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Unit 04: MM
Material Planning (p.152-197)
85
Computer Science
Professional
05/19/2011

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Term
What are the org levels in Material Planning?
Definition
Client --> SL
Term
All manufacturing org elements exist within what org level?
Definition
client
Term
In MP, what does a plant do/represent?
Definition
-produces goods, renders services, or makes goods avail for distribution
-a lot happens at this level
Term
What is the Material Planning Master Data?
Definition
Material Master, BOM, Routings
Term
What are the Material Planning Material Master views that must be maintained?
Definition
Material Req. Planning (MRP) and Execution (Work Scheduling) must be maintained
Term
What Material Master views/data is used by various man. planning and execution processes?
Definition
Basic Data, Accting, QM, Forecasting, Purchasing, and Classification Data
Term
Where is Basic Data stored at and applicable to?
Definition
Applicable to entire company and is stored at CLIENT LEVEL
Term
What is in the Basic Data tab in the Material Master in MP? (examples)
Definition
product description, material number, material group, unit of measure, conversion factors
Term
What is in the MRP tab in the Material Master in MP? (examples)
Definition
procurement type, MRP controller, lot size key
Term
What is in the Work Scheduling tab in the Material Master in MP? (examples)
Definition
lot size times, in-house prod. time, tolerance data
Term
What is in the Accounting tab in the Material Master in MP? (examples)
Definition
price control, prices
Term
What is MRP type specify?
Definition
specifies how a material should be planned (ie. MRP, consumption based planning, no planning)
Term
Where is a safety stock set?
Definition
In the material master for MP, under MRP 1
Term
What does the strategy group in the MP Material Master tell?
Definition
the behavior of planning independent requirements (PIRs)
Term
What takes place on the basis of the availability check group?
Definition
control of the "Available to Promise"
Term
What are examples of material types?
Definition
- Raw Materials
- Operating Supplies
- Semi-Finished Products
- Finished Products
Term
What is the most important value assigned to a material? And what does it identify?
Definition
the material type; It identifies the business processes and functions allowed.
Term
What are some things that the material type can determine?
Definition
screens, department-specific data tats maintained, how material number assigned is carried out, procurement types allowed (in house or ext), G/L accts that are updated
Term
What is a BOM? Describe
Definition
contains assemblies or components that are to be included in the prod of a material; are single-level; items of the BOM can have a BOM on their own
Term
What are BOMs used in?
Definition
MRP, production, procurement, and product costing
Term
What does a BOM consist of? What are in each?
Definition
Header: status, descr., valididty, lot size area

Items: Item category (stock, non-stock, variable size, doc item), descrs, qtys, control data
Term
What are the item categories in BOM?
Definition
stock, non-stock, variable size, text, doc, class, intra material

**must assign to EVERY component when you add of change comp of a COM
Term
What does item category in BOM influence?
Definition
processing of the component (whether or not needs a material master)
Term
Routings
Definition
contain the steps that are necessary for production; corresponding operations, sequences, and the work centers in which these operations are to be executed
Term
What can be transferred to SAP Advanced Planning and Optimization (APO) in the form of production process models (PPMs)?
Definition
Routings
Term
How is a routing defined? What does it contain?
Definition
routing group and the group counter.

contains ref material to the mat. whose production it describes

contains the time elements that are relevant for sched. operations (thus, need to make sure routing contains own base qty)
Term
What are the two courses for routings?
Definition
parallel and alternative sequences
Term
What is the MP Process/Overview?
Definition
LIS at the Top: SOP --> Sales --> Demand Mgnt --> Material Reqs --> Production Execution
Term
What is Sales and Operations Planning? How used?
Definition
SOP; planning and forecasting module within LIS area

Use SOP to help forecast future sales, develop prod plans, and perform feasibility studies
Term
What does the planning table in SOP resemble?
Definition
a spreadsheet
Term
What are product groups? What is required?
Definition
groups "like" products together/with similar planning characteristics; (think of the hierarchy chart with %); lowest product grp must have materials as it's "members"(labels)

