MM-PP Integration Automatic Create PR or Planned Order

Contributed By
Yogesh Jagtap
Under the guidance of Prashun
Shetty

 MM (Material Management)-PP (Production Planning) Integration by using MRP.

MRP stand for material requirement planning.

1) MRP for procuring material regularly due to production activity or production

purpose.
2) If we do not full fill material requirement so production activity stop and production
in risk.
3) If material stock getting completed then raise purchase requisition due to run
production activity.
4) Big organization number of plant so you can’t remember all material stock level so
you can overcome risk of shortage material by using MRP.
5) Let’s see e.g. In company premises three category material
A-High or fast moving material
B-Medium moving material
C-Low Moving Material
6) B-Medium Moving material we have to maintained safety stock according business
need and generate purchase requisition or planned order. The next step is planned
order converted into purchase requisition by using T code-MD14 and going to
purchasing department or eventually become purchase order.

1) Activate the MRP at Plant level-

SPRO IMG Material Management Consumption Based Planning
Planning  Activate Materials Requirement Planning.

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 1) Maintain the Plant Parameters-
SPRO IMG  Material ManagementConsumption Based
PlanningPlanning  Carry out overall maintenance of plant parameters.

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Depending on the requirement of your business scenario, you need to maintain the plant
parameters as follow:

1) Number Ranges-

Number ranges for planned order, reservations/dependent requirement, purchase

requisition, MRP List & so on.

2) Master Data-

Master data such as MRP Controller, Special Procurement, and Floats.

3) Planned Order-

Procurement element such as conversion of planned order to purchase requistion.

4) Planning Run-

Relevant to planning run, such as external rescheduling, planning horizon,

available stock, and so on.

Similar to plant parameter, you can also maintain in MRP group.

MRP Group-

1) MRP group is responsible for separate planning for the material.

2) We create MRP Group T code OPPR with planning strategy, consumption
mode, Planning horizon
3) We assign the MRP Group to Material master in MRP1 view.
4) MRP groups are used when the plant division for planning is not enough for the
division of the different material MRP requirement. You assign different group
according to the requirements to run MRP (Different Setting).These setting will
be taken in account when you run MRP for single item or total planning.
5) We create MRP group in following path:

SPRO IMG Material ManagementConsumption Based PlanningMRP

Group  Carry out overall maintenance of MRP Group.

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You can customize the MRP group as the default in material master. The menu path is:

SPRO IMG Material ManagementConsumption Based PlanningMRP Group 

Define MRP Group for each material type.

You can define the default MRP group for every material type and plant. Example ZFNS
material type assign MRP group 0010 Make-to-Stock Production to plant SDP1.

MRP Areas-

1) The plant MRP area will have a plant together with all its storage locations and
stock with subcontractors. The plant MRP area is created automatically when you
convert the existing planning file entries to planning file entries for MRP areas.

SPRO Path-

SPRO IMG Material ManagementConsumption Based PlanningMaster Data

 MRP Areas Define MRP Areas .

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 Example-
Company SP12 having Plant SDP1 within material LWR630 having medium
moving material so we maintained safety stock-1000 PC.if material stock decrease
(below maintain safety stock) means stock 800 PC. So system generate automatic
planned order or purchase requisition of 200 PC by MRP Run. But Now we
maintained safety stock (1000 pc ) while creating material so Planned order
created 1000 pc.

Safety stock- safety stock given by production planning department.

1) The quantity of stock to satisfy high requirement in the stocking up period.

2) To determine the safety stock level, you must specify the risk of material
shortage and desired service level, safety stock not used in Production.

1. Maintain to material MRP viewMRP1, MRP2 and configuration setting.

Path-

Logistics Material ManagementMaterial MasterMaterialCreate.

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 1) MRP1- MRP1 view maintain MRP Group, MRP Type, MRP Controller, Lot Size

MRP Type-

1) PD-Material Requirement Planning.

If it’s routine for a vendor to deliver material on a particular day of the week, it
makes sense to plan to buy this material on that particular day and adopt this
cycle.

2) ND-No Planning.

3) VB- Manual Reorder Point Planning.

Both the reorder level and the safety stock level are define manually in the
appropriate material master.

4) VM-Automatic Reorder Point Planning.

The integrated forecasting program determine the both the reorder level and
safety stock level. Historical or past consumptions data are used by the system
to predirect future requirement. The forecast value are used by the system to
work out reorder level and safety stock level.
1) Reorder Point Planning-
In Reorder point procedure, procurement trigger when is triggered when the
sum of plants stock and firm receipt falls under reorder point.
When enter MRP type as ‘VB’ Manual Reorder Point Planning then we need to
enter below MRP type Reorder point.

2) MRP Controller-
1) MRP Controller is responsible for material requirement point planning or
Material availability.
2) MRP controller task include executing and monitoring material requirement
planning.
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 3) They ensure that material required to manufactured finished product or
superior assemblies are available on time.

3) Lot Size Data-

EX- Lot for Lot Order Quantity.
FX- Fixed Order Quantity.

1) EX-Lot for Lot Order Quantity-

Planning run will generate the exact quantity of requirement e.g. suppose if
set lot size as ‘EX’ in Material , requirement quantity is 1000kg planned order
will be generated for the 1000kg.

2) FX-Fixed Order Quantity-

Planning run will generate the multiple of the fixed lot size entered in material
master e.g. suppose if set lot size as ‘FX’ in material master with fixed
quantity ‘250’ and requirement quantity is 1000kg & planned order will
generated for the 100kg.

2) MRP2 -

MRP2 view maintain Procurement type, Special Procurement, Scheduling,

Net requirement calculation safety stock.

1) Procurement –
E-In-house Production
F-External Procurement
X-Both Production

2) Scheduling-
1) In-house production Days-
2) Planned Delivery Time-
No of calendar days required to obtained material.
3) GR Processing Time-
Number of workdays required after receiving the material to quality
inspection and placement into storage location.

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Net Requirement Calculation -

Safety Stock- The quantity of stock to satisfy high requirement in the stocking up period.

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 Now going to MRP Run T-code-MD04- Material Requirement List

Path

Logistics Material ManagementMaterial Requirement Planning (MRP)

(MRP)Evaluations Stock Requirement List.

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 MRP Requirement List shows the requirement of material

Shows the requirement of 1000 pc

Now going to T-code –MD02- MRP Run Single Item, Multi-Level

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 Path-
Logistics ProductionMRP PlanningSingle Item Multi Level.

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 Again Go to T Code-MD04 for Check Planned order generated.

Path-

Logistics Material ManagementMaterial Requirement Planning (MRP)

(MRP)Evaluations Stock Requirement List.

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Then we convert planned order to but we give information manually source of supply
so that’s why before conversion planned order to purchase requisition you maintain
Info recode and source list so create automatically Purchase Requisition.

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Create Info record For respective Vendor (6666676766) and Material LWR630
T Code-ME11
Logistics Material Management Purchasing Master DataInfo Record Create.

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Maintain Source List By Using T code-ME01 so assign source of supply material and
plant.
T Code-ME01
Logistics Material Management Purchasing Master DataSource List Maintain.

Covert Planned order Into Purchase requisition T Code- MD14

Path-

Logistics ProductionMRP Planned Order Covert Planned Order To Purchase

Requisition Individual conversion

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Check Created Purchase Requisition Display TCode-ME53N

Path-

Logistics Material Management  Purchasing Purchase Requisition Display

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Release Purchase Requisition By T Code-ME54N

Path-

Logistics Material Management  Purchasing Purchase Requisition Release 

Individual Release

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 THANK YOU

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