SAP MM

By Mr. Sudhakar Reddy

Prepared By Srinivas Kosana

[MATERIAL REQUIREMENT PLANNING]

[IMG Settings, Test Scenarios]
 MRP (MATERIAL REQUIREMENT PLANNING)
MRP: It ensures material available or not, If not available then It gives procurement
proposal or production proposal.

MRP

MPS MRP CBP

(Master Production
Schedule)
(It is used for Inhouse Prod.
material, i.e., for fin or Semi Fin)
(Material Requirment
Planning)
(It is used for both inhouse and
external material procurement)
(Consumption Based
Planning)
(It is used for external pro-
cured mat, i.e., raw,spare
and trading material)

Re-order Point Forecast based Time phrase Planning

Planning Planning

SPRO MM Consumption Based Planning Plant Parameters

Carryout overall materials of Plant Parameters

Click Create button

Enter Plant : TSJU
Click Create
Click Maintain
Enter above plant
Click Maintain (T Code - OMI8)
Click No. Ranges
Click Planned Orders

** Through MRP Run, Planned orders will be created and later for external material
planned orders converts into PR and for In-house production materials planned orders
converts into production orders.

Plant N. Range Pl Orders Simulative Planned Orders

TSJU 01 01
 Click Save
Back
Click Purchase Requisitin

Plant Name No. Range for PR

TSJU Jamshedpur Plant Y1

**During MRP Run we can choose directly to create PR's instead of Planned orders and this
number range will be assigned to PR's.

Back
Maintain No. Ranges for Others with some number ranges.
Back to Initial Screen
Click MRP Controllers
Click New Entries

**Define MRP Controller, who is the person to run MRP programme for materials.

Back
Click Special Procurement
New Entries

Plant: TSJU
Sp. Pro. Type: 10 (Consignment)
Procurement Type: F (External Procu.)
Special Proc. Type: K (Consignment)

Click Next Entry

Plant: TSJU
Sp. Pro. Type: 20 (Sub Contracting)
Procurement Type: F (External Procu.)
Special Proc. Type: L (Sub contracting)

Click Next Entry

Plant: TSJU
Sp. Pro. Type: 30 (Stock Transfer)
Procurement Type: F (External Procu.)
Special Proc. Type: U (Stock Transfer)
Plant: TSRP (Supplying Plant)
 Click Next Entry

Plant: TSJU
Sp. Pro. Type: 40 (Inhouse production)
Procurement Type: E (Internal procurement.)
Special Proc. Type: E (Internal)

Click Next Entry

Plant: TSJU
Sp. Pro. Type: 50 (In house Production)
Procurement Type: E (Internal Production.)
Special Proc. Type: P (production from other Plant)
Plant: TSRP (Production Plant)

Back and Save

Note: In material master MRP 2 View, If no special procurement type is selected the PR
creates with Item category 'Std' and if any special procurement type is selected then PR
creates with relevant Item Category.
Back
Click 'Conversion Planned Orders -->PR'

Plant No. Of Planned Orders

TSJU 10
** No. Of Planned Orders that can be collectively to convert into PR's.
Back
Click 'Availability Dep. Requirement'

Plant Availability Check rule

TSJU 01

Back
Click 'External Procurement'
Enter Purchasing Processing Time say '1' day
**It used to calculate Item delivery date along with material master planned delivery time
in MRP PR's.
Enter Sub Purchase Group : 000
Check Scheduling Info rec/Agreement in determining the planned delivery time tab
** Through MRP programme, If delivery schedules are creating against Scheduling
agreement instead of PR's, then planned delivery time is picked from Info record to
propose delivery schedule dates.
Select Schedules Lines as '3'
Select Unknown account assignment as 'U'
** Specify which account assignment category has to pick in PR's via 'MRP' run for no
valuated materials, i.e., in OMS2 Quantity updation only selected but value updation is not
selected.
Click Save
Back to IMG
MRP Groups
Carry out overall maintenance of MRP groups
Click Create
Enter New MRP Group
(** Already control parameters are maintained at plant level in previous IMG screen, but
for some material additional control parameters are required and maintain those
additional parameters at MRP group level)
Click Create again click Create
Click Maintain and enter same MRP Group
Click Scheduling/Document Type (T Code - OPPZ)
Plant MRP Group Schd. Info Doct. Type Std Doct. Type Doct Type
PO Sub Contract Stock Transfer
TSJU 0000 ZB YB ZB

** IF PR Creates with MRP programme with Item category Std., Sub Contracting or Stock
Transfer then these document types will be selected in that PR's.
** If no document type specified here then for 'ME51N T Code' whatever default document
type is there that will be selected.

(SPRO MM Purchasing Define Default values for Document Type)

Back
Click Max-MRP Interval

Plant MRP Group Max Interval before MRP (Days)

TSJU 0000 5

Back
Click Safety Stock

** Saety stock is buffer stock and it uses in urgency case i.e., in planning lead time period.
 Plant MRP Group Safety Stock
TSJU 0000 50
** Then this percentage of safety stock is also considers as availability stock along with
existing normal stock and this total available stock is less than re order point quantity or
minimum quantity then only PR will be created.

Back
Creation Indicators

** For this MRP Group materials during MRP run programme in (MD01, MD02, MD03)
these creation indicators will picked defaulty.

Save and Back

Back to IMG
Define MRP Group for each material type
Click Enter
New Entries

Material Type Plant MRP Group

ROH TSJU 0000
** Then for this material type this MRP group will be picked defaulty in material master in
MRP 1 view but still editable.

