Monitor Project Requirements for Installation Kits and Run MRP for Planned Order Creation

Objective

After completing this lesson, you will be able to monitor installation kit requirements and run MRP to generate planned orders.

MRP for Installation Kits

The Monitor Material Coverage app shows shortages for all materials in your area of responsibility. Transaction MD04 displays material demand for installation kits. After major assembly BOM explosion and before running the MRP, all demands for installation kits have shortages.

Screenshot showing the Monitor Material Coverage

Every demand is in a separate make-to-project planning segment. This separates the demand from the demands of other WBS elements.

Screenshot of manage material coverage with Stock/Requirement List Before MRP Run

MRP makes sure that all material shortages are covered by corresponding material receipts such as planned orders, purchase requisitions, and delivery schedule lines. After MRP, the shortage of the installation kit is covered by a new planned order and the shortage is no longer displayed in the Monitor Internal Requirements app.

Screenshot of manage material coverage with Stock/Requirement List After MRP Run

Note

The production planner has to reschedule network activities if a component is missing at the planned start date, if a resource is overloaded, if a predecessor activity was not completed on time, or if another constraint is violated.

MRP adjusts planned orders to changed material demand. If the material demand date or the quantity changes, then MRP adjusts the planned orders covering the demand. If the installation kit BOM is changed then MRP automatically re-explodes the planned orders as long as their components are not firmed.

Summary

This lesson covers monitoring installation kit requirements and utilizing MRP to generate planned orders effectively.

  • Use Monitor Material Coverage to identify material shortages in installation kits.
  • Execute MRP to address shortages with planned orders and material receipts.
  • Separate demands by make-to-project planning segments to avoid overlaps.
  • Reschedule network activities if constraints or shortages affect production timelines.
  • Allow MRP to adjust planned orders based on changing demand and BOM modifications.

Run MRP for Planned Order Creation

Business Example

Janice is a production planner with the low-volume A&D Company focusing on the final assembly of complex products. Janice has already created a new project from an existing template for a new end item. She has also exploded the BOM to add components. Now she has to create demand and planned orders for the installation kits.