***a proportion factor is required
Term
What is a proportion factor?
Definition
the used of a percent to equal 100%

-used when a sales plan or prod plan at a higher level is "disaggregated" to a lower level; can be 0(zero)
Term
What exists for all members of the product group hierarchy?
Definition
SOP planning table
Term
What is included in the SOP planning table?
Definition
row for sales plan, prod plan, stock level, target stock, days supply, and target days supply
Term
What can time periods in SOP Planning Table be?
Definition
days, wks, months, or combo
Term
How can a sales plan be created from SOP Planning Table?
Definition
- transfer data from SIS
- trasnfer data from CO/PA analysis model
-using history to forecast
- transferring data from another product group
- manual
Term
What are the ways in which a production plan can be created from the SOP Planning Table?
Definition
- equal to sales plan
- target stock level
- target days supply
- inv to zero
- manual
Term
Creating a sales plan or prod plan at one level of the Product Structure Hierarchy doesn't auto-create _______. So what must occur?
Definition
lower levels; we must disaggregate
Term
What are some options for disaggregating?
Definition
-disaggregate the prod plan of prod grp 1
-disaggregate the sales plan of PG1
-simply disaggregate the sales plans of all the PGs down to the materials and develop prod plans at that level
-transfer planning data of all members w/in a single level PG to demand management
-can have diff plans for each PG structure bc each plan is saver w/a version # and description
Term
How is a plan sent to demand management?
Definition
After disaggregation, and through the active or inactive version of the planning
Term
What is Demand Management?
Definition
pertains to the administration of independent reqs
Term
Independent Reqs Type or their plannign strategy determines what?
Definition
how independent reqs behave in MRP
Term
What are Planned Independent Requirements?
Definition
(PIR); warehouse reqs that can be derived from a forecast of the future req situation (cuz don't wanna have to wait for the procurement, deliv times, etc.)
Term
What are Customer Independent Requirements? (other name)
Definition
ie. Sales Orders; created by sales and districution; can be received firectly in MRP, independently of their req type (this is what's desired when cust.-specific planning occurs)
Term
What is possible with PIRs?
Definition
consumption
Term
What do Sales Orders and PIRs created together?
Definition
Total Demand
Term
What are the two ways Sales Orders can serve?
Definition
- as exclusive reqs
- together with PIRs
Term
Aggregate Historical Dtat is ______________, while Future Demand Forecast is ____________
Definition
quantitative; qualitative
Term
What do sales orders represent?
Definition
a req in the supplying plant
Term
What are the Planning Strategies in MP?
Definition
Make-to-stock, subassembly, Make-to-order
Term
Make-To-stock Planning
Definition
production due to make to stock planning, reqs covered by warehouse stock
Term
SubAssembly Planning
Definition
make to stock prod for assmeblies
Term
Make to Order Planning
Definition
finsihed products to indv cust stock using make to order prod and where necessary, assmeblies to stock using materials to stock
Term
What does Sales-Order Based prod deal with?
Definition
deals w/a product that is procured for an existing sales order; not with planning
Term
What is planning w/final assembly?
Definition
flexible or fast reaction to cust demand is prominent; as smooth a prod process is wanted; So often affect req and consume PIRs, If cust req exceed PIRs, the system auto creates a planned order for the unplanned qty in the next MRP run
Term
What does Consumption Mode determine?
Definition
the direction on the time axis in which the arriving sales order are to consume the PIRS; backward or forward consumption or backward and forward

**defined in the materials master or for each MRP group
Term
What is the purpose of the Master Production Scheduling (MPS) and MRP?
Definition
guarantee availability on a two step planning process
**MPS is optional in the planning process
Term
What is MPS?
Definition
***option in planning process; usually materials that greatly influence the company profits or dominate the rod procedure.

-idea is to schedule these products first resolving any capacity etc probs and then execute MRP; can run results in planned orders for the master schedule items and depended reqs
Term
What does the MRP type define? Where is it entered?
Definition
the basic planning type; MRP 1 view of the material master
Term
What are the two types of planning of a material?
Definition
consumption and MRP based
Term
What is MRP based planning?
Definition
takes current and future sales as its reference point and is executed for the whole BOM structure; the planned reqs qty (PIR or SO) triggers reqs calcs
Term
What is consumption-based planning?
Definition
based on consumption values in the past and uses forecast or statistical procedures to determine future reqs; mostly used on low valued parts "B and C parts"
Term
Where is net requirements calculation used? What triggers it?
Definition
consumption based planning; triggered when stock levels fall below a reorder point or by forecast reqs in consumpton based

In MRP; when a material shortage exists for a certain material
Term
What happens if MRP discovers a shortage qty in MP?
Definition
procurement protocols are generated;
- net requirements calculation execution
- result of NRC is qty avail
- if qty avail for planning is less than 0, there's a shortage
- new procurement protocols are created (purch req or planned order, independently of procure type)
- suggested procurement qty results from lot-size procedure (set in Material Master)
Term
What are internal planning elements that can be changed, rescheduled, or deleted at any time?
Definition
purch req and planned orders
Term
How are Planned Orders and purchase reqs created in MRP when there's a shortage?
Definition
In house prod: planned order for the prod qty is created, when planning complete, planned orders can be turned into prod orders

