Also plan unchanged components Value NETCH 1 . run a single-item. 8. All rights reserved.SCM240 Lesson: Make to Stock Planning Strategies 7. Use the following parameters for the planning run: Field Processing key Create purchase req. Access the stock requirements list to review the current planning situation. multi-level MRP run for R-F2## at plant 1000. In a second session. how will it change the planning results? 10.Lead time scheduling Select 11. 203 .Schedule lines MRP List 1 .Adapt Planning Data 2 . Have the planned independent requirements been consumed.Purchase Requisitions 3 .

To assure proper planning we will maintain the material master. Assure it is setup for planning strategy “Planning at assembly” level. 1. 4. Why are the planned independent requirement quantities not displaying the values entered in the previous step? 6. 2004/Q3 . Have the planned orders been adjusted to the revised demand situation? Task 2: Planning at assembly level: Requirements Strategy 70 Material R-B4##. Maintain the material master for component assembly R-B4##. What is the requirements type of the planned independent requirements? 2. Projected total demand for R-B4##in plant 1000is 1200 pcs per month (for the next six months). plant 1000 is to be planned using strategy 70 (30 days backward consumption only). 3.Unit 4: Demand Management in SAP ERP SCM240 12. All rights reserved. After the requirements have been entered. Display the consumed quantities using the total requirements display. We will then enter planned independent requirements into demand management and verify them using the stock requirements list. 204 © 2003 SAP AG. they will be verified and we will check consumption. Enter these as planned independent requirements Access the stock requirements list to review the current planning situation. Consumption mode “Backward Only ”and backward consumption period of 30 days. 5.

Assure it is setup for planning strategy “Planning with final assembly”. 205 . make sure the entries are made per the table below: Field Strategy group Consumption mode Bwd consumption per. Fwd consumption per. All rights reserved. To assure proper planning we will maintain the material master. Select save Value 40 1 30 Leave blank . Access the stock requirements list to review the current planning situation for material R-F2##at plant 1000. The material will then be re-planned for accuracy. Enter through any warning messages. Finally. a) SAP ERP menu Path: Logistics → Production → Production Planning → Demand Management → Environment → Stock/Requirements List (MD04) Continued on next page 2004/Q3 © 2003 SAP AG. plant 1000 is to be planned using strategy 40 (30 days backward consumption only). We will then verify the planned independent requirements using the stock requirements list.SCM240 Lesson: Make to Stock Planning Strategies Solution 6: Using Make to Stock planning strategies Task 1: Planning with final assembly: Requirements Strategy 40 Material R-F2##. Maintain the material master for pump R-F2##. 1. they will be verified and we will run MRP. an actual sales order is received. e) 2. and enter the following: Enter material R-F2## and select enter b) c) d) Choose the MRP 3 view and select enter Enter plant 1000 and select enter On the MRP 3 tab. After the requirements have been entered. which will consume the independent requirements. Consumption mode “Backward Only ”and backward consumption period of 30 days. a) SAP ERP menu path: Logistics → Production → Master Data → Material Master → Material → Change → Immediately (MM02) .

Return to the stock requirements list to see if the planning situation has changed. a) b) System → Create session SAP ERP menu path: Logistics → Sales and Distribution → Sales → Order → Create (VA01). The planned orders are scheduled to be completed by the requirements date of the planned independent requirements. All rights reserved. 4.deliv. Enter a sales order (type OR) for 50 pcs of material R-F2## to be delivered in two months.Unit 4: Demand Management in SAP ERP SCM240 3. 6. Have planned orders been created to offset the shortages? On what dates? Answer: A previous MRP run has created planned orders to satisfy the demand. On the initial screen enter data from the table below and select Order Type Sales Organization Distribution Channel Division c) Enter the data per the table below: Field Sold-to party Ship-to party PO Number Req.date Material Order quantity d) Select then save Value 1000 1000 PO## two months from today R-F2## 50 OR 1000 10 00 . a) b) Go to your other session that should be open. What is the requirements type of the planned independent requirements? Answer: The requirements type is VSF. Refresh the stock/requirements situation by selecting Continued on next page 206 © 2003 SAP AG. 5. and confirm any warnings regarding the billing date and . 2004/Q3 .

the requirement dates have changed.SCM240 Lesson: Make to Stock Planning Strategies 7. Multi-Level Planning (MD02) Select Select Enter twice to execute the run. In a second session. But the planned order for the total quantity is still due on the date of the planned independent requirement. 9. planned independent requirements in the appropriate period have been lowered by the amount of the sales order.Lead time scheduling Select SAP ERP menu path: Logistics → Production → MRP → Planning → Single-Item.Schedule lines MRP List 1 . Have the planned independent requirements been consumed. run a single-item. Access the stock requirements list to review the current planning situation.Purchase Requisitions 3 . Answer: As a result taking the sales order. All rights reserved. SAP ERP menu Path: Logistics → Production → Production Planning → Demand Management → Environment → Stock/Requirements List (MD04) Continued on next page 2004/Q3 © 2003 SAP AG. Delivery schedules Create MRP list Planning mode Scheduling Also plan unchanged components a) b) c) a) Value NETCH 1 . multi-level MRP run for R-F2## at plant 1000. the total demand quantity has not changed. the total demand for the period will remain the same. Back twice to return to the main menu 11.Adapt Planning Data 2 . If MRP is run again. how will it change the planning results? Answer: The planned order generated to offset the planned independent requirement will be lower. Use the following parameters for the planning run: Field Processing key Create purchase req. Another planned order will be created for the quantity of the sales order and due on the sales requirement date. In all. 207 . 10. However. Has the planning situation changed? Answer: As a result of the sales order. 8.

We will then enter planned independent requirements into demand management and verify them using the stock requirements list. Fwd consumption per. Assure it is setup for planning strategy “Planning at assembly” level. To assure proper planning we will maintain the material master. All rights reserved. Consumption mode “Backward Only ”and backward consumption period of 30 days. Have the planned orders been adjusted to the revised demand situation? Answer: Yes Task 2: Planning at assembly level: Requirements Strategy 70 Material R-B4##. 1. After the requirements have been entered. a) SAP ERP menu path: Logistics → Production → Master Data → Material Master → Material → Change → Immediately (MM02) . they will be verified and we will check consumption. make sure the entries are made per the table below: Field Strategy Group Consumption mode Bwd consumption per. Maintain the material master for component assembly R-B4##. Mixed MRP e) Select save Value 70 1 30 Leave blank 1 . plant 1000 is to be planned using strategy 70 (30 days backward consumption only). Continued on next page 208 © 2003 SAP AG.Unit 4: Demand Management in SAP ERP SCM240 12. Enter through any warning messages. and enter the following: Enter material R-B4## and select enter b) c) d) Choose the MRP 3 view and select enter Enter plant 1000 and select enter On the MRP 3 tab. 2004/Q3 .

Hint: This display can also be accessed from the standard menu path. a) b) From within the stock/requirements list: Environment → Total Reqmts Display The original planned independent requirement quantity is displayed. Display the consumed quantities using the total requirements display.SCM240 Lesson: Make to Stock Planning Strategies 2. Why are the planned independent requirement quantities not displaying the values entered in the previous step? Answer: R-B4## is set for planning strategy 70. But can be done at the students discretion. Starting with the current period. All rights reserved. a) Access the stock requirements list to review the current planning situation. That is not necessary at this point. 2004/Q3 © 2003 SAP AG. Save SAP ERP menu Path: Logistics → Production → Production Planning → Demand Management → Environment → Stock/Requirements List (MD04) b) c) d) 3. The planned independent requirements for this item are consumed by dependant requirements. There are dependant requirements for this material to be used in R-F2##. Projected total demand for R-B4##in plant 1000is 1200 pcs per month (for the next six months). 5. enter 1200 in each monthly period for the next six months. What is the requirements type of the planned independent requirements? Answer: The requirements type is VSFB. 4. Enter these as planned independent requirements a) SAP ERP menu Path: Logistics → Production → Production Planning → Demand Management → Planned Independent Requirements → Create (MD61) Enter material R-B4## at plant 1000. 209 . As well as the details of what has consumed this requirement. Logistics → Production → Production Planning → Demand Management → Evaluations → Display Total Reqmts Note: MRP should be run again to correctly plan the material based on the increased demand. 6.

Unit 4: Demand Management in SAP ERP SCM240 Lesson Summary You should now be able to: • Explain how Net Requirments planning differs from Planning with Final Assembly • Demonstrate how to plan at the sub assembly level • Explain the concepts of Consumption and Reduction • Identify several popular planning strategies and their characteristics. 2004/Q3 . All rights reserved. 210 © 2003 SAP AG.

. you have decided to only produce this product in response to actual customer demand.. You will use several planning strategies to minimize inventory and keep service levels high. Some have very predictable demand others have very erratic demand.. Review several planning strategies in the make-to-order (MTO) manner to see how SAP ERP will allow planners to model different approaches of this concept. In order to deal with this sporadic demand and ensure high levels of customer service. 211 . In addition some of your pump assemblies are common to several finished pump products and you want to reduce lead times and inventory. Lesson Objectives After completing this lesson. 2004/Q3 © 2003 SAP AG.SCM240 Lesson: Make to Order Planning Strategies Lesson: 175 Make to Order Planning Strategies Lesson Duration: 45 Minutes Lesson Overview Several of your products have limited demand and respectable lead times.. you will be able to: • • • • Explain how make to order works in SAP ERP Demonstrate how to plan at the sub assembly level while still maintaining make to order at the finished good level Identify several popular planning strategies and their characteristics Explain the difference between make to order and assembly to order Discuss the following techniques: • • • • • • Strategy 20 Strategy 50 Strategy 60 (demo) Strategy 74 (demo) Assemble to Order (81.. All rights reserved. 82. ) (demo) Individual collective flag Business Example As a production planner several of your pumps are very complex and expensive which prohibits you from keeping them from selling directly out of inventory.

the sales order is the only pegged requirement. 212 © 2003 SAP AG. This means that although planning occurs at the finished product or assembly level. the final assembly is triggered by a sales order. Stock cannot be swapped back and forth between sales orders. This direct reference to the sales order also remains in the production order. planning without final assembly is also possible. In addition to classic make-to-order production. 2004/Q3 . Figure 68: Strategy 20: Make-to-Order The net requirements calculation is carried out individually for every sales order.Unit 4: Demand Management in SAP ERP SCM240 Make-to-Order Figure 67: Production Based on Sales Orders When working with the strategies for make-to-order production. All rights reserved. The procurement elements. that is the planned orders are created with reference to the sales order and are managed in the individual customer segment.

two individual segments are created for the shaft for sales orders A and B. The indicator "1" for individual requirements means that the material is being specially manufactured or procured for a sales order. In the above example.SCM240 Lesson: Make to Order Planning Strategies Influencing MTO at the Component Level Figure 69: The individual/collective indicator in the material master record determines whether a component is procured for a special customer requirement in the individual segment. 2004/Q3 © 2003 SAP AG. use the "explosion control" field in the component’s item data (general data view). A special individual segment is created for each requirement. The indicator "2" for collective requirements means that the material is produced or procured for various requirements. 213 . If you want to control the material item individually for the respective BOM. All rights reserved. An individual requirement is only created if the higher-level material does not create a collective requirement. The setting in the BOM overrules the setting in the material master record. You can find these requirements in the net requirements segment. The indicator "blank" means that the component is to be planned in the same way as the higher-level assembly.

the system creates planned orders in the MRP run at the subassembly and component levels in case of a material shortage exists. Planned orders of type VP exist to drive dependant requirements and capacity requirements. However. To achieve short delivery times. the sales order appears in an individual customer planning segment in the stock/requirements list. All rights reserved. in which planning is executed separately for the sales 214 © 2003 SAP AG. In the MRP run. However. These planned orders can be converted into a production order or a purchase requisition. Note: These planned orders are created with an Order Type: VP. These planned orders cannot be converted into production orders. the system creates planned orders in the MRP run at the subassembly and component levels in case of a material shortage exists. the finished product is produced based on the sales order. certain assemblies should be produced or procured before the sales order for the finished product is received. such as order type VP.Unit 4: Demand Management in SAP ERP SCM240 Planning without Final Assembly Figure 70: Planning Without Final Assembly (50/52): With strategy 50 (planning without final assembly). Final assembly is triggered on the receipt of the sales order. These planned orders can be converted into a production order or a purchase requisition. With the strategy 50. 2004/Q3 . Planning that is independent of the sales order occurs using planned independent requirements for the finished product. Planned orders of this type cannot be changed or converted into an executable order such as a production order. the system creates planned orders for the finished product to cover these requirements.

the check of planned independent requirements at the finished product level. Otherwise. Figure 71: Planning Without Final Assembly (52) Note for this procedure that the lot-size procedure “lot-for-lot” is used. The quantity produced on the basis of a sales order is also posted to the make-to-stock inventory. This means that during requirements planning and creation of a sales order.SCM240 Lesson: Make to Order Planning Strategies order. the sales order is administered in the net requirements planning segment. With the strategy 52. All rights reserved. any existing make-to-stock inventory and other receipt elements can be taken into account in the net requirements planning segment. the assignment logic is not compatible with an availability check. You can only carry out the availability check for planned independent requirements. which could lead to excess planning or incorrect results in the availability check. 215 . You also need to make sure that neither rounding values/rounding profiles nor minimum or maximum lot sizes are maintained. 2004/Q3 © 2003 SAP AG. That is.

When processing the sales order. the availability check as a check against the planned independent requirements). you can check whether the planned independent requirements quantities cover the demand (that is. you must enter strategy 60. 2004/Q3 . you must enter the planning material as a reference and strategy 60. 216 © 2003 SAP AG.Unit 4: Demand Management in SAP ERP SCM240 Planning with a Planning Product Figure 72: Overview: Planning with a planning material The planning strategy "Planning with planning material" is particularly useful if you have several finished products with the same main assemblies. you define a planning material which contains the common assembly and its BOMs. All rights reserved. The planning run is carried out for the planning material which triggers the production and procurement of the planning material’s components. The consumption periods are calculated starting from the planned independent requirements of the planning material. The sales order for a finished product which refers to the planning material reduces the planned independent requirements of the planning material and simultaneously triggers final assembly. Here. In the material master records which refer to the planning material. the consumption mode and the consumption periods. In the material master record of the planning material.

Select MRP Run for product group PLNGRP. Otherwise. Enter. 5. which also contain a deviant example. plant 1000: From the current month +2 to the current month +4 each for 10 pieces. 9. 4. Create product group: PLNGRP. Look at the stock/requirements list. planning conversion factor 1. current month +2 24 pieces R-F127. You do not need to go into changes and effects on the assemblies here. R-F127. Material masters for R-F126. 7. planning material R-F130. plant 1000. MRP 3. strategy group 60. base unit: Pieces (PC).SCM240 Lesson: Make to Order Planning Strategies Demonstration: SAP R/3 Strategy 60 (Planning With Planning Material) Purpose To demonstrate Planning with Planning Material Strategy Note: Carry out this demonstration if the course participants are interested in this strategy and you have enough time. current month +4 8. 2004/Q3 © 2003 SAP AG. Multilevel planning run for product group PLNGRP. plant 1000. System Data System: Client: User ID: Password: Set up instructions: 1. planning plant 1000. current month + 3 5 pieces R-F128. Leave all blank except for R-F130 (VSEV requirements) Create customer requirements (KEVV): 3 pieces R-F126. 6. All rights reserved. Materials R-F126. 3. save. R-F130 all plant 1000. collective display for PLNGRP. consumption mode 2. Create planned independent requirements for R-F130. should suffice. R-F127. plant 1000. confirm. 2. R-F128. 217 . product group. explanation of the above mentioned graphics. Material master for R-F130. MRP3: Each with strategy group 60. R-F128. Transaction MC84 (this can be found under Production → SOP → Product Group → Create). Current stock/requirements list. consumption period forward/backward each 30 days.

11. Planning without Final Assembly at the Sub-Assembly Figure 73: Planning at Assembly Level w/o Final Assembly (74) (1) The strategy “Assembly planning without final assembly” (strategy 74) is a mixture of the strategies “assembly planning” (strategy 70) and “planning without final assembly” (strategy 50 or 52). All rights reserved. As opposed to the strategy 70 and as in the strategies 50 and 52. As in strategy 70. The planning run is carried out for the assembly and initially creates planned orders for the assembly’s planned independent requirements.Unit 4: Demand Management in SAP ERP SCM240 10. If necessary. The components are placed into stock till the planned order or the production order for the finished product is received. The production of the assembly is not triggered till the planned order or the production order for the finished product is received. The planned independent requirements are created at the assembly level. These cannot be converted into a production order nor can they be converted in repetitive manufacturing (order type VP). 2004/Q3 . the planned independent requirements for an assembly are regarded separately to the end product and independent of any lot size. You do not have to know the finished production for which the assembly is required. clean the data or do not continue to use the same materials. in strategy 74 also. Look at the stock/requirements list. The planned independent requirements and the 218 © 2003 SAP AG. the creation of the planned independent requirements does not trigger the production of the assemblies but rather the procurement of the components. Display the procurement elements and explain the consumption situation.

In the planning segment. dependent requirements and reservations in the net requirements segment or an individual customer segment result in planned orders that can be converted or that can be dispatched in repetitive manufacturing. the dependent requirements and reservations of the assembly and the accompanying planned orders of the assembly appear in an individual customer segment or in the individual customer planning segment. planned orders. 219 .SCM240 Lesson: Make to Order Planning Strategies planned orders for the assembly are in the planning segment. 2004/Q3 © 2003 SAP AG. The dependent requirements and reservations created as a result of the planned order or the production order consume the planned independent requirements of the assembly (as in the strategy 70). or production orders are created for the finished product. At this stage of planning. Conversion and procurement (assembly) are not possible until a planned order or a production order for the finished product is created. At this stage of planning. Production of the assembly is not triggered till receipt of the planned order or the production order for the finished product. the stock at the assembly level is not taken into account. The resulting dependent requirements or reservations for the assembly consume the planned independent requirements of the assembly. the planned order quantity of the VP planned order is reduced according to the new requirements situation. Depending on the strategy of the finished product and the individual/collective indicator of the assembly in the net segment. Sales orders. These planned orders can be converted into a production orders or a purchase requisition. stock at the assembly level is regarded as stock in the net segment or as sales order stock. In the first step. However at component levels below the assembly. The consumption mode and the consumption periods are calculated according to the reservation or the dependent requirements. You do this in demand management. you create the requirement quantities expected in the future for the assembly. This allows the production of the assembly. In the planning run. All rights reserved. the system creates planned orders in the planning run if a material shortage exists.

you must make the following settings in the material master record (“MRP” view): • • • The strategy group 74 (planning without final assembly at assembly level) for the assembly. Demonstration: Subassembly Planning Without Final Assembly (74) Purpose To learn about subassembly planning without final assembly System Data System: 220 © 2003 SAP AG. 2004/Q3 . backward consumption period. Individual/collective indicator = 1 (individual requirements only) or blank (individual and collective requirements) for the components not to be procured until receipt of the planned order or the production order for the finished product. All rights reserved. Individual/collective indicator = 2 (collective requirements only) for the components to be procured and stored before receipt of the planned or production order. Mixed MRP indicator = 3 (assembly planning without final assembly).Unit 4: Demand Management in SAP ERP SCM240 Figure 74: Planning at Assembly Level w/o Final Assembly (74) (4) If you want to use the “Planning without final assembly” strategy (74) for the assembly. and forward consumption period). Consumption parameters (consumption mode.

mixed MRP indicator 3 2. consumption mode 2. consumption interval backward and forward each 30 days. display the stock/requirements list for R-T3##. Demonstrate the consumption of the dependent requirements for R-F1## with the planned independent requirements for R-B1##. Execute multilevel requirements planning for R-B1##. 6. Create planned independent requirements: 200 pieces R-B1## for current month +4. 7. All rights reserved. R-T1##. R-B1##.SCM240 Lesson: Make to Order Planning Strategies Client: User ID: Password: Set up instructions: Materials R-F1##. → Ensure that strategy group 20 is entered for R-F1##. Display the stock/requirements lists for R-T1## and R-T2## and explain the changed situation. R-T3##. → Planned order (not convertible) in planning segment created. 3. For R-T2##. There should be no warehouse stock. R-T2##. No dependent requirement is created. Change the material master R-B1##: MRP 3: Strategy group 74. Create customer requirement for R-F1##: 50 pieces for 15th of the current month + 4. → Planned order created. Change material master R-T2##: Individual/collective indicator = blank. Also. the dependent requirements end up in the planning segment due to the ind/coll indicator = blank. Display stock/requirements list for R-B1##: A convertible planned order was created in the net planning segment for R-F1##. in Plant 1000 1. 221 . 2004/Q3 © 2003 SAP AG. Ask the participants why not: → MRP type VB (manual reorder point planning). 4. Execute multilevel requirements planning for R-F1##. Procurement of the component R-T1## is triggered using dependent requirements. 5.

creating the sales order triggers the creation of a production order. however. All rights reserved. It is not necessary to carry out a separate MRP run. In this case. it creates a network for engineer-to-order production. 2004/Q3 . The confirmation quantity depends on the available quantity of the components with the lowest confirmed quantity on the requirements date.Unit 4: Demand Management in SAP ERP SCM240 Assemble-to. the components of the finished product have already been manufactured. Dynamic processing enables you to execute partial deliveries. With strategy 82. It also determines a possible delivery date and costs the order. With strategy 81. The procurement elements are created when you create the sales order items.Order (ATO) Figure 75: Overview: Assembly Processing Assembly processing is a form of sales order processing. Order processing is carried out using the tools available in production control. the system creates a planned order for repetitive manufacturing and with strategy 83. 222 © 2003 SAP AG. Once you have created the sales order. The total confirmation date depends on the date of the components which are last to be available. In general. delivery is made in Sales and Distribution. the system checks the availability of the components (for the production order). the direct reference to the sales order is lost. when you create a sales orders. Assembly processing can either be carried out statistically (an assembly order per sales order item) or dynamically (several assembly orders per sales order item).

the production order has a rescheduling message. Adopt the generated total commitment date as the finish date. 2004/Q3 © 2003 SAP AG. Changes to the quantity or dates in the production order only affect the schedule lines of the sales order. distribution channel 10. → The system automatically creates an assembly order or rather due to the strategy 82. any order number. today + 6 weeks. the sales organization 1000. a production order. 223 . today + 10 weeks. This should still be relevant for planning. All rights reserved. division 00. Complete delivery. 12 pieces. 3. Material master R-F1##: Enter the strategy group 82 (MRP 3). Postpone the order finish date of the production order by one week→ the schedule line of the sales order is also postponed. Only the schedule line remains on the confirmed date.SCM240 Lesson: Make to Order Planning Strategies Demonstration: Assembly Processing Purpose To learn about assembly processing System Data System: Client: User ID: Password: Set up instructions: 1. which no longer has a rescheduling message. 4. 2. Change to the sales order quantity → new availability check: Complete delivery. each 10 pieces. 6. The sales order date is adjusted to suit the availability date of the production order. R-F1##. Create planned orders manually (MD11) for R-B1## and R-B4##. 5. indicator fix date not set? The sales order remains on the desired date in the transaction MD04. ship-to the party 1000. “fix date” set → in the transaction MD04. The component availability check is executed on the basis of this. Material master of the assembly R-B3## (I/C = blank): Checking group ZN (no check). Create sales order (order type TA) (VA01): Sold-to the party 1000. Set the scheduling of the production order to “backward” without a time.

2004/Q3 . All rights reserved.Unit 4: Demand Management in SAP ERP SCM240 224 © 2003 SAP AG.

you will be able to: • Demonstrate how to a produce in a pure make-to-order environment (strategy 20) • Demonstrate how to plan components and subassemblies while maintaining make-to-order at the finished product level. However. 225 . we will project with planned independent requirements. System Data System: Client: User ID: Password: CATT: Set up instructions: 2004/Q3 © 2003 SAP AG. The product will be produced as the customer requires it. These assemblies are expensive once produced. All rights reserved. The plan will serve to drive component requirements and capacity planning. however we will not assemble them until the actual dependant demand is received.SCM240 Lesson: Make to Order Planning Strategies 185 Exercise 7: Make to Order in SAP ERP Exercise Duration: Minutes Exercise Objectives After completing this exercise. the lead time to produce is not long. The demand can also be very erratic. • Generate a production plan for an assembly using strategy 50. Therefore we do not keep the finished product in inventory. We also have a number of assemblies that are commonly used throughout many finished products. Business Example Several of our products are complex and expensive. For these items.

Return to the stock requirements list to see if the planning situation has changed. Is there any inventory available? Can this inventory be used to satisfy sales order demand in the given scenario (strategy 20)? 5. To assure proper planning we will maintain the material master. Enter another sales order type OR for 15 pcs of material R-F5## to be delivered in three months. 6. Do this in another session. 7. Assure it is setup for make-to-order planning. The other components should be planned as “collective” or general stocking. Access the stock requirements list to review the current planning situation. Actual sales orders will be received. Do this in another session. Delivery schedules Create MRP list Value NETCH 1 . Run a single-item.Unit 4: Demand Management in SAP ERP SCM240 Task 1: Make-to-Order: requirements Strategy 20 For Material R-F5##. plant 1000 we will only begin the planning and execution process when actual customer demand is received. multi-level MRP run for R-F5## at plant 1000. Use the following parameters for the planning run: Field Processing key Create purchase req. All rights reserved. These sales order will drive planning and execution in their own “planning segments”. 2004/Q3 . ie: Planning and execution will be tied directly to the sales demand. One assembly R-B3## must also be tied directly to the sales order demand. 1. Maintain the material master for pumpR-F5## .Purchase Requisitions 3 . For this we will use strategy 20. 3.Schedule lines MRP List Continued on next page 226 © 2003 SAP AG. 2. 4. Create a sales order type OR for 50 pcs of material R-F5## to be delivered in two months to customer 1000 and ship-to 1000.

Return to the stock requirements list to see if the planning situation has changed. plant 1000 is to be planned using strategy 50 (30 days backward consumption only). We will then verify the planned independent requirements using the stock requirements list.Adapt Planning Data 2 . 2.SCM240 Lesson: Make to Order Planning Strategies Field Planning mode Scheduling Also plan unchanged components 8. Display the stock requirements list for assembly R-B3##. Refresh the S/R list and note the production order number. All rights reserved. Assure it is setup for planning strategy “Planning without final assembly”. Maintain the material master for pump R-F4##. The material will then be re-planned for accuracy.Lead time scheduling Select View the planned orders that were generated. Access the stock requirements list to review the current planning situation. Confirm production of the order. Finally an actual sales order then gets received that will consume the independent requirements. 10. To assure proper planning we will maintain the material master. convert the first planned order to a production order and release. Consumption mode “Backward Only ”and backward consumption period of 30 days. After the requirements have been entered. Task 2: Planning without final assembly: Requirements Strategy 50 Material R-F4##. Continued on next page 2004/Q3 © 2003 SAP AG. Value 1 . 1. 9. they will be verified and we will run MRP. From the Stock/Requirements lists for the R-F5## at plant 1000. 227 . 12. 11.

Unit 4: Demand Management in SAP ERP SCM240 3. Enter a sales order (type OR) for 10 pcs of material R-F4## to be delivered in two months for customer 1000 and ship-to 1000. Value NETCH 1 . 7. In a second session. Use the following parameters for the planning run: Field Processing Key Create Purchase Req.Purchase Requisitions 3 .Lead time Scheduling Select Continued on next page 228 © 2003 SAP AG. multi-level MRP run for R-F4## at plant 1000. What is the requirements type of the planned independent requirements? 4. Delivery Schedules Create MRP List Planning Mode Scheduling Also Planning Unchgd comp. What is the order type of these planned orders? What does this mean? 6. 8. All rights reserved.Schedule lines MRP List 1 . In what planning segment are the independent requirements and planned orders contained? 5. run a single-item.Adapt Planning Data 2 . 2004/Q3 . Return to the stock requirements list to see if the planning situation has changed.

display the consumed quantities using the total requirements display for your R-F4## at plant 1000. All rights reserved.SCM240 Lesson: Make to Order Planning Strategies 9. From the Stock/Requirements list. Return to the stock requirements list to see if the planning situation has changed. 229 . 10. 2004/Q3 © 2003 SAP AG.

Maintain the material master for pumpR-F5## . a) SAP ERP menu path: Logistics → Production → Master Data → Material Master → Material → Change → Immediately (MM02) . make sure the entries are made per the table below: Field Strategy group Consumption mode Bwd consumption per. Actual sales orders will be received. plant 1000 we will only begin the planning and execution process when actual customer demand is received. 2004/Q3 . Assure it is setup for make-to-order planning. Fwd consumption per. To assure proper planning we will maintain the material master. All rights reserved. One assembly R-B3## must also be tied directly to the sales order demand. These sales order will drive planning and execution in their own “planning segments”.Unit 4: Demand Management in SAP ERP SCM240 Solution 7: Make to Order in SAP ERP Task 1: Make-to-Order: requirements Strategy 20 For Material R-F5##. Value 20 blank blank blank Continued on next page 230 © 2003 SAP AG. For this we will use strategy 20. 1. ie: Planning and execution will be tied directly to the sales demand. and enter the following: Enter material R-F5## and select enter b) c) d) Choose the MRP 3 view and select enter Enter plant 1000 and select enter On the MRP 3 tab. The other components should be planned as “collective” or general stocking. e) Select save .

This inventory is not available for use in the make-to-order scenario.SCM240 Lesson: Make to Order Planning Strategies 2. SAP ERP menu Path: Logistics → Production → Production Planning → Demand Management → Environment → Stock/Requirements List (MD04) 4.deliv. Is there any inventory available? Can this inventory be used to satisfy sales order demand in the given scenario (strategy 20)? Answer: Inventory is available and displayed on the top line (general stock).. All rights reserved. Create a sales order type OR for 50 pcs of material R-F5## to be delivered in two months to customer 1000 and ship-to 1000. a) Access the stock requirements list to review the current planning situation. to confirm any warnings regarding the billing date and 3. It would have to be transferred to sales order stock to be available to satisfy the demand.date Material Order quantity d) Select Enter Save. a) b) System → Create session SAP ERP menu path: Logistics → Sales and Distribution → Sales → Order → Create (VA01). Order Type Sales Organization Distribution Channel Division c) Enter the data per the table below: Field Sold-to party Ship-to party PO Number Req. Continued on next page 2004/Q3 © 2003 SAP AG. Value 1000 1000 PO## two months from today R-F5## 50 OR 1000 10 00 . On the initial screen enter data from the table below and select Enter. 231 .

Run a single-item. to confirm any warnings regarding the Save. On the initial screen enter data from the table below and select Order Type Sales Organization Distribution Channel Division c) Enter the data per the table below: Field Sold-to party Ship-to party PO Number Req. All rights reserved. Return to the stock requirements list to see if the planning situation has changed. Do this in another session. 2004/Q3 . 7.deliv. Do this in another session. a) b) c) Go to your other session that should be open. a) b) System → Create session SAP ERP menu path: Logistics → Sales and Distribution → Sales → Order → Create (VA01)..Unit 4: Demand Management in SAP ERP SCM240 5. Enter another sales order type OR for 15 pcs of material R-F5## to be delivered in three months. multi-level MRP run for R-F5## at plant 1000. Refresh the stock/requirements situation by selecting Refresh The sales order should be displayed in it’s own planning segment. Use the following parameters for the planning run: Continued on next page 232 © 2003 SAP AG.date Material Order quantity d) Select Value 1000 1000 PO## three months from today R-F5## 15 OR 1000 10 00 Continue (enter). billing date and 6.

Multi-Level Planning (MD02) Select Select Enter twice to execute the run.” Continued on next page 2004/Q3 © 2003 SAP AG. The assembly is also planned in individual segments referring to the sales requirement.Schedule lines MRP List 1 . a) b) c) d) e) 9. From within the stock requirements list. 233 . Select change Select the “Assignment” Tab and the sales order that the planned order is tied to is displayed.SCM240 Lesson: Make to Order Planning Strategies Field Processing key Create purchase req.Purchase Requisitions 3 . Select a) b) to return to the list.Lead time scheduling Select SAP ERP menu path: Logistics → Production → MRP → Planning → Single-Item. Value NETCH 1 . Display the stock requirements list for assembly R-B3##. This is due to the individual/collective indicator being set to “1 or blank. Back twice to return to the main menu. Go to your other session that should be open.Adapt Planning Data 2 . Delivery schedules Create MRP list Planning mode Scheduling Also plan unchanged components a) b) c) 8. All rights reserved. Refresh the stock/requirements situation by selecting Double click on a planned order in the sales order planning segment. enter R-B3## in the material field and enter . View the planned orders that were generated. Go to your other session that should be open.

Unit 4: Demand Management in SAP ERP SCM240 10. Note: The inventory contained in the individual segment cannot be used for any other demands. All rights reserved. Refresh the S/R list and note the production order number. a) b) c) Go to your other session that should be open. Enter the production order number and select Accept the default values and save. a) b) c) Return to the final assembly material by entering R-F5## in the material field. a) b) c) Logistics → Production → Production Control → Confirmation → Enter → For Order (CO15). Refresh the stock/requirements situation by selecting The inventory received by confirming the production order is only available in the individual planning segment. Select Select d) to convert to a production order. Double click on the planned order for the customer demand. Production Order: _______________________ 11. convert the first planned order to a production order and release. Return to the stock requirements list to see if the planning situation has changed. Save and note the production order number. Continued on next page 234 © 2003 SAP AG. Confirm production of the order. 12. . to release the order. From the Stock/Requirements lists for the R-F5## at plant 1000. 2004/Q3 .

The material will then be re-planned for accuracy. All rights reserved. Assure it is setup for planning strategy “Planning without final assembly”. To assure proper planning we will maintain the material master. What is the requirements type of the planned independent requirements? Answer: The requirements type is VSE. and enter the following: Enter material R-F4## and select enter b) c) d) Choose the MRP 3 view and select enter Enter plant 1000 and select enter On the MRP 3 tab. Consumption mode “Backward Only ”and backward consumption period of 30 days. a) SAP ERP menu Path: Logistics → Production → Production Planning → Demand Management → Environment → Stock/Requirements List (MD04) 3. We will then verify the planned independent requirements using the stock requirements list. plant 1000 is to be planned using strategy 50 (30 days backward consumption only). a) SAP ERP menu path: Logistics → Production → Master Data → Material Master → Material → Change → Immediately (MM02) . Fwd consumption per. Finally an actual sales order then gets received that will consume the independent requirements. 2. Value 50 1 30 Leave blank Access the stock requirements list to review the current planning situation. Maintain the material master for pump R-F4##. make sure entries are made per the below table: Field Strategy Group Consumption mode Bwd consumption per. 235 .SCM240 Lesson: Make to Order Planning Strategies Task 2: Planning without final assembly: Requirements Strategy 50 Material R-F4##. Continued on next page 2004/Q3 © 2003 SAP AG. 1. they will be verified and we will run MRP. After the requirements have been entered.

date Material Order quantity d) Select date and Value 1000 1000 PO## two months from today R-F4## 10 OR 1000 10 00 Enter. They cannot be converted or changed. Enter a sales order (type OR) for 10 pcs of material R-F4## to be delivered in two months for customer 1000 and ship-to 1000. What is the order type of these planned orders? What does this mean? Answer: The order type is displayed the planned order is double clicked. 5. to confirm if any warnings regarding the billing Save. These are order type VP.del. All rights reserved. Orders of type VP cannot be executed. Continued on next page 236 © 2003 SAP AG. On the initial screen enter data from the table below and select Order Type Sales Organization Distribution Channel Division c) Enter the data per the table below: Field Sold-to party Ship-to party PO Number Req. In what planning segment are the independent requirements and planned orders contained? Answer: Independent requirements and planned orders are contained in the segment planning without assembly. 6. They exist strictly to drive dependant demand and capacity requirements. a) b) System → Create session SAP ERP menu path: Logistics → Sales and Distribution → Sales → Order → Create (VA01).Unit 4: Demand Management in SAP ERP SCM240 4. 2004/Q3 .

SCM240 Lesson: Make to Order Planning Strategies 7. The planned independent requirements have been consumed. run a single-item.Schedule lines MRP List 1 . multi-level MRP run for R-F4## at plant 1000. Refresh the stock/requirements situation by selecting Refresh The planned order has been generated in the sales order planning segment. 237 . Continued on next page 2004/Q3 © 2003 SAP AG. a) b) c) d) Go to your other session that should be open. a) b) c) d) Go to your other session that should be open. This new planned order is a type KD (make-to-order) and can be executed to. a) b) c) Value NETCH 1 .Adapt Planning Data 2 . In a second session. Back twice to return to the main menu 9. Return to the stock requirements list to see if the planning situation has changed. Refresh the stock/requirements situation by selecting Refresh The sales order should be displayed in it’s own planning segment. Return to the stock requirements list to see if the planning situation has changed. All rights reserved. Multi-Level Planning (MD02) Select Select Enter twice to execute the run.Lead time Scheduling Select SAP ERP menu path: Logistics → Production → MRP → Planning → Single-Item. 8.Purchase Requisitions 3 . Use the following parameters for the planning run: Field Processing Key Create Purchase Req. Delivery Schedules Create MRP List Planning Mode Scheduling Also Planning Unchgd comp.

a) b) From within the stock/requirements list: Environment → Total Reqmts display The original planned independent requirement quantity is displayed. display the consumed quantities using the total requirements display for your R-F4## at plant 1000. Hint: This display can also be accessed from the standard menu path.Unit 4: Demand Management in SAP ERP SCM240 10. That is not necessary at this point. As well as the details of what has consumed this requirement. But can be done at the students discretion. 238 © 2003 SAP AG. 2004/Q3 . Logistics → Production → Production Planning → Demand Management → Evaluations → Display Total Reqmts Note: MRP should be run again to correctly plan the material based on the increased demand. From the Stock/Requirements list. All rights reserved.

SCM240 Lesson: Make to Order Planning Strategies Lesson Summary You should now be able to: • Explain how make to order works in SAP ERP • Demonstrate how to plan at the sub assembly level while still maintaining make to order at the finished good level • Identify several popular planning strategies and their characteristics • Explain the difference between make to order and assembly to order 2004/Q3 © 2003 SAP AG. All rights reserved. 239 .

Plant 1000 1. 63 (Create. consumption mode 2. change. Lesson Objectives After completing this lesson. you will be able to: • Customize MRP settings Hint: Setting the Requirement Parameters: In transactions MD61. While planning for the company products. This function is not advisable if using strategies. R-B3##. Business Example The Precision Pump company constitutes a number of independent business units for manufacturing pumps. you can preset the requirements parameters.Unit 4: Demand Management in SAP ERP SCM240 Lesson: 199 Settings and Customizing Lesson Duration: 50 Minutes Lesson Overview In this lesson. 62. All rights reserved. Change material master R-F1##: MRP 3: Strategy group 50. display planned independent requirements). you will learn about customizing settings for MRP. 2004/Q3 . and then only for displaying and changing. R-B1##. you need to adjust MRP settings and customize strategies for requirements planning. 240 © 2003 SAP AG. and consumption period backward and forward each 30 days. Demonstration: Planning with Final Assembly (Strategy 50/52) Purpose To learn about planning with final assembly System Data System: Client: User ID: Password: Set up instructions: Materials R-F1##.

All rights reserved. Create planned independent requirements: 120 pieces R-F1## for current month +2. → Planned independent requirements are displayed in a separate planning segment.SCM240 Lesson: Settings and Customizing 2. Create warehouse stock 10 pieces for R-F1##: Goods receipt → Other → Without Purchase order (movement type 501. 2004/Q3 © 2003 SAP AG. existing warehouse stock is taken into account. storage location 0002). and another for 16 pieces for the same date. → Display customer requirements in collective segment and consumption with planned independent requirements. convertible planned order for 15+16-10=21 pieces in the collective segment taking into account the warehouse stock. Create additional customer requirements. In addition. 5. 6. 241 . → R-B1##: Planned orders in the collective segment adjusted to fit the new situation as far as dates are concerned. Existing warehouse stock is not taken into account. Change the material master R-F1##: Enter the strategy group 52. → R-B3##: As R-F1##. Execute multilevel requirements planning for R-F1##. → R-B3##: Dependent requirement and non-convertible planned order in planning segment (I/C=blank). → R-B1##: Dependent requirements and convertible planned order in collective segment (I/C=2). Execute multilevel requirements planning for R-F1##. Create customer requirement: 11 pieces R-F1## for the fourth of the current month + 2 and another for 13 pieces for the same date. consumption with planned independent requirements. This cannot be converted to a production order. → Display of customer requirements in individual customer segment. see conversion indicator in planned order. 3. planned order for 120 -11 -13 -15 -16 = 65 pieces reduced in planning segment. now with a new strategy: 15 pieces R-F1## for the sixth of the current month + 2. 4. 7. → R-F1##: VP planned order is created. 8. For details. → R-F1##: Convertible customer planned orders for 11 and 13 pieces in individual customer segments.

Unit 4: Demand Management in SAP ERP SCM240 MRP Settings and Strategy Customizing Figure 76: Customizing: Planned Indep. a requirements type from sales order management. or by effectively combining both requirements types. All rights reserved. Reqmts Management The planning strategy is an effective procedure for planning a material. 2004/Q3 . You define the planning strategy using a requirements type from planned independent requirements management. The strategy group enables you to combine several planning strategies. Figure 77: Strategy Groups and Planning Strategies 242 © 2003 SAP AG.

such as a sales order. You can also determine the customer requirements type from the item type of the sales order if no strategy group has been assigned to the material. 2004/Q3 © 2003 SAP AG. a planning strategy groups two requirements types . the system uses the customer requirements type or planned independent requirements type defined in the main strategy of the strategy group assigned to the material. you can access the customer requirements type in the sales order item on the “procurement” tab. 243 .SCM240 Lesson: Settings and Customizing You can create the strategy groups in Customizing. Figure 78: Requirement Types and Classes Generally. that is. You can determine the requirements types that can be used for a material in the alternative strategies. specify the work step “Determination of Requirements Type Using Transaction”. A strategy group can contain a main strategy and up to seven alternative strategies. For example in Customizing for SD. in the work step “Defining Strategy Groups”. You can do this provided that the requirements type is not defined by user parameters or manual entry when creating the planned independent requirements or customer requirements.for planned independent requirements and for customer requirements. In a sales order. You can also create the strategies in the Customizing for Demand Management. When you create the customer requirements or the planned independent requirements. All rights reserved. You assign the strategy group to the material in the material master record (MRP view) or through the MRP group.

and Plant System Data System: Client: User ID: Password: Set up instructions: 1. Therefore. In the requirements class. MRP 3: Display the settings for consumption. such as in the settlement profile for settling a requirements class. whether the requirement is relevant to MRP (“No MRP” field). and Plant Purpose To learn about MRP settings in material master. 3. The requirements class controls requirements-relevant functions for sales orders in logistics. 2. MRP Group. the requirements class represents a kind of “values list” for the settings of the requirements type. The exact type of assembly processing is defined using the customer requirements type of the corresponding sales order. you define the type of availability check. Display the plant parameters in Customizing: 244 © 2003 SAP AG. The same settings are also possible in the MRP group. This can also be entered in the plant. Demonstration: MRP Settings in the Material Master. MRP Group. and which type of consumption is to be executed (“Assignment indicator” field). In the requirements class.Unit 4: Demand Management in SAP ERP SCM240 The requirements type is allocated to exactly one requirements class. This means that any changes to the requirements type are made through the corresponding requirements class. You also save specifications used in cost accounting. 2004/Q3 . The definition of the requirements class is made in the Customizing for Demand Management for planned independent requirements classes and in the Customizing for SD for customer requirements classes. Display the MRP group 0031 in Customizing: Consumption/adjustment: You can set up consumption and adjustment in the MRP group. you control how the customer requirements should be settled against the planned independent requirements. Display the material master R-F1##: MRP 1: Explain the MRP group field. Display the planning horizon. All rights reserved.

SCM240 Lesson: Settings and Customizing Display the planning horizon Demonstration: Customizing Planned Independent Requirements Management Purpose To learn about customizing PIR management System Data System: Client: User ID: Password: Set up instructions: 1. Customizing: Production → Production Planning → Demand Management → Planned Independent Requirements → Planning Strategy → Define Strategy 3.. Strategy:The strategy is defined by entering a planned independent requirement type and a customer requirement type. Requirement types: 2004/Q3 © 2003 SAP AG. All rights reserved... Strategy group:Definition of main and secondary strategy Customizing: Production → Production Planning → Demand Management → Planned Independent Requirements → Planning Strategy → Define Strategy Group 4..... 245 ... 2. Display and explain the following fields and functions in the Customizing for Demand Management and Sales and Distribution: Customizing: Production → Production Planning → Demand Management → Planned Independent Requirements → .. Customizing: Sales and Distribution → Basic Functions → Availability Check and Transfer of Requirements → Transfer of Requirements → ..

Requirements classes: Planned independent requirements classes: 4. If the MRP group is not defined. Changes to a requirements type occur using the corresponding requirements class.. 3. Message output for invalid requirements type: Customizing: Production → Production Planning → Demand Management → Planned Independent Requirements → Requirements Types/Requirements Classes → Message Output for Invalid Requirements Type The check occurs against the requirements types defined in main strategy and secondary strategies assigned in respective strategy group. The way in which a requirements type works is determined by assigning a requirements class.. 2004/Q3 .. If the strategy group in the material master is not maintained.Unit 4: Demand Management in SAP ERP SCM240 Strategy for determining the requirements type (from documentation) 1.. 246 © 2003 SAP AG. If this is not possible. the system declares that the transaction is not relevant for the availability check and the transfer of requirements...Define Requirements Types 5.Requirements Types/Requirements Classes → Define Requirements Types and Allocate Requirements Class Customer requirements type: . the system determines it using the MRP group. 6. Customizing: Sales and Distribution → Basic Functions → Availability Check and Transfer of Requirements → Transfer of Requirements → Determination of Requirement Types Using Transaction 5.. For the customer requirement type: If the system does not find a requirement type here... the system assumes a special rule and tries to locate a requirement type with the aid of the item category and the MRP type. If the last attempt fails. the system makes a final attempt to find a requirements type using only the item category. the system uses the material type while accessing the corresponding control tables.. 2. Independent requirements type: . According to Martin Preiss... this is no longer relevant as it is a relic from the transition of R/2 to R/3. Changes to a requirements type occur using the corresponding requirements class. the system tries to find a requirements type using the strategy group from the material master. All rights reserved. First.

. 247 . dependent requirement. reservations) with which consumption occurs... Period of adjustment (per MRP group): Customizing: Production → Material Requirements Planning → MRP Groups → Carry Out Overall Maintenance of MRP Groups or Customizing: Production → Production Planning → Demand Management → Planned Independent Requirements → Maintain consumption mode and period of adjustment 8.. All rights reserved...... Customizing: Production → Production Planning → Demand Management → Planned Independent Requirements → Default Values and Presettings → Define default values for consumption type per requirements class 7. Consumption mode.SCM240 Lesson: Settings and Customizing . consumption period: In material master (MRP 3) or for each MRP group: Customizing: Production → Material Requirements Planning → MRP Groups → Carry Out Overall Maintenance of MRP Groups or Customizing: Production → Production Planning → Demand Management → Planned Independent Requirements → Maintain consumption mode and period of adjustment Default values for consumption type for each requirements class: Determination of concrete requirements (customer requirement.Define Requirements Classes 6.. Reorganization interval (per plant): Customizing: Production → Production Planning → Demand Management → Planned Independent Requirements → Define the reorganization interval 2004/Q3 © 2003 SAP AG.Requirements Types/Requirements Classes → Maintain Requirements Classes Customer requirements class: .

Unit 4: Demand Management in SAP ERP SCM240 Facilitated Discussion Discussion Questions Use the following questions to engage the participants in the discussion. Discuss the various requirements types and classes. All rights reserved. 2004/Q3 . 248 © 2003 SAP AG. Feel free to use your own additional questions.

249 .SCM240 Lesson: Settings and Customizing Lesson Summary You should now be able to: • Customize MRP settings 2004/Q3 © 2003 SAP AG. All rights reserved.

• Demonstrate various functions in Demand Management • Explain how make to stock and make to order will be represented in SAP ERP • Explain how Net Requirments planning differs from Planning with Final Assembly • Demonstrate how to plan at the sub assembly level • Explain the concepts of Consumption and Reduction • Identify several popular planning strategies and their characteristics.Unit Summary SCM240 Unit Summary You should now be able to: • Explain where Demand Management is in the flow of the supply chain planning process. 2004/Q3 . All rights reserved. • Explain how make to order works in SAP ERP • Demonstrate how to plan at the sub assembly level while still maintaining make to order at the finished good level • Identify several popular planning strategies and their characteristics • Explain the difference between make to order and assembly to order • Customize MRP settings 250 © 2003 SAP AG.

4.SCM240 Test Your Knowledge 205 Test Your Knowledge 1. □ □ 3. What are two benefits of using customer independent requirements? 5. In the make to stock environment. True False In the make to order environment what event must take place before procurement may be started? 2004/Q3 © 2003 SAP AG. 251 . Determine whether this statement is true or false. How does Demand Management interact with the planning tools? 2. □ □ 6. All rights reserved. Determine whether this statement is true or false. procurement can be executed prior to the actual sales demand being reveived. There is only one version of planned independent requirements. True False Explain the difference between Planned Independent Requirements and Customer Independent requirements.

Determine whether this statement is true or false. Determine whether this statement is true or false. □ □ True False 10. but production is always used to full capacity. 2004/Q3 . □ □ 8. True False Explain the term “consumption” from the standpoint of Demand Management. With planning strategy 70 . Determine whether this statement is true or false. 12. the final assembly can not be completed until the receipt of a sales order. If demand fluctuates. If you designate backward/forward consumption with a backward period of 30 days and forward period of 20 days. All rights reserved. what planning strategy makes most sense? 11.Test Your Knowledge SCM240 7. MTS planning strategies 10 and 11 do not consider customer orders so they are not displayed on the stock requirements list. 9. Planning at Assembly Level. With MTS strategy 40 (Planning with final assembly) . there is consumption of planned independent requirements by dependent requirements. Explain. the system will consume past requirements for a period of 30 calendar days before consuming any future requirements. □ □ True False 252 © 2003 SAP AG.

SCM240 Test Your Knowledge 13. The main planning stategy will indicate the “default” requirement type when entering independent requirements Strategy groups are only necessary for the materials for which independent demand will be placed 2004/Q3 © 2003 SAP AG. □ □ □ □ A B C D Strategy groups can contain up to seven main planning strategies. Choose the true statement (s) Choose the correct answer(s). . This material master field indicates whether or not a component will be planned collectively or with direct pegging to a requirement. what triggers the production of the sub-assemblies and components? 14. What is the main difference between “assemble-to-order” planning strategies and “make-to-order” planning strategies? 17. 16. While customizing MRP settings. you assign the strategy group to the material in the material master record or through the Fill in the blanks to complete the sentence. With the MTO strategy planning without final assembly. 253 . 18. What is the “stocking level”? 15. All rights reserved. A strategy group will contain one main planning strategy.

The configuration of the planning strategy is made up a a requirements type for independent requirement and a requirements type for Fill in the blanks to complete the sentence. 2004/Q3 .Test Your Knowledge SCM240 19. The configuration of the requirements types is the assignment of a Fill in the blanks to complete the sentence. All rights reserved. 20. 254 © 2003 SAP AG.

2004/Q3 © 2003 SAP AG. 4. Answer: False Multiple versions may be maintained. There is only one version of planned independent requirements. 2. MTS planning strategies 10 and 11 do not consider customer orders so they are not displayed on the stock requirements list. Answer: True True. Answer: False They can be displayed for information only. procurement can be executed prior to the actual sales demand being reveived. 7. The planning run treats Customer Independent Requirements exactly as it would a true sales order.SCM240 Test Your Knowledge 209 Answers 1. In the make to order environment what event must take place before procurement may be started? Answer: Actual sales demand must be entered. In the make to stock environment. How does Demand Management interact with the planning tools? Answer: Demand management determines what quantities should be considered as demand. 5. Explain the difference between Planned Independent Requirements and Customer Independent requirements. All rights reserved. 2) They could be used to model customer demand if the SD module is not implemented. What are two benefits of using customer independent requirements? Answer: 1) They are very efficient for testing. Answer: The difference is how they are treated in the planning run. procurement may take placed simply based on planned independent requirements. 6. Planned independent requirements are projections (forecast). 3. 255 . Although usually only one is active.

Answer: This is the settling of customer orders against planned independent requirements. The customer orders “consume” the PIR’s 9. resulting in dependant req’t and planned orders for the sub-assemblies and components. 2004/Q3 . what planning strategy makes most sense? Answer: Strategy 10 . Explain. With planning strategy 70 . 13. the BOM is exploded resulting in dependent requirements for the assembly. there is consumption of planned independent requirements by dependent requirements.Test Your Knowledge SCM240 8. 10. With MTS strategy 40 (Planning with final assembly) . All rights reserved. what triggers the production of the sub-assemblies and components? Answer: MRP is carried out for the planned independent requirements of the final assembly. 12. If demand fluctuates. execution may take place prior to an actual sales order being taken. When the sales order is received for the finished product. 256 © 2003 SAP AG. Answer: False The consumption period is in working days. With the MTO strategy planning without final assembly. the system will consume past requirements for a period of 30 calendar days before consuming any future requirements.Make to stock 11. the final assembly can not be completed until the receipt of a sales order. Explain the term “consumption” from the standpoint of Demand Management. Answer: PIR are entered for the assembly. Answer: False In Planning with final assembly. If you designate backward/forward consumption with a backward period of 30 days and forward period of 20 days. Planning at Assembly Level. but production is always used to full capacity. These dependent requirements are settled against the PIR for the assembly. triggering production.

20. D B. 17. All rights reserved. There may be seven sub strategies. 2004/Q3 © 2003 SAP AG. What is the “stocking level”? Answer: The level up until which the material is produced before the sales order is received. which are then converted to production orders. Choose the true statement (s) Answer: B. production orders are created automatically when sales orders are received. Answer: The individual / collective indicator. With MTO . 15. the MRP process must be carried out to generate planned orders. 16. While customizing MRP settings. The configuration of the requirements types is the assignment of a requirements class. 257 . Answer: Customer requirements. This material master field indicates whether or not a component will be planned collectively or with direct pegging to a requirement. you assign the strategy group to the material in the material master record or through the MRP group. Answer: MRP group 18.SCM240 Test Your Knowledge 14. 19. C. Answer: requirements class. What is the main difference between “assemble-to-order” planning strategies and “make-to-order” planning strategies? Answer: With ATO . The configuration of the planning strategy is made up a a requirements type for independent requirement and a requirements type for Customer requirements.C and D are all true.

All rights reserved. 2004/Q3 .Unit 4: Demand Management in SAP ERP SCM240 258 © 2003 SAP AG.

.........................265 2004/Q3 © 2003 SAP AG... 259 .....Unit 5 213 Master Production Scheduling Unit Overview This unit will introduce you to the concept of MPS from a business process stand point and how various tools in SAP ERP will be used to support the MPS process in supply chain planning...............264 Exercise 8: Master production scheduling (MPS) and material requirements planning (MRP)............. All rights reserved.......... Unit Contents Lesson: Master Production Scheduling ...... you will be able to: • • Explain how master production scheduling will fit into the production planning process Demonstrate how to execute and MPS planning run............... Unit Objectives After completing this unit..................261 Demonstration: Executing and MPS run .........260 Demonstration: Defining Master Scheduling Items ......................

This is done before the dependent assemblies and purchased parts are planned and procured. you will learn about master production scheduling and its relationship with MRP in the overall production planning process. To ensure proper customer service. ] Business Example Several of your products sell direct from the distribution centers. the master production schedule is initially defined on the level of this critical or important material. these materials need to be planned carefully. This demand must explode back to the production facility where there are several work centers that are highly utilized. you will be able to: • • Explain how master production scheduling will fit into the production planning process Demonstrate how to execute and MPS planning run. This helps avoid any disruption arising during production and procurement of purchased parts. This means that changes made to these critical parts are not copied to the dependent parts. only plan the finished pump production so that capacity planning may be done on those resources that are overloaded. [Enter a description of what the instructor should discuss with the participants about the context of the lesson. Therefore. 260 © 2003 SAP AG. For these materials. All rights reserved. 2004/Q3 .Unit 5: Master Production Scheduling SCM240 Lesson: 214 Master Production Scheduling Lesson Duration: 25 Minutes Lesson Overview In this lesson. An Overview to MPS Planning Master Production Scheduling (MPS) enables you to plan materials that influence a company’s profits or use critical resources. Lesson Objectives After completing this lesson.

