SCM445 SAP ASSIGNMENT# 3

Name Shashank Mallepula Assigned # 039 Material Requirements Planning Exercise

Learning Objective: The purpose of this exercise is to demonstrate the materials requirement planning (MRP) functionality in the SAP R/3 system. This assignment will utilize the data that you created in assignment #2. As a first step, a small test problem will be solved manually to determine planned order releases by carrying out MRP calculations as learned in class and similar to homework assignments in chapter 6. The problem is solved in a traditional way with weekly time buckets. This problem is then implemented in the SAP R/3 software. Results obtained in SAP R/3 are compared with those obtained by hand calculations. The main steps in this exercise are outlined below.

1. 2. 3. 4. 5. 6. 7. 8.

Solve the MRP calculations for materials X100-01-xxxx; X200-01-xxxx; and X300-03-xxxx. Modify the MRP parameters on 5 material masters Create planned independent requirements for the finished product. View MRP stock/Reqmts list for the finished goods product Adjust the stock quantity for material X300-03-xxxx Run Master Production Scheduling and MRP for the finished product. (Multi-level explosion) View MRP Stock/Reqmts list Verify the MRP results with those obtained with hand calculations.

REMEMBER: Everywhere that xxxx is referenced, you should be using your personal FOUR digit SAP number assigned for course SCM445 STEP 1 Solve the Test Problem Calculate Planned Order Releases for materials X100-01-xxxx; X200-01-xxxx; and X300-03-xxxx . Relevant data on independent requirements (forecast), BOM, and material master data are given below. We will run SAP/R3 MRP processing for the entire product structure (10 materials), but your manual calculations will only need to be completed for 3 of the materials as specified above. Independent requirements (demand) for product X100-01-xxxx are given below: Period Week 47/2013 Week 48/2013 Week 49/2013 Week 50/2013 Independent Requirements 100 150 120 180

X100-01-xxxx
Tuaca Light

X200-01-xxxx Styrene Back Assembly

X200-03-xxxx Three prong cord

X200-02-xxxx
Formed Face

X200-04-xxxx Light Bulb

X300-02-xxxx Metal Heat Shield

X300-03-xxxx Formed Back

X300-04-xxxx Lampholder Assembly

X300-01-xxxx Clear screened face

X400-01-xxxx White styrene sheet

Some Relevant Material Master Data Material X100-01-xxxx X200-01-xxxx X300-03-xxxx Lot Size LFL LFL Fixed lot size of 200 Lead time 1 week (5 days) 1 week (5 days) 1 week (5 days) Procurement type In-house production In-house production In-house production Remarks Finished Product Semi-finished Product Semi-finished Product

Complete the following table: MRP CALCULATIONS Week No. Gross Requirements for X10001-xxxx Scheduled receipts Projected Available Balance (initial PAB=0) Planned Order Releases Gross Requirements for X20001-xxxx Scheduled receipts Projected Available Balance (initial PAB=0) Planned Order Releases Gross Requirements for X30003-xxxx Scheduled receipts Projected Available Balance (initial PAB=110) Planned Order Releases 44 45 46 47 100 0 48 150 0 49 120 0 50 180 0 51

STEP 2 Modify Material Master MRP Data for the following five materials 1. Execute SAP transaction code MM02 You are now going to eliminate the safety stock that currently exists for your finished goods material and you will also view the number of days that the MRP Planning fence is set to. Enter your material number X100-01-xxxx Click the green check mark Select views MRP1 and MRP2 Click the green check mark Enter plant: 3000 Enter location: 0001 Click the green check mark You are now in the MRP1 view Q.1 What is the value of Planning Time Fence? 10 Click the MRP2 view (tab) Change In-House Production time from 1 day to 5 days. Save changes (click on ) A message in the bottom left will confirm the changes have been made 2. Execute SAP transaction code MM02 (you are already there just enter new material) For the following material, you are going to change the lot size from lot for lot to fixed; set the fixed order quantity to 200; and change the lead time to 5 (days). Enter your material number X300-03-xxxx Click the green check mark Select views MRP1 and MRP2 Click the green check mark Enter plant: 3000 Enter location: 0001 Click the green check mark You are now in the MRP1 view Change Lot Size to FX (fixed order quantity instead of LFL) Change Fixed Lot Size to 200 Click the MRP2 view (tab) Change In-house production time to 5 (five) days Save changes (click on ) A message in the bottom left will confirm the changes have been made

3. Execute SAP transaction code MM02 (you are already there just enter new material) For the following raw material, you are going to set the maximum order quantity to 70. Enter your material number X300-02-xxxx Click the green check mark Select view MRP1 Click the green check mark Enter plant: 3000

Enter location: 0001 Click the green check mark You are now in the MRP1 view Change Maximum Lot Size to 70 Save changes (click on ) A message in the bottom left will confirm the changes have been made

4. Execute SAP transaction code MM02 (you are already there just enter new material) For the following raw material, you are going to set the minimum order quantity to 250. Enter your material number X400-01-xxxx Click the green check mark Select view MRP1 Click the green check mark Enter plant: 3000 Enter location: 0001 Click the green check mark You are now in the MRP1 view Change Minimum Lot Size to 250 Save changes (click on ) A message in the bottom left will confirm the changes have been made

