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Mastering Material Requirements Planning for Effective Production Control Process

Join the training session by Jay Uhlenhoff to understand the fundamentals of Material Requirements Planning (MRP), including forecasts, MRP wizard, results, and troubleshooting. Learn to calculate raw material needs, optimize production schedules, and manage inventory effectively. Gain insights on key MRP concepts, item preparation, forecasting techniques, and MRP wizard steps.

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Mastering Material Requirements Planning for Effective Production Control Process

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  1. Material Requirements Planning 2019 Presented by: Jay Uhlenhoff

  2. Agenda Introductions and Expectations The Why and the How Forecasts (Ch. 3) MRP Wizard (Ch. 4) MRP Results (Ch. 5) Questions & Troubleshooting

  3. Agenda Introductions and Expectations The Why and the How Forecasts (Ch. 3) MRP Wizard (Ch. 4) MRP Results (Ch. 5) Questions & Troubleshooting

  4. Introduction Game – I’ll Go First Jay Uhlenhoff Consultant/Trainer/Tester since 2015 Help customers get started using MRP Only one of me – Help each other! Your future resources are in this room. Two scenario takeaways – Production of one brand, Raw materials

  5. Introduction Game – Your Turn Name, company and role Years using Orchestrated? Experience with MRP? How solid is your data?

  6. Agenda Introductions and Expectations The What and the How Forecasts (Ch. 3) MRP Wizard (Ch. 4) MRP Results (Ch. 5) Questions & Troubleshooting

  7. What Can MRP Do? Calculate the amount of raw materials or liquid needed Calculate when you need to order or produce those goods to meet demand Recommend transfers between warehouses Create POs and Inventory Transfer Req’s from recommendations

  8. Key Concepts A planning tool applying a simple equation to a very large data set. Review regularly then take action Get smarter about what to order and when Example: PdOs Item being produced is Supply Item(s) being consumed is Demand

  9. There’s a Utility for that! Item Master Utility Units of Measure Make vs Buy Planning Management Utility Most MRP fields Item Properties Tip: Lots of items to load/change?

  10. MRP Process Flow Visual

  11. Pop Quiz!

  12. MRP Item Preparation Refresher Raw Materials/Production Inputs? Min Order Qty, Order Multiple, Lead Days, Min/Max Stock Labels, Bottles/Cans, Packaging Materials? Min Order Qty, Order Multiple, Order Interval, Lead Days WIP Items? Brewhouse size – Min Order Qty and Order Multiple Fermentation – Lead Days

  13. Use the Utilities! Planning Management Utility Most MRP fields Item Properties Tip: Lots of items to load/change? Item Master Data Utility UoMs Make vs Buy

  14. Just Getting Started? First, focus attention on: Lead Days, Order Multiple, Min Order Qty, Min Stock Then work on: Production Yield by Brand/BOM, Purchase UoMs, Max Stock, Order Interval And later get to: Tolerance Days, Preferred Vendor

  15. Quick Q&A Why is it important to devote resources to this feature? Any specific goals taking this class? High-level MRP questions? Prior difficulty getting started with MRP?

  16. Agenda Introductions and Expectations The Why and the How Forecasts (Ch. 3) MRP Wizard (Ch. 4) MRP Results (Ch. 5) Questions & Troubleshooting

  17. Forecasting can be frustrating…

  18. Forecasts Extends planning beyond existing documents Creates ability to plan further out Works in tandem with current short-term sales Can assist with both production and sales Forecasts of barrelage or sales by SKU Design a scenario with a specific forecast

  19. Forecasts

  20. Forecasts Consider short and/or long-term forecast Only one forecast per scenario Data in Days, Weeks or Months Quarters? Divide by three and use Months Can be updated frequently or not at all

  21. Creating a Forecast Import an existing forecast Planning Management Utility Copy/paste into SAP Forecast feature Manual creation in Orchestrated Use SAP-generated historical sales forecast Only use as a starting point

  22. So Let’s Get To It MRP > Forecasts Utilities > Planning Management Utility > Demand Planning

  23. Agenda Introductions and Expectations The Why and the How Forecasts (Ch. 3) MRP Wizard (Ch. 4) MRP Results (Ch. 5) Questions & Troubleshooting

  24. MRP Wizard 5 steps, then Results & Recommendations Questions encouraged Compare/contrast with your new best friend

  25. Step 1: Scenario Selection Create New scenario Scenario Name is shorthand Description has more detail

  26. Step 2: Scenario Details

  27. Step 2: Scenario Details Match details to screenshot recommended Days – 4 to 12 weeks; Weeks – 4 to 12 months Items to note: Date range applies to Due Date specifically Range can be adjusted after-the-fact Can later have separate Days and Weeks scenario Simulation good option during early training (or Test DB)

  28. Step 3: Item Selection

  29. Step 3: Item Selection

  30. Step 3: Item Selection Missing items aren’t flagged for MRP Can ‘stack’ filters Items not obviously grouped > Item Properties Number of items makes a difference

  31. Item Properties Great tool for creating subsets of items Go beyond Item Groups, Process Types, etc. Larger/more complex? More likely to utilize Item Properties Setup, then Planning Mgmt Utility Examples: Subset beyond Item Group (labels, bottles) Order Interval (same time of the month) Vendor

  32. Step 4: Inventory Data Source

  33. Step 4: Inventory Data Source Company vs Warehouse Company is most common, simpler to start Recommendations for Default Warehouses Heavy use of Inv. Transfers could make difference Exclude OAK01, QC, other non-available inv. Consider removing entire locations if multiple Expand/Collapse is helpful

  34. Step 5: Documents Data Source

  35. Step 5: Time Range

  36. Step 5: Time Range Within Planning Horizon Issues with old, unclosed documents Excludes documents with due date outside range ‘Past Due Data’ column only back to Start Date Switch to down the road Include Historical Data Includes data with due dates outside range Helps identify invalid, old documents to close

  37. Step 5: Sources of Demand and Supply

  38. Step 5: Sources of Demand and Supply PdOs: Both Planned and Released included Blanket agreements must be Specific type and Approved Straightforward other than the Restrict column… Check box for a document type Then click ellipsis button to the right Select all documents to include in the scenario Likely want to ignore

  39. Step 5: Inventory Level

  40. Step 5: Inventory Level

  41. Step 5: Inventory Level Set whether you want an inventory source of demand Minimum or Maximum Recommend ordering to meet this level of inventory Required Similar to Minimum but suggests in Purchase UoM Min-Max When falling below the minimum, order to the maximum Blank Only use other sources of demand

  42. Step 5: Forecast & Recommendations

  43. And Now… The Moment You (Probably Didn’t) Wait For Click Save Scenario Click Run!!

  44. Agenda Introductions and Expectations The Why and the How Forecasts (Ch. 3) MRP Wizard (Ch. 4) MRP Results (Ch. 5) Questions & Troubleshooting

  45. Step 6: Results

  46. Step 6: Results – Features Report tab vs. Recommendations tab Expand/Collapse button Preview MRP Run Results

  47. Step 6: Results – Colors Black Text/Light Gray Background Sufficient time to fulfill order recommendations Black Text/Off-White Background Fulfilling recommendations will create more supply than demand Red Text/Dark Gray Background

  48. Step 6: Results – Pegging Info

  49. Step 6: Results – Pegging Info

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