MPS items. 261 . All rights reserved. but planning is not executed for these items unless they become MPS items. The MPS items are not planned along with the MRP run to ensure that you can plan these materials independently. provided that you have entered a corresponding MRP type per plant or per MRP area in the “MRP 1” view of the material master.SCM240 Lesson: Master Production Scheduling Figure 79: Master Production Scheduling and Material Requirements Planning (1) You plan the master schedule items. You must define the MRP procedure “M”. You can specify finished products or assemblies for MPS items. Demonstration: Defining Master Scheduling Items Purpose To explain the process of master scheduling System Data System: Client: User ID: 2004/Q3 © 2003 SAP AG. Dependent requirements are created for the next low-level code. and the non-master schedule items in separate planning runs. MPS is executed with the same logic as MRP but without planning materials that are not labeled as MPS items. in this MRP type in Customizing for MRP types (Customizing activity “Check MRP types”). The results of MPS are not passed to dependent parts till the master plan for the critical parts has been processed and fine-tuned. which is MPS item procedure. The MPS run only plans the MPS items.

the material is a part of the master production scheduling run rather than that of the normal MRP run. Therefore. 2. Enter a planning time fence of 10 days. Now. firming the master production schedule is important in master production scheduling. All rights reserved. enter the MRP type M1 with the MRP procedure “M”. MPS Planning Process Firming Master schedule items have to be planned with increased attention and the corresponding capacity load may have to be adjusted.Unit 5: Master Production Scheduling SCM240 Password: Set up instructions: 1. 2004/Q3 . Display the planning file entry for material R-F2##: The MPS item indicator is set. Change the material master for material R-F2## plant 1000: In the MRP 1 view. Figure 80: Master Production Scheduling and Material Requirements Planning (2) There are two steps in the total MPS run: 262 © 2003 SAP AG. which is defined in the Customizing of the MRP type. Save.

E1. you can manually firm or unfirm planned orders. 263 . 2004/Q3 © 2003 SAP AG. Capacity leveling is possible if lead-time scheduling is performed during the MPS run. Therefore.SCM240 Lesson: Master Production Scheduling MPS plans the MPS items on the basis of the requirements that exist for these parts. You can combine both steps by setting the indicator “Process MRP materials” in the initial screen. The second is capacity leveling. Figure 81: Firming in Long-Term Planning With the help of the firming period. MRP plans the other assemblies and components in the BOM structure. lies one day before the end of the firming period. the order finish date of the planned order. procurement proposals are not automatically changed during the MRP run. The MPS run generates planned orders for the MPS items and the corresponding dependent requirements on the BOM level below. You can define the firming period using the planning time fence or a manual firming date. you can protect the MPS schedule for MPS items from being automatically changed. Within the firming period that is defined individually for each material. Lead time scheduling will be discussed in another lesson. This makes planning easy. All rights reserved. The system treats it as firmed and does not automatically reschedule it. You should define the firming period with reference to the total lead time of the material. In the above example. the master production schedule for the components is stabilized. such as planned independent requirements. In addition.

Demonstrate the exercises.Unit 5: Master Production Scheduling SCM240 The system draws your attention to any possible changes to the MPS in the form of an exception message in the MRP list. It is controlled by the configuration of the MRP type of a material. Demonstration: Executing and MPS run Purpose System Data System: Client: User ID: Password: Set up instructions: 1. 2004/Q3 . Note: Firming or the planning time fence is not limited to MPS. 264 © 2003 SAP AG. It is up to the MRP controller to process these changes. All rights reserved.

including pump R-F2## use critical resources. evaluate capacity. You do this in order to review the plan results. you will be able to: • Explain the relationship between Master Production Scheduling (MPS) and Material Requirements Planning (MRP) Business Example Some finished products. System Data System: Client: User ID: Password: Set up instructions: Prior to the students performing this exercise. you do not want to waste time and energy planning the lower level components as the requirements dates are likely to change. Schedule Lines Create MRP list Planning mode Scheduling Value NETCH 1 3 1 3 2 2004/Q3 © 2003 SAP AG. 265 .SCM240 Lesson: Master Production Scheduling 219 Exercise 8: Master production scheduling (MPS) and material requirements planning (MRP) Exercise Duration: 25 Minutes Exercise Objectives After completing this exercise. you should define these as master production items and plan these separately. All rights reserved. Field Processing key Create Purchase req. While doing this. and make any necessary changes. the instructor will need to run a Plant wide MRP run. Therefore.

In addition you promised the production manager that you would freeze the schedule for two weeks. What affect will the Fixing Type 1 have on the planning run? 5. Enter the following demand. What affect did the changes have. we will create some demand in the short term. 2004/Q3 . in weekly buckets starting from the 2nd period. Set the material R-F2## at plant 1000. Period Amount 2.Unit 5: Master Production Scheduling SCM240 Task 1: Setup Master Production Scheduling in SAP ERP Demand on your pump R-F2## has been erratic and capacity to manufacture the pump is limited. To better understand the MPS functionality. 4. Which of the following indicators are set? MPS Indicator ____ NChge plng ____ NChgePHor. 1. to an MPS item. fixing type 1. Due to this situation. Check the planning file. All rights reserved. Week 2 20 Week 3 10 Week 4 10 Week 5 10 Week 6 10 From the Stock/Requirements list change material R-F2## in plant 1000 to a master schedule item. execute a planning run and review the results and make changes as necessary. and why? 3. Insert a Planning time fence of 10 working days. you want to look at the results of the planning run prior to exploding the rest of the Bill of Material. into your active version of demand management for R-F2## at plant 1000. ____ Continued on next page 266 © 2003 SAP AG. as a planner.

SCM240

Lesson: Master Production Scheduling

Task 2: Executing an MPS processes in SAP ERP
Now that you have set your material R-F2## to an MPS item and have indicated the need for using a planning time fence. Execute a Single-item, Single-level MPS run. 1. From the Stock/Requirements list execute single-item, multi-level planning for the material R-F2## in the plant 1000 (MD02). Is this possible? _____________ Execute single-item, single-level planning for master schedule items (MD42) for the material R-F2## in the plant 1000 from the menu of master production scheduling. Use the following parameters Field Processing key Create purchase req. Delivery Schedules Create MRP list Planning mode Scheduling Value NETCH 1 3 1 1 2

2.

Task 3: Evaluate the MPS run results
Now that you have executed an MPS run for you product R-F2## at plant 1000, you must review the plan results. Check the capacity situation of the resources involved. If you have sufficient capacity, reschedule the items inside the fence using simulative MRP to make sure all components will be available as well. 1. Now that your MPS run has completed for R-F2## at plant 1000, view the results in the stock requirements list. Are the planned independent requirements now covered by corresponding procurement elements? From the Stock/Requirements list, access the capacity situation for the resources pertinent to the production of R-F2##. Review the detailed capacity in weekly buckets. Are there any overloads? Is there enough capacity to plan production in the current period or next period? Execute a single item, multi-level MPS run in simulation mode for R-F2## at plant 1000.. Check to see if the dependent requirements created by the MPS run can be replenished in time to support the requirements date of R-F2## at plant 1000. Use the following planning parameters:

2.

3.

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Field Processing key Create purchase req. Delivery schedules Create MRP list Planning mode Scheduling Simulation mode

Value NETCH 1 3 1 3 2

Also plan unchanged components Select Select

Note: Upon selecting the Simulation Mode the detailed materials list indicator will automatically be set. 4. Are there any delays for the planned orders for R-F2## that lie outside the planning time fence? Will Rescheduling the orders to the “reschedule data” improve or worsen the delays. Exit the planning run without saving.

5.

Remove the settings from Task 1 for material R-F2## in plant 1000 by setting the MRP type back to “PD”. Save the material master.

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Solution 8: Master production scheduling (MPS) and material requirements planning (MRP)
Task 1: Setup Master Production Scheduling in SAP ERP
Demand on your pump R-F2## has been erratic and capacity to manufacture the pump is limited. Due to this situation, as a planner, you want to look at the results of the planning run prior to exploding the rest of the Bill of Material. Set the material R-F2## at plant 1000, to an MPS item, execute a planning run and review the results and make changes as necessary. 1. To better understand the MPS functionality, we will create some demand in the short term. Enter the following demand, in weekly buckets starting from the 2nd period, into your active version of demand management for R-F2## at plant 1000. Period Amount a) Week 2 20 Week 3 10 Week 4 10 Week 5 10 Week 6 10

Follow SAP ERP menu path Logistics → Production → Production Planning → Demand Management → Planned Independent Requirements → Change (MD62) Enter material R-F2## plant 1000. Set the Planning period to W -Weeks Press ENTER Enter the quantities from the above chart starting in the 2nd week When finished select Save

b) c) d) e)

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2.

From the Stock/Requirements list change material R-F2## in plant 1000 to a master schedule item, fixing type 1. In addition you promised the production manager that you would freeze the schedule for two weeks. Insert a Planning time fence of 10 working days. a) b) c) d) e) Follow SAP ERP menu path Logistics → Production → MRP → Evaluations→ Stock/Requirements List (MD04) Enter Material R-F2## at plant 1000, and press ENTER Follow the menu path:Environment → Change material . In the MRP 1 view, change the MRP type to M1 - MPS, Fixing Type 1, and set the Planning Time Fence to 10 days. Select F1, field level help for information regarding the calculation of days.

3.

What affect did the changes have, and why? Answer: From the Stock/Requirements list you can see the MRP type has changed. In addition, a MRP segment has been created 10 days from the current date, stating the end of the planning time fence. This was caused by using the MRP type that allowed use of a planning time fence and setting the planning time fence to 10 days.

4.

What affect will the Fixing Type 1 have on the planning run? Answer: Any existing orders inside the planning time fence will be firmed. This is identifiable by the * after the planned order number. Note the Planning time fence does not set the firming indicator in the planned order. This is in case a user changes the MRP type or the length of the planning time fence. The system may need to replan/remove those orders previously firmed by the MRP type. In addition, if any new requirements fall inside the fence, during the next planning run new orders will be created and scheduled backwards from the planning time fence.

5.

Check the planning file. Which of the following indicators are set? MPS Indicator ____ NChge plng ____ NChgePHor. ____ a) From the Stock/Requirements list select Display Planning File Entries.. Note this icon was place in the S/R list by the navigation profile. or Logistics → Production → MRP → Planning → Planning File Entry → Display (MD21) b) Indicators set in the planning file: MPS indicator: yes NChge plng yes NChgePHor. yes Continued on next page

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Task 2: Executing an MPS processes in SAP ERP
Now that you have set your material R-F2## to an MPS item and have indicated the need for using a planning time fence. Execute a Single-item, Single-level MPS run. 1. From the Stock/Requirements list execute single-item, multi-level planning for the material R-F2## in the plant 1000 (MD02). Is this possible? _____________ a) b) c) 2. Follow SAP ERP menu path Logistics → Production → MRP → Evaluations→ Stock/Requirements List (MD04) From inside the Stock/Requirements list select Sng-item, Multi-Lvl Single-item, multi-level planning for master schedule items possible: No

Execute single-item, single-level planning for master schedule items (MD42) for the material R-F2## in the plant 1000 from the menu of master production scheduling. Use the following parameters Field Processing key Create purchase req. Delivery Schedules Create MRP list Planning mode Scheduling a) b) Value NETCH 1 3 1 1 2

SAP ERP menu path:Logistics → Production → Production Planning → MPS → Master schedule items→ Single-Item, Single-Level (MD42) Select Enter twice.

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SCM240

Task 3: Evaluate the MPS run results
Now that you have executed an MPS run for you product R-F2## at plant 1000, you must review the plan results. Check the capacity situation of the resources involved. If you have sufficient capacity, reschedule the items inside the fence using simulative MRP to make sure all components will be available as well. 1. Now that your MPS run has completed for R-F2## at plant 1000, view the results in the stock requirements list. Are the planned independent requirements now covered by corresponding procurement elements? a) b) Follow SAP ERP menu path Logistics → Production → MRP → Evaluations→ Stock/Requirements List (MD04) Planned independent requirements covered by procurement elements: Yes. However, due the planning time fence several orders were created outside the fence. This was a result of using an MRP type with fixing type 1.

2.

From the Stock/Requirements list, access the capacity situation for the resources pertinent to the production of R-F2##. Review the detailed capacity in weekly buckets. Are there any overloads? Is there enough capacity to plan production in the current period or next period? a) b) c) d) From the Stock/Requirements list follow menu path: Goto → Capacity situation . select Detailed Planning and Weeks, then select Continue (Enter).

To review any overloads at related work centers select Overload There are NO overloads in the current period or next period for the work centers related to the production of R-F2##. Select (Enter)to return to the Detailed Planning screen. Continue

e)

In the Utilization per period report, review the available capacity for the next two weeks and compare it to the capacity requirements for the Material in week three. There is adequate capacity at all resources to support production requirements for the R-F2##. Exit the Detailed Planning screen.

f) g) 3.

Execute a single item, multi-level MPS run in simulation mode for R-F2## at plant 1000.. Check to see if the dependent requirements created by the MPS run can be replenished in time to support the requirements date of R-F2## at plant 1000. Use the following planning parameters:

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Field Processing key Create purchase req. Delivery schedules Create MRP list Planning mode Scheduling Simulation mode

Value NETCH 1 3 1 3 2

Also plan unchanged components Select Select

Note: Upon selecting the Simulation Mode the detailed materials list indicator will automatically be set. a) b) c) d) 4. SAP ERP menu path:Logistics → Production → Production Planning → MPS → Master schedule items→ Single-Item, Multi-Level (MD41) Press ENTER twice. Confirm any warning messages. Select material R-F2## and select Display the planning results of the selected materials Select Execute planning run

Are there any delays for the planned orders for R-F2## that lie outside the planning time fence? Will Rescheduling the orders to the “reschedule data” improve or worsen the delays. Exit the planning run without saving. Answer: Varies. If Delays already exist for those orders outside the planning time fence with rescheduling dates, moving the orders up (closer to today) will only increase the delays. Therefore, the orders can not be moved in any closer even though capacity exists for all work centers.

5.

Remove the settings from Task 1 for material R-F2## in plant 1000 by setting the MRP type back to “PD”. Save the material master. a) b) c) Follow the SAP ERP menu path: Logistics → Production → Master Data → Material Master → Material → Change → Immediately Select material R-F2##, select MRP 1 and plant 1000. After making the changes select Save.

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Lesson Summary
You should now be able to: • Explain how master production scheduling will fit into the production planning process • Demonstrate how to execute and MPS planning run.

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Unit Summary

Unit Summary
You should now be able to: • Explain how master production scheduling will fit into the production planning process • Demonstrate how to execute and MPS planning run.

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Unit Summary

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Test Your Knowledge

231

Test Your Knowledge
1. What purpose does MPS serve?

2.

If you do not review the exception messages or capacity prior to planning the entire BOM, than MPS is not a step you need in your planning process?
Determine whether this statement is true or false.

□ □ 3.

True False

If an item is marked as an MPS item you can not plan down to its required raw material.
Determine whether this statement is true or false.

□ □ 4.

True False

The planning time fence is only a function of MPS?
Determine whether this statement is true or false.

□ □

True False

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Answers
1. What purpose does MPS serve? Answer: MPS allows a planner to limit the bill of material explosion during a planning run. This is done in order to review capacity and exception messages in order to make changes prior to planning the balance of the Bill of Material items. 2. If you do not review the exception messages or capacity prior to planning the entire BOM, than MPS is not a step you need in your planning process? Answer: True Processing exception messages and capacity planning are the two main reasons for Master Production Scheduling. 3. If an item is marked as an MPS item you can not plan down to its required raw material. Answer: False You can plan down to the raw material by running a single-item, multilevel MPS run, or Executing total planning and selecting the process MRP materials, or set all materials down to the raw materials as MPS items. 4. The planning time fence is only a function of MPS? Answer: False The planning time fence can be used during an MPS or MRP run. This controlled by the MRP type and how the firming functionality is configured.

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Unit 6
233

Influencing the Planning Run

Unit Overview
This unit will introduce you to various techniques of influencing the output of the planning run. It will involve defining how order quantities are calculated as well as interpreting various types of demand in the planning run.

Unit Objectives
After completing this unit, you will be able to: • • • • • • • • • • • Explain how the planning run works in detail. Describe the different methods of modeling buffers in the planning run Demonstrate how several of the different methods of safety stock work Demonstrate how Lot size techniques an influence the size of a planned orders Demonstrate how use several fields in the material master to influence the size of a planned order Explain how planning calendars can be used to specifically coordinate the quantity and timing of receipts. Explain the configuration process of Lot Size techniques. Explain how to perform Cross location planning in SAP ERP Demonstrate how cross location planning work in SAP ERP Demonstrate how to initiate a continuous output for a long production run Demonstrate how to initiate continuous input for components that will not be used discretely but continuously

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.......................................370 Exercise 12: Continuous Input/Output in the Planning Run (OPTIONAL)........................293 Demonstration: Safety Stock Calculation .......345 Demonstration: One Step Stock Transfer ........... All rights reserved..............298 Demonstration: Safety Stock Partially Available ...........................................................................377 280 © 2003 SAP AG.364 Exercise 11: Multi-Site Planning ............................................300 Procedure: Safety Stock Partially Available ...............................291 Demonstration: Static Safety Stock ...........................................334 Demonstration: Special Lot-Sizing Procedures ..................350 Demonstration: Demonstrate Two Step Stock Transfer Without delivery................ 311 Exercise 9: Dynamic Safety Stock .365 Lesson: Continuous Input/Output....................................................287 Lesson: Using Buffers in Planning..............355 Demonstration: Demonstrate withdrawal from another facility ...............338 Exercise 10: Controlling Order Quantities in the Planning Run ..... 2004/Q3 ..........329 Demonstration: Planning Calendar ................................307 Demonstration: Safety Time ..................................................................................348 Demonstration: Two Step Stock Transfer Posting ...................................................302 Demonstration: Dynamic Safety Stock .................................330 Demonstration: Rounding ....................................................296 Procedure: Calculated Safety Stock ..........281 Demonstration: Rescheduling Check .361 Demonstration: Demonstrate Production in another plant ..........................339 Lesson: Multi-Site Planning ........................................324 Demonstration: Periodic lot sizes ..............313 Lesson: Controlling order quantities in the planning run.......................................................................Unit 6: Influencing the Planning Run SCM240 Unit Contents Lesson: Net Requirements Calculation .....................................................................................

Details of the Planning Run Low-Level code has already been discussed in the Methods for Executing a planning run lesson. All rights reserved. ] Business Example As a production planner you are responsible for a the results of the planning run. If you have many experienced planners. all finished goods will be run first then. 281 . In order to better understand how the calculations are being performed. the instructor must decided how much time to spend on this section. all materials at the next level of the bill of material followed by the next level. [Enter a description of what the instructor should discuss with the participants about the context of the lesson. Level-by-Level refers that during the planning run. and so on till the raw materials are planned. Review how the MRP process will work in order to better understand how to influence the results. Lesson Objectives After completing this lesson. you will be able to: • Explain how the planning run works in detail. we need to look at how the process as a whole is going to take place. Is SAP ERP. In order to manage the business properly you need to ensure the accuracy of your planning run results.SCM240 Lesson: Net Requirements Calculation Lesson: 235 Net Requirements Calculation Lesson Duration: 20 Minutes Lesson Overview In this lesson we will briefly discuss what is net requirements calculation and how can we influence the result of the planning run. Based on the level of understanding. 2004/Q3 © 2003 SAP AG. gloss over it and move on to the next section. the planning run process takes place in a “Level-by-Level” methodology.

282 © 2003 SAP AG. 2004/Q3 . by the consistency check of the planning file entry in requirements planning should also correct the low-level codes in table ’Entry in MRP File’. It determines the sequence in which the materials are planned. The low-level code represents the lowest level of usage of a material within all product structures.Unit 6: Influencing the Planning Run SCM240 Figure 82: Low Level Code Some components may appear in several products and in several production levels of a product. a planner has more opportunity to influence the out come of planning run. ) and is entered in the planning file. As a planner who is responsible for the production and procurement of materials it is your responsibility to understand how the calculations are being performed during the planning runs. The system plans materials with the low-level code 0 first and then those with 1 and so on. If a planner is concerned with the correctness of the low-level code. Note: The consistency check calls up report RMMDVM10 internally which adjusts the low-level codes in field MDKEY in table MDVM to the low-level codes of table MARA. The low-level code is stored in the BOM management program in the material master (Additional data. the higher the number assigned to the level. All rights reserved. The lower the low-level code is. In having a better understanding of how the calculations work. Use the menu path Logistics → Production → MRP → Planning → Planning file entry → Consistency check.

planners will have the opportunities to cover several sets of requirements with one replenishment element if that is their choice. 2004/Q3 © 2003 SAP AG. which copy the bill of material. The Planning run. 283 . we have to consider what affect it will have. All rights reserved. Note: Planners must be aware that it is that function of the a planned order creating the depended demand not the planning run. the system checks whether or not the demand (requirements) can be met by the supply (on hand inventory and fixed receipts).SCM240 Lesson: Net Requirements Calculation Figure 83: MRP Process Knowing how the system will process the numerous materials during a planning run. During the MRP run. By processing the materials by low-level code. and are then scheduled. Calculation in the Planning Run The net requirements calculation is the first step in the MRP run and is executed at the plant level or MRP area level. creates planned orders. thus determining the quantity and the timing of the dependent demand.

the system creates a procurement proposal.Unit 6: Influencing the Planning Run SCM240 Figure 84: Overview: Net Requirements Planning Here are some examples of various demands considered during the planning run: • • • • • • • Planned independent Requirements (strategy dependent) Customer requirements (Sales orders/Deliveries/Schedule Lines . 284 © 2003 SAP AG.strategy dependent) Dependent demand from planned orders Order reservations from production/process orders Material reservations from goods movement request Stock transfer requests/orders (outbound ) Safety stock Here are some examples of fixed receipts: • • • • • Production/Process orders Firmed Planned orders Purchase orders Firmed Purchase requisitions Stock Transfer order ( inbound ) When comparing demand to supplies. All rights reserved. if shortages exist. 2004/Q3 .

If the quantity available for planning is less than zero. by creating purchase requisitions or planned orders. whether the blocked stock or restricted stock for batches is included in plant stock. that is. quality inspection stock. stock and fixed receipts that currently exist. In the Customizing a company can decide wether certain stock types are relevant for planning. fixed purchase requisitions. independent of the procurement type. and planned orders.Production → MRP → Planning → MRP Calculation → Stocks → Define Availability Stock in Transfer/Blocked Stock/Unrestricted Stock. a material shortage exists. The stock available for planning combines the following stock from all the storage locations that belong to this plant or MRP area and are not excluded from MRP or planned separately: Stock that is usable without restrictions. a net requirements calculation is executed in the planning run to determine whether or not a material shortage exists for a particular material. The suggested procurement quantity results from the lot-sizing procedure that is set in the material master. In addition. Firmed receipts are not 2004/Q3 © 2003 SAP AG. In the IMG. Rescheduling Horizon One consideration planners will have to consider is how scheduling will be affected by firmed receipts. you can define for each plant whether or not the stock in transfer from plant-to-plant stock transfers is included in the plant stock. consignment store stock that is usable without restriction.SCM240 Lesson: Net Requirements Calculation Figure 85: Net Requirements Calculation In MRP. MRP reacts to material shortages by creating new procurement proposals. such as purchase orders. All rights reserved. 285 . and consignment store stock in quality inspection. production orders. are compared with the safety stock and requirements to determine the quantity available for planning.

If the dates of these elements no longer fall within the rescheduling horizon. and the rescheduling horizon (starting from the planning date). In this case. to see whether or not the existing dates for firmed receipts are still suitable or whether or not the firmed receipts can be rescheduled to cover requirements. goods receipt processing time. “Reschedule out operation”: If the requirements date is greater than that of the receipt element. All rights reserved. the system creates a new receipt element. the system generates the following exception messages: • • • “Reschedule in operation”: If the requirements date is less than that of the receipt element. In Customizing. consisting of the in-house production time. you can stop the system from using receipts that are a long time into the future to cover the requirements in the near future. you define at the plant level which firmed receipts the system checks. 286 © 2003 SAP AG.Unit 6: Influencing the Planning Run SCM240 Figure 86: Rescheduling Check for Firmed Receipts The planning run does not automatically reschedule firmed receipts. The rescheduling check of firmed elements is not restricted to a horizon. If the system cannot find a receipt element within the rescheduling horizon that can be rescheduled in or out to cover requirements. You can maintain the rescheduling horizon and the tolerance values for each plant and each MRP group. “Reverse operation”: If the requirement no longer exists. 2004/Q3 . the system checks within the period. Using the rescheduling horizon.

In the plant parameters: Customizing: Production → Material Requirements Planning → Plant Parameters → Carry Out Overall Maintenance of Plant Parameters → Select Maintain → Enter Plant 1000 → Select Maintain → Rescheduling. The system only creates an exception message when the difference between the current receipt date and the rescheduling date exceeds the tolerance value. Demonstration: Rescheduling Check Purpose To demonstrate rescheduling check for firmed receipts. Optional Demo for Rescheduling Check (Firming Demo Continued) Starting point: The customer independent requirement was increased by 15 pieces. All rights reserved. the subsequent planning run creates an unfirmed planned order with more than 15 pieces with the exception message. 2004/Q3 © 2003 SAP AG. for the end of the firming area defined here by the manual firming date. 287 . firmed elements 1. In the settings for the MRP group Customizing: Production → Material Requirements Planning → MRP Groups → Carry Out Overall Maintenance of MRP Groups → Enter Plant 1000 → Select Maintain → Enter MRP Group 0031 → Select Maintain→ Rescheduling horizon. you can set tolerance values for rescheduling in and out. 2. “Schedule operation on time”. tolerance value. System Data System: Client: User ID: Password: Set up instructions: Show the Customizing settings for the rescheduling check: Rescheduling horizon.SCM240 Lesson: Net Requirements Calculation To reduce the number of exception messages.

the rescheduling date disappears. 5. 3. 2. “Schedule operation on time”. interactive: 1. Reschedule the date of the planned order to two days before the rescheduling date to explain the tolerance values. 288 © 2003 SAP AG. the second firmed planned order retains the original date with the original quantity of 12 pieces and retains the exception message. the firmed elements are first considered for planning and the rescheduling check and then the unfirmed. save the orders. 4. 2004/Q3 . Rescheduling key → both planned orders receive the exception messages. Execute planning → the first unfirmed planned order is reduced from 15 to 3 pieces and retains the exception message. the planned order is firmed due to manual creation. and refresh the stock/requirements list. Reschedule both the planned orders. “Bring forward”.Unit 6: Influencing the Planning Run SCM240 Single-item. All rights reserved. Create additional planned orders with more than 12 pieces with the order finish time today in 2 months. “Schedule operation on time” and/or “Bring forward”.

All rights reserved. Feel free to use your own additional questions. 289 . 2004/Q3 © 2003 SAP AG.SCM240 Lesson: Net Requirements Calculation Facilitated Discussion Discussion Questions Use the following questions to engage the participants in the discussion.

2004/Q3 . 290 © 2003 SAP AG.Unit 6: Influencing the Planning Run SCM240 Lesson Summary You should now be able to: • Explain how the planning run works in detail. All rights reserved.

While faced with these realities. so that customer service is not negatively impacted. Demonstrate how using several fields in the material master will allow planners to account for these types of problems without affecting service. All rights reserved. ] Business Example Due to an imperfect planning and manufacturing process. Planners usually use some time of quantity or time buffer to offset these problems. you will be able to: • • Describe the different methods of modeling buffers in the planning run Demonstrate how several of the different methods of safety stock work [Enter a description of what the instructor should discuss with the participants about the context of the lesson. planners must have a methods of accounting for these short falls or delays. or delays in the delivery of externally procured products. 291 . delays in production. you are constantly faced with shortages of materials due to scrap during manufacturing. Lesson Objectives After completing this lesson. you are constantly faced with shortages of materials due to scrap during manufacturing.SCM240 Lesson: Using Buffers in Planning Lesson: 243 Using Buffers in Planning Lesson Duration: 30 Minutes Lesson Overview This lesson describes net requirements planning by taking safety stock and dynamic safety stock into account. delays in production or delays in the delivery of externally procured products. It also describes the quantity and time buffers used to calculate demand. Buffers in Planning Due to an imperfect planning and manufacturing process. Here are some methods of counter acting delays and shortages: • • • • Safety stock Safety stock partially available Dynamic safety stock Safety time 2004/Q3 © 2003 SAP AG.

Unit 6: Influencing the Planning Run SCM240 There are two types of buffers that you can plan to take into account uncertainties in the development of demands: • • Quantity buffer: Safety stock. Safety stock should never be used Some portion of safety stock can be used to offset expensive delays. the safety stock is valid until the end of time and is effective immediately. and dynamic safety stock Time buffer: Safety time Static Safety stock in the Planning Run One of the quantity based methods of buffering against production shortages or delays is the use of Safety stock. All rights reserved. 2004/Q3 . 2. partially available safety stock. Upon entering a value in the material master. 292 © 2003 SAP AG. There are two philosophies regarding safety stock 1. based on the system date. Figure 87: Static Safety Stock You can define the safety stock level per material plant in the “MRP 2 view” of the material master or per MRP area in the MRP area segment. Safety stock acts as a requirement during the planning run thus reduces the stock available for planning.

as soon as the available quantity falls below zero. Depending upon how you have this coded it could show the user a warning or produce an error that would stop the transaction from occurring. 3.SCM240 Lesson: Using Buffers in Planning The safety stock MRP element will appear immediately after the stock MRP element in either the MRP or Stock/Requirements list. Multi-Level MRP to see how the planning run reacts to the changes 2004/Q3 © 2003 SAP AG. during the next planning run the system will create a replenishment to return the available balance to zero. 4. When the on hand balance is less than the defined safety stock level. you would need to use Available-to-Promise ( ATP) functionality. Demonstration: Static Safety Stock Purpose Demonstrate how Safety stock is used during the planning runs. Caution: While safety stock is used during the planning runs. 5. In the MRP 2 Screen add a safety stock of 10 pcs. Note that this is also the case if the safety stock is only slightly below the defined safety stock level. 293 . 2. the inventory is not technically classified as safety stock. Even though there is physical stock on hand. From the stock requirements list for you material R-F2## at plant 1000. In the configuration of ATP. you can select wether to include/exclude the Safety stock values from the availability check. Save the material master Refresh the stock the S/R list Point out to the students that the safety stock is now visible as a requirement Run Single-item. System Data System: Client: User ID: Password: Set up instructions: 1. the system replenishes the safety stock during the planning run. All rights reserved. Note: Due to the fact that safety stock appears as a requirement. Environment → Change Material. In order to assure the quantity of safety stock is not physically used.

294 © 2003 SAP AG. It also shows that it is almost impossible to satisfy customer demand 100% of the time. The more accurate the forecast. SAP ERP also allows you another slightly more sophisticated method of calculating. the smaller your safety stock can be. calculating the safety stock depends on the service level that you specified in the MRP II view of the material master record and on the accuracy of the forecast. Prerequisites for Calculation Safety Stock: • • • Service level maintained in the material master Consumption values captured via goods issues transactions.Unit 6: Influencing the Planning Run SCM240 Calculating Safety Stock The previous method of safety stock is a very simple process. customer demand can be satisfied by 50%. choose a value for your safety stock or calculate the value outside of SAP ERP and enter the value in the material master at the pertinent time. The information in the previous section apply after the calculation has been complete. All rights reserved. Factor R describes the relationship between forecast accuracy and service level (SL). without safety stock. Maintenance of the forecasting tab in the material master. The following figure shows that. relevant for the entire horizon. While this method will take some knowledge of statics and forecasting. it is still static. Figure 88: Calculated Safety Stock Note: This method will use a calculation process to derive the safety stock value that will be placed in the material master. 2004/Q3 . (requires statistical background) With this method.

For the forecast. The calculation of the safety stock in the SAP ERP system is always performed according to formula 17 of the documentation. If the material is procured externally. 295 . All rights reserved. WZEIT = PLIFZ * 5/7 days Note that in this case only an integral planned delivery time is useful. 2. the safety stock is then automatically set to this minimum value. it is important that for W a special calculation is performed which will be described in the following. however. SS = R * MAD * sqrtW In this case. the delivery time is: goods receipt processing time + planned delivery time + goods receipt processing timee. The forecast period is taken from the material master record (Forecast Tab) and is also expressed in workdays. Then. It is expressed in workdays. You can specify a minimum safety stock. Therefore. The safety stock calculation may lead to rounding effects. the goods purchasing processing time from the material master and the processing time of the purchasing from table T399D are added to the planned delivery time. The MAD is a parameter of forecast accuracy. WZEIT(*) = WZEIT + WEBAZ + T399D-BZTEK 2004/Q3 © 2003 SAP AG. Note: Safety Stock Calculation: SS = R xV_W x MAD W = Planned Delivery time/ Forecast Period Otherwise the following formula is used: Note: SS = R x W X MAD If the material is produced in-house. it needs to be defined in workdays. the delivery time is: opening period + in-house production time + goods receipt processing time. 1. The planned delivery time is defined in calendar days. The forecast period is taken from the material master record (forecast and is also expressed in calendar days.SCM240 Lesson: Using Buffers in Planning If replenishment lead time is greater than the forecast period by factor W. It is expressed in calendar days. You enter the minimum safety stock in the material master record (the MRP 2 screen). it is always rounded. then the mean absolute deviation (MAD) is recalculated for this period (formula 17). If the result of the safety stock calculation is lower than this limit.

MRP with Safety stock planning In the MRP 2 view set the Service level to 90 %. Value K 1 Leave Blank At the bottom of the forecast tab select Consumption Values. Logistics Production → MRP → Planning → Evaluations → Stock/Requirements List (MD04) 2. 3. these values are as follows: length of the period: 5 for period indicators = W length of the period: 21. the reorder point is the total of the safety stock plus the forecasted requirements within the replenishment lead time. 4. Generally. 5. 2004/Q3 . and set a minimum safety stock level of 15 pcs.Unit 6: Influencing the Planning Run SCM240 Afterwards. Access the stock requirements list for R-T1## at plant 1000. 296 © 2003 SAP AG. 3. Go to the materials Master MRP 1 view Environment → Change Material In the MRP 1 view change the MRP type to SS . the result is divided by the period. Consequently. Enter the following values in the corrected value column. System Data System: Client: User ID: Password: Set up instructions: 1. All rights reserved. this value is inserted in the above formula and can be used for the calculation of the safety stock. In the Forecast tab make the following settings: Field Forecast Model Forecast Periods Initialization 6.4 for period indicators = M. W = WZEIT(*) / length of the period Then. Demonstration: Safety Stock Calculation Purpose Demonstrate to students how SAP ERP can use consumption values and a service level to calculate safety stock.

9. 10. then return to the MRP 2 view to review the results Save.4 Previous Period.SCM240 Lesson: Using Buffers in Planning Previous Period Previous Period . Select Copy. Refresh 13. and notice the Safety stock Calculation 11.6 Previous Period . Note the safety stock MRP Element 2004/Q3 © 2003 SAP AG. 650 700 800 750 800 850 900 950 1000 1050 Return to the forecast tab and select Execute Forecast Select Select the constant model and select Execute forecasting twice. Upon returning to the S/R list select 14. All rights reserved.1 Previous Period . Review the results of the forecast. Select 12.7 Previous Period .3 Previous Period .2 Previous Period .9 When finished select Main Data 7. 8.8 Previous Period .5 Previous Period . 297 .

At the bottom of the forecast tab select Consumption Values. Enter the following values in the corrected value column.2 Previous Period . Return to the forecast tab and select Execute Forecast Select Select the constant model and select Execute forecasting twice. Value K 1 Leave Blank 2. Logistics Production → MRP → Planning → Evaluations → Stock/Requirements List (MD04) Go to the materials Master MRP 1 view Environment → Change Material In the MRP 1 view change the MRP type to SS . Continued on next page 298 © 2003 SAP AG. 8. All rights reserved. 4.Unit 6: Influencing the Planning Run SCM240 247 Calculated Safety Stock 1. Access the stock requirements list for R-T1## at plant 1000.9 When finished select Main Data 650 700 800 750 800 850 900 950 1000 1050 7.5 Previous Period .1 Previous Period .7 Previous Period . 5. 2004/Q3 .4 Previous Period. 9. and set a minimum safety stock level of 15 pcs. 3.6 Previous Period . In the Forecast tab make the following settings: Field Forecast Model Forecast Periods Initialization 6.MRP with Safety stock planning In the MRP 2 view set the Service level to 90 %.8 Previous Period . Previous Period Previous Period .3 Previous Period .

which was entered in the material master. This is often the case in certain industries where the cost of tearing down and setting up a production line out-ways the risk of additional customer service problems. The availability of the safety stock is defined at the MRP Group level. then return to the MRP 2 view to review the results Save. MRP 2 view. Figure 89: Safety Stock Partially Available You can define the proportion of safety stock that is available for planning for each MRP group in Customizing. All rights reserved. Select Copy. Upon returning to the S/R list select 14. This way planners can decide which materials should plan to use safety stock. Refresh 13. The value is defined as a percentage of the safety stock level. 2004/Q3 © 2003 SAP AG. Note the safety stock MRP Element Safety Stock Partially Available Another philosophy on safety stock is that part of the inventory should be available for use in planning. Select 12. Production → MRP → Planning → MRP Calculation → Stocks → Define Safety Stock Availability or Production → MRP → Carry Out Overall Maintenance of MRP Groups.SCM240 Lesson: Using Buffers in Planning 10. 299 . and notice the Safety stock Calculation 11. Review the results of the forecast.

and Lot-sizing procedure exact. 2004/Q3 . This order proposal replenishes the stock up to the safety stock level. Select 2. This reduces the amount of administrative work and planning. Refresh the stock requirements list → Safety stock is displayed – it flows into the net requirements calculation as a requirements element. Save. Save. Logistics → Production → MRP → Evaluations → Stock/Requirements List ( MD04 ) Change material R-F2##. 3.Unit 6: Influencing the Planning Run SCM240 A new order is not created until the stock falls below the available portion of safety stock. Environment → Change Material . Add 45 pcs of inventory for you R-F2## at plant 1000. since orders will not be created every time the available quantity dips below zero. All rights reserved. Select 4. Place inventory in storage location 0001. 5. This means that no individual order proposals are created for small material shortages. Demonstration: Safety Stock Partially Available Purpose To learn about partially available safety stock System Data System: Client: User ID: Password: Set up instructions: 1. For MRP Group 0031 Enter 50% and Save. 300 © 2003 SAP AG. Definition of partially available safety stock in the Customizing for MRP groups Customizing: Select Production → Material Requirements Planning → Planning → MRP Calculation → Stocks → Define Safety Stock Availability. and display the results: → If there is a shortage in the safety stock. Enter safety stock: 10 pieces (MRP 2) if you have not yet done so. Access the stock requirements list for product R-F2## at plant 1000. Execute material requirements planning for R-F2##. Refresh. a receipt element for the amount of the material shortage is generated. 6. Use transaction MB1C and movement type 501.

301 . Execute the planning run again. Remove the setting in Customizing.SCM240 Lesson: Using Buffers in Planning 7. A new receipt element is only created in the amount of the safety stock when the safety stock that is partly available is below the permissible limit. 8. No more planning is executed. All rights reserved. 2004/Q3 © 2003 SAP AG.

execute the planning run again. Refresh the stock requirements list → Safety stock is displayed – it flows into the net requirements calculation as a requirements element. Place inventory in storage location 0001. planners often like to keep different levels of safety stock. For MRP Group 0031 Enter 50% and Save. would not find the method of static safety stock applicable to their business. Dynamic Safety Stock in MRP Certain industries. → Safety stock is displayed – it flows into the net requirements calculation as a requirements element. Select 2. Use transaction MB1C and movement type 501. 4.Unit 6: Influencing the Planning Run SCM240 250 Safety Stock Partially Available 1. and display the results: → If there is a shortage in the safety stock. 2004/Q3 . Refresh. 7. All rights reserved. → Safety stock is displayed – it flows into the net requirements calculation as a requirements element. 8. Refresh the stock requirements list Refresh. No more planning is execute Remove the setting in Customizing. Add 45 pcs of inventory for you R-F2## at plant 1000. While the static method is more of a fixed safety stock. 3. the method of Dynamic Safety Stock allows safety stock to fluctuate with the rise and fall of demand. 6. When products tend to have seasonal periods or periods where demand spikes. 5. 302 © 2003 SAP AG. Definition of partially available safety stock in the Customizing for MRP groups Customizing: Select Production → Material Requirements Planning → Planning → MRP Calculation → Stocks → Define Safety Stock Availability. A new receipt element is only created in the amount of the safety stock when the safety stock that is partly available is below the permissible limit. and for that matter certain products. a receipt element for the amount of the material shortage is generated. Execute material requirements planning for R-F2##. Refresh the stock requirements list Refresh. Save.

2004/Q3 © 2003 SAP AG. If the available quantity exceeds the maximum stock level. and maximum level of supply coverage over and above that of the existing demand. the system checks whether or not the available quantity is below the minimum stock level. the quantity is adjusted as long as a firmed procurement proposal is not involved. By looking at the pegging report for a planned order. you can determine a dynamic level of safety stock that meets the requirements of time and demand dependency. The concept of the range of coverages is similar to that of Target Days Supply or Days of forward coverage. If this is the case. All rights reserved. Dynamic safety stock. The goal of the range of coverage is to design a profile that will define a minimum. add to each other. Therefore without using the pegging report.SCM240 Lesson: Using Buffers in Planning Figure 90: Dynamic Safety Stock (1) Using the Range of Coverage calculation. at first glance planners will not know why production is being pulled up. is simply production that going to be produced earlier. dynamic safety stock does not have its own MRP element. target. the system creates an order proposal to increase the available quantity to the target stock level (dynamic safety stock). you can see that it pegs to future demand. The system issues an exception message for firmed procurement proposals. Caution: Unlike static safety stock which appears as a separate MRP element. During every planning run. 303 . For any additional static safety stock and the dynamic safety stock.

All rights reserved. the dynamic safety stock automatically adjusts itself to changes in demand. Figure 92: Range of Coverage configuration 304 © 2003 SAP AG. As a result. The dynamic safety stock is calculated using the following formula: Average daily requirement x Target range of coverage.Unit 6: Influencing the Planning Run SCM240 Figure 91: Dynamic Safety Stock (2) The dynamic safety stock is calculated according to the average daily requirements. 2004/Q3 .

according to the Gregorian calendar Standard days. and dividing by the number of days in each total for both periods. to the end of the periods specified. The average daily requirement is calculated for each period. you enter the minimum and target range of coverage as the number of days in which a material must still be available. You can determine the minimum. All rights reserved. or period according to the planning calendar) and the number of periods for which the average daily requirements are to be determined. During the planning run. Figure 93: Dynamic Safety Stock (3) 2004/Q3 © 2003 SAP AG. Production → MRP → Planning → MRP Calculation → Define Range of Coverage Profile (Dynamic Safety Stock). The second period will start with the end of the first. month. user defined number in the profile. and the end date based on the number of periods entered for the length of the second period. target. 305 . In the profile. For example in the figure above. if each period were a month. users will define what type of days they want to use: • • • Work days according to the plant calendar Calendar days. target. the system checks whether or not the range of coverage (available quantity divided by average daily requirement) is below the minimum range of coverage or above the maximum range of coverage.SCM240 Lesson: Using Buffers in Planning In the Customizing. The third period starts at the end of the second period and is valid till the end of time. and maximum stock by multiplying the average daily requirements with the values for the minimum. You can define the periodicity (week. the system calculates the average daily demand by summing two months of requirements. and maximum range of coverage defined in the profile. The first number of periods will be valid from the current system date. You can also enter a maximum range of coverage. In addition. In the definition of the profile you will have the opportunity to define three time periods. you will define a profile that will be used in the material master .

for example. The values used for the individual parameters of the dynamic safety stock can either be checked directly after single-item planning in the planning results or in the stock/requirements list. Figure 94: Time Dependent Dynamic Safety Stock While often times planners find this method of safety stock workable. it still has its faults. 2004/Q3 . the dynamic safety stock data is available in the periods total displ The following data is displayed: target range of coverage. “Define Range of Coverage (Dynamic Safety Stock)”. You can access this activity directly from the MRP menu by selecting Environment → Current Settings. Planners often need levels of coverage to be time dependent. minimum range of coverage. In both evaluations. In addition to the three intervals for which you can define different ranges of coverage. The parameters that calculate the dynamic safety stock are stored in a range of coverage profile in the Customizing for MRP. if a high safety stock is to be planned because of increased demand in a particular period. in the IMG activity. and maximum ranges of coverage) for up to three periods and maintain different ranges of coverage for each period. maximum range of coverage.Unit 6: Influencing the Planning Run SCM240 You can enter the ranges of coverage (minimum. and minimum stock. With dynamic safety stock. target. This is useful. 306 © 2003 SAP AG. The range of coverage profile is assigned to the material in the material master record (MRP data screen 2 or MRP area segment). target stock (dynamic safety stock). the periods are always being calculated based on the current system date. the validity of the range of coverage is unlimited. you can set up fixed periods with a different range of coverage. All rights reserved. If you have maintained only one period.

with various ranges of coverage for one profile. You can define as many deviating periods as you want. 3. Each deviating period is defined by entering the start date and finish date. Display and explain. 307 . changed days’ supplies and stock are displayed only after accessing the display again. Delete the existing set of requirements and create new planned independent requirements for R-F1## at plant 1000: 50 pieces each for the current month +2 until the current month +7 (6 x 50 pieces). The lot-sizing procedure must be exactly same.SCM240 Lesson: Using Buffers in Planning In the Customizing activity. within the details of the profile. Period totals display: No days’ supply Execute a Single-item. use a material for which no planning date exists. 2. 2004/Q3 © 2003 SAP AG. You cannot view the display by refreshing the display. you define validity periods in which you assign a range of coverage. which is different from an existing range of coverage profile. Review the Range of the Coverage Profile in Customizing for profile 001 Customizing: Select Production → Material Requirements Planning → Planning → MRP Calculation → Define Range of Coverage Profile (Dynamic Safety Stock). Use the default settings. “Define Range of Coverage (Dynamic Safety Stock)”. or Select Logistics → Production → MRP → Planning → Environment → Current Settings → Define Range of Coverage Profile (Dynamic Safety Stock). Demonstration: Dynamic Safety Stock Purpose To learn about the dynamic safety stock System Data System: Client: User ID: Password: Set up instructions: Note: To provide a better overview. Note that in the period totals display. 4. 1. Call the stock/requirements list for material R-F1##. Multi-level planning run for the R-F1##. All rights reserved.

8. 5 pieces 11. obsolescence. only one planned order is created for the 14th of the current month + 2 and replenished to the target stock level. Execute the planning run. 7th day: Create planned independent requirements. 2004/Q3 . 12. target stock level. Optional demo for minimum range of coverage: Current month + 2. period totals display (months): The average daily requirement. Execute planning run. Conclusion: The minimum range of coverage for the dynamic safety stock has the same function as the amount of the static safety stock that is not available for planning. With certain products safety stock might not cover problems that are caused by delays. a planned order was generated by the system for the precise quantity to cover the material shortage. maximum days’ supply 10 days). Assign range of coverage profile 003 instead of range of coverage profile 001 (minimum days’ supply 2. Current month + 2. No more planning is executed. 5 pieces Execute planning run. Refresh the S/R list and then change material master R-F1##: Assign range of coverage profile 001 (MRP 2) Call the stock/requirements list again. 10. or space issues. 9. which have a completely different function. 6. 7. another planned order was generated by the system for the precise quantity to cover the material shortage. minimum stock level. so there is an need for other options. call the stock/requirements list again. 13. call the current stock/requirements list again and clarify changed days’ supply and requirements in the period totals display. Safety Time Note: Do not confuse the safety time with the negative and positive lead times from the BOM item. 14th day: Create additional planned independent requirements.Unit 6: Influencing the Planning Run SCM240 5. target range of coverage 5. 308 © 2003 SAP AG. period totals display (months): The available quantities are displayed. For some product safety stock may not even be an option due to excessive costs. Execute the planning run. All rights reserved. and maximum stock level are displayed according to the range of coverage profile.

which is used to move the dependent requirement date. by an unreliable vendor. Order proposals are pushed back from the delivery date by the number of workdays specified in the safety time. for example. is also brought forward by this number of days. the system brings the requirements date forward by 2 days in simulative mode and creates a planned order with the end date on January 29th. created for these requirements in the planning run. However. In the planning run. The goal of safety time is to have material arrive earlier than the requirement date.SCM240 Lesson: Using Buffers in Planning Figure 95: Safety Time Safety time is one time based buffer that SAP ERP offers to planners. The safety time is a float after production or arrival of purchased materials. the actual requirements date (January 31st) does not change. This is in contrast to the lead time and lead-time offset in the component data of a Bill of material (BOM) item. 2004/Q3 © 2003 SAP AG. Hint: The work scheduler defines a safety time / actual range of coverage of 2 days. A requirement exists for January 31st. All rights reserved. You define the safety time for each plant in the material master in the MRP 2 view or for each MRP area in the MRP area segment. The safety time is used to avoid material shortages caused. 309 . The actual requirements dates are not changed. The system simulates bringing the requirements forward (closer to current period) by the specified number of days and the planning for the receipts.

Unit 6: Influencing the Planning Run SCM240 Caution: The disadvantage of this procedure is that a procurement element is created for each requirement. All rights reserved. these two safety times are added together when planning the assemblies. As a result. such as sales orders. This may not be desired. Safety time is to be taken into account for all requirements (indicator = 2). Safety time is only to be taken into account for independent requirements (indicator = 1). you can define for each material whether or not the safety time is valid for all the requirements or only for independent requirements. 2004/Q3 . The system only groups the procurement quantities for the requirements into one procurement element if you work with weekly lot sizes or monthly lot sizes. You define the following in the safety time indicator in the MRP 2 view of the material for each plant or for each MRP area in the MRP area segment: • • • Safety time is not to be taken into account (indicator = blank). The System then shows the earlier. calculated requirements date instead of the actual requirements date Figure 96: Safety Time in Multilevel Production If a safety time has been defined at the finished product level and also at assembly level. Note: You can display the requirements dates that have been moved forward in simulation by selecting the function key Switch On Safety Time in the stock/requirements list. 310 © 2003 SAP AG.

You can use the period profile to define deviating safety times for particular periods. 311 . plant 1000. MD04 2004/Q3 © 2003 SAP AG.SCM240 Lesson: Using Buffers in Planning Figure 97: Period Profile for the Safety Time You define the safety time in the material master per plant (view “MRP 2”) or per MRP area (in the MRP area segment). You then create a period profile to which you can assign many periods with different safety times. which are freely definable. These could. You define safety time period profiles in the Customizing activity. be periods when a special marketing campaign is being used. Access the S/R list for R-F1##. for example. Demonstration: Safety Time Purpose To learn about safety time System Data System: Client: User ID: Password: Set up instructions: 1. “Define Period Profile for Safety Time/Actual Range of Coverage”. you can assign a safety time period profile to a material per plant (view “MRP 2”). In addition. All rights reserved. You can access this activity directly from the MRP menu by selecting Environment → Current Settings.

Save the results and return to the stock requirements list and refresh. In a separate session. Enter period profile P00 and safety time indicator 1 in the material master. and show the effects. Finally. 4. or Logistics → Production → MRP → Environment → Current Settings → Define Period Profile for Safety Time/Actual Range of Coverage. Change the Material master – MRP 2: R-F1##. safety time 10 workdays. As a result you will see the procurement proposals pulled forward by four days. multi-level plan. All rights reserved. 5. execute the planning run. 6.Unit 6: Influencing the Planning Run SCM240 2. plant 1000 Set the Safety time indicator to 2 . It is imperative that students understand the system is considering the requirements dates pulled forward four days causing the procurement proposals to be late. Execute a single-item. Upon refreshing the stock requirements list exception messages will appear. reset the range of coverage profile and the safety time indicator and execute the planning run. 2004/Q3 . access the Production → Material Requirements Planning → Planning → MRP Calculation → Define Period Profile for Safety Time/Actual Range of Coverage. Create profile P00 in plant 1000: Period: 1st day of current month + 6 to last day of current month + 7.all requirements Set the Safety time/Actual range of coverage to 4 days 3. 312 © 2003 SAP AG.

In the future. All rights reserved. and the need to assure high customer service on your R-F1## pump. In the initial screen of the planning run. you will be able to: • Demonstrate how to use static safety stock as a quantity buffer • Demonstrate how to use dynamic safety stock as a quantity buffer Business Example Following the production phase-in period. and put into storage so that sales orders can be filled as quickly as possible. check the creation indicators. execute single-item. on the part of production. assembled. 2. Delete the existing independent requirements for R-F1## at plant 1000. From the Stock/Requirements list. create the following planned independent requirements for the pump R-F1## in the plant 1000: Current month +3 90 Save your entries. Task 1: Static Safety stock Due to minor fluctuations in demand. 3. multilevel planning for the pump R-F1## in plant 1000.SCM240 Lesson: Using Buffers in Planning 259 Exercise 9: Dynamic Safety Stock Exercise Duration: 25 Minutes Exercise Objectives After completing this exercise. you will use static safety stock to buffer unpredictable demand. 313 . caused by reorganizational measures should be intercepted using safety time. and save these as your defaults: Processing key Create purchase req. Any delivery delays. it is apparent that the pump R-F1## is sold in larger quantities. the pump is to be planned. Uncertainties in planning are to be taken into account using dynamic safety stock. 1. Delivery schedules NETCH 2 3 Continued on next page Current month +4 70 Current month +5 120 Current month +6 100 2004/Q3 © 2003 SAP AG. Now.

What is the available quantity at the end of the net planning segment? From the Stock/Requirements list. Refresh the stock/requirements list.Unit 6: Influencing the Planning Run SCM240 Create MRP list Planning mode Scheduling Also plan unchanged components Display material list Simulation mode 1 1 1 Select Select Do not select Display results before they are saved Do not select Before executing select Settings → Save and confirm the warning message. 7. multilevel requirements planning run one more time using the settings below and explain the result after you have refreshed the stock/requirements list. 6. Processing key Create purchase req. Refresh the stock/requirements list for the material R-F1## in the plant 1000. Delivery schedules Create MRP list Planning mode Scheduling Also plan unchanged components Display material list Simulation mode NETCH 2 3 1 1 1 Select Select Do not select Display results before they are saved Do not select Continued on next page 314 © 2003 SAP AG. 2004/Q3 . All rights reserved. 4. add a safety stock of 80 pieces in the material master for R-F1## in the plant 1000 in the MRP 2 view. Start the planning run by choosing Enter two times. What is the available quantity at the end of the net planning segment? Explain this shortage. 5. Execute a single-item.

Save the changes. execute single-item. 1. Determine that the available quantity differs from one month to another. Enter a coverage profile of 002 instead. Continued on next page 2004/Q3 © 2003 SAP AG. Display results before they are saved Do not select Refresh the stock/requirements list. All rights reserved. From the Stock/Requirements list Change the material master for R-F1## in the plant 1000 as follows: Delete the Safety Stock . the definition of static safety stock does not seem practical. Open an additional session and check the range of coverage profile 002 in plant 1000 in the Customizing for MRP. 315 . What is the available quantity in the current month + 4? Reconstruct the calculation method. The safety stock should adjust to the requirements situation more.SCM240 Lesson: Using Buffers in Planning Task 2: Dynamic Safety Stock Due to fluctuating demand. multilevel planning using the settings listed below: Processing key Create purchase req. Go to the Period totals display and view the details in Months . The range of coverage of the safety stock should be 5 days. What are the parameters for determining the average daily requirement and what values do these parameters have? From the stock/requirements list. Delivery schedules Create MRP list Planning mode Scheduling Also plan unchanged components Display material list Simulation mode 4. 2. NETCH 2 3 1 1 1 Select Select Do not select 3.

