IS365SAPMaterialRequirementsPlanningProcess

IS365SAPMaterialRequirementsPlanningProcess -...

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Slide 1 The Material Requirements  Planning Process
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Slide 2 What is MRP? n MRP answers the following questions: n What materials are required? n How many of the materials are required? n When are the materials required?
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Slide 3 MRP Problems (1) n Too much inventory n Materials in stock that we cannot sell n Raw materials that we no longer need in the  manufacturing process n Materials that have lost significant value n Expired materials
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Slide 4 MRP Problems (2) n Too little inventory n Out of stock conditions n Backorder conditions
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Slide 5 Cisco Case n Purchased extra parts n Did not accurately estimate demand n Did not forecast demand drop-off n Cisco wrote off $2.5 billion in inventory in  2001
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Slide 6 MRP Data Dependencies n Materials (Material masters) n Vendors (for acquisition) n Production (for estimates) n Warehouse (to get raw materials and store  finished goods)
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Slide 7 Production Planning Process  (Overview) Demand Management Forecasting Planning SIS CO/PA MPS MRP Manufacturing Execution Order Settlement Procurement Process Strategic Planning Detailed Planning
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Slide 8 What Causes an MRP n Sales and operations planning estimates  materials (finished goods) requirements n Sales quotation / orders n Demand management calculates the  requirement raw materials to produce the  finished goods n Final  production proposals  are generated  which trigger prodcution
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Slide 9 MRP Master Data n Bill of material used to determine raw  materials n Product routings used to estimate production  time n Material Master
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Slide 10 MRP (SAP) n Remember that we have four MRP views of a  material n Discussed in the next screens n MRP is defined at the plant level as expected n MRP is relevant to both discrete, repetitive,  and process manufacturing
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Slide 11 A Few Key Terms n PIR – Planned Independent Requirements n Forecasts based on actual and forecasted  customer sales n CIR – Customer Independent Requirements n Forecasts based on actual customer sales
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Slide 12 MRP vs MPS n Master Production Scheduling n One level of a material’s BOM is used to calculate  material requirements n It’s a high level analysis n Material Requirements Planning n Run after MPS to determine detailed  requirements n It’s time phased (recommendations to  reschedule open orders) n Considers dependent requirements
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This note was uploaded on 01/04/2012 for the course IS 365 taught by Professor Staff during the Fall '11 term at Nevada State College.

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IS365SAPMaterialRequirementsPlanningProcess -...

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