Lab Module: Consumption-based Planning - ROP

8/13/2019 Lab Module: Consumption-based Planning - ROP

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SCM Ganjil 2013/2014Faculty of Computer Science University of Indonesia

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Labs Module: Consumption-based Planning: Reorder Point

SAP Username GBI-093Name Rana Fathiya Kusuma

1.1 Create Raw Material

Menu Path Logistics Production Master Data Material Master Material Create (Special)Raw Material

Trans Code MMR1

Enter RAW-### for material and select Retail for Industry Sector, then click on Select view(s): BasicData 1, Purchasing, MRP 1, MRP 2, MRP 3, Accounting 1. Then click on enter.


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Enter DL00 for Plant, then click on enter icon ( ).


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Basic Data 1 ViewDescription RAW-###Unit of Measure EAMaterial Group BIKES

PurchasingPurchasing group N00


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MRP1MRP Type manual reorder point planning VBReorder point 80MRP Controller 000

Lot size fixed FXFixed lot size 400

MRP2


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Procurement type external FSchedMargin key 001Plnd delivery time 2Safety stock 30


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MRP3Availability check indv req 02


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Accounting 1Valuation class 3000 (raw materials 1)Price control SStandard Price 8.5

Enter the data shown above, then click on the save icon ( ) to save the new material master.


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1.2 Stock/Requirements List

Menu Path Logistics Materials Management Inventory Management Environment StockStock/Requirements List

Trans Code MD04

Material RAW- ### and plant DL00 should be entered automatically. If not, enter them, then click onthe enter icon ( ).

Because this is a brand new material, the stock is 0. Because there should be a safety stock of 30 units, we are showing the available quantity as a negative 30 , and there is an exception message.

To see what the exception message is, click on it and then click on the search icon.

Click on the exception message,

then click on the search icon


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Exception message 96 notifies us that the stock level is below the safety stock level. Exceptionmessages are particular useful when looking at a number of materials to see which need attention,and why. Close the list of exceptions by clicking on the close icon ( ).


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Click on the Create new session icon


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1.3 MRP Planning Run

We will want to keep the Stock/Requirements List open so we can quickly see the impact ofplanning procedures. Because the inventory for raw material is below the reorder point, the SAP

system should create a purchase requisition that can be converted to a purchase order so that rawmaterials can be acquired. To create purchase requisitions for the raw materials, we need toexecute an MRP planning run. We will do the MRP planning run for just this material, even thoughin practice it would probably be done for a group of materials (using an MRP Area) and wouldprobably be scheduled regularly.

To run the MRP planning process for a single material, follow the menu path:

Menu Path Logistics Production MRP Planning Single Level Single-Item Planning

Trans Code MD03

Enter material RAW-### and plant DL00 . Use the default planning values, select Display resultsbefore they are saved , so we can see the planning results immediately, then click on the enter icon (

).

The following message will appear at the bottom of the screen:

Depending on the situation, production planning can take a lot of computer resources, so SAP is justreminding you to make sure that you have everything set correctly. Click on the enter icon ( ) asecond time and a screen very similar to the Stock/Requirements screen will be displayed.


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As the material is new and has never been purchased, there is no pricing data available, so the SAPsystem will request pricing data. Enter 8.5 for the Net price and USD for the Currency,

then click on the enter icon ( ) and a warning message will be displayed:

Cick on the enter icon ( ) a second time, then click on the save icon ( ).

Switch back to the session with the Stock/Requirements List and click on the refresh icon ( ) toupdate the data. Not much will change, except that the Purchase Requisition will now be shown as aPOitem.


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Then click, execute ( )

on Where tab, please select the Item OK checkbox, enter raw material (RM00 ) for Stor. Loc , thenclick on the Post icon ( ).


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Switch to the Stock/Requirements list, then click on the refresh icon ( ) to see that the material isnow available. Click on the refresh icon to see that the 400 raw materials are now in storage location10.


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1.6 Goods Issue to Cost Center

When materials are taken out of inventory to be used, this information needs to be recorded andthe cost of the materials removed needs to be attributed to a cost object , which can be a productionorder, a project, a customer order or a cost center. In general, costs should be assigned as closely tothe activity that caused them, but for low cost items, the effort to attribute their cost to a particularcost driver may not be worth the effort. It can be debated whether raw materials fall into this

category, but as it makes the exercise easier to issue the raw materials to a cost center, that is whatwell do.

