MRP

What you need to know about running MRP

So now that we covered some of the basic setups for MRP - let's run MRP and see what happens.

(remember, we're just scratching the surface here...one step at a time)


From VISUAL's Material Planning Window, select Material Requirement Planning from the FILE menu

Visual Material Planning Window

In the following window, you have several options to choose from that will affect how MRP will execute and plan your supply orders. 

VISUAL Material Requirements Planning Window

On the left, you have the options on WHERE you want to run MRP  ...

  • across ALL your warehouses, OR
  • plan each INDEPENDENTLY planned warehouse separately, OR
  • just plan your UNIVERSAL warehouses

 

As for the options on the right, let's start with the first 2 radio buttons ...

Regeneration OR New Change?

Regeneration (1st radio button) processes ALL parts (from the top down) to determine any shortfalls between supply and demand and will generate planned orders for parts accordingly based the defined Order Policy under the part's Planning Tab

Net Change (2nd radio button) looks at only those parts which have had activity since the last time you ran MRP.   Note:  Deleting a planned order of a part is not considered an "activity" on its own - so just know that this activity alone will not flag a part to be included in a Net Change MRP run.

Regeneration should be run at least once a week to ensure that all parts are processed

 

Single Pass

MRP is an interactive and dynamic process - it will evaluate ALL parts until planned orders cover ALL supply shortfalls. 

When MRP generates planned supply orders - these planned supply orders themselves can create demand (for sub-components) that will in turn generate additional planned supply orders

If you select Single Pass - MRP will only do one pass, which could result in parts having newly created demand but may not have planned orders created for them if MRP created the demand after the first pass.
 

Clear as mud?

Let's say that part ABC is used in part XYZ and there is demand on part XYZ...

MRP will evaluate ABC first and see no demand, it will then move on to XYZ and create a planned order.

Only in the second pass will MRP find that there is now demand for ABC and create a planned order for it.

MRP will keep running passes until there is no more shortfalls in supply

So, in a Single Pass scenario, only a planned order for XYZ will be created

Why use single pass?  Well - you may want this if you are wanting to run MRP during production hours and don't want to use up too much system resources evaluating - especially if you have complex, deep and multi-level BOMs - that would require many, many many passes.

 

MRP Exception Marking Limits

This allows you to configure MRP to evaluate based on a horizon or time frame - which you may consider as a "firm" schedule. 

I suggest selecting NO HORIZON - basically have MRP evaluate all demand - regardless of how far out they may be in the future.  You can then easily focus on the amount of orders to look at by filtering on a date range/time frame. 

If you do want to set a horizon for MRP to evaluate- you are free to do so.  The option Plus part leadtime ensures that MRP evaluates demand for a part within the part's leadtime so that planned orders will be created in time - so the horizon then varies for each part.

 

Other Options

The next 2 options, Net on-hand quantities and Apply Min/Max/Multiple, are available to use if you use Advanced MRP and have parts that are Master Scheduled.

If you happen to use Advanced MRP...

  • Net on-hand quantities for master scheduled parts - MRP will subtract nettable, on-hand balances from the total demand.
  • Apply Min/Max/Multiple to master scheduled parts - MRP will use these values (if present) in evaluating and creating planned orders.

 

Exclude On-hold Customer Orders - MRP will exclude these customer orders when evaluating demand

Exclude Unreleased Work Orders - MRP will exclude these work orders when evaluating supply and demand.

Enable netting message - This will display a message if the processing of a part exceeds 10 seconds.  Don't enable this - it just slows down everything

Log MRP - This option will create a log file detailing MRP process and steps taken.  Great source/tool for troubleshooting issues (if any) with MRP and unexpected results

 

Part of the MRP Fundamentals Series (for Infor VISUAL ERP). Be sure to check back soon as I continue further into using MRP in VISUAL

 

What is the Inherit Demand Warehouse Option?

Picking up from where I left off in How to set up Part Planning,

You likely noticed an option under the PLANNING tab in Part Maintenance to set "Do Not Inherit Demand Warehouse" for a part.  What is this?

Inherit Demand Warehouse

Well, it’s something you really only need to be concerned about if dealing with multiple warehouses – with a mix of universal and independently planned warehouses.

What’s the difference between universal and independently planned? Read this

What exactly does Inherit Demand Warehouse mean?  Basically, it allows you to configure how or where demand for a part is to be driven from - meaning from which warehouse. 

For instance, if you look at an Engineering Master/Work Order - demand for component parts can either be driven from the warehouse specified on the EM/WO Header Card (inherit) OR can be driven from the warehouse specified on each individual material card. 

So, if demand for component parts are to be driven by the warehouse specified in the header card - the parts are "inheriting" the demand warehouse of the EM/WO.

There are a couple of places in VISUAL where you can configure a part to "Inherit Demand Warehouse" or not.

On the Material Card (Manufacturing Window), there is a checkbox to set Inherit Demand Warehouse.  PartDWM

  • When CHECKED – demand for the part will be driven from the Warehouse specified on the Header Card (EM/WO).  The Warehouse ID will auto-populate with warehouse id of the EM/WO
  • When UNCHECKED, you can specify (on the material card) the warehouse where the part should be coming

The Inherit Demand Warehouse is checked by default in the Material Card UNLESS you checked the DO NOT INHERIT DEMAND WAREHOUSE of the part under the PLANNING TAB in Part Maintenance. 

PartDWPM1
If you select this checkbox in Part Maintenance - the Inherit Demand Warehouse option in the Material Card becomes unavailable for the part and you can specify the warehouse on the card or as needed at time of transaction.

BTW - you would normally want to Inherit the Demand Warehouse.  But you have the option if your situation calls for it.

