Material Master In Production Planning
Contents What is Material Master? ..........................................................................................................................................5 Material type and Industrial sector in Material Master...........................................................................................5 Views Available in Material master: .........................................................................................................................5 Role of Material Master in Production Planning: .....................................................................................................5 Creation of Material Master......................................................................................................................................6 Change/Display Material Master ..............................................................................................................................8 PP Material Master Views .........................................................................................................................................9 MRP Views: ............................................................................................................................................................9 Work scheduling View: ..........................................................................................................................................9 MRP1 View: ............................................................................................................................................................9 MRP Type ...........................................................................................................................................................9 Planning time fence ........................................................................................................................................ 10 Lot size:............................................................................................................................................................ 10 MRP 2 View: ........................................................................................................................................................ 12 Procurement type: .......................................................................................................................................... 12 Special Procurement type: ............................................................................................................................. 12 Backflush: ........................................................................................................................................................ 13 Batch entry: ..................................................................................................................................................... 13 Production storage location: .......................................................................................................................... 13 Default Supply Area: ....................................................................................................................................... 13 Default Location for EP: .................................................................................................................................. 13 In-house Production: ...................................................................................................................................... 14 Planned delivery time:.................................................................................................................................... 14 GR Processing time: ........................................................................................................................................ 14 Planning Calendar: .......................................................................................................................................... 14 Scheduling Margin Key: .................................................................................................................................. 14 Safety stock calculation .................................................................................................................................. 15 MRP 3 View: ........................................................................................................................................................ 15 Planning Strategy: ........................................................................................................................................... 15 Availability check ............................................................................................................................................ 16 MRP 4 View: ........................................................................................................................................................ 17 Selection Method:........................................................................................................................................... 17
Component scrap: ........................................................................................................................................... 17 Individual /collective Indicators: .................................................................................................................... 18 MRP dependent Requirement: ...................................................................................................................... 18 Discontinuation Parts: .................................................................................................................................... 18 Work scheduling View: ................................................................................................................................... 1918 P-S Material status:......................................................................................................................................... 19 Production Unit:.............................................................................................................................................. 19 Production Supervisor: ............................................................................................................................... 2019 Production Scheduling Profile ........................................................................................................................ 20
What is Material Master? • •
Material Master is a central master data of an organization which contains information related to the procurement, Productionproduction, quality, sales and financial data for a material. Information in Material master will be stored at different levels:. 1. Client Level or general data 2. Plant Level 3. Storage Location Level 4. Valuation Level
Material type and Industrial sector in Material Master. • •
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Dependings upon material type and industrial sector, we can restrict material views and fields. E.g., mMaterial type ROH which is Raw material type enables Purchase, Production and Aaccounting views, etc. whereas mMaterial type HALB which is semi-finished product enables Sales, Purchase, Production and Aaccounting views. The sSame way iIndustrial sectors will enables its specific fields in Material master. Dependings upon procurement method of materials (Purchase or production or trading) a suitable material type has to be selected.
Views Available in Material master: • • • • • • •
General data Purchase Data Sales data Material Planning data Production information Quality Information Accounting and costing
Role of Material Master in Production Planning: •
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The following views are relevant for production pPlanning: 1. Material Requirement Planning ( MRP 1, MRP2, MRP3 and MRP4 views) 2. Work scheduling view. Material master contains information related to pPlanning and production execution.
Creation of Material Master • • •
Material master contains several views which are maintained by the respective departments. Material master contains are created for all materials that a company procures, produces or sells. We can create material master by accessing the following menu path:
We can also directly access the transaction by typing below MM01 transaction code.
The system will show the initial screen of MM01 transaction.
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Here Material number can be external or internal number. Dependings upon business requirement we choose the suitable number range. Definition of a number range is specific to a material type. Wi.e we can definle different number ranges for rRaw materials and fFinished products.
Next, the system will show the window to choose views of the material master that we would like to create or edit.
Change/Display Material Master •
Below transactions are used to change and display material master.
Transaction MM02 MM03
Descriptions Change Material Master Display Material Master
We can also do mass changes of the material master particular fields using transaction MM60.
PP Material Master Views Here some of the important fields in MRP and work scheduling views are explained.
MRP Views: MRP views in material master gives below the following information:. ✓ ✓ ✓ ✓ ✓
How the material needs to be planned How the material to be purchased or produced Material lead time information Safety stock details Planning strategy of pProduction ( Make to order or Make to stock)
Work scheduling View: ✓ Person responsible for production ✓ Lead time for the pProduction process ✓ Product is bBatch maintained or not
MRP1 View: MRP Type MRP procedure in MRP1 view decides determines how the material will be planned during MRP run.
