MRP on SAP S/4 HANA: Insight to Action
Material Requirement planning key process in production to maintain optimized level of inventory while producing the product at expected timeline and cost. SAP has versatile Material requirement planning tool which has served as most useful for years. Increasing inventory cost improved computing capability brings the expectation of further improvement of MRP.
These are few challenges with current MRP tool:
- Long and resource intensive MRP run means a periodic and batch process.
- New Demand and Supply changes make MRP plan immediately outdated.
- No real time single view for material information and shortages.
- Navigation to multiple ERP transaction to evaluate solution alternatives.
Improving Manufacturing to next level will need below goal to be achieved:
SAP S/4 HANA as digital core is capable to execute data intensive MRP process with unprecedented speed. MRP Live (MD01N) optimizes process to reduce MRP run time up to 10 fold and makes MRP Fast, Simple and Cross Plant.
S/4 HANA 1610 is not just about the speed of MRP execution but also provide Smart solution to manage material shortages and other requirement around MRP. In scope of this blog we will discuss FIORI Apps available in S/4 HANA 1610. Below is snapshot of All MRP related FIORI app available with 1610.
Material availability can be influenced by several factors like delayed material status, Sales Order fulfillment, change in customer order and several others. MRP controller should be aware of real time material shortage situation.
Manage Material Shortages
With S4 HANA FIORI apps MRP Controller will see all relevant information side by side allowing him to have quick look and meaningful insight to take immediate action.
Below is snapshot of Material shortages for the MRP Planner.
This app highlight issue across thousands of material stock situation. MRP Planner has option to check stock requirement list from the same app.
Solution doesn’t only show the material shortage situation but also recommend solution with option to simulate the possible solution and check viability.
Insight to action capability of solution help to resolve the issue before it happens.
Manage Change Requests – MRP
Change request can be raised when using app for managing material and uncovered requirement. App for new, requested and answered change request are available MRP Planner.
Proposed changes can be requested from vendor and status can be updated from Answered to Closed upon response of vendor.
Email can be sent to vendor and on their response changes to Purchase order or stock transfer order can be applied.
Manage Production Order
Production order can also be managed from MRP cockpit. Manage Production order app provide list of your order with uncovered items.
Individual production order at app has Stock Requirement list, Component info, Milestone, Material overview and order detail. User can also navigate to fact sheets and back end transaction.
Manage Internal and External requirement:
There are separate apps available for Internal and external requirements. MRP controller can check the coverage of component required for in-house Production Order, Process order, Maintenance order and network order. Solution recommendation are available for handling shortage situation similar to material Shortages app.
Manage external requirement app provide view of uncovered and delayed items required for sales order and STO. App recommend solution to overcome the situation with preview capability.
Display MRP Material Issues:
This app provides view of material for which issues occurred in MRP execution. Planner can get the information to analyzes the issue with material for which problem occurred in the planning run.
MRP scheduling and Key figures:
Planner can schedule MRP from Fiori app and review the status of the MRP execution.
MRP Key Figures:
Exception handling based on real time data and early identification of issues with different materials improves material flow and reduce lead time of product development.
Transformed user experience for the material planner has great potential to boost Planner productivity. Simplified and Insightful FIORI Application gives delightful user experience to the Material Planners.
Well written blog!
It clearly differentiate the quantum improvements from classical MRP features Vs SAP S4 HANA capabilities. Easy to consume flow of thoughts maintained.
Well done It validates my own tests in MRP analysis. Nevertheless, one function is not shown so far, the ‘Accept shortage’ option, that enable planner to mark an item where no obvious solution can be proposed for now.
The Accept shortage and revoke shortage acceptance are not well documented so far by SAP, and it is replacing the Indicator flag that is existing in MRP list in classical MRP feature.
Good job !