3. Remove the coverage profile before saving From the Stock/Requirements list. 2004/Q3 . In the Customizing for MRP. execute single-time. 1. 4. From the Stock/Requirements list for your R-F1## at plant 1000. do the availability dates correspond to the requirements dates? 2. multi-level planning for material R-F1## in plant 1000 with planning mode 3. create a period profile P## for the plant 1000 for the safety time with the description “Period profile group ##” for the period first day of current month + 5 to last day of current month + 6 with a safety time of 3 workdays.Unit 6: Influencing the Planning Run SCM240 Task 3: Safety Time in Planning During the months current month + 5 and current month + 6. 316 © 2003 SAP AG. and change your material master to by removing the safety time period profile P##in the MRP 2 view. From the Stock/Requirements list for your R-F1## at plant 1000. In the two critical months. 5. there are likely to be delivery delays on the part of production due to various reorganization measures. and change your material master to by entering the new period profile P## in the MRP 2 view. All rights reserved. Refresh the stock/requirements list. Save your entries.

Menu path: Logistics → Production → Production Planning → Demand Management → Planned Independent Requirements → Create Enter your material R-F1## and plant 1000 and press ENTER In the table tab. multilevel planning for the pump R-F1## in plant 1000. execute single-item. you will use static safety stock to buffer unpredictable demand. a) 3. create the following planned independent requirements for the pump R-F1## in the plant 1000: Current month +3 90 Save your entries. check the creation indicators. Delete the existing independent requirements for R-F1## at plant 1000. 1. and save these as your defaults: Processing key Create purchase req. All rights reserved. and the need to assure high customer service on your R-F1## pump.SCM240 Lesson: Using Buffers in Planning Solution 9: Dynamic Safety Stock Task 1: Static Safety stock Due to minor fluctuations in demand. Delivery schedules Create MRP list Planning mode Scheduling Also plan unchanged components NETCH 2 3 1 1 1 Select Current month +4 70 Current month +5 120 Current month +6 100 Continued on next page 2004/Q3 © 2003 SAP AG. In the initial screen of the planning run. select the row with the existing requirements and select Delete line item Now. 317 . From the Stock/Requirements list. a) b) c) 2.

Start the planning run by choosing Enter two times. What is the available quantity at the end of the net planning segment? a) Quantity available for planning at the end of the net requirements planning segment: 0 pieces. 5. Reason: The newly entered safety stock flows into the net requirements calculation as a requirement. a) Change the material master from the stock/requirements list through Environment → Change Material or through Menu Path: Logistics → Production → Master Data → Material Master → Material → Change → Immediately 6. multilevel requirements planning run one more time using the settings below and explain the result after you have refreshed the stock/requirements list. multi-level MRP button at the top. What is the available quantity at the end of the net planning segment? Explain this shortage. add a safety stock of 80 pieces in the material master for R-F1## in the plant 1000 in the MRP 2 view. Refresh the stock/requirements list. All rights reserved. Delivery schedules Create MRP list Planning mode NETCH 2 3 1 1 Continued on next page 318 © 2003 SAP AG. 7. From the Stock/Requirements list. Menu path: Logistics → Production → MRP → Planning → Evaluations → Stock/Requirements list (MD04) Select the Single-item.Unit 6: Influencing the Planning Run SCM240 Display results before they are saved Do not select Display material list Simulation mode Select Do not select Before executing select Settings → Save and confirm the warning message. Processing key Create purchase req. a) b) 4. Refresh the stock/requirements list for the material R-F1## in the plant 1000. a) Quantity available for planning at the end of the net requirements planning segment: Minus 80 pieces. 2004/Q3 . Execute a single-item.

The range of coverage of the safety stock should be 5 days. All rights reserved. 1.SCM240 Lesson: Using Buffers in Planning Scheduling Also plan unchanged components Display material list Simulation mode a) 1 Select Select Do not select Display results before they are saved Do not select The available quantity at the end of the net requirements planning segment is 0 pieces. 319 . the select Save Continued on next page 2004/Q3 © 2003 SAP AG. Save the changes. a) b) c) Menu path: Logistics → Production → MRP → Planning → Evaluations → Stock/Requirements list (MD04) From the stock requirements list select Environment → Change Material Select the MRP 2 view and make the necessary changes. the definition of static safety stock does not seem practical. From the Stock/Requirements list Change the material master for R-F1## in the plant 1000 as follows: Delete the Safety Stock . The requirement from the safety stock was fulfilled as a result of requirements planning. Task 2: Dynamic Safety Stock Due to fluctuating demand. The safety stock should adjust to the requirements situation more. Enter a coverage profile of 002 instead.

Determine that the available quantity differs from one month to another. Go to the Period totals display and view the details in Months . 2004/Q3 . All rights reserved. c) Parameters for determining the average daily requirement: 3. What are the parameters for determining the average daily requirement and what values do these parameters have? a) b) Follow system menu: System → Create Session IMG Menu path: Production → Material Requirements Planning → Planning → MRP Calculation → Define Range of Coverage Profile (Dynamic Safety Stock) Select the line for plant 1000 and profile 002. Select Number of periods: 3 Type of period length: 3 (standard days) Days per period: 20 Details.Unit 6: Influencing the Planning Run SCM240 2. multilevel planning using the settings listed below: Processing key Create purchase req. Delivery schedules Create MRP list Planning mode Scheduling Also plan unchanged components Display material list Simulation mode a) NETCH 2 3 1 1 1 Select Select Do not select Display results before they are saved Do not select 4. What is the available quantity in the current month + 4? Continued on next page 320 © 2003 SAP AG. Open an additional session and check the range of coverage profile 002 in plant 1000 in the Customizing for MRP. Refresh the stock/requirements list. From the stock/requirements list. execute single-item.

Refresh Switch to Period Totals. Select your entry P## and double click on the folder to the left called Periods from/to Select New Entries and enter the date parameters specified above Select Save. create a period profile P## for the plant 1000 for the safety time with the description “Period profile group ##” for the period first day of current month + 5 to last day of current month + 6 with a safety time of 3 workdays. there are likely to be delivery delays on the part of production due to various reorganization measures. b) c) d) e) f) Continued on next page 2004/Q3 © 2003 SAP AG. In the Customizing for MRP. a) b) c) To update the stock/requirements list. 321 . period profile.83 pieces/day 4. Save your entries. a) Menu path: Customizing-Production → Material Requirements Planning → Planning → MRP Calculation → Define Period Profile for Safety Time/Actual Range of Coverage Select New Entries Enter the plant. 1.16 pieces 24. All rights reserved.16 pieces rounds up to 25 pieces Task 3: Safety Time in Planning During the months current month + 5 and current month + 6.SCM240 Lesson: Using Buffers in Planning Reconstruct the calculation method. select To view the period totals in months select and select the Months tab.83 pieces/day x coverage range 5 days = 24. and description from above and press ENTER. Available quantity in Current month + 4: 25 pieces Calculation method: Planned independent requirements from 3 periods: Period 1: Current month + 4: 70 pieces Period 2: Current month +5: 120 pieces Period 3: Current month + 6: 100 pieces Total: 290 pieces 290 pieces divided by 3 x 20 days = 4.

From the Stock/Requirements list. do the availability dates correspond to the requirements dates? Answer: No. 2004/Q3 . enter your Safety Time Period Profile P##. Remove the coverage profile before saving a) b) c) Menu path: Logistics → Production → MRP → Planning → Evaluations → Stock/Requirements list (MD04) From the stock requirements list select Environment → Change Material Select the MRP 2 view and make the necessary changes. multi-level planning for material R-F1## in plant 1000 with planning mode 3. and set Safety time indicator to 1. Reason: Due to the period profile entered with a safety time of 3 workdays. and remove the Coverage profile 002. Select Save 322 © 2003 SAP AG. 5. a) b) c) From the stock requirements list select Environment → Change Material Select the MRP 2 view and make the necessary changes. and remove the safety time period profile P## and the safety time indicator of 1. 4. and change your material master to by entering the new period profile P## in the MRP 2 view. In the two critical months. a) Select Single-item. All rights reserved. and change your material master to by removing the safety time period profile P##in the MRP 2 view. the availability dates are 3 workdays before the requirements dates in the defined period.Unit 6: Influencing the Planning Run SCM240 2. From the Stock/Requirements list for your R-F1## at plant 1000. From the Stock/Requirements list for your R-F1## at plant 1000. Select Save d) 3. Multi-Level at the top of the S/R list Refresh the stock/requirements list. execute single-time.

All rights reserved. 323 .SCM240 Lesson: Using Buffers in Planning Lesson Summary You should now be able to: • Describe the different methods of modeling buffers in the planning run • Demonstrate how several of the different methods of safety stock work 2004/Q3 © 2003 SAP AG.

Lesson Objectives After completing this lesson. These shortage quantities must be covered by receipt elements. You will also learn about special lot-sizing procedures for make-to-order production. 324 © 2003 SAP AG. An Overview to Lot-Sizing Procedures In the net requirements calculation. the system determines the shortage quantities on the respective requirements dates. Within the material master lies a definition that controls the quantity for each proposal and number of proposals in planning run.Unit 6: Influencing the Planning Run SCM240 Lesson: 270 Controlling order quantities in the planning run Lesson Duration: 45 Minutes Lesson Overview In this lesson. Demonstrate using the fields in the material master to control specific planned order quantities based on business requirements. All rights reserved. it is your responsibility to see that inventories are kept to a minimum on all products. you will learn about lot-sizing procedures and how to optimize these procedures. Explain the configuration process of Lot Size techniques. you will be able to: • • • • Demonstrate how Lot size techniques an influence the size of a planned orders Demonstrate how use several fields in the material master to influence the size of a planned order Explain how planning calendars can be used to specifically coordinate the quantity and timing of receipts. ] Business Example As a senior production planner. [Enter a description of what the instructor should discuss with the participants about the context of the lesson. 2004/Q3 .

and optimizing. You assign the procedure to a material on a plant basis in the material master (MRP 1) or per MRP area in the MRP area segment of the material. below which the lot size is not allowed to fall) Maximum lot size (maximum procurement quantity for each lot) Rounding value (the system rounds up to a multiple of the rounding value) Rounding profile (for the creation of scaled rounding) You define the different lot-sizing procedures in the Customizing activity “Check Lot-Sizing Procedure”. There are three groups of lot-sizing procedures: static.SCM240 Lesson: Controlling order quantities in the planning run Figure 98: Overview: Lot-Size Calculation You can define how the lot sizes are calculated by selecting the lot-sizing procedure when maintaining the material master record (MRP 1). You can also enter restrictions in the material master that the system is to take into account when forming the lot sizes: • • • • Minimum lot size (minimum procurement quantity. All rights reserved. The result of the lot-size calculation is the quantity to be produced or procured. which you can change and display in the order proposal. 325 . periodical. 2004/Q3 © 2003 SAP AG.

If there are several requirements for one day. If you use the fixed lot size. Note: This technique is recommending in use with Make-to-Order based strategies. or more frequently batches with a fixed yield. If this order proposal does not sufficiently cover the requirements. 326 © 2003 SAP AG. All rights reserved. the system creates an order proposal for the amount of the fixed lot size should material shortages occur. the system creates an order proposal for the amount of the material shortage. the system creates as many additional order proposals for the same date in this lot size as are necessary to cover the requirements. Fixed lot sizes are often used to order things in specific quantities. In static lot-sizing procedures. which leads to a shortage.Unit 6: Influencing the Planning Run SCM240 Static Lot-Sizing Procedures Before initiating a planning run. like truck loads. The following static lot-sizing procedures are available: • • • • Lot-for-lot order quantity Fixed lot size Fixed lot size with splitting and overlapping Replenishment up to maximum stock level Figure 99: Static Lot-Sizing Procedures With the lot-for-lot order quantity. 2004/Q3 . shift based production. only one procurement proposal for the total shortage quantity is created in SAP ERP Enterprise for this date. the procurement quantity is calculated exclusively by means of the quantity specifications entered in the material master. planners must decide how they choose to influence the lot size of a planning run.

if a material shortage occurs. Capacity should be available to cover the requirement whenever production is needed. unless instructed by the master data. you can instruct the system to order enough to bring the stock level up to the maximum stock level and also to cover all requirements. This grouping will allow planners to create one replenishment to cover several periods. Figure 100: Period Lot-Sizing Procedures 2004/Q3 © 2003 SAP AG. If a product does not cycle into production that often and demand is low.SCM240 Lesson: Controlling order quantities in the planning run Caution: This lot-sized Technique will typically cause the available balance to be greater than zero. one should consider grouping together requirements. Caution: However. When replenishing to the maximum stock level. a planner should review the demand and capacity situations. it would be prudent to review the capacity plan. All rights reserved. Periodic Lot-Sizing When considering what lot-size techniques to apply to a material. Note: You can use this lot-sizing procedure with reorder point planning or MRP. a procurement proposal is created for the amount defined in the material/ master record as the maximum stock level. but change over costs high. A balanced stock/requirements situation takes priority over the lot-sizing procedure. 327 . If the shortage quantity for a day is larger than the maximum stock level. As a variant. the lot size is then the same as the shortage quantity. as the planning run will not split a replenishment amongst several supply options.

If. All rights reserved. or on the date of the first requirement. by maintaining the relevant value in the Scheduling field in the Customizing step. the date of the planned order that is generated is accordingly moved. the number is entered in the No. in Customization. months. 328 © 2003 SAP AG. period finish. the system groups the procurement of the requirements quantities within a period defined by the planning calendar in one lot. weeks. Figure 101: Lot Size According to Planning Calendar In certain situations planners need to be more specific in the procedure to group quantities together for lot-sizing. or freely defined periods according to the planning calendar. or a certain product is always scheduled to be manufactured on a certain day of the week. You can freely define the number of periods within which to summarize the procurement quantities. Within in the lot-size procedure you can control the placement of the resulting receipt at the period start. you may have a vendor that request that they deliver every Wednesday. the system groups procurement of requirements quantities within one period in one lot size. you have defined that the availability date is at the start or finish of the period. 2004/Q3 . of periods field in the SAP ERP Customizing step Production → MRP → Planning → Lot Size Calculation → Check Lot-Sizing Procedure for the lot-sizing procedure selected in the SAP ERP material master.Unit 6: Influencing the Planning Run SCM240 In the periodic lot-sizing procedures. You assign a planning calendar to a material on a plant basis in the SAP ERP material master (MRP 2 view) or per MRP area in the MRP area segment. For example. In the period lot-sizing procedure according to the planning calendar. The specifics of periodic lot-sizes are controlled in customizing. If the number of periods is to be larger than one. The period lengths can be days.

Weekdays . Select Change Element. You can specify the workday(s) of the planning calendar according to the workdays defined in the factory calendar. 329 .Example: period start on every fifth workday of the month.Example: period start on Monday and Wednesday every week Months (weekdays) . select one of the planned independent requirements and select 2. 2004/Q3 © 2003 SAP AG. Details of element. The calculation rule determines the calculation of the periods for the planning calendar.Example: period start on every second Wednesday of the month Months (workdays) . Years (workdays) . From the S/R list for R-F1## at plant 1000. Workdays . non-work days (weekends and holidays).Example: period start on every second Wednesday from a particular start date • • • Demonstration: Periodic lot sizes Purpose System Data System: Client: User ID: Password: Set up instructions: 1.SCM240 Lesson: Controlling order quantities in the planning run You maintain a planning calendar (period divisions) in the master data in the MRP menu in SAP R/3 Enterprise or in the Customizing activity Maintain Planning Calendar.Example: period start on every fifth workday of the year You can specify the workday(s) of the planning calendar according to the workdays defined in the factory calendar. When defining the planning calendar the user much chose a calculation rule.Example: period start on every fifth workday from a particular start date You can specify the workday(s) of the planning calendar according to the workdays defined in the factory calendar. The factory calendar will define work days. All rights reserved. The basis of the planning calendar will be a factory calendar that will be assigned during the definition process. Some examples are : • • • Weeks (weekdays) .

Create a calendarSCM. Select Save.Unit 6: Influencing the Planning Run SCM240 3. 2004/Q3 . Therefore select Weeks (weekdays). 2.Three day lot size Save and re-run MRP and refresh the S/R list. at plant 1000. Refresh the stock requirements list. System Data System: Client: User ID: Password: Set up instructions: 1. 6. Change the start date to the first day of the current month and then end date Continue (enter) to specify the month to the last day of next year select in which the calendar will be generated from 7. 3.day. 4. Demonstration: Planning Calendar Purpose Demonstrate how planning calendars are used. Select Save 330 © 2003 SAP AG. 6. All rights reserved. In the area Calculation rule for period specification set the period to begin on 3 . Goto the schedule lines tab and in the split column enter d . 5. 7. 5. Run MRP and refresh again From the S/R list change the material and enter a lot-size technique of 3D . Select Enter.Wednesday. Leave the work period settings as is and press ENTER We want to delivery product every Wednesday of every week. 4. Follow the menu Path: Logistics → Production → MRP → Master Data → Planning Calendar → Create Periods. with a description of SCM240 Demo. for one of the periods of demand Hint: Enter through and warnings about the planning time fence. Set a minimum period of 30 days.

Change the Lot-size technique for material master for R-F1## to PK Period. From the S/R list run MRP to see the results. You assign the storage costs indicator to the material master (or per MRP area).SCM240 Lesson: Controlling order quantities in the planning run 8. All planned orders should be arriving on a Wednesday. 10. 2004/Q3 © 2003 SAP AG. 331 . The system determines the storage costs based on the storage costs indicator. The formula for calculating storage costs is then: Storage costs = Requirement x Price x Storage cost interest rate x Time in storage / 100 / 365. You enter the ordering costs in the material master (MRP 1) or. Select Save 9. Based on the first material shortage date determined in the net requirements planning. The optimizing lot size procedures differ only by the type of the minimum cost. where applicable. which you define in the Customizing activity “Check Lot-Sizing Procedure” by entering a storage cost interest rate. All rights reserved. LS according to Planning Calendar. the system groups requirements until the optimum cost has been reached. in the MRP area segment. Optimizing Lot-Sizing Procedures Figure 102: Optimizing Lot-Sizing Procedures Optimizing lot-sizing procedures optimize the total costs resulting from lot size fixed (order and setup costs) and storage costs. Set the planning cycle to SCM.

Your formula is approved for between 10. Note: The minimum and maximum work well together in batch related production.000 kgs. When using the minimum lot size the planning run will generate a replenishment for the minimum quantity identified in the product master. All rights reserved. the system takes into account these limiting values. If the requirement is larger than the minimum. During lot-size calculation. you can define limiting values (minimum lot size. 332 © 2003 SAP AG. Figure 103: Minimum Lot Size / Maximum Lot Size For example.Unit 6: Influencing the Planning Run SCM240 Part period balancing: Sum of storage costs equals lot-sized fixed costs Least unit cost procedures: Minimum total costs per piece Groff reorder procedure: Groups requirements quantities in one lot until the rise in the average storage costs per period is greater than the reduction in the order costs per period. there is another set of other parameters in the material master that can influence the quantities in the replenishment suggestions generated by the planning run. The maximum lot-size places ceiling on the size of the replenishment order. Additional Lot-Size Influences In addition to configurable lot-size techniques. If the requirement exceeds the maximum the system will generate another replenishment on the same day till the requirement is fulfilled. the system will refer back to a lot-for-lot result. 2004/Q3 .000 kgs and 100. maximum lot size). Dynamic planning invoice: Groups the requirement quantities in one lot until the additional storage costs are greater than the lot size fixed costs.

you can use rounding profiles.SCM240 Lesson: Controlling order quantities in the planning run Caution: Using minimums and maximums will cause your available balance to exceed zero. if the material is only delivered in complete pallets). Production → MRP → Planning → Lot Size Calculation → Maintain Rounding profile (OWD1)A rounding profile consists of the threshold value and the rounding value. You define the rounding profiles in Customizing. pallet size. The rounding value is the value to which the system should round up as soon as the threshold value is exceeded. In addition to that. A rounding profile is used to define settings for rounding up or rounding down the order proposal quantity into deliverable units. Figure 104: Rounding Another technique for influencing the lot-size is by rounding the production quantities up. the system will determine during lot-size calculation that the lot size quantity to be created in increments of a specified quantity (for example. 333 . By specifying a rounding value. The threshold value is the value from which the system rounds up to the value of the next deliverable unit. Requirement 1 2 Procurement Qty 1 5 2004/Q3 © 2003 SAP AG. for example. All rights reserved. You can define several combinations of threshold and rounding values for a rounding profile.

for a requirement of 7 pieces. From the S/R list for R-F1## at plant 1000. the system checks how many times 5 fits into 7. This results in a procurement quantity of 5 pieces (1x5 = 5). consisting of a threshold value and a rounding value. A simulation is available for checking the rounding profile Customizing settings. The system rounds up the remaining 2 pieces to 5 pieces. Thus. the system checks how many times 40 in fits into 74. 2004/Q3 . All rights reserved. Demonstration: Rounding Purpose To learn about rounding System Data System: Client: User ID: Password: Set up instructions: 1. This results in a procurement quantity of 40 pieces (1x40 = 40).Unit 6: Influencing the Planning Run SCM240 6 7 21 31 32 41 74 Hint: • 10 10 25 35 40 45 80 • For a requirement of 7 pieces. The system rounds up the remaining 34 pieces to 40 pieces.lot for lot and set a rounding profile to 0002 . For a requirement of 74 pieces. for a requirement of 74 pieces. The Rounding profile. create a new static rounding profile: Rounding profile 0002 in plant 1000: 334 © 2003 SAP AG. one procurement proposal is created for 10 pieces.SCM240 (E) Demo 2. Thus. change the material master by setting the lot-size technique to EX . a procurement proposal is created for 80 pieces.

Figure 105: Special Lot-Sizing Procedures Since lot-sizes are controlled in configuration.SCM240 Lesson: Controlling order quantities in the planning run Level 1: Threshold value 2. 3. special adjustments need to be made. rounding value Level 2: Threshold value 32. Refresh and explain the results Special Lot-Sizing Procedures When planners run across special situations such a multiple sources of supply or make-to-order. and Re-run MRP. 2004/Q3 © 2003 SAP AG. This is why it might be necessary to have several profiles set up to adapt to other master data or the planning situation itself. All rights reserved. planners will not always have the chance to configure new techniques on fly. rounding value 40 Demonstrate how the rounding profile works using the simulation (from 1 to 200). However. 335 . exit without saving. Save the material Master. the line item can become make to order and periodic lot sizes could cause a built in inventory. Planners may run into a situation where the material is typically make-to-stock and therefore have special lot size parameters. when a sales order is assigned a certain requirements type.

• Certain products will have the opportunity to be multi-sourced. The system calculates the order quantity using the lot-for-lot order quantity and it also takes the rounding quantity or the minimum and maximum lot sizes into account he system calculates the order quantity using the lot-sizing procedure specified in the short-term period. All rights reserved. By setting the “splitting quota” indicator in the Customizing for lot-size procedures. planners can set up quota arrangements which will split the demand between the multiple sources. you can distribute the procurement quantity across various sources. To do this. These quantities are not produced at the same time. but rather in regular.Unit 6: Influencing the Planning Run SCM240 Figure 106: Lot Size Configuration When configuring a lot-size technique which may at times be used for make-to-order situating planners can set a parameter in configuration called MTO Lot Size. You can select the following procedures: • • The system calculates the order quantity using the lot-for-lot order quantity. overlapping 336 © 2003 SAP AG. This is normally done by reviewing each requirement to determine its supply source. you must set the quota arrangement usage indicator in the material master record (Purchasing or MRP 2 view). 2004/Q3 . You use this indicator to control the selection of the lot-sizing procedure for make-to-order production and for project production. or made with more than one production version. In this situation. By setting this flag you will split each requirement by the designated quota arrangement settings. You maintain the portions of the various sources in the quota arrangement in the master data of purchasing. You can set the “overlapping” indicator for all lot-sizing procedures in Customizing in order to distribute the order quantity into partial quantities. These may be products that are purchased from one or more vendors or products that can be transferred from more than one plant.

just as for the other lot-sizing procedures. as well as the end of the short-term/beginning of the long-term periods using the key of the lot-sizing procedure. depending on the lot-size procedure. You defined the length of the short-term area by entering the periodicity (for example. You also maintain the tact time and. in the Customizing for MRP in the IMG activity “Check Lot-Sizing Procedures”. To create planned orders in a lot-for-lot environment for 18 months would consume precious processing time. It is therefore possible to receive a rough preview of the future master production schedule in the long-term area and to have a more precise analysis in the short-term area. planners loose interest in the details and want rough numbers. the maximum lot size or the rounding value. Figure 107: Long-Term Lot Size Certain materials based on their popularity or long lead time may have a long demand horizon. Procurement proposals can overlap in the future and in the past. Creating larger lots in the long-term area has a particularly positive effect on performance.SCM240 Lesson: Controlling order quantities in the planning run periods. All rights reserved. You maintain the settings for the long-term lot size. enabling the lot-size calculation to be carried out using different lot-sizing procedures in these two areas. If a material is planned with short-term and long-term lot sizes. month. week) and the number of periods. The purpose of the long-term lot size is to divide the time axis for MRP into a short-term and a long-term area. After a certain point in the horizon. 337 . You can define the lot size that is to be used in the short-term period and the lot size that is to be used in the long-term period. the period of validity of both lot-sizing procedures is determined during the planning run. The order quantities in the short-term horizon are calculated using the lot size in the 2004/Q3 © 2003 SAP AG.

showing it first in Customizing. and also maintain the “Max. Lot-size with splitting quota: Splitting the lot across various sources according to the quota in the master data for purchasing. reset the settings. execute material requirements planning and explain the results. Demonstration: Special Lot-Sizing Procedures Purpose To learn about special lot-sizing procedures System Data System: Client: User ID: Password: Set up instructions: 1. The material is then included in planning after the maximum MRP interval has been processed and is planned with the short-term lot size. with which the individual lots are to be drawn alternately from various sources. The planning order would then be converted in the long-term lot size. which was used for the demonstration of safety stock. 2004/Q3 . and a rounding value (40 pieces). 3. Lot-size with overlapping: Forward or backward overlapping (in time) of partial quantities of an order. The material is then not included in new planning when using NETCH or NETPL planning. 338 © 2003 SAP AG. possible demonstration based on lot-sizing procedure FS. 2. set overlapping to “-”. Explain this in Customizing using lot-sizing procedures FX and FK. you can set the “Recurring MRP” indicator in Customizing for the MRP type of the material. the lot-sizing procedure is defined specially for make-to-order production. and then entering it in the material master R-F1## (MRP 1). the system always rounds up to the beginning of the next full long-term period. talk time (1 AT). All rights reserved. To calculate this date. The system switches to the long-term lot size on the date from which the long-term lot size is valid. and remove any range of coverage profile that may exist. you must also set the “splitting quota” indicator in the Customizing for the lot-size procedure and the quota arrangement usage indicator in the material master (purchasing and MRP 2 views). if required. MRP Interval” in the MRP group. enter a fixed lot size (120 pieces).Unit 6: Influencing the Planning Run SCM240 short-term area. Do not confuse this with the quota arrangement in the procurement type segment. For each lot-sizing procedure. finally. In order to prevent this from occurring. It is possible that a material planned using long-term lot size is not changed.

you will be able to: • Demonstrate and explain how lot sizing parameters affect the results of the planning run.SCM240 Lesson: Controlling order quantities in the planning run 283 Exercise 10: Controlling Order Quantities in the Planning Run Exercise Duration: 25 Minutes Exercise Objectives After completing this exercise. After conversations with your pump production manager. From the S/R 2. Therefore. 339 . However. you need to change the demand into smaller buckets of time. you will not have enough capacity to cycle in and produce the R-F1##. you must test several lot-size parameters to ensure they do not affect your inventory or replenishment plans in a negative way. Take the monthly requirements and split them into daily buckets. System Data System: Client: User ID: Password: CATT: Set up instructions: Task: Lot-size Parameters in the Planning Run As the senior planner. it is import that you be able to answer all questions regarding the planning run. it is your responsibility to ensure low inventories but also high efficiency in procurement and production. Business Example As the senior planner. 1.lot-for-lot parameter. From the stock/requirements list of your product R-F1## at a plant 1000. after reviewing the demand you can run it about every three days. Run MRP to correct the plan using the Ex . Test several different lot-size parameters to showcase their affects on the replenishment proposals. All rights reserved. Lot size parameters will have a major influence in the efficiency of the production floor as well as the amount of product in inventory. Continued on next page 2004/Q3 © 2003 SAP AG. 3.

change the material master so the R-F1## at plant 1000. Your pumps fit 6 to a pallet in the warehouse. change the material master so that R-F1## at plant 1000. 8. All rights reserved. Make sure that your lot size is in pallet increments. He figures to meet minimum profitability on the shop floor he must produce a minimum of 25 pumps with every production run. will group together two weeks of demand into one requirement as well as round up to pallet quantities. will group together two weeks of demand into one requirement. 4. he is still not happy. you want to clean things up. change the material master so that R-F1## at plant 1000. From the S/R list. will group together three days of demand into one requirement. 340 © 2003 SAP AG. From the S/R list. From the S/R list. After further conversations with your pump production manager. Re-run MRP to review the results. Now that the two week lot size is more manageable. Re-run MRP to review the results. the 25 pcs is still too small. 6. change the material master so that R-F1## at plant 1000. on a lot-to-to basis for lot sizing. Re-run MRP to review the results. 2004/Q3 . After reviewing the results with your production manager.Unit 6: Influencing the Planning Run SCM240 list. Re-run MRP and review the results use the default settings for the planning run. Set a minimum lot-size of 25 pcs for R-F1## at plant 1000. 7. How would you accomplish this in MRP? 5.

However. you must test several lot-size parameters to ensure they do not affect your inventory or replenishment plans in a negative way. From the stock/requirements list of your product R-F1## at a plant 1000. and select the Lot-size From the S/R list select data tab to ensure it is set to EX. Hint: Enter through and warnings about the planning time fence. Select the Single-item. it is your responsibility to ensure low inventories but also high efficiency in procurement and production. e) 2. after reviewing the demand you can run it about every three days.day. From the S/R Continued on next page 2004/Q3 © 2003 SAP AG.lot-for-lot parameter. you need to change the demand into smaller buckets of time. Multi-level MRP button to execute MRP and then select Refresh update to see the new results. for the periods of demand. Select Save. Take the monthly requirements and split them into daily buckets. 1. After conversations with your pump production manager. Therefore. Run MRP to correct the plan using the Ex . a) b) Expand header. lines tab and in the split column enter d . select one of the planned independent requirements and select c) d) Select Change Element.SCM240 Lesson: Controlling order quantities in the planning run Solution 10: Controlling Order Quantities in the Planning Run Task: Lot-size Parameters in the Planning Run As the senior planner. a) b) Follow the menu path: Logistics →Production → MRP → Evaluations → Stock/Requirements lists (MD04) From the S/R list for R-F1## at plant 1000. 3. All rights reserved. Details of element Goto the Sched. 341 . you will not have enough capacity to cycle in and produce the R-F1##.

Two Week Lot Size Select Save. Now that the two week lot size is more manageable. set the lot size to 3D .2W . will group together two weeks of demand into one requirement. From the S/R list. Set a minimum lot-size of 25 pcs for R-F1## at plant 1000. change the material master so that R-F1## at plant 1000. the 25 pcs is still too small. he is still not happy. Re-run MRP and review the results use the default settings for the planning run. Select the Single-item. change the material master so that R-F1## at plant 1000. 2004/Q3 . Refresh update to see the new results. He figures to meet minimum profitability on the shop floor he must produce a minimum of 25 pumps with every production run.Unit 6: Influencing the Planning Run SCM240 list. Re-run MRP to review the results. How would you accomplish this in MRP? Answer: A minimum lot size would allow you to set a minimum of 25 units but if requirements were higher. Multi-level MRP button to execute MRP and then select After reviewing the results with your production manager. a) b) c) d) 4. you want to clean things up. a) b) c) d) From the S/R list Environment → Change In the MRP 1 view set the minimum lot. All rights reserved. a) b) c) d) From the S/R list Environment → Change In the MRP 1 view set the lot size to . will group together three days of demand into one requirement. the system would propose a larger quantity. Your pumps fit 6 to a pallet in the warehouse. Multi-level MRP button to execute MRP and then select 6. Re-run MRP to review the results. From the S/R list Environment → Change In the MRP 1 view. change the material master Continued on next page 342 © 2003 SAP AG. Select the Single-item. Multi-level MRP button to execute MRP and then select 7. After further conversations with your pump production manager. From the S/R list. Select the Single-item. Refresh update to see the new results.Three day lot size Select Save. Make sure that your lot size is in pallet increments.size to 25 pcs Select Save. Refresh update to see the new results. 5.

EX .SCM240 Lesson: Controlling order quantities in the planning run so that R-F1## at plant 1000. Select Save.2W . Re-run MRP to review the results. 343 . Select the Single-item. will group together two weeks of demand into one requirement as well as round up to pallet quantities. Refresh update to see the new results. All rights reserved. From the S/R list Environment → Change In the MRP 1 view set the lot size to . a) b) c) d) e) 8. Multi-level MRP button to execute MRP and then select From the S/R list. change the material master so the R-F1## at plant 1000. on a lot-to-to basis for lot sizing. 2004/Q3 © 2003 SAP AG.Lot for Lot and remove the rounding value. Select Save.Two Week Lot Size Set the rounding value to 6. a) b) c) From the S/R list Environment → Change In the MRP 1 view set the lot size to .

2004/Q3 . 344 © 2003 SAP AG.Unit 6: Influencing the Planning Run SCM240 Lesson Summary You should now be able to: • Demonstrate how Lot size techniques an influence the size of a planned orders • Demonstrate how use several fields in the material master to influence the size of a planned order • Explain how planning calendars can be used to specifically coordinate the quantity and timing of receipts. • Explain the configuration process of Lot Size techniques. All rights reserved.

In this lesson.SCM240 Lesson: Multi-Site Planning Lesson: 289 Multi-Site Planning Lesson Duration: 30 Minutes Lesson Overview In this lesson. planners must always consider the source of supply. you will gain an overview of stock transfer options. 345 . 2004/Q3 © 2003 SAP AG. Overview of Stock Transfers and Transfer Postings During the initial design process of materials planning. Business Example Some of your make to stock pumps are sold out of several of your distribution centers but are manufactured in several locations.Inventory Management and Physical Inventory (5 days) SCM680 . If customers wish to know more details direct them to the following classes: • • • SCM500 . All rights reserved. you will familiarize yourself with stock transport orders for the transfer of material within a company code. and must replenish their supply form other locations. Examine how to use the SAP ERP functions to model this process. Hope to deliver a demo at a later time. Often time planners are faced with situations where some locations such as distribution centers do not perform any manufacturing activities.Cross Application Business Process (2 days) Do not allow students to get into a debate. you will be able to: • • Explain how to perform Cross location planning in SAP ERP Demonstrate how cross location planning work in SAP ERP This is lesson is not to discuss Stock transfers in detail but how it is involved in planning. Lesson Objectives After completing this lesson. This situation will often require stock to be transferred from another location.Processes in Procurement (5 days) SCM510 . Currently we cannot ship between locations 1000 and 2400 since they belong to different purchase orgs.

Figure 108: The Stock Transfer Procedures 346 © 2003 SAP AG. the plants between which material is transferred can belong either to the same company code or to different ones. In the case of a plant-to-plant stock transfer. All rights reserved. a physical goods movement always takes place. Using SAP ERP the process can be accomplished through many different methods called transfer postings or stock transfers.Unit 6: Influencing the Planning Run SCM240 When organizations follow a make-to-stock process. A change of the stock ID or stock type of a material is prominent in transfer postings. In stock transfers. cross-plant stock transfers can only be booked out of unrestricted-use stock. Transfer postings do not need to be connected to an actual goods movement. 2004/Q3 . however. As a general rule. forecasts will be placed at distribution centers and the periodic resupply must be a planned process.

In contrast to a storage-location-to-storage-location stock transfer. The stock transfer is valuated at the valuation price of the material in the issuing plant. All rights reserved. Several procedures are available for the physical transfer of materials from one plant to another: • • One-step procedure Two-step procedure Possible reasons for a stock transfer using the two-step procedure are that the plants are located a long distance from each other and the goods remain in transit for a certain time. An accounting document is generated parallel to the material document for the stock transfer. each of whom can post movements only in his or her own plant. two accounting documents are created at the time of posting: one for each company code. • Financial Accounting (only if the two plants are assigned to different valuation areas): A cross-plant stock transfer leads to a value update in the stock accounts. The procedures used to execute a stock transfer posting solely use the component MM . • Material Requirements Planning (MRP): A change in the plant stock is taken into account by MRP. 2004/Q3 © 2003 SAP AG.materials management. An accounting document is generated parallel to the material document for the stock transfer. Hint: If the stock transfer is entered in two separate steps. • • Stock transport order without delivery Stock transport order with delivery via shipping (also possible with billing document).SCM240 Lesson: Multi-Site Planning A stock transfer between two plants can be executed using different procedures. 347 . valuation always takes place at the time of the first step. a plant-to-plant transfer affects Financial Accounting and Material Requirements Planning. A cross-plant stock transfer leads to a value update in the stock accounts. The offsetting entry to the stock posting is then made to a company-code clearing account. The stock transfer is valuated at the valuation price of the material in the issuing plant. or that a different employee is responsible in each plant. In the case of a cross-company-code stock transfer.

issuing plant. Figure 109: One Step Stock Transfer Posting In the case of the one-step procedure. This transaction is accomplished by using the normal transfer posting transaction MB1B.Unit 6: Influencing the Planning Run SCM240 One Step Stock Transfer (Transfer Posting) When companies want a very simple process of transferring stock from one plant to another. Hint: This situation often works when a plant and distribution center (two plant codes) share the same physical location. such as the material. 2004/Q3 . receiving plant. The movement type (in the standard system) is 301. This will typically be used when plants are a short distance from each other and transit time is not an issue and is not needed for planning purposes. and receiving storage location in this one step. the goods issue and goods receipt are posted in a single material document. Demonstration: One Step Stock Transfer Purpose Demonstrate how a one step stock transfer posting is performed 348 © 2003 SAP AG. issuing storage location. they can make use of the one step procedure. All rights reserved. You must therefore enter all relevant data.

many members of management do not like the two step stock transfer posting since the shipping location is making the transaction. If there are issues with quantity discrepancies. Create material master for R-F1## at location 1200. Two Step Stock Transfer (Transfer Posting) When considering transferring stock between locations. Use movement type 301. create inventory for 200 pcs of R-F1## at location 1000. Create Transfer posting for 25 pieces for the R-F1## at location 1000 to the new product R-F1## at location 1200. 5. Materials Management → Inventory mgmt → Goods Movement → Goods Receipt → Other (MB1C). 4. Drill down on the Stock MRP Element and note the 25 pcs is in Unrestricted Stock. Acctg/costing Views 2. 349 . 2004/Q3 © 2003 SAP AG. SD view. MRP view. Materials Management → Inventory mgmt → Goods Movement → Transfer Posting (MB1B). All rights reserved. this could cause problems in planning since the material has already been posted to unrestricted stock. Use movement type 501.SCM240 Lesson: Multi-Site Planning System Data System: Client: User ID: Password: Set up instructions: 1. 3. Review the S/R list for R-F1## at location 1200.

you must specify the receiving plant in addition to the material and the issuing organizational levels.Unit 6: Influencing the Planning Run SCM240 Figure 110: Two Step Stock Transfer Posting In the case of the two-step procedure. System Data System: Client: User ID: Password: Set up instructions: 350 © 2003 SAP AG. Demonstration: Two Step Stock Transfer Posting Purpose Demonstrate how to perform a two step stock transfer posting. the quantity is booked out of stock in transfer and into unrestricted-use stock at the receiving plant. since the stock in transfer and the unrestricted-use stock at the receiving storage location belong to the same plant. movement type 305) with reference to the material document of the stock removal or enter all data manually. 2004/Q3 . All rights reserved. You can either enter the put away (placement in storage. when removing the material from storage (movement type 303). As a result of the put away. This is necessary because valuation of the stock transfer takes place when the material is removed from storage and posted to stock in transfer at the receiving plant. Valuation of the put away is not necessary.

Using Tcode MB1B. Review the on-hand inventory and review the details of it by double clicking on the Stock MRP element. In this case. 7. . Review the on-hand inventory and review the details of it by double clicking on the Stock MRP element. and notice the change to the On-hand balance is now 20 pcs due to the receipt. Review the on-hand inventory notice the increase and review the details of it by double clicking on the Stock MRP element. Hint: Movement types 557 (issue from stock in transit . you must report this as scrapping so that the system can correct the figure for the quantity of stock in transit. Transfer 20 pcs of inventory of the R-F1## in plant 1000 to the receiving plant 1200. 8. They are used to make adjustment postings for stock in transit.adjustment posting) and 558 (receipt to stock in transit . 5. Damage to Goods During Transportation If goods are damaged during transportation.adjustment posting) are reserved for use by SAP. Alternatively. Use Movement type 303 . Review the on-hand inventory and review the details of it by double clicking on the Stock MRP element.Transfer Posting Plant to Plant remove from storage Access the S/R list for R-F1## plant 2400. Use Movement type 305 . Transfer 20 pcs of inventory of the R-F1## in plant 1200. 2. This can be done in different ways: • Reverse the removal from storage at the issuing plant and then post the scrapping of the material at the issuing plant. • 2004/Q3 © 2003 SAP AG. the scrapping is posted on a value basis in the issuing plant. The scrapping is then posted on a value basis at the receiving plant. leading to their destruction. place the full quantity of the goods into storage at the receiving plant and then post the scrapping at the receiving plant. All rights reserved. Note the 20 pcs are still in inventory 4. Using Tcode MB1B. These movement types can only be posted with transaction MB1A. 6. 3. Note the 20 pcs are still in transfer. 351 .SCM240 Lesson: Multi-Site Planning 1.Transfer Posting Plant to Plant receive into storage Refresh S/R list for R-F1## at plant 1200. Access the S/R list for R-F1## plant 1000. Access the S/R list for R-F1## plant 1200.

For high volume products it is necessary to plan the replenishments of these locations in order to explode the demand through the entire supply chain and take into account the necessary lead times. Figure 111: Stock transfer in the material master record You define special procurement keys in the Customizing of MRPProduction → MRP → Master Data → Define Special Procurement Key. Stock Transfer and MRP Companies that engage in a make-to-stock environment. 352 © 2003 SAP AG. You can assign a special procurement key to the materials that are predominantly procured via a stock transport order from another plant. You can define the procurement type for the material within the MRP data in the material master record of the receiving plant.Unit 6: Influencing the Planning Run SCM240 It is important that the quantity destroyed does not remain in stock in transfer but is reported in the system as scrapped. 2004/Q3 . You define special procurement keys based on a plant-dependent basis. often store their product as close to the customer as possible in distribution centers. All rights reserved. If you set up special procurement keys for stock transfers. you must define a key for each supplying plant.

The quantity booked out is initially managed as stock in transit at the receiving plant. 353 . Stock Transfer Without Delivery This type of stock transfer involves not only Inventory Management but also purchasing at the receiving plant. A goods issue referencing this stock transport order is then entered in the issuing plant.SCM240 Lesson: Multi-Site Planning Figure 112: Stock Transfer Configuration In the case of a supply shortage. the program can generate purchase requisitions with item category stock transfer (U) for these materials. The process begins in the receiving plant with the entry of a stock transport order in the purchasing department. The process is ended by the posting of the goods receipt against the stock transport order at the receiving plant. This requirement can be seen in the supplying plant straight away. All rights reserved. 2004/Q3 © 2003 SAP AG.

a stock transfer via a stock transport order has the following advantages: • • • • • • The stock transport order is integrated within MRP. A special report for the analysis of transit stocks is available in the Inventory Management menu under Environment →Stock →Stock in Transit (MB5T). Displaying Stock in Transit The stock in transit is shown in the material master record in the plant stock view for the receiving plant. you can also post the material to stock in quality inspection or to blocked stock. With this report. 354 © 2003 SAP AG. You can enter delivery costs and a forwarder/carrier in the stock transport order. The goods receipt can be posted directly to consumption.Unit 6: Influencing the Planning Run SCM240 Figure 113: Stock Transfer Without Delivery In contrast to a stock transfer without a stock transport order. purchase requisitions generated by MRP can be converted into stock transport orders. for example. The entire process (goods issue and goods receipt) can be monitored via the PO history. In the case of a goods receipt into the warehouse. you can select transit stocks for the receiving or issuing plant. The receipt can be planned at the receiving plant. All rights reserved. 2004/Q3 .

4. Choose Execute. 3. 355 . Check the movement type 351 (Transfer Posting: Unrestricted to Stock in Transit). 9. Enter Several PIRs (MD61) for 10 pieces per piece for several weeks. Demonstration: Demonstrate Two Step Stock Transfer Without delivery Purpose System Data System: Client: User ID: Password: Set up instructions: Change the following IMG settings: Materials Management → Purchasing → Purchase order → Setup Stock Transport order → Define Shipping Data for plants Review the details for Plant 1200. change the distribution channel from 12 to 10 and SAVE. select Details of Element. 6. All rights reserved. stocks in transit and stocks in transfer are summarized at plant level in a stock line without a storage location.SCM240 Lesson: Multi-Site Planning Stock in transit is also displayed in the Stock Overview and the Warehouse Stocks of Material report. From the S/R list on the first PurRqs. 2004/Q3 © 2003 SAP AG. In the Warehouse Stocks of Material report. 2. 5. select the Purchase Requisition number and then select Adopt. Be sure to set the purchase requisition indicator to 1 . Enter the goods receipt for the stock transport order. 10. 1. Logistics → Materials Managment → Inventory Managment → Goods movment → Goods Movement (MIGO) Choose Goods Receipt and reference Purchase Order. Execute a Single-item. Multi-level MRP run. 11. 8. Select Convert Purchase Requistion to Purchase Order From the Document Overview. Change the material master for R-F1## in plant 1200 to include the procurement key 40 and Save.purchase requisition. 7. Enter purchase order number 4151-08## .

Enter Storage Location 0001 for both items. With this action. or quality inspection stock. Stock that is intransit is thus montitored. but also the intransit or planned receipt. All rights reserved. A goods receipt is posted in the receiving plant when the goods are received. 356 © 2003 SAP AG. blocked stock. If companies are separated by a large distance it is often important to represent the shipment of the product in order to adjust for the goods issue from the shipping facility. Figure 114: Two Step Stock Transfer with Delivery Stock in transit is valuated. Choose Post. Depending on the decision you make. you can transfer the stock to unrestricted-use stock. 14. Set the Item OK indicator for both items. 13.Unit 6: Influencing the Planning Run SCM240 12. Stock Transfer Two Step with Delivery When initiating the stock transfer process between two locations. It is stocked at the receiving plant level. companies must consider the impacts of goods issue (shipping) and goods receipt (receiving). one can display the stock in transit in the stock overview for the material. In the two step procedure with stock transport order and shipping processing. but not for unrestricted use. 2004/Q3 . stock in transit is created when the goods issue is posted.

it is possible to monitor the quantity that is in transit. If the two plants belong to different company codes. The transfer posting with the valuation price of the material is valuated in the issuing plant. In this case. and item category U (stock transfer) for the purchase requisition. You use document type NB (purchase requisition) . • 2004/Q3 © 2003 SAP AG. You use the stock transport scheduling agreement if stock transfers are to be executed in regular time intervals. All rights reserved. In this way. Only when the goods receipt is posted is the quantity posted to the stock of the receiving plant. you can make settings in Customizing that define whether an availability check is executed or not in the delivering plant when a purchase order is created. The offsetting entry for the stock posting occurs in a company-code clearing account. Characteristics of a stock transport order: • • The quantity of stock booked out is first stocked in the stock in transit of the receiving plant.A stock transport order with an own MRP element is displayed in the requirements/stock overview. You also use the item category U (stock transfer) here. Moreover. two accounting documents are created when the goods issue is posted. the stock transport order is also a stock transfer from company code to company code.SCM240 Lesson: Multi-Site Planning You create stock transport orders for stock transfer within a company code using document type UB in the default. or if you want to schedule the delivery dates of a stock transfer precisely. 357 . you also specify the supplying plant here. In addition to the receiving plant.

During normal business activity large amounts of goods movements and affect system 358 © 2003 SAP AG. which tend to support each other with manufactured components. A physical stock transfer is then carried out with delivery and billing document. choose the document type ’UB’ or a comparable document type of your own. For stock transfers with a billing document.In this step. Assign Document type. 2004/Q3 . the delivery type ’NL’ is used for stock transfers without a billing document. Course SCM510 deals with the different stock transfers that are possible within inventory management. All rights reserved. You can also specify which delivery type is to be used. If the supplying and receiving plants belong to different company codes.Unit 6: Influencing the Planning Run SCM240 Menu paths to demonstrate configuration if necessary: IMG → Materials Management → Purchasing → Purchase Order → Setup Stock transfer Order: • • Define Shipping Data for plants (assign internal customer number to receiving plants Assign Delivery Type and Check rule . One-step procedure. Reviewing plant must be set up as an internal customer (Define shipping data for plants) Define delivery type and assign check rule Assign Document type (one or two step procedure) Note: For more detailed information on Stock transfers attend SCM680 Cross-Application Processes in MM and SD. The delivery type in Sales and Distribution (SD) determines how a delivery is handled. In the standard system. the delivery type ’NLCC’ is used. – If the supplying and receiving plants belong to the same company code. you specify whether an SD delivery is to be created in the case of a PO with a certain combination of supplying plant and document type. In some situations companies have manufacturing locations within a close geographical area. A physical stock transfer is then carried out without a billing document. Withdrawal from Alternative Plant Often time planners are faced with supply chain planning dilemmas that arise due the geographic closeness of facilities that supply each other. choose the document type ’NB’ or a comparable document type of your own. • – Prerequisites Stock Transfer: • • • • Create customer master to represent receiving plant in SD.

A special procurement key is defined for both procedures. You can use withdrawal from alternative plant for both components produced in-house and procured externally. Dependent requirements for these components are directly created in the issuing plant. In and effort to minimize master data and other transactions that arise with vertical integration planners can use the special procurement method Withdrawal from Another Plant Figure 115: Withdrawal from Another Plant Another alterative for planning vertical integration is using the You can specify for an assembly that the components required to build the assembly are to be withdrawn from a different plant from the planning plant (that is.SCM240 Lesson: Multi-Site Planning performance negatively. the issuing plant). All rights reserved. 2004/Q3 © 2003 SAP AG. 359 .

• • Example: Assume you pump that you manufactured is used in a larger cooling unit that is produced in plant 1200.Unit 6: Influencing the Planning Run SCM240 Figure 116: Configuration of Withdrawal from Another Plant This procedure provides an alternative to using stock transport orders and is especially useful when plants are close together. In the withdrawal plant. you have maintained a special procurement key for Withdrawal from alternative plant and you have entered the issuing plant there. You carry out the planning run in the planning plant for your cooling unit. You have assigned the component. 360 © 2003 SAP AG. if this is necessary. in the IMG activity Define special procurement type. to this special procurement key in the material master of the planning plant (MRP 2 view). All rights reserved. Plant 1200 is on the other side of town about an hour away. that is. 2004/Q3 . The heat exchanger that goes into the cooling unit is also manufactured in plant 1200. in plant 1200. which is to be withdrawn from an alternative plant. you have created a material master for the component to be withdrawn. Prerequisites to Withdrawing from alternative plant • In Customizing for MRP. During the planning run. the system creates a planned order for the assembly in plant 1200. Due to such short lead times there is not sense in generating stock transfers as it would be too much work.

Release and Save the order. and enter a special procurement key of 70 . and work scheduling views. in plant 1000. with MRP. Acctng. Demonstration: Demonstrate withdrawal from another facility Purpose System Data System: Client: User ID: Password: Set up instructions: 1. 4. The withdrawal for the production order is carried out in plant 1200 for the heat exchange and in plant 1000 for the pump. All rights reserved. from the S/R list you will execute a single item multi level MRP (ensure to delete orders). 7.Reservation in alternative Plant 1100. for the pump with the special procurement Withdrawal from alternative plant. 361 . using R-B1## at 1000 as a template 2. Using T-Code MB1C. 8. Note: One of the main purposes of this scenario is to cut down on goods movement transactions. work scheduling. 6. From the S/R list review the BOM for one of the new planned orders. and then creates a dependent requirement for the pump in plant 1000. change the Material master for R-B1## at location 1000. convert the planned order into a production order From within the production order set all materials to backflush by setting the backflush indicator on the item overview. When the planned order for the cooling unit is converted into a production order. movement type 501 With existing requirements for the R-F1## at plant 1000. create 1000 pcs of inventory in plant 1100. Extend material master R-B1## to location 1100. 2004/Q3 © 2003 SAP AG. that is. the dependent requirements of the components are automatically converted into order reservations. Pay attention to the Plant for the R-B##. 5. 3.SCM240 Lesson: Multi-Site Planning The system then creates a dependent requirement for the heat exchanger in plant 1200. A dependent requirement is created in the issuing plant. storage location 0001.

All rights reserved. The product’s BOM is created in the production plant. you have maintained a special procurement key for production in an alternative plant and you have entered the different production plant there. Set to final confirmation and select the Goods movement button. You have created a material master for the material in the production plant • • 362 © 2003 SAP AG.Unit 6: Influencing the Planning Run SCM240 9. The planning of the product is carried out in the planning plant but it is actually produced in the production plant. 2004/Q3 . Production in Alternative Plant Figure 117: Production in Alternative Plant You can define that a particular product is to be produced in an alternative plant (that is. The inventory should have been issued at location 1100. Confirm the production order using transaction CO15. in the IMG activity Define special procurement type. You have assigned this special procurement key to the assembly in the material master of the planning plant (MRP 2 view). Note the issue storage location 10. the production plant) from the planning plant. Note the inventory in both locations 1000 and 2400 for the R-B1##. • In Customizing for MRP.

SCM240 Lesson: Multi-Site Planning Figure 118: Configuration for Production in Alternative Plant You first plan material requirements in the planning plant. the stock in the planning plant is increased. The dependent requirements in the production plant are converted into a dependent reservation and production of the components in the production plant is initiated. the routing and scheduling margin key in the production plant are the basis of the production date calculation in. IMG activity Define scheduling parameters for planned orders) the system calculates the basic date by adding the production finish date and the float after production. if this is necessary. When creating the goods receipt for the production order. You convert the planned order in the planning plant into a production order. 2004/Q3 © 2003 SAP AG. the system creates a planned order for the assembly in the planning plant. The following is to be taken into account for the scheduling of the planned orders in the planning plant: The system uses the in-house production times and scheduling margin key entered in the material master record for the planning plant to determine the basic dates. The system uses the production start date minus float before production as the order start date. During the planning run. The system determines the float before production and the float after production from the scheduling margin key in the material master record for the production plant. If you have defined that the basic dates are to be adjusted for the production dates in lead time scheduling (Customizing. All rights reserved. The system explodes the BOM for the assembly in the production plant and determines the dependent requirements. If MRP is carried out using lead time scheduling via the routing. You plan material requirements in the production plant. 363 .

convert one of the planned orders to a production order and release it. 5. 6. Execute an Multi-level MRP run (MD02). 9. 8. 10. however the receiving plant is plant 2400. Review the details of the planned order for R-F1## in plant 2400. Notice the planned order with no requirement. Change Material R-F1## in plant 2400. Review the S/R list for R-F1## in plant 1000. 364 © 2003 SAP AG. PIRs were already created in another exercises. In addition make sure the procurement type is set to E. and plant 1000. Note the inventory in both location 1000 and 2400. 7.production in plant 1100. Notice on the assignment tab in the production order the planning and production plant. 3. 2. Notice the order type is Production in Plant 2 and can not be converted. 2004/Q3 . by setting the special procurement key to 91 . 4. Note the stock level and the new production location Confirm the production order using transaction CO15. for R-F1##/2400 make sure to select “All Unchanged components”. Review the Stock/Requirements list (MD04) for R-F1## at plant 2400. All rights reserved. review the results in location 2400 in the stock requirements. Review the details of the order.Unit 6: Influencing the Planning Run SCM240 Demonstration: Demonstrate Production in another plant Purpose System Data System: Client: User ID: Password: Set up instructions: 1.

using the following settings Continued on next page 2. You have forecasted at plant 2400 via the S&OP process. The lead times are too great and demand to volatile to plan them as a make to order. your company has established distribution center/plant 2400. Plant 2400 will need to procure internally. CATT Z_SCM240 must be run prior to this exercise. In order to provide a high level of customer service. execute Single-item. due to your global customer base you need to stock your product closer to the customer. Task: Planning Stock Transfers The majority of your pumps are of a make to stock nature. All rights reserved. Execute a multi-level MRP and review the results. During the S&OP process you have already created demand at location 2400 for the R-F1##. From the Stock/Requirements list for you material R-F1## at plant 2400. in order to support customer demand.SCM240 Lesson: Multi-Site Planning 305 Exercise 11: Multi-Site Planning Exercise Duration: 30 Minutes Exercise Objectives After completing this exercise. It will create the mateiral R-F1## at location 2400. 2004/Q3 © 2003 SAP AG. However. Change the material master in location 2400 so that it will create stock transfers to location 1000. 365 . 1. you will be able to: • Initiate multi-site planing by using the special procurement key Business Example A majority of your pumps are of a make-to-stock nature. Set up plant 2400 so that it will automatically source the R-F1## out of Plant 1000. From the stock requirements list for R-F1## at plant 2400. Multi-Level. System Data System: Client: User ID: Password: CATT: Set up instructions: 1. the R-F1## from plant 1000. change the material master setting the special procurement key so that demand is source via a stock transfer from location 1000. Plant 2400 is just such a distribution center.

