SAP MM Training - MRP1 (Video 9) | SAP MM Material Management Video Lecture

welcome to our next session in sp mm
training so today we'll be starting our
next topic MRP ok so MRP is a bit big
topic and we'll be covering in probably
two and three parts so let us start with
the MRP so the topics that we'll be
covering in today's session will be the
basics of MRP and the planning level in
corruption based planning prerequisite
to for educating the consumption based
planning or MRP difference between
consumption based planning and MRP MRP
types in our recipe system come up with
data in a material master and I'm up a
profile and amateur status and it's
customizing so let's start with the
business example first that where you
will be using this functionality so
suppose you are working on a SP project
as a mmm consultant okay for a company
called ABC Power committed ABC company
wants to use material requirement
planning to optimize its logistic
process okay so basically they wanted
the their materials whether it's an
in-house manufacturing whether it's a
external procurement it should be
planned automatically by the MRP system
and you have been asked to check if
consumption based planning can be used
and which customizing setting therefore
need to be made to make this
functionality working okay sorry
as a sepm M consonant so you will be
checking that what type of MRP type is
relevant for what type of materials or
whatever for the business and what are
the cash margins have been required to
run the MRP system so let us start first
of all we'll start with what is MRP okay
what is MRP what is the purpose of MRP
so Emma P stands for
material requirement planning okay as
the name is saying requirement planning
so it is the whatever requirement is
there from the business from different
departments if the system will be using
this tool to plan all the procurement
process for the in-house or external
automatically if you using them RP
system the main purpose of MRP is to
guarantee material availability a map
editor means also what material is
needed what quantity of the material is
needed and when the middle is it okay so
basically three things it will find out
what module is required how much and
when okay but there after one week after
10 days tomorrow when when it is
required okay so let's have a first look
at the overall Emma people Caesar okay
so how the overall forces will work and
then we'll go into depth of each of this
procedure okay now this is a term in SI
PPP module person planning module which
is known as Bill of material okay they
set up a master which is known as Bill
of material okay what Bill of material
is so basically like if you creating a
product okay that product can be could
have been created from different
components okay so if you look at this
screen so if you look here so she say
finish product one so whatever product
you're creating here okay it could be
say this is made from two different
products
okay so assembly 1 and component 2 okay
and again the assembly one should maybe
it's used is created by from two
different materials may be this one and
that one
okay that's Bill of material so that
means to make this product what it
require is you require this product
assembly one component to that and that
whatever is required okay so that's Bill
of material to create one material first
you need the basic product ok raw
material you can say
look a same thing you can see even you
can see that different level of code
that's up that's a top level that's a
top level you can see okay
level zero zero zero and this level
under that level you can see this this
product is made from seed assembly level
one okay and again at some level one is
made from another component called a
component one and component okay so that
second level and this is the third level
okay so this is a bit of material okay
now we'll take another example if you
look at this screen if you just say
think about a company who is
manufacturing a PC or maybe a laptop
okay this is PC okay now to make the PC
what are the different different
requirements if the company wants to
make a PC they need what the needs they
need a processor okay they need a
keyboard they need a monitor again they
also manufacturing the monitor but to
manufacture the monitor what do they
need they to manufacture it is they need
part one have another part to another
part three inner part four okay so these
are all basically called Bill of
material that means to manufacture a PC
you need all these things and they also
have a child level Bill of material okay
now that comes up a thing is clear what
is Bill of material okay now we look at
the overall MRP procedure
so what MRP does now let me go back to
one screen back now again if you look at
the machine here say to make the PC you
need say a keyboard and a monitor okay
so maybe the monitor is manufactured
internally in the company okay so I will
call it I I stands for internal okay
internal manufacturing and keyboard
maybe say this is external procurement
that means the company is making the PC
using the different components but some
of the components they bind from outside
from the vendor some of the components
they manufacturing inside for example
manufacture the company the company is
manufacturing inside okay in the
production department
however the keyboard is bought from the
external vendor okay so there are two
types of procurement basically in-house
sorry yep for procurement wanna be is in
house and it can be external whether you
want to buy the fruit from outside
whether you're bound to buy the port
from inside okay or we you want to
manufacture a person product within that
company inside okay so even let me even
let me show you a material master first
and then I'll come back to the next
slide okay so in the previous topics we
have seen that how we can manufacture
how we can create a material master
record okay so let me open an existing
product
so if I go there on 0-2 and we created
some material earlier so if I call say
ABC Michelle enter enter enter
so I show you where you mention that
whether the product is in house
manufactured or external procurement if
you go to em up it one or two tabs here
in under MRP two tab you can see
procurement type is F if you open that
you can see F stand for external
procurement okay procurement from the
external vendor he stands for in-house
that means within the company movement
for children look in the production
annex miss can be both sometimes can be
both but you use either external or
in-house okay so here you can see as I
said it can be in-house it can be
external now when they must be run when
I am a parent what MRP will do is
anything which is anything which is a
clutch in house okay say in house what
is in house here you have in house here
we have external okay so MRP will run
and anything which is in house it will
create a plan order for that okay plan
order and plan order will be converted
to a purchase requisition sorry
production order okay and if it is
external perfumer so this is internal
manufacturing or internal procurement
and on the right hand side you have
external okay if it is external the
system will automatically you can create
a plan order and it can then convert can
be converted to a particular equation
okay this is one example another example
which can be which is most commonly used
so what will happen is let me write down
here
MRP overall so see this okay so if your
product is
you