Configuring Options for Use in MRP

MRP (Materials, Requirements, Planning) is a production planning and inventory control system used by companies to manage their manufacturing processes.

Process Definition:

MRP (Materials, Requirements, Planning) is a production planning and inventory control system used by companies to manage their manufacturing processes. MRP systems are designed to ensure materials are available for production and to ensure products are available for delivery to customers. In addition, MRP helps companies maintain the lowest possible material and product levels, plan manufacturing activities and manage delivery schedules.

Most MRP options are set on the Item Master of a Part. 

Process in Deacom:

Configuring System Defaults

  1. Navigate to Inventory > Options > Inventory tab:
    1. Enter a value in the ‘MRP Decimals’ field to indicate how many decimals the system should use when displaying results in MRP.
      1. Note: this is normally set to “0”.
    2. Select a ‘BOM MRP Pre-Filter’.
      1. Note: this field sets a pre-defined Time-Phased MRP pre-filter template to be used when MRP reports are generated via the BOM MRP button when viewing BOMs.
      2. Pre-filter templates are created using the ‘Settings’ button on the pre-filter with all desired fields completed.
        1. The pre-filter template must be saved for “All Users”.
      3. If no selection is made in this field, the system will run an Instant MRP report.
    3. Click Save and Exit.
  2. Navigate to Purchasing > Options:
    1. Select whether Purchase Orders created through MRP should be created as Requisitions or regular Purchase Orders via the ‘MRP Order Type’ field.
    2. Click Save and Exit.
  3. Navigate to Sales > Options > Scheduling tab:
    1. Select a specific pre-filter to use in MRP via the ‘SO MRP Pre-Filter’ field.
      1. Note: Sets a pre-defined Time-Phased MRP Pre-filter template to be used when MRP reports are generated via the ‘Order MRP’ button when viewing Sales Orders.
      2. Pre-filter templates are created using the ‘Settings’ button on the pre-filter with all desired fields completed.
        1. The pre-filter template must be saved for “All Users”.
      3. If no selection is made in this field, the system will run an Instant MRP report.
    2. Select an option from the picklist in the ‘SO MRP Show All’ field.
      1. Note: this field is a pick list used to set the default value for the “Show All” field when MRP reports are generated via the ‘Order MRP’ button when viewing Sales Orders.
      2. Options are:
        1. Both – demand related to all Sales Orders and Jobs is included.
        2. Jobs – demand related to all jobs is included.
        3. None – only demand related to the selected Sales Order is shown.
        4. Sales – demand related to all Sales Orders is included.
    3. Click Save and Exit.
  4. Navigate Production > Options > Other tab:
    1. Select a specific pre-filter to use in MRP via the ‘Job MRP Pre-Filter’ field
      1. Note: sets a pre-defined Time-Phased MRP pre-filter template to be used when MRP reports are generated via the ‘Job MRP’ button when viewing Jobs.
      2. Pre-filter templates are created using the ‘Settings’ button on the pre-filter with all desired fields completed.
        1. The pre-filter template must be saved for “All Users”.
      3. If no selection is made in this field, the system will run an Instant MRP report.
    2. Select an option from the picklist in the ‘Job MRP Show All’ field.
      1. Note: this field is a pick list used to set the default value for the “Show All” field when MRP reports are generated via the ‘Job MRP’ button when viewing Jobs.
      2. Options are:
        1. Both – demand related to all Sales Orders and Jobs is included.
        2. Jobs – demand related to all jobs is included.
        3. None – only demand related to the selected Job is shown.
        4. Sales – demand related to all Sales Orders is included.
    3. Click Save and Exit.

Configuring Item Master for MRP

  1. Navigate to Inventory > Item Master.
  2. Enter the desired ‘Part Number’.
  3. Click Modify.
  4. Review the following sections. Click Save if any modifications were made.

MRP Tab

On the MRP tab, fill in the values for the fields below. 