Delete 2 . 2004/Q3 .Purchase requisitions 3 . What do you see here? 366 © 2003 SAP AG.Unit 6: Influencing the Planning Run SCM240 Field Purchase req.Lead time w/ cap. rqmts Select Refresh the stock requirements list and what do you now see? Change the stock requirements list and review the R-F1## at plant 1000. Planning mode Scheduling Also plan unchanged components 3. 4. All rights reserved. Value 1 .

Stock Transfer (proc. the R-F1## from plant 1000. Multi-Level. From the stock requirements list for R-F1## at plant 2400. Multi-Level. execute Single-item. your company has established distribution center/plant 2400. 367 . rqmts Select Follow menu path: Logistics → Production → MRP → Evaluations → Stock/Requirements list (MD04) Select Single-item. change the material master setting the special procurement key so that demand is source via a stock transfer from location 1000. and proceed to the MRP 2 View In the MRP 2 view set Special Procurement to 41 . All rights reserved. Select Refresh update Continued on next page 2004/Q3 © 2003 SAP AG. in order to support customer demand.Lead time w/ cap. In order to provide a high level of customer service. a) b) c) d) 2. Use the settings in the table above.Delete 2 . During the S&OP process you have already created demand at location 2400 for the R-F1##. Select Save From the Stock/Requirements list for you material R-F1## at plant 2400.SCM240 Lesson: Multi-Site Planning Solution 11: Multi-Site Planning Task: Planning Stock Transfers The majority of your pumps are of a make to stock nature. from plant 1000). Follow menu path: Logistics → Production → MRP → Evaluations → Stock/Requirements list (MD04) From the S/R list select Environment → Change material.Purchase requisitions 3 . using the following settings Field Purchase req. Planning mode Scheduling Also plan unchanged components a) b) c) Value 1 . 1. Plant 2400 will need to procure internally. Change the material master in location 2400 so that it will create stock transfers to location 1000. Execute a multi-level MRP and review the results.

2004/Q3 . being displayed. you should now see MRP elements PRqRel (Release order for a stock transfer requisition ) . 368 © 2003 SAP AG. being displayed. Change the stock requirements list and review the R-F1## at plant 1000. All rights reserved. Additionally you will see the receiving plant column appear to identify the source of supply.Unit 6: Influencing the Planning Run SCM240 3. Press ENTER and elect Refresh As a result. Refresh the stock requirements list and what do you now see? a) As a result you should now see MRP elements PurRqs (Purchase Requisition). 4. What do you see here? a) b) Type over plant 2400 with plant 1000. Additionally you will see the delivering plant column appear to identify the source of supply.

SCM240 Lesson: Multi-Site Planning Lesson Summary You should now be able to: • Explain how to perform Cross location planning in SAP ERP • Demonstrate how cross location planning work in SAP ERP Related Information • • FAQ: Stock transfer with delivery in purchasing (SAP Note number: 0000498143) FAQ: Stock transfer to stock transport order (SAP Note number: 0000521090) 2004/Q3 © 2003 SAP AG. 369 . All rights reserved.

all component requirements and receipts are planned in a discrete manner. 2004/Q3 . ] Business Example Some of your production assemblies are so common you are constantly making long runs. Use the distribution keys in the production version to depict a constant stream of production receipts. 370 © 2003 SAP AG. while also using the distribution key in the bill of material to show a continuous consumption of components. you will be able to: • • Demonstrate how to initiate a continuous output for a long production run Demonstrate how to initiate continuous input for components that will not be used discretely but continuously [Enter a description of what the instructor should discuss with the participants about the context of the lesson. In addition the cycle time for manufacturing is quite short. All rights reserved. Lesson Objectives After completing this lesson.Unit 6: Influencing the Planning Run SCM240 Lesson: 309 Continuous Input/Output Lesson Duration: 35 Minutes Lesson Overview Learn how distribution keys can be used to model continuous consumption of components and the continuous receipt of assemblies. Discrete Consumption As a result of scheduling during the planning run.

Another similar situation is the component consumption during the manufacturing of an assembly. begin receiving production shortly after the production starts. when in actuality. production is being received continuously. This can be misleading for some types of production. Continuous input is something that should be used when a planner has relatively simple routings and the production cycle time is short. All rights reserved. if a component will be continuously consumed. it is misleading to the down steam activities. the order finish date is the production finish date + goods receipt processing time. the receipt is planned at the order finish date. With a discrete output. Typically. 371 . a planner could possibly spread the receipts or transfers for the components over the duration of the entire order. since they only see one receipt. In certain situations planners might not have the warehouse space or production floor space to store all the necessary components. When scheduling occurs. either basic date or lead time. manufactures that produce product with short cycle times. but one must understand that is not something that should be used by every material. Continuous Input The concept of continuous input is relatively simple.SCM240 Lesson: Continuous Input/Output Figure 119: Discrete Consumption In supply chain planning the term discrete means at a specific point in time. Again this is typical in repetitive type manufacturing were cycle time to manufacture a product is relatively short. 2004/Q3 © 2003 SAP AG. However.

this will trigger multiple replenishment elements to cover the distributed requirement. In this field. you can enter the distribution key for dividing up dependent requirements or reservations for this component over time.Unit 6: Influencing the Planning Run SCM240 Figure 120: Continuous Input in the Planning Run Continuous input ins SAP ERP uses functionality called the Distribution Key. This distribution key is defined in the IMG. When a distribution key with equal distribution is used. the dependent demands will distributed evenly over the total number of days between the order start date and the order finish date. However. Remember this will include floats before and after. Caution: When using distribution keys in Planning. Even when performing lead time scheduling which is in seconds. All rights reserved. 2004/Q3 . they are brought into the production process continuously between the order start date and the order finish date. portions of the dependent requirement are distributed over the runtime of the planned or production order in accordance with the distribution function. This means that dependent requirements are not available in full on the order start date. you must remember we are typically dealing in days. If you enter a distribution function for a component. receipts and requirements are still planned at daily levels. so it may not give you a true distribution! 372 © 2003 SAP AG. Note: The system will only create one dependent requirement number for each item and planned order. Instead. but applied in the item details of the BOM in the Distribution Key field.

SCM240 Lesson: Continuous Input/Output Caution: Use of the distribution key would not be recommended for order with a long cycle time that have many operations that are performed sequentially. Continuous output is something that should be used when a planner has relatively simple routings and the production cycle time is short. In materials planning. To do so. However if you review the Stock/Requirements list you will see the planned order has been split into daily buckets. however the results can only be used in a limited fashion. Continuous Output The concept of continuous output is very similar to continuous input. enter a distribution key in the production version when maintaining the material master record. 2004/Q3 © 2003 SAP AG. All rights reserved. Figure 121: Continuous Output in the Planning Run You can specify that the output/receipt of a planned order is to be spread over the validity period of the planned order or production order automatically during the planning run or in repetitive manufacturing. only one planned order will be created. Note: Continuous input and output are mutually exclusive functionality. 373 . Use of the distribution key and component allocation in SAP ERP would be a conflict in functionality. In this type of situation a planner would typically allocate components to an operation to improve detailed scheduling. noting the order number is the same.

these orders are not displayed as distributed in the MRP list. you must remember we are typically dealing in days. in configuration it is defined as the Distribution Strategy. 2004/Q3 . . so you will get a more exact distribution In the planning run. the distribution functionality works over the order dates. 374 © 2003 SAP AG. Remember this will include floats before and after. planners must apply a distribution key in the item details in the BOM or the details of the production version. If you are not using ATP the distribution key in the production version serves not purpose. so it may not give you a true distribution! Distribution Keys The concept of distributing data over periods of time is a common function in SAP ERP. This causes differences between the MRP list and current stock/requirements list. In the planing of production and procurement we will use the distribution key in several areas: • • • • • Demand Management: Splitting demand from larger periods of time to smaller periods of time during the transfer from SOP/Flexible Planning MRP/MPS: Displaying continuous output planned/production/process orders (ATP) MRP/MPS: Generating continuous dependent demand (input) for a given order.Unit 6: Influencing the Planning Run SCM240 Caution: The distribution function has no effect on the materials planning of the material but on the availability check of ATP logic. not the production dates/times. In capacity planning the capacity requirements will be distributed over the lead time scheduling duration. The distribution functionality for capacity planning is different than in the other areas. For distribution to work in the planning run. All rights reserved. receipts and requirements are still planned at daily levels. While the master data fields call it distribution key. Planning Table: Display the production quantities for one order over a period of time Capacity planning: Distributing capacity requirements based on the scheduling duration. Even when performing lead time scheduling which is in seconds. When a distribution key with equal distribution is used. the planned order receipts will distributed evenly over the total number of days between the order start date and the order finish date. Caution: When using distribution keys in Planning. To clarify to this and for better understanding of the planning result.

This will be defined in another customizing table. All rights reserved. 375 . 2004/Q3 © 2003 SAP AG.SCM240 Lesson: Continuous Input/Output Figure 122: Distribution Strategy The distribution strategy consists of two parts: • • Distribution Function Distribution Types The Distribution Function defines the percentage of the quantity that is to be produced after a certain percentage of the total production time.

In the case of a discrete distribution strategy. The Percent Requirement field determines what percentage of the receipts or demand should be planned after a certain percentage of the order has elapsed. each consisting of a percentage time value and a percentage requirements value. 2004/Q3 . In the case of a continuous dispatching strategy. The percentage time value defines a point in the duration of the order. The percentage requirements value specifies the proportion of the demand/receipt that must be scheduled by a certain point in time. The Distribution Type defines whether the requirement is distributed exactly according to the points defined in the function or over the time axis according to the distribution function. These fields are mutually inclusive The distribution function is made up of a series of basic values.Carry out distribution according to discrete points 376 © 2003 SAP AG. In the duration field indicates what percentage of the demand/receipts should be planned based on how much of the order has elapsed.Unit 6: Influencing the Planning Run SCM240 Figure 123: Distribution Function In the definition of a distribution function you specify the percentage of the quantities that are to be produced within a certain percentage of the production time.Carry out distribution continuously through time 02 . All rights reserved. the requirements are distributed equally between two points in time. the receipts/requirements are scheduled at the specified points in time. The definition of the distribution type is hard coded in the software but you have two choices: • • 01 .

You are receiving pressure from accounting to minimize the amount of inventory over a period of time. The assembly for your pump R-F1##. Use the distribution key for your turbo drive R-B2## to distribute the dependent demand over the entire production run. System Data System: Client: User ID: Password: CATT: Set up instructions: 1. has a relatively short cycle time in production. For product R-B2## at plant 1000. All rights reserved. focusing on the first dependent requirement for product R-F1## at plant 1000. CATT Z_SCM240 must be run Task 1: Continuous Input in the Planning Run The fly wheel (R-B2##) for you pump (R-1##) is an expensive item. Use the distribution keys in the production version to depict a constant stream of production receipts. 1. Continued on next page 2004/Q3 © 2003 SAP AG. 377 . you will be able to: • Demonstrate how distribution keys can be used in the BOM to model continuous input • Demonstrate how distribution keys can be used in the production version to model continuous output Business Example Some of your production assemblies are so common you are constantly making long runs.SCM240 Lesson: Continuous Input/Output 317 Exercise 12: Continuous Input/Output in the Planning Run (OPTIONAL) Exercise Duration: 25 Minutes Exercise Objectives After completing this exercise. yet you typically schedule long runs. review the Stock/Requirements list. while also using the distribution key in the bill of material to show a continuous consumption of components. In addition the cycle time for manufacturing is quite short.

Select a specific planned order for R-F1## at plant 1000 and populate the following table: Planned Order Number Order Start Date Order Finish Date Production Start Date Production Finish Date 3. Multi-Level. 2004/Q3 .Unit 6: Influencing the Planning Run SCM240 2. In another session. Change item R-B2## so that is consumed equally over the duration of the planned order. usage production. Review the stock requirements list for your product R-B2## at plant 1000. Your fly wheel is consumed in a continuous fashion.. setting the planning mode to 3 . All rights reserved. 5. Continued on next page 378 © 2003 SAP AG.Delete and Recreate planning data. change the bill of material for product R-F1## at plant 1000. and the scheduling indicator to 2 -Lead time scheduling. execute Single-item. 4. From the Stock/Requirements list for you material R-F1## at plant 1000.

Select the first dependent requirement that came from R-F1##. you have very short cycle times. What is the Dependent Requirement number for R-B2##? What is the planned order number for R-F1##? Task 2: Continuous Output in the Planning Run Some of your pumps are assembled very quickly.. but you may have long production runs due to high demand. which will include the alternative BOM 1 with a usage 1. Before saving set your selection method in the MRP 4 view to 2 Selection by Production version. When assembling R-F2##. Multi-Level. 2004/Q3 © 2003 SAP AG.Production and a “detailed” standard routing for your product R-F2## at plant 1000. setting the planning mode to 3 .Delete and Recreate planning data. and the scheduling indicator to 2 -Lead time scheduling. Select the second dependent requirement that came from R-F1##. From the stock requirements list for R-F2## at plant 1000. From the Stock/Requirements list for you material R-F2## at plant 1000. All rights reserved. you want to use the distribution key to show multiple production receipts. change the material master by creating a production version A001 (continuous Output BOM 01) in the MRP 4 view. What is the date of the first dependent requirement? What is the Dependent Requirement number for R-B2##? What is the planned order number for R-F1##? 7. 3. Create a production version and use an equal distribution key to spread the receipts over time. Your colleagues in shipping need to plan the shipment of product.SCM240 Lesson: Continuous Input/Output 6. Be sure to include the distribution key for plant. execute Single-item. 1. so knowing the variability of production is essential. 379 . Therefore. Make the production version valid from today until the end of next year. Select a specific planned order and populate the following table: Continued on next page 2.

Where there any similarities between the two planned order numbers. 2004/Q3 . 380 © 2003 SAP AG. All rights reserved.Unit 6: Influencing the Planning Run SCM240 Planned Order Number Order Start Date Order Finish Date Production Start Date Production Finish Date 4. Select a second MRP element for the same planned order you selected in the previous step and populate the following table: Planned Order Number Order Start Date Order Finish Date Production Start Date Production Finish Date 5.

review the Stock/Requirements list. All rights reserved. a) 2.GLEI (Equal Distribution) Select Save. change the bill of material for product R-F1## at plant 1000. From the Stock/Requirements list for you material R-F1## at plant 1000.SCM240 Lesson: Continuous Input/Output Solution 12: Continuous Input/Output in the Planning Run (OPTIONAL) Task 1: Continuous Input in the Planning Run The fly wheel (R-B2##) for you pump (R-1##) is an expensive item. Use the distribution key for your turbo drive R-B2## to distribute the dependent demand over the entire production run. setting the planning mode to 3 . 1. enter a Distribution Key of 1000 . and then refresh the S/R list 4. has a relatively short cycle time in production. setting the planning mode to 3 . and the scheduling indicator to 2 -Lead time scheduling.. Follow menu path: Logistics → Production → MRP → Evaluations → Stock/Requirements list (MD04) In another session. Multi-Level. Your fly wheel is consumed in a continuous fashion. 381 . Multi-Level. Select a specific planned order for R-F1## at plant 1000 and populate the following table: Continued on next page 2004/Q3 © 2003 SAP AG. The assembly for your pump R-F1##.Delete and Recreate planning data. and select item. execute Single-item. focusing on the first dependent requirement for product R-F1## at plant 1000.Delete and Recreate planning data. usage production. Change item R-B2## so that is consumed equally over the duration of the planned order. a) b) c) d) Follow menu path: Logistics → Production → Master Data → Bills of Material → Bill of Material → Material BOM → Change (CS02) Select the item for R-B2##.. In the Basic Data view. 3. yet you typically schedule long runs. For product R-B2## at plant 1000. and the scheduling indicator to 2 -Lead time scheduling. a) b) Follow menu path: Logistics → Production → MRP → Evaluations → Stock/Requirements list (MD04) Select Single-item. You are receiving pressure from accounting to minimize the amount of inventory over a period of time.

R-B2## Dependent Requirement Number: VARIES . and is the same as the first dependent demand MRP element. Select the first dependent requirement that came from R-F1##. R-F1## Planned order number:VARIES.Unit 6: Influencing the Planning Run SCM240 Planned Order Number Order Start Date Order Finish Date Production Start Date Production Finish Date 5. 2004/Q3 . What is the date of the first dependent requirement? What is the Dependent Requirement number for R-B2##? What is the planned order number for R-F1##? Answer: Place your cursor in the dependent requirement and select Details of Elements. Select the second dependent requirement that came from R-F1##. What is the Dependent Requirement number for R-B2##? What is the planned order number for R-F1##? Answer: Place your cursor in the dependent requirement and select Details of Elements. All rights reserved. Varies Varies Varies Varies Varies Review the stock requirements list for your product R-B2## at plant 1000. a) Follow menu path: Logistics → Production → MRP → Evaluations → Stock/Requirements list (MD04) 6. however it comes from the same planned order as the first dependent requirement Continued on next page 382 © 2003 SAP AG. The first date of the dependent requirement is: VARIES R-B1## Dependent Requirement Number: VARIES R-F2## Planned order number:VARIES 7.

Enter Alternative BOM 1. which will include the alternative BOM 1 with a usage 1. under Detailed Planning. you have very short cycle times. and proceed to the MRP 4 View Select Production Versions button Enter version A001.SCM240 Lesson: Continuous Input/Output Task 2: Continuous Output in the Planning Run Some of your pumps are assembled very quickly. then using the search functionality. select Task list type Routing. with description Continuous Output. f) g) h) i) j) Set the selection method in the MRP 4 view to 2 . search for your Group No. Your colleagues in shipping need to plan the shipment of product. Be sure to include the distribution key for plant. a) b) c) d) e) Follow menu path: Logistics → Production → MRP → Evaluations → Stock/Requirements list (MD04) From the S/R list select Environment → Change material. but you may have long production runs due to high demand.Production and a “detailed” standard routing for your product R-F2## at plant 1000.Selection by production version Select Save Continued on next page 2004/Q3 © 2003 SAP AG. Therefore. 1. Before saving set your selection method in the MRP 4 view to 2 Selection by Production version. by using your material R-F2## at plant 1000. and BOM Usage 1. 383 . When assembling R-F2##. In the Planning Data section. change the material master by creating a production version A001 (continuous Output BOM 01) in the MRP 4 view. so knowing the variability of production is essential. From the stock requirements list for R-F2## at plant 1000. and enter today’s date and the date for the end of next year. then select Details. All rights reserved./Counter. Create a production version and use an equal distribution key to spread the receipts over time. In the distribution key field select 1000 GLEI Equal Distribution select Continue twice and continue through any messages. you want to use the distribution key to show multiple production receipts. Make the production version valid from today until the end of next year.

setting the planning mode to 3 . Select a specific planned order and populate the following table: Planned Order Number Order Start Date Order Finish Date Production Start Date Production Finish Date Varies Varies Varies Varies Varies 4. setting the planning mode to 3 . Where there any similarities between the two planned order numbers. and the scheduling indicator to 2 -Lead time scheduling. and the order start date were the same. a) b) Follow menu path: Logistics → Production → MRP → Evaluations → Stock/Requirements list (MD04) Select Single-item. Select a second MRP element for the same planned order you selected in the previous step and populate the following table: Planned Order Number Order Start Date Order Finish Date Production Start Date Production Finish Date Varies Varies Varies Varies Varies 5. and then refresh the S/R list 3. the individual MRP elements will have the same start day however a different finish date for each element. execute Single-item. and the scheduling indicator to 2 -Lead time scheduling.Delete and Recreate planning data. 384 © 2003 SAP AG.Delete and Recreate planning data. 2004/Q3 ..Unit 6: Influencing the Planning Run SCM240 2. Multi-Level. Multi-Level. From the Stock/Requirements list for you material R-F2## at plant 1000.. Answer: The order numbers were the same. The planning run only creates one planned order however. All rights reserved.

All rights reserved.SCM240 Lesson: Continuous Input/Output Lesson Summary You should now be able to: • Demonstrate how to initiate a continuous output for a long production run • Demonstrate how to initiate continuous input for components that will not be used discretely but continuously 2004/Q3 © 2003 SAP AG. 385 .

• Explain the configuration process of Lot Size techniques. All rights reserved. • Explain how to perform Cross location planning in SAP ERP • Demonstrate how cross location planning work in SAP ERP • Demonstrate how to initiate a continuous output for a long production run • Demonstrate how to initiate continuous input for components that will not be used discretely but continuously 386 © 2003 SAP AG. 2004/Q3 .Unit Summary SCM240 Unit Summary You should now be able to: • Explain how the planning run works in detail. • Describe the different methods of modeling buffers in the planning run • Demonstrate how several of the different methods of safety stock work • Demonstrate how Lot size techniques an influence the size of a planned orders • Demonstrate how use several fields in the material master to influence the size of a planned order • Explain how planning calendars can be used to specifically coordinate the quantity and timing of receipts.

□ □ 5. True False If a safety time of 2 days has been specified. □ □ □ □ □ □ 3. □ □ True False 2004/Q3 © 2003 SAP AG. What is considered in the net requirements calculation. All rights reserved. the requirement date is brought forward 2 days. 387 . Determine whether this statement is true or false.(What is compared?) 2. Dynamic safety stock shows up as an MRP elements throughout the horizon? Determine whether this statement is true or false. A B C D E F Schedule Margin Key Safety time Tolerance value Min Queue time Vendor delay factor Withdrawl period Where is the tolerance value maintained? 4. Where would this be defined? Choose the correct answer(s). Your planners will not attempt to reschedule out a procurement element (delay) if it’s less than three days early.SCM240 Test Your Knowledge 327 Test Your Knowledge 1. This will simply cause too much confusion with vendors.

when using lot size procedure. how can this be accomplished? 8. If . What is the benefit to using a two step stock transfer process? 388 © 2003 SAP AG. Lot-sizing procedures are defined in the Customizing activity . All rights reserved. Fill in the blanks to complete the sentence. 2004/Q3 . stock level . What are the three different groups of lot-size procedures? 7. “replenish up to maximum stock level”. month etc. what will the response of the system? 9. For optimizing lot-sizing procedures.Test Your Knowledge SCM240 6. If you wish to define the period lot-size other than standard week . the shortage quantity for a day exceeds the max. what is the formula used to calculate storage costs? 11. 10.

Determine whether this statement is true or false. Non discrete input and output is controlled using the Fill in the blanks to complete the sentence. All rights reserved. what controls the relationship between plants? Choose the correct answer(s). If one plant produces a component that the other needs for their manufacturing process. Each building has been configured as a plant. 15. □ □ □ □ □ A B C D E Plant Master GR Processing Time Transportation Lanes Process Models Schedule Margin Key 13. □ □ □ □ A B C D Stock transfers between the plants Trucks and forklifts Withdrawl from another plant Set the procurement type to E 14. how could this be modelled in SAP ERP? Choose the correct answer(s). If a distribution is used the material must be distributed equally among the individual time periods. For material planning purposes.SCM240 Test Your Knowledge 12. Assume you two buildings on the same physical grounds. 389 . □ □ True False 2004/Q3 © 2003 SAP AG. Close proximity to each other. The distribution key is entered on what master data object(s)? Choose the correct answer(s). □ □ □ □ □ □ A B C D E F Material Master Production Version BOM Header BOM Item Routing Work center 16.

Test Your Knowledge SCM240 330 Answers 1. If you wish to define the period lot-size other than standard week . and firm orders are compared with requirements plus safety stock. Where would this be defined? Answer: C The tolerance value defines a period for which is necessary to generate exception messages. 2004/Q3 . It pegs to future requirements and plans the production in advance? 5.(What is compared?) Answer: Stock available for planning. What are the three different groups of lot-size procedures? Answer: Static. This will simply cause too much confusion with vendors. how can this be accomplished? Answer: Define the periods by a planning calendar. All rights reserved. month etc. fixed receipts. What is considered in the net requirements calculation. 4. 6. 390 © 2003 SAP AG. Dynamic safety stock shows up as an MRP elements throughout the horizon? Answer: False Dynamic safety stock does not have its own MRP element. Your planners will not attempt to reschedule out a procurement element (delay) if it’s less than three days early. If a safety time of 2 days has been specified. Answer: False It is the order proposal that is moved ahead. 3. 2. Where is the tolerance value maintained? Answer: Tolerance value is maintained in the MRP Group . Periodic and Optimum 7. the requirement date is brought forward 2 days.

Each building has been configured as a plant. when using lot size procedure. 391 . For optimizing lot-sizing procedures. what is the formula used to calculate storage costs? Answer: The formula is: Storage costs = Requirement x Price x Storage cost interest rate x Time in storage / 100 / 365. 13.SCM240 Test Your Knowledge 8. Lot-sizing procedures are defined in the Customizing activity Check Lot-Sizing Procedure. C is more efficient. 2004/Q3 © 2003 SAP AG. However A provides more visibility. what will the response of the system? Answer: The system prioritizes a balanced stock/requirements situation over the lot-sizing procedure so will cover the shortage. Non discrete input and output is controlled using the Distribution Key. Close proximity to each other. C A and C are both viable options. 12. stock level . Assume you two buildings on the same physical grounds. what controls the relationship between plants? Answer: E The schedule margin key (MRP2) identifies a relationship for the specific material. the shortage quantity for a day exceeds the max. For material planning purposes. If one plant produces a component that the other needs for their manufacturing process. All rights reserved. Answer: Check Lot-Sizing Procedure 10. What is the benefit to using a two step stock transfer process? Answer: With the two step process In-Transit inventory is visable. 11. 9. Answer: Distribution Key. “replenish up to maximum stock level”. If . 14. how could this be modelled in SAP ERP? Answer: A.

2004/Q3 . Answer: False Proportions may also be used in addition to equal distribution. 392 © 2003 SAP AG.Test Your Knowledge SCM240 15. The distribution key is entered on what master data object(s)? Answer: B. If a distribution is used the material must be distributed equally among the individual time periods. D The distribution key is entered on the BOM Items or Production Version. 16. All rights reserved.

.. Identify how configuration can influence master data determination Unit Contents Lesson: Basic Dates Scheduling in the Planning Run ....... These topics will have direct impact into the arrival dates of replenishments as well as the quantity and requirements dates of sub-assemblies and raw materials............... All rights reserved.. Demonstrate how Lead Time Scheduling works in the Planning run Demonstrate knowledge of configuring lead time scheduling.......Unit 7 333 Technical Process of the Planning Run Unit Overview This unit will introduce you into some of the details of how scheduling and master data selection are performed during the planning...401 2004/Q3 © 2003 SAP AG.. you will be able to: • • • • • • • • Demonstrate how Basic Scheduling works in the Planning run Demonstrate how scheduling works for Externally Procured materials...... Unit Objectives After completing this unit.... Demonstrate how a production version will be chosen during the planning run if multiple versions exist.. Demonstrate how a bill of material will be chosen during the planning run if multiple BOMs exist Demonstrate how a task list will be chosen during the planning run if multiple routings exist..........395 Demonstration: Basic Date Scheduling .. 393 ..

....439 Demonstration: BOM Dates in MRP .........................................423 Exercise 14: Lead Time Scheduling in the Planning Run ...........421 Demonstration: Reduction and Adjustment ........................422 Demonstration: Order Dates with Lead-Time Scheduling and Postponing the Dependent Requirement Dates .........438 Demonstration: Lot Size Selection .....................................................................425 Lesson: Master Data Selection during the Planning Run.........................452 394 © 2003 SAP AG......................................................405 Lesson: Lead Time Scheduling in the Planning Run............................................. All rights reserved...................416 Demonstration: ............... 2004/Q3 .........................433 Demonstration: BOM Selection ID/BOM Usage............Unit 7: Technical Process of the Planning Run SCM240 Exercise 13: Basic DateScheduling in the Planning Run .....445 Demonstration: BOM Explosion Numbers ...............413 Demonstration: Lead-Time Scheduling .447 Demonstration: Routing Selection ............

To calculate these dates. 395 . once the system determines a replenishment is required. ] Business Example Due to a large number of materials that must be run on nightly basis you need to run MRP as fast as possible. the system calculates the start and finish dates of the procurement elements for materials produced in-house or externally. it is necessary to determine the source of the supply. you will learn about how basic data scheduling is performed during the planing run or during manual planned order creation. [Enter a description of what the instructor should discuss with the participants about the context of the lesson. 2004/Q3 © 2003 SAP AG. An Overview of Procurement Type During the planning run. the system uses the in-house production time for parts produced in-house and the delivery time in the material master or purchasing info record for parts procured externally. All rights reserved.SCM240 Lesson: Basic Dates Scheduling in the Planning Run Lesson: 334 Basic Dates Scheduling in the Planning Run Lesson Duration: 30 Minutes Lesson Overview In this lesson. the system checks whether the receipt is to be produced in-house or procured externally. Lesson Objectives After completing this lesson.At this time. you will be able to: • • Demonstrate how Basic Scheduling works in the Planning run Demonstrate how scheduling works for Externally Procured materials. During scheduling. In order to do this you must be aware of how scheduling is going to impact your planning run. Execute MRP with basic dates planning and interpret the results.

Using routing or master recipe (task list). If the procurement type allows both in-house production and external procurement.Unit 7: Technical Process of the Planning Run SCM240 Figure 124: Procurement Types The procurement type defines whether a material is produced in-house or procured externally. Basic Dates Scheduling . Basic Dates Scheduling Prior to executing . but this can be changed in configuration of the material type. 396 © 2003 SAP AG. the MRP is always based on in-house production. Material types such as ROH RAW. Most material types allow the user to decided how the material will be procured. a planning run planners must decided what type of scheduling to perform. The procurement type is predefined by the material type in the Customizing for the material master and is defined in the material master record. 2004/Q3 . All rights reserved. SAP ERP offers two types of scheduling: 1. This can be set in the MRP 1 tab in the procurement type field. come pre-configured as buy only. The special procurement key will be discussed in the Multi-site planning lesson. Note: You can set a different type of procurement to in-house production or external procurement using the special procurement key in the material master.Using the material master Lead Time Scheduling . 2. In any of the planning run programs there is an indicator called Scheduling.

when a material has a procurement type E .Inhouse or X . Lead time scheduling will perform detail scheduling to the second. All rights reserved. first the system determines the order finish date by scheduling the goods receipt processing time backwards from the requirements date. Customizing: Production → Material Requirements Planning → Planning → Scheduling and Capacity Parameters → Parameters for Determining the Basic Dates During the planning run. since it has the detailed information contain in the routing Note: Only lead time scheduling will generate capacity requirements which will all companies to perform capacity evaluation and leveling functions. 397 . This valued specifies the number of workdays that are required after the receipt of the goods for entering the receipt into the system and placing it in storage. Figure 125: Backward Scheduling for In-house Production With backward scheduling. and future requirements dates are known. the system will generate a planned order when a replenishment is required. In this section we will focus on basic dates scheduling. 2004/Q3 © 2003 SAP AG.Both. The Goods Receipt (GR) processing time is located in the MRP 2 view of the material master. backward scheduling is used for these materials.SCM240 Lesson: Basic Dates Scheduling in the Planning Run Basic dates scheduling is a rough from of scheduling since it will schedule in daily buckets. With materials planned using MRP.

After using the lot-size parameters.Scheduling margin key) While all of these elements may be used. Inter-operation times/floats (fixed duration) and processing/production time (variable duration). users will not see each of the individual segments. planners have no idea when the product is available. The lot-size dependent value consists of Setup time (fixed duration). only the order start and finish time. You define the opening period as a float of the scheduling margin key in the Customizing for MRP. Note: When using lot-size independent values.Scheduling margin key) Processing time (variable) Setup time (fixed duration) Inter-operation times (fixed duration) Float before production (fixed duration . it will offset the requirements date first prior to calculating the order finish day. Both the lot-size dependent and independent can be updated via the routing/recipe.decimal) Work Scheduling view You can only have one of these items populated at any time. the order start date is derived. Therefore if this was used to model Quality inspection time. It is not the best scenario to use this buffer to determine quality inspection time. Starting from the order finish date. All rights reserved. the system counts backward by the length of the in-house production time to determine the order start date. the in-house production time comprises: • • • • • Float after production (fixed duration . Safety time is used in scheduling regardless of which lot size type you use. Production → MRP → Planning → 398 © 2003 SAP AG. When the receipt is entered into the system the GR processing time is no longer valid. The opening period reflects the processing time that the MRP controller requires to convert planned orders. these are the only values used in determining the order start and order finish date. Once the order start date is calculated. 2004/Q3 . The opening date is determined by subtracting the opening period from the order start date.Unit 7: Technical Process of the Planning Run SCM240 Caution: Be careful when determining the GR processing time. the system determines the opening date.(real numbers . Caution: If safety time is being used. In the material master two types of inhouse production times are available: • • Lot-size Independent .(Integer values only) MRP 2 or Work Scheduling view Lot-size Dependent . Note: When using the lot-size dependent values.

backward scheduling is always used to determine the basic dates even if the start date is in the past. With forward scheduling. the system determines an order start date is in the past. All rights reserved.SCM240 Lesson: Basic Dates Scheduling in the Planning Run Scheduling and Capacity Parameters → Define Floats (Scheduling Margin Key). exception messages are generated to inform the planner the standard “lead times” have been breached. Figure 126: Forward Scheduling for In-House Production If during backward scheduling of materials planned using MRP. In Customizing for MRP. an exception message will be generated identifying the opening date is in the past. Note: The Opening period does not influence the order start or finish date. the system sets the current date as the order start date. The material is available from this date onwards. 399 . it automatically switches to forward scheduling in order to receive realistic scheduling data. However. which determines the order finish date. 2004/Q3 © 2003 SAP AG. Production → MRP → Planning → Scheduling and Capacity Parameters → Parameters for Determining the Basic Dates. you define for each plant that the system does not automatically switch to forward scheduling when determining the basic dates but all the order to schedule in the past. The goods receipt processing time is added to the order finish date to determine the MRP date. While this is not the best scenario. If the indicator is set. the opening periods may be scheduling on past date. The scheduling margin key can be entered in the material master (MRP 2) or for each plant . The in-house production time is added to the current date. There is no order creation date with forward scheduling because the opening date calculated is in the past. Therefore depending upon the situation.

the system determines the basic order dates of the components by means of backward scheduling using in-house production time or planned delivery time. the bill of material will be copied into the planned order. 2004/Q3 . Caution: With basic scheduling. All rights reserved. At this time using the order start date. Figure 128: Changing Dependent Requirement Dates 400 © 2003 SAP AG. no capacity requirements are calculated or dispatched for the order. Taking the dependent requirements date as the availability date. the system creates dependent requirements for the bill of mateiral items.Unit 7: Technical Process of the Planning Run SCM240 Figure 127: Order Dates for Basic Scheduling Once the planned order is scheduled.

System Data System: Client: User ID: Password: Set up instructions: Explain basic scheduling with the help of a planned order: 1. Display and explain the following fields: • • • • Scheduling the margin key (MRP 2) Lot-size-independent in-house production time (MRP 2) and lot-size-independent (work scheduling) Goods receipt processing time (MRP 2) Planned delivery time (MRP 2) 2004/Q3 © 2003 SAP AG. It is not applicable in Lead time scheduling.SCM240 Lesson: Basic Dates Scheduling in the Planning Run In the BOM explosion. All rights reserved. of a particular component. In addition when dealing with long production times. Enter a negative number of days and the component is required before the start date. delivering them closer to their point of consumption. the date can be adjusted using the negative lead time or positive lead times. The positive lead time is not taken into account in lead-time scheduling. Enter a positive number of days and the component is not required until after the start date. In converse. the plant 1000. the required components or assemblies are determined for the relevant BOM. Often times due quality requirements. Call up the material master R-F1##. planners would like to bring materials in early. Demonstration: Basic Date Scheduling Purpose To know more about basic scheduling. planners would like to delay the arrival of certain materials. It is used for the simulation of component assignment in the routing during basic-date scheduling. When performing basic dates scheduling planners can offset the dependent requirements dates using the Lead time offset field in the bill of material. the operation lead time offset is only applicable during lead time scheduling. 401 . When scheduling the dependent requirement date. Caution: The lead time offset field will only be used in Basic Dates Scheduling.

not production dates or capacity requirements. When dealing with high volume materials your purchasing department will often setup blanket purchase orders. only planned orders will be created. Prior to the planning run. Display and explain the following in Customizing: • Definition of the scheduling margin key: Customizing: Production → Material Requirements Planning → Planning → Scheduling and Capacity Parameters → Define Floats (Scheduling Margin Key) • Order Start Date in the Past indicator at plant level: Customizing: Production → Material Requirements Planning → Planning → Scheduling and Capacity Parameters → Parameters for Determining the Basic Dates or Customizing: Production → Material Requirements Planning → Plant Parameters → Carry Out Overall Maintenance of Plant Parameters The parameter order start date in the past is maintained only per plant. 4. and Delivery Schedules. plant 1000. Scheduling for External Procurement Planners are typically responsible for all materials that are relevant for production. In order for purchasing documents to be created the procurement type must be set to F. Double-click a planned order and “Change element”. 2004/Q3 . Execute Material Requirements Planning for material R-F1##. there are two indicators that are relevant to purchasing activities. Create Purchase req. 402 © 2003 SAP AG. These are referred to as scheduling agreements in SAP ERP. The switch in the MRP group parameter is wrong! 3. plant 1000. using planning mode 3 and scheduling indicator 1. The planned order contains only the basic dates. All rights reserved. If the indicators are set to Planned Orders.Unit 7: Technical Process of the Planning Run SCM240 2..External in the MRP 2 view of the material master. Stock/requirements list of material R-F1##. Otherwise purchasing related documents will be created.

You enter the planned delivery time in calendar days. All rights reserved.SCM240 Lesson: Basic Dates Scheduling in the Planning Run Figure 129: Scheduling for External Procurement Scheduling for externally-procured materials takes place in the same way as for materials produced in-house. This will determine the Delivery date/Order finish date. Working back from the dependent requirements date. the system will adjust the delivery date by subtracting the GR processing time. Figure 130: MRP/Purchasing configuration 2004/Q3 © 2003 SAP AG. It can be determined on a non-vendor-specific or vendor-specific basis. The system will then backwards schedule using the Planned delivery lead time in the material master. 403 .

planners can set by Plant or MRP group the selection of vendor specific planned delivery times. You enter a vendor-specific planned delivery time in the purchasing info record or in the outline agreement. 2004/Q3 . In addition in the plant parameters. By setting the indicator Scheduling Information req/agreement. that will over-ride what has been set in the planning run for those specific materials. You maintain the non-vendor-specific planned delivery time in the material master (view “MRP 2”). 404 © 2003 SAP AG.Unit 7: Technical Process of the Planning Run SCM240 In Customizing Production → MRP → Planning → Procurement Proposals → Define External Procurement. Lastly in the plant/MRP group you can define settings for the planning run. you can define the purchasing department processing time in workdays. planners can choose vendor specific lead times over the non-vendor specific delivery time in the material master. It is used in the planning run if the indicator “Scheduling info record/agreement” is maintained as a plant parameter or the MRP group parameter in Customizing and a vendor can be assigned in automatic source determination. This will be discussed in another lesson. All rights reserved.

your responsibility is to keep customer service high and inventories as low as possible.Delete and Re-create planning data. Fill out the details of the chart below by looking at the details of each element. Make a note of the number of the planned order. for both in-house production and external production. System Data System: Client: User ID: Password: Set up instructions: Task 1: Understanding Basic Dates Scheduling As a production planner. In order to do this. Execute a multi-level planning run with basic dates scheduling and interpret the results. and the scheduling indicator to 1 . Make sure to set the planning mode to 3 . it is important that you understand the details of how the planning run performs scheduling. which is not firmed and which does not show any exception message. 1. _______ Select the planned order and run the order report.SCM240 Lesson: Basic Dates Scheduling in the Planning Run 343 Exercise 13: Basic DateScheduling in the Planning Run Exercise Duration: Minutes Exercise Objectives After completing this exercise. Select any planned order.Basic dates will be determined for planning. the project team examines the possibilities for staging the assemblies and components are different times in multilevel production planning. From the S/R list execute a single-iteml multi-level planning run. All rights reserved. 2004/Q3 © 2003 SAP AG. 3. Once complete refresh the Stock/Requirements list. Review all lines of the report. 405 . Continued on next page 2. you will be able to: • Describe the functions of scheduling • Monitor the order dates in multilevel production Business Example Based on material R-F1## in plant 1000. Call the Stock/requirements list for material R-F1## in the plant 1000.

Update the BOM so that material R-B4## will be delivered 5 days in advance of the start of the order. Why are there no production dates? _______________________________ _______________________________ _______________________________ Task 2: Lead Time Offsets The assembly electronic turbo drive R-B4## cannot be installed until assemblies R-B1##. Therefore. 1. Change the BOM for material R-F1## in the plant 1000. Continued on next page 406 © 2003 SAP AG. with a usage 1 production. 2004/Q3 . What relationship do the dates have with one another? _________________________________________________ _________________________________________________ _________________________________________________ 5. the electronic turbo drive should be made available later in the basic-date scheduling. All rights reserved.Unit 7: Technical Process of the Planning Run SCM240 R-F1## Basic dates Production dates End: ____________ End: _________ Start: ____________ Start: ________ Goods receipt processing time: R-B1## Basic dates Production dates End: ____________ End: _________ Start: ____________ Start: ________ Goods receipt processing time: R-B4## Basic dates Production dates End: ____________ End: _________ Start: ____________ Start: ________ Goods receipt processing time: 4. R-B2##. and R-B3## are assembled.

multi-level MRP runfor material R-F1## in plant 1000. Make sure to set the planning mode to 3 . 4. 2004/Q3 © 2003 SAP AG.Delete and Re-create planning data. and the scheduling indicator to 1 . Review the detail of the planned order by looking at the component list. 407 . What are the requirements dates of the different components: Component R-B1## R-B2## R-B3## R-B4## Requirement 3. From the Stock/Requirements list execute a single-item.Basic dates will be determined for planning From the Stock/Requirements list select the first planned order in the list.SCM240 Lesson: Basic Dates Scheduling in the Planning Run 2. All rights reserved.

Call the Stock/requirements list for material R-F1## in the plant 1000. In order to do this.Basic dates will be determined for planning. From the S/R list execute a single-iteml multi-level planning run. Once complete refresh the Stock/Requirements list.Basic dates will be determined for planning Press ENTER twice Return to the S/R list and select Refresh. it is important that you understand the details of how the planning run performs scheduling. _______ a) Number of selected planned orders: Varies Select the planned order and run the order report. Continued on next page 408 © 2003 SAP AG. for both in-house production and external production. All rights reserved.Unit 7: Technical Process of the Planning Run SCM240 Solution 13: Basic DateScheduling in the Planning Run Task 1: Understanding Basic Dates Scheduling As a production planner.Delete and Re-create planning data. which is not firmed and which does not show any exception message. Execute a multi-level planning run with basic dates scheduling and interpret the results. Make a note of the number of the planned order. Fill out the details of the chart below by looking at the details of each element. and the scheduling indicator to 1 . a) b) c) d) Follow menu path Logistics → Production → MRP → Evaluations → Stock/Requirements list (MD04) Enter your material R-F1## and plant 1000 and press Enter Select Single-item. 3. Review all lines of the report. your responsibility is to keep customer service high and inventories as low as possible. e) f) 2. Make sure to set the planning mode to 3 . Select any planned order. 2004/Q3 .Delete and Re-create planning data. and the scheduling indicator to 1 . 1. Multi-level to execute your planning run Set the planning mode to 3 .

SCM240 Lesson: Basic Dates Scheduling in the Planning Run R-F1## Basic dates Production dates End: ____________ End: _________ Start: ____________ Start: ________ Goods receipt processing time: R-B1## Basic dates Production dates End: ____________ End: _________ Start: ____________ Start: ________ Goods receipt processing time: R-B4## Basic dates Production dates End: ____________ End: _________ Start: ____________ Start: ________ Goods receipt processing time: a) Select the planned order by placing your cursor in the MRP element section of the planned order. b) c) In the next screen select Order report at the Open all lines. In the order report. select the date of the relevant MRP element (planned order/purchase requisition) and select Copy the dates into the subsequent table d) Continued on next page 2004/Q3 © 2003 SAP AG. Then select bottom-left of the screen. Display element. 409 . All rights reserved.

2004/Q3 . Why are there no production dates? _______________________________ _______________________________ _______________________________ a) There are no production dates because material requirements planning was executed with scheduling indicator 1 (basic-date scheduling). What relationship do the dates have with one another? _________________________________________________ _________________________________________________ _________________________________________________ a) The order start date of the finished product coincides with the order finish dates of the assemblies plus the goods receipt processing times of the assemblies. Continued on next page 410 © 2003 SAP AG. All rights reserved.Unit 7: Technical Process of the Planning Run SCM240 R-F1##Basic dates Production dates End:Varies End:Not available Start:Varies Start:Not available Goods receipt processing time: 1 day R-B1##Basic dates Production dates End:Varies End: Not available Start:Varies Start: Not available Goods receipt processing time: 1 day R-B4##Basic dates Production dates End:Varies End: Not available Start:Varies Start: Not available Goods receipt processing time: 1 day 4. 5.

Select Save. which is set in assembly R-B4##. the electronic turbo drive should be made available later in the basic-date scheduling. 1. 411 . a) b) c) d) 2. a) b) c) Select the first planned order and select Select Display Element Details of Element. and R-B3## are assembled. Review the detail of the planned order by looking at the component list. Update the BOM so that material R-B4## will be delivered 5 days in advance of the start of the order. What are the requirements dates of the different components: Component R-B1## R-B2## R-B3## R-B4## Requirement Varies Varies Varies Varies from the other three Due to the positive lead time of 5 days. Make sure to set the planning mode to 3 . with a usage 1 production. All rights reserved. 3.Delete and Re-create planning data. The requirements for R-B4## are pushed back 5 working days. On the Basic data tab page. Therefore. the order finish date of this assembly is 5 days after the order finish date of assembly R-B1##. 4. define a positive Lead-time offset of 5 workdays. and the scheduling indicator to 1 . Menu path: Logistics → Production → Master Data → Bills of Material → Bill of Material → Material BOM → Change (CS02) Select the item for the assembly R-B4## and select Item.SCM240 Lesson: Basic Dates Scheduling in the Planning Run Task 2: Lead Time Offsets The assembly electronic turbo drive R-B4## cannot be installed until assemblies R-B1##.Basic dates will be determined for planning a) From the Stock/Requirements list select the first planned order in the list. 2004/Q3 © 2003 SAP AG. R-B2##. Change the BOM for material R-F1## in the plant 1000. From the Stock/Requirements list execute a single-item. At the top of the planned order select component overview. multi-level MRP runfor material R-F1## in plant 1000.

All rights reserved. 412 © 2003 SAP AG.Unit 7: Technical Process of the Planning Run SCM240 Lesson Summary You should now be able to: • Demonstrate how Basic Scheduling works in the Planning run • Demonstrate how scheduling works for Externally Procured materials. 2004/Q3 .

Lesson Objectives After completing this lesson. Either the component scheduling is to rough or they need capacity requirements generated to perform capacity evaluation and leveling. In sure the as a result of the planning run. 413 . you must evaluate the capacity requirements in order to level the production plan or make adjustments to the demand plan. you will be able to: • • Demonstrate how Lead Time Scheduling works in the Planning run Demonstrate knowledge of configuring lead time scheduling.SCM240 Lesson: Lead Time Scheduling in the Planning Run Lesson: 351 Lead Time Scheduling in the Planning Run Lesson Duration: 40 Minutes Lesson Overview In this lesson. All rights reserved. In order to accomplish these goals planners need make use of the task list during the planning run. In addition you will learn how lead time scheduling impacts the capacity planning process. Lead Time Scheduling Often times planning to the day is not detailed enough for some planners. ] Business Example Due to high utilization on several resources. [Enter a description of what the instructor should discuss with the participants about the context of the lesson. 2004/Q3 © 2003 SAP AG. you have exact production times and locations in addition to capacity requirements being generated. you will learn about lead time scheduling in the planning run.

Order start/finish and Production star/finish. Lead-time scheduling is carried out using the times from the routing. Alternatively. This is followed by the actual lead-time scheduling. are defined for materials produced in-house and at the same time the capacity requirements are created. In lead-time scheduling. which will be used to calculate the production start and stop dates. the precise production times. This takes place as backward or forward scheduling according to the setting in the Customizing Production → MRP → Planning → Scheduling and Capacity Parameters → Define scheduling parameters for planned orders. The order start and finish dates are determined for each order using basic scheduling. The material staging dates for the components are also determined. 414 © 2003 SAP AG. 2004/Q3 . You can trigger lead-time scheduling for the planning run by using the scheduling indicator 2 .(lead-time scheduling and capacity planning). All rights reserved. During the planning run with the scheduling indicator 2. planners can decide if they want to use the material master for scheduling or the task list. two sets of dates are calculated. the production dates can also be executed manually for individual planned orders (Planned order → Change → Edit → Scheduling). production start and finish dates.Unit 7: Technical Process of the Planning Run SCM240 Figure 131: Lead-Time Scheduling Prior to initiating the planning run. that is.

Work Center/Routing Float Before Production . The individual operations of the routing are scheduled backward starting from the production finish date.SCM240 Lesson: Lead Time Scheduling in the Planning Run Figure 132: Segments in Lead Time Scheduling The following items are taken into account during lead time scheduling: • • • • • • Safety time . 415 .Scheduling Margin key (mat. All rights reserved.fixed/variable (routing) Operation floats: Waiting time. Queue time . 2004/Q3 © 2003 SAP AG.Scheduling Margin key (mat. Move time. mstr) In backward scheduling.Material Master Float After Production . the system subtracts the float after production from the order finish date to calculate the production finish date. mstr) Processing time . The start date of the first operation becomes the production start date.fixed/variable (routing) Setup time .

Wait time:The time a product will sit idle after a production operation. • • Demonstration: Lead-Time Scheduling Purpose To demonstrate lead-time scheduling System Data System: Client: User ID: Password: Set up instructions: 416 © 2003 SAP AG. in anticipation of being moved to the next work center. Defined in each operation of a routing. The following inter-operation times can be modeled for each operation: • Queue time: The time a product will sit idle prior to any setup activities being performed. planners or engineers have the opportunity to detail exactly how a product will move through each step of production.Unit 7: Technical Process of the Planning Run SCM240 Figure 133: Operation Segments in Scheduling During the definition of master data. Defined in the work center using a “move time matrix” or each operation in the routing. This time can be used with capacity leveling functionality. 2004/Q3 . Defined in each operation of the routing Move time:The time a product will spend being moved from one work center to another. To properly model the production process. planners should model any idle time that a product might experience during the production process. All rights reserved.

The planned order is scheduled using detailed scheduling and contains production dates. Production → MRP → Planning → Scheduling and Capacity Parameters → Define scheduling parameters for planned orders. Stock/requirements list of material R-F1##. using the planning mode 3 and the scheduling indicator 2. 5.SCM240 Lesson: Lead Time Scheduling in the Planning Run Tie this with previous demonstrations or call up the details for a planned order and “Change element” in MD04. 3. plant 1000. Double-click another planned order as above and “Change element”. 2. 4. From the stock requirements. Production dates for this one planned order are displayed. Execute a planning run for material R-F1##. plant 1000. edit one of the planned orders by going into change mode. Compare the order start dates and the production dates using the floats from the scheduling margin key. The scheduling parameters are controlled at the Planner/Production Scheduler/Order type. Influencing Scheduling Through Configuration Through the use of customizing parameters. Figure 134: Planned Order Scheduling Configuration (1) 2004/Q3 © 2003 SAP AG. 1. SelectEdit → Scheduling Review the Header tab page. 417 . All rights reserved. planners can control the scheduling process of planned orders via the planning run or manually. This table must be populated to perform lead time scheduling and capacity planning.

Typically with planned orders you will be using detailed planning. except in the case of repetitive manufacturing where order type PE is used. 418 © 2003 SAP AG. Figure 135: Reduction and Adjustment To ensure smooth interplay between basic-date scheduling and lead-time scheduling. It is essential to schedule the routing and to update the scheduling result in the material master.Unit 7: Technical Process of the Planning Run SCM240 The figure about display some of the configuration parameters that can be set. the basic-dates can be adjusted to the production dates after the production dates are redetermined. if the Capacity Requirements indicator is selected. and if a valid routing exists. All rights reserved. Note: For performance reasons it is advisable to use the scheduling horizon (detailed planning) to limit the period for which lead time scheduling and capacity planning should be carried out. lead time scheduling is carried out using the selected routing. The scheduling horizon is a time period that is in working days. capacity requirements are generated for the operations. If basic scheduling differs from lead-time scheduling. 2004/Q3 . The dates for the capacity requirements are the operation dates. the in-house production time in the material master must match the lead-time scheduling through the routing. planners must select at what level they will schedule. If a planned order has its basic start date within this period in the future. The production dates are calculated from the floats in the scheduling margin key of the material master and the individual operation times in the routing. the basic dates are calculated from the in-house production times in the material master and are transferred to the production times. If a planned order has its basic start date further in the future than this scheduling horizon. lead time scheduling is carried out. First. By selecting the Scheduling indicator.

The system will reduce one level at a time trying to improve the order dates. you must assign a reduction strategy to the operation in the routing. The proposed order start date remains the same. the system overrides the Customizing settings. “Define Scheduling Parameters for Planned Orders” in the Adjust scheduling section. Depending on these dates if detailed scheduling occurs backward and the times in the routing are shorter than those in the material master. the following situation may arise: The calculated production start date is further in the future than is necessary and may still be able to produced on schedule. 2004/Q3 © 2003 SAP AG. overlapping operations versus sequential operations. You can control this on a percentage basis. 2. the system can determine new production dates using reduction. To reduce the operation times. All rights reserved. To exclude this kind of situation. although the end date is on the requirements date at the earliest. 419 . Reduction can take place at two points: 1. You can define 6 different levels of percent reduction. the basis for calculating basic dates switches from backward to forward scheduling. To reduce the float before and after production. You can define whether and how the basic dates are to be adjusted to the production dates.SCM240 Lesson: Lead Time Scheduling in the Planning Run If the production start date of the planned order is before the order start date. Figure 136: Planned Order Scheduling Configuration (2) In the Customizing IMG activity. Here you can define the use of splitting (multiple capacities). Forward scheduling takes place and the end date is adjusted. reducing the wait time and the queue time. If there are scheduling problems.

their dependent requirements date is set to the production start date of the first operation. If BOM components are assigned to the first operation of the routing in the default settings or component assignment maintenance. The dependent requirements date of the BOM components is placed on the production start date of the operations to which they are assigned. For example. 420 © 2003 SAP AG. 2004/Q3 . All rights reserved. The standard system assumes staging of materials in accordance with the component assignment of the Bills of Material (BOM) to the routing. you can define that the dependent requirements date is also to be placed on the order start date with lead-time scheduling. With pure basic scheduling. This enables the staging of materials to take place with relation to the operation. the dependent requirements dates can be placed on the dates of the assigned operations. if capacity requirements have to be created using lead-time scheduling.Unit 7: Technical Process of the Planning Run SCM240 Figure 137: Order Dates for Lead-Time Scheduling With lead-time scheduling using the routing. their dependent requirements date is the order start date of the planned order that caused the requirements. In Customizing for MRP under the section Adjust scheduling of the IMG activity Define Scheduling Parameters for Planned Orders.