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Planning procedure “MRP” plans the material according to current requirements. The requirements may be a sale order, a pProduction plan or a sales plan. Planning procedure “MPS” also plans the material according to current requirements. The requirements may be a sale order, a pProduction plan or a sales plan. The dDifference between MRP and MPS planning procedure is that MPS material will be only planned in foreground /interactive mode. Material which are critical or used in bottle neck resources or influence the company inventory cost can be defined as MRP and planned separately. MRP will not plan MPS item as it needs separate attention of the planner. Planning Procedure “Consumption based planning” plans the material based on its historicaly data or past consumption data.
For example, reorder level of the material will be set based on its past consumption history by manually or automatically (by forecast).Example ✓ ✓ ✓ ✓ ✓ ✓
Let say lLast 6 mMonths average consumption per month was is 200 PCS Maximum Lead time for procuringof the material is let say 25 days Reorder level = Average daily consumption * Maximum lLead time of the material Reorder point will be calculated as (200/30 ) * 25 = 166.666 PCs = 167 PCs Here reorder level is based on the past 6 month historicaly data. In automatic reorder point Pplanning scenario, the system will arrive to this reorder level from the fForecast run., Butwhere us in manual planning scenario, rReorder point it will be calculated by planner manually and the value will be manually set in the material master.
Planning time fence •
Planning time fence is period in days where system will disturb the current panning situation or existing planning situation.
This topic will be explained in details in MRP lesson.
Lot size: •
Lot size information here will be used at the time of planning to calculate pPurchase or pProduction quantity.
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Lot sizing Procedures are here classified based on Quantity, Time and Cost
Lot Size procedure Procedure Usage
Static Lot size Procurement quantity is calculated based quantity information maintained in material master
Example
EX - Lot for Lot Size FX – Fixed Lot size HB – Replenishment up to Maximum stock level
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Period Lot size In period lot size, system groups the requirement quantity which are in the particular time interval. (Week, Month, etc.) TB – Daily Lot size MB – Monthly Lot size, e Etc.
Optimum Lot size It group the quantity so that costs (setup, lLot size independent costs) are minimized.
GR – Geoff reorder Procedure WI - Least unit cost procedure
Dependings upon thesection of lot size some of the fields are required to be entered
MRP 2 View: Procurement type: •
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During Material requirement planning (MRP), once system calculated procurement (Purchase/production) quantity it will determine the procurement method based on “Procurement type”. The following Procurement types are available in the system F E X
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External Procurement In-house Production Both Procurement types ( External or In-house)
Depending s upon the procurement type the system will create either a Planned order or a Purchase requisition.
Special Procurement type: • • •
Here we can define the procurement type more precisely. For example, in external procurement the material may be purchased as Subcontractor Consignment stock or stock transfer from other plant. Examples of sSpecial procurement type: 10 Consignment 20 External procurement 30 Subcontracting 40 Stock transfer 50 Phantom assembly
Backflush: • •
This indicator applicable for BOM components only. This controls the automatic posting of the components. In Production Planning, we can enter backflush in 3 different levels:. 1. Routing – Component assignment screen 2. Material master 3. Work center
Batch entry: • •
This also applicable for the component of an assembly or finished goods. If raw material is batch maintained when should the batch entry, i.e. batch number assignment for consumption to be made? a. At the time of Goods issue b. At the time of Production/Process order release c. Automatically based when order is released based on search strategy and sort rule.
Production storage location: • •
If material is a component of an assembly this fields refer to ‘Issuinge storage location” If material is an assembly or Finished material this fields refers to ‘Receiving storage location”.
Default Supply Area: • •
This field is used in KANBAN replenishment process. This is an area where material will be kept for consumption. It helps to create KANBAN control cycle between Vendor and Production area.
Default Location for EP: •
When system creates Purchase requisition after MRP, this storage location will be assigned automatically as a receiving location.
In-house Production: • • •
Number of days required to produce the material. This is based on work days specified in factory calendar. This is lot size independent,. i.e. for any of the order quantity the system uses this value only.
Planned delivery time: • •
This is number of days required to receive the material, when it is purchased externally after placing the order. This value is in cCalendar days.
GR Processing time: • •
This is number of days required for Inspection and placinge the material in a storage location. This value is in cCalendar days.