  1. Min Quantity 1/Min Quantity 2
    1. Min Quantity 1: This is your Safety Stock or Re-order point. This will drive MRP. 
    2. Min Quantity 2: This is your seasonal reorder point. You can toggle between Min 1 and Min 2 on the MRP Pre-Filter. One should be set to “0” if you want the option to not have a Safety Stock.
    3. Note: this is in Stock Units.
    4. This inventory is to cover those times when you would run out of inventory due to higher than expected demand or insufficient planning.
    5. MRP will attempt to never let you drop below this stock level.
    6. Having two figures allows you to define different min levels for high demand season vs. lower demand season.
      1. You select which minimum to consider each time your run MRP.
    7. ON MRP PRE-FILTER: on the Sources tab, this field is ‘Reorder Point.’
      1. You can choose ‘Reorder Point 1’ or ‘Reorder Point 2’ which align with Min Quantity 1 and Min Quantity 2 on the Item Master Record.
  2. Max Quantity 1/Max Quantity 2 
    1. Max Quantity 1: This is the default level that computer-generated POs should not exceed. In MRP, the Create PO function will order Max Quantity 1 – Net On Hand. If this is empty, MRP will order enough to reach the Min. Quantity 1. 
    2. Max Quantity 2: This is your seasonal max quantity.
    3. Note: this is in Stock Units.
    4. PLEASE NOTE: items should only have a Min or Max quantity listed – not both.
    5. With a maximum level set, whenever MRP triggers a suggestion, it will suggest enough supply to bring you up to your Max.
  3. Suggestions Before
    1. Ability to define the number of buckets to create PO/Job when looking at more than 1 bucket with suggestions in MRP.
    2. With long lead times, the user needs to look at several buckets when planning but often times does not want to create POs/Jobs for all showing buckets.
    3. Example: I enter 4 here (meaning I only want to create POs/Jobs for 4 buckets (weeks) out).
      1. I run MRP for 8 buckets (weeks). I see my results for 8 weeks, but when I create a PO, I only create it for the first 4 weeks.
  4. PO Quantity
    1. In MRP, the Create PO function will modify the order amount to be a multiple of the PO quantity that takes the stock level just above the Max Quantity. This is not used often.
    2. Note: this is in Purchase Units.
    3. Defines the default order quantity, in Purchase Units, for purchased material.
    4. If the ‘Split POs By’ field is set to “PO Quantity”, Purchase Orders created via MRP will be split by the quantity defined in this field with one exception (below).
  5. Min Purchasable
    1. Minimum order quantity that will be allowed on purchase orders created for this part.
    2. Note: this is in Purchase Units.
    3. If a quantity is entered below the value defined in this field, users will have two options based on their security settings.
      1. Users with the security setting, “Purchasing -- allow non-incremental quantities” set to ‘Yes’ will be promoted if they wish to continue.
      2. Users without this security will be promoted that the quantity entered is below the minimal and will not be able to proceed.
    4. This value is also used for MRP suggestions, meaning if the suggestion for a purchased item is truly ‘7’ and this field is set to ‘10’, the suggestion will be ‘10’.
  6. Incremental PO Qty
    1. All quantities entered on POs for this item must be entered according to the increment specified in this field.
    2. Note: this is in Purchase Units.
    3. Defines the increment at which POs for this part must be created.
    4. If the suggestion for a purchased item is truly ‘7’, the ‘Min Purchasable’ is set to ‘8’, and this field is set to ‘10’, the suggestion will be ‘10’.
      1. Specifically, the suggested amount is the difference between the Total Net and Maximum Quantity, in multiples of this field or the ‘PO Quantity’, if this field is set to zero.
      2. If both ‘PO Quantity’ and this field are set to zero, a quantity of 1 is assumed.
      3. In addition, if the ‘Split POs By’ field is set to “Incremental PO Quantity”, Purchase Orders created via MRP will be split based on the quantity in this field.
  7. SO Quantity
    1. Defines the default order quantity, in Sales Units, for sold materials.
    2. Note: this is in Sales Units.
    3. For manually entered SOs, the default order quantity will be populated by this field.
  8. Min Saleable
    1. Defines the preferred minimum quantity for which SOs (and Inter-Company Transfers created via MRP) should be created.
    2. Note: this is in Sales Units.
    3. MRP will round up the suggestions to the minimum saleable quantity if it falls below.
  9. Incremental SO Qty
    1. Defines the increment at which SOs for this Part must be created.
    2. Note: this is in Sales Units.
    3. If the suggestion for a saleable item is truly ‘7’, the ‘Min Saleable’ is set to ‘8’, and this field is set to ‘10’, the suggestion will be ‘10’.