In Ext Prod: system creates either planned oder or purch req or a scheudl likne for a pre existing scheduling agreement. When planning completed, Planned order -> purchase req _> PO
Term
What are the two ways MRP can be executed? Define both
Definition
-Total Planning for all materials: takes place over all BOM levels
-Individual planning: plan a material seperately; only header material is planned
Term
What happens to Dependent Reqs once a planned order is converted into a prod order?
Definition
transferred to order reservations
Term
What are the five components of MRP?
Definition
1) Net Reqs Planning
2) Lot Size Determination
3) Procurement TYpe
4) Scheduling
5) BOM Explosion
Term
What is Multilevel Backward Scheduling?
Definition
system calculates nec. start dates based on predefined end date; MRP reacts to ehe reqs needed for finished prod; Procurement prposals created for finished prod and dep. reqs for the components are calculated via BOM explosion; if dep reqs date is the avail date (or before the avail date) the system uses backward scheduling
Term
What are the two levels that the planning run in MRP is carried out at?
Definition
-total planning for a plant: encompasses all materials relevant to MRP for this plant and includes BOM explosion for materials w/BOMs (possible to execute for several plants or MRP areas) - Can be online or run in background



-for individual material (can be specific material only(single level) or for all BOM levels(multilevel)
Term
List the Planning Levels for MRP Run.
Definition
Total Planning (planning of all materials of one or several plants)
Online
As Background Job

- Ind. Planning (multilevel): planning of a materials BOM
- Ind. Planning (single level): planning of a material
- Ind. Planning (interactive): interactive single-level planning
Term
Regenerative Planning (processing key)
Definition
planning of all MRP-relevant materials (NEUPL)

**enables you to carry our planning run in short time intervals
Term
Net Change for Total Horizon (processing key)
Definition
-planning all materials which have undergone a change relevant to the planning run (NETCH)
Term
Net Change for Planning Horizon (processing key)
Definition
-planning all materials for which MRP-relevant changes have been made in the planning horizon
-planning w/in the planning horizon only
Term
What are the control parameters for MRP are required for the planning run? Defn.
Definition
- Processing Key: Regen planning or net change planning over whole period/ or restricted to planning horizon
1 - purch req
2 - purch req for the opening period
3 - planned orders
- Indicators: "Create Purchase Req" and "Schedule Lines" (only relevant for materials produced ext.)
1 - no sched. lines
2 - sched lines in the opening period
3 - schedule lines
- Decide if going to make MRP lists
1 - always
2 - only for exception message
3 - never
- Planning mode: defines if existing planning data should simply be adjusted, whether BOMs and routings should re-explode, whether the planning should be started from beginning to end
1 - adjust data
2 - new BOM and routing
3 - delete planning data
Term
Stock/Requirements List
Definition
contains UP-TO-DATE info on he current status of stocks, reqs, and receipts; able to view changes immediately; elements reread from database when "refresh" is hit
Term
MRP List
Definition
depicts the result of the latest planning run (Static!); changes made after planning run cannot be seen (you can control whether or not this list is generated during the planning run
Term
What two list that are generated in the MP Process are the same? What is both of their basic structures?
Definition
MRP List (planning run/static) & Stocks/Reqs List (current/dynamic)

Basic Structure:
- links are in the form of a tree for the work list of the MRP Controller
- above the list is the header with the material # (can display other header data)
- list itself contains the individual MRP elements and the corresponding avail qtys
Term
Planned Orders
Definition
- used to plan the "in-house" production of a material
- already contain the basic data w/in which production should take place
-contain the component reqs (dependent reqs) for the components that are needed for prod.
Term
What can be executed based on Planned Orders?
Definition
Capacity Requirements Planning
Term
What is the ultimate execution of production?
Definition
planned order --> production order(PP) or process order(PP-PI)
Term
For ext. procured materials, how can the planning of procurement take place?
Definition
means of planned orders or purchase reqs:
-if planned orders first, they have to be converted to purchase reqs

**or planning can come from scheduling agreement release
Term
Compare: Planning Steps/Defn (indicator) and Planning Levels
Definition
+ Profitability Analysis(CO/PA):
- rev plans
- sales plans (qtys)
Planning Level: Region 1 or 2

+ Sales and Operations Planning(SOP):
- sales plan
- prod. plans
Planning Level: product group

+ Master Production Scheduling(MPS):
- demand program
- Adjusted Master Plan
Planning Level: Product 1 or 2

+ Material Requirements Planning(MRP):
- dependent req
- planned production
- procurement plan
Planning Level: Assembly 1 or 2 (over: part 1 or 2)
Term
What is the Net Requirements Calculation comprised of?
Definition
stock and fixed receipts that currently exist (purch orders, prod orders, fixed purch reqs and planned orders) are compared with the safety stock and requirements

**the result is the qty avail for planning
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