ERP 2.50:How-to MRP

Contents 1 How-to MRP - An Introduction 2 MRP Setup 2.1 Planner 2.2 Planning Method 2.3 Products 2.4 Process Plan 3 MRP Execution 3.1 Insert demand 3.2 Manufacturing Plan 3.3 Create Requisitions and Work Requirements 3.4 Purchasing Plan 3.5 Create Purchase Orders 4 MRP: A second example

How-to MRP - An Introduction

In this document it is explained a complete example of the MRP from its configuration to the creation of needed purchase orders for raw materials. It is used the 2.35 MP4 version of Openbravo ERP.

This document is a complement to the existing functional documentation of the MRP so in this document is not going to be explained what is each used element.

The used example is a fictional enterprise that manufactures usb cables. In the how to are created the raw materials (copper, plastic and plugs), intermediate products (cable) and final product (usb-cable). There is also created the process plan and all the necessary setup for the MRP.

MRP Setup

The steps on this section doesn't follow a fixed order although some of them must be created before others. You can follow the desired order, but it is important to go through all the steps for a correct execution of the MRP.

Planner

It is created the Planner Planner 1. The planner will be mandatory in the product configuration for the MRP.

Planning Method

It is created a unique Planning method Complete 30 days that includes all the transactions with weighting 1 and Days to End 30.

Products

All the products are created under the new product category Cables and are checked as production products.

In the following table is shown all the relevant configuration of the products, the process plan has to be updated on the product later when it is created. The MRP specifics are defined in the Org specific tab, for raw materials are also inserted in the Purchasing tab (it is used Anghet ,Company as current vendor). The intermediate product Cable is not considered in the MRP as all the cable created in the process plan is consumed in the same process plan to produce the usb cable. The raw materials and the finished products are also included in a price list: 01-01-2005 Special nº1 for the Usb cable and 01/01/2005 Purchase for Copper, Plastic and Plugs

Name	Purchase	Sale	Process PlanPlanningMethod	Org specific	Capacity	Safety Stock	Min. Qty/ Min.Order Qty.	Prom. Delivery Time	Qty. Type
Copper	Y	N		California		1	10	10
Plastic	Y	N		California		1	5	15
Cable	N	N
Plugs	Y	N		California		100
Usb cable	N	Y	Usb Cables	California	100	100	1

Process Plan

Prior to create the Process Plan it is necessary to properly setup the manufacturing module, in this example are created just 2 Activities, Build cable and Ensemble USB Cable.

It is created the Process Plan 'Usb Cables', with one version valid from 2008-01-01 to 2008-12-31. The Process plan has 2 operations defined using the following table.

Activity	Multiplier	P- product (qty)	P+ product (qty)
Build cable	1	Copper (0.1 units) Plastic (0.1 units)	Cable (1 unit)
Ensemble cable	1	Cable (1 unit) Plug (2 units)	Usb Cable (1 unit)

MRP Execution

Once the MRP has been set up it is possible to start running the MRP processes. In this example is created a Sales Order of USB cables and a Work Requirement for USB Cables that it is not enough to fulfill the Sales Order.

Insert demand

Create and complete a Sales Order using a document type that does not generate the corresponding shipment, in this case is used the Standard Order and a Scheduled delivery date 2008-07-07. The order has a unique line for 500 USB Cables.

Create and process a Work Requirement for 100 Usb Cable. The three dates are the same 2008-08-05.

Manufacturing Plan

Create a new Manufacturing Plan.

• Name: Manufacturing Plan 1
• Document Date: 2008-06-15
• Time Horizon: 60
• Lead Time: 1
• Planner: Planner 1

After processing the plan 10 lines are inserted in the Lines tab. We can see how it has considered the Sales Order, but not the Work Requirement because its Launch WR Date (2008-08-05) is later than the 30 days limit set in the Planning Method.

On the Document Date we can see the 2 lines related to the stock of the products that are being planned, in this case only the Usb Cable, as the Raw Materials are purchased.If the USB Cable had an intermediate product that was produced in a different Process plan it would have appeared here with its own Work Requirement suggestion if necessary.

The remaining lines are related to the sales order. As the order is promised for July 7th and the Lead Time is 1 the MRP suggest a Work Requirement that would finish on July 6th. This Work Requirement is of 600 units because it is considering also the Minimum stock of 100 units. This Work Requirement consumes some raw materials at June 30th that is when is expected to start the production. This leads to material requirements suggestions for the day before. In the requirements in the Planned Order date is also calculated when should be ordered this products to arrive on time.

Create Requisitions and Work Requirements

Create Requisition :

• Click on button Generate Material Requisitions (Material Requirement (MRP) || Transactions || Manufacturing Plan || Header) and the requisition lines are created .
• Requisition lines are created.Select the created requisition line (Procurement Management || Transactions || Requisition || Header ) and complete the header.

Create Work Requirement :

• Click on button Generate Work Requirement (Material Requirement (MRP) || Transactions || Manufacturing Plan || Header ) and the work requirement are created .
• Select the newly created work requirement in (Production Management || Transactions || Work Requirement || Header) and process the selected work requirement.

• Goto work requirement header (Production Management || Transactions || Work Requirement || Header) and click on button "Process Work Requirement"

• Inside the operation tab all the process plan for that product will be include in the work requirement.