  10. Job Minimum
    1. Defines the default minimum batch size, in Stock Units, for produced materials.
    2. Note: this is in Stock Units.
    3. If the ‘Split MRP Jobs By Job Quantity’ flag (on Properties tab) is NOT checked, this value WILL NOT BE enforced.
  11. If there is a job min, any suggestion will be rounded up to at least the job minimum quantity.
  12. Job Maximum
    1. Typically used to limit a job to the maximum size that can be handled by a batch tank or vessel.
    2. Defines the default maximum batch size, in Stock Units, for produced materials.
    3. Note: this is in Stock Units.
    4. If the ‘Split MRP Jobs By Job Quantity’ flag (on Properties tab) is NOT checked, this value WILL STILL BE enforced.
  13. Incremental Job Qty
    1. Defines the increment at which Jobs for this Part must be created and therefore constrain Job quantities to a multiplier.
    2. Note: this is in Stock Units.
    3. Used in conjunction with ‘Job Minimum’ and ‘Job Maximum’.
    4. If you have an Incremental Job Qty set, MRP calculates demand and then rounds up to the next increment.
    5. When working in conjunction with a Max, MRP will suggest enough supply increments to meet or exceed your max.
  14. Lead Time
    1. Total time required to procure or produce an item. An item’s lead time determines in which bucket or time period the suggestion(s) and in certain cases indirect requirement(s) will appear.
    2. Defines the time, in calendar days, required to manufacture or receive the material.
    3. For manufactured make-to-order items, this field represents the time it takes from the release of an order to produce and ship the material.
    4. For received items, this field represents the time it takes from release of an order to receive the material into On Hand inventory.
    5. Used in conjunction with the ‘QC Lead Time’ and ‘Safety Days’ fields to determine total overall lead time.
  15. QC Time
    1. This is the QC testing lead time. QC Lead Time is factored into MRP and is useful for raw materials that require more in-depth testing. QC Lead Time impacts the purchasing lead time that is necessary for a part. 
    2. Defines the time, in calendar days, required to complete QC Tests.
  16. Safety Days
    1. Defines the time, in calendar days, used as a buffer to ensure material is ready for use by the specified date.
    2. Note: ‘Safety Days’ is only used for manufactured items.
    3. Affects the Job ‘Planned Finish’ date – the system will take the job ‘Due’ date and subtract the value in this field to calculate the “Planned Finish” date.
    4. Used by Time-Phased MRP when making suggestions.
      1. Example: assume a finished good contains a “Safety Days” value of ‘7’ and a BOM containing Raw Materials. If a SO with a “Due to Ship” date is entered, then running MRP for the Raw Materials on the BOM should display with suggestions 7 days before the “Due to Ship” date on the order.
  17. Job MRP Group
    1. This feature is designed so that when the “Create Job” button is used in MRP, all items belonging to the group will be added to the same production job.
  18. Split POs By
    1. Pick list used to define how the quantities on Purchase Orders created via MRP will be split.
    2. Options are:
      1. None – Purchase Orders created in MRP are not split
      2. PO Quantity – Purchase Orders created in MRP are split by the item’s Purchase Order Quantity
      3. Incremental PO Quantity – Purchase Orders created in MRP are split by the item’s “Incremental PO Quantity” as defined on this tab.
  19. Split Jobs On
    1. Determine the consecutive job convention when creating a Job in MRP, provided ‘Split Jobs by Quantity’ is also checked on the Properties tab.
    2. How to schedule Jobs created through MRP.
    3. Options are:
      1. Same Day – All Jobs created in MRP will schedule the same day, if possible.
      2. Decrementing Days – Each consecutive Job created in MRP will schedule one available day after one another, according to valid days set up in the shop schedule.
  20. Forecast Backwards Until
    1. Number of backward days that sales orders containing this item will consume forecasts in MRP.
    2. Example: A sales order has a due to ship date of 10/15 and the value in this field is set to 2. When running MRP with a bucket type of days for this item, forecasts will not appear on 10/14 or 10/13.
    3. Used in conjunction with the ‘Forecast Consumption’ field on the MRP Pre-filter.
  21. Forecast Forward Until
    1. Number of forward days that sales orders containing this item will consume forecasts in MRP.
    2. Example: A sales order has a due to ship date of 10/15 and the value in this field is set to 2. When running MRP with a bucket type of days for this item, forecasts will not appear on 10/16 or 10/17.
    3. Used in conjunction with the ‘Forecast Consumption’ field on the MRP Pre-filter.