With positive value. Lead-time offset for operation is the time that the component lead-time offset states with reference to the start date of the allocated operation. the component can be available after the operation start date Lead time. Explain the corresponding Customizing settings: Customizing: Production → Material Requirements Planning → Planning → Scheduling and Capacity Parameters → Define scheduling parameters for planned orders 2004/Q3 © 2003 SAP AG. All rights reserved. The dependent requirement date of a particular component can be moved using the negative lead time or positive lead time using the operational lead time offset in the bill of material. 421 . the required components or assemblies are determined for the relevant BOM. Using a negative value. the component must be available before the operation start date. Demonstration: Purpose System Data System: Client: User ID: Password: Set up instructions: 1.SCM240 Lesson: Lead Time Scheduling in the Planning Run Figure 138: Changing Dependent Requirement Dates In the BOM explosion.

If the order start date of the planned order lies within the detailed scheduling horizon during a later planning run with the scheduling indicator 2 and planning mode 1. If the production start date is before the order start date. All rights reserved. 2004/Q3 . analyze generated planned order: no reduction. the original order start date is still visible as explosion date 422 © 2003 SAP AG. System Data System: Client: User ID: Password: Set up instructions: 1. Demo example: In the material master: Reduce the processing time by 10 days Create requirements: 100 pieces for today + 5 months. Demonstration: Reduction and Adjustment Purpose To ensure smooth interplay between basic-date scheduling and lead-time scheduling. the planned order undergoes lead-time scheduling. basic start date was adjusted. the system can determine new production dates using reduction. planning run with scheduling indicator 2.Unit 7: Technical Process of the Planning Run SCM240 Pay attention to: • • • • Detailed scheduling Adjusting dates and defining the dependent requirement dates Scheduling control for detailed scheduling Reduction Detailed Scheduling Horizon: A new planned order that was generated in the planning run and whose order start date lies outside the detailed scheduling horizon does not undergo lead-time scheduling irrespective of scheduling indicator 2.

Create requirements: 100 pieces for today + 1 week. or schedule the routing and update the material master. enter the original processing time again manually. 423 .SCM240 Lesson: Lead Time Scheduling in the Planning Run In the scheduling and capacity parameters in the section “Reduction”Maximum reduction level 4. Float before production/float after production: 50 60 70 80 90 100% Execute planning run again with planning mode 3 and scheduling indicator 2: New planned order: Reduced to specified level 4. 2. planning run with scheduling indicator 2. execute planning run again with planning mode 3 and scheduling indicator 2: New planned order: Reduced to the specified level 4. %Red. analyze generated planned order: Forward scheduling. no reductions. All rights reserved. In the scheduling and capacity parameters in the section “Reduction”: Reset maximum reduction level to 0. and the original order start date is still visible as the explosion date. Reduction for Forward Scheduling: Demo example: In the material master. Set maximum reduction level back to 4. Demonstration: Order Dates with Lead-Time Scheduling and Postponing the Dependent Requirement Dates Purpose To demonstrate Order Dates with Lead-Time Scheduling and Postponing the Dependent Requirement Dates. the order start was adjusted to the production end date that resulted from the reduction. the order start date was adjusted to the production start date that resulted from the reduction. System Data System: Client: User ID: Password: 2004/Q3 © 2003 SAP AG.

All rights reserved. 2004/Q3 . the assembly requirements dates can also be displayed in the component overview of the planned order. You can also use the new order tree. Instead of using the order report. Explain the function of the negative/positive lead time and the component assignment in both scheduling types as far as the sequencing of the dependent requirements of the assemblies or components is concerned.Unit 7: Technical Process of the Planning Run SCM240 Set up instructions: 1. 424 © 2003 SAP AG.

you will be able to: • Demonstrate lead time scheduling in the planning run • Demonstrate the affect on lead time scheduling using component allocation in the task list Business Example Due to lengthy production times. you need the most detailed data available. planners require more accurate scheduling of the raw materials and sub-assemblies. multilevel planning for material R-F1## in plant 1000. In addition. With a recent increase in demand. Select planning mode 2 (re-explode BOM and routing) and scheduling type 2 (lead-time scheduling). the turbo drive R-B4##. Continued on next page 2004/Q3 © 2003 SAP AG. you are concerned about the supply situation of some of the components for your turbo drive R-B4##. In order to make intelligent decisions. From the Stock/Requirements list execute Single-item. All rights reserved. System Data System: Client: User ID: Password: Set up instructions: Task 1: Lead Time Scheduling in the Planning Run Demand for your pump products is at an all time high. you are worried that you will be stretching your capacity beyond your capabilities. Execute lead time scheduling and review the differences between basic dates scheduling and lead time scheduling. In order to see more exact scheduling. and review the results. Update your routing for R-F1## to show the point of consumption for your R-B4##. In order to give your vendor more accurate information. you need to perform lead time scheduling for your pump R-F1##. is not used until the fifth operation.SCM240 Lesson: Lead Time Scheduling in the Planning Run 359 Exercise 14: Lead Time Scheduling in the Planning Run Exercise Duration: 15 Minutes Exercise Objectives After completing this exercise. 1. In addition. 425 . you want the turbo drives to be produced as close to the actual consumption dates as possible. Allocate the component in the routing and execute a planning run deleting the old orders and creating new ones with lead time scheduling.

analyze the new scheduling situation for the planned order you selected previously. R-F1## Basic dates Production dates End: ____________ End: _________ Start: ____________ Start: ________ Goods receipt processing time: R-B1## Basic dates Production dates End: ____________ End: _________ Start: ____________ Start: ________ Goods receipt processing time: R-B4## Basic dates Production dates End: ____________ End: _________ Start: ____________ Start: ________ Goods receipt processing time: 3. From the Bill of Material Assign R-B4## to operation 50. Refresh the Stock/Requirements list for material R-F1## in plant 1000.Unit 7: Technical Process of the Planning Run SCM240 2. Using the order report. 1. From the Stock/Requirements list execute a Single-item. All rights reserved. Call the BOM for the material R-F1## in the plant 1000 with usage 1 once more. Do production dates exist now? _____________ Task 2: Component Allocation in Lead Time Scheduling To achieve timely staging of assemblies or components in lead-time scheduling. 2. you must make a component or operation assignment for the affected assemblies or components. Select planning mode 2 (re-explode BOM and routing) and scheduling 2 (lead-time scheduling). multilevel planning for material R-F1## in plant 1000. Continued on next page 426 © 2003 SAP AG. 2004/Q3 .

Compare the result with the results from the basic dates scheduling exercise. scheduling tab of the planned order you selected. What is the start date of operation 0050? 4. 427 . Review the detail of the planned order by looking at the component list. Will the assembly R-B4## also be staged at a later date in lead-time scheduling? 2004/Q3 © 2003 SAP AG. select the first planned order in the list. 5. All rights reserved. Navigate to theDet. What are the requirements dates of the different components: Component R-B1## R-B2## R-B3## R-B4## Requirement 6. From the Stock/Requirements list of R-F1## at plant 1000.SCM240 Lesson: Lead Time Scheduling in the Planning Run 3.

Select planning mode 2 (re-explode BOM and routing) and scheduling type 2 (lead-time scheduling). From the Stock/Requirements list execute Single-item. you are concerned about the supply situation of some of the components for your turbo drive R-B4##. you need to perform lead time scheduling for your pump R-F1##. 2004/Q3 . Update your routing for R-F1## to show the point of consumption for your R-B4##. you need the most detailed data available. 2. you are worried that you will be stretching your capacity beyond your capabilities. Refresh the Stock/Requirements list for material R-F1## in plant 1000. All rights reserved. Continued on next page 428 © 2003 SAP AG. In order to give your vendor more accurate information. multilevel planning for material R-F1## in plant 1000. Using the order report. you want the turbo drives to be produced as close to the actual consumption dates as possible. analyze the new scheduling situation for the planned order you selected previously. Multi-Level planning.Unit 7: Technical Process of the Planning Run SCM240 Solution 14: Lead Time Scheduling in the Planning Run Task 1: Lead Time Scheduling in the Planning Run Demand for your pump products is at an all time high. With a recent increase in demand. In addition. 1. In order to make intelligent decisions. a) b) Follow menu path: Logistics → Production → MRP → Evaluations → Stock/Requirements list (MD04) Select Single-item. and select planning mode 2 (re-explode BOM and routing) and scheduling 2 (lead-time scheduling). In order to see more exact scheduling.

Continued on next page 2004/Q3 © 2003 SAP AG. 429 . All rights reserved. Do production dates exist now? _____________ Answer: Production dates available: Yes. because requirements planning was executed with scheduling indicator 2 (lead-time scheduling).SCM240 Lesson: Lead Time Scheduling in the Planning Run R-F1## Basic dates Production dates End: ____________ End: _________ Start: ____________ Start: ________ Goods receipt processing time: R-B1## Basic dates Production dates End: ____________ End: _________ Start: ____________ Start: ________ Goods receipt processing time: R-B4## Basic dates Production dates End: ____________ End: _________ Start: ____________ Start: ________ Goods receipt processing time: a) 3.

a) b) c) d) 2. 2004/Q3 . What is the start date of operation 0050? Answer: Varies What are the requirements dates of the different components: 5. Menu path: Logistics → Production → Master Data → Bills of Material → Bill of Material → Material BOM → Change Select item R-B4## in the item overview. multilevel planning for material R-F1## in plant 1000. Navigate to theDet. Select operation 50 (install electronic turbo pump) in the operation overview and follow the menu path Edit → New assignment. Multi-Level planning. Select Extras → Operation allocation . Continued on next page 430 © 2003 SAP AG. At the top of the planned order select component overview. Select planning mode 2 (re-explode BOM and routing) and scheduling 2 (lead-time scheduling). All rights reserved. From the Stock/Requirements list of R-F1## at plant 1000. select the first planned order in the list. a) b) c) Select the first planned order and select Select Display Element Details of Element. you must make a component or operation assignment for the affected assemblies or components. Select Save From the Stock/Requirements list execute a Single-item. and select planning mode 2 (re-explode BOM and routing) and scheduling type 2 (lead-time scheduling). Return to the stock requirements list and refresh it. Review the detail of the planned order by looking at the component list. scheduling tab of the planned order you selected. a) b) Follow menu path: Logistics → Production → MRP → Evaluations → Stock/Requirements list (MD04) Select Single-item.Unit 7: Technical Process of the Planning Run SCM240 Task 2: Component Allocation in Lead Time Scheduling To achieve timely staging of assemblies or components in lead-time scheduling. c) 3. 4. 1. From the Bill of Material Assign R-B4## to operation 50. Call the BOM for the material R-F1## in the plant 1000 with usage 1 once more.

2004/Q3 © 2003 SAP AG. All rights reserved. 6. determined using component assignment. the assembly R-B4## will now be staged at a later date. the requirements are pushed back 5 working days. for the assembly R-B4##. on the start date of operation 50 of the finished product.SCM240 Lesson: Lead Time Scheduling in the Planning Run Component R-B1## R-B2## R-B3## R-B4## Requirement Varies Varies Varies Varies from the other three As a result of the positive 5 day off set for R-B4##. Will the assembly R-B4## also be staged at a later date in lead-time scheduling? a) Yes. that is. Compare the result with the results from the basic dates scheduling exercise. which is assigned to the assembly. Hint: The staging date. in lead-time scheduling does not necessarily correspond to the staging date determined in basic-date scheduling because the positive lead time is independent of lot size. 431 .

All rights reserved. 432 © 2003 SAP AG.Unit 7: Technical Process of the Planning Run SCM240 Lesson Summary You should now be able to: • Demonstrate how Lead Time Scheduling works in the Planning run • Demonstrate knowledge of configuring lead time scheduling. 2004/Q3 .

Demonstrate how a production version will be chosen during the planning run if multiple versions exist. you will learn about the process of routing selection. you will be able to: • • • • Demonstrate how a bill of material will be chosen during the planning run if multiple BOMs exist Demonstrate how a task list will be chosen during the planning run if multiple routings exist. In addition. You need to be aware of how SAP ERP will allow you to model this type of environment and allow the planning run to perform most of the sourcing decisions. In order for the system to generate 2004/Q3 © 2003 SAP AG. you will learn about Bill of material (BOM) explosion and its uses. An Overview of BOM Explosion During the planning run the net requirements calculation takes place. each planned order must determine the required quantities for assemblies produced in-house and the materials staging date for the required components and assemblies. and the scheduling for a final assembly.SCM240 Lesson: Master Data Selection during the Planning Run Lesson: 367 Master Data Selection during the Planning Run Lesson Duration: 20 Minutes Lesson Overview In this lesson. you will learn how to change the BOM status in the BOM structure. All rights reserved. along with the lot-size calculation. In this lesson. Lesson Objectives After completing this lesson. Identify how configuration can influence master data determination [Enter a description of what the instructor should discuss with the participants about the context of the lesson. 433 . you will learn to select alternative BOM and material according to production version. For materials that are manufactured in-house. In addition. Because of this you can assemble a pump using various component structures (BOMs) and you can manufacture them on different work centers/resources(Rtgs). ] Business Example At your plant you have a very flexible group of resources.

regardless of the MRP type. During the creation of each planned order. in the complete structure must be maintained in the corresponding plant. and change status/explosion date. or all of the materials and BOMs. the system determines and explodes the valid BOM for assembly in the planning run. the bill of material must be accessible. in addition to the BOM selection ID/usage. 434 © 2003 SAP AG. The production-relevant BOM items are copied as components to the planned order. 2004/Q3 . Figure 139: BOM Explosion The detailed data for the BOM explosions is displayed in the master data of a planned order. The BOM status is crucial as a validity criterion. All rights reserved.Unit 7: Technical Process of the Planning Run SCM240 dependent requirements for each planned order. The BOM. alternative selection indicator/alternative.

the system checks which alternative corresponds to the prerequisites of the alternative selection. To use the BOM in MRP.SCM240 Lesson: Master Data Selection during the Planning Run During the planning run. If the BOM structure has changed. All rights reserved. BOM Selection When a planned order is created the first step that must be completed in order to find an applicable BOM is to determine the correct BOM usage. 435 . the system creates a planning file entry with the “new BOM explosion” indicator. you must set the BOM status in the BOM header so that it is active for MRP. If the BOM structure changes. the change status on the explosion date is determined for the selected BOM alternative. the NETCH/NETPL indicators are set in the planning file of the affected material and components. In this case. the system first checks which BOM usage has the highest priority. the system creates an exception message. If you want a new BOM explosion during the production run. Then. The dependent requirements date is based on the scheduling of the superior assembly. The dependent requirements quantity is determined by the quantity factor of the BOM item. The following steps are carried out to determine the valid BOM: • In the planning run. The BOM is only re-exploded if the quantity or the date of the procurement proposal or the BOM structure has been changed. Depending upon the settings in the planning run or the planning file entry the BOM explosion might be treated differently. BOM Updates to Existing Orders In the case of existing procurement proposals. The BOM items relevant to production are copied to the planned order for the valid BOM. the system explodes the BOM for every new planned order of an assembly. In addition. • • • • The BOM must be maintained in the appropriate plant to carry out the planning run. You can view the detailed data for the BOM explosion in the planned order on the “Master data” screen. such as 2 or 3. When manual changes to the date or quantity of the planned order occur. it checks if this usage has a valid BOM on the explosion date. you can trigger this on the initial screen through the planning mode. If there are various BOM alternatives. the validity of a BOM is determined by the BOM status. 2004/Q3 © 2003 SAP AG. If necessary. the BOM explosion indicator sets in the planning file. If this is not the case. the BOM in the affected planned order and the dependent requirements are adjusted without a new planning run. This date is either determined on the basis of the basic start date or based on the production start date of the planned order operations for the high-level assembly.

it selects the usage with the next lowest priority and carries out the check for valid BOMs. the selection ID. 436 © 2003 SAP AG. Production → MRP → Planning → BOM Explosion/Routing Determination → Define BOM and Routing Selection. Production. such as Engineering/Design. that is. and Costing. You have to define which BOM usage is to be used in the planning run.Unit 7: Technical Process of the Planning Run SCM240 Figure 140: Selection of BOM Usage With the BOM usage. in the Customizing for production basic data. You can define a sequence for the selection of a valid BOM through the “usage” criterion. If the system does not find a valid BOM in the selected usage. Note: When creating a BOM the usage is one of the required fields that must be defined first. 2004/Q3 . All rights reserved. The main differences in the BOM structures result from the different tasks of the various areas that process different item data. You determine the priority of the usage for the planning run using the selection ID in the Customizing for MRP. it is possible to manage separate BOMs for the different business areas. in the IMG activity “Define Order of Priority for BOM Usages”. You define the order of priority for the BOM usage.

With alternative selection indicator 3. • 2004/Q3 © 2003 SAP AG. With indicator 2.SCM240 Lesson: Master Data Selection during the Planning Run Figure 141: Selection of Alternative BOM In the case of multiple BOMs. or fixed key date of the BOM explosion number is selected. If this is not possible. the selection is always made according to production version. you can define whether the order start date. the BOM usage. In Customizing. You can define which procedure is to be used to select the BOM for an assembly in the material master record in the Selection method field of the MRP data (MRP 4). Selection according to production version: The production version determines the different production methods that can be used to produce a material. and the effectivity period of a BOM can be defined for the alternative selection. All rights reserved. the selection is done according to lot size. Therefore. Three options are available: • • BOM selection using the order quantity (lot size): The order quantity is based on the lot size according to the selected lot-size procedure. order finish date. The alternative BOM to be selected. you have to define which alternative BOM is to be selected during the planning run. Selection according to explosion date: The system uses the explosion date to determine the valid BOM or the valid routing for a planned order. 437 . the production version contains a routing and a BOM. the selection is made according to production version when this is possible. the lot-size range.

you can use a deviating BOM selection ID by assignment in the long-term planning scenario. All rights reserved. Note: For long-term planning. From the S/R list of material R-F2## at plant 1000. Important: Point out that you do not define the routing selection in this Customizing activity. Customizing: Production → Material Requirements Planning → Planning → BOM Explosion/Routing Determination → Define BOM and Routing Selection. display the details of any planned order Select the master data tab.Unit 7: Technical Process of the Planning Run SCM240 Demonstration: BOM Selection ID/BOM Usage Purpose To demonstrate the usage and selection of BOM System Data System: Client: User ID: Password: Set up instructions: 1. 2004/Q3 . as the title suggests! 2. 3. Valid means valid on the explosion date and having the BOM status active. and point out the BOM usage field 438 © 2003 SAP AG. The BOM selection ID for MRP is defined for each plant. BOM usage: Customizing: Production → Basic Data → Bill of Material → General Data → BOM Usage → Define BOM Usages Customizing: Production → Basic Data → Bill of Material → Alternative Determination → Define Order of Priority for BOM usages The system determines the first valid usage according to the selection ID. 4.

439 . Change the strategy group to 40. 2004/Q3 © 2003 SAP AG. If the system does not find a valid or suitable alternative for the order quantity. Note: The lot size fields only appear in the header of the BOM if there is more than one BOM for a given material.SCM240 Lesson: Master Data Selection during the Planning Run BOM Explosion Based on Lot Size Figure 142: Selection by Order Quantity (Lot Size) During the planning run. The lot-size range of the alternatives of a multiple BOM is determined in the BOM header. All rights reserved. The valid alternative is exploded and dependent requirements are created for the corresponding components based on the BOM quantities Demonstration: Lot Size Selection Purpose System Data System: Client: User ID: Password: Set up instructions: 1. the system checks whether a valid alternative BOM exists for the order quantity (lot size). If only one BOM exists it is valid for all lot sizes. it creates an exception message.

999. 4.100.Unit 7: Technical Process of the Planning Run SCM240 2. 440 © 2003 SAP AG. All rights reserved. but the are valid in the same time interval. Since your customers mark down off season merchandise. 2004/Q3 . paying special attention to the lot size and the BOM Alternative. so that the lot size is from 1 . In addition. and save the results. Before saving change the quantity of the R-B230 from 1 pc to 2 pcs. 9. There for based on timing of a production run is very important. 3. The Planned order for 90 pcs should have Alt BOM 1 and the order for 150 should have Alt BOM 2 From the Material Master point out the Selection Method indicator that is set to Blank . 1) as template. Review the results of each planned order. 8. Hint: For example. using the original (Alt . However you have several BOMs that support seasonal packaging based on the foil color.999 and Save. From the S/R list execute a single-item. Create a second BOM for R-F130 at plant 1000 (alternative 2). Month 3 Month 6 Save the results 90 pcs 150 pcs. Create two planned independent requirements for R-F130 at plant 1000. in the BOM header set the lot size from 101 . 7.Order Quantity BOM Explosion Based on Order Date In certain situations where multiple BOMs overlap or you are using Engineering Change Management (ECM). Change the Alt 1 BOM for R-F130 at plant 1000. multi-level planning run. you make the same chocolate year round. they want to make sure you are sending them the right packaging mateiral for the correct holiday. 5. a planner may want the BOM to explode on a particular date. 6.

Material Requirements Planning . Caution: By default. 2004/Q3 © 2003 SAP AG.Define BOM Explosion Control.BOM Explosion/Routing Determination .SCM240 Lesson: Master Data Selection during the Planning Run Figure 143: Defining the Explosion Date In Customizing for MRP. the BOM is still exploded in the original order start date. All rights reserved. the system will create the first BOM as alternative 1. when creating BOMs unless specified. the BOM that is valid on the explosion date is selected and dependent requirements are created for the components entered there. . 441 . The first time you create a BOM for each material you may want to create the BOM using a character and a alpha combination such as A1. The following options are available for the explosion date: • • • Order start date Order finish date BOM explosion date (gross date) Note: Point out that if the order start date is adjusted to the production start date. The explosion date determines which BOM or routing is to be used for the explosion in the planning run and for the determination of dependent requirements. This is the highest priority when choosing between multiple BOMs. you can define the explosion date for the BOM and routings selection at the plant or the MRP group level. Note: If a mateiral has multiple BOMs and more than one is valid for the same lot-size and date. This means. Production . This means that the explosion date and the final order start date differ from one another. the system will use the Alternative BOM field as a priority field.

selection by order date. 2004/Q3 . from which the alternative BOM is to be used in the planning run. Then.Unit 7: Technical Process of the Planning Run SCM240 Figure 144: Explosion Using Order Start Date In order to use the explosion date for BOM determination. you define the beginning of the effectivity period for each alternative in the “Valid from” field. within which certain alternative BOMs are to be used. and the BOM alternative. plant. BOM usage.Logistics → Production → MRP → Master Data → BOM by date To define the alternative selection using dates. Note: This table allows you to define user defined validity period for MRP. you must first set the Selection Method indicatorin the Material master to 1. The default setting is that the order start date is set as the BOM explosion date. The beginning of the validity period of the next alternative on the time axis marks the end of the effectivity period of the previous alternative. the system checks the defined period for the assembly during the planning run. and the valid-from date. users can specify which alternative is valid during a specific period. If more than one BOM is valid for a period of time. enter the following parameters in the table: Material number. To assign several alternative BOMs with different effectivity periods to a material. assembly-specific periods are defined. The system checks in which period the explosion date lies and selects the corresponding alternative BOM. All rights reserved. using a master data table. The suitable alternative is exploded and dependent requirements are created for the corresponding components. This does not interface with ECM. 442 © 2003 SAP AG. or the validity periods overlap. If more then one assembly exists.

The system selects and explodes the BOM as soon as the order finish date has been determined in the scheduling. such as if the deadline is missed. If in the case of lead-time scheduling the order start date is to be adjusted to the production dates. All rights reserved. If the basic date is to be adjusted to the production date. This is applicable in the case of lead-time scheduling even before the scheduling is carried out through the routing. The BOM explosion date and the final basic date are different in this special case. 443 . If the system does not find a valid or suitable alternative. this does not change the order finish date. the BOM is still exploded on the original basic date. you can see the BOM explosion situation if you define in Customizing that the BOM explosion date is to be set as the planned order finish date. 2004/Q3 © 2003 SAP AG. Figure 145: Explosion Using Order Finish Date Here.SCM240 Lesson: Master Data Selection during the Planning Run The system selects the BOM and explodes it as soon as the basic dates have been determined in the scheduling. the BOM with the suitable lot size is used. This means that the BOM explosion date and the final basic date do not differ in this case.

Different validity for the same BOM indicates that an organization is using a form of Engineering Change Management (ECM). Every change status has a valid-from date and a valid-to date. Whether this is the order start or finish date or the gross date of the BOM explosion number. The BOM can have different compositions or statuses at different times. such as in the BOM composition. All rights reserved.Unit 7: Technical Process of the Planning Run SCM240 Figure 146: Change Status According to Order Start Date The BOM or alternative BOM can have different validity periods on the time axis due to changes that have been made. 444 © 2003 SAP AG. defined by the valid-from date of the next change. 2004/Q3 . depends on the settings made in Customizing (Customizing IMG activity “Define BOM Explosion Control”. The BOM status at the time of the explosion date is exploded.

SCM240 Lesson: Master Data Selection during the Planning Run Figure 147: Change Status According to Order Finish Date Demonstration: BOM Dates in MRP Purpose System Data System: Client: User ID: Password: Set up instructions: 1. Select New Entries Make the following two entries Material R-F130 Plant 1000 BOM Usage 1 Valid From 15th of current month Alt BOM 2 R-F130 1000 1 1st of Month 1 4 2004/Q3 © 2003 SAP AG. All rights reserved. Follow Menu path: Logistics → Production → MRP → Master Data → BOM by date 2. 445 . 3.

and the 150 pcs order should have alt 1 6. Environment → Change Material . You will then attach the BOM explosion number to the appropriate MRP element. you must define a BOM explosion number (user defined) and attach it to a specific or fixed date. All rights reserved. and Save the material Remind the students that in the previous demo it was by lot size. From the S/R list.Unit 7: Technical Process of the Planning Run SCM240 4. BOM Explosion Using Fixed Dates In certain situations planners need a specific BOM exploded for a particular production run. execute a single-item multii-level planning run. planners can tie into a specific BOM. The order quantity of 90 pcs should now have Alt 2. and using a fixed date. Select Save From the S/R list of R-F130 at plant 1000. Set the selection method to 1 . there could be large intervals between the explosion dates of the individual BOM structures under certain circumstances in the case of multiple 446 © 2003 SAP AG. Refresh the S/R list Drill into the details of each planned order. 7. In order to do this.Selection by explosion date. use planning mode 3. By selecting BOMs by explosion date. Figure 148: Explosion Using the BOM Explosion Number If the order start date of the planned order is set as the explosion date for the BOM explosion. 8. 5. 2004/Q3 .

the situation could occur that an assembly used several times is produced using different BOM compositions. Another option will be to edit and existing planned order and enter the BOM explosion number in the header of the order. You maintain a BOM explosion number in the MRP master data. During the planning run the BOM explosion number will be copied to the planned order header and change the explosion date to the fixed date in the explosion number. The BOM is exploded for all level with this gross date. The column BOMexpNo. You define BOM explosion numbers by entering the fixed key date in material requirements planning. Here is where you enter the fixed date/BOM explosion number. This will cause the explosion date to change Demonstration: BOM Explosion Numbers Purpose System Data System: Client: User ID: Password: Set up instructions: to work! Must perform the previous demo for this demo 2004/Q3 © 2003 SAP AG. You can assign the BOM explosion number (fixed date) in the following places: 1. Using the BOM explosion number. You can define the gross date for an alphanumeric BOM explosion number.SCM240 Lesson: Master Data Selection during the Planning Run BOMs. will now be changeable. 447 . Planned independent requirement Customer requirement (item screen) Sales order (item detail screen sales A) Planned order (header screen) To assign a BOM explosion number to a planned independent requirement (PIR) you must edit the PIR. If BOMs (alternatives) change over time due to various requirements. All rights reserved. This “gross date” is contained in the BOM explosion number. 2. select Settings → BOM Explosion number. Logistics → Production → MRP → Master Data → BOM Explosion Number → Edit. From Schedule lines view. you can define a standard explosion date for all BOM levels. 3. 4.

Execute a multi-level planning run. Alt 1 Alt2 Fixed Key Date 15th of Month 5 15th of Current Month Plant 1000 1000 Description Alternative 1 Alternative 2 2. Save the results. 6. 10. 5. Create two BOM explosion numbers with the following data: Logistics → Production → MRP → Master Data → BOM Explosion Number → Edit. 4. Refresh the results. BOM Explosion Based on Production Version Often times planners are forced due to the manufacturing process to tie a specific BOM to a routing or need to prioritize which BOMs or Routings are selected during the planning run. Production versions allow planners to perform both tasks if necessary. 8. 9. Select the master data view. Note the number in the header. 7. All rights reserved. 3.Unit 7: Technical Process of the Planning Run SCM240 1. Set the first requirement to BOM Explosion number Alt 1. Access the S/R list for R-F130 at plant 1000 Select the first PIR and select Change Element In the schedule line tab Settings → BOM explosion number . and review the header of the Planned order with the Alt 1. and Save Refresh the S/R list and point out the new BOM Explosion number column. 2004/Q3 . BOM Exp No. 448 © 2003 SAP AG. and point out the BOM explosion date is the same as the fixed date. Remind the students that you are now using BOM explosion dates and thus your the BOMs for your orders are sensitive to the BOM by Date table entries. BOM explosion number.

and group counter of the routing Validity period of the production version (fields “Valid from” and “valid to”) Lot-size range of the production version (fields “Lot size from” and “Lot size to”) Distribution of receipts Identify bottle neck work centers If the value “2” is entered for the selection method indicator in the material master. the selection occurs according to lot size. This is the way it happens when the selection method indicator were set to “blank”. All rights reserved. such as work centers. the 2004/Q3 © 2003 SAP AG. lot size and validity period is concerned. If the indicator is set to “3”. 449 .SCM240 Lesson: Master Data Selection during the Planning Run Figure 149: Selection by Production Version There may be different BOMs according to which a material is produced. The production version defines the following data: • • • • • • Alternative BOMs and BOM usages for the BOM explosion Task list type. the BOM is selected by production version. task list group. as long as valid data is available. This means the material can be produced on identical but different production lines. The data on the different methods according to which a material can be produced. or use a different sequence of work centers. can be combined in the production version and assigned as such to the material. If the system does not find a production version or does not find a production version which is suitable as far as usage. The production of a material can also be processed through various routings.

2. The alternative BOM is determined according to the setting for the BOM selection indicator in the material master. The BOM usage is defined by the BOM selection ID. which means that if the system does not find any selection version or does not find any appropriate selection version. 3. you should enter which date is to be used in the Customizing activity “Define BOM Explosion Control”. All rights reserved. 2004/Q3 . Caution: Production version 0001 is the highest priority. 450 © 2003 SAP AG. It is suggested that if you frequently create alternative BOMs to handle component changes. it cannot create a production order and issues an exception message. The change status of the BOM is determined using the explosion date. the system uses the production version number as a means of prioritization. If the selection is to be made according to the explosion date. use a version number starting with a character.Unit 7: Technical Process of the Planning Run SCM240 selection occurs according to production version. which you assign on a plant basis in the Customizing activity “Define BOM and Routing Selection”. The same Customizing setting as in step 2 is the basis for the choice of date. such as A001. Note: If both the lot-size and validity date of more than one production version is the same. BOM selection Summary Figure 150: Summary: BOM Selection The BOM selection in the MRP run has three steps: 1.

In the configuration of scheduling of the order type. Else. which is defined in the Customizing for MRP at the detailed scheduling level in the activity “Define scheduling parameters for planned orders” decides which routing is selected. planners attach by Planned order type/Plant/Production scheduler. Customizing → Production → Material Requirements Planning → Planning → Scheduling and Capacity Parameters → Define scheduling parameters for planned orders. In this activity you define in which order a routing will be selected using task list type and the routing status. 2004/Q3 © 2003 SAP AG. the selection ID. The “selection method” indicator in the material master (MRP 4) is also crucial for selecting the routing: • If selection method indicator has been set to value 2 or 3 (selection by production version). the system selects the routing for each planned order. basic data. • You define the selection ID of the routing selection in the Customizing for Production. the selection ID of the routing selection. All rights reserved. 451 . the routing is also selected according to the selected production version. This selection ID will be used during the planning run when expecting lead time scheduling. the staging of materials and the capacity requirements using the routing. Customizing: Production → Basic Data → Routing → Routing Selection → Select automatically. The system calculates the dates.SCM240 Lesson: Master Data Selection during the Planning Run Process of Routing Selection Figure 151: Routing Selection If you start the planning run with the scheduling indicator 2 (lead-time scheduling and capacity planning).

Customizing: Production → Basic Data → Routing → Routing Selection → Select automatically: and there using the selection ID: Priority sequence for task list type. it determines the routing using the standard logic. usage. 452 © 2003 SAP AG. This can lead to problems with indicator 3 when you convert the planned order to a production order because the production order with standard settings requires a routing according to production version and does not use the routing selected in the planned order. Note: For indicator 2. Set the selection ID Detailed scheduling for each plant. and status With selection according to production version (with selection method indicator 2 or 3) if the system cannot select a routing according to production version. this is clear and identical to the BOM selection.Unit 7: Technical Process of the Planning Run SCM240 The explosion dates of the BOM and the routing are identical. and production control. 2004/Q3 . The task list group and the group counter for the routing as well as the corresponding scheduling and capacity requirements can be seen on the screen “Detailed scheduling” for the order. If the planned order is managed using Engineering Change Management. the system uses the routing with the change status at the time of the BOM explosion date. All rights reserved. This is not the case for indicator 3. order type. Demonstration: Routing Selection Purpose To select routing for each planned order System Data System: Client: User ID: Password: Set up instructions: 1. The selection method indicator in the material master is also responsible for the routing selection like the following two settings in Customizing: Customizing → Production → Material Requirements Planning → Planning → Scheduling and Capacity Parameters → Define scheduling parameters for planned orders. as if the selection method indicator were set to“ blank”.

453 .SCM240 Lesson: Master Data Selection during the Planning Run Facilitated Discussion Discussion Questions Use the following questions to engage the participants in the discussion. All rights reserved. 2004/Q3 © 2003 SAP AG. Discuss the steps involved in BOM selection in the MRP run. Discuss why is the selection method indicator crucial for selecting the routing. Feel free to use your own additional questions.

2004/Q3 . All rights reserved. • Identify how configuration can influence master data determination 454 © 2003 SAP AG. • Demonstrate how a production version will be chosen during the planning run if multiple versions exist.Unit 7: Technical Process of the Planning Run SCM240 Lesson Summary You should now be able to: • Demonstrate how a bill of material will be chosen during the planning run if multiple BOMs exist • Demonstrate how a task list will be chosen during the planning run if multiple routings exist.

SCM240 Unit Summary Unit Summary You should now be able to: • Demonstrate how Basic Scheduling works in the Planning run • Demonstrate how scheduling works for Externally Procured materials. All rights reserved. • Identify how configuration can influence master data determination 2004/Q3 © 2003 SAP AG. • Demonstrate how a production version will be chosen during the planning run if multiple versions exist. 455 . • Demonstrate how a bill of material will be chosen during the planning run if multiple BOMs exist • Demonstrate how a task list will be chosen during the planning run if multiple routings exist. • Demonstrate how Lead Time Scheduling works in the Planning run • Demonstrate knowledge of configuring lead time scheduling.

All rights reserved. 2004/Q3 .Unit Summary SCM240 456 © 2003 SAP AG.

5. Planned orders always generate production dates? Determine whether this statement is true or false. Lead Time scheduling is used when planned orders should generate Fill in the blanks to complete the sentence. run by using the scheduling indicator Fill in the blanks to complete the sentence. you can trigger lead-time scheduling for the planning .SCM240 Test Your Knowledge 385 Test Your Knowledge 1. □ □ 2. 4. If the procurement type allows both in-house production and external procurement. 457 . □ □ 6. True False What is the difference between scheduling for in-house production and external procurement? 3. Determine whether this statement is true or false. □ □ □ □ □ A B C D E Curing time Drying time Wait time Sit around time Queue time 2004/Q3 © 2003 SAP AG. In basic scheduling. what time would be most appropriate to model this in SAP ERP? Choose the correct answer(s). All rights reserved. True False If a material had to cure for a specific time period before it could be passed to the next operation. the MRP is always based on external procurement.

While changing BOM status. For BOM explosion in MRP. The explosion dates of the BOM and the routing are identical. Determine whether this statement is true or false. Determine whether this statement is true or false. True False For selecting an alternate BOM. 11. □ □ True False 458 © 2003 SAP AG. System can create a production order even if it does not find any selection version or does not find any appropriate selection version. All rights reserved. you can define an explosion date for a BOM structure by entering a Fill in the blanks to complete the sentence. you can define the procedure to be used for field of the selecting the BOM in the MRP data. you must set the BOM status in the BOM header so that it is active for MRP. □ □ True False 10. □ □ 8. 9. Determine whether this statement is true or false.Test Your Knowledge SCM240 7. 2004/Q3 . Fill in the blanks to complete the sentence.

you can trigger lead-time scheduling for the planning run by using the scheduling indicator 2. 6. All rights reserved.SCM240 Test Your Knowledge 387 Answers 1. 3. What is the difference between scheduling for in-house production and external procurement? Answer: Scheduling for both is similar except that the in-house production time is replaced by the sum of purchasing processing time and planned delivery time in external procurement. what time would be most appropriate to model this in SAP ERP? Answer: C Wait time would be most appropriate. Curing. 2004/Q3 © 2003 SAP AG. Answer: 2 4. Answer: Capacity requirements. Planned orders always generate production dates? Answer: False Production dates are only generated in planned orders when MRP is run using scheduling mode "2" or is scheduled manually. 459 . 2. 5. Lead Time scheduling is used when planned orders should generate Capacity requirements. Answer: False The MRP is always based on in-house production if the procurement type allows both inhouse-production and external procurement. If a material had to cure for a specific time period before it could be passed to the next operation. the MRP is always based on external procurement. In basic scheduling. If the procurement type allows both in-house production and external procurement. drying and sit around time don’t ecplicitally exist in SAP ERP.

11. 10. 2004/Q3 . 8. you can define an explosion date for a BOM structure by entering a BOM explosion number. you must have set the BOM status in the BOM header so that it is active for MRP. All rights reserved. While changing BOM status. Answer: True The explosion dates of the BOM and the routing are identical. you must set the BOM status in the BOM header so that it is active for MRP. it cannot create a production order and issues an exception message. Answer: False If the system does not find any selection version or does not find any appropriate selection version. Answer: Selection method 9. For selecting an alternate BOM. For BOM explosion in MRP. System can create a production order even if it does not find any selection version or does not find any appropriate selection version. The explosion dates of the BOM and the routing are identical.Test Your Knowledge SCM240 7. 460 © 2003 SAP AG. you can define the procedure to be used for selecting the BOM in the Selection method field of the MRP data. Answer: BOM explosion number. Answer: True To use the BOM in MRP.

........ vendors.......463 Lesson: Source Determination in Manufacturing ...... Unit Objectives After completing this unit....................502 2004/Q3 © 2003 SAP AG..483 Demonstration: Quota Arrangement .......................471 Exercise 15: Source Determination in Manufacturing .... Demonstrate how to set up the system to choose the correct method of manufacturing when several exist................473 Lesson: Quota Arrangements ........................................................ 461 .................. you will be able to: • • • • • Explain what happens if multiple sources of supply exist..485 Demonstration: Quota Arrangement ... or resources......494 Exercise 16: Production Versions and Quota Arrangements ....468 Demonstration: Source Determination in Mfg ...................................... All rights reserved............481 Demonstration: Quota Arrangement ................................................ Demonstrate how to split demand between multiple sources Describe how to initiate the purchasing process as a result of the planning run Demonstrate how to split demand between multiple sources Unit Contents Lesson: Source Determination Overview.................Unit 8 389 Multiple Sources of Supply in Planning Unit Overview This unit will inform you how the system will react or can be controlled in situations were replenishment orders can be sourced from multiple plants.....................497 Lesson: Source Determination in Procurement..

.... 2004/Q3 ...... All rights reserved...513 462 © 2003 SAP AG.Unit 8: Multiple Sources of Supply in Planning SCM240 Exercise 17: Source Determination in Procurement ........

[Enter a description of what the instructor should discuss with the participants about the context of the lesson. In addition you have you might have the option to make or buy the product. In addition you have some materials that can be purchased from more than one vendor. 463 . Lesson Objectives After completing this lesson. you will be able to: • Explain what happens if multiple sources of supply exist.SCM240 Lesson: Source Determination Overview Lesson: 390 Source Determination Overview Lesson Duration: 30 Minutes Lesson Overview In this lesson you will discuss at a high level. ] Business Example Not all of your materials are single sourced. or which vendor to purchase particular materials. what happens if multiple sources of supply exist for replenishment element. All rights reserved. You have some materials that have more than one BOM. 2004/Q3 © 2003 SAP AG. and can run on more than one machine. Source Determination: Overview Over time companies will typically have to make such decisions as to which production line to run a production. Examine how you can use the planning run to initiate some of these scenarios your business deals with.

2004/Q3 .Buy (External procurement) E .Both Make or Buy) ’ ’ . planners will be able to decide what type of replenishment element will be created as a result of the planning run. The idea of external procurement can cover many different options. Here are a few options: • • • • Standard Purchase from Vendor Stock Transfer from a company facility Purchase Consignment stock from vendor Sub-contracting (service purchase order) As a result of using these options.Make (In-house Production) X . It can take the form of several replenishment or execution methods. In house manufacturing will typically take place within the plant itself. The following options are available: • • • • F . the planning run will create some from of purchasing document to initiate the replenishment process.Unit 8: Multiple Sources of Supply in Planning SCM240 Figure 152: Source Determination In the mateiral master. All rights reserved. Here a some options: • • • Production Orders (Discrete Mfg) Process Orders (Process Mfg) Planned Orders (Repetitive Mfg) 464 © 2003 SAP AG.(blank) No procurement External procurement is defined as replenishing supply from “any” outside source.

planners have the following options to help determine the source of supply: • • • • • Effectivity date Lot size Priority Quota Arrangement Source List 2004/Q3 © 2003 SAP AG. When dealing with multiple sources of supply. more often than not. This means during the planning run all scheduling will be based off of manufacturing master data. the planning run will assume in-house production. No matter what the scenario is. planners might want the sourcing details to get more specific. In a manufacturing/distribution environment. As it relates to purchasing. The purpose of the source determination process is to automatically assign a source of supply to replenishment element whether it be a planned order or purchase requisition. as it relates to planning. planners have to choose between the following: • • • • • Multiple bills of material for one material number Multiple routings or recipes for one materials Multiple production versions for one material Multiple plants suppling one/more distribution centers Multiple vendors supplying one material. companies would like these types of decisions to happen automatically. 465 . Any decisions to procure form outside sources will have to be done manually. All rights reserved. more than one vendor may be able to supply your company with a purchased item.Both.SCM240 Lesson: Source Determination Overview Caution: If the procurement type is set to X . Once the general type of procurement has been decided.

466 © 2003 SAP AG. 2004/Q3 . Feel free to use your own additional questions. All rights reserved.Unit 8: Multiple Sources of Supply in Planning SCM240 Facilitated Discussion Discussion Questions Use the following questions to engage the participants in the discussion.

2004/Q3 © 2003 SAP AG. All rights reserved.SCM240 Lesson: Source Determination Overview Lesson Summary You should now be able to: • Explain what happens if multiple sources of supply exist. 467 .

Using production versions you will alter the material master so that it will choose the newest BOM as the default during a planning run. when modeling the manufacturing environment. The following are some of problems planners come across: • • • • Multiple bills of material for one material number Multiple routings or recipes for one materials Multiple production versions for one material Multiple plants suppling one/more distribution centers 468 © 2003 SAP AG. planners may have to choose between multiple options for production. Source Determination in Manufacturing/Distribution As mentioned earlier. you will be able to: • Demonstrate how to set up the system to choose the correct method of manufacturing when several exist. planners maybe faced with certain dilemmas as it relates to sourcing. 2004/Q3 . Your pump R-F2## can be made using one of two active BOMs. Lesson Objectives After completing this lesson. [Enter a description of what the instructor should discuss with the participants about the context of the lesson.Unit 8: Multiple Sources of Supply in Planning SCM240 Lesson: 394 Source Determination in Manufacturing Lesson Duration: 30 Minutes Lesson Overview This lesson will instruct users how to set up the system to select the correct source of supply for in-house production if more than one option exists for a material. ] Business Example For those materials that are made in-house. All rights reserved.

explosion date. Both of these fields act as a priority. In regards to the Alt BOM field. the highest priority value is 01. However. This field is alpha numeric. planners need to make sure that the planning run chooses the correct BOM. when it is time to choose a BOM the Alt. In an earlier lesson you learned about how to configure the BOM selection. so by entering an alpha character when creating the BOM will allow planners to create other BOMs at a later date that have a higher priority. If all factors are equal. This allowed the planning run to choose by lot size (default). what happens if you need all BOMs valid during the same period of time? The solution to this is using either the Alternate BOM field on the BOM header or the Production Version Number.SCM240 Lesson: Source Determination in Manufacturing Figure 153: Source Determination for Multiple Bills of Material When dealing with multiple bills of materials (alternates) for one product planners have four options: • • • • Lot size Explosion Date Alternative BOM field Production Versions When dealing with multiple BOMs. 2004/Q3 © 2003 SAP AG. BOM field and the Production version number both act as a priority. the system will start with Alt BOM value 01. Using the explosion date can be very cumbersome do to the fact users have to maintain a separate table. Note: When creating the first BOM for a material. using the selection indicator in the material master. 469 . and production version. All rights reserved.

2004/Q3 .Unit 8: Multiple Sources of Supply in Planning SCM240 Figure 154: Source Determination for Multiple Routings When dealing with multiple routings/task lists. 470 © 2003 SAP AG. If all factors are equal. This field is alpha numeric. the system will start with Group counter value 1. In regards to the Group Counter field. the highest priority value is 1. and production version. Note: When creating the first routing for a material or group of materials. planners need to make sure that the planning run chooses the correct routing. what happens if you need all routings valid during the same period of time? The solution to this is using either the Group counter field on the routing header or the Production Version Number. so by entering an alpha character when creating the routing will allow planners to create other routings at a later date that have a higher priority. Both of these fields act as a priority. All rights reserved. when it is time to choose a routing the Group Counter field and the Production version number both act as a priority. Unlike the BOM the routing does not use explosion date. However. During the planning run the system can choose by lot size (default).

production version number and a quota arrangement. This field acts as a priority. 471 . Production versions are used in the following ways: • • • • Prioritize BOMs Prioritize Routings Define a Master Recipe Join a specific BOM and Routing combination During the planning run the system can choose a production version by lot size. planners need to make sure that the planning run chooses the correct production version. what happens if you need all production versions valid during the same period of time? The solution to this is using the Production Version Number.SCM240 Lesson: Source Determination in Manufacturing Figure 155: Source Determination for Multiple Production Versions When dealing with multiple production versions. However. effectivity data. Demonstration: Source Determination in Mfg Purpose Demonstrate the different ways of source determination. If all factors are equal. this will allow planners to create other production versions at a later date that have a higher priority. so by entering an alpha character when creating the production version. when it is time to choose a production version the Version number field acts as a priority. This field is alpha numeric. All rights reserved. 2004/Q3 © 2003 SAP AG.

Go to the MRP 4 view and select the drop down on the Selection Method and choose 2. 2004/Q3 . review the details of the S/R list. 10. Review the details of the planned order. 8.Unit 8: Multiple Sources of Supply in Planning SCM240 System Data System: Client: User ID: Password: Set up instructions: 1. . alt BOM 1 as a template Logistics → Production → Master Data →Bills of Material → Bill of Material → Material BOM → Create (CS01) 2. Create two new production version A001 for alt BOM A1 and version A002 for Alt BOM 01 Effective till end of next year and an unlimited lot size. using the R-F1##. execute and MRP run for R-F1## at plant 1000 with planning mode three .production version. and point out the new lot size fields. In template BOM choose Select Select all and the select Copy As. 3. you should see production versions A001 being selected. Due to the selection method and production versions. Create a new BOM R-F1## at plant 1000. note the master data tab and the BOM that was chosen. 4. and select Copy As. Enter your material number R-F1## at plant 1000. 9. 5. Save the new BOM Go to your Material master and create two production versions A001 and A002 for your material R-F1## at plant 1000Logistics → Production → Master Data → Material Master → Material → Change Immediately (MM02) In the MRP 4 view select the Production versions button. All rights reserved. alt A1. Header. From the S/R list . 7. 472 © 2003 SAP AG. 11. and select Header 6. Note: Pay attention to the message at bottom WARNING that an alternative BOM is being created. Review the routing group counter and lot size fields in the routing header Logistics → Production → Master Data → Routings → Routings → Standard Routing → Change (CA02) Enter R-F1## at plant 1000.

you will be able to: • Demonstrate how using productional versions you can select different BOMs Business Example Engineering has just come to you with a change to the R-F2## pump in plant 1000. System Data System: Client: User ID: Password: CATT: Set up instructions: Data Material Plant Usage Alternative BOM Data Production Version Description 01 Date Effectivity Detailed Planning Task List type Date Value R-F2## 1000 1 . All rights reserved. This new change will allow for the casing to made directly as part of the pump assembly order.SCM240 Lesson: Source Determination in Manufacturing 399 Exercise 15: Source Determination in Manufacturing Exercise Duration: Minutes Exercise Objectives After completing this exercise. you will need to prioritize the new BOM as the one selected during the planning. Create a new production version that will prioritize the new BOM over the old.Production A1 Date Value A001 Continuous output BOM Now . This will entail creating a new BOM for R-F2## at plant 1000 and setting the R-B1## to a phantom material. Both BOMs will be active at the same time since the previous method is still available if inventory needs to be build ahead of time due to capacity constraints.12/31/2010 Routing 2004/Q3 © 2003 SAP AG. Once these two methods of manufacturing exist. 473 .

Continued on next page 474 © 2003 SAP AG. Both BOMs will be active at the same time since the previous method is still available if inventory needs to be build ahead of time due to capacity constraints. 1. if we were to execute a planning run the system would choose alternative 01 as the priority BOM. to be chosen over 01 during the planning runs. set the R-B1## to become phantom material. In the new BOM for the R-F2## . Review the stock requirements list for your R-F2## at plant 1000.Unit 8: Multiple Sources of Supply in Planning SCM240 Group Number /Counter search by material Alt BOM BOM usage Distribution key Data Production Version Description Machine Casing Date Effectivity Detailed Planning Task List type Group Number /Counter search by material Alt BOM BOM usage Distribution key use drop down and 01 1 Delete/leave Blank Date Value 5000 Pump Assembly and Now . 1. The production manager insists that as long as capacity is available you will make the casing R-B1## at the time of assembling the R-F2##. Task 2: Source Determination in Manufacturing You now you have two active BOMs for the R-F2## at plant 1000. All rights reserved. However. Select all materials during the copy process.12/31/2010 Routing use drop down and A1 1 Delete/leave Blank Task 1: Setup Alternative Production Master Data You have just convince Engineering that manufacturing the casing R-B1## during the assembly of the R-F2## pump will save time and carrying cost. at plant 1000. using the R-F2##. Alternative BOM 1 as a template. and setting the R-B1## to a phantom material. There fore you need to create a new production versions that will allow the alternative BOM A1. 2004/Q3 . This will entail creating a new BOM for R-F2## at plant 1000. alternative A1. Create a new BOM R-F2## .

How is the current master data being chosen? 3. If you have not yet done so. set the selection method to 2 .SCM240 Lesson: Source Determination in Manufacturing 2. Review the details of the planned order. 6.selection by production version. All rights reserved. Refresh the stock requirements list again for your R-F2## at plant 1000.. From the stock requirements list for R-F2## at plant 1000. execute Single-item. 475 . create a production version to specify your new BOM using the data below. What BOM was copied into the planned order? 2004/Q3 © 2003 SAP AG. Multi-Level. setting the planning mode to 3 . From the stock requirements list for R-F2## at plant 1000. and the scheduling indicator to 2 .Delete and Recreate planning data. create a production version to specify your original BOM using the data below: Hint: If you performed the continuous output exercise . Which production version is being chosen and why? 5.Lead time scheduling. From the Stock/Requirements list for you material R-F2## at plant 1000. 4. 7. remove the Distribution key from A001 and move to the next step.

Create a new BOM R-F2## . alternative A1.Unit 8: Multiple Sources of Supply in Planning SCM240 Solution 15: Source Determination in Manufacturing Task 1: Setup Alternative Production Master Data You have just convince Engineering that manufacturing the casing R-B1## during the assembly of the R-F2## pump will save time and carrying cost.Phantom Assembly Select Save Continued on next page 476 © 2003 SAP AG. 1. In the new BOM for the R-F2## . and setting the R-B1## to a phantom material. Select item 0010 and then select In the Basic Data tab. This will entail creating a new BOM for R-F2## at plant 1000. All rights reserved. a) b) c) d) e) f) g) h) i) Follow Menu Path: Logistics → Production → Master Data →Bills of Material → Bill of Material → Material BOM → Create (CS01) Enter your data and select Copy as enter through the warning that your are creating a alternative BOM Enter Alternative 1 as your template Select Select Select all Copy Item. enter a special procurement key 50 . Alternative BOM 1 as a template. Select all materials during the copy process. 2004/Q3 . at plant 1000. Both BOMs will be active at the same time since the previous method is still available if inventory needs to be build ahead of time due to capacity constraints. set the R-B1## to become phantom material. using the R-F2##.

selection by production version. There fore you need to create a new production versions that will allow the alternative BOM A1. 3. then select Continue. 1. then using the search functionality. this was done by creating a production version and setting the selection method indicator on the MRP 4 view to 2. and proceed to the MRP 4 View Select Production Version button Enter version A001. All rights reserved. Enter Alternative BOM 1. a) b) c) From the S/R list select Environment → Change material. remove the Distribution key from A001 and move to the next step. d) e) f) Continued on next page 2004/Q3 © 2003 SAP AG. and Usage 1. you can see the production version A001 to the right side of the chart. The production manager insists that as long as capacity is available you will make the casing R-B1## at the time of assembling the R-F2##. Review the stock requirements list for your R-F2## at plant 1000. create a production version to specify your original BOM using the data below: Hint: If you performed the continuous output exercise .SCM240 Lesson: Source Determination in Manufacturing Task 2: Source Determination in Manufacturing You now you have two active BOMs for the R-F2## at plant 1000. search for your Group No. In the Planning Data section. with descriptionContinuous Output BOM 01. However. Follow menu path: Logistics → Production → MRP → Evaluations → Stock/Requirements list (MD04) How is the current master data being chosen? Answer: From the stock/requirements list. select Continue twice and continue through any messages. 477 ./Counter. under Detailed Planning. by using your material R-F2## at plant 1000. and enter today’s date and the date for end of next year. select a Task list type Routing. if we were to execute a planning run the system would choose alternative 01 as the priority BOM. a) 2. to be chosen over 01 during the planning runs. If you performed the continuous input/output exercise. From the stock requirements list for R-F2## at plant 1000.

Which production version is being chosen and why? Answer: From the stock/requirements list. and the scheduling indicator to 2 . and Usage 1. d) e) f) g) h) 5. Continued on next page 478 © 2003 SAP AG. In the Planning Data section. Set the selection method in the MRP 4 view to 2 .Lead time scheduling.Unit 8: Multiple Sources of Supply in Planning SCM240 4. by using your material R-F2## at plant 1000./Counter.. and then refresh the S/R list 6. select a Task list type Routing. execute Single-item. From the stock requirements list for R-F2## at plant 1000. setting the planning mode to 3 . under Detailed Planning. Enter Alternative BOM A1. select Continue twice and continue through any messages. a) b) c) From the S/R list select Environment → Change material.Delete and Recreate planning data. with descriptionPump Assembly and Machine Casing. set the selection method to 2 . This was done by creating a production version and setting the selection method indicator on the MRP 4 view to 2. Multi-Level. If you have not yet done so. create a production version to specify your new BOM using the data below. 2004/Q3 . a) b) Follow menu path: Logistics → Production → MRP → Evaluations → Stock/Requirements list (MD04) Select Single-item. In addition it selected production version 5000 because numbers have “higher priority” then letters in determining the source. then using the search functionality.Delete and Recreate planning data. and proceed to the MRP 4 View Select Production Version button Enter version 5000 . All rights reserved. setting the planning mode to 3 . and enter today’s date and the date for end of next year. then select Continue. you can see the production version 5000 to the right side of the chart..selection by production version. search for your Group No. Multi-Level. Refresh the stock requirements list again for your R-F2## at plant 1000.Lead time scheduling.Selection by Production version Select Save From the Stock/Requirements list for you material R-F2## at plant 1000.selection by production version. and the scheduling indicator to 2 .