Click Save
Back to IMG
Master Data
Check MRP Types

**It specifies how material has to planned, i.e., Re order point planning (manual/automatic)
or Forecast wise planning or MPS etc.,

Select Existing MRP type 'VB' and Click detail button and observe control Indicators
Back to IMG
Maintain Planning Calendar
Click Create PPC Planning Calendar

Plant: TSJU

Planning Calendar: 001 (Every Monday)

**Enter New Planning Calendar

Click Enter
Click 'Periods' button
 Select 'Weekdays'
Click Enter
Enter Calculation Start Date

Counter Week Day Weekday

1 Monday

Click Enter
Click Save
Back to IMG
Clikc MRP Areas
Activate MRP for MRP Areas
Select MRP area Active
Back to IMG
Define MRP Areas

** MRP Areas are 1. Plant Level, 2. Storage Location Level, 3. Sub Contracting

Click New Entries

Define Plant as MRP Area as follows

MRP Area: TSJU (Plant)

MRP Area Type: 01
Plant: TSJU

Click Next Entry

MRP Area: MRP SL1 (Storage Location)

MRP Area Type: 02
Plant: TSJU
Click Enter
Receg Storage Loc: 0001
Click Assign Storage Locations
New Entries
Storage Loc Description
0001 RM
0002 Finished
0003 Semi finished

Click Enter
 Click Next Entry

MRP Area: MRP SL2 (Storage Location)

MRP Area Type: 02
Plant: TSJU
Click Enter
Receg Stor Loc: 0004
Click Assign Storage Locations
New Entries
Storage Loc Description
0004 RM
0001 Finished
0002 Semi finished
0003 Spares

Click Next Entry

MRP Area: Vendors (Stub contractor)

MRP Area Type: 03
Plant: TSJU
Click Sub Contractor (One Entry)
Click New Entries
Enter Vendor No.
Click Save
** That means if MRP programme execute for this MRP area then in this Sub contractor
premises the Sub Contractor Stock is less than re order quantity then system proposes to
provide the raw materials to Subcontractor.

Back to IMG

MANUAL REORDER POINT PLANNING

Step 1: Create Material master select MRP1 and MRP2 views and MM views and enter
Plant, Storage Locations and MRP profile as 'VB01'.

In MRP 1 View:
Enter MRP Group : 0000 (Observe OPPZ - T Code)
** MRP Group controls document types, maximum days to run MRP programme, and
maximum limit of Planned orders to convert PR or Productions Orders.
MRP Type: VB
Re Order Point Quantity: 100 (Say)
** If current stock falls below this re order point quantity, System will create PR via MRP
run.
MRP Controller : 001
Lot Size : EX
** It is used to Calculate quantity to be procured or produced in Lot size procedure.
Lot Size procedures are 1. Statistic, 2. Periodic, 3. Optimum.
Minimum Lot Size (Optional): 50
** Through MRP PR is created for minimum lot size quantity.

In MRP 2 View:
Procurement Type : F
** Based on external purchase orders and internal purchase orders selected as allowed or
not in OMS2 T code. This procurement type defaulty comes as E or F.
If procurement type is 'F' then planned orders will be converted as PR's. If it is 'E' then
planned orders will be converted as production orders.
Special Procurement: 10 (Consignment)
If it is blank, PR created with Item category 'Standard'. If any special procurement type is
selected say K,L, and U etc., then PR will be created with the relevant item category.
Planned Del. Time: 10
Delivery date calculated automatically in PR with Planned Delivery Time + Purchase
Processing Time.
Schedule Margin Key: 000
In plant parameters i.e., in OMI8 T Code, click floats and define scheduling margin key with
new entries.
Safety Stock: Say 10
Note: After creating material master with MRP views, the MRP type, reorder point planning
quantity etc., stored in planning file and later whenever MRP run programme is executing
then system will read planning file entries and accordingly procurement proposals or
production proposals created.

Observe Stock/Requirement List:

Go to MD04
Enter Plant and material
Click Enter twice

Step 2: MRP RUN

Logistics MM Material Requirement Planning MRP
Planning Single item, Single Level (T Code MD03)
Go to MD03
 Enter material no and Plant
Processing key : NETCH
MRP Run Types are net changing Planning - NETCH
Net changing Planning in Planning Horizon - NETPL
Online Regenerative Planning - NEUPL
Create PR: 2
Delivery Schedule: 3
** For this material if scheduling agreement is there and for that scheduling agreement is
maintained at source list by selecting 'MRP' then delivery schedules will be created rather
than PR's.
Create MRP List: 1
Click Enter
** Again observe 'MD04 T Code', here PR is created via MRP run and display this PR in
ME53N.
Observe selected document type, item category and creation Indicators and MRP
controllers.
In MD04 select PR and in same line click detail button click purchase order button then it
takes to ME21N in left side Click on adopt button on PR no. and enter other details and save
and Refresh MD04 then PR no replaced by PO Number.

Step 3:
Enter GR wrt PO, Again observe MD04. (PO line item will disappears)

FORE CAST based Planning:

Step 1: Create Material master select MRP views, with forecasting view and MM views.,
Click Org Levels
Enter Plant and Storage Location
MRP Profile : VV01
Forecast Profile : P001

In MRP 1 view:
MRP Type : VV

In MRP 2 view:
Procurement Type: F
Sp. Proc. Type: 10 (Consignment)

In Forecasting view:
Forecast Mode: J
 Period Indicator: M (Month)
History: 60
Forecaste Period: 12

Click Consumption values button: Enter total consumption in previous periods

Click Enter
Go to Main Data
Click Execute Forecast Button
Select month and date
Click Enter
Click Forecasting again Click Forecasting
Back
** Observe the future months required quantity
Enter other views and Save
Observe MD04

Step 2: Run MRP in MD03 and observe in MD04.

** Here for current month forecast requirement PR is created for other future months
planned orders are created.
Convert the current month PR into PO and future month planned orders convertible into
PR or Productions orders.