Properties Tab

On the Properties tab, fill in the values for the fields below. 

  1. Include in MRP
    1. Purchased Items: Must be checked for items that will have POs created through MRP.
    2. Manufactured Items: Must be checked for items that will have Jobs created through MRP and for BOM Line items to show up in MRP to be produced or purchased.
  2. Split MRP Jobs By Job Qty
    1. If checked, when creating Jobs via MRP, the Jobs for this Part will be created based on the quantity entered in the ‘Job Maximum’ field of the Item Master MRP tab, and the number of Jobs created will be enough to fulfill MRP's Suggested amount. If the Part contains a quantity in the ‘Job Maximum’ field on the Facilities tab, and the MRP report is filtered by Facility, the system will use this quantity when Jobs are created in MRP.
  3. Create Separate MRP Job
    1. If checked, when creating Jobs via MRP, Jobs for this Part will be created separately from Jobs for any other parts.
  4. Include Sub-Assemblies in MRP Jobs
    1. If checked, when creating Jobs via MRP, the system will evaluate this Part's BOM, and any items flagged as ‘Manufactured’ will be added to the same Job(s). Specifically, the system will check all levels of the BOM and include Subassemblies deeper than the first level.
      1. Sub-assemblies or Components required to make the selected Finished Good do not have to be in the MRP results list to be added to the Job.
      2. If multiple jobs that have the same sub-assembly are set to include sub-assemblies in MRP, the sub-assembly lines on the created jobs will be combined into a single line.
  5. Create Separate MRP PO
    1. If checked, when creating Purchase Orders via MRP, Purchase Orders for this Part will be created separately from Purchase Orders for any other Parts.
    2. This will place this item on a separate, individual purchase order – even if multiple items are ordered from the same vendor.
  6. Consolidate All Buckets for MRP PO Creation
    1. Having this checked will tell MRP to generate a single PO for the total quantity suggested across ALL buckets dated to arrive in time to satisfy the first bucket with a suggested quantity.
    2. If checked, MRP will generate a single Purchase Order for the total quantity suggested across all buckets, dated to arrive in time to satisfy the first bucket with a suggested quantity.
    3. Example: MRP is run for six weeks for Part A. The suggested quantities for weeks two, four, and five are 100, 100, and 200, respectively. If the user selects the Part and clicks the "Create PO" button within MRP, the system will create one Purchase Order for a quantity of 400 with a Due to Dock date set to the beginning of week two. If this flag is not checked, using this example, MRP will create three Purchase Orders with a quantity of 100, 100, and 200 and each Purchase Order will have a Due to Dock date set to the beginning of weeks two, four, and five.
  7. Create Separate MRP Inter-Co Xfer
    1. If checked, MRP will generate a single Inter-Company Transfer per item (e.g., multiple ICTs).
    2. If unchecked, MRP will generate a single Inter-Company Transfer will ALL items (e.g., 1 ICT).
  8. Plan QC During MRP Job Creation
    1. If checked, when creating a Job via MRP, the system will check for Customer Part Cross References containing Quality Control Groups and display the Quality Control Tests for the customer part in the MRP QC Planning form.
    2. Used in conjunction with the Planning QC in MRP process, which is designed to allow companies to view demand in MRP and make decisions pre-production about what Jobs will fulfill which Sales Orders and customer quality specifications.

Adding MRP Groups

MRP Groups are used to group together items that share similar characteristics. This feature is designed so that when the "Create Job" button is used within MRP, all items belonging to the group will be added to the same Production Job. This feature should not be used if the "Create separate MRP job" flag is checked on the Item Master Properties tab. Once created, MRP Groups can be assigned on the Item Master MRP tab (discussed below).

Note: If all items are selected and the "Create Job" button is used, all items without an MRP Group will be placed together on a single Job.