Purchasing Plan

• Create a new Purchasing Plan (Material Requirement (MRP) || Transactions || Purchasing Plan || Header)

1. Name: Purchasing plan for usb cables
2. Planner: Planner1.
3. Time horizon: 60
4. Safety lead time: 1

• Click on Purchase Process Plan button to create lines. Lines are filled. Lines of the previous requisition are in Lock cause is Included in MRP process

• Notice that the purchase orders are created for the materials

Create Purchase Orders

1. Go to Purchasing Plan (Material Requirement (MRP) || Transactions || Purchasing Plan || Header): header and click on Create Purchase Orders button.
2. Go to Lines and notice that one Purchase Order has been created for all the purchase order suggestions
3. Go to the created order and check that the lines have a proper unit price and the quantities match the purchasing plan lines.

MRP: A second example

1. Create a Planner (Material Requirement (MRP) || Setup || Planner || Planner ) with the following data:
   1. Name: Planner Table
2. Create a new Planning Method (Planning Method Table) with the following data:
   1. Name: Planning Method Table
   2. Lines: Pending Sales Orders with Days to End = 30 and Weighting = 1
   3. Lines: Material Requirement with Days to End = 30 and Weighting = 1
3. Create product Table with the following data:
   1. UOM = Unit
   2. Storage Bin = ML1
   3. Stocked = Y
   4. Production = Y
   5. Purchase = N
   6. Sales = Y
   7. Org Specific: Organization = Main; Planning Method = Planning Method Table; Planner = Planner Table; Capacity = 50; Min. Quantity = 1; SafetyStock = 50
   8. Price: Price List Version = Sales 2006; List Price = 100; Standard Price = 75; Limit Price = 70
4. Create product Leg with the following data:
   1. UOM = Unit
   2. Storage Bin = ML1
   3. Stocked = Y
   4. Production = Y
   5. Purchase = Y
   6. Sales = N
   7. Purchasing: Business Partner = Edison; Min. Quantity Order = 4; Purchasing Lead Time = 5
   8. Org Specific: Organization = Main; Planning Method = Planning Method Table; Planner = Planner Table; Safety Stock = 12
   9. Price: Price List Version = Purchase 2006; List Price = 5; Standard Price = 4; Limit Price = 3
5. Create product Board with the following data:
   1. UOM = Unit
   2. Storage Bin = ML1
   3. Stocked = Y
   4. Production = Y
   5. Purchase = Y
   6. Sales = N
   7. Purchasing: Business Partner = Edison; Min. Quantity Order = 2; Purchasing Lead Time = 9
   8. Org Specific: Organization = Main; Planning Method = Planning Method Table; Planner = Planner Table; Safety Stock = 3
   9. Price: Price List Version = Purchase 2006; List Price = 25; Standard Price = 20; Limit Price = 15
6. Create one activity (Production Management || Setup || Activity || Activity) with the following data:
   1. Name: Assembly
7. Create a Process Plan (Production Management || Transactions || Process Plan) with the following data:
   1. Name = Build table
   2. Process Unit = Table
   3. Conversion Rate = 5
   4. Version: Starting Date = 01-01-2009; Ending Date = 01-01-2010
   5. Operation: Name = Assemble table; Activity = Assembly
   6. I/O Products:
      1. Table; P+; Quantity = 1
      2. Leg; P-; Quantity = 4
      3. Board; P-; Quantity = 1
   7. Go to product Table (Master Data Management || Product) and assign it Build Table Process Plan.
8. Create a Standard Sales Order:
   1. Order Date: Today + 1 week; Scheduled Delivery Date = Today + 1 week
   2. Lines = 100 Tables; Order Date: Today + 1 week; Scheduled Delivery Date = Today + 1 week
   3. Complete this Sales Order.
9. Create a new Manufacturing Plan (Material Requirement (MRP) || Transactions || Manufacturing Plan || Header) with the following data:
   1. Name = Manufacturing Plan Tables
   2. Time Horizon = 60
   3. Safety Lead Time = 1
   4. Planner = Planner Table
10. Click on Process Manufacturing Plan button to create lines. Lines are filled. Notice that 2 material requirements are suggested: 150 boards and 600 legs

    

11. Click on Generate Material Requisitions button to create a requisition for the 2 material requirements.

    

12. Go to the Requisition created (Procurement Management || Transactions || Requisition || Header) and Complete it.
13. Create a new Purchasing Plan (Material Requirement (MRP) || Transactions || Purchasing Plan || Header):
    1. Name: Purchasing plan for tables
    2. Planner: Table planner.
    3. Time horizon: 60
    4. Safety lead time: 1
14. Click on Purchase Process Plan button to create lines. Lines are filled. Lines of the previous requisition are in Lock cause is Included in MRP process.

    

15. Notice that Purchase Orders are suggested (2 or 4 depending if the Planned Dates match or not): one with 150 (production) + 3 (safety stock) boards and one with 600 (production) + 12 (safety stock) legs.
16. Go to Purchasing Plan header and click on Create Purchase Orders button.
17. Go to Lines and notice that one Purchase Order has been created for all the purchase order suggestions (with 2 lines or 4 lines depending if the Planned Dates match or not).

    

18. Go to the created purchase order and check that the lines have a proper unit price and the quantities match the purchasing plan lines.
19. Go back to the Requisition that was created and notice that the header is Closed.
20. Go to Manage Requisitions window (Procurement Management || Transactions || Manage Requisitions || Header) and check that the requisition does not appear.
21. Go to Requisition To Order process (Procurement Management || Transactions || Requisition To Order) and the requisition will not appear when Searching.

Category: Functional Documentation ERP