MRP Stabilization in 4 Steps

7/28/2019 MRP Stabilization in 4 Steps

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IBM Global Business Services

© Copyright IBM Corporation 2010

MRP stabilization in 4 steps




© Copyright IBM Corporation 2010CONFIDENTIAL

MRP stabilization in 4 steps

1. Plan• Check Master Data• Production Planning

• Purchase Planning

2. DO• Production Execution

• Purchase Execution

3. Check• Check Planning and Execution Results

4. ACT• Act on results and modify master data and planning data





1. PlanCheck Master Data





1. PlanProduction Planning

Plan what needs to be produced/dispatched and produce/dispatchas per plan

1. MD61 : Update customer plan for 4 month rolling basis (GC plan) and copy in GP versionfor next 3 months.

2. ZMD16: Delete old planned orders which are not going to be used for production.

Frequency: every day morning or every day evening

3. ZSDSCHD: Update daily dispatch plan if there are any changes

Frequency: 25th of each month for next month’s 30 day daily plan . Every day morning or everyday evening, update dispatch plan on 3 to 6 days rolling basis.

4. MD01/MD02 : Run MRP to generate planned orders for production and Schedule line for purchase

Frequency: every day morning or every day evening

5. ZPLAN1: Release planned orders for production.

Frequency: Start of each shift or twice in a day. Check planned orders which are to beexecuted in the coming shift (8 AM for shifts 2 and 3 rd for current day then at 3 PM for 3 rd shifttoday and 1st shift tomorrow)





Production Planning continued…

Fine tune production plan for each Production Line on daily/shift basis

using ZPLAN1 transaction. In this transaction planned order quantity,date etc can be changed based on need.

Release production Plan for execution on the shop floor usingZPLAN1 transaction.

Monitor planned ver actual production using reports ZPPACT onshift/daily basis.

ZPBLOG is report to monitor production booking done.

ZPREP is to be printed at the end of each shift to record production of the shift.





1. PlanPurchase Panning

After MRP execution schedule lines will be generated for regular purchase

It will consider requirement from Production plan above, available stock and quotaarrangement if any, to generate schedule lines.

If there is no scheduling agreement then it will create purchase requisition which can beconverted to purchase order

Fine tune schedule lines generated by MRP using tcode MD04/ MD05, ME3M, ME38

If schedule is changed manually then, care should be taken that it is deleted or reducedif vendor is not following the schedule line (Do not create open schedule line for veryhigh quantity eg 999999).

Monitor schedule lined on daily basis as there are chances that the schedule lines will

change on daily basis, based on change in production plan.

Schedule lines can be freezed using transaction ZMTF, the materials for whichschedules are freezed using this transaction will not be changed in the MRP run for theselected date range.





2. DOProduction Execution

MRP will generate planned orders for finished goods and subassemblies. This can

be fine tuned using ZPLAN1 transaction

1. MF60: Pull list to be printed by production and submitted to store for issuingmaterial for production.

Frequency: Start of each shift or twice in a day. (8:30 AM for shifts 2 and 3rd for current day then at 3:30 PM for 3rd shift today and 1st shift tomorrow) It willconsider the planned orders which are still open and the new planned which

are released for production step 5 for production planning

2. MF60: Issue by store, store to complete the process of issuing materials for production before new request is printed by production.

Frequency: Start of each shift or twice in a day. (Before 2:30 PM for 2 nd and 3rd Shiftof current day and after 4 PM for the 3rd and 1st shift of next day) It will consider the planned orders which are still open and the new planned which arereleased for production from step 5 for production planning

3. ZMF42: Production Booking for the released planned orders. When production isbooked for the released planned orders it will be reduced by the booked quantity. And the raw materials will be consumed as per the booked quantity.

Frequency: Start of each shift or as frequently as possible.





Fine tune schedule lines on need basis

1. MD04/MD05/ME3M/ME38: Modify schedule lines if there is difference in schedule line and

actual requirement.

Frequency: On need basis

2. ME9E: Print Schedule line and communicate to vendor.

OR

ZSCHEDULE: Get the list of open schedule lines and communicate to vendor


3. MIGO: Post gate entry and GRN

Frequency: At the time of material arrival

2. DOPurchase Execution





3. Check

There should be close relation between plan and execution. This should be checked on regular

basis and corrective actions should be taken for the deviations.

Following reports can be used to monitor this in various areas

1. Sales/Dispatch

1. ZVDD : Planned vs Actual dispatch report (Use Help button beside execute button to

understand report output)

2. ZSDSCHD: Dispatch/Production plan for the FG

2. Production

1. ZPPACT: Plan Vs Actual Production

2. ZPLAN1: Production Plan

3. ZPBLOG: Day wise shift wise production Log

4. ZWIP: WIP at production cells

3. Purchase

1. ZSCHEDULE: Vendor wise schedule Vs Actual Receipt

2. MD05 : Stock requirement list collective with traffic lights for early warning

3. ZCOV : Stock coverage report based on material type





4. ACT

Based on the deviations in the planning results correct and modify data used as

input for planning. Few of regular likely deviations are mentioned below withcorrective actions:

1. Sales / Dispatch:

1. ZSDSCHD does not contain a FG for which dispatch plan needs to be updated

Reason : Scheduling agreement does not exists for the material.

2. In ZVDD plan is less than actual dispatch, modify next days plan to accommodate the

disparity.

3. In ZVDD plan is more than dispatch if required reduce next days plan so that yesterdays

plan be used for today’s plan





4. ACT…

2. Production

1. ZPPACT: difference in production plan and actual production. Delete oldplanned planed orders which will no longer be used. Correct dispatch schedule

if required. This report can be used to track daily plan VS production

completed.

2. ZPLAN1:

1. Cannot see planned orders for a particular material, check master data for

the material as mentioned in slide for master data.2. Planned order exists for material which is not to be manufactured, delete

planned order, change quantity, change date etc.

3. ZPBLOG: Check ZPBLOG after each shift to ensure production Booking done

for the shift.

4. ZWIP: this report can be used to monitor WIP stock at various shop floor

booking stages.





4. ACT…

3. Purchase

Fine tune schedule lines on need basis

1. MD04/MD05/ME3M/ME38: Modify schedule lines if there is difference in schedule line andactual requirement.


2. ME9E: Print Schedule line and communicate to vendor.

ORZSCHEDULE: Get the list of open schedule lines and communicate to vendor


OR

ZMMSA:





This presentation is just a guide line. Please refer User manuals for details process for the respective transactions

THANKS!!!!

MRP Stabilization in 4 Steps

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