 

Next: What you need to know about running MRP

 

 

MRP Fundamentals - How to set up part planning

The most important piece in setting up MRP in VISUAL falls under the PLANNING tab in Part Maintenance.

The first thing you need to be aware of is that you can have a unique set of planning parameters for each of your Independently Planned Warehouses AND one set of planning parameters for your other warehouses deemed Universal

What the difference between Universal and Independently planned warehouses? Read this

MRP Fundamentals - How to set up part planning in part maintenance

 

Warehouse ID
Select the Warehouse ID or Universal you are wanting to set the planning parameters for. Please note that VISUAL will always default to Universal when you first call up a part.

Planner User ID
This is a free form field that can be used for searching and reporting. Basically, you can enter values that you can easily filter on.

Buyer User ID
As with the Planner User ID, this is a free form field that can be used for filtering - however values entered in this field will be maintained in the VISUAL database and existing values can be selected from a dropdown box.

Safety Stock Qty
This is used where you would like to maintain a certain quantity level for a part. You may want to consider this for parts with long lead times. MRP will look at upcoming demand and supply and your projected qty always wants to meet this safety stock quantity.

Leadtime (in Days)
This is the number of days it takes between the time you place a supply order and when the part is received into inventory. Leadtime is always in days. This value is used to compute when to release an order and set the want date of supply orders.

Min/Max/Multiples Of
These fields are here to help you make better decisions and plan more efficiently.

Min - the minimum quantity that MRP will generate a planned order

Max - the maximum amount that the MRP will generate a planned order

NOTE – for clarification, this only caps the quantity of an individual planned order. So, if you have demand for a 1000 units for a part and you have a Max value of 200. MRP will generate 5 planned orders for 200 each. This allows you to better manage your orders.  For instance, you may shop floor constraints where you can only manufacture 200 units at a time – so you would not want your work orders with build quantities greater than 200.

Multiples of – allows you to define the multiple to use when MRP plans an order. For example, if Part A is ordered in multiples of 10, and you have demand for 7, then MRP will generate a planned order for 10.

 

Order Policy
This is the key indicator that will determine how MRP will plan for the part.

Not Planned
MRP will not generate planned orders. It will completely ignore this part. FYI – This is the default setting when creating a part.

Discrete
Most commonly used when first starting with MRP. This setting will have MRP replenish exactly the quantity by which demand exceeds supply. It will plan the supply order to match each element of demand. 

So if you have 3 orders creating demand, one for 2, one for 5 and one for 10 ... MRP will create 3 planned supply orders - with quantities of 2, 5, and 10 respectively

It’s a one to one relationship unless you use min/max/multiple of – then planned orders will reflect those parameters.

Period Supply
MRP will generate planned order to meet a shortfall on a given date – PLUS the number of days you specify in the Days of Supply field

Fixed and EOQ
These settings a basically the same. Regardless of the amount of the shortage – MRP will plan for orders using the fixed amount specified in the Order Qty field

Master Scheduled
Planned orders are generated to meet quantities and dates specified in the Master Production Scheduled. This option is only available if you are using Advanced MRP and dealing with forecasts

 

 

Days of Supply
Used with period of supply

Order Qty
Used with Fixed and EOQ

Order Point Qty
If the part is NOT PLANNED, you can use this field to enter the minimum quantity you want to keep on hand. When it falls below that amount it will appear on the Order Point Report (in the Material Planning Window) for you to place an order. NOTE – MRP WILL NOT plan the order – you need to manually create it when needed

Order Up to Qty
If the part is NOT PLANNED – you can use this field in conjunction with the Order Point Qty field to determine quantity to use to create a supply order.

 

Next: The Inherit Demand Warehouse Option

 

MRP Fundamentals – How to setup your warehouses

Part of the MRP Fundamentals Series (for Infor VISUAL ERP).  MRP basically looks at all your existing demand and supply for your fabricated and purchased parts – and will generate "planned" supply orders for those parts that are short. Simple enough.

Planned supply orders are based on several factors relating to the part, such as:

  • Order Policy
  • Lead Time
  • Existing Inventory (On Hand and Supply Orders)
  • Existing Demand
  • Master Production Schedule

But before we can get into any of these - we need to start at the warehouse.

In Warehouse Maintenance, there are 2 ways you can set up a warehouse that will have an impact on MRP.
 

Universal Warehouse vs Independently Planned Warehouse

MRP Fundamentals – How to setup your warehouses
Warehouse is considered UNIVERSAL when "Independently Planned Warehouse" is UNCHECKED

Universal Warehouses - MRP will treat all universal warehouses as a single unit where inventory is pooled and considered shared - meaning, MRP will net inventory across all universal warehouses based on planning parameters specified for UNIVERSAL (under PLANNING tab in Part Maintenance - we'll get to that in another post)

Independently Planned Warehouses - This option allows you to separate inventory and plan by warehouse.  You can view inventory along with universal warehouses or look at it separately.  These warehouses have their own unique set of planning parameters for associated inventory. 
 

Associating your Parts to Warehouses

You likely know this already - but I only bring this up as I wanted to bring your attention to the Warehouse and Location Status field for a part and what it means to MRP.
 

Part Warehouse and Location - VISUAL ERP

This field can be one of 3 values:

  • Available:  MRP will consider the qty in this location as available and nettable
  • Unavailable:  MRP will not include the qty in this location in its netting
  • On Hold:  MRP will consider the qty in this location as available and nettable.
    (Why, you say?  Well, On Hold items are typically those items going through QA as part of receiving inspection)

 

Next: The Planning Tab in Part Maintenance

 

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