Evaluating the Results of Material Requirement Planning

Objectives

After completing this lesson, you will be able to:
  • Explain the results of an MRP Live run
  • Use evaluation tools and apps for MRP
  • Explain the basics of capacity requirements planning

MRP Results

Results of Material Requirements Planning Based on the Procurement Type

In the last lesson, you learned about the processes in MRP and how to execute an MRP Live run. In this lesson, you will learn about the results of an MRP Live run.

When the system detects a shortage, it creates planned orders. Depending on the procurement type, these planned orders are converted into different order types. Watch the following video to learn more:

Order Conversion and Automatic Switch of Scheduling Modes

Next, you will learn what happens when a planned order is converted into a production order. Independently from the scheduling mode executed during MRP, for example, 1 (determination of basic dates for planned orders), the system automatically switches to mode 2 (lead time scheduling and capacity planning) during order conversion.

This behavior depends on the fact that manufacturing needs to know the exact date/time when to start.

Conversion of Planned Orders into Production Orders

Evaluation of MRP Results

Evaluation of MRP Results Using the Stock/Requirements List

In this lesson, you will learn how to evaluate the MRP results with classic functions and with new SAP Fiori apps. Let’s start with a classic function – the stock/requirements list.

The stock/requirements list is a tool for interactive planning and evaluation. It is a dynamic list that shows the current MRP elements. Changes are visible immediately when the stock/requirements list is executed or refreshed.

Look at the structure of the stock/requirements list in the following image:

Evaluating the MRP Results. General Structure contains Variable Header, MRP Elements and Material Tree. The MRP Elements contain Planned Orders, Purchase Requisitions, Production Orders, Purchase Orders, Plant Stock, Storage Location Stock, Sales Orders, Planned Independent Requirements

The stock/requirements list contains the following elements:

  • On the left (optional) is the worklist of the MRP controller in the form of a tree.
  • The header with the material number is above the list. More information is displayed above the header details.
  • The list itself contains the individual MRP elements and the corresponding available quantities (levels of stock, requirements, and receipts).
  • User-specific settings allow you to adapt the lists to suit your requirements.

Evaluation of MRP Results Using SAP Fiori Apps

In SAP S/4HANA, you have further evaluation possibilities using SAP Fiori apps. They offer you, for example, the following functions:

  • Display of disruptions in the material flow
  • Display the impact of these issues
  • Solution proposals for decision support
  • The remaining time-to-action
  • Role-based KP-driven entries

Because SAP Fiori is browser-based, you can run it on any device. Furthermore, the apps are adoptable and customizable.

MRP Results Using SAP Fiori Apps

Monitor Material Coverage App

The Monitor Material Coverage app offers an interactive list of availability statuses for each material. If a disruption of material flow is detected, you are offered alternative procurement options.

Manage Shortage App

This app shows material availability in more detail and suggests possible solutions. For every possible solution, the system shows a solution tile with 1 or 2 stars in it. The stars indicate the viability of the solution – 2 stars solves the issue and 1 star solves the issue partially. By selecting Preview for a proposed solution, the system provides a simulated view of the solution. When determining possible solutions, the system checks various constraints, like maximum order quantities and inventory in supplying plants.

Capacity Requirements Planning Introduction

Capacity Requirements Planning

The Bike Company has finished the MRP process for their bikes. This ensures that the planning dates and quantities for all required components are calculated. But during MRP, no capacities from work centers or workers are considered. The system executed the planning based on unlimited capacities. Therefore, an additional step is necessary: Capacity Planning. Watch the following video to learn more:

Handover to Production Execution

After the capacity evaluation and adaptation of the planning results, the production planning is completed. The result of capacity requirements planning is handed over to production execution. Subsequently, you will learn more about production order types and how to execute a production order.

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