3.3    Material Requirements Planning

MRP has been completely overhauled in SAP S/4HANA. MRP is an established technology used by many companies over many years that is dependent on long-running jobs and only provides static information on a daily or weekly basis. With the performance enhancements to the MRP job and the introduction of the SAP Fiori app MRP Cockpit, the planning function has been redefined in SAP S/4HANA.

This section highlights the performance changes and their impacts on how MRP is run, as well as the simplified sourcing functionality. We’ll also deep dive into the new SAP Fiori apps used within the MRP Cockpit and how they influence planner operations.

3.3.1    Performance Improvements

Many factors influence the duration of an MRP run, such as the number of materials, the complexity of the BOMs, and the total dependent requirements. To speed up the performance of the MRP runs, SAP has removed the aggregation functions traditionally stored in tables RQHD and RQIT in addition to the table MDRI.

3.3.2    Simplified Sourcing

With SAP S/4HANA, the process of source determination has been simplified significantly. The possible sources of supply have been reduced to the following: production versions, delivery schedules, purchasing contracts, and Purchase Info Records (PIRs).

Here are some examples of functional changes. Production versions are the only source of supply for in-house production materials. The material master attribute selection method has been removed (table field MARC-ALTSL). Subsequently, routings are determined via the production version versus previously allowed functions in the SAP Business Suite logic.

For purchased materials, the functionalities for source list and quota arrangements have also been changed. Quota arrangements are always considered, and source list management has changed. If a valid purchasing contract or info record exists, MRP will consider this record even if it’s not updated in the source list.

3.3.3    Material Requirements Planning Cockpit

Redefining the MRP process includes more than changes to the technical mechanics of the MRP run; it also includes a completely redefined user experience for the material planners. The MRP Cockpit is a series of SAP Fiori apps developed to provide the planning group with all relevant information in one convenient location. The MRP Cockpit can be customized for each MRP controller.

Within this SAP Fiori app, the material planner can view and react to all material planning situations, including material shortages, upcoming material shortages, delayed inbound material, and current stock situations.

Manage Material Coverage App

The Manage Material Coverage app is very similar to the traditional MRP stock requirements list view transactions. This SAP Fiori app allows planning to see the current stock situation for a material in a linear model. It shows all planning objects in SAP S/4HANA and allows the planner to make decisions on material positions (see Figure 3.11).

The Manage Material Coverage app also offers a display of the inventory position in a chart format (see Figure 3.12). The chart format display shows a linear model by day of inventory positions. When the inventory positions drop below zero, this acts as an indicator to the planning group that action is needed to resolve the potential shortage.

Figure 3.11    Manage Material Coverage App

Figure 3.12    Manage Material Coverage App: Table View

This SAP Fiori app also offers material information. The Material Information tab shows the inventory position via a Stock Availability status bar (Red – Yellow – Green), as shown in Figure 3.13. This inventory position status bar is a common tool offered in numerous planning apps.

Figure 3.13    Manage Material Coverage App: Material View

The Change Planned Order app in SAP S/4HANA allows the planner to change planned orders directly from the app landing page (see Figure 3.14).

All of the standard functionality to modify a planned order in the SAP Business Suite exists in the Change Planned Order app. Functions such as firming the planned order or changing the dates are all available in the app (see Figure 3.15).

Figure 3.14    Change Planned Order App

Figure 3.15    Change Planned Order Detailed Scheduling Tab

The Display Production Orders app in the SAP S/4HANA allows the planner to view existing production orders (see Figure 3.16). This app is very similar to Transaction CO03.

Figure 3.16    Display Production Orders App

Monitor Production Orders

The Monitor Production Orders app is provided to allow a planner to view relevant production orders to determine if all production is on schedule for completion (see Figure 3.17).

Monitor Internal Requirements

With the Monitor Internal Requirements app shown in Figure 3.18, you can ensure that components are available in the right quantity and in time so that internal requirements originating from production orders, process orders, maintenance orders, and network orders can be fulfilled. You can specify a shortage definition to determine which receipts and requirements are included in the coverage calculation as well as a time horizon to limit the scope you want to check.