Review the details of the planned order.SCM240 Lesson: Source Determination in Manufacturing 7. 479 . Select the master data tab In the Bill of Material section Alt BOM A1 copied into the planned order. All rights reserved. 2004/Q3 © 2003 SAP AG. What BOM was copied into the planned order? a) b) c) d) For the first planned order select Select Display Element Details of Elements. This was the alternative BOM that was assigned to production version 5000.

All rights reserved. 2004/Q3 . 480 © 2003 SAP AG.Unit 8: Multiple Sources of Supply in Planning SCM240 Lesson Summary You should now be able to: • Demonstrate how to set up the system to choose the correct method of manufacturing when several exist.

Set up a quota arrangement to make this happen. At the time of planning planners still need to determine a source of supply for some manufactured items. Lesson Objectives After completing this lesson. you will be able to: • Demonstrate how to split demand between multiple sources [Enter a description of what the instructor should discuss with the participants about the context of the lesson. ] Business Example Not all of your materials are single sourced. A quota arrangement item is created for each source during that period. Your production manager figures if you plan a 50/50 split.SCM240 Lesson: Quota Arrangements Lesson: 407 Quota Arrangements Lesson Duration: 30 Minutes Lesson Overview A quota arrangement represents an additional source assignment option in the process of automatic source determination. If a quota arrangement exists for a material. you can assign a quota to each individual source. In such case. The quota indicates which share of the requirements arising for the material over a certain period is to be procured from which source.the source that is 2004/Q3 © 2003 SAP AG. 481 . If a quota arrangement exists for a material. or during the requirements planning run. Determine sources with Quota Arrangements The quota arrangement facilitates the administration of sources of supply at plant level. A quota arrangement is valid for a specific period of time. it has the highest priority during source determination. Caution: If a quota arrangement applies. All rights reserved. he will be able to manage the production better. it is taken into account during source determination. the entire requested quantity of the replenishment is assigned to one source . this does not mean that the quantity of a single manually created replenishment is automatically apportioned among different sources. If you procure a certain material from a number of different sources. Currently your R-F2## is using only one bill of material and this is causing capacity issues. This lesson describes how a quota arrangement can be used when you create a purchase requisition.

Where appropriate. The breakdown of requirements according to the specified quotas can only take place if material requirements planning is used. 4. stock transfer). 482 © 2003 SAP AG. 2004/Q3 . in the header overview. 2. requirements. Specify the procurement type for each source (in-house production or external procurement). the date until which the quota arrangement is valid. specify. The start date is always the current date or the follow-on date from the end of the previous quota arrangement. not individual. Enter a quota arrangement item for each source that you wish to define in the arrangement. Figure 156: Quota Arrangement To define a quota allocation procedure for the procurement of a material. supplying plant or production version. 3. All rights reserved. It can only be carried out with regard to aggregate.Unit 8: Multiple Sources of Supply in Planning SCM240 next in line to receive the relevant order . Enter the vendor.in accordance with the quota arrangement. Specify the quota ratios on the basis of which requirements arising over the period are to be apportioned. as follows: 1. specify the special procurement type (for example. proceed as follows: After having entered the material and plant numbers on the initial screen.

Quota Arrangement usage to 4. 483 . From the S/R list. In Customizing for quota arrangements. Create quota arrangement: SAP Menu → Logistics → Production → MRP → Master Data → Quota Maintenance Demonstration: Quota Arrangement Purpose System Data System: Client: User ID: Password: Set up instructions: To activate quota arrangement. change the material master for R-F2## at plant 1000. Hint: Before you can maintain a quota arrangement item with the procurement type external procurement. which is to be found in the plant-specific purchasing/materials planning data of the material master record. All rights reserved. You make this specification in the Quota Arrangement Usage field. a source of supply (info record and/or outline agreement) must exist. so the quota arrangement is active for MRP.SCM240 Lesson: Quota Arrangements The system calculates the percentage distribution of the requirements on the basis of the quotas and updates the quota-allocated quantity following each assignment of requirements effected on the basis of the quota arrangement. you need to fulfil the following prerequisites: 1. Save Setting up the Quota Arrangement Before a quota arrangement can be maintained for a material. you define the number range for the quota arrangement and specify whether the number is to be assigned internally (by the system) or externally (through user input). in materials planning or in purchase requisitions). Set quota arrangement usage indicator: R/3 Customizing → Implementation Guide → Materials Management → Purchasing → Quota Arrangement → Define Quota Arrangement Usage. you must specify the business applications for which the quota arrangement is to be used (for example. 2004/Q3 © 2003 SAP AG.

2004/Q3 . All rights reserved.Unit 8: Multiple Sources of Supply in Planning SCM240 Figure 157: Quota Arrangement Usage 484 © 2003 SAP AG.

• Purchase requisitions The source determination process is controlled via the quota arrangement and the thus-assigned requested quantity of all purchase requisitions for this material goes into the quota-allocated quantity. Permissible combinations of the areas listed are stipulated in Customizing and combined to form keys for quota arrangement usage. This calculation is carried out by the system during the source determination process for a requested material. • Scheduling agreement The total quantity of the scheduling agreement delivery schedule lines for this material goes into the quota-allocated quantity. The following areas can be taken into consideration: • Purchase orders The quantity of the material ordered to date goes into the quota-allocated quantity. provided that a source from the quota arrangement was used. 485 . Planned orders and purchase requisitions generated via MRP have a source assigned on a quota basis. • Materials planning Source determination on the basis of quota arrangements can also be used in material requirements planning (MRP). Demonstration: Quota Arrangement Purpose To know the usage of Quota Arrangement 2004/Q3 © 2003 SAP AG. • Planned orders The total quantity of all relevant assigned planned orders for this material goes into the quota-allocated quantity. the system calculates which source is next in line for a certain requirement. and the requirement goes into the quota-allocated quantity. • Production order The total quantity from all production orders for this material goes into the quota-allocated quantity of a relevant quota arrangement item for in-house production. In the case of sources for which you have specified a quota in the current validity period. The quota-allocated quantity of the relevant quota arrangement item is updated from the areas specified via this indicator. All rights reserved.SCM240 Lesson: Quota Arrangements An entry in this field determines the areas in which the source determination facility finds the appropriate source on the basis of the quota arrangement.

The quota rating is calculated as follows: Quota rating = (quota-allocated quantity + quota base quantity / quota 486 © 2003 SAP AG.Unit 8: Multiple Sources of Supply in Planning SCM240 System Data System: Client: User ID: Password: Set up instructions: To activate quota arrangement. 2004/Q3 . Calculation the Quota Splits Figure 158: Source Determination The system assigns a quota rating to each of the sources. you need to fulfil the following prerequisites: 1. All rights reserved. You maintain the quota arrangement usage indicator in Customizing for purchasing: Customizing: Material Management → Purchasing → Quota Arrangement → Define Quota Arrangement Usage.

Use of the quota base quantity . as if the new vendor had always been a party to the quota arrangement. If the purchase requisitions are to be assigned evenly. 2004/Q3 © 2003 SAP AG. The new vendor is to be assigned the same share of forthcoming requirements as the other two. according to the formula for calculating the quota rating. who are each assigned 50% of the material requirements that arise. All rights reserved. all requirements will be allocated to the new vendor until such time as his quota rating exceeds that of one of the other two vendors. Each of these vendors has a high quota-allocated quantity because your company has already ordered a lot of material from them during the validity period of the quota arrangement.SCM240 Lesson: Quota Arrangements The individual values are as follows: • Quota-allocated quantity Total quantity of all requirements included in the quota-allocated quantity according to the quota arrangement usage indicator in the material master record. • Quota base quantity Quantity used for manual control of the quota arrangement (for example. you must define the quota base quantity for the new vendor appropriately. in the form of requisitions or purchase orders) until such time as its quota-allocated quantity exceeds that of one of the existing sources. the source with the lowest quota rating is assigned. In the automatic source determination process. However. The quota-allocated quantity is updated automatically. when new sources are included). or have it determined by the system. the lower the quota rating and the greater the probability that the relevant source will be determined as the valid source. The existing quota arrangement consists of two vendors.example: You include a new vendor in an already existing quota arrangement. You can use the quota base quantity to prevent the new source from being assigned all requirements (for example. 487 . The formula yields the following truism: The higher the quota. • Quota Number that determines how requirements are apportioned among the various sources. The quota base quantity can be used on the one hand when a new source is included in an already existing quota arrangement and on the other to remedy a disproportion between quota and quota-allocated quantity. This is achieved due to the fact that the quota base quantity acts as an additional quota-allocated quantity in the calculation of the quota rating.

Use this procedure if the allocation of requirements that arise for a material under a quota arrangement is to be based on the starting situation again.example: You create a purchase requisition for a material (100 pc) for which the source determination process in the requisition is regulated on the basis of a quota arrangement. All rights reserved. in which all sources have the same quota rating. and C are as follows: Vendor A B C Quota rating (780 + 0) / 3 = 260 (380 + 0) / 2 = 190 (0 + 260) / 1 = 260 This means that the source representing vendor B is will be assigned to the requisition item because this vendor has the lowest quota rating. the quota ratings for vendors A. After the requisition has been saved. The following table shows the current situation with regard to the quota arrangement at the time of source determination: Vendor A B C Quota 3 2 1 Quota-allocated quantity 780 380 0 Quota base quantity 0 0 260 According to the specified formula.Unit 8: Multiple Sources of Supply in Planning SCM240 The system provides the following procedures for determining the quota base quantity: • Individual calculation Calculates the quota base quantity for the selected quota arrangement items. B. Select the items whose quota base quantity is to be recalculated and choose Edit → Base Quantities → Individual Calculation. the situation regarding the quota arrangement is as follows: 488 © 2003 SAP AG. Choose Edit → Base Quantities → Collective Calculation. Calculation of quota rating . • Collective calculation Calculates the quota base quantity for all quota arrangement items. 2004/Q3 .

the quota arrangement usage indicator must have previously been set to the appropriate value in the material master record. Note: However. For the quota arrangement to be taken into account during the source determination process in material requirements planning. in the planning run it is possible to split up the requirement as per the specified quotas among the various sources in the quota arrangement. All rights reserved. BOMs and Routings can not be selected using a quota arrangements. Furthermore. Both are not mandatory. the only option planners have is to choose the production version. a production version can contain only a BOM or only a routing. 2004/Q3 © 2003 SAP AG. each source in the quota arrangement (apart from info records) must have been entered in the source list with the appropriate MRP indicator. Figure 159: Quotas in Manufacturing In source determination for manufacturing.SCM240 Lesson: Quota Arrangements Vendor A B C Quota 3 2 1 Quota-allocated quantity 780 480 0 Quota base quantity 0 0 260 Quota Arrangement in Material Requirements Planning In contrast to source assignment via quota arrangement in the manual creation of a replenishment. 489 .

Each vendor has been assigned the quota shown in the following table: Vendor A B C D Quota 4 3 2 1 Quota-allocated quantity 420 310 190 100 In requirements planning. the requirement of 1000 pc being apportioned among the four sources in the proportion 4:3:2:1. the quota-allocated quantity and quota rating are both irrelevant. 2004/Q3 . The indicator for the splitting quota must have been assigned to the lot-sizing procedure with which the material is planned (in Customizing).Unit 8: Multiple Sources of Supply in Planning SCM240 Figure 160: Requirement Splitting Whether or not a requirement is split is determined via the lot-sizing procedure that has been assigned. the Splitting indicator is set. Example of requirement splitting in materials planning: The starting situation is as follows: There is a requirement for 1000 pc of a certain material in whose master record the lot size ES (exact lot size calculation with splitting) has been set. four purchase requisitions are generated. All rights reserved. for example. In the case of a quota arrangement with splitting. The following distribution thus applies with respect to the quota arrangement: 490 © 2003 SAP AG. In the case of the lot size ES (exact lot size calculation with splitting).

SCM240 Lesson: Quota Arrangements Vendor A B C D Quota 4 3 2 1 Quota-allocated quantity 820 610 390 200 To prevent the system from splitting up a requirement that is too small in the course of a planning run. you can specify a minimum quantity for splitting. 2004/Q3 © 2003 SAP AG. via the MRP system). a minimum splitting quantity of 1200 is set. you can also specify a minimum or maximum lot size for each item of the arrangement. The lot size specified in the quota arrangement item overrides the settings in the material master record. If the lot is smaller than or equal to the minimum quantity. Example of requirement splitting with minimum splitting quantity: During the maintenance of a quota arrangement for a material with the number R-T100. When maintaining a quota arrangement. the specified lot sizes are only taken into account in the case of requisitions and planned orders that are generated automatically (that is. All rights reserved. The minimum quantity defines the lowest quantity that a lot must have before it can be split up among several sources during the requirements planning run. However. the usual quota arrangement logic applies. Since the requirement falls below the minimum quantity for splitting. no splitting takes place and the vendor with the highest quota is determined by the system as the source for the requisition. Suppose there is a requirement of 1000 pc. 491 . In the course of a planning run for material R-T100. Define lot-sizing procedure: R/3 Customizing → Implementation Guide → Materials Management → Consumption-Based Planning → Planning → Lot-Size Calculation → Define Lot-Sizing Procedure. this requirement will be converted into a single purchase requisition.

you can set the 1x indicator. the same source is reselected and a second order proposal generated for it. lot size 250 1x x 492 © 2003 SAP AG. another quota-allocation process takes place for the residual quantity. To prevent this. 2004/Q3 . All rights reserved. If the requirement quantity is less than the minimum lot size. If this indicator is set. The remaining quantity is then allocated to the next sources.Unit 8: Multiple Sources of Supply in Planning SCM240 Figure 161: Lot Sizes • Maximum lot size per quota arrangement item A maximum lot size is defined as the maximum PO quantity that may be assigned per order proposal to a source in the requirements planning run. If the requirement quantity exceeds the maximum lot size. a source is not taken into account for more than one lot with a quantity equal to the maximum lot size per planning run. It may now happen that. Example of maximum lot size with 1x indicator: There is a requirement for 500 pc of a certain material. due to a low quota rating. The starting situation is as shown in the following table: Vendor A B Quota 3 1 Quota-allocated quantity 100 200 Max. the lot is assigned to the source with a quantity equal to the minimum lot size. • Minimum lot size per quota arrangement item A minimum lot size is defined as the minimum PO quantity that may be assigned per order proposal to a source in the requirements planning run.

A quota arrangement item is not suggested as the source if the quota-allocated quantity is . In addition to a minimum and/or maximum lot size. All rights reserved. Figure 162: Maximum Quantity Example of maximum quantity There is a requirement for 800 pc of material R-T100. Without the 1x indicator. you can also specify a maximum quantity in a quota arrangement item. the planning run would generate two requisitions for 250 pc with vendor A as the source.or would become .SCM240 Lesson: Quota Arrangements Due to the fact that the 1x indicator has been set. The quota arrangement has been maintained in the system according to the following table: Vendor A B Quota 1 2 Quota-allocated quantity 1500 3800 Max.greater than or equal to the maximum quantity. quantity 2000 2004/Q3 © 2003 SAP AG. The maximum quantity acts as a limit value for the quota-allocated quantity for a source. a planning run will result in the generation of one requisition for 250 pc with vendor A as the source and one requisition for 250 pc with vendor B as the source. The maximum quantity is taken into account in both the manual creation of purchase requisitions and the automatic generation of requisitions within the framework of material requirements planning. 493 .

3. the maximum quantity would be exceeded if the former were to be assigned to the requisition as the source. If the maximum quantity were not 2000 but 2500 pc. using planning mode 3. The quota arrangement usage indicator must be set in the material master. Version 1000 1000 A001 A002 Quota 50 50 494 © 2003 SAP AG. 2. Type E E SP key E E Plng Plant Prod. A source list entry must exist for external procurement. 4. Execute and MRP run for R-F2## at plant 1000. 2004/Q3 . you need to fulfil the following prerequisites: 1.Unit 8: Multiple Sources of Supply in Planning SCM240 With this starting situation. including “MRP-Relevant” indicator. Proc. Although vendor A has a lower quota rating than vendor B. Demonstration: Quota Arrangement Purpose To know the usage of Quota Arrangement System Data System: Client: User ID: Password: Set up instructions: To activate quota arrangement. Review the S/R list and note the production version alternating. Select your validity period and select Item Overview Enter the following: Quota 1 2 Save 5. Create a quota arrangement for the R-F2## at plant 1000 Logistics → Production → MRP → Master Data → Quota Maintenance Set a validity date till end of next year. All rights reserved. a planning run would result in the generation of one requisition for 800 pc with vendor B as the source. due to the already quota-allocated quantity of 1500 pc. the system would assign vendor A as the source. 7. 6. 8.

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9.

You maintain the quota arrangement usage indicator in Customizing for purchasing: Customizing: Material Management → Purchasing → Quota Arrangement → Define Quota Arrangement Usage.

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Exercise 16: Production Versions and Quota Arrangements
Exercise Duration: Minutes

Exercise Objectives
After completing this exercise, you will be able to: • Demonstrate how Quota Arrangements are used in manufacturing

Business Example
Not all of your materials are single sourced. At the time of planning planners still need to determine a source of supply for some manufactured items. Currently your R-F2## is using only one bill of material and this is causing capacity issues. Your production manager figures if you plan a 50/50 split, he will be able to manage the production better. Set up a quota arrangement to make this happen.

System Data
System: Client: User ID: Password: CATT: Set up instructions:

Task: Quota Arrangements in Manufacturing
Currently your R-F2## is using only one bill of material and this is causing capacity issues. Your production manager figures if you plan a 50/50 split, he will be able to manage the production better. Set up a quota arrangement to make this happen. 1. Create a quota arrangement for the R-F2## at plant 1000 that specifies a 50/50 split between your production version A001 and 5000. make it valid from now till the end of next year. From the Stock/Requirements list, execute a Single-item, Multi-level MRP run for R-F2## at plant 1000, using planning mode 3.

2.

Continued on next page

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3.

Prior to refreshing the Stock/Requirements list, how can you tell replenishment is being driven by a Quota Arrangement

4.

Refresh the Stock/Requirements list, what is the result of the MRP run.

5.

What is the split between the two production versions: Production Version 5000 A001 Allocated Qty

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Solution 16: Production Versions and Quota Arrangements
Task: Quota Arrangements in Manufacturing
Currently your R-F2## is using only one bill of material and this is causing capacity issues. Your production manager figures if you plan a 50/50 split, he will be able to manage the production better. Set up a quota arrangement to make this happen. 1. Create a quota arrangement for the R-F2## at plant 1000 that specifies a 50/50 split between your production version A001 and 5000. make it valid from now till the end of next year. a) b) c) d) e) Follow menu path:Radiologists → Production → MRP → Master Data → Quota Maintenance Enter your mateiral R-F2## and plant 1000 and press ENTER Set a validity date till end of next year. Select your validity period and select Item Overview Enter the following: Quota 1 2 f) 2. Select Proc. Type E E Save SP key E E Plng Plant 1000 1000 Prod. Version A001 A002 Quota 50 50

From the Stock/Requirements list, execute a Single-item, Multi-level MRP run for R-F2## at plant 1000, using planning mode 3. a) b) Follow menu path: Logistics → Production → MRP → Evaluations → Stock/Requirements list (MD04) Select Single-item, Multi-level MRP

3.

Prior to refreshing the Stock/Requirements list, how can you tell replenishment is being driven by a Quota Arrangement Answer: A new icon at the top appears labeled Quota Arrangement Refresh the Stock/Requirements list, what is the result of the MRP run. Answer: Making sure to look at the production version column you can see that planning run seems to be “almost ” alternating between production versions Continued on next page

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5.

What is the split between the two production versions: Production Version 5000 A001 a) b) c) d) Production Version 5000 A001 Allocated Qty Varies Varies From the Stock/Requirements list, Select Quota Arrangement icon Enter Through the warning Select the valid period of time and select Item overview Allocated Qty

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Lesson Summary
You should now be able to: • Demonstrate how to split demand between multiple sources

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Source Determination in Procurement
Lesson Duration: 30 Minutes

Lesson Overview
This lesson shows you how the source list is used in purchasing and in material requirements planning. It provides an overview of how you can use the source list to influence the process of automatic source determination that takes place when a purchase requisition is created and during the requirements planning run.

Lesson Objectives
After completing this lesson, you will be able to: • • Describe how to initiate the purchasing process as a result of the planning run Demonstrate how to split demand between multiple sources

[Enter a description of what the instructor should discuss with the participants about the context of the lesson. ]

Business Example
Not all of your materials are made in house. You are still required to purchase your raw materials from external suppliers. Some vendors will store material at your location till its use, other suppliers act as sub-contractors. Examine how you can use the planning run to initiate some of these scenarios your business deals with.

Source Determination in Purchasing
Prior to initiating the planning run, planners can have purchasing related replenishment created as a result of a short. Items that are purchased frequently will typically have purchasing master data stored: • • • • • Purchasing Information Records Scheduling Agreements Purchasing Contracts Source lists. Quota Arrangements

If the requester has set the Source Determination indicator in the requisition header, the system searches for possible sources of supply for all the items of the requisition. If the system finds several valid sources for an item, the decision process can be supported by a price simulation or by reference to data from the vendor evaluation facility.

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Figure 163: Source Determination: Overview

To have the system assign a single unique source during the automatic source determination process, you can make use of a source list and/or a quota arrangement.

Figure 164: Master Data in Purchasing

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In the source list, you specify which source of supply is valid for a certain period of time. You can specify a preferred source as fixed for a certain period in the source list. In automatic source determination, the system will then suggest just this source, even if other potential sources exist. With the aid of a quota arrangement, you can have material requirements arising over a certain period divided up among different sources on the basis of quotas. Quota arrangements determine which source of supply (maybe from among several possible ones) is automatically assigned to a purchase requisition.

Functions of the Source List
You use the source list to administer your sources of supply. The source list contains the allowed and prohibited sources of a material in a certain plant over a certain period. Each source is defined by a source list record. The source list has the following purposes: • • Restriction of the selection of sources during the automatic source determination process Definition of a source as fixed, meaning that the relevant source counts as preferred for a stipulated period during automatic source determination (For example, the preferred vendor for material 1 is Miller Corp. in the first quarter and Myers & Co. in the second quarter.) • Definition of a source as blocked (This means, for example, that no release orders can be issued against, say, contract 4712 for a certain period.)

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Figure 165: Source List

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Each source list record consists of the following data: • • Validity period Period within which the settings made in the source list are valid. Key source data Number of the vendor and the responsible purchasing organization (info records) or number and item of the outline agreement (scheduling agreement or contract) representing the source of supply for the material. • Fixed source Select the Fixed field to define a source as preferred for the purposes of automatic source determination. Within a validity period, not more than one source should be flagged as Fixed, since otherwise the automatic source determination would not produce a unique result. • Procurement plant If the material can be procured from a plant or another point within your firm, enter the plant number in the field and leave the field for the vendor number and/or contract number empty. • Blocked source Select the Blocked field to define a source of supply as blocked. The info record or outline agreement is not suggested in the course of the source determination process and no PO can be created for the source in question. Hint: If you set the Blocked indicator and enter only one validity period, the material is excluded from external procurement; that is, it cannot be ordered during this period. • MRP You use the MRP indicator to determine whether an automatic source determination process is carried out during the requirements planning run. The appropriate source is then automatically assigned to a purchase requisition, or scheduling agreement delivery schedule lines can be generated directly via the planning run. If you wish to prevent a material from being ordered from a vendor for whom no corresponding source has been entered in the source list, define the material as subject to a source list requirement in the material master record.

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Figure 166: Source List Requirement (Material-Related)

Hint: If an attempt is made to order a material subject to a source list requirement from a source that is not included in the source list, the standard system issues an error message with the text: “Source not included in list despite source list requirement”. This error message (no. 06 722) can be changed to a warning message in Customizing for purchasing. In Customizing, you can specify that all materials for a certain plant are to be subject to a source list requirement. If a source list requirement has been defined for a plant, you must maintain the source list for every material in the plant before a material can be procured for the plant.

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you can find out whether source list records exist for materials of a plant within a certain period. 2004/Q3 . Define source list requirement at plant level: R/3 Customizing → Implementation Guide → Materials Management → Purchasing → Source List → Define Source List Requirement at Plant Level. 508 © 2003 SAP AG.Unit 8: Multiple Sources of Supply in Planning SCM240 Figure 167: Source List Requirement (Plant-Related) Hint: With the source list analysis. All rights reserved. you can identify the materials for which source list records are missing for a plant with a source list requirement. In this way. Analyze source list: SAP Menu → Logistics → Materials Management → Purchasing → Master Data → Source List → Follow-On Functions → Analyze.

All rights reserved. 509 .SCM240 Lesson: Source Determination in Procurement Creation of Source List Records Figure 168: Create Source List Records 2004/Q3 © 2003 SAP AG.

• Creation from within an outline agreement With this procedure. All rights reserved. Before generating source list records. only info records. delete or leave unchanged)?. If the info record is valid for an entire purchasing organization.Unit 8: Multiple Sources of Supply in Planning SCM240 You can create source list records for individual sources of a material as follows: • Manually This method is recommended if you have to make numerous changes to. The source list records can be generated for several materials (collective procedure) or for a single material (individual procedure). you can create the source list for all plants of the organization in question. you should answer the following questions: – – – – For which materials or plants are source list records to be generated? Are only outline agreement items. Choose the plant via Goto → Plant. 2004/Q3 . or new entries in. On the outline agreement overview screen. you can generate a source list record for every info record and/or every outline agreement item for a material or several materials. you can adopt an item from an outline agreement in a source list when creating or changing the agreement. With this procedure. • Automatically You can have source list records generated automatically by the system. 510 © 2003 SAP AG. you must decide how the system is to treat the old records (for example. select an item for which you wish to enter source list records and choose Item → Maintain Source List. you must enter the plant for each source list record. If you have not entered a plant in the outline agreement item. • Creation from within an info record With this procedure. Caution: This functionality is not suitable for updating your source lists because source list records cannot be automatically generated just for the new sources. In the info record. choose Extras → Source List. a source list. or both to be taken into account? For which period are the source list records that are to be generated to be valid? Do source list records already exist for the materials for which you wish to generate source list records? If so. The system thus enables you to create or update all the records for a certain source list very quickly. you can enter a vendor in the source list when creating or changing a purchasing info record.

All rights reserved.SCM240 Lesson: Source Determination in Procurement Create source list manually: SAP Menu → Logistics → Materials Management → Purchasing → Master Data → Source List → Maintain/Display. 2004/Q3 © 2003 SAP AG. Generate source list automatically: SAP Menu → Logistics → Materials Management → Purchasing → Master Data → Source List → Follow-On Functions → Generate. 511 .

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Vendor 1002 (SKF Kugelmeier KGaA) is currently your primary vendor. All rights reserved.] Data Material Plant Purch Org Scope of list Data Vendor 1000: Vendor 1001: Vendor 1002: Data Date Value R-T2## 1000 1000 RAHM Date Value 25 60 15 Date Value 2004/Q3 © 2003 SAP AG. Set up a quota arrangement to make sure the split is 25/60/15 respectively System Data System: Client: User ID: Password: CATT: Set up instructions: 1.SCM240 Lesson: Source Determination in Procurement 437 Exercise 17: Source Determination in Procurement Exercise Duration: Minutes Exercise Objectives After completing this exercise. 1001. 513 . and 1002. [Enter all instructions necessary for the maintenance of this exercise. Examine the details of the purchasing master data. you will be able to: • Demonstrate using a source list in the planning run • Demonstrate using a quota arrangement in purchasing Business Example All of your raw materials are procured externally. Four months from now your are going to split the demand between vendors 1000. This material is procured from several venders. Your flat gasket R-T2## is used in the production of the casing R-B1##.

From the Stock/Requirements list for R-F2## at plant 1000. 3. What is the cost per part? How many scheduling agreements are currently active for your flat gasket R-T2##? Review your source list for R-T2## at plant 1000. All rights reserved. Review the scheduling agreement for flat gasket R-T2##.Unit 8: Multiple Sources of Supply in Planning SCM240 Create Purch Req. 8.. 2. Use scheduling agreement 5500000124. multi-level MRP run. Which vendor/scheduling agreement is the priority during planning.: Delivery Schedules: Planning Mode: 1 3 3 Task 1: Procurement via the Planning run 1. Will a schedule line or purchase requisition be created for the R-T2## ? 7. execute a Single-item. Continued on next page 514 © 2003 SAP AG. Which Vendor is the preferred vendor and how do you know this? 6. 5. How many vendors are in your source list? 4.Schedule lines and the planning mode to 3. Be sure to set the Delivery schedule indicator to 3 . 2004/Q3 . Review the Stock/Requirements list for your flat gasket R-T2## at plant 1000.

At the bottom of the Stock/Requirements list select Vendor. starting four months from now till the end of next year. you are not sure if they can handle the volumes. 2. and 1002. What is the split between the three vendors ?: Continued on next page 2004/Q3 © 2003 SAP AG. Set up a quota arrangement to make sure the split is 25/60/15 respectively 1. What happens as a result? 6. Four months from now your are going to split the demand between vendors 1000. 3. What Does the MRP Element data refer to? Task 2: Purchasing Quota Arrangements in MRP (Time Permitting) Your other two vendors have provided you with competitive bids for the flat gasket R-T2##. As test.SCM240 Lesson: Source Determination in Procurement 9. Create a quota arrangement for R-T2## at plant 1000. you are going to split some of the demand between all three vendors still giving vendor 1001 the bulk of the demand. 5. 1001. All rights reserved. that reflects the following: From the Stock/Requirements list for your flat gasket R-T2## at plant 1000. However. 515 . execute Single-item. and what is the result? 4. Multi-level MRP. change the material master to activate your quota arrangement (MRP 2 view) From the Stock/Requirements list for your flat gasket R-T2## at plant 1000. making sure to set the following indicators in the planning run: Refresh the stock requirements.

Unit 8: Multiple Sources of Supply in Planning SCM240 Production Version 1000 1001 1002 Allocated Qty 516 © 2003 SAP AG. 2004/Q3 . All rights reserved.

the Delivery Schedule indicator in the planning run or MRP group will allow it. What is the cost per part? a) b) 2. Review your source list for R-T2## at plant 1000. 6. Continued on next page 2004/Q3 © 2003 SAP AG.10 per piece.. Review the scheduling agreement for flat gasket R-T2##. and 10002 Which Vendor is the preferred vendor and how do you know this? Answer: Vendor 1001 is the preferred vendor. since the fixed source of supply indicator is set. Which vendor/scheduling agreement is the priority during planning. 10001. a) b) Follow menu path:Logistics → Materials Management → Purchasing → Master Data→ Source List → Display (ME03) Enter your material R-T2## at plant 1000 and select Enter 4. 517 . How many vendors are in your source list? Answer: Three. Use scheduling agreement 5500000124. 5. Vendors 1000. How many scheduling agreements are currently active for your flat gasket R-T2##? a) b) c) Follow menu path:Logistics → Materials Management → Purchasing → Outline Agreement → List Displays→ By Material (ME3M) Enter the data parameters and select 5500000123 5500000124 5500000125 Execute. Follow menu path:Logistics → Materials Management → Purchasing → Outline Agreement → Scheduling Agreement → Display (ME33L) Net price is $0. Answer: Three scheduling agreements: 3.SCM240 Lesson: Source Determination in Procurement Solution 17: Source Determination in Procurement Task 1: Procurement via the Planning run 1. All rights reserved. Will a schedule line or purchase requisition be created for the R-T2## ? Answer: Due to the Source list usage in MRP indicator vendor 1001 is set to generate schedule lines if.

Schedule lines and the planning mode to 3 . All rights reserved. Review the Stock/Requirements list for your flat gasket R-T2## at plant 1000.Schedule lines and the planning mode to 3.Unit 8: Multiple Sources of Supply in Planning SCM240 7. a) b) c) Follow menu path: Logistics → Production → MRP → Evaluations→ Stock/Requirements list (MD04) Select Refresh You should now see planned orders or purchase reqs being replaced by schedule lines. execute a Single-item. Continued on next page 518 © 2003 SAP AG.Delete and recreate planning data 8. multi-level MRP run. a) b) Follow menu path: Logistics → Production → MRP → Evaluations→ Stock/Requirements list (MD04) Select Single-item. What Does the MRP Element data refer to? Answer: The MRP element data is referring to the Scheduling agreement number and the item number for the R-T2## on that scheduling agreement. Be sure to set the Delivery schedule indicator to 3 . 2004/Q3 . 9. From the Stock/Requirements list for R-F2## at plant 1000. multi-level and set the Delivery schedule indicator to 3 .

you are not sure if they can handle the volumes. 1001. that reflects the following: a) b) c) d) Follow menu path: Logistics → Production → MRP → Master Data → Quota Maintenance (MEQ1) Enter mateiral R-T2## at plant 1000 and select Enter In the overview screen. you are going to split some of the demand between all three vendors still giving vendor 1001 the bulk of the demand. All rights reserved. Select Save. change the material master to activate your quota arrangement (MRP 2 view) a) b) c) d) Follow menu path: Logistics → Production → MRP → Evaluations→ Stock/Requirements list (MD04) Follow menu path: Environment → Change Material In the MRP 2 view set the Quota Arrangement usage to 4. 25 60 15 e) f) g) 2. However. Type F F F Vendor 1000 1001 1002 Save. Continued on next page 2004/Q3 © 2003 SAP AG. Create a quota arrangement for R-T2## at plant 1000. enter a valid to date that is End of next Month Enter a second valid to date that is End on month + four months from the previous validity periods end date.SCM240 Lesson: Source Determination in Procurement Task 2: Purchasing Quota Arrangements in MRP (Time Permitting) Your other two vendors have provided you with competitive bids for the flat gasket R-T2##. and 1002. Set up a quota arrangement to make sure the split is 25/60/15 respectively 1. Select From the Stock/Requirements list for your flat gasket R-T2## at plant 1000. Four months from now your are going to split the demand between vendors 1000. (add three months to the previous end period) Select the second validity period and then select theItem overview Enter the following: Proc. Quota Percent. starting four months from now till the end of next year. 519 . As test.

and what is the result? Answer: After running the MRP run you can know see schedule lines for the priority vendor. 2004/Q3 . Multi-level MRP. execute Single-item. Refresh the stock requirements. 5. two new columns appear to the right identifying the vendor number and the vendor name. All rights reserved. Note: the quota arrangement takes priority over the source list! 6. and purchase requisitions or planned orders/ExtP for the other two vendors. Multi-levelfrom you icon bar set the indicators as instructed 4. From the Stock/Requirements list for your flat gasket R-T2## at plant 1000. In addition if you drill into the details of the planned orders/purchase reqs you will see the vendor was assigned. What is the split between the three vendors ?: Continued on next page 520 © 2003 SAP AG. in addition if the MRP usages was set to 2 . scheduling agreements would have been created for all replenishment elements.Scheduling agreement in the Source list. making sure to set the following indicators in the planning run: a) From the S/R list select Single-item. What happens as a result? Answer: Upon select the vendor button. At the bottom of the Stock/Requirements list select Vendor.Unit 8: Multiple Sources of Supply in Planning SCM240 3. Note: Purchase req versus planned order was controlled by the MRP group/planning run setting for purchase reqs.

All rights reserved. 521 . Select Quota Arrangement icon Enter Through the warning Select the valid period of time and select Item overview Allocated Qty Varies Varies Varies 2004/Q3 © 2003 SAP AG.SCM240 Lesson: Source Determination in Procurement Production Version 1000 1001 1002 a) b) c) d) Production Version 1000 1001 1002 Allocated Qty From the Stock/Requirements list.

Unit 8: Multiple Sources of Supply in Planning SCM240 Lesson Summary You should now be able to: • Describe how to initiate the purchasing process as a result of the planning run • Demonstrate how to split demand between multiple sources 522 © 2003 SAP AG. All rights reserved. 2004/Q3 .

523 . • Demonstrate how to set up the system to choose the correct method of manufacturing when several exist. All rights reserved. • Demonstrate how to split demand between multiple sources • Describe how to initiate the purchasing process as a result of the planning run • Demonstrate how to split demand between multiple sources 2004/Q3 © 2003 SAP AG.SCM240 Unit Summary Unit Summary You should now be able to: • Explain what happens if multiple sources of supply exist.

2004/Q3 .Unit Summary SCM240 524 © 2003 SAP AG. All rights reserved.

□ □ □ □ □ A B C D E Lot Size Explosion Date Alternative BOM Production Version All of the above 2004/Q3 © 2003 SAP AG. □ □ 3. 4. All rights reserved. What criteria might planning use to determine a BOM for a material produced in-house? Choose the correct answer(s). Determine whether this statement is true or false. A material may be both In House Production and Procured Externally.SCM240 Test Your Knowledge 449 Test Your Knowledge 1. Why might multiple in-house production sources exist? 5. True False If a material is assigned procurement type = “X” what type of planned order will be generated by MRP (assuming no quota arrangements exist). What are the two general categories that define a source? 2. 525 .

If multiple production versions exist (A001 & A002) and there is no difference in the lot size or validity period. A B C D E External vendors Other Plants In house Manufacturing Safety Stock All of the above What prerequisite field in the material master must be set for planning to use quotas? 10. If a new vendor is certified. □ □ □ □ □ 9. which will planning choose? Why? 7.Test Your Knowledge SCM240 6. how would you prevent the new vedor from getting disproportionate share of the requirements? 526 © 2003 SAP AG. 2004/Q3 . All rights reserved. What does quota rating define? 8. Quota arrangements may be used to split procurement elements between what types of sources? Choose the correct answer(s).

□ □ True False 12. What are they. Quotas always determine a source using the cumulative quantities and not split strictly based on percentages. 2004/Q3 © 2003 SAP AG. 527 . All rights reserved. Determine whether this statement is true or false.SCM240 Test Your Knowledge 11. One of two possible items must exist for planning to aotomatically a purchased source.

What does quota rating define? Answer: Quota rating defines which source of material supply is next in line. B. A material may be both In House Production and Procured Externally. 7. the version number becomes the determining factor. C All are valid EXCEPT safety stock. 6. 528 © 2003 SAP AG. Quota arrangements may be used to split procurement elements between what types of sources? Answer: A. What criteria might planning use to determine a BOM for a material produced in-house? Answer: E All of the above are valid determining factors. If a material is assigned procurement type = “X” what type of planned order will be generated by MRP (assuming no quota arrangements exist). If multiple production versions exist (A001 & A002) and there is no difference in the lot size or validity period.Test Your Knowledge SCM240 452 Answers 1. 2004/Q3 . All rights reserved. 8. which will planning choose? Why? Answer: A001. 5. What are the two general categories that define a source? Answer: Produced In House (manufactured) or Procured Externally (purchased) 2. Answer: True Procurement Type = "X" 3. Answer: In House Production 4. Why might multiple in-house production sources exist? Answer: There may be more than one BOM or Routing.

Quotas always determine a source using the cumulative quantities and not split strictly based on percentages. One of two possible items must exist for planning to aotomatically a purchased source. However splitting may be permitted. Answer: True Source decisions are based on the cumulative quantities. If a new vendor is certified. What prerequisite field in the material master must be set for planning to use quotas? Answer: The quota arrangement usage field must be set. What are they. 2004/Q3 © 2003 SAP AG. 10. All rights reserved. 12. how would you prevent the new vedor from getting disproportionate share of the requirements? Answer: Adjust the quota base quantities. Answer: A source list or quota arrangement must exist. 11.SCM240 Test Your Knowledge 9. 529 .

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.................... All rights reserved........Unit 9 455 Life Cycle Planning Unit Overview This unit will introduce you to the functionality of product replacement or discontinuation. you will be able to: • • • Demonstrate how to phase in a product using Simple Discontinuation Demonstrate how to phase in a product using Parallel Discontinuation Explain how Engineering Change Management works With Discontinuation.......................532 Demonstration: ................539 Exercise 18: Discontinuation in production planning ....................................541 2004/Q3 © 2003 SAP AG.........535 Demonstration: .......... 531 ........... Unit Objectives After completing this unit........... Unit Contents Lesson: Discontinuation in Production Planning.......................... You will learn of the functionality that will properly allow you phase an existing component out and introduce its replacement while considering inventory....

These changes may be necessary for the following reasons. [Enter a description of what the instructor should discuss with the participants about the context of the lesson. ] Business Example Due to constant improvements in technology. planners can 532 © 2003 SAP AG. it may be decided that a material is to be replaced by another material on a particular date. and other design related changes. 2004/Q3 . Lesson Objectives After completing this lesson. your engineering department is constant upgrading your pump based on new components.Unit 9: Life Cycle Planning SCM240 Lesson: 456 Discontinuation in Production Planning Lesson Duration: 45 Minutes Lesson Overview In this lesson will you will learn how to model then end of a life cycle for a certain product by using the Discontinued Parts Functionality in SAP ERP. In stead of creating new finished mateiral numbers you will continue to use the same part number but update the bill of material to reflect any changes. changes in part specification. Through the use of the discontinued parts functionality. Since these changes are inventory and time dependent you will explore your options of modeling this process in SAP ERP. A certain component must therefore be exchanged as it is no longer in accordance with safety regulations A cost-intensive part is replaced by a more favorably priced part • When a material on a BOM is being replaced by another material users will need to select a specific data in the BOM that the change will be effective. All rights reserved. Simple Discontinuation In engineering/design. Often times these dates do not coincide with the level of inventory on the part be replaced or obsoleted. you will be able to: • • • Demonstrate how to phase in a product using Simple Discontinuation Demonstrate how to phase in a product using Parallel Discontinuation Explain how Engineering Change Management works With Discontinuation. for example: • Other safety regulations are to apply from a particular date.

the planning run will substitute the follow up material in the planned order. for example due to a repeat order. Once inventory falls to zero.SCM240 Lesson: Discontinuation in Production Planning identify a follow up material and plan a start date for the run out of material. the follow-up material (instead of the discontinued material) is procured. 2004/Q3 © 2003 SAP AG. this material is used again. 533 . the dependent requirements of the discontinued material are diverted to the follow-up material. All rights reserved. If the available stock of the follow-up material is not adequate. Simple discontinuation occurs when a discontinued component is replaced by a follow-up material from a particular date as soon as the available stock for planning of the discontinued component is zero. Caution: The safety stock of the discontinued material is not touched by MRP. If this part is to become obsolete. the safety stock should be removed. This means that when the available stock for planning of the discontinued material reaches zero. planners can use the simple discontinuation functionality. Figure 169: Simple/Single Discontinuation When the situation arises that one mateiral will be replaced by another material. If the available stock for planning of the discontinued material becomes larger than zero again.

The system will only allow one “planned ” change. As of Release 3. Note: Reservations for a part to be discontinued are not redirected to the follow-up material. master production scheduling and material requirements planning. Discontinuation is not supported for co-products To make this work . In the discontinued parts procedure. All rights reserved. This functionality will over ride the BOM effectivity dates! Note: Discontinued parts functions in the same way in long-term planning.0D. Caution: You cannot use a serial change of discontinuation. you decide the date from which the stocks of the current material are to be used up. By defining an effective-out date. Caution: The follow-up material can be maintained in the bill of material as the follow-up material for information purposes. you have to set the discontinued parts indicator 1 Single/Parallel discontinued part/material in the material master record of the discontinued component.Unit 9: Life Cycle Planning SCM240 Prerequisites • • • Both materials are planned using MRP The base unit of measure of the follow-up material is the same as the base unit of measure of the discontinued material You can define discontinuation data for the following item categories: – – Stock item Variable-size item Note: Discontinuation will not work in the following instances • • You can only define discontinuation data for a stock item or variable-size item that is not assigned to an alternative item group. the system only automatically redirects the dependent requirements in materials planning. 2004/Q3 . must enter a follow-up material. When the available balance reached zero. In addition you. the dependent requirements will created for the follow-up material. existing reservations after the effective-out date are marked with exception message 58 "Uncovered requirements after the effective-out date" on the MRP list. 534 © 2003 SAP AG.

535 . but sturdier material to make your shaft from. 4. Multi-level planning run with planning mode 3. for the R-F1## at plant 1000. All rights reserved. Check the Stock/Requirements list for the R-B2## and the R-B22## at plant 1000 did discontinuation occur? Dependent Parallel Discontinuation In certain situations. Save the material. By changing the diameter of the shaft you have to change the diameter in the gears the get welded to the shaft. Hint: Example: marketing is changing the graphics on the front label on bottle of water. Execute a single-item. Display Stock/Requirements list for the R-B2## at plant 1000. 2. You will replace the component R-B2## with component R-B22##. other materials may be affected by the change. change the material R-B2## at plant 1000 so that it will be replaced by the R-B22## immediately. 3. Therefore when you run out of inventory of one label you must replace the other. 5. which allows the m to shrink the diameter of the shaft. when one material is being replace. In demand management create a PIR for next month for 40 pcs and split the requirement into weekly or daily buckets. These changes will affect the back label as well.SCM240 Lesson: Discontinuation in Production Planning Demonstration: Purpose Demo simple discontinuation System Data System: Client: User ID: Password: Set up instructions: Focus on end item R-F1##. 1. From the Stock/Requirements list. You should have a balance of 20 piece in inventory. 2004/Q3 © 2003 SAP AG. Example: Engineering found a cheaper.

If. 536 © 2003 SAP AG. a particular nut is to be discontinued. If a component is to be discontinued (main discontinued part) and its available stock is zero. another component (dependent discontinued part) also has to be discontinued. All rights reserved. 2004/Q3 .Unit 9: Life Cycle Planning SCM240 Figure 170: Material Group (Dependent Parallel) Discontinuation In this situation a group of materials is being replaced by another group of materials. for example. the corresponding bolt also has to be discontinued.

Add the new items to the BOM You also set the follow-up item indicator for the follow-up component or components. (Planner decision) Material master record: in the “Lead material”. they do not influence planning. This may be based on volume of inventory or the cost of inventory. You can define the name of this character string. The follow-up group combines all follow-up items of a BOM that belong together.SCM240 Lesson: Discontinuation in Production Planning Steps for using parallel discontinuation • • Choose the material that will become the main or lead material. Note: No redirection of material staging requirements for subcontracting Material staging requirements are not redirected to the follow-up material. Planned independent requirements and forecast requirements are therefore displayed in the MRP list and in the stock/requirements list. Note: No follow up materials will be considered with type 3. Requirements after the effective-out date that are not 2004/Q3 © 2003 SAP AG. However. the system also sets the exception message 58. you define a discontinuation group in the “Discontinuation data”. Caution: You cannot use a serial change of discontinuation groups. In the dependent material master. • • Note: Planned independent requirements and forecast requirements are not redirected. The system will only allow one “planned ” change. 0F. Explanation: Planned independent requirements after the effective-out date are not redirected but are provided with an exception message in the MRP list stating that they cannot be included in the availability check. All rights reserved. As of Release 3.0D. The character string of the follow-up group must be identical to that of the discontinuation group. The main and the dependent discontinued parts are identified using the same discontinuation group. • BOM: In the extras for the BOM item. This group determines which discontinued parts are to be replaced by the follow-up items. As of Release 3. you must set the discontinued part indicator “1” in the material master record and define the effective out date and follow up materials. sales orders and other definite requirements after the effective-out date are provided with the exception message 58. which then combines BOM items that belong together and are to be discontinued. set the discontinued part indicator “3” in the material master record of the dependent discontinued part. 537 .

2004/Q3 . If the total requirements ("2") is set for the follow-up material. If the stock level falls below the safety stock level. dependent requirements in single segment planning are displayed. In this instance. Note: Different single or collective indicators for parts to be discontinued and follow-up material If individual requirements (" or "1") is set for parts to be discontinued. Firm receipts after the effective-out date include the exception message. the BOM explosion always makes sure that all requirements end up on the discontinued materials.1G. the distribution key is ignored by parts to be discontinued (see Note 73467). entry of discontinued group for the discontinued components and follow-up groups for the follow-up components.0F. As of Release 3. Up to and including Release 3. this situation has led to errors. for example).Unit 9: Life Cycle Planning SCM240 covered are marked with exception message 58 "Uncovered requirements outside the effective-out date" in the MRP list. If you want the system to consume the safety stock. Note: Safety stock not consumed after the effective-out date The system assumes that even after the effective-out date. Note: The distribution key is ignored for parts to be discontinued. The requirements are not covered by new order proposals. With simple discontinuation a main feature is the interchangeability of both components. Reason: The distribution key cannot be taken into consideration by parts to be discontinued. Additional key words Note: Creation of a planned order: During the creation of a planned order. QM lots. production orders.) after the effective-out date are not taken into account for discontinued parts. Therefore. the system also creates an order proposal after the effective-out date. that is inclusion of follow-up components in the bill of material. This is regardless of whether you are working with simple or parallel discontinuation. it should keep the safety stock (for unplanned consumption by replacement parts requirements. All rights reserved. we recommend that you set the safety stock in the material master record to zero for the effective-out date. Note: Receipts (purchase orders. "Cancel process". the dependent requirements are switched to the follow-up material even if safety stock is still available. the problem can be solved by using parallel discontinuation. For simple 538 © 2003 SAP AG. the dependent requirements are displayed in individual sections as technically only one transfer of dependent requirements from the parts to be discontinued to the follow-up material can be carried out at any one time. As a result there are no significant differences. etc.

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Lesson: Discontinuation in Production Planning

discontinuation, only the discontinued material is displayed in the component list of the planned order with the full requirement quantity. At this point, the follow-up material is not yet an item under the components of the planned order. For parallel discontinuation, all discontinuation and follow-up materials are copied from the BOM as planned order components. The main and parallel parts to be discontinued have the full requirement quantity. The requirement quantities of the follow-up materials are 0. Note: See SAP note: 51374 Discontinued part in the planned order (explanatory note): For issues relating to : • • • Changing a planned order, with active discontinuation Planned order backflush in the repetitive manufacturing Response to master data changes

Demonstration:
Purpose
Demo Dependent Parallel discontinuation

System Data
System: Client: User ID: Password: Set up instructions: Focus on end item R-F1##. You will replace the component R-B3## with component R-B33##. 1. Display Stock/Requirements list for the R-B3## at plant 1000. You should have a balance of 50 pieces in inventory. Set the discontinuation indicator in the material master record for R-B3##. 2. 3. 4. 5. 6. 7. Change the BOM for R-F1## at plant 1000. Set the discontinuation group for R-B2## and R-B3## to 01 Add R-B22## and R-B33## to the BOM Set the follow-up group for R-B22## and R-B33## to 01. Execute a single-item, Multi-level planning run with planning mode 3, for the R-F1## at plant 1000. Check the Stock/Requirements list for the R-B2## and the R-B22## at plant 1000 did discontinuation occur?

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8.

Check the Stock/Requirements list for the R-B3## and the R-B33## at plant 1000 did discontinuation occur?

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461

Exercise 18: Discontinuation in production planning
Exercise Duration: 25 Minutes

Exercise Objectives
After completing this exercise, you will be able to: • Demonstrate simple discontinuation • Demonstrate parallel discontinuation

Business Example
Engineering has made a specification change to the R-B2## fly wheel that is used in the production of the R-F1## pump. Engineering wants the change to take place as soon as possible with the R-B22##. However, the fly wheel is an expensive part, so you would like to change the part over when the inventory of the R-B2## has been exhausted. Review you inventory for R-B2## at plant 1000 and initiate a parts change as soon as inventory has been exhausted. In addition to changing the fly wheel, engineering has decided that the shaft, R-B3##, will need to be changed out as well. Since the fly wheel, R-B2##, is the more expensive component, set the system up so that the shaft R-B3##, will be changed out simultaneously with the fly wheel R-B2##.

System Data
System: Client: User ID: Password: CATT: Set up instructions: 1. Requires CATT Z_SCM240 to be run

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Task 1: Simple Discontinuation
Engineering has made a specification change in the R-B2## fly wheel that is used in the production of the R-F1## pump. Engineering wants the change to take place as soon as possible with the R-B22##. However, the fly wheel is an expensive part, so you would like to change the part over when the inventory of the R-B2## has been exhausted. Review the inventory of R-B2## at plant 1000 and initiate a part change as soon as inventory has been exhausted. 1. Use the Stock/Requirments list to review the inventory situation for R-B2## at plant 1000. How much inventory do you currently have for the R-B2## at plant 1000?

2.

3. 4.

From the Stock/Requirments list, change the material R-B2## at plant 1000 so that it will be replaced by the R-B22## immediately. Save the material. Execute a single-item, Multi-level planning run with planning mode 3 Delete and recreate planning data, for the R-F1## at plant 1000.

Continued on next page

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5.

Review view the S/R list for R-B2## at plant 1000. On what date do the dependent requirements end?

6.

On what date do the dependent requirements begin for R-B22## as it relates to the R-F1## demand?

Task 2: Parallel Discontinuation
Engineering has just realized that by changing the fly wheel, R-B2##, you will need to change out the hollow shaft, R-B3##. R-B3## will be replaced by R-B33##. Since the fly wheel is the more expensive part, make it the primary for the discontinuation. However, it is important that they be changed out at exactly the same time or there will be problems in production. 1. 2. 3. Use the Stock/Requirments list to review the inventory situation for R-B3## at plant 1000. What is the current on hand inventory for R-B3##? From the Stock/Requirments list, change the material R-B3## at plant 1000 so that it will be replaced by the R-B33## when the inventory runs out on the R-B2##. Save the material. In another session, change the bill of material for the R-F1## at plant 1000. Adjust the BOM by adding the two new components, R-B22## and R-B33## (use same item info as other parts). Use the discontinuation functionality in the BOM, to phase out R-B2## and R-B3## by the new components you added to the BOM. Use discontinuation/follow groups 01. Save the BOM changes Execute a single-item, Multi-level planning run with planning mode 3 Delete and recreate planning data, for the R-F1## at plant 1000. Make sure to select also plan unchanged components indicator !

4.

5.

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SCM240

6.

Review view the S/R list for R-B2## at plant 1000. On which date do the dependent requirements end?

7.

On which date do the dependent requirements begin for R-B22## as it relates to the R-F1## demand?

8.

Review view the S/R list for R-B3## at plant 1000. On which date do the dependent requirements end?

9.

On which date do the dependent requirements begin for R-B33## as it relates to the R-F1## demand?

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Solution 18: Discontinuation in production planning
Task 1: Simple Discontinuation
Engineering has made a specification change in the R-B2## fly wheel that is used in the production of the R-F1## pump. Engineering wants the change to take place as soon as possible with the R-B22##. However, the fly wheel is an expensive part, so you would like to change the part over when the inventory of the R-B2## has been exhausted. Review the inventory of R-B2## at plant 1000 and initiate a part change as soon as inventory has been exhausted. 1. Use the Stock/Requirments list to review the inventory situation for R-B2## at plant 1000. a) 2. 3. Follow menu path: Logistics → Production → MRP → Evaluations → Stock/Requirments list (MD04)

How much inventory do you currently have for the R-B2## at plant 1000? Answer: 20 pieces From the Stock/Requirments list, change the material R-B2## at plant 1000 so that it will be replaced by the R-B22## immediately. Save the material. a) b) Menu Path: Environment → Change material, select the MRP 4 view Enter the following values: Field Discontinued Indicator Value 1 - Simple/Parallel discontinued part/material Leave Blank R-B22##

Eff. out Follow up Material c) 4. Select Save.

Execute a single-item, Multi-level planning run with planning mode 3 Delete and recreate planning data, for the R-F1## at plant 1000. a) b) c) Follow menu path: Logistics → Production → MRP → Evaluations → Stock/Requirments list (MD04) Once in the S/R list select, Single-item, Multi-level MRP Return to the S/R list and select Refresh (update) Continued on next page

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SCM240

5.

Review view the S/R list for R-B2## at plant 1000. On what date do the dependent requirements end? Answer: Varies, but it is the date that the available balance goes to zero. On what date do the dependent requirements begin for R-B22## as it relates to the R-F1## demand? Answer: Varies, but it is the day after the inventory balance hit zero for the R-B2##.

6.

