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MRP processing keys

NETCH, NETPL and NEUPL are three fundamentally dierent ways to schedule yourMRP run:

• NETCH Net Chan!e Plannin!

• NETPL Net Chan!e Plannin! within Plannin! Hori"on

• NEUPL Re!enerati#e Plannin!

$ will ela%orate on these three o&tions and their wor'in!s:

()P is 'ee&in! trac' of chan!es that are rele#ant for &lannin! a material *li'e salesorder entry, &urchase order entry, stoc' release, etc++ ) &lannin! rele#ant chan!esi!nals to MRP that the material should run in the ne-t NETCH or NETPL MRP run+MRP will thus only &rocess those materials that underwent some ty&e of &lannin!rele#ant chan!e+ This can decrease &rocessin! time of the MRP %ac'!round run whencom&ared to &rocessin! )LL materials+

 The dierence %etween NETCH and NETPL is the &lannin! hori"on+ $n NETPL, if achan!e occurs outside the &lannin! hori"on *e+!+ a sales order is entered . monthsaway and your &lannin! hori"on is / wee's, then the material is not included in MRPe#en thou!h there is a chan!e+ 0e careful with this, %ecause that same sales order isnot reco!ni"ed as a new re1uirement when it will shift within the &lannin! hori"on aswe mo#e towards the future+

Re!enerati#e &lannin! *NEUPL disre!ards the fact whether or not &lannin! rele#antchan!es were made to the material+ $t will &rocess )LL materials *with an MRPrele#ant &lannin! ty&e in the material master2s MRP3 ta%+

)nother element worth mentionin! is the  processing indicator + 4ou can use the processing indicator   in the stoc'5re1uirement list or MRP list to indicate that youchec'ed the material+ 4ou can use a 6lter in the collecti#e access transaction M78/so you only ha#e to re#iew un&rocessed materials *the materials that you didn2tchec' yet+

Planning background MRP jobs

0ac'!round schedulin! of MRP 9o%s is done throu!h &ro!ram RMMRP888 *(E;+ Thisscreen is similar to transaction M783 that is used for fore!round *on<line &rocessin!+)lternati#ely to RMMRP888 you can schedule #ariants throu!h transaction M70T+ $usually &lan two MRP 9o%s for my customers:

3+ =ee'ly MRP: MRP NEUPL on Monday mornin!: we start with a new wee' and

all materials are &rocessed+ )ll processing indicators are reset+.+ 7aily MRP: MRP NETCH runs from Tuesday to >riday, early in the mornin!, only

materials that ha#e under!one some ty&e of &lannin! rele#ant chan!e are&ic'ed u& for MRP, safely assumin! that all other materials are still ?@+ The&rocessin! indicator of the materials in these runs are reset, the ones notincluded in MRP are untouched+

Note that in this MRP run setu& there are two 9o%s: daily and wee'ly+ This results in anMRP run on e#ery day e-ce&t (aturday and (unday+ ?%#iously if wee'ends are

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wor'in! days for your com&any2s &lannin! de&artment wee'ends needs to %eincluded as well+

)lso MRP runs in the mornin! and not %efore midni!ht+ 4ou want the stoc' date to %etoday2s date+ E#en thou!h there is only 6#e minutes dierence %etween %efore andafter midni!ht: yesterday2s stoc' date 9ust loo's as if you are usin! data that is not

current+

$ recommend stayin! away from NETPL+ There is really no ad#anta!e usin! this&rocedureA only ris'+

Consumption-based planning and MRP

MRP and Consum&tion<%ased &lannin! are two fundamental ()P &lannin! ty&es thatcan %e used to determine a &roduct2s re1uirements+ To a#oid any confusion on thesu%9ect: $ am not tal'in! a%out the MRP run  that is e-ecuted throu!h M783 andM78.+ $2m tal'in! a%out &lannin! ty&es that are set in the Material Master2s MRP3ta%+ The MRP ty&e is used in the MRP run to determine H?= &rocurement and5or

&roduction 1uantities are calculated+

MRP

=hen you &lan a material accordin! to MRP lo!ic it means that it2s re1uirements *i+e+how much of this &roduct do $ need in the future are de&endent on:

3+ inde&endent re1uirements determined %y a (ales and ?&erations Plannin!&rocess *(B?P or (?P, orA

.+ de&endent re1uirements comin! from another material of which the materialin 1uestion is a com&onent *&art of 0?M+

 The 'ey<word here really is: de&endency+ The de&endency of one material2s futuredemand to re1uirements determined elswhere+ MRP is commonly used in a&roduction en#ironment+

Consumption-based planning

=hen you &lan a material accordin! to Consum&tion<%ased &lannin! lo!ic, the futuredemand of the &roduct is always determined %y it2s historical demand+ $n ()P thereare two ways to a&&roach this:

3+ >orecast<%ased &lannin!: on the %asis of historical demand you estimatefuture re1uirements and you &rocure accordin! to this estimate+ This is

suita%le for materials that are sold or &roduced with hi!her #olume+ ?nly thena decent statistical forecast ma'es sense+.+ Re<order &oint &rocedure: when your stoc' falls %elow a &re<determined stoc'

le#el the system issues a &rocurement &ro&osal+ This is !enerally a&&lied tolow<#olume or %ul' materials+ >orecastin! on low<#olume materials is tooerror<&rone+ >orecastin! low<#olume materials will result in unreasona%ly hi!hsafety stoc's *$ will %lo! on the relationshi& %etween forecastin! and safetystoc' in the future+

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 The 'ey<word here is: inde&endency+ The material2s re1uirements are determinedinde&endent of another material or &rocess+ Consum&tion<%ased &lannin! iscommonly used in a wholesale en#ironment, %ut also in a &roduction en#ironment forsome raw materials, additi#es and %ul' materials+

Similarities

) (ales and ?&erations Plannin! &rocess is, li'e forecast<%ased &lannin!, also %asedon forecast+ The fundamental dierence in com&arison with forecast<%ased &lannin!*a Consum&tion<%ased &rocess is that:

• in (?P a material2s sales forecast is %ased on a!!re!ated historical demand

for multi&le materials in a &roduct<!rou& or a sales<re!ion+ The a!!re!atedsales forecast is then mani&ulated %y the &roduction de&artment for ca&acityreasons+ The 6nal a!!re!ated forecast is then s&read o#er the indi#idualmaterials accordin! to a distri%ution lo!ic *38 to &roduct D, ; to &roduct 4,etc++

• in Consum&tion<%ased &lannin! the forecast is always %ased on the material2s

own historical demand+ There is no<one in the &rocess that mani&ulates the

num%ers+