5. Execute SAP transaction code MM02 (you are already there just enter new material) For the following material, you are going to change the lead time to 5 (days). Enter your material number X200-01-xxxx Click the green check mark Select view MRP2 Click the green check mark Enter plant: 3000 Enter location: 0001 Click the green check mark You are now in the MRP2 view Change In-house production time to 5 (five) days Save changes (click on )

STEP 3
Execute SAP Transaction code MD61. This transaction will allow you to create planned independent requirements for your finished product. Enter material X100-01-xxxx Change planning period to W (week) Set FROM date to 11/14/2013 Set TO date to 12/31/2013 Click green check mark You are now in the Planning Table view In W47/2013 enter quantity: 100

In W48/2013 enter quantity: 150 In W49/2013 enter quantity: 120 In W50/2013 enter quantity: 180 Save changes (click on ) A message in bottom left will confirm the schedule has been created

STEP 4
At this point, you have created material masters, BOM, and entered independent demands for your finished goods material. You will now run the MRP Stock /Requirements list for the finished goods material. Run SAP transaction MD04. Enter material: X100-01-xxxx Enter plant: 3000 Click green check mark

Q.2 What is the projected available balance (available qty) at the end of day 12/9/2013? 550Think about this PAB quantity we created the independent requirements, but we did not yet run MRP to generate orders to support the requirements. If we do not run MRP and create replenishments, on 12/9/2013 we will have a large negative balance which will represent the Tuaca Lights that we still owe our customers. However, this will not be the case because we are going to run MRP and build the Tuaca Lights to ship to our customers.

STEP 5
Create initial inventory balance for material X300-03-xxxx Run transaction MB1C Field Document Date Posting Date Movement type Plant Storage Location Data Todays date Todays date 561 3000 0001

From the menu on top of screen select: Movement type Receipt Init.stck entry (own) To unrestricted You will get multiple warning messages (lower left) continue to hit enter (green check) until the next screen appears which will allow you to enter material and quantity: Now enter Material X300-03-xxxx Quantity 110

Hit green check mark (enter) wait for processing! SAVE.

STEP 6
You will now run a multi-level MRP explosion that will start with your finished goods material (X100-01-xxxx) and will continue through the entire product structure. Run SAP transaction MD41. (MPS/MRP multi-level explosion) Enter material X100-01-xxxx Enter plant 3000 MRP control parameters (should be set OK but verify)

Processing key NETCH, Create pur. Req. 3, Schedule lines 3, Create MRP list 1, Planning mode 1, Scheduling 1 Select Also plan unchanged components Click green check mark (enter) Click green check mark again (confirming values) You will get the results of the MRP explosion do not worry about this screen, simply exit the transaction and go back to the Easy Menu. o

STEP 7 1) Run SAP transaction MD04 for material X100-01-xxxx and plant 3000. Review this screen very carefully!! Note all field names, including the Available Qty (projected available quantity) field. Note the first line with todays date that has Stock is the current sock on-hand quantity. Each row will show Independent requirements (the need) and the planned orders that were generated to satisfy them. Note the start date for the planned orders is backed off from the order due date based on the material lead time. For the planned order that is due on 11/25/2013: Q.3. What is the planned order start date? 11/21/2013 (hint: hit the magnifying glass icon to the left of the order) Q.4 For the order due on 12/02/2013, what is the planned order quantity? 120 Q.5 What is the available quantity at the end of the day on 12/02/2013? 0 (look CLOSELY at the MD04 screen to answer this question think about it) 2) Run SAP transaction MD04 for material X300-02-xxxx and plant 3000. Again, review this screen very carefully and understand the impact of setting the maximum lot size to 70. Q.6 How many planned orders were created that are due on 11/08/2013? (I am looking for the NUMBER of orders, NOT the total order quantity) 2 Be sure that you understand why multiple orders were created on 11/08/2013!!! 3) Run SAP transaction MD04 for material X400-01-xxxx and plant 3000. Again, review this screen very carefully and understand the impact of setting the minimum lot size to 250. Q.7 What is the Available Qty at the end of the day on 11/06/2013? 100

STEP 8
One at a time, run SAP transaction MD04 for materials X100-01-xxxx, X200-01-xxxx, X300-03-xxxx and X00-01xxxx. Now verify the results of the MRP planning with your manual calculations that you performed in step 1. The planned order releases and the available quantity (PAB) should match up EXACTLY. In addition to comparing these four materials with your manual calculations, you should also compare your MD04 results with one or two of your classmates. (You can optionally compare your answers with materials X100-01X01, X200-01-X01, X300-03-X01 and X400-01-X01). When viewing the MD04 transaction for each of these materials, if something is not correct, you will need to find the problem. You should review lead times and ordering parameters. When you find the problem, change the material (fix the parameter) and then run MRP again. In addition to your answer sheet quiz, my grading will also consist of my review of your material (MD04) requirements / replenishments for all materials.

GREAT WORK!!!!