MRP Know How

1. MRP Know How Prepared by: Nripen Banik

2. HISTORY • 1970s: MRP（Material Resource Planning） • 1980s: MRPⅡ（Manufacturing Resource Planning） • 1990s: ERP（Enterprise Resource Planning） • 2000s: E-Business (or ERP–II) Prepared by: Nripen Banik

3. HISTORY Prepared by: Nripen Banik

4. 70s: MRP • Inventory Management • Purchasing Management • MRP HISTORY -MRP Prepared by: Nripen Banik

5. 80s: MRP-II 70s: MRP • Inventory Management • Purchasing Management • MRP • Manufacturing & Sales Plan • Sales & Distribution • Master Production Schedule • Capacity Plan • Production Management HISTORY MRP-II Master Production Schedule (MPS): MPS is designed to meet the market demand (both the firm orders and forecasted demand) in future in the taken planning horizon. MPS mainly depicts the detailed delivery schedule of the end products. However, orders for replacement components can also be included in it to make it more comprehensive. Prepared by: Nripen Banik

6. 90s: ERP 80s: MRP-II 70s: MRP • Inventory Management • Purchasing Management • MRP • Manufacturing & Sales Plan • Sales & Distribution • Master Production Schedule • Capacity Plan • Production Management • Financing Management • Quality Management • Designing Management • Human Resource Management • Manufacturing Facilities Management HISTORY - ERP Prepared by: Nripen Banik

7. Material Requirements Planning - Defined • Materials requirements planning (MRP) • the logic for determining the number of parts, components, and materials needed to produce a product. • MRP • provides time scheduling information specifying when each of the materials, parts, and components should be ordered or produced. Prepared by: Nripen Banik

8. MRP Objectives • Reduction in Inventory Cost: By providing the right quantity of material at right time to meet master production schedule, MRP tries to avoid the cost of excessive inventory. • Meeting Delivery Schedule: By minimizing the delays in materials procurement, production decision making, MRP helps avoid delays in production thereby meeting delivery schedules more consistently. • Improved Performance: By stream lining the production operations and minimizing the unplanned interruptions, MRP focuses on having all components available at right place in right quantity at right time. Prepared by: Nripen Banik

9. MRP Group • The MRP group contains all the materials from the point of view of MRP for assigning special control parameters for the total planning run. • SPRO Path : IMG -> Production - > MRP -> MRP Groups - > Carry Out Overall Maintenance of MRP Groups. • Create your own MRP Group Prepared by: Nripen Banik

10. MRP Group • Maintain Data for Direct Procurement Prepared by: Nripen Banik

11. MRP Group • Maintain Data for Scheduling/Doc Type Define MRP Group for Each Material Type…. Maintain MRP Group in MRP1 view in Material Master Prepared by: Nripen Banik

12. MRP Type • Key that determines whether and how the material is planned. • Required in MRP1 view of Material Master. • SPRO Path : IMG -> Production - > MRP -> Master Data -> Check MRP Types • Relevant : RO and VB • Try with VB… Prepared by: Nripen Banik

13. Reorder Point • If the stock falls below this quantity, the system flags the material for MRP. • Enter Reorder Point as 2. Prepared by: Nripen Banik

14. MRP Controller • Materials Planner • Required in MRP1 view of Material Master. • SPRO Path : IMG -> Production - > MRP -> Master Data -> Define MRP Controllers • Enter Plant and create a MRP Controller (RMP). Prepared by: Nripen Banik

15. Lot Size • Use HB as Lot Size • With HB Maximum Stock Level has to be defined. • Maximum Stock Level is the Quantity of the material in this plant that may not be exceeded. • Enter 5 as Maximum Stock Level. Prepared by: Nripen Banik

16. MRP2 View • Procurement Type: Indicator that defines how the material is procured. The following procurements types are possible: • The material is produced in-house. • The material is procured externally. • The material can be both produced in-house and procured externally. • Choose F as the Procurement Type • Planned Delivery Time is the Number of calendar days needed to obtain the material or service if it is procured externally. Prepared by: Nripen Banik

17. Few More Settings… • SPRO Path : IMG -> Production - > MRP -> Plant Parameters -> Carry Out Overall Maintenance of Plant Parameters • Maintain Data for Direct Procurement for your plant. Prepared by: Nripen Banik

18. Few More Settings… • MRP Area • SPRO Path : IMG -> Production - > MRP -> Master Data -> MRP Areas -> Activate MRP for MRP Areas • Then Define MRP Areas with MRP Area Type as 01 and link it with the Plant. Prepared by: Nripen Banik

19. Time to run MRP… MD02 Note the Required quantity as 5 as the Maximum Stock allowed is 5 and Initial Stock is zero. Prepared by: Nripen Banik

20. Time to run MRP with some stock… • Upload Stock through MB1C for the material which should be below the reorder point (Qty = 1) • Re-run MRP … MD02 • Required Quantity should be 4 • Maximum Allowed (5) minus Stock (1) • Carry out the same process for a new material. Prepared by: Nripen Banik

21. Q & A Q U E S T I O N S A N S W E R S Thank You! Prepared by: Nripen Banik