Task 2: Parallel Discontinuation
Engineering has just realized that by changing the fly wheel, R-B2##, you will need to change out the hollow shaft, R-B3##. R-B3## will be replaced by R-B33##. Since the fly wheel is the more expensive part, make it the primary for the discontinuation. However, it is important that they be changed out at exactly the same time or there will be problems in production. 1. Use the Stock/Requirments list to review the inventory situation for R-B3## at plant 1000. a) 2. 3. Follow menu path: Logistics → Production → MRP → Evaluations → Stock/Requirments list (MD04) 50 pcs

What is the current on hand inventory for R-B3##? a) From the Stock/Requirments list, change the material R-B3## at plant 1000 so that it will be replaced by the R-B33## when the inventory runs out on the R-B2##. Save the material. a) b) Menu Path: Environment → Change material, select the MRP 4 view Enter the following values: Field Discontinued Indicator Value 3 - Dependent Parallel discontinued part/material Leave Blank Leave Blank

Eff. out Follow up Material c) 4. Select Save.

In another session, change the bill of material for the R-F1## at plant 1000. Adjust the BOM by adding the two new components, R-B22## and R-B33## (use same item info as other parts). Use the discontinuation functionality in Continued on next page

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the BOM, to phase out R-B2## and R-B3## by the new components you added to the BOM. Use discontinuation/follow groups 01. Save the BOM changes a) b) c) d) e) f) g) h) i) j) Follow Menu Path: Logistics → Production → Master Data → Bills of Material → Bill of Material → Material BOM → Change (CS02) Enter R-F1## at plant 1000, BOM usage 1. Select the rows for R-B2## and R-B3## and select Enter in the Discontin. group 01, and select back Select Next item Item

In the Basic Data view, select the Discontin. data button

In the Basic Data view, select the Discontin. data button Enter in the Discontin. group 01, and select back Select Back to return to the item overview screen

From the item overview screen, add the following Item No. 0060 0070 Item Cat. L - Stock L- Stock Component R-B22## R-B33## Qty 1 1 Uom pc pc Item

k) l) m) n) o) p) q)

Now select the rows for R-B22## and R-B33## and select In the Basic Data view, select the Discontin. data button Enter in the Follow-up group 01, and select back Select Next item

In the Basic Data view, select the Discontin. data button Enter in the Follow-up group 01, and select back Select Save.

Continued on next page

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SCM240

5.

Execute a single-item, Multi-level planning run with planning mode 3 Delete and recreate planning data, for the R-F1## at plant 1000. Make sure to select also plan unchanged components indicator ! a) b) c) Follow menu path: Logistics → Production → MRP → Evaluations → Stock/Requirments list (MD04) Once in the S/R list select, Single-item, Multi-level MRP Return to the S/R list and select Refresh (update)

6.

Review view the S/R list for R-B2## at plant 1000. On which date do the dependent requirements end? Answer: Varies, but it is the date that the available balance goes to zero. On which date do the dependent requirements begin for R-B22## as it relates to the R-F1## demand? Answer: Varies, but it is the day after the inventory balance hit zero for the R-B2##.

7.

8.

Review view the S/R list for R-B3## at plant 1000. On which date do the dependent requirements end? Answer: Varies, but it is the date that R-B2##, even though there is inventory left

9.

On which date do the dependent requirements begin for R-B33## as it relates to the R-F1## demand? Answer: Varies, but it is the day after the inventory balance hit zero for the R-B2## and the R-B3##.

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Lesson: Discontinuation in Production Planning

Lesson Summary
You should now be able to: • Demonstrate how to phase in a product using Simple Discontinuation • Demonstrate how to phase in a product using Parallel Discontinuation • Explain how Engineering Change Management works With Discontinuation.

Related Information
Related OSS notes: • • • • • • • 510291 MD02 in the simulation mode: Discontinued part 132623 Discontinuation after consumption:missng rqmts divrsion 121360 MRP: Discontinued parts vs. alternative item 77408 Discontinued parts and safety stock 73467 Discontinued parts with distribution key 71482 Discontinued parts and make-to-order production 68341 Discontinued parts and SLoc planned separately

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Unit Summary

SCM240

Unit Summary
You should now be able to: • Demonstrate how to phase in a product using Simple Discontinuation • Demonstrate how to phase in a product using Parallel Discontinuation • Explain how Engineering Change Management works With Discontinuation.

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Test Your Knowledge

471

Test Your Knowledge
1. Discontinuation replaces materials when the demands are from sales orders.
Determine whether this statement is true or false.

□ □ 2.

True False

In dependent/parallel discontinuation all materials are replaced when their inventory levels reah zero.
Determine whether this statement is true or false.

□ □ 3.

True False

What are two types of discontinuation?
Choose the correct answer(s).

□ □ □ □ □ 4.

A B C D E

Aggregate Parallel Partial Simple Disaggregate

Would you use discontinuation functionality if you were discontinuing the use of a material but not replacing it with another material?

5.

What must be set in the material master of a material to be discontinued through simple discontinuation ?

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everything in the group must be replaced at the same time. Discontinuation replaces materials when the demands are from sales orders. 2. What are two types of discontinuation? Answer: B. 3. 5. All rights reserved. 552 © 2003 SAP AG. define an effective out date. Although some may still have inventory. What must be set in the material master of a material to be discontinued through simple discontinuation ? Answer: The discontinued parts indicator must be set to “1” You must enter a follow-up material. In dependent/parallel discontinuation all materials are replaced when their inventory levels reah zero. all materials will be replaced. 2004/Q3 . Exception messages may be generated. Discontinuation would not be appropriate. Answer: False Demand from sales orders will not automatically be repositioned. Answer: False When the inventory of the "lead" material reaches zero. D Simple and parallel discontinuation are available 4.Test Your Knowledge SCM240 472 Answers 1. Would you use discontinuation functionality if you were discontinuing the use of a material but not replacing it with another material? Answer: No.

......................561 Lesson: Modeling Quality Inspection in Production planning . you will be introduced on how inventory can affect the planning run............... All rights reserved.... 553 ... Unit Contents Lesson: Stock Types in Production Planning ................. Demonstrate modeling Quality inspection stock and its affect on MRP Demonstrate modeling the use of QM lots and its affect on production......................569 Exercise 19: QM lots in Production Planning .........Unit 10 473 Effects of Inventory in the Planning Run Unit Overview In this unit........ Unit Objectives After completing this unit..557 Demonstration: In-Transit Stock in the Planning Run ................559 Demonstration: Blocked Stock in the Planning Run ............554 Demonstration: Quality Inspection Stock...............565 Demonstration: Usage Decision ........................... Based on how your organization handles a quality inspection process in SAP ERP may dramatically affect the outcome of the planning run..... you will be able to: • • • • • Explain the concept of stock types in SAP ERP Explain how in transit stock types are used in production planning Explain how configuration of stock types can influence the planning run....571 2004/Q3 © 2003 SAP AG.......

Lesson Objectives After completing this lesson. 554 © 2003 SAP AG. After material request was generated via the planning run. 2004/Q3 . All rights reserved. or how the receipt of a finished good in production will affect the delivery process for a sales order or stock transfer. The checked quantity is later released with a transfer posting to the unrestricted-use stock. scrapped or available for use. the replenishment is posted in to inventory by performing a goods receipt. Stages such as quality inspection. you will be able to: • • • Explain the concept of stock types in SAP ERP Explain how in transit stock types are used in production planning Explain how configuration of stock types can influence the planning run. Examine you can use the SAP ERP system to visualize the different scenarios respective to production planning. Overview of Stock types in SAP ERP Once material has been received into inventory. planners still need to consider its impact on planning for any down stream process. ] Business Example During the manufacturing or procurement of materials. restricted . Some of the delivered goods are posted to the quality inspection stock. hold. when received into inventory a product may go through various stages. One has to consider how the receipt of a raw material or sub assembly will impact production. [Enter a description of what the instructor should discuss with the participants about the context of the lesson.Unit 10: Effects of Inventory in the Planning Run SCM240 Lesson: 474 Stock Types in Production Planning Lesson Duration: 30 Minutes Lesson Overview This lesson covers the goods receipt of ordered goods into the warehouse and the effects that this goods receipt has on Inventory Management and Production Panning .

This will tell a company that a particular block of inventory can be used anywhere.SCM240 Lesson: Stock Types in Production Planning Figure 171: Goods Receipt Sources Goods receipts can happen through man different means. companies can take advantage of stock types in SAP ERP. one must always consider how it will affect the next business event. Often times stocks can consist of different “statuses”. material is on hold for further disposition. quality is suspect. 2004/Q3 © 2003 SAP AG. 555 . Instead of using different material numbers or creating different stock locations. All rights reserved. No matter what the method of receipt.

556 © 2003 SAP AG. You always use movement type 101 to post goods receipts for a purchase order to valuated stock.Unit 10: Effects of Inventory in the Planning Run SCM240 Figure 172: Valuated Goods Receipts For goods receipts. you decide which stock type a quantity is posted to. at item level for the goods receipt. or post an inventory difference. enabling you to differentiate between different stock types. you decide the stock type to which the material is posted. scrap a quantity. When the goods are received. You can post withdrawals for consumption only from unrestricted-use stock. The stock type is relevant for determining the stock available in Materials Planning and is used for withdrawals in Inventory Management. you can withdraw only one sample. All rights reserved. 2004/Q3 . you can plan whether the material is to be posted to the quality inspection stock. You can enter a stock indicator. You can post a goods receipt for the warehouse into three stock types: • • • Unrestricted-use stock (no usage restrictions) Quality inspection stock (available from an MRP perspective. but no withdrawals are possible for consumption) Blocked stock (not usually available from an MRP perspective and no withdrawals are possible for consumption) Caution: Do not confuse the valuated stock type blocked stockwith the non-valuated goods receipt blocked stock (otherwise known as GR blocked stock). such as the movement type. From quality inspection stock and blocked stock. In the purchase order and material master.

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Lesson: Stock Types in Production Planning

Figure 173: Transfer Postings

If you want to withdraw goods from blocked stock or quality inspection stock for consumption, you first have to carry out a transfer posting to unrestricted-use stock. You use the movement type to control the stock types involved in the transfer. When you carry out a transfer posting, the stock type, batch number, or material number is changed. A transfer posting can also involve an actual physical stock transfer. As for all goods movements, the system also creates a material document during transfer postings to show the transaction in the system. The system generates accounting documents only if a change in valuation is involved (for example, stock transfer from plant to plant).

Demonstration: Quality Inspection Stock
Purpose

System Data
System: Client: User ID: Password: Set up instructions: 1. Goto the material R-F1## in plant 1000.

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SCM240

2. 3.

Identify this is a Finished good that requires mfg. Go to the Work Scheduling view and point out the Inspection Stock indicator. Select the Inspection stock indicator and save.

Cross-Plant Stock in Planning
Transfer In the case of a plant-to-plant stock transfer, the plants between which material is transferred can belong either to the same company code or to different ones. As a general rule, cross-plant stock transfers can only be booked out of unrestricted-use stock.

Figure 174: Stock Transfer Plant to Plant

In the case of the one-step procedure, the goods issue and goods receipt are posted in a single material document. You must therefore enter all relevant data, such as the material, issuing plant, issuing storage location, receiving plant, and receiving storage location in this one step. The movement type (in the standard system) is 301. In the case of the two-step procedure, when removing the material from storage (movement type 303), you must specify the receiving plant in addition to the material and the issuing organizational levels. This is necessary because valuation of the stock transfer takes place when the material is removed from storage and posted to stock in transfer at the receiving plant. You can either enter the put away (placement in storage, movement type 305) with reference to the material document of the stock removal or enter all data manually. As a result of the put away, the quantity is booked out of stock in transfer and into unrestricted-use

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stock at the receiving plant. Valuation of the put away is not necessary, since the stock in transfer and the unrestricted-use stock at the receiving storage location belong to the same plant. In the case of Stock Transport Order Without Delivery, his type of stock transfer involves not only Inventory Management but also purchasing at the receiving plant. The process begins in the receiving plant with the entry of a stock transport order in the purchasing department. A goods issue referencing this stock transport order is then entered in the issuing plant. The quantity booked out is initially managed as stock in transit at the receiving plant. The process is ended by the posting of the goods receipt against the stock transport order at the receiving plant. The stock in transit is shown in the material master record in the plant stock view for the receiving plant. A special report for the analysis of transit stocks is available in the Inventory Management menu under Environment → Stock → Stock in Transit (MB5T). With this report, you can select transit stocks for the receiving or issuing plant, for example. Stock in transit is also displayed in the Stock Overview (MMBE) and the Warehouse Stocks of Material report. In the Warehouse Stocks of Material report, stocks in transit and stocks in transfer are summarized at plant level in a stock line without a storage location.

Demonstration: In-Transit Stock in the Planning Run
Purpose
Demonstrate how in transit stock is used in the calculation of MRP.

System Data
System: Client: User ID: Password: Set up instructions: 1. Using Tcode MB1C, receive into inventory 30 pcs of the R-F1## in plant 1000 storage location 0001. Use Movement type 501 - receive into unrestricted stock 2. 3. Access the S/R list for R-F1## plant 1000. Review the on-hand inventory and review the details of it by double clicking on the Stock MRP element. Access the S/R list for R-F1## plant 2400. Review the on-hand inventory and review the details of it by double clicking on the Stock MRP element.

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4.

Using Tcode MB1B, Transfer 20 pcs of inventory of the R-F1## in plant 1000 to the receiving plant 2400. Use Movement type 303 - Transfer Posting Plant to Plant remove from storage Access the S/R list for R-F1## plant 2400. Review the on-hand inventory notice the increase and review the details of it by double clicking on the Stock MRP element. Point out that it is currently being used to calculate your on-hand inventory. Production → Material Requirements Planning → Planning → MRP Calculation → Stocks → Define Availability Stock in Transfer/Blocked Stock/Unrestricted Stock Remove the Stock in Transfer indicator for plant 2400, and save. Exit and re-enter the S/R list for R-F1## at plant 2400. and notice the change to the On-hand balance.

5.

6. 7.

8. 9.

10. Review the on-hand inventory and review the details of it by double clicking on the Stock MRP element. Note the 20 pcs are still in transfer. 11. Using your icon access the stock overview report. 12. Using Tcode MB1B, Transfer 20 pcs of inventory of the R-F1## in plant 2400. Use Movement type 305 - Transfer Posting Plant to Plant receive into storage 13. Refresh S/R list for R-F1## at plant 2400. and notice the change to the On-hand balance is now 20 pcs due to the receipt. 14. Review the on-hand inventory and review the details of it by double clicking on the Stock MRP element. Note the 20 pcs are still in inventory

Stock Types in MRP
During the net requirements calculation process, on-hand stock is one of the input values. This is determining the starting point of the net requirements calculation

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Figure 175: MRP Relevant Stock

The stock available for planning combines the following stock from all the storage locations that belong to this plant or MRP area and are not excluded from MRP or planned separately: Stock that is usable without restrictions, quality inspection stock, consignment store stock that is usable without restriction, and consignment store stock in quality inspection. These will be included in the planning run calculation. In the Customizing a company can decide wether certain stock types are relevant for planning. In the IMG,Production → MRP → Planning → MRP Calculation → Stocks → Define Availability Stock in Transfer/Blocked Stock/Unrestricted Stock, you can define for each plant whether or not the stock in transfer from plant-to-plant stock transfers is included in the plant stock, whether the blocked stock or restricted stock for batches is included in plant stock. If the quantity available for planning is less than zero, a material shortage exists. MRP reacts to material shortages by creating new procurement proposals, that is, by creating purchase requisitions or planned orders, independent of the procurement type. The suggested procurement quantity results from the lot-sizing procedure that is set in the material master.

Demonstration: Blocked Stock in the Planning Run
Purpose
Demonstrate how blocked stock is used in the calculation of MRP.

System Data
System: Client:

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User ID: Password: Set up instructions: 1. Using Tcode MB1C, receive into inventory 2 pcs of the R-F1##. Use Movement type 505 - receive into blocked stock 2. 3. 4. Access the S/R list for R-F1## plant 1000. Review the on-hand inventory and review the details of it by double clicking on the Stock MRP element. Point out that it is currently being used to calculate your on-hand inventory. Production → Material Requirements Planning → Planning → MRP Calculation → Stocks → Define Availability Stock in Transfer/Blocked Stock/Unrestricted Stock Remove the Block Stock indicator for plant 1000, and save. Exit and re-enter the S/R list for R-F1## at plant 1000. Notice the change to the On-hand balance. Review the on-hand inventory and review the details of it by double clicking on the Stock MRP element. Note the 2 pcs are still in blocked stock inventory. Using your icon access the stock overview report.

5. 6. 7. 8.

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Lesson: Stock Types in Production Planning

Facilitated Discussion

Discussion Questions
Use the following questions to engage the participants in the discussion. Feel free to use your own additional questions.

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Lesson Summary
You should now be able to: • Explain the concept of stock types in SAP ERP • Explain how in transit stock types are used in production planning • Explain how configuration of stock types can influence the planning run.

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SCM240

Lesson: Modeling Quality Inspection in Production planning

Lesson:
482

Modeling Quality Inspection in Production planning
Lesson Duration: 30 Minutes

Lesson Overview
Your company wants to use a process for quality assurance in both production and procurement. How your company models the quality assurance can directly affect the accuracy of production planning and execution. In this lesson you will learn several “general” concepts on modeling the quality assurance process.

Lesson Objectives
After completing this lesson, you will be able to: • • Demonstrate modeling Quality inspection stock and its affect on MRP Demonstrate modeling the use of QM lots and its affect on production.

This is lesson is not to discuss QM in detail, but how QM can help companies model the exact process of Quality assurance as it relates to planning and executing replenishment. If customers wish to know more details direct them to the following classes: • • • • PLM 400 - Quality Mgmt (5 days) PLM415 - QM in Procurement (3 days) PLM420 - QM in Discrete Mfg (2 days) PLM421 - QM in the Process Industry (3 days)

Business Example
During the receipt of manufactured or procured materials into inventory, a product may go through various stages. Stages such as quality inspection, hold, restricted , scrapped or available for use. Examine you can use the SAP ERP system to visually this process and show it’s affect on the inventory and planning situation.

Overview of QM in Logistics
QM processes can be triggered by different events. Standard processes (for example, inspections during production, goods receipt inspections) are planned in advance and are triggered regularly. Event-controlled processes occur spontaneously ( such as defects in production, damaged goods at goods receipt ) ; the problems that occur can be recorded and processed in a quality notification. In addition, you can monitor critical values using the information system and if necessary, trigger tasks via the Workflow. The data collected in planned and event-controlled processes (such as, the number of complaints) is evaluated in the information system.

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Figure 176: Planned Processes

An inspection can be triggered at different stages in the logistics supply chain. This leads to the creation of an inspection lot. Triggers can include: • • • • Goods movements (goods receipt, stock transfer, goods issue) Orders (production orders, maintenance orders, delivery) Deadline monitoring (batch monitoring) Source inspections

The inspection lot forms the basis for inspection processing. It contains all the data for the inspection (such as material, order, inspection specifications, inspection lot size, quantity to be inspected or if required QM order). You record inspection results for this inspection lot. The usage decision specifies whether the goods are accepted or rejected, based on the results of the inspection. Caution: When receiving production into quality inspection stock without a QM lot, planners have no idea when the inventory will actually be available. For net requirements calculation purposes quality inspection stock is available immediately for planning. The only way to over come this short fall is to use the Available to Promise (ATP) functionality. Within ATP companies can decided if they would like to consider quality inspection stock for use in a particular business event.

Quality Management in Procurement
QM is integrated in different stages of the procurement chain (when procuring required materials).

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Lesson: Modeling Quality Inspection in Production planning

You define automatic decision-making criteria to ensure that your company receives high-quality goods (for example, vendor evaluation, goods receipt inspection). If, for example, vendors’ goods are blocked as a result of poor quality, the system does not propose these vendors and marks them as blocked. In addition, the inspection scope can be controlled using dynamic modification, based on the quality of the delivered goods. The quality information record procurement contains data relating to the vendor release, certificate control, certification and quality assurance agreements. You can use a vendor/manufacturer release to ensure that a vendor only delivers goods from a specific manufacturer. You define a certificate requirement for a material, by using an indicator in the material master. QM at goods receipt controls, for example, whether: • • • The goods are posted to inspection stock Inspection lots are created at goods receipt The delivery or invoice is to be blocked as a result of a complaint (such as a missing certificate)

Figure 177: Processing Inspections at Goods Receipt

When goods are received, an inspection lot ( inspection type 01 or 05 ) is created for the goods based on the available information (such as quality info record procurement, inspection specifications, current quality level, and so on).

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If QM in procurement is active for a material, the system checks whether the QM system entered for the vendor in the vendor master record or quality information record procurement is certified and whether this system complies with the QM system requirements that are defined in the material master. If this is the case, no inspection lot is created and the goods are posted directly to the warehouse (skip for certified vendor). The goods are posted to inspection stock and are released for use or blocked, depending on the inspection results and the usage decision. The transfer posting of the stock occurs automatically when the usage decision is saved.

Quality Management in Manufacturing
In production, the QM component provides you with important information about the current quality of the manufactured goods (statistical process control) and if necessary, you can intervene with quality notifications (Workflow link) to implement corrective actions. QM inspection planning is integrated in the production planning functions. Inspection operations are included in the routing (production planning in discrete manufacturing) or in the master recipe (production planning in the process industry). Inspections during production are controlled using the inspection operations that are contained in the routing or the master recipe. When an order is completed, corresponding goods movements are triggered.

Figure 178: QM at Goods Receipt of Production

Goods receipt from production into the warehouse. When the goods are received at the warehouse, they become stock-relevant and are posted to inspection stock. Once the quality inspection has been completed and the goods have been accepted with the usage decision, they can be posted to unrestricted-use stock. Delivery

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Lesson: Modeling Quality Inspection in Production planning

When a production or process order is released, an early goods receipt inspection lot (inspection lot origin 04) can be generated. This inspection lot is created independently of whether an inspection lot with origin 03 exists for the relevant order. The immediate inspection lot at goods receipt represents a new combination for inspection lots: One inspection lot is created for each combination of order, batch and storage location. Once the goods have been received, the inspection lot becomes stock-relevant and can be used to manage stock. When defining the inspection type in the material master, planners can include an Average Inspection Duration. This will be used to plan the actual delivery into “un-restricted ” stock which can then be used in down stream process. Note: This situation is very important to sub-assemblies and finished goods. When ATP is preformed your company can choose to include quality inspection stock during the ATP check. Inspection stock can be allowed during the ATP check, however is not available during the actual goods issue. Often times companies will include the quality inspection time into the Goods Receipt (GR) processing time in the material master or include it in the floats before and after production (scheduling margin key). Again these values of are no value to down stream processes, since once the receipt has been completed, it is available for planning or use if not using quality inspection stock.

Demonstration: Usage Decision
Purpose
Demonstrate how usage decisions can affect QM lots

System Data
System: Client: User ID: Password: Set up instructions: 1. Perform either the procurement exercise or the production exercise 2. Make the usage decision for your inspection lot. Use the selected sets available in the system for usage decisions, and choose UD code A2. For the amount that is being inspected, transfer the inventory to various stock types/accounts:

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4. if necessary Logistics → Quality Management → Quality Inspection → Inspection Lot → Processing → Display (QA03) 6. Make the usage decision with UD code A2. 5. 570 © 2003 SAP AG. Save the results. Review the S/R list and note the inspection lot is gone. the screen Record Usage Decision: Defect Overview appears. 7.Unit 10: Effects of Inventory in the Planning Run SCM240 3. 8. Review the stock statistics if you put any inventory in Blocked stock. Select the Inspection lot tab and enter the total amount but divide it amoungst the different categories. Stock in Background.Goods receipt . Drill down under 01 . and select A2 Accept. Select this UD code using the field-related input help. Note the quantities on the board. All rights reserved. 2004/Q3 . Logistics → Quality Management → Quality Inspection → Inspection Lot → Usage Decision → Record (QA11) Enter the inspection lot number on the initial screen Since this is an inspection lot without planned inspection characteristics.

571 . Check Chars Date Value Deselect Deselect Deselect Deselect Date Value Deselect Deselect Deselect Deselect 2004/Q3 © 2003 SAP AG. However. Data Insp w/ mat spec Insp. System Data System: Client: User ID: Password: CATT: Set up instructions: 1.SCM240 Lesson: Modeling Quality Inspection in Production planning 487 Exercise 19: QM lots in Production Planning Exercise Duration: Minutes Exercise Objectives After completing this exercise. w/ task list Automatic Assgn. Check Chars Data Insp w/ mat spec Insp. as a planner you need to see the impact of various methods of modeling quality assurance to ensure that planning will not be impacted negatively pending the outcome of certain methods. All rights reserved. w/ task list Automatic Assgn. you will be able to: • Demonstrate how quality inspection stock is used in the planning run • Demonstrate how QM lots in procurement can impact the planning run • Demonstrate how QM lots in production can impact the planning run Business Example Your company has decided to model in the SAP ERP quality assurance process that your manufactured and procured items go through.

1. you want to explore limited functionality in SAP ERP. Use the Stock/Requirements list to review the inventory situation for R-F1## at plant 1000. From the Stock/Requirements list. you want to separate the inventory that will be processed. Refresh the S/R list and note the production order number. you want to explore limited functionality in SAP ERP. 4. Investigate what affect this will have on the planning run. 1. In doing so. 6. What is the current inventory situation? 3. Set up your procured material R-T2## so that any replenishment receipt will be processed as a QM lot. From the Stock/Requirements list for R-F1## at plant 1000. 2004/Q3 . Perform a final confirmation. for days at a time. Save the material. change the material R-F1## at plant 1000 so that all receipts will go into quality inspection stock. Use the Stock/Requirements list to review the inventory situation for R-T2## at plant 1000. Set up your material R-F1## so that any replenishment receipt will be processed as quality inspection stock. by the lab. 5. convert the first planned order to a production order and release. you want to separate the inventory that will be processed for no longer than three days at a time by the lab. . 2. In doing so. All rights reserved. Continued on next page 572 © 2003 SAP AG. at the order level for the production of R-F1##.Unit 10: Effects of Inventory in the Planning Run SCM240 Task 1: Quality Inspection Stock in Planning Since your quality management process is currently handled in a separate Laboratory Information System. Investigate what affect this will have on the planning run. What stock type is represented by on-hand inventory ? Task 2: QM Lots in Procurement (Time Permitting ) Since your quality management process is currently handled in a separate Laboratory Information System.

Inspection for other Goods receipts. create an inspection type 05 .SCM240 Lesson: Modeling Quality Inspection in Production planning 2. Continued on next page 2004/Q3 © 2003 SAP AG. 573 . Make sure you set an average inspection duration of 3 days. 4. From the Stock/Requirements list. change the material master for R-T2## at plant 1000. What is the current inventory situation ? 3. All rights reserved. storage location 0001. Use movement type 501. In another session. enter an Other Goods receipt for 500 pcs of R-T2## at plant 1000. In the Quality Management view.

Unit 10: Effects of Inventory in the Planning Run SCM240 5. Continued on next page 574 © 2003 SAP AG. you want to explore limited functionality in SAP ERP. Do you see an increase in inventory? 6. does it show the 500 pcs in quality inspection stock? 7. Return to the Stock/Requirements list (refresh will not work). All rights reserved. Check the stock statistics. 2004/Q3 . Investigate what affect this will have on the planning run. Why doesn’t the inventory show up? Task 3: QM Lots in Production ( Time Permitting ) Since your quality management process is currently handled in a separate Laboratory Information System. Use the Stock/Requirements list to review the inventory situation for R-F2## at plant 1000. 1. In doing so. you want to separate the inventory that will be processed for no longer than 5 days at a time by the lab. for R-T2## at plant 1000. Set up your manufactured material R-F2## so that any replenishment receipt will be processed as a QM lot.

What is your current inventory situation ? 3. Why doesn’t inventory show up? 2004/Q3 © 2003 SAP AG. Make sure you set an average inspection duration of 5 days. Perform a final confirmation at the order level for the Confirm production of the R-F2## you just created. Check the stock statistics. for R-F2## at plant 1000. Do you see an increase in inventory? 4. From the Stock/Requirements lists for R-F2## at plant 1000. does it show any pieces in quality inspection stock? 8. All rights reserved.SCM240 Lesson: Modeling Quality Inspection in Production planning 2. 575 . 5. 7. From the Stock/Requirements list. create an inspection type 04 Final Inspection at GR from Production. Return to the Stock/Requirements list (refresh will not work). 6. change the material master for R-T2## at plant 1000. convert the first planned order to a production order and release. In the Quality Management view. Refresh the S/R list and note the production order number.

From the Stock/Requirements list. Enter the production order number and select . for days at a time. Use the Stock/Requirements list to review the inventory situation for R-F1## at plant 1000. a) b) Double click on the first planned order. From the Stock/Requirements list for R-F1## at plant 1000. Set up your material R-F1## so that any replenishment receipt will be processed as quality inspection stock. Select the final confirmation radio button and select 4. select the Work Scheduling view In the Work Scheduling view select the Insp. Production Order: _______________________ 3. stock indicator Select Save. a) b) c) Logistics → Production → Production Control → Confirmation → Enter → For Order (CO15). Save and note the production order number as it appears in Select the message bar at the bottom of the screen. Select Select c) to convert to a production order. All rights reserved. you want to separate the inventory that will be processed. change the material R-F1## at plant 1000 so that all receipts will go into quality inspection stock. 2004/Q3 . Investigate what affect this will have on the planning run. at the order level for the production of R-F1##. In doing so.Unit 10: Effects of Inventory in the Planning Run SCM240 Solution 19: QM lots in Production Planning Task 1: Quality Inspection Stock in Planning Since your quality management process is currently handled in a separate Laboratory Information System. Save. a) b) c) 2. Menu Path: Environment → Change material. you want to explore limited functionality in SAP ERP. Release Order. Refresh the S/R list and note the production order number. Save the material. Continued on next page 576 © 2003 SAP AG. by the lab. convert the first planned order to a production order and release. 1. Perform a final confirmation.

In doing so. double click on the Stock MRP element. 1. 6. All rights reserved.SCM240 Lesson: Modeling Quality Inspection in Production planning . a) 2. Investigate what affect this will have on the planning run. 577 . Set up your procured material R-T2## so that any replenishment receipt will be processed as a QM lot. Follow menu path: Logistics → Production → MRP → Evaluations → Stock/Requirements list (MD04) What is the current inventory situation ? Answer: On-hand Inventory is 1000 pcs. Use the Stock/Requirements list to review the inventory situation for R-T2## at plant 1000. QI stock is MRP relevant. Answer: By setting the Inspection Stock indicator all receipts are placed into quality inspection stock. a) 5. Task 2: QM Lots in Procurement (Time Permitting ) Since your quality management process is currently handled in a separate Laboratory Information System. Follow menu path: Logistics → Production → MRP → Evaluations → Stock/Requirements list (MD04) What is the current inventory situation? Answer: Inventory has been increased by the amount of production received. you want to explore limited functionality in SAP ERP. Continued on next page 2004/Q3 © 2003 SAP AG. What stock type is represented by on-hand inventory ? a) b) From the Stock/Requirements list. you want to separate the inventory that will be processed for no longer than three days at a time by the lab.

Enter through any warning messages. setup button. Continued on next page 578 © 2003 SAP AG. a) b) c) d) Follow menu path: Logistics → Materials Management → Inventory Management → Goods Movement → Goods Receipt → Other (MB1C) Enter Movement type 501. All rights reserved. Check the stock statistics. change the material master for R-T2## at plant 1000. Select Create inspection types Select inspection type 05 . Select Select Continue. Do you see an increase in inventory? Answer: No. 5. Use movement type 501. and deselect the Parameters listed above. 6. Make sure you set an average inspection duration of 3 days.Unit 10: Effects of Inventory in the Planning Run SCM240 3. From the Stock/Requirements list. a) b) c) d) e) f) g) h) Menu Path: Environment → Change material. In the Quality Management view.Inspection for other Goods Receipt Select the Active indicator and then select Details Enter and Average Inspection Duration of 3 days. select the Insp. and press ENTER Enter your material R-T2## and a quantity of 500 pcs Press Enter and select Save Enter through any messages about missing parts. Yes 500 pcs are in QI stock.Inspection for other Goods receipts. and storage location 0001. storage location 0001. plant 1000. Return to the Stock/Requirements list (refresh will not work). Save. create an inspection type 05 . In another session. the on hand balance has not increased. does it show the 500 pcs in quality inspection stock? Answer: Double click on the stock statistics. select the Quality management view In the Quality managment view. for R-T2## at plant 1000. 4. 2004/Q3 . enter an Other Goods receipt for 500 pcs of R-T2## at plant 1000.

The Average inspection duration allows planners to account for when the material will be available for use.Final Inspection at GR from Production Select the Active indicator and then select Details Enter and Average Inspection Duration of 5 days and deselect the Parameters listed above. From the Stock/Requirements list. Continued on next page 2004/Q3 © 2003 SAP AG. 3. Set up your manufactured material R-F2## so that any replenishment receipt will be processed as a QM lot. a) b) c) d) e) f) g) h) Menu Path: Environment → Change material. change the material master for R-T2## at plant 1000. you want to separate the inventory that will be processed for no longer than 5 days at a time by the lab. In doing so. All rights reserved. Use the Stock/Requirements list to review the inventory situation for R-F2## at plant 1000. In the Quality management view select the Insp. setup button. Select Select Continue Save. Select Create inspection types Select inspection type 04 . Make sure you set an average inspection duration of 5 days. In the Quality Management view. Why doesn’t the inventory show up? Answer: If you look at the details of the Stock/Requirements list you will see a new MRP element 3 days from the current date. you want to explore limited functionality in SAP ERP.SCM240 Lesson: Modeling Quality Inspection in Production planning 7. create an inspection type 04 Final Inspection at GR from Production. a) 2. select the Quanlity managment view. 1. Task 3: QM Lots in Production ( Time Permitting ) Since your quality management process is currently handled in a separate Laboratory Information System. This is due to the inspection type 05 creating a QM inspection lot. Investigate what affect this will have on the planning run. 579 . Follow menu path: Logistics → Production → MRP → Evaluations → Stock/Requirements list (MD04) What is your current inventory situation ? Answer: On-hand Inventory is 0 pcs.

This is due to the inspection type 04 creating a QM inspection lot. convert the first planned order to a production order and release. does it show any pieces in quality inspection stock? Answer: Double click on the stock statistics. Save Select the final confirmation radio button and select 6. Do you see an increase in inventory? Answer: No. for R-F2## at plant 1000. Why doesn’t inventory show up? Answer: If you look at the details of the Stock/Requirements list you will see a new MRP element 5 days from the current date. 8. 580 © 2003 SAP AG. From the Stock/Requirements lists for R-F2## at plant 1000. All rights reserved. 2004/Q3 . a) b) c) Logistics → Production → Production Control → Confirmation → Enter → For Order (CO15). Production Order: _______________________ 5. Save and note the production order number as it appears in Select the message bar at the bottom of the screen. these is inventory in QI stock that is equivalent to the quantity that you confirmed. Refresh the S/R list and note the production order number. Yes. Check the stock statistics. Release Order. 7. Select Select c) to convert to a production order. Return to the Stock/Requirements list (refresh will not work).Unit 10: Effects of Inventory in the Planning Run SCM240 4. Enter the production order number and select . the on hand balance has not increased. a) b) Double click on the first planned order. The Average inspection duration allows planners to account for when the material will be available for use. Perform a final confirmation at the order level for the Confirm production of the R-F2## you just created.

2004/Q3 © 2003 SAP AG.SCM240 Lesson: Modeling Quality Inspection in Production planning Lesson Summary You should now be able to: • Demonstrate modeling Quality inspection stock and its affect on MRP • Demonstrate modeling the use of QM lots and its affect on production. All rights reserved. 581 .

582 © 2003 SAP AG. All rights reserved. • Demonstrate modeling Quality inspection stock and its affect on MRP • Demonstrate modeling the use of QM lots and its affect on production. 2004/Q3 .Unit Summary SCM240 Unit Summary You should now be able to: • Explain the concept of stock types in SAP ERP • Explain how in transit stock types are used in production planning • Explain how configuration of stock types can influence the planning run.

3.SCM240 Test Your Knowledge 499 Test Your Knowledge 1. Determine whether this statement is true or false. All rights reserved. □ □ 2. 583 . the results are recorded for a specific Fill in the blanks to complete the sentence. True False When a quality check is performed. □ □ True False 2004/Q3 © 2003 SAP AG. When a goods receipt is done for a product requiring inspection it is put into what inventory status? 4. Determine whether this statement is true or false. Unrestricted use stoock is the only stock considered in the planning run. Inventory in the quality inspection stock is available for planning.

584 © 2003 SAP AG. Inventory in the quality inspection stock is available for planning.Test Your Knowledge SCM240 500 Answers 1. Unrestricted use stoock is the only stock considered in the planning run. restricted use stock 2. All rights reserved. However any of the three statuses below may also be configured for consideration in the planning run. Blocked Stock. When a quality check is performed. 3. Stock in Transfer. Answer: False Unrestricted is always considered. When a goods receipt is done for a product requiring inspection it is put into what inventory status? Answer: Quality Inspection Stock 4. the results are recorded for a specific Inspection Lot. 2004/Q3 . Answer: True Quality inspection stock is included in the net requirements calculation. Answer: Inspection Lot.

......... All rights reserved........................................................ you will be able to: • • • • • • • Explain the purpose of Available to Promise (ATP) in planned orders.........601 Lesson: Configuration of ATP ...........................................................Unit 11 501 Component Availability Unit Overview The unit will introduce you to the concept of Available-to-Promise (ATP) in SAP ERP.............599 Exercise 20: Availability Checking in the Planned order .........590 Demonstration: Planned order ATP ..........................587 Demonstration: Interactive ATP .... Unit Objectives After completing this unit.................................608 2004/Q3 © 2003 SAP AG. Unit Contents Lesson: ATP in the Planned order.... 585 ..........593 Demonstration: Collective availability check .. Demonstrate how to execute (ATP) Explain the steps to configure ATP in the planned order Demonstrate the configuration of the checking group Demonstrate the configuration of the check rule Demonstrate the configuration of the check control Demonstrate the configuration of the scope of check............ versus the single-level approach that the planning run takes................591 Demonstration: Availability Overview .................................. Here you will learn how to look at planning from a multi-level perspective.598 Demonstration: Availability Check .

............613 MRP Check Control Settings ................... 2004/Q3 .614 Demo scope of check...........612 Demonstrate the Check Rule Table..... All rights reserved......................Unit 11: Component Availability SCM240 Demonstration: Demonstration: Demonstration: Demonstration: Demo Check Group ..617 586 © 2003 SAP AG...............................................

The goal of ATP is to provide a confirmation to both internal and external customers as to whether or not they can support the requirement being placed on the organization. prior to it’s actual consumption. Execute available to promise on planned orders to see how this may improve the planning process for your pump product lines. One of those assumptions that will happen in the planning run is that components will always be available. • • • • Sales and Distribution: Sales orders and Deliveries Production Planning: MRP . several assumptions will be made.Planned orders Production Execution: Production/Process Orders Materials Management: Inventory Mgmt .SCM240 Lesson: ATP in the Planned order Lesson: 502 ATP in the Planned order Lesson Duration: 45 Minutes Lesson Overview In order for planners to perform to a high level of efficiency. Using Available-to-Promise (ATP) companies try to acknowledge the need of product. 587 . other parts of the business must consider serving internal customers. you need to ensure that the components will be available against the requirement dates set by the parent orders.Goods movements 2004/Q3 © 2003 SAP AG. ] Business Example During the course of planning. All rights reserved. you will be able to: • • Explain the purpose of Available to Promise (ATP) in planned orders. planners need to have some type of check mechanism to review their production plan in the short term. Since planning runs will typically be executed in background jobs. Available to Promise Overview High customer service is one goal that most companies share. In this section you will learn how ATP works and execute a collective ATP check and an interactive ATP check. Demonstrate how to execute (ATP) [Enter a description of what the instructor should discuss with the participants about the context of the lesson. While some look to outside customers. Lesson Objectives After completing this lesson.

if you want to make sure that the necessary material components are available for the production of the finished product. This may be necessary when converting the planned order into a production order or beforehand. 2004/Q3 . you can use the availability check to ensure that a goods movement will not jeopardize the availability situation of other issue elements already created and checked in the system. when creating the sales order. As a result. such as production orders or planned orders. whether a material will be available for the requirements date or whether you have to make extra planning arrangements to guarantee material availability. Planned order: You can execute the availability check for the components of a planned order. The availability check using ATP logic is a cross-application component. 588 © 2003 SAP AG. All rights reserved. for example. Inventory management : When creating or changing reservations as well as at goods issue. the system checks.Unit 11: Component Availability SCM240 During the material availability check. If the reply is positive. Using the material availability check contributes towards increasing the accuracy of planning and the service level for creating sales orders as well as for the internal production process. the sales order can be confirmed. production orders. within the framework of the ATP check. you can check whether the necessary material components are available for production of the finished product. You can therefore recognize at an early date. It can also check if receipts. • • • Figure 179: Availability Check The Available-to-Promise (ATP) check has several applications. the system makes sure that requirements are covered by stock or by planned receipts. when you create a sales order. or during goods movements. whether or not there is enough stock available in the warehouse for the required material. It can be accessed from the business application areas listed below: • Sales and distribution: You can check whether the material is available on the desired delivery date when creating sales orders and also when creating delivery notes. Production/Process orders : When processing production orders. you can use it in sales orders. Among others. are scheduled before the desired date. A missing parts check can be run at goods receipt.

589 . forecast planning exists as an alternative (choose in the customer requirements class). In the availability check using ATP logic. the system checks whether or not all issues are covered by existing receipts and if open quantities from the receipts are available to cover newly received issues. The system copies the result of the component check to the planned order header as the confirmed quantity and the order confirmation date. MMBE) cannot be used for understanding and for controlling the results of an availability check. The values displayed in the two transactions stated (MD04 . In the next availability check.SCM240 Lesson: ATP in the Planned order Along with the availability check according to ATP. This transaction shows the development of the available quantities exactly the same way as it is taken into account in the availability check. you must use Transaction CO09 (Availability Overview). you can only confirm requirements for the amount of the remaining ATP quantity. These quantities. 2004/Q3 © 2003 SAP AG. according to the ATP logic. which have not yet been assigned. All rights reserved. Figure 180: Availability Check Using ATP Logic When performing an availability check using ATP logic. this quantity is flagged as confirmed in the requirement and the ATP quantity of the component’s stock or receipt is correspondingly reduced. the system checks whether or not the requirement quantities are covered by specially defined receipt and goods elements or by a specific stock. that is. Instead. If you can confirm a quantity for the requirement date. are added to obtain the ATP quantity. Note: The ATP quantities are not calculated across planning segments and do not take any periods into account.

which is the simplest to explain. System Data System: Client: User ID: Password: Set up instructions: 1. Alternatively. In this case. Demonstration: Interactive ATP Purpose Goal of this demo is to show how ATP works for a sales order. you must enter the exact checking rule which is also used within the availability check on the selection screen of the transaction. the system displays a dialog box ’Date overview’ from which you can display. execute VA01 . All rights reserved. the scope of inspection. both can and will cause (depending on the settings in the scope of inspection) differing values.Create sales order Field Order type Sales Organization Distribution Channel Division Sold-to Ship-to Po Number Value OR 1000 10 00 1000 1000 ## 590 © 2003 SAP AG. Transaction MD04 interprets the data found according to the MRP logic and Transaction MMBE displays only the currently available stocks. So that the information in Transaction CO09 also corresponds to the information during a check. 2004/Q3 . In general. a check can only be initiated (also in the other order types named) for the component considered. in addition to the scope of inspection set also the checking rule is displayed in the header. It is relatively simple to determine the availability check at least in the production order by selecting the respective component on the component overview and call in the menu entry ’Settings -> Availability’. 2. In the dialog box generated. among other things.Unit 11: Component Availability SCM240 In contrast to this. In another session. From the Stock/Requirements list select R-F2## at plant 1000.

12.SCM240 Lesson: ATP in the Planned order Rqd Deliv. To see the SD dates due to float select the line and then select Shipping details. 6. 7. line item date one week earlier. 591 . This is using the production plan to “confirm ”the sales order. 4. enter another line item for same product. The result will be a delivery proposal. Accept the proposal. Date Material Order Qty 3. If students need to see the confirmations select the line item and the select Schedule lines for items. 13. One month from today (press Enter) R-F2## 150 pcs When all information is entered. Review the stock requirements list for R-F2## at plant 1000. 10. 5. From the planned order header screen select Check Component Availability. Point out the previous line item. 11. 2004/Q3 © 2003 SAP AG. Optional upon returning to the sales order overview. Select the first planned order on the list and go into change mode. Demonstration: Planned order ATP Purpose Demonstrate the interactive planned order component ATP System Data System: Client: User ID: Password: Set up instructions: 1. 9. press the enter key. From the delivery proposal select ATP Quantities. Select the delivery proposal button. 8. 3. 2. qty of 50. select ATP Quantities Compare this report to the stock requirements list/production plan. All rights reserved. To review the details of the ATP situation.

Unit 11: Component Availability SCM240 4. dependent requirement have consumed the 10 pcs of inventory. that you previously checked. 12. You cannot change the displayed data. and select ATP Quantities. All materials should be available. 2004/Q3 . 11. Select Save Select another planned order and execute a similar ATP check. Exit order without saving. Note the proposal date. The availability check is run using a selected checking rule. 8. Check Availability to 10. All rights reserved. but notice the Firming indicators are set. 9. Note the planned order’s. Notice the yellow lines since not all components will be available. Availability Overview The availability overview enables you to see the ATP situation for a particular material in a defined plant. Select one of the yellow line items and then select run a component ATP. 5. Return the header screen. Figure 181: Availability Overview 592 © 2003 SAP AG. 7. 6.

Enter your material R-F2# at plant 1000. All rights reserved. the system displays the daily availability situation of the selected material in a plant according to the scope of check. The Availability Overview screen is divided into three sections: • • n the upper section. Demonstration: Availability Overview Purpose Demonstrate to users the current status of the ATP quantity System Data System: Client: User ID: Password: Set up instructions: 1. users can see what MRP elements when into determining the ATP quantities. The system uses negative indicators to display the requirements. In the middle section. 593 . Logistics → Production → MRP → Environment → Availability Overview 2. The data is sorted chronologically and starts with the plant section (if no special stocks are displayed). • By selecting Scope of check. The check rule can be entered manually or it will be picked up from the MRP group or the Plant parameters. there is an aggregated display of product availability on a plant level. In the lower section. a committed quantity (only for requirements) and a cumulated ATP quantity. If necessary. the storage location section. the system displays information about the check. batch section and batch storage location section follow. By using this.SCM240 Lesson: ATP in the Planned order You can call up the availability overview using the transaction CO09 or from the relevant application component. Leave the check rule blank. For each date and MRP element. the system displays a totals requirement with a receipt quantity (for stocks and receipts) or a requirement quantity. 2004/Q3 © 2003 SAP AG. Logistics → Production → MRP → Environment → Availability overview or can be accessed from the MRP or Stock/Requirements list Environment → ATP Quantities. When entering the transaction you will specify the material (which has the check group) the plant and the check rule. you can determine quickly whether there is a material shortage.

Note: One of the configuration settings for the profile is sorting criteria. under Production → MRP → Planning → Procurement Proposals → Planned Orders → Carry out collective availability check. Logistics → Production → MRP → Planned Orders → Collective Availability Check (MDVP) Figure 182: Collective ATP To be able to carry out the collective availability check. Collective Availability Check In the collective availability check you can check whether the components required are available for several planned orders simultaneously. This may have an impact on the results of the ATP check. you need a profile order view. This is particularly useful if you want to convert several planned orders simultaneously. All rights reserved. You can create your own profile in Customizing for MRP.Unit 11: Component Availability SCM240 3. for example. and you want to check beforehand if and by when the components are available. due to the sales orders entered in the last demonstration. The profile controls the formatting of the overview list with the planned orders selected (field selection. or you can copy and change the profile 000001. Note the ATP is Zero until new production occurs well into the future. 2004/Q3 . 594 © 2003 SAP AG. field sequence). Explain the results of your previous check. In the standard system the profile order view 000001 is used.

the system automatically selects all orders before the check. and the RC will be populated as a result of the check.the order cannot be fully confirmed 06 .the order can be fully confirmed 02 . When entering the overview screen. The check is carried out in the order in which they are displayed.availability check not allowed with current order status 08 .quantity withdrawn) and the component quantity confirmed by the availability check determines the confirmed order quantity.Confirmation factor DDf . The Confirmation factor ( CFc The) = confirmed order quantity / order quantity.rqmts. The component with the greatest difference between the open quantity (requirements quantity . The Confirmed order quantity = (confirmed component quantity / open quantity) * order quantity The DDf is the Difference between the planned basic finish date and finish date confirmed by the availability check. Users need to pay particular attention to the following fields: • • • CFc .Difference in days between order finish date and overall confirmation date RC . date component The RC is the result of the availability check for each order: • • • • • • 01 . The confirmed finish date is calculated using the component with the largest difference (in factory calendar days) between requirements date and confirmed date: confirmed finish date = basic finish date + confirmed date component . 595 . the system will display various information about the orders.Result of Availability Check The CFc and DDf will be calculated for all existing orders that haven been check. All rights reserved. During the background check.the order has no material components 07 .order was locked at the time of the check by another user and was not checked 09 .SCM240 Lesson: ATP in the Planned order You can carry out the collective availability check in two ways: • • in the foreground in the background The system checks all orders which are selected on the list.order could not be checked When executing the collective availability check users will have two options: • • Reset availability data Execute availability check 2004/Q3 © 2003 SAP AG.

You have three options: • Individually: If selected individually then the availability check is carried out for each material depending on the settings in the checking group. The check against planning cannot be carried out if the checking group has the indicator No checking against planning. that is. If it is specified in the checking group for example that the material is always checked against planning then a check is always carried out against planning. planned orders for which components are available according to the availability check are firmed. You can define for planned orders whether these are fixed or not. for the type of check individual is defined. All rights reserved. you use to specify that an availability check is carried out. All materials with ATP check: If you select ATP check all then the availability check is carried out for all materials as an ATP independently of the settings in the checking group. Figure 183: Collective ATP Check Mode The selection controls how the availability check is to be carried out for a material. the availability check for each material is carried out depending on the check group. 2004/Q3 . When using the execute availability check indicator. All materials with planning check: If you select Planning check all then the availability check is carried out for all materials as a check against planning. the system status "FMAT" (missing material availability) in the production order is reset. • • Firm planned orders: If this selection is active. This means that the planned orders are firmed for the planning run and will not be 596 © 2003 SAP AG. If you want to carry out another type of availability check then you must change to the checking mode.Unit 11: Component Availability SCM240 When resetting the availability data has the effect that the following data is deleted: • • • • The confirmed quantity in the material components the missing parts indicator (only production order) the overall confirmation date in the order header the confirmed quantity in the order header Also.

Error: Many customer messages for the collective availability check are either consulting questions or refer to errors which also occur in an individual check. no note exists for this. in general.0D System for Tulip. the memory check described above is no longer available in this form. you first should always check whether the error also occurs during the individual check.3. -> The memory check was also activated once by Bosco Weisin a 3. but the ATP server which has been introduced in this release offers similar functions. For more information regarding the use and setup of the ATP server please refer to Note 99999.4. the error can. 597 .0E: Only ATP check Release 3. The confirmed quantities generated during the check are inserted into ’MDPSX’. the same modules are used which are also used during an individual check via Transaction CO02 (CO_ZA_AVAILABILITY_CHECK) or Transaction MD12 (MD_CHECK_KOMP_VERFUEGBARKEIT). Since this saves many database accesses in corresponding scenarios.0D .0F .0A. If this selection is not active.3. You should search for notes with key word ’collective availability check’. As of Release 4. this is very work-intensive. All rights reserved. Check availability (Note: 123848 Internal documentation collective availability check Release 3. Therefore. The components are also firmed which means that the BOM is not re-exploded in the next planning run. the stock/requirements situation (table ’MDPSX’ in program ’SAPLM61X’) is read only once from the database for every material and then stored in the memory for following checks (’READ_MEMORY’ and ’FILL_MEMORY’ in the LM61XF52). The memory check can also be activated in Release 3. the choice as it is given in Release 3. The ATP server has been realized as a separate process on one of the application servers of an R/3 system. not be within function module (CO_ZA_AVAIL_CHK_ORDER_MULTI). In the collective check. If yes. a high degree of performance is gained. During memory check. There.0F via Note 84185 (however.Therefore.SCM240 Lesson: ATP in the Planned order changed automatically.1I: Memory check (during ATP check). However. the planned orders are not firmed after the availability check.1G does not exist).70: ATP and planning check (the planning check is not used by customers) Release 3.1G .The exception is the incorrect calling 2004/Q3 © 2003 SAP AG. This inserting (’FORM INSERT_SORTED_MDPSX_MEMORY’ in ’LM61VF62’) is carried out cumulated on the requirements date with ’DELKZ’ ’KM’. in this case it is always checked with memory. aggregated versions of Tables RESB (material requirements/reservations from planned and production orders) and VBBE (schedule lines for the customer order item) are permanently kept in the main memory and updated by the corresponding applications in case of changes.

and Execute Notice that your planned order from the first demonstration is confirmed at 100%. System Data System: Client: User ID: Password: Set up instructions: 1. Return to the stock requirements and review your results. All rights reserved. Select all the orders and select Check availability. 3. Availability Checks During Independent Requirement Calculation For made-to-order planning strategies it is not possible to check against inventory since their will be none. This type situation makes it possible to check against some time of planned receipt in make-to-order production. 2004/Q3 . 4. 598 © 2003 SAP AG. Demonstration: Collective availability check Purpose Demonstrate collective availability check for planned orders. Enter your part R-F2## at plant 1000 use profile 000001. Logistics → Production → MRP → Planned Order → Collective Availability Check (MDVP) 2. ( 52 .MTS ). 5. and some others. the call of ’CO_ZA_AVAILABILITY_CHECK’ for production orders as well as ’MD_CHECK_KOMP_VERFUEGBARKEIT’ for planned orders should be compared during the individual and collective check. you created independent requirements to trigger production planning. Therefore. However when using strategies 50.Unit 11: Component Availability SCM240 up of the modules. 60.

you can only carry out the availability check against planned independent requirements. receipts or stocks are included in the availability check. In this check.SCM240 Lesson: ATP in the Planned order Figure 184: Availability Check with Planned Independent Requirements Allocation In the check against planned independent requirements. the system only checks against the unconsumed planned independent requirements quantities. the system uses the consumption mode. For technical reasons. The check by planned independent requirements allocation determines whether or not sufficient planned independent requirements have been planned to cover a customer requirement. You can define the type of availability check to be carried out using the requirements class in the strategy. when using SAP R/3 strategy 50 (planning without final assembly). you can check against the planned independent requirements of the planning material. 599 . All rights reserved. Demonstration: Availability Check Purpose Set the availability check System Data System: 2004/Q3 © 2003 SAP AG. This means that no ATP quantities. When processing the sales order using SAP R/3 strategy 60 (planning with planning material). such as backward consumption in the above example and the corresponding consumption periods.

First. 2004/Q3 . Demonstrate where the availability check for sales orders is set: Customizing: Sales and Distribution → Basic Functions → Availability Check and Transfer of Requirements → Availability Check → Availability Check with ATP Logic or Against Planning 600 © 2003 SAP AG. show the various types of availability checks SAP R/3 strategy 50 (check against planned independent requirements): Customizing: Production → Production Planning → Demand Management → Planned Independent Requirements → Planning Strategy → Define Strategy Select Strategy 40 then select Details .Unit 11: Component Availability SCM240 Client: User ID: Password: Set up instructions: 1. All rights reserved.Availability check selected ( → ATP)Exit out of Strategy 40 and select Strategy 50 Availability check deselected and assignment indicator active ( → check against planned independent requirements) 2. Note: You can find settings for the availability check in Customizing and in this case refer to SAP R/3 Enterprise.