Figure 3.17    Monitor Production Orders App

Figure 3.18    Monitor Internal Requirements App

Monitor External Requirements

With the Monitor External Requirements app shown in Figure 3.19, you can monitor the uncovered requirements originating from sales orders and stock transport orders in a selected area of responsibility. You can specify a shortage definition and a time horizon to determine which uncovered external requirements you want to check.

Figure 3.19    Monitor External Requirements App

Net Segments and Net/Individual Segments

When using the Net Segments app, all of the planning elements active for that material are summed and displayed as one total line. When using the Net/Individual Segments app, the specific planning elements that are influencing the planning run are displayed on each line.

Monitor Material Coverage

With this SAP Fiori app, you can monitor all the materials in a selected area of responsibility (see Figure 3.20). You can specify a shortage definition to determine which of the materials have shortages. You can use the default filter Time till Shortage to check the coverage of materials within a specific time frame.

Figure 3.20    Monitor Material Coverage App

Display MRP Material Issues

With this SAP Fiori app, you can view materials which has issues in the last MRP run (see Figure 3.21). This tool is used by production planners to verify that all materials in their scope of planning have been planned. Certain data settings or unintentional system settings can prevent items from being planned. This app shows what materials were excluded from the planning run. This app also includes the needed information to address the issue that prevented the item from being planned.

Figure 3.21    Display MRP Material Issues App

3.3.4    Management of Change Requests

Management of change requests is a suite of SAP Fiori apps that allow for a smooth handoff between planning and procurement. This function allows planners to view procurement items and propose changes to the purchased items. These changes go to the procurement department and/or vendor for approvals.

With the Manage Change Request app, you can follow up on changes you’ve requested from your vendor as well as place requests for changes you’ve collected. You create change requests when using the apps for managing materials or uncovered requirements. You can request that the vendor change the quantity or delivery date in a purchase order or stock transport order so that material availability can be ensured and customer requirements can be fulfilled. At the end of the process, you either apply the changes, which automatically updates the order, or you discard the request.

The change requests are managed in three statuses: New, Requested, and Answered. There is a unique SAP Fiori app for each status in addition to an app for all statuses (see Figure 3.22).

Figure 3.22    Manage Change Requests: All App

3.3.5    Integrated Production Planning and Demand Scheduling

Another major advancement in SAP S/4HANA is the inclusion of the traditional Advanced Planning and Optimization (APO) Production Planning and Demand Scheduling (PP/DS) functionality. This functionality is included in the standard SAP S/4HANA offering. This embedded functionality still requires the Core Interface (CIF) to send master data to PP/DS, but the transactional data and execution are available in PP/DS in real time. In addition, a number of SAP Fiori apps have been included to help manage the PP/DS functionality.

Monitor Capacity Utilization

The Monitor Capacity Utilization app is included to help monitor resources within a specific responsibility group (see Figure 3.23). The list provides you with a quick overview of which resources are already being fully utilized or have a capacity overload, so you can react quickly to critical situations. Furthermore, you can easily discern which resources have a capacity underload and whose utilization is in the normal range.

Production Scheduling Board

The Production Scheduling Board app provides access to Model Mix planning from PP/DS (see Figure 3.24). This functionality is planned as the long-term replacement for many SAP ERP classic planning functionalities.

Figure 3.23    Monitor Capacity Utilization App

Figure 3.24    Production Scheduling Board App

3.3.6    Demand-Driven Replenishment

SAP S/4HANA introduces the concept of demand-driven replenishment to offer new tools to help modern organizations change.

Demand-driven replenishment provides the ability to classify the products according to demand history versus traditional forecasting.

Demand-driven replenishment consists of a number of steps. First, is the identification and categorization of relevant materials for demand-driven replenishment. Second is the determination of buffer stock levels. Third is the execution of demand driven MRP and review of MRP results.

The steps mentioned above are supported by a number of SAP Fiori apps. The identification and categorization of demand-driven replenishment materials is supported by the Schedule Product Classification, Mass Maintenance of Products, and Schedule Lead Time Classification of Products apps. The determination of buffer stock levels is supported by the Schedule Buffer Proposal Calculation and Manage Buffer Levels apps. The running of demand-driven MRP is executed using the standard MRP cockpit suite of apps.