Planning Calendar: • • • •
This is useful when we plan materials using time-phased planning. Some materials may be delivered by the Vendor on specific day or date, .e.g. every Wednesday or 10 th of the every month, etc. This type of material will be scheduled based on planning calendar. Planning calendar has to be created in separate transaction (MD25) and assigned here.
Scheduling Margin Key: 1. We can still add some floats in addition to the material lead times (In-house, Planned delivery time) using scheduling margin key. 2. This value is in work days. The following floats are available in Scheduling Margin Key • • • •
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Opening Period --- days required for planned to start the production after Order is created Float Before Production -- days between scheduled finish date and order finish date Float after Production days -- between Order start date and scheduled start date Release period - days between Start date and Order release date
Safety stock calculation • •
Safety stock will be used in case of any sudden or unexpected demand. We can set the safety stock manually. Aalso it can be calculated automatically based on forecast value.
MRP 3 View: Planning Strategy: • •
In planning section of MRP 3 view, we can define which planning strategy is applicable for the material. SAP has provided a wide range of planning strategies:. •o Make to order •o Make to stock •o Assembly to order etc.
Behavior of individual strategisy will be explained in demand management.
Availability check
In production planning we can perform availability check at various places
1. At the time of pProduction order creation 2. At the time of pProduction order release. 3. We can activate dynamic availability check at the time of gGoods issue (Optional) Availability check is based on the scope of check we defined in Customization.
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In scope of check we can define which receipts/sStocks elements and which issues elements are considered when we perform availability check. Here are some examples of Receipt/Stock elements: are ✓ Purchase requisition ✓ Purchase order ✓ Planned orders
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✓ Production orders ✓ Safety stock ✓ QI Stocks etc. ✓ Here are some example of issues elements: are ✓ Reservation ✓ Sales requirements ✓ Dependent requirement ✓ Sales delivery ✓ Shipping notification
MRP 4 View:
Selection Method: • •
In this section, we can control how BOM and routing willto be selected when we create a pProduction order or a planned order or do these activities or in MRP. If more than one BOM, i.e. an alternate BOM is available for a material we can control its selection o By its quantity o By explosion date o By production version validity
Component scrap: • • •
Some partial quantity of the components may be become scrap at the production due to its nature or operation nature. These kinds of materials we need to be planned in more quantities than theits requirement. Percentages we used in this field will be used for this purpose at the time of MRP run.
Example:
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Assembly FG001 required raw materials RAW1 and RAW2
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Let say we defined component scrap for RAW2 as 10 % DWhen demand is coming for FG001 for the quantity of 100 nosPC. When you run MRP , the system calculates quantities as below:lows Required Material Demand Stock quantity PC PC PC FG001 100 0 RAW1 50 RAW2 0
Planned quantity PC 100 100 100
1000 50 110
Individual /collective Indicators: •
This decided determines whether requirements for this material haves to be started individual or collectively.
MRP dependent Requirement: •
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This indicator will be only used w, When assembly or components are planned separately and we don’t want the system to plan themit based on dependent requirements created for finished material requirements. This applicable only for Make to stock production.
Discontinuation Parts:
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This section will be used when you want MRP to plan the a different material instead of the material in subject after effective out date.
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AfterOn this date from the stocks of this material should not be exists for this material and, theen system will replace it by the follow-up material.
Work scheduling View: •
This view completely controls the pProduction order and its execution
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Some of the important fields frequently used in any organization areis explained here.
P-S Material status: •
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This field controls, when we don’t want a particular department or function in an organization to use this material. For example, when you want to restrict Production activities for a material which is under design or development in R&D department, we can set an appropriate status. We can also define our own Plant specific status in customization.
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We can also maintain Valid from date from which this restriction will be applied.
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Production Unit: •
When you want to use a different unit of measurement other that Basic UOM we can maintain it here.
Production Supervisor: •
Person responsible for the production activity and scheduling for this material.
Production Scheduling Profile • •
We can define which business transactions need to be executed during Production order processing. For example, printing of shop floor paper which contains Operation, Raw materials required and user instructions after release of the order.
Serial number and batch Management: •
If bBatch or serial number is required for the material, we can define it in this view.
Tolerance data:
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We can define here, the percentage above or below the quantity that can be posted when we do gGoods receipt against production order. Unlimited iIndicator will allow system to do GR indefinite irrespective ofthan the order quantity.
Lot Size Dependent: • •
In MRP 2 view, we defined the In-house production which is lot size independent, i.e. for any of the order quantity the system uses this value to calculate planned end date. If you want the system to calculate it with respect to the lot sizesize, we can also define here.