MRP System Settings for Smoother Scheduling

MRP errors are devastating. This document contains a 21-point checklist for Material Requirements Planning (MRP): ↳ # 1 - Ensure Bills of Materials (BOMs) are complete and contain all part numbers and alternates ↳ # 2 - Set up preferred and approved suppliers with accurate details ↳ # 3 Maintain up-to-date supplier lead times for each item ↳ # 4 - Define accurate Minimum Order Quantities (MOQs) for every supplier and part ↳ # 5 - Input and validate accurate freight and incoterms in supplier records ↳ # 6 - Review and confirm open purchase orders (POs) with suppliers ↳ # 7 - Keep ready dates and ETAs (Estimated Times of Arrival) updated regularly ↳ # 8 - Maintain accurate on-hand inventory by location and batch ↳ # 9 - Track and consider inventory in transit and inter-plant transfer lead times ↳ # 10 - Always run MRP with the most updated Master Production Schedule (MPS) ↳ # 11 - Review safety stock levels to reflect true demand and supply variability ↳ # 12 - Set accurate planning horizons (short, medium, and long-term) to match business needs ↳ # 13 - Ensure item planning policies are accurate ↳ # 14 - Validate production lead times for each work center ↳ # 15 - Include alternate sourcing and dual suppliers in the system where applicable ↳ # 16 - Verify substitution rules for interchangeable parts ↳ # 17 - Incorporate shelf-life, expiration dates, and aging rules for sensitive items. ↳ # 18 - Verify exception messages (reschedule in, reschedule out, cancel, expedite) ↳ # 19 - Track planner buy reports and reconcile against supplier acknowledgments ↳ # 20 - Validate supplier confirmations (acknowledgment of PO dates and quantities) ↳ # 21 - Establish feedback loops; when MRP recommendations fail, document root causes and adjust parameters Any others to add?

🔥 MRP views (MRP1 to MRP4) ➡️ MRP1 View: 💡 This view focuses on the basic planning parameters. One of the most important fields is the MRP Type, which determines whether and how the material is planned (e.g., PD for MRP, VB for manual reorder point). 💡 The MRP Controller is also crucial, as it assigns responsibility for planning the material. The Lot Size field defines how procurement proposals (planned orders, purchase requisitions) are created (e.g., lot-for-lot, fixed lot size). 💡 You also specify whether planning is done at the plant or MRP area level. 💡 Another important entry is the planning time fence, which helps stabilize the planning process by preventing automatic changes within a defined period. ➡️ MRP2 View: 💡 MRP2 focuses on procurement and in-house production details. Key fields include Procurement Type (E for in-house production, F for external procurement), which dictates whether the material is produced internally or purchased. 💡 The In-house Production Time and Planned Delivery Time help the system calculate lead times for procurement and production. 💡 Also, you can define scheduling margin keys, which add buffer times to production orders. 💡 The Batch Entry field is relevant if the material is handled in batches. 💡 There are also settings for backflushing, which determine whether component consumption is posted automatically during production. ➡️ MRP3 View: 💡 This view deals with strategy and consumption parameters. The Strategy Group is the key field that links the material to a specific planning strategy, such as make-to-stock (10) or make-to-order (20). 💡 The Availability Check Group defines how the system checks for available stock during order processing. 💡 The Consumption Mode and Consumption Period fields define how planned independent requirements and customer requirements are consumed. ➡️ MRP4 View: 💡 MRP4 focuses on BOM and work scheduling integration. 💡 The most important field here is the Selection Method, which determines how the BOM and routing are selected for production. 💡 The Production Version is also key, especially in S/4HANA where it is often mandatory, as it links the BOM and routing for a specific manufacturing scenario. 💡 The Individual/Collective Indicator helps define whether requirements are planned individually or collectively. This view also includes settings for repetitive manufacturing and alternative BOM usage. Together, these MRP views provide all necessary inputs to ensure the material can be effectively planned and produced in the SAP PP module. Accurate and consistent data entry in these views is critical for successful material requirements planning and production execution. #sap #sapcommunity #saptraining #usa #canada #uk #ireland #germany #france #southafrica #bangladesh #pakistan #malaysia #indonesia

Unlocking SAP MRP Configuration: Key Tcodes Every SAP PP/MM Consultant Should Know Whether you're new to SAP Production Planning or a seasoned consultant brushing up on your configuration skills, knowing the right transaction codes (tcodes) is essential. Let's break it down in a structured way to help you set up and manage Material Requirements Planning (MRP) effectively. 1. Start Here: The Configuration Gateway ⚙️ SPRO – Your main entry point to all customizing (IMG) settings. Think of this as your control center for everything SAP configuration. ➡️ Navigate to: SPRO > SAP Reference IMG > Production > Material Requirements Planning 2. Core MRP Configuration Tcodes 🔧 OMI8 – Define MRP Types Customize how MRP behaves for different materials (e.g., PD for standard MRP, VB for reorder point planning). 🧑💼 OPPR – Define MRP Controllers Assign controllers to manage material planning responsibilities based on plant, supplier, or product group. 🏭 OMI0 – Plant Parameters for MRP Set plant-specific rules that determine how MRP should behave – very important for tailored planning strategies. 🧠 OMIQ – Define MRP Groups MRP Groups allow you to categorize materials and define planning strategies at a more granular level. 📆 OPJJ – Define Planning Horizon Tell the system how many days ahead to plan. Short-term and long-term horizons can be controlled here. 3. Mastering MRP Areas 📦 OMD0 – Define MRP Areas Divide plants into sub-sections (like storage locations) for more flexible planning. 🔗 OMD1 – Assign Storage Locations to MRP Areas Tie storage locations to MRP Areas to control how inventory is planned and consumed. 🏗️ MDM1 / MDM2 – Create / Change MRP Area Master Data Ensure your master data aligns with your planning structure. 4. Availability Checks in MRP ✅ OMD9 – Define Checking Groups Used during MRP to verify stock levels and avoid overplanning. 🧩 OM21 – Availability Check Settings Define how the system checks for stock during production or procurement planning. 5. Execution & Monitoring (Bonus Tcodes) 📊 MD06 – Collective MRP List Mass display of MRP results – perfect for monitoring many materials at once. 🔍 MD07 – MRP List for MRP Controller Filtered view just for a specific controller’s responsibilities. ⏱️ MD01 / MD02 / MD03 – Run MRP Full plant, material-specific, or total planning execution depending on your needs. 📋 MD04 – Stock/Requirements List Live view of material situation: current stock, orders, requisitions, and more. 🧾 MD05 – MRP List (Single Material) Snapshot of MRP run results for a specific material – a great troubleshooting tool. Pro Tip: Want to save time when running MD06? Create Variants by going to Settings > Save on the MD06 screen. Name your filter set and reuse it for quick access. If you find it useful, please For more insightful content follow ARUN KUMAR KASINATHAN #SAP #SAPPP #SAPMM #SAPMRP #MRPConfiguration #SAPConsultant #S4HANA #ERP #ProductionPlanning #SupplyChain #SAPLearning