The Concept Of MRP In ERP

The Concept Of MRP in SAP

MRP in brief :

MRP is the planning tool in SAP which will look at all aspects of a material and is highly based upon the master data of the material. MRP looks at current inventory, current requirements, open purchase req/orders and so on. So if a material is required to satisfy a sales order and there is no inventory, MRP will create a planned order if the item is to be produced in house. This planned order can then be converted to a production order by the master scheduler. If the item is to be procured, then MRP will create a purchase req which the Buyer will convert to a purchase order. This is just one scenario, the system is highly configurable and will do pretty much whatever you tell based on config and master data.

Consumption based planning

- Reorder planning
- Forecast based planning
- Time phased planning

Details of re-order planning
Our motive is to maintain optimum stock level of all the material included in the resource planning. so in this user or system sets a particular quantity of stock as reorder point . Whenever stock quantity fall below this point(reorder point) mrp comes into action and generates procurement proposals according to the settings done in implementation guide

MRP run procedure

1. Create requirement or demand in MD61
2. MRP run by MD02 for a single material
3. See the result in stock requirement list in MD04.

MRP run we can carry out by

1. MD02 - single item multi level
2 .MD03 - single item single level
3 .MD01 - Total planning
4. MD04 Check MRP
5. MD05 MRP lists

For PP, you require following Master Data

1. Material master (MM01)
2. BOM (CS01)
3. Routing (CA01)
4. Work Center (CR01)
5. CK11N / CK40N - Cost Estimate

Production Cycle: -

1. PIR (Planned Independent Reqmt. - MD61)
2. MD02 - MRP Run
3. MD04 - Stock Requirement List
4. CO40 - Convert Planned Orders to Production Order OR CO01 - Create Production Order
5. Here in Production Order - Schedule Order, Release order
6. MIGO / MB1A - Goods Issue against Order (Mvmt Type 261)
7. CO11N - Production Operation confirmation
8. MIGO / MB31 - GR against Prd order
9. CO02 - Technical completion of order
10. KO88 - Order Settlement