Rqd Deliv.] Data Order type Sales Org Dist. you will be able to: • Demonstrate and interpret the results of a sales order ATP check • Demonstrate the impact of an interactive ATP check on a planned order • Demonstrate how to perform a collective ATP check Business Example [Enter a business example that helps the learner understand the practical business use of this exercise.SCM240 Lesson: ATP in the Planned order 511 Exercise 20: Availability Checking in the Planned order Exercise Duration: 25 Minutes Exercise Objectives After completing this exercise. Chnl Division Data Sold-to Ship-to PO No. Date (press Enter) Data Material Order Qty Data Profile: Order view Profile: Component view: Basic Order Start Date (Relative) to Date Value OR 1000 10 00 Date Value 1000 1000 ## One month from today Date Value R-F2## 150 pcs Date Value 000001 000001 25 2004/Q3 © 2003 SAP AG. 601 . All rights reserved.

From the Stock/Requirements list for R-F2## at plant 1000. 4. 2004/Q3 . 1. Enter a sales order to see how your production plan will be used to influence ATP. 5. Review the Stock/Requirements list for R-F2## at plant 1000. 6. You have received a forecast via the S&OP Process. 1. Accept the delivery proposal and SAVE the order. All rights reserved. Continued on next page 602 © 2003 SAP AG. Execute several interactive ATP checks on individual planned orders and interpret the results. Did your order quantity get confirmed? 3.Unit 11: Component Availability SCM240 Task 1: ATP in the Sales Order Your organization has determine that several of your pumps will be placed in inventory at plant 1000 in anticipation of a large volume of local sales. select the first planned order in the list and perform a component ATP check. which was used to initiate a MRP run. Accept the delivery proposal and enter an additional line item for R-F2## for 50 pcs and change the date to one week earlier. Did the new line item that was a week earlier get confirmed. Do not save the order until told to do so. Review the Stock/Requirements list for R-F2## at plant 1000. In another session. Select the ATP Quantities for more details. Task 2: ATP in the Planned Order As you get closer to developing a production schedule you need to insure that the components are available for some of your finished good and sub-assembly production plans. 2. 2. Create sales order with the following data. Don’t save until told to do so.

has anything changed ? 5. Due to the amount of materials you are responsible for planning. Execute a “interactive” collective ATP check for R-F2## at plant 1000. 2004/Q3 © 2003 SAP AG. Limit the check to orders whose “order start” date is approximately five weeks out. you need to execute a collective ATP check for all orders five weeks out. Save the planned order.SCM240 Lesson: ATP in the Planned order 3. All rights reserved. What was the result of the check? 4. Task 3: Collective ATP for the Planned Order As you get closer to developing a production schedule you need to insure that the components are available for some your finished good and sub-assembly production plans. 1. Return the header of the planned order. 603 .

Logistics → Production → MRP → Evaluations → Stock/Requirements list (MD04) In another session. In line item 0020 enter the R-F2## and a quantity of 50. a) b) Follow menu path: Logistics → Sales and Distribution → Sales → Order Create (VA01) After entering you material and quantity press the enter key. Continued on next page 604 © 2003 SAP AG. You have received a forecast via the S&OP Process. 2004/Q3 . which was used to initiate a MRP run. This is due to the previous line item blocking the inventory. Did your order quantity get confirmed? Answer: No. 3. a) b) Select Delivery Proposal Select Save.Unit 11: Component Availability SCM240 Solution 20: Availability Checking in the Planned order Task 1: ATP in the Sales Order Your organization has determine that several of your pumps will be placed in inventory at plant 1000 in anticipation of a large volume of local sales. All rights reserved. Select the ATP Quantities for more details. 4. Don’t save until told to do so. Press Enter. but it was delayed. Accept the delivery proposal and SAVE the order. due to a lack of inventory the system proposed a delivery schedule based on future receipts. 5. 6. Review the Stock/Requirements list for R-F2## at plant 1000. 1. Answer: Yes. Accept the delivery proposal and enter an additional line item for R-F2## for 50 pcs and change the date to one week earlier. Did the new line item that was a week earlier get confirmed. Enter a sales order to see how your production plan will be used to influence ATP. a) b) Select Delivery proposal. tab over to the First date and enter a date a week earlier. Create sales order with the following data. a) 2.

due to a successful availability check the planned order header and all components (BOM) were firmed. a) b) c) Select the first planned order in the list and select Select Change Details of Element From the header of the planned order. a) Select Save. Continued on next page 2004/Q3 © 2003 SAP AG. 1. Review the Stock/Requirements list for R-F2## at plant 1000. This means that the next planning run can not delete or change the planned order. All rights reserved. can not confirm the order at all since no supply is currently expected. If you received all green lines then all components were available. 605 .SCM240 Lesson: ATP in the Planned order Task 2: ATP in the Planned Order As you get closer to developing a production schedule you need to insure that the components are available for some of your finished good and sub-assembly production plans. If any yellow lines appeared. select the first planned order in the list and perform a component ATP check. then your materials are not available until a later date. What was the result of the check? Answer: Varies. 5. a) 2. 4. Logistics → Production → MRP → Evaluations → Stock/Requirements list (MD04) From the Stock/Requirements list for R-F2## at plant 1000. Save the planned order. Execute several interactive ATP checks on individual planned orders and interpret the results. has anything changed ? Answer: Yes. select Check Component Availability 3. Do not save the order until told to do so. If you received a red line. Return the header of the planned order.

1. In the pop up window select Exit the transaction. Select all. 606 © 2003 SAP AG. Limit the check to orders whose “order start” date is approximately five weeks out. you need to execute a collective ATP check for all orders five weeks out. 2004/Q3 . All rights reserved. a) b) c) d) e) Logistics → Production → MRP → Planned Order → Collective Availability Check (MDVP) Enter the parameters indicated and select Select Execute. Due to the amount of materials you are responsible for planning. and then select Check Availability. Check availability.Unit 11: Component Availability SCM240 Task 3: Collective ATP for the Planned Order As you get closer to developing a production schedule you need to insure that the components are available for some your finished good and sub-assembly production plans. Execute a “interactive” collective ATP check for R-F2## at plant 1000.

• Demonstrate how to execute (ATP) 2004/Q3 © 2003 SAP AG. 607 .SCM240 Lesson: ATP in the Planned order Lesson Summary You should now be able to: • Explain the purpose of Available to Promise (ATP) in planned orders. All rights reserved.

Configuration of ATP Overview The setup of the availability check is the same for all applications. 2004/Q3 . This section will be up to the instruction to determine length of delivery due to its complexity. Based on the previous units it would be beneficial to at least show students the Scope of check in order to better understand ATP. All rights reserved. they must understand how the configuration is structured in order to take advantage of the flexible functionality.Unit 11: Component Availability SCM240 Lesson: 518 Configuration of ATP Lesson Duration: 30 Minutes Lesson Overview In this lesson you will focus on understanding the concept of how configuration of ATP is setup in SAP ERP in regards to Planned orders. The ATP functionality consists of : • • • • Checking (ATP) Group Check rule Check Control Scope of Check 608 © 2003 SAP AG. Business Example In order for your planners to effectively use ATP. Review the configuration of ATP in order to use it to your planners advantage. you will be able to: • • • • • Explain the steps to configure ATP in the planned order Demonstrate the configuration of the checking group Demonstrate the configuration of the check rule Demonstrate the configuration of the check control Demonstrate the configuration of the scope of check. Lesson Objectives After completing this lesson.

however several will be applied as master date. While this is a configuration setting the check group will be combined with the check rule to define a very specific type of check. 609 . Figure 186: Checking Group Configuration 2004/Q3 © 2003 SAP AG. the check group will allow you to control what types of receipts are relevant for ATP. Checking Group The checking group that is entered in the SAP R/3 material master (MRP 3 view) enables you to group materials according to checking properties.SCM240 Lesson: Configuration of ATP Figure 185: Settings for the SAP R/3 Availability Check These settings are controlled via configuration. Users need to keep in mind that if checking results are specific to a group of materials. All rights reserved.

If the check is carried out without accumulation. for materials that are planned via a KANBAN process. the availability check runs a little slower since the enqueue server has to be queried additionally for every component and accepted confirmations have to be written to the enqueue server. Note: However. You can also use this setting. Whether the system checks with (1) or without (initial) accumulation makes a difference if the total of the confirmed quantities is greater than the quantity of the receipts (including stocks). for example. for example. and value 3 acts as value 1 in respect of this function. the invoice is still used even if negative accumulated ATP quantities are created. If this indicator is set. for low-value materials that for performance reasons should not be included in the availability check. With accumulation. If the Accumulation field is set to value 3. 1. 2004/Q3 . These four different values are used to control two different functions independently of each other. neither for the created order nor for the released order (nor for an availability check from another application. for example. however on the other hand this prevents any problems with checks that are carried out simultaneously. in Transaction CO09. the sales order). Accumulation You can enter four different values in the Accumulation field: Initial (blank). Since in this situation the KANBAN control makes sure that enough material is always available. Blocking the confirmed quantities If this indicator has been set. the quantities confirmed during an availability check are blocked by special entries in the enqueue server so that availability checks taking place at the same time do not assign these quantities again. This setting makes sense. bear in mind that with this setting. This function is controlled via the low-order bit so that the values initial and 1 define via this function. Transaction CO01) 610 © 2003 SAP AG. the system displays the value 0 (zero) as the accumulated ATP quantity. it does not make sense to carry out a material availability check for these materials. they will never be included in the availability check.Unit 11: Component Availability SCM240 The following options exist for the checking group: No check Material whose material master has a checking group entered in which this indicator is set (checking group KP is delivered this way in the R/3 standard system) is never included in a material availability check. the availability check calculates differently. These two functions are the accumulation and also the ’Online-vs-Batch’ check. Value 2 then acts as initial. On the other hand. for example. depending on whether the check is called from a transaction creating an order (for example. 2 or 3. then the check with accumulation is activated on the one hand (see preceding section). All rights reserved.

the secondary requirements have no effect on the accumulated available quantity (since the confirmed quantities are zero) during a check from a change transaction. A confirmation is carried out for the reservation being checked only if material is nevertheless available. only the confirmed quantity of the requirements is used for the reduction of the accumulated ATP quantity. you can deactivate this function completely by using the modification described in Note 338075.SCM240 Lesson: Configuration of ATP or from a transaction changing an order (for example. networks and maintenance orders. the transactions for the planned order conversion (Transactions CO40. If. the material requirements of the planned orders) are taken into account in the scope of check. However. If you do not want to use cumulation type 3 at all for the production control without being able to adjust the checking group correspondingly (for example. even though a material availability check is never carried out in the planned order. It is essential here to make sure that the setting for the scope of the check is made correctly. there may be the need in the future to change this logic in order to align business processes. However. you must implement the modification specified in Note 338051.. the secondary requirements (that is. however. impact on production orders as well as process orders. In this context. CO41. These modifications. This logic was implemented by Note 107895 to prevent confirmed quantities that were already determined in the planned order from being cancelled again during the planned order conversion on account of cumulation type 3. the accumulated available quantity is reduced by the requirement quantities of the secondary requirements. you call the check from a creation transaction. however. for example. COR7. Note that the described logic represents the currently implemented system status for deciding when the system should check against the requirement quantities and the confirmed quantities (Transactions CO01/CO02/CO40). If the check is called from a change transaction. you call the check from a creation transaction. an availability check in this mode delivers very ’pessimistic’ results which see all other available requirements as completely confirmed. it runs as normal.) are regarded as change transactions because the requirements were already created by the planned order.. If. COR8 . Therefore. because this control is required for the sales order processing for this material). 2004/Q3 © 2003 SAP AG. however. 611 . if you nevertheless prefer to check in ’create’ mode also during the planned order conversion. This normally means that in this scenario less material is available for the confirmation. All rights reserved. the actual requirement quantities are used for the reduction of the accumulated ATP quantity regardless of any available confirmed quantities. Transaction CO02). If.

2. All rights reserved. 2004/Q3 . Checking Rule Figure 187: Check Rule 612 © 2003 SAP AG. Remind users that it is on a Plant specific view. In addition it also sits on several other views but they all populate the same field/table in the data base. From the S/R list review the MRP 3 screen and point out the checking group.Unit 11: Component Availability SCM240 Demonstration: Demo Check Group Purpose System Data System: Client: User ID: Password: Set up instructions: 1. Demo the check group configuration: IMG → Production → Shop Floor Control → Operations → Availability Check → Define Checking Group.

Check Control The checking control allows you primarily to determine application-specific. The specification of the checking rule is used for this and no ATP availability check can be carried out if it is missing.Stock Transport Order (Configurable.Production/Process orders (Configuration. assigned Plant/Order Type/Business Event) MM . which scope of check should be used. Document/Order type) PP . assigned to MRP group or Plant) PP . The usage of he check rule is defined in the check control tables. The check control is handled differently for each application: • • • • • Sales and Distribution (Hard Coded) Materials Mgmt . There are no values that pertain to the check rule.Planned Orders (Configuration. However. Point out to users there are no control parameters associated with the check rule. Demonstration: Demonstrate the Check Rule Table Purpose System Data System: Client: User ID: Password: Set up instructions: 1. when you combine the checking group and checking rule you can define a specific check for availability of inventory or production. IMG menu path: Production → Material Requirements Planning → Procurement Proposals → Planned Orders → Define Availability Check for Components 2. All rights reserved. Select the checking rulle option. 613 . 3.Material Movements (Configuration.SCM240 Lesson: Configuration of ATP The check rule is a key for a specific business process. assigned Transaction code) The check rule can be defined in the IMG via the following menu paths: 2004/Q3 © 2003 SAP AG.

Order . Demonstrate the plant and MRP group settings.IMG → Production → Shop Floor control → Operations → Availability check → Define Checking Control Note: For MRP the check rule can be define at the plant or the MRP group level. 2004/Q3 . 614 © 2003 SAP AG. Follow the IMG menu path: Production → MRP → Procurement Proposals → Planned Orders → Define Availability Check for Components 2. Demonstration: MRP Check Control Settings Purpose System Data System: Client: User ID: Password: Set up instructions: 1. Scope of Check The connection between the checking group and the checking rules is made by entering this into the scope of check (Customizing application). MRP group has a higher priority than the plant.Production → MRP → Procurement Proposals → Planned orders → Define Availability check for components PP-Prod.Material Management → Inventory Management → Goods issue/transfer postings → Setup Dynamic Availability check MM/Stck Transfer -Material Management → Purchasing → Purchase Orders→ Setup Stock Transfer Order → Assign Delivery type and Check rule SD . Here you define for which stocks. issues and receipts the combination is valid as check instructions.Hard coded by SAP! PP/MRP .Unit 11: Component Availability SCM240 MM/Inv . All rights reserved.

they may not want to include planned orders. 615 . Note: With different combinations planners can get very specific with the ATP checks. and the checking rule that can be assigned via configuration (SD exception). planners can dictate the specific input into the ATP check. The setting ’Only include 2004/Q3 © 2003 SAP AG. As a rule it makes no sense to check reservations for production orders but at the same time not to take the requirements of other production orders into account. In regards to MRP related checks for materials who have very durations between production runs. The check rule is modeling the business event or activity. since each combination can point to a different scope of check. however they are not the material requirements for planned orders. network and maintenance order: • With dependent reservations : The dependent reservations are the material requirements for production orders (or process orders . process order. All rights reserved. Hence. In particular you must take into consideration here the following fields from the point of view of the production order..).. Through the use of a different check rule or checking group this can be accomplished. The scope of check is used to set which stock types as well as which dynamic receipt and issue types are to be taken into account in the availability check (= requirements). Materials with long Durations between runs may need to consider planned orders.SCM240 Lesson: Configuration of ATP Figure 188: Scope of Check Configuration Through the use of the checking group which is assigned to the material master. you should not set this field to ’Do not check’ until you have carefully checked the requirements and the resulting consequences.

This is particularly true if the requirements date of a reservation lies after the end of the replenishment lead time (defined in material master). In this situation. In certain circumstances. 2004/Q3 . note that you must create a corresponding receipt (for example. the availability check should only check whether the required quantities are available ’anywhere in the plant’ (that is. All rights reserved. However. only for created orders but not for released orders) needs to be clarified with the customer in cooperation with the consultants with understanding of the implemented process. the availability check can instantly report complete availability of the material without actually checking the ATP calculation.Unit 11: Component Availability SCM240 • withdrawable reservations’ normally only makes sense for checking released orders (a reservation is withdrawable if the assigned operation is released) but there can also be exceptions. there might be no planned receipt to cover the confirmed quantity. it would make sense to deactivate the storage location check (that is. 616 © 2003 SAP AG. through an MRP run) despite confirmation of the material requirements using the replenishment lead time. and only the assumption that the material can be procured by this certain date. the availability check may run more efficiently in some cases. for example. and/or if the requirements date of the component is very far in the future). However. every required quantity can in theory be procured by the respective material. For example. scattered over the entire plant. Instead. set the switch). it makes sense to omit checking at storage location level if. This behavior is based on the definition of the replenishment lead time: up to the end of the replenishment lead time. In this case. There are performance advantages to this since otherwise the system carries out the check both at the level of the storage location and at the level of the plant. Whether this inaccuracy can be accepted or not (or. • No storage location check : You can use this to prevent the check at the level of the storage location (if it exists in this reservation). Check without replenishment lead time : If the check with replenishment lead time is activated (caution: The field must not be set in this case!). in general in the central storage). there is a separate storage location at every work center from which the required materials are to be taken. the results are not as accurate as for the regular check. these storage locations always are refilled only shortly before the actual start of manufacturing from a central storage in the plant so that normally they have no excess stocks which can be used for confirmation. The availability check itself does not trigger any procurement! Though the check taking into account the replenishment lead time is in certain cases significantly faster than the regular check (in particular if there are very many receipts and issues to be taken into account.

5. 617 . From the S/R list for T-B1## at plant 1000. change a planned order 2. Execute a component availability check. 6. Since your T-T2## is in QI stock. 2004/Q3 © 2003 SAP AG. From the ATP results screen select one item and preform a component check again. From the “component ”results screen select the Scope of check to review what MRP elements were considered during the ATP check. 3.SCM240 Lesson: Configuration of ATP Demonstration: Demo scope of check Purpose System Data System: Client: User ID: Password: Set up instructions: 1. change the scope of check so QI stock is not included. Rerun the check and see if the results are different. 4. All rights reserved.

2004/Q3 . Feel free to use your own additional questions. 618 © 2003 SAP AG.Unit 11: Component Availability SCM240 Facilitated Discussion Discussion Questions Use the following questions to engage the participants in the discussion. All rights reserved.

619 . 2004/Q3 © 2003 SAP AG. All rights reserved.SCM240 Lesson: Configuration of ATP Lesson Summary You should now be able to: • Explain the steps to configure ATP in the planned order • Demonstrate the configuration of the checking group • Demonstrate the configuration of the check rule • Demonstrate the configuration of the check control • Demonstrate the configuration of the scope of check.

620 © 2003 SAP AG. • Demonstrate how to execute (ATP) • Explain the steps to configure ATP in the planned order • Demonstrate the configuration of the checking group • Demonstrate the configuration of the check rule • Demonstrate the configuration of the check control • Demonstrate the configuration of the scope of check. All rights reserved. 2004/Q3 .Unit Summary SCM240 Unit Summary You should now be able to: • Explain the purpose of Available to Promise (ATP) in planned orders.

True False In what scenario will ATP not check against existing supplies and inventories. What are they? 2004/Q3 © 2003 SAP AG.SCM240 Test Your Knowledge 527 Test Your Knowledge 1. All rights reserved. Determine whether this statement is true or false. 4. 5. 621 . The available to promise check is not limited to sales requirements. The control setting of what supply and demand elements are considered in the ATP check are configured in the Fill in the blanks to complete the sentence. □ □ 3. Determining which scope of check is used is dependent on a combination of two things. What is the purpose of available to promise checking? 2.

622 © 2003 SAP AG. Answer: By nature checking existing inventory and supplies wouldn’t make sense in certain planning strategies. 2. In what scenario will ATP not check against existing supplies and inventories.Test Your Knowledge SCM240 528 Answers 1. The available to promise check is not limited to sales requirements. 2004/Q3 . 3. Answer: True Available to promise check can also be done for components of manufacturing orders (planned or converted). What are they? Answer: Which Scope of check that is used is dependent on the availablility check field in the material master and the checking rule. 4. 5. What is the purpose of available to promise checking? Answer: Available to promise check comfirms that the required materials will be available when requested. All rights reserved. The control setting of what supply and demand elements are considered in the ATP check are configured in the Scope of Check. Answer: Scope of Check. If the materials are not available it will confirm an appropriate date when the material is to be available. For example: In strategies 50. 52 & 60 the ATP check is done against planned independent requirements. Or for certain inventory movements. Determining which scope of check is used is dependent on a combination of two things.

........................................Unit 12 529 Simulating the Production Plan Unit Overview This unit discusses the process of simulating a demand program........ and executing long-term planning......... Unit Objectives After completing this unit........... create long-term planning scenarios........ All rights reserved....643 Exercise 21: MRP Run ..... you will be able to: • • Discuss the usage of long-term planning Execute long-term planning Unit Contents Lesson: Long-term planning requirements .... 623 .624 Demonstration: Transfer Firm Planned Orders ........... The unit also explains the relationship between long-term planning and operative MRP...........645 2004/Q3 © 2003 SAP AG.......

2004/Q3 . You will also learn how to execute and evaluate long-term planning using different planning scenarios. you will be able to: • • Discuss the usage of long-term planning Execute long-term planning Discuss the need for long-term planning. explain the various planning scenarios. discuss the process of executing and evaluating long-term planning. All rights reserved. Lesson Objectives After completing this lesson. Then. you will learn about the usage of long-term planning.Unit 12: Simulating the Production Plan SCM240 Lesson: 530 Long-term planning requirements Lesson Duration: 50 Minutes Lesson Overview In this lesson. 624 © 2003 SAP AG. Business Example The Precision Pump company constitutes a number of independent business units for manufacturing pumps. As the planning manager. you need to calculate capacity requirements and the requirement of purchased parts based on various different projection scenarios. Next.

purchasing budget. Following the evaluation of the simulative planning results. you can enter a deviating BOM selection ID. capacity planning. which controls a BOM with a specific usage for long-term planning. order type. 625 . order volumes. 2004/Q3 © 2003 SAP AG. and of the requirement of purchased parts. you can replace the current demand program with the preferred version in long-term planning and can continue it there. • Routing: You can define deviating settings for a particular scenario in the Customizing activity “Define scheduling parameters for planned orders”. Customizing → Production → Material Requirements Planning → Planning → Scheduling and Capacity Parameters → Define scheduling parameters for planned orders. This allows you to calculate of capacity requirements. The demand programs that can be simulated may include planned independent requirements and/or sales orders. All rights reserved.SCM240 Lesson: Long-term planning requirements Overview of Long-term Planning Simulative Planning Areas Position in the Functional Environment You can define deviating routings or BOMs for long-term planning. and inventory controlling. cost center planning. activity type requirement of the cost centers. For each plant. and scenario: Individual selection-ID and scheduling parameters for long-term planning/simulation • BOM: When you define the scenario. Future stock is derived from the predefined requirements and future receipts. You can evaluate the simulation with regard to material requirements planning. future demand programs are simulated within a planning run. You can transfer the data determined for the requirements/stock situation by long-term planning to Inventory Controlling and evaluate it there using standard analyses. You can transfer the data for external procurement to the purchasing information system using a special report and evaluate it there. Simulating the impact of a future demand program throughout all BOM level codes Leveling capacity Planning costs Preview for Purchasing Preview for Inventory Management • • • • • In long-term planning. production control.

626 © 2003 SAP AG. production orders). There is no time restriction for the execution of long-term planning. master data. Cost Center Accounting displays how many activities the production has planned.Unit 12: Simulating the Production Plan SCM240 The data determined in long-term planning for the activity requirements may be passed onto the Cost Center Accounting as planning data. The activity requirements that are determined in long-term planning can be passed onto Cost Center Accounting using an individual report after completion of long-term planning. In long-term planning. cost center planning. purchase orders. The planning periods for long-term planning and operative planning should correspond so that business inconsistencies can be avoided. Figure 189: Simulative Planning Areas The principle of long-term planning is to simulate different versions of the demand program. All rights reserved. purchasing budget. The simulation can be used to optimize the demand program and the production and procurement data with regard to material requirements planning. The simulation can take into account operative data (for example. and inventory controlling. This allows you to determine the production costs for each cost center and the products. sales orders. An individual simulative planning area exists for each scenario in the system. 2004/Q3 . Within these planning areas. separate simulation stock data is calculated and maintained which can be used to carry out planning in scenarios. order volumes. capacity planning. Operative data can be copied to or referenced (taken into account) by one or more simulative planning areas. you set up independent “planning areas”. You can execute simulative planning for the long or short term. which you can subsequently integrate into operative planning. The planning data of the cost centers is updated whereby the requirements activity is determined from the routing data.

you can also create special master data for long-term planning: • You can create special long-term planning routings and run simulations with regard to lead-time scheduling and capacity planning. in the Customizing IMG activity “Define scheduling parameters for planned orders”. This selection ID is assigned to a simulative planning area when creating the scenario in the field “BOM selection ID”. 2004/Q3 © 2003 SAP AG. work centers. This means you do not have to create any new operative data. In addition. To do this. routings. Thus. a simulative planning area. All rights reserved. 627 .SCM240 Lesson: Long-term planning requirements Figure 190: Position in the Functional Environment Long-term planning can be executed on the basis of operative master data: BOMs. and material masters. you must maintain a routing selection ID that controls the long-term routing in Customizing. This selection ID is assigned to a scenario. that is. You can exclude BOM items from long-term planning using the explosion control indicator in the individual items. To do this. very little additional training is required for these tools. you can use special long-term planning BOMs. • The tools available for long-term planning are used in the same way as are the tools in operative planning. In the Customizing IMG activity “Define order of priorities for BOM usages”. you define a special usage for long-term planning in the Customizing IMG activity “Define BOM usages” and define the allowed material types for the BOM header and BOM item for this usage. If you want to simulate situations that use differing master data. you then maintain a BOM selection ID that calls up the long-term BOM.

Unit 12: Simulating the Production Plan SCM240 Planned Independent Requirements Figure 191: Simulative Planned Independent Requirements Several planned independent requirements versions can be created for one material. sales orders are included in the simulative planning area along with planned independent requirements. All rights reserved. Only active planned independent requirements versions are taken into account in operative planning. 2004/Q3 . then MRP plans in the simulative planning area using the same logic as in operative planning. Planned independent requirements versions can be created using the following: • • • • • • The sales and operations plan of a material or a product group The results of flexible planning from sales and operations planning Forecasting Planned independent requirements of other materials Planned independent requirements versions of the same materials Manually A planned independent requirements version can be set as active or inactive. 628 © 2003 SAP AG. If. Inactive versions are created for simulation purposes. according to the settings in the scenario.

All rights reserved. the following elements are included in the simulation: Sales orders. scheduling agreement schedule lines (incl. If the indicator “consider sales orders” is set. shipping notification). SD scheduling agreement (also external service providers). transport calls for stock transport orders and for stock transfer reservations. production orders (including capacity requirements). external sales orders. the following elements are included in the simulation: QM inspection lots.SCM240 Lesson: Long-term planning requirements Planning Scenarios Planning Scenario (1) Consumption-Based Materials Planning Scenario (2) If the indicator “Include firm receipts” is set. deliveries. customer inquiries. shipping notification). You maintain quota arrangements in operative planning and set them up using the quota arrangement usage in the material master for operative and long-term planning. You administer separate data for the quota-allocated quantity and quota rating in operative planning and for each scenario in long-term planning. 629 . Figure 192: Planning Scenario (1) 2004/Q3 © 2003 SAP AG. contracts. customer quotations. dependent and independent reservations. purchase orders (incl.

until the forecasts for future consumption requirements are not covered. or scrap.Unit 12: Simulating the Production Plan SCM240 When creating a planning scenario. Options include“ Long-term planning”. material-specific lot sizes. you can set defaults for certain settings for the scenario by selecting one of the default setting choices on the Create Planning Scenario screen. and“ Short-term simulation”. Which version of the available capacity is used in the simulation. average plant stock). Whether dependent requirements for consumption-based materials. production orders and reservations) in the net requirements calculation. If you have selected the indicator “Gross long-term planning”. In consumption-based planning. All rights reserved. materials are not replenished during the MRP run until stock falls below the reorder point or in forecast-based planning. Whether to include firm receipts (purchase orders. The settings and items you define in the planning scenario include: • • • • • • The plants for which the simulation is to be carried out. 2004/Q3 . safety stock. You can also copy the settings from another scenario. “Gross long-term planning”. The planned independent requirements versions (active or inactive) to be used in the simulation. KANBAN materials and bulk materials are created. Figure 193: Consumption-Based Materials Consumption-based materials are not planned in MRP because no dependent requirements are created for these materials. plant stock at the time of planning. 630 © 2003 SAP AG. the system suggests control parameters with which you plan requirements quantities for cost evaluation and budgeting purposes without taking into account operative available stocks. You can change these defaults at any time. What opening balance (stock) the simulation is to assume (zero stock.

631 . You can analyze the forecast more closely in the Purchasing Information System in the long-term planning evaluations.SCM240 Lesson: Long-term planning requirements In long-term planning. that is. Figure 194: Planning Scenario (2) 2004/Q3 © 2003 SAP AG. the material is planned in the scenario as though it were a material planned using MRP. dependent requirements can be created for consumption-based materials. You are thus provided with a preview of the procurement quantities that are necessary to satisfy the simulated independent requirements. and KANBAN materials. bulk material. All rights reserved.

) Whether make-to-order production or individual project planning is to be executed for the materials of the corresponding strategy. explain the difference between activating a planned independent requirement from the scenario and activating the corresponding planned independent requirements in the planned independent requirement maintenance.Unit 12: Simulating the Production Plan SCM240 In the planning scenario you also set : • Whether the system should work with direct production. that is. 632 © 2003 SAP AG. (These cannot be changed from long-term planning. which means that a transfer period cannot be defined. Whether the planning time fence is also to be effective in long-term planning for materials that are affected by a planning time fence in MRP. the sales orders with a make-to-order planning requirements type are ignored in the scenario. Whether the long-term planning should be executed as gross requirements planning and whether the calculation of scrap in the long-term planning run is to be deactivated. Whether long-term planning BOMs should be used. Whether sales orders are taken into account in long-term planning. When using direct production in long-term planning. If the indicator “Make-to-order and project planning” is not set. Only the planned order headers are transferred (copied). Long-term and Operative Planning Using a figure. Whether firm planned orders from operative MRP should be copied to the long-term planning (firm planned orders can be changed) and whether firm purchase requisitions for operative planning (these cannot be changed) should be taken into account in the simulative planning area. the temporary end of the transfer period is the latest order end date of the operative planned order. only the header order can be changed and not the subordinate orders in the collective order. All rights reserved. Make-to-order planning presupposes that sales orders with a requirements type for make-to-order planning are taken into account. • • • • • • Executing and Evaluating Long-term Planning Transfer Firm Planned Orders All firmed planned orders are always transferred. 2004/Q3 . whether during planning it should create a collective order for materials that are to be produced directly. Any changes to components or capacity requirements that exist in operative planning are not copied. Use the following numerical example: The transfer period is to be from June to September.

100 pieces Simulative version 20 (assigned to scenario 020. Long-Term Planning: Start Data Long-Term Planning: Resulting Data These are repetitive in nature and summarize the opportunities for transferring data to long-term planning and transferring resulting data to operative planning. 130 pieces Version 20 remains unchanged and inactive. 110 pieces Sep. Result of setting version 20 to active in the planned independent requirement maintenance: The master production schedule is the sum of all active planned independent requirements. 100 pieces Sep. 110 pieces Sep. All rights reserved. and is now the result of: Version 00 + version 20 (both active): July 180 pieces Aug. 130 pieces Result of activating the scenario: Version 00 is replaced by the figures from version 20 within the transfer period: Version 00 (operative production schedule. you must define a transfer period (in contrast to transferring firm planned orders to long-term planning). active): July 80 pieces Aug. not active): July 80 pieces Aug. active): July 100 pieces Aug. 230 pieces Transfer Firm Planned Orders (1) Transfer Firm Planned Orders (2) When you transfer firm planned orders (from long-term planning to operative planning). 210 pieces Sep.SCM240 Lesson: Long-term planning requirements Version 00 (current operative production schedule. 633 . 2004/Q3 © 2003 SAP AG.

basic dates and order quantity) are copied to the simulative area. purchase orders. and QM inspection lots.) Only (simulative) planned orders are created in long-term planning. schedule lines. (You control the transfer of firm planned orders in the initial screen of the planning run. The indicator “Include sales orders” establishes that sales orders. Once the planning scenario is released. planning file entries for all materials of the plants that are assigned to the planning scenario are created in the background. You can execute long-term planning as total planning. contracts. The indicator “Include firm receipts” refers to the inclusion of production orders. All rights reserved. external requirements and fixed receipts are included in the long-term planning along with the assigned planned independent requirements. Each scenario thus has its own planning file entries for long-term planning. 2004/Q3 . single-item planning in simulative mode. single-item planning. Operative data that flows into long-term planning cannot be changed in the simulative planning area. This does not include firmed operative planned orders: The order headers for firmed planned orders (that is. reservations. transport releases. 634 © 2003 SAP AG. or using the planning table from repetitive manufacturing. and deliveries are taken into account. Depending on the settings in the scenario.Unit 12: Simulating the Production Plan SCM240 Figure 195: Executing Long-Term Planning A planning scenario must be released before long-term MRP can executed. scheduling agreements.

110 pieces Sep. and is now the result of: 2004/Q3 © 2003 SAP AG. Use the following numerical example: The transfer period is to be from June to September. Result of setting version 20 to active in the planned independent requirement maintenance: The master production schedule is the sum of all active planned independent requirements. active): July 100 pieces Aug. which means that a transfer period cannot be defined. 130 pieces Version 20 remains unchanged and inactive. However it is good reference material for the students. Only the planned order headers are transferred (copied). All rights reserved. Any changes to components or capacity requirements that exist in operative planning are not copied. Version 00 (current operative production schedule. Once activated. 110 pieces Sep. Transfer Firm Planned Orders All firmed planned orders are always transferred.SCM240 Lesson: Long-term planning requirements After evaluating and checking the simulative planning results. Integration with operational planning data Note: Many of the slides have been made “print only“. Long-term and Operative Planning Using a figure. the planned independent requirements version is effective for operative planning. the planned independent requirements version can be activated in the planning scenario and can be given a new version number. 635 . active): July 80 pieces Aug. 100 pieces Sep. explain the difference between activating a planned independent requirement from the scenario and activating the corresponding planned independent requirements in the planned independent requirement maintenance.”” This is due to the overlap between Long term planning and many of the other sections previously covered. 130 pieces Result of activating the scenario: Version 00 is replaced by the figures from version 20 within the transfer period: Version 00 (operative production schedule. not active): July 80 pieces Aug. the temporary end of the transfer period is the latest order end date of the operative planned order. 100 pieces Simulative version 20 (assigned to scenario 020. You can also transfer simulative planned orders from long-term planning to operative planning.

All rights reserved. 2004/Q3 . Long-Term Planning: Start Data Long-Term Planning: Resulting Data These are repetitive in nature and summarize the opportunities for transferring data to long-term planning and transferring resulting data to operative planning. 210 pieces Sep. firmed planned orders Firmed purchase requisitions Production orders Purchase orders 636 © 2003 SAP AG.Unit 12: Simulating the Production Plan SCM240 Version 00 + version 20 (both active): July 180 pieces Aug. you must define a transfer period (in contrast to transferring firm planned orders to long-term planning). Figure 196: Long-Term Planning: Start Data The following can flow into the simulative planning area: • • • • • • Active or inactive planned independent requirements version Sales orders Operative. 230 pieces Transfer Firm Planned Orders (1) Transfer Firm Planned Orders (2) When you transfer firm planned orders (from long-term planning to operative planning).

Figure 198: Transfer Firm Planned Orders 2004/Q3 © 2003 SAP AG.SCM240 Lesson: Long-term planning requirements Figure 197: Long-Term Planning: Resulting Data The following can be copied from the simulative planning area to the operative planning area: • • Activated planned independent requirements versions Firmed simulative planned orders for materials procured externally even as purchase requisitions or schedule lines. 637 . All rights reserved.

Figure 199: Planning Levels for Capacity Data Capacity data can be calculated on different levels: • • • In the operative MRP at detailed scheduling level In the long-term planning at detailed scheduling level. All rights reserved. During this process.Unit 12: Simulating the Production Plan SCM240 You can copy firmed planned orders from operative MRP to the simulative planning area. When copying a firmed planned order from operative planning. Changes to components of planned orders that have been made in operative planning are not copied. The order finish date of the planned order that was selected and copied last is saved as the temporary end of the copying period for each material. With simulative planning. 2004/Q3 . whereby the data is separate for each scenario In the sales and operations planning at rough-cut planning level 638 © 2003 SAP AG. all firmed and unfirmed simulative planned orders in the simulative planning area with order finish dates within the copying period are deleted. The copying period is determined by the firmed operative planned order that is furthest in the future. the planned order components are created again according to the BOM selected in the simulative planning run. These are also firmed in long-term planning but can be changed manually there. all firmed planned orders are selected for each material of a BOM structure and are adopted (copied to the simulative planning area). Only the planned order headers are copied during the copying process. The firmed planned orders are copied per material by the simulative planning run in the simulative planning area.

A planning run with the scheduling indicator 2 “lead-time scheduling and capacity planning” is a prerequisite for the capacity check. the planning result of single-item planning. 2004/Q3 © 2003 SAP AG. or from the stock/requirements list. the available capacity. Figure 200: Capacity Check with Overload Display The same functions for capacity planning are available in long-term planning as in material requirements planning. In the capacity check of the stock/requirements list. 639 .SCM240 Lesson: Long-term planning requirements The capacity evaluations for operative MRP and long-term planning are executed separately. Capacity planning can be called from planned order processing. The planning run with scheduling indicator “1” (basic-date scheduling) does not reduce capacity requirements. The overload function calculates the maximum load for each work center and capacity category and the overload is highlighted in color. the total capacity requirements independent of materials and the capacity requirements of this material are displayed in periods for each work center and capacity category. Overload situations are highlighted in color. All rights reserved. Only capacity requirements which arise from production orders considered as final receipts in long-term planning are included in the capacity evaluation of the corresponding scenario.

this procedure is the equivalent of an addition to the plan up to now. A planned independent requirements version can be activated in two different ways: By setting the active indicator of the planned independent requirements version: The operative planning is the total of all active planned independent requirements versions. All rights reserved. During the activation. 640 © 2003 SAP AG.Unit 12: Simulating the Production Plan SCM240 Figure 201: Long-Term and Operative Planning The operative demand program results from the total of all active planned independent requirement versions. 2004/Q3 . By “activating” in the scenario: The source planned independent requirements version is copied to the target planned independent requirements version. if an already active version has been selected as the destination version for the transfer and the periods overlap in which the source and destination versions of planned independent requirements exist. the independent requirements of the destination version in the overlapping periods are overwritten by the independent requirements of the source version. Therefore.

If operative planned orders were converted into production orders before the transfer. You explicitly define the start and finish of the copying period for this process.SCM240 Lesson: Long-term planning requirements Figure 202: Transfer Firm Planned Orders (1) Following the simulation. In the operative planning area. the copying function is started using the function “Edit → Copy simulative planned orders”. This type of copying is carried out for a material in the transaction “interactive single-item planning” of operative MRP. all firmed and unfirmed planned orders. you can create purchase requisitions or schedule lines for materials procured externally. In the operative area. 641 . so that only the copied planned orders in the operative planning remain in this period. All rights reserved. All firmed planned orders with order finish dates within the selected period are copied from the simulative planning area to the operative planning area. with an order finish date within the copying period are deleted. 2004/Q3 © 2003 SAP AG. In the subsequent screen of the planning result. You can avoid unnecessary double procurement if you convert the planned orders into production orders before the start of the simulative planning and have defined in the planning scenario that all firmed receipts are taken into account in the long-term planning. you can adopt firmed simulative planned orders of a simulative planning area in the operative planning (copied to the operative planning area). the production orders still remain after the transfer of the planning results and the copied firm planned orders are added to them which would therefore result in doubling the replenishment.

After the transfer. This is achieved by maintaining the scheduling agreement item as MRP-relevant before the long-term planning run in the simulative area. you can adopt firmed simulative planned orders of a simulative planning area in the operative planning. Once you save the planning result. and schedule lines are displayed in the planning result. 2004/Q3 . and the purchase requisitions and schedule lines that were created during the transfer are used in the operative planning. you can create firmed purchase requisitions or firmed schedule lines for simulative planned orders of the order type “NB”. The creation of schedule lines requires that the scheduling agreement item is already entered in the firmed simulative planned order before the transfer. schedule lines in the opening period or purchase requisitions in the opening period).Unit 12: Simulating the Production Plan SCM240 Figure 203: Transfer Firm Planned Orders (2) Following the simulation. if you have defined in the planning scenario beforehand that all firmed receipts are taken into account in the long-term planning. For materials procured externally during the transfer into the operative area. If there were non-firmed purchase requisitions and schedule lines in the copying period in operative planning. To do this. they are still used after the transfer of the planning result. All rights reserved. you enter the respective creation indicator in the initial screen of interactive single-item planning in the MRP menu in the fields “Create purchase requisition” and “Schedule lines” (purchase requisitions or schedule lines. the firmed planned orders. these are deleted during the transfer of the planning result. purchase requisitions. 642 © 2003 SAP AG. You can avoid unnecessary double purchase requisitions and schedule lines. If the purchase requisitions and schedule lines were firmed in the operative planning. the transfer to operative planning is closed.

Firm planned orders: Set the manual firming date to the last day of the current month + 11. 2004/Q3 © 2003 SAP AG.SCM240 Lesson: Long-term planning requirements Demonstration: Transfer Firm Planned Orders Purpose To demonstrate the transfer of firm planned orders System Data System: Client: User ID: Password: Set up instructions: 1. Display and explain the transaction for transferring firm planned orders to operative planning (transaction “Single-item. Interactive” for material R-F1##. Call stock/requirements list for material R-F1## that is to be planned in scenario ##. Edit → Copy Simulative LT planned orders). Display the result: Firmed planned orders were copied from long-term planning to the operative planning. Complete the exercise first! The Exercise steps must be completed before you can proceed with following demo steps. All rights reserved. 643 . source scenario 0##. purchase requisitions are generated in the opening period for the planned order depending on the requisition creation indicator in the ‘interactive single-item planning’. interval to copy = 1st of current month +6 to last day of current month + 11. 2. Execute function: Material R-F1##. 3. 4.

All rights reserved. 2004/Q3 .Unit 12: Simulating the Production Plan SCM240 644 © 2003 SAP AG.

You will need to create simulated demand to proceed with planning a specific “what-if” scenario. a planning scenario will be created. and a capacity consideration should also be made. You will then run long term planning and evaluate the results. Create a planning scenario in order to simulate the planning of the inactive planned independent requirements (version ##). Create inactive planned independent requirements for material R-F1## in plant 1000 (version ##) using data from the table below. Set the planning period to monthly. Assign this scenario to plant 1000. Task: Create and evaluate a “what-if” planning scenario. 1. Use the long-term planning menu. 645 . you will be able to: • Create a scenario for long-term planning • Execute and evaluate a long-term planning run Business Example A future demand program needs to be simulated for pump R-F1## in plant 1000.SCM240 Lesson: Long-term planning requirements 545 Exercise 21: MRP Run Exercise Duration: 25 Minutes Exercise Objectives After completing this exercise. All rights reserved. Once the demand is entered. Current month + 7 350 Current month + 8 350 Current month + 9 350 Current month + 10 350 Current month + 11 300 Current month + 12 450 Hint: Make sure that the active indicator is not set. 2. Dependent requirements for consumption-based materials should also be calculated in order to check the existing framework agreement with the vendor. Release and save the scenario. Number of the scenario: 0## (## = group number) Text of scenario: Long-term scenario ## Use the settings indicated below: Continued on next page 2004/Q3 © 2003 SAP AG.

Later.Unit 12: Simulating the Production Plan SCM240 Planning Period (From) Planning Period (To) Opening stock Dep. because you will use it to constantly monitor the planning progress. 2004/Q3 . Continued on next page 646 © 2003 SAP AG. plant 1000. rqmts for reorder point Consider sales orders Switch off planning time fence Use direct production Use make. Hint: It is a good idea to call the stock/requirements list for the scenario in a separate session. Does the system display the planned independent requirements for the version ## that flow into scenario 0## in the list? _________ Do the planned independent requirements that flow into scenario 0## appear in the operative stock/requirements list that you call from the MRP menu? _________ Why (not)? ________________________________________ Execute long-term planning for material R-F1## in plant 1000 and scenario 0##. 4. and scenario 0##.Safety Stock Select Do not select Select Do not select Do not select Do not select Do not select Do not select Review the stock/requirements situation of material number R-F1##. Field Processing Key Create MRP list Value NETCH MRP List 6. Current month +7 Last day of month + 12 1 . All rights reserved. 5. which is relevant for the production of material R-F1##. therefore the capacity requirements should be created in long-term planning. you want to look at the capacity situation in scenario 0##.to-order and project planning Include firm recepts Include firm purchase requisitions Include firm planned orders 3.

In the dialog screen that follows. Are the LSF requirements that you created in long-term planning displayed? _____________ In which planned independent requirement version are these requirements Display the element from the list in order to answer the question? _________ 2004/Q3 © 2003 SAP AG. select planned independent requirement version ## and as the target version enter the planned independent requirement version number 00. Activate the planned independent requirements version ##. you Choose Activate Independent Requirements. the system suggests the period that you had entered as the planning period in the scenario. What is the MRP type of the material and what significance does this have? ____________________________________________ Did long-term planning create dependent requirements? ________ 9. These requirements will now be available for operative planning. Delete the indicator for Test mode. For the transfer period. 647 . Use the transaction Change planning scenario to activate the planned independent requirements. Starting from the long-term planning menu. 10. Call the operative stock/requirements list. select the indicator Create list and then the button Activate. All rights reserved.Lead time scheduling Select Did the system create procurement elements to cover your planned independent requirements? ____________ Switch to material R-T3## in the stock/requirements list for scenario 0##. 7.Adapt Planning Data 2 . 8. Value 1 .SCM240 Lesson: Long-term planning requirements Field Planning Mode Scheduling Also plan unchanged components.

Create a planning scenario in order to simulate the planning of the inactive planned independent requirements (version ##). Use the long-term planning menu. You will need to create simulated demand to proceed with planning a specific “what-if” scenario. 1. Create inactive planned independent requirements for material R-F1## in plant 1000 (version ##) using data from the table below. Current month + 7 350 Current month + 8 350 Current month + 9 350 Current month + 10 350 Current month + 11 300 Current month + 12 450 Hint: Make sure that the active indicator is not set. On the Plnd. All rights reserved. Hint: Make sure that the active indicator is not set. Save the planned independent requirements. 2. Number of the scenario: 0## (## = group number) Continued on next page 648 © 2003 SAP AG. Set the planning period to monthly. a planning scenario will be created. a) Menu path: Logistics → Production → Production Planning → Long-Term Planning → Planned Independent Requirements → Create Enter data on the initial screen as follows: Material Plant Version Planning Period c) R-F1## 1000 ## M b) Select enter. You will then run long term planning and evaluate the results.Ind Reqmts Create: Planning table enter the monthly projections per the table. Assign this scenario to plant 1000. 2004/Q3 . Once the demand is entered. Release and save the scenario.Unit 12: Simulating the Production Plan SCM240 Solution 21: MRP Run Task: Create and evaluate a “what-if” planning scenario.

Safety Stock Select Do not select Select Do not select Do not select Do not select Do not select Do not select Menu path: Logistics → Production → Production Planning → Long-Term Planning → Planning Scenario → Create Enter the scenario and description. . Confirm your entries with Enter and make the following settings: Enter the settings required above. .to-order and project planning Include firm recepts Include firm purchase requisitions Include firm planned orders a) b) c) d) Current month +7 Last day of month + 12 1 . Assign plant 1000 to the scenario. Confirm that you wish to release the scenario and create the planning file entries immediately. e) Assign your Planned independent requirements (version ##)to the scenario by choosing Planned Independent Requirements entry . followed by new f) Release and save the scenario using . by choosing plants followed by new entry . Make the respective entry and Confirm. All rights reserved. rqmts for reorder point Consider sales orders Switch off planning time fence Use direct production Use make. Make the respective entry and Confirm. Continued on next page 2004/Q3 © 2003 SAP AG. 649 .SCM240 Lesson: Long-term planning requirements Text of scenario: Long-term scenario ## Use the settings indicated below: Planning Period (From) Planning Period (To) Opening stock Dep.

not active.Adapt Planning Data 2 .Unit 12: Simulating the Production Plan SCM240 3. you want to look at the capacity situation in scenario 0##. Field Processing Key Create MRP list Planning Mode Scheduling Also plan unchanged components. a) Value NETCH MRP List 1 . Hint: It is a good idea to call the stock/requirements list for the scenario in a separate session. 5. plant 1000. which is relevant for the production of material R-F1##. because you will use it to constantly monitor the planning progress. however. Later. Execute long-term planning for material R-F1## in plant 1000 and scenario 0##. Does the system display the planned independent requirements for the version ## that flow into scenario 0## in the list? _________ a) Planned independent requirements of version ## displayed: Yes Do the planned independent requirements that flow into scenario 0## appear in the operative stock/requirements list that you call from the MRP menu? _________ Why (not)? ________________________________________ a) Independent requirements also in operative stock/requirements list: No Reason: Only active planned independent requirement versions are taken into account and displayed in operative planning. Review the stock/requirements situation of material number R-F1##. All rights reserved.Lead time scheduling Select SAP ERP menu path: Logistics → Production → Production Planning → Long-Term Planning → Long-Term Planning→ Single-Item. Back twice to return to the main menu. Multi-Level Planning (MS02) Select Select Enter twice to execute the run. and scenario 0##. therefore the capacity requirements should be created in long-term planning. Continued on next page b) c) 650 © 2003 SAP AG. 6. a) Menu path: Logistics → Production→ Production Planning → Long-Term planning → Evaluations → Stock/Requirements List 4. 2004/Q3 . The independent requirement version ## is.

Menu path: Logistics → Production→ Production Planning → Long-Term planning → Evaluations → Stock/Requirements List b) Procurement elements created: Yes 8. In the dialog screen that follows. 651 . select planned independent requirement version ## and as the target version enter the planned independent requirement version number 00. Starting from the long-term planning menu. Activate the planned independent requirements version ##. for this material. scenario ##. you Choose Activate Independent Requirements. What is the MRP type of the material and what significance does this have? ____________________________________________ Did long-term planning create dependent requirements? ________ a) MRP type of material R-T3## can be seen directly in the header data of the S/R List: VB: Reorder point planning Dependent requirements created: Yes Dependent requirements were created. All rights reserved. These requirements will now be available for operative planning. because in the planning scenario. Switch to material R-T3## in the stock/requirements list for scenario 0##. Did the system create procurement elements to cover your planned independent requirements? ____________ a) Review the stock/requirements list for material R-F1##. Continued on next page 2004/Q3 © 2003 SAP AG. Use the transaction Change planning scenario to activate the planned independent requirements. For the transfer period. 9. we selected the indicator to create dependent requirements for reorder point materials.SCM240 Lesson: Long-term planning requirements 7.

Delete the indicator for Test mode. All rights reserved. Select Activate Independent Requirements . 2004/Q3 .Unit 12: Simulating the Production Plan SCM240 the system suggests the period that you had entered as the planning period in the scenario. Call the operative stock/requirements list. Are the LSF requirements that you created in long-term planning displayed? _____________ In which planned independent requirement version are these requirements Display the element from the list in order to answer the question? _________ a) LSF requirements displayed: Yes Planned independent requirements version: 00 652 © 2003 SAP AG. Check box . a) b) c) Menu path: Logistics → Production → Production Planning → Long-term planning → Planning scenario → Change (MS32) Access your planning scenario 0##.Version Target Version From To Test Mode Create List Select 00 Month+7 Month+12 (last day) Do not select Do not select 10. d) Enter data per the table below and select Activate. select the indicator Create list and then the button Activate.

653 . All rights reserved.SCM240 Lesson: Long-term planning requirements Lesson Summary You should now be able to: • Discuss the usage of long-term planning • Execute long-term planning 2004/Q3 © 2003 SAP AG.

2004/Q3 .Unit Summary SCM240 Unit Summary You should now be able to: • Discuss the usage of long-term planning • Execute long-term planning 654 © 2003 SAP AG. All rights reserved.

SCM240 Test Your Knowledge 555 Test Your Knowledge 1. sales orders. The principle of long-term planning is to simulate different versions of the demand program. 655 . Identify the true statements: Choose the correct answer(s). All rights reserved. firm purchase requisitions and firm planned orders) can be changed in the simulative planning area. □ □ True False 2004/Q3 © 2003 SAP AG. Operative data that is used in the long-term plan (ex. Determine whether this statement is true or false. □ □ □ □ □ A B C D E Sales orders must be included in the simulated plan. □ □ 4. The PTF can be deactivated for the long term plan. Using the current stock level is optional Planned Independent requirements can be transferred to the operative plan 3. Dependant requirements for Kanban and bulk materials can be created in the planning scenario. Where are the settings for long-term planning defined? 2. Determine whether this statement is true or false. True False On which level are the capacity data calculated while executing long term planning? 5. Production orders.

Identify the true statements: Answer: B. 656 © 2003 SAP AG. Where are the settings for long-term planning defined? Answer: Settings are made in the planning scenario. All rights reserved. firm purchase requisitions and firm planned orders) can be changed in the simulative planning area. 2. D. 4. Production orders. 2004/Q3 . E Sales orders do not have to be included. Answer: False Only firmed planned orders can be changed in the simulation.Test Your Knowledge SCM240 556 Answers 1. 5. It can optimize the demand program. Operative data that is used in the long-term plan (ex. The principle of long-term planning is to simulate different versions of the demand program. 3. C. On which level are the capacity data calculated while executing long term planning? Answer: Capacity data is calculated on detailed scheduling level while executing long term planning. Setting in the planning scenario. sales orders. Answer: True The principle of long-term planning is to simulate different versions of the demand program.

SCM240 Course Summary Course Summary You should now 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 2004/Q3 © 2003 SAP AG. 657 . All rights reserved.

All rights reserved. 2004/Q3 .Course Summary SCM240 658 © 2003 SAP AG.

397 Basic scheduling. 127. 34 Planning without final assembly. 196 ATP check. 587 M Material master record. 419 requirement splitting. 399 I Item category stock transfer. 42 P Pegged requirements. 79 Reduction. 291 E Exception messages. 150 Planning run. 126 R Receipt days’ supply. 116 MRP list. 357 Consumption. 395 Procurement type. 493 MPS items. 263 MRP elements. 437 D Dynamic safety stock. 218 Planning segments. 133 BOM explosion. 193 Control parameters.Index A Assembly level planning. 401. 218 Planning file. 414 lot size. 487 L Lead-time scheduling. 284 C Capacity leveling. 433 Low-level code. 481 quota arrangement usage. 400 Bill of material. All rights reserved. 197 Planned independent requirements. 212 Procurement proposal. 487 quota-allocated quantity. 196 maximum quantity. 491 Lot-size. 441 BOM Explosion number. 146 O Order Report. 148 Planning horizon. 357 Q quota arrangement. 490 2004/Q3 © 2003 SAP AG. 659 . 261 MPS schedule. 263 Forward scheduling. 588 Available to Promise ATP. 43 Phantom assembly. 421 BOM explosion date. 51 B Backward scheduling. 214 Firming period. 446 N Net requirements calculation. 69 F Final assembly. 263 Company-code clearing account. 396 Production version. 352. 47 MRP group. 483 quota base quantity.

353 Stock transport order. 504 source list requirement. 345 660 © 2003 SAP AG. 286 Routing. 196 Selection rules. 465 source list. 441 S Safety stock. All rights reserved. 291 Safety time. 345. 309 Sales order. 352 Stock in transit. 357 Stock transport scheduling agreement. 357 Rescheduling horizon. 506 Special procurement key. 357 Stock transfer. 357 Supplying plant.Index SCM240 Requirements class. 352 T Transfer posting. 45 source determination. 244 Requirements/stock overview. 2004/Q3 . 353.

661 . please record them in the appropriate place in the course evaluation. All rights reserved. 2004/Q3 © 2003 SAP AG. If you have any corrections or suggestions for improvement.Feedback SAP AG has made every effort in the preparation of this course to ensure the accuracy and completeness of the materials.

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