Name: Demand Management and MRP - SAP S/4HANA Manufacturing
Uploaded: 2022-10-17
Duration: 440 s
Description: In this microlearning, we define what MRP is and how the MRP process flows. We will use PIR in a system demo, schedule MRP runs, and look at MRP master data issues and key figures.

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<div>In this microlearning, we define what MRP is and how the MRP process flows. We will use PIR in a system demo, schedule MRP runs, and look at MRP master data issues and key figures.<br></div>

Demand Management and MRP - SAP S/4HANA Manufacturing

Hi there and welcome to openSAP Microlearning about demand management. Do you want to know how planned independent requirements are used for demand forecasting? How to run MRP and evaluate MRP results? How MRP master data issues and key figures work? Then this session is right for you. I am Markus, Markus Oertelt, from SAP engineering. This microlearning covers the following: First, we define what MRP is and look at the MRP process flow. Then we go into the system for a demo. If you've asked yourself what MRP means, then this short introduction will answer this question. MRP is a system designed to plan manufacturing production. It identifies necessary materials, estimates quantities, determines when materials will be required to meet the production schedule and manages delivery timing. In summary, the goal is meeting demands and improving overall productivity. Let's take a look at this MRP process flow to bring it all together. In the first step, we look at inputs to MPS. Here, we quantify the demand. The system calculates the required quantity and date for final products needed to meet demand. The calculation is based on the sales departments' customer orders and forecasts minus expected on-hand inventory. True bill to order manufacturers will primarily focus on customer orders made to stock companies emphasize forecasts. Other companies use a combination of orders and forecast for planning future production. That information feeds the master production schedule, which is the agreement between all the stakeholders on what will be produced, such as giving capacity, inventory, and profitability. Next, we'll look at inputs to MRP. Important here is creating and managing the bill of materials for all final products and sub-assemblies. The BoM is a product structure modeling exactly what goes into each unit. It describes the order in which the material will be needed, what parts are dependent on other parts, and how many of each will be required. Lastly, we determined the supply using the BoM and the MPS for all the products, the MRP run will step-by-step calculate the assemblies, components, and materials that must be produced or purchased over the planning period. Next, it checks the needed quantities against available inventory, coordinating to identify net shortages for each component. Using predefined parameters such as lot sizing, it determines the proper make or buy quantity for each item. Finally, it calculates the proper start date for the acquisition using either the purchase or production lead time as appropriate. Alright, let's take a look at the system. The first thing we want to do is focus on demand management. And we do that forecasting by using the app Maintain Planned Independent Requirements. Here with our material, TG0011, we go in and we want to plan forecasts. We do that by clicking on Edit. Then we come here and to further app for maintaining quantities per period. And here for the month of September to November and December, we specify our forecast. We set the version active and save the whole thing. Now, we have forecasted our material. And now we want to evaluate the MRP results. Here we check our material TG0011 and click on Go. We go into the material here by Manage Materials. You click on Manage Materials and come into the material details here for the stock requirements list. And here we see our forecasts. And if we click on Start MRP Run, the MRP runs and now the MRP has run. And here we see that the purchase order was created because we need to purchase this material in order to manufacture it. Next thing I want to show you here is how to schedule the MRP run. Here in the app, you click on Create, specify the job name here. And next we define the recurrence pattern. Here, we want to have a single run. And we go to step three. Here we specify the plant 1010. In our case, the material is TG0011. I want to specify also different materials here, TG0012 and TG0099. We want All Order BOM Components changed and Regenerative Planning. So we schedule it now. Now we want to see if the job is successful. So here it's in process, now it's finished. And we can see or take a look at the log. And here we see that our job was successful, so our MRP was scheduled. Now, we want to look at the Display MRP Master Data Issues. Here, we take our material TG0011 and 12 and search for it. But we see that everything went successful. In case something has not been successful, e.g. master data issue or the bill of material explosion. Then in our case here for our two materials, everything is fine. So let's take them out and see if something else is wrong. As an example. And we see here for this one material Spray_1L_LQ, there the BOM explosion has issues. This is how you can then display MRP master data issues. Next, we want to display MRP key figures. And here, let me go on to our job for our material. And here we see the information, the settings, and the processed materials. We can also take a look at the run history. If materials have failed or if materials are planned, or if the time has elapsed. Also here on the low-level code steps, you have the information on the processing and all MRP live steps are documented here as well. With that, we come to an end. What did we learn today? In this microlearning, we defined what MRP is and how the MRP process flows, used planned independent requirements, ran MRP and evaluated the results, scheduled MRP runs, and looked at MRP master data issues and key figures. Please check out these further learnings and goodbye.