3405 Summit Electric Supply Increasing MRP Efficiency - Segmenting Materials by MRP Areas

7/29/2019 3405 Summit Electric Supply Increasing MRP Efficiency - Segmenting Materials by MRP Areas

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Increasing MRP Efficiency –

Segmenting Materials by MRP Areas

Saleem Tajuddin

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Real Experience. Real Advantage.

[ Personal Intro – Saleem Tajuddin

SAP Materials Management at Summit Electric Supply since2007.

9 years SAP experience – MM Certification.

Work experience - directly or indirectly with Distribution

Industry for 30+ years.

International experience in Europe, Middle East and South Asia.

Education – Bachelor of Science, and MBA from McGill

University, Montreal, Canada

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[ Company Intro - Summit Electric Supply

Wholesale Electrical Distributor.

In Business since 1977.

HQ in Albuquerque with 20+ locations in Southern US, UAEand Colombia, SA.

Went Live with SAP – January 2007

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[

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Learning Points

How to configure MRP Area functionality in SAP

Master Data – MRP Area

Mass Maintaining Master Data – MRP Area




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Return on Investment

Implementing MRP Areas improved MRP efficiency

Before implementation – Planning Files are at Plant level.

300-400 second average execution time for a group of Plants.

After implementation - Planning Files converted to MRP Areas

Average execution time 30-40 seconds.




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Increasing MRP Efficiency –

Segmenting Materials by MRP Areas

Introduction: Why segment materials by MRP Areas. A brief

look at why this was implemented.

SAP configuration for MRP Areas: Discuss the IMG nodesinvolved.

MRP Area Master Data: A look at MRP Area Material Master

Record.

Mass Maintenance of MRP Area data.

Summary: Lessons learned from this implementation.


http://slidepdf.com/reader/full/3405-summit-electric-supply-increasing-mrp-efficiency-segmenting-materials 7/27Real Experience. Real Advantage.

[ Introduction: Why MRP Areas?

Need to segregate a group of materials in a separate Storage

Location.

Need to manage this group of materials separately from theMain Warehouse.

Need to run Consumption Based Planning independently from

Main Warehouse as needed.

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[ Best Practices

SAP Configuration – MRP Areas

MRP areas – Standard SAP functionality.

Manage materials in a separate storage location [SLOC] capability of

generating Purchase Requisitions based on this SLOC.

Configure SAP as follows:

Define the SLOC in the Plant[s] concerned.

Specify how the stock in this SLOC is to be treated by

MRP/Consumption Based Planning.

Convert Planning File entries to MRP Area based instead of

Plant based.

Finally, activate MRP Areas.

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[ Configuring MRP Areas

SPRO

Enterprise Structure

Definition

MaterialManagement Maintain Storage Location for Plant

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SPRO

Materials Management

Consumption BasedPlanning Planning Define Storage Location MRP per

Plant.

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SPRO

Production

Material Requirements Planning

Planning File Entries Convert Planning File Entries for MRP

Areas

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Here the planning file entries are converted from Plant based toMRP Area based.

This executes Program = RMDBVM00 which causes the system

to create new Planning File Entries This creates MRP Areas forevery Plant.

ONLY need to run this ONE TIME ONLY

Note: This does not create a transport, hence does not get

transported.

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When we converted from Plant based to MRP Area basedPlanning Files, we observed that what was taking us 300 – 400

seconds to run for a group of Plants is now taking 30 – 40

seconds.

MRP Planning files are executed more efficiently as is evident

in a 10 fold decrease in execution time.

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SPRO

Materials Management

Consumption Based Planning Master Data Activate MRP for MRP Areas

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SPRO Materials Management Consumption Based Planning

Master Data MRP Areas Define MRP Areas

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SPRO Materials Management Consumption Based Planning

Master Data MRP Areas Define MRP Areas

..Continued

When creating an MRP area, you enter the number, which must have at least 5

digits to avoid any overlapping with the plant MRP area, the description and the

MRP area type. Here we used ORLCB with description as Orlando Circuit Breaker.You must also enter a storage location as a receiving storage location. This storage

location must, however, belong to the MRP area.

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[ MRP Area Master Data

In order for this functionality to work, you MUST assign or

SEGMENT the materials you want to plan in this SLOC to the

MRP Area. This is called creating a segment for the MRP Area

in the Material Master record

Material Master - MRP1 view.

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• Material must exist in the Plant’s Main SLOC prior to extending

it to the SLOC of MRP Area.

• The material extension process into the MRP Area SLOC takes

place in 2 steps. The first step extends the material into the

MRP Area SLOC.

• In the next step, you segments the material into the MRP Area.

This allows us to setup separate MRP related field values.

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The MRP Area functionality allows you to set up separate field values for

MRP. Thus, enabling you to run MRP separately or jointly with the Plant.

Consumption values for the MRP Area are maintained separately. Thus,

have capability of setting up and running Forecasting separately from Plant.

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[ MRP Area Data

MMBE – Availability Overview

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[ MRP Area Data

MD04 - Stock Requirements List

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[ Running MRP

Though we segregate materials in MRP Area SLOC, we run MRP jobs in

background by Plant. This way, we don’t have to run the MRP Area

separately.

We still have the capability of running MRP by material/MRP Area as

needed.

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[ Mass Maintenance of MRP Area Data

Materials that have been extended to MRP Area SLOC and segmented can

have different Master Data related to MRP and Forecasting.

SAP Table for MRP Area = MDMA

SAP has program = RMMDDIBE which allows us to Mass Maintain Master

Data related to MRP and Forecasting for a given MRP Area.

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Can create or change MRP or Forecast data for a material or

group of materials in MRP Area[s].

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In order to change MRP data, need to give value to the field,

and check the box besides the field in order to make the

change.

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Key Learning Points - Summary

MRP Areas allow us to segregate materials and run MRP based on separate

parameters than that of Plant.

MRP on MRP Areas can be run separately or along with the Plant.

When we converted from Plant based to MRP Area based Planning Files,

we observed that what was taking us 300 – 400 seconds to run for a group

of Plants is now taking 30 – 40 seconds.

MRP Planning files are executed more efficiently as is evident in a 10 folddecrease in execution time.



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[

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SESSION CODE: 3405

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3405 Summit Electric Supply Increasing MRP Efficiency - Segmenting Materials by MRP Areas

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