MRP Procedures in SAP

This PDF document provides a comprehensive overview of SAP MRP (Material Requirements Planning) procedures, detailing different MRP types, customization settings, planning and execution examples, lot-sizing procedures, and forecast models. It covers traditional MRP, Consumption-Based Planning (CBP), Master Production Schedule (MPS), and various lot-sizing and forecasting methodologies.
Although interfaces, fundamental concepts and functionalities could be outdated due to the advancements in SAP S/4HANA, this document still holds foundational MRP concepts and procedures.
List of document content are;

  • MRP Procedure
  • MRP Type PD
  • MRP Type PP
  • MRP Type PV
  • MRP Type PW
  • MRP Type P6
  • MRP Type P7
  • MRP Type P8
  • MRP Type P9
  • MRP Type ZP
  • MRP Type Z8
  • CBP Type VB Manual Reorder Point
  • CBP Type V2 Automatic Reorder Point
  • CBP Type R1 or VS Time phased Planning
  • MRP Type RS Replenishment retail
  • Calculation of lot-sizes for the procurement proposal
  • Static lot-sizing procedure
  • Periodic lot-sizing procedure
  • Optimum lot-sizing procedure
  • Other tools in lot-sizing procedure
  • Consumption values
  • Forecast values
  • Forecast execution
  • Forecast models
  • Creation indicator
  • Planning mode
  • MRP Storage location with special procurement
  • MRP availability check per stock type
  • Planning strategy 40 and VE
  • Key property of strategy VE and procedure
  • Strategy VE example
  • Scheduling for externally procured materials
  • Scheduling for in-house manufactured materials
  • SMT Kanban Procedure (KTEC)
  • STT and SRK Kanban Procedure
  • SST – GI Year-forecast Procedure

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SAP S/4HANA PP Basics Configuration Guide

This document, prepared by Akshay Kulkarni, provides basic configuration requirements of SAP PP module starting from master data setup to order execution and integration touchpoints. Major topics covered in the document are;

  • BOM and routing master data configuration
  • Work center and resources configuration
  • Material master and MRP parameters definition
  • Production order types and integration points
  • Planning runs like MRP and scheduling
  • Production order creation, scheduling and costing
  • Confirmations, valuations and settlements

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SAP PP Master Data: Sample Key User Guide for Agriculture Industry

This training document provides an overview of production planning master data in SAP, specialized for agriculture industry. Master data forms the foundation for production planning and execution. In this guide Production Planning Master Data is explained under 5 key master data elements as below;

  • Material Master: Used to catalog all materials, provides central source for product information.
  • Bills of Material (BOM): Displays list of materials and quantities needed to produce a product.
  • Resource: Refers to work centers or machines used in production.
  • Master Recipe: Lays out production process steps and resources required.
  • Production Version: Combines BOMs and master recipes needed for production.

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By Product and Co Product in SAP PP: Concept, Configuration and Transactional Guide

In SAP, by products and co products are two types of outputs that can be produced from a manufacturing process. By products are secondary products that have a low value compared to the main product, while co products are products that have a similar or higher value than the main product. By products and co products can be handled differently in SAP depending on the business scenario and the accounting method. For example, by products can be either inventoried or deducted from the cost of production, while co products can be either allocated a percentage of the cost of production or valued separately using a sales order or a production order.

This document provides an overview of the concepts of by-products and co-products in SAP Production Planning and illustrates the configuration settings and transaction postings involved. It highlights the key differences between by-products, which have low value relative to the main product, and co-products, which have significant value.

The key sections covered are:

  • Definitions of by-products and co-products
  • By-product configuration and postings for production order creation, goods receipts, and settlement showing variance allocation to main product
  • Co-product configuration settings like co-product indicator in MRP, appointment structure, settlement profile
  • Co-product postings for production order with variance allocation based on appointment structure
  • Relevant configuration for appointment structure like source structure, settlement profile, order type assignment

In summary, the document demonstrates by-product and co-product scenarios in SAP PP through configurations and postings, focusing on variance allocation as a key differentiator.

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SAP PP-PI: Basic Overview Guide

This document is a detailed guide that provides a basic understanding of the Production Planning for Process Industries (PP-PI) in SAP, primarily designed for batch-oriented process manufacturing in industries such as chemical, pharmaceutical, food and beverage, and batch-oriented electronics.

The document explains the concept of PP-PI, which supports integrated planning of production, waste disposal, and transport activities within a plant. It also facilitates the integration of plants within the company, both vertically through an information flow and horizontally through the coordination of planning between production plants, recycling and waste disposal facilities, and production laboratories.

The guide then delves into a full-cycle scenario of SAP PP-PI, providing practical examples of creating material masters, bills of material, resources, master recipes, production versions, material allocation, standard costing, planned independent requirements, and running MRP. It also explains the process of updating stocks of raw materials, converting planned orders to process orders, checking material availability, releasing orders, issuing goods, confirming orders, receiving goods, calculating variances, doing settlements, and completing TECO.

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Batch Management in SAP: Basic Overview Guide

This document provides a simple overview of batch management within the context of material production and stock management in SAP.

A batch is defined as a subset of the total quantity of a material held in stock, representing a homogeneous unit with unique specifications. Batch Management indicator can be set manually or automatically in the material master record, and it is maintained at different levels – plant, material, and client.

The document highlights the reasons for implementing batch management, such as traceability in case of complaints and recall issues, search via expiration date, ISO certification, and the management of batch characteristics to determine which batch fits a specific requirement.

The guide also provides practical examples of creating weekly requirements, running MRP against those requirements, converting purchase requisitions to purchase orders for raw materials, and creating batch numbers during goods receipt. It further discusses the process of issuing multiple batches to a single production order, a process known as batch splitting.

Finally, the document explains how to use MB56 transaction code to trace the usage of a particular batch of raw material, providing a valuable tool for quality control and customer complaint handling.

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SAP S/4HANA PP Baseline Configuration Guide

Starting with a one page description to the terms of SAP Configuration, SAP Implementation Methodology, and SAP Landscape, this document then provides the 8 steps of baseline configuration of SAP S/4HANA Production Planning (PP) module.

The configuration steps covered in this guide are as follows:

  1. Factory Calendar: This involves creating company-specific dates such as alternate working Saturdays and holidays. The calendar ID can be used in the work center master data for calculating capacities.
  2. Shift and Shift Sequences: This step involves defining the timings for each shift and the sequence of each shift. The grouping created here can be used in the Capacities tab in the work center.
  3. Person Responsible: This refers to the person or group of people responsible for maintaining the master data in certain work centers. This key will now be available to select in the work center.
  4. Capacity Planner Group: This is a person or group of people responsible for planning certain capacities. This key will now be available to select in the capacities tab in the work center.
  5. Work Center Parameter: These are used in formulas for capacity planning, scheduling, costing, PRT management, and determining standard values using CAPP.
  6. Work Center Formula: This involves creating new formulas based on parameters defined in the previous step. The formula is used for capacity planning, scheduling, costing, etc.
  7. Standard Value Key: This key determines the meaning of the six standard values in the operation. It is used in formulas for the calculation of execution time, capacity requirements, and costs.
  8. Control Key: This specifies how an operation or a sub-operation is processed in functions such as orders, costing, or capacity planning. The control key specifies how the business functions you want to carry out with an operation and how the SAP System processes an operation.

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