To issue raw materials to a cost center, follow the menu path:

Menu Path Logistics Materials Management Inventory Management Goods MovementGoods Issue

Trans Code MB1A

Enter:Movement type 201 (consumption for cost center from warehouse)Plant DL00

Storage Location RM00 Then click enter.


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Enter the information shown above, which tells the SAP system that we are going to charge a costcenter for the material, and will be taking the material out of storage location RM00, plant DL00.Click on the enter icon ( ).

Enter NAPR1000 for the cost center, then 100 units of material RAW- ### and click on the save icon () and a message like the following will appear at the bottom of the screen:


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Switch to the session with the Stock/Requirements list and click on the refresh icon ( ). What arethe changes?Available Stock berkurang menjadi 300 buah

1.7 Planning File and MRP Planning Run

Because we have made a change to the stock level of the material, there should be an entry in theplanning file. We can check the planning file for this material by following the menu path:

Menu Path Logistics Production MRP Planning Planning File Entry DisplayTrans Code MD21

Enter RAW-### for material and DL00 for plant, then click on the execute icon ( ).

This will produce the planning file entry for your material:


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The planning file entry means that the SAP system will check to see if a purchase requisition needs tobe created the next time an MRP planning run is performed for the material.

Perform an MRP planning run for the material by following the menu path:

Logistics Production MRP Planning Single-Item, Single-Level

Use the default settings, except select Display results before they are saved.

If you need more details on the MRP planning run, refer to Section 1.3. The results of the planning

run should be like the following:

Note that the goods issue createdan entry in the planning file for

both NETCH and NETPL planning options, respectively


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Switch to the Stock/Requirements List and click on the refresh icon ( ):

The inventory level, excluding safety stock, is 70 units. As the reorder point is 80 units, it wouldappear that an MRP planning run should create a purchase requisition. To see whether this is thecase, perform a planning run again by following the menu path:


Use the default settings, except select Display results before they are saved. Again, if you needmore details on the MRP planning run, refer to Section 1.3. The results of the planning run shouldbe like the following:


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Even though the available quantity is 70, which is below the ROP of 80, no purchase requisition wascreated. Is SAP broken? Is there a configuration setting missing? This question can be answeredwith a little investigation. To start the process, switch to the Stock/Requirements list. By double-clicking on the material number, the material master will be displayed. Select the view MRP 2 .

Note: No purchase requisition was created


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informational value. Both approaches are valid, and the important thing with any software is to beclear how things are calculated by testing it thoroughly .

1.9 Third and Final Goods Issue to Cost Center

To confirm that SAP compares the ROP to the stock level including safety stock, perform a finalgoods issue for 30 raw materials by following the menu path:

Logistics Materials Management Inventory Management Goods Movement GoodsIssue


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See Section 1.6 for details. Switch back to the Stock/Requirements list and click on the refresh icon () to see that the stock level is now below the ROP:

Perform a final planning run by following the menu path:


Use the default settings, except select Display results before they are saved. The results of theplanning run should be like the following:

Click on the save icon ( ) to save the plans. Switch to the Stock/Requirements List and click on the

refresh icon ( ) to see that the newly-created purchase requisition.

Stock is now belowthe reorder point of 80

A purchase requisition is created by the planning run


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Click on the print icon to print the Stock/Requirements list to hand in.

Print out a copy of the Stock/Requirements list to hand in. As you do this, ponder the questions:

What issues might there be when implementing this policy in a productionenvironment?Kemungkinan human error ketika melakukan input data sangat besar. Jika terdapatkesalahan ketika input data, dapat mempengaruhi proses yang lainnya seperti salahmenentukan kapan harus melakukan reorder lagi karena purchase requisition tidakmuncul. Dalam lingkungan produksi yang sibuk, lebih baik mengimplementasi prosedurautomatic reorder point atau forecast-based planning untuk menghindari miskalkulasiatau kesalahan input dari user ketika ingin menentukan kapan harus melakukan reorder.

How will the data be collected?

Data demand didapatkan dari hasil Forecasting. Data berapa jumlah reorder point danberapa jumlah safety stock ditentukan sendiri oleh perusahaan.

What could go wrong?Ketika demand sedang tinggi dan terjadi miskalkulasi penentuan waktu reorder barangsehingga dapat terjadi stockout karena stock dan safety stock tidak dapat memenuhidemand tersebut. Manager salah memperhitungkan jumlah barang yang sebenarnyadimiliki.

Jot down your answers to these questions on the printout.

Lab Module: Consumption-based Planning - ROP

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