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Version: 8.0

MRP : material requirement planning

Introduction​

Material requirement planning is a set of techniques that uses bills of materials, inventory status, and the master production schedule to calculate component requirements.

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The following new feature has been added since version 8.0:

A new safety margin on purchase order and manufacturing proposals has been added. This feature allows you to add a safety margin between the requirement date and the MRP proposal date.

Launching a material requirement planning​

Once launched, the MRP results are presented in a list, grouped by product and with a due date in ascending order, starting with the current date.

The system takes the current available stock and processes the various work in progress (Purchases/Sales/WBS). As the system processes the work in progress, the MRP issues proposals if the quantity in stock falls below 0 or, if a stock rule exists, below the minimum quantity described by that rule.

Access: Stock management → MRP → MRP → New

  1. Give it a name.

  2. Enter the dates. Please note that the end date of the calculation is very important, as it allows you to stop the calculation by setting a deadline.

  3. Select the location where the calculation will be performed in the ‘Stock location’ field.

  4. In the Products table, enter the products.

caution

MRP includes several filters.

You can filter by:

  • Product

  • Category

  • Product family

  • Customer order

  • Sales forecasts

Please note that customer orders and customer order lines can now be filtered according to their billing status.

  1. Run calculation: once you have selected the items on which you want to perform the calculation, start it. Click on Tools → then click on the ‘Run calculation’ button in the taskbar.

  2. You will then see the results. In the results, you will find the stock available at the time the calculation was started. In the results, you will also be able to view the forward dates as the calculation encounters work in progress or seeks to determine requirements. For example, you will be able to view past purchase dates (the date will be either today's date or an earlier date).

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Cumulative quantity: in the results, you will find the ‘Cumulative quantity’ column. These are the stocks that change over time (planned or placed orders, etc.).

  1. In the results list, you will see blue lines. These are production order proposals. These blue lines are proposed by the MRP, while the black lines are outstanding orders that have already been recorded.
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Requirement/production proposal: the system has sought to manufacture products and therefore needs the components.

Look for the ‘Related to’ column: in this column, you can trace the date relating to the product. The ‘Linked to’ column is next to the ‘Max level’ column, which also shows the level (status) of a product.

In other words, the ‘Linked to’ column tracks the date of the product, while the ‘Max level’ column shows the level of the product, from a manufacturing order to the finished product (from level 2 to 0).

The different levels are:

Level 2: a product searching for components

Level 1: refers to a semi-finished product

Level 0: the product is finished and available for sale

When you have different sales forecasts (forecast sales/requirements), you will also have production order proposals. You will see a difference between them of, for example, two days: this is the time scheduled for manufacturing the product. The forecast sales / requirements date is the estimated date of sale.

A forecast generates a production order proposal.

tip

Forecasts are made for one of two reasons: the accumulated quantity will drop to zero. However, the system does not accept negative stock, so proposals will be made to meet the needs.

Stock rules may impose a minimum quantity.

The black lines mean work in progress. Work in progress will impact stock. As a result, the system will seek to propose either production orders for semi-finished products or purchase orders for components.

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This information comes from the product sheet on which the procurement method is indicated (e.g. ‘Produce’).

For example, if the refill type selected is ‘Purchase’, the requirements calculation will generate supplier quotations with draft status. If it is ‘Produce’, the system will generate production orders with draft status.

A product can be excluded from the MRP calculation on the product sheet: in the Stock tab, tick the ‘Exclude from MRP’ box.

Generate replenishments from the MRP​

Still on the MRP sheet, after calculating the result lines, you can generate refills from the MRP.

  1. Click on the Tools icon.

  2. You can generate all refill proposals using the ‘Generate proposals’ button, or do it individually by clicking on each proposal.

Forecasts​

Access: Stock management → MRP → Forecasts

From this menu, you can define short-, medium- and long-term sales forecasts.

Forecasts allow you to assign a location to a product on a given date and record sales forecasts.

As a reminder, forecasts are made for one of two reasons:

  1. The accumulated quantity will drop to zero. However, the system does not accept negative stock, so proposals will be made to meet the needs.

  2. Stock rules may impose a minimum quantity.

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Please note that a forecast generates a production order proposal.

Types of work in progress​

Access: Stocks → MRP → Work in progress types

The MRP uses different types of work in progress to run its algorithm and suggest supplies to meet requirements. The different types of work in progress affect the calculations. In the list of work in progress types, you will find black lines (work in progress present in the ERP) and blue lines (MRP suggestions).

  • The black lines correspond to available stock/firm purchases/firm sales/sales forecasts. These outstanding items are specific to the ERP. For example: a firm sale removes stock from the inventory.

  • The blue lines correspond to purchase proposals/manufacturing order proposals/MPS proposals. These are types of outstanding items that are similar to the proposal made by the MRP. For example: a purchase proposal adds to stock.

This logic is visible from the MRP: on the result lines, you will see outgoings (i.e. actions that reduce the quantity in stock) and purchases, which are actually incoming items that will increase stock.

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MPS proposal represents the requirements defined in advance by the Production Master Plan. For these requirements to be taken into account, the MPS scenario must be validated. Based on these requirements and other work in progress, the MRP will issue proposals.

Integrate events without a date​

Events without a date correspond to supplier and customer orders without a delivery date and production orders without a planning date. In this case, the system will use the MRP launch date (today's date). To enable this option, tick the box in the work in progress type file.

Access: MRP → Configuration → MRP move types → in the Advanced search, tick the box ‘Include element without a date’ and/or tick the box ‘Ignore end date’.

MRP families​

You can group products together using MRP families.

Product file & MRP​

MRP families are entered directly on the product file in the Stock tab.

In the Stock tab, you will find several options:

  1. Exclude from MRP: this option allows you to hide a particular product.

  2. Managed in stock: tick the box to manage the product in stock.

  3. In the MRP family field, add a MRP. In the MRP window, enter the following information:

  • Code: enter a code. For example, ‘30days’

  • Name: enter a name. For example, ‘Thirty days’

  • Number of days: enter a number of days. For example, 30.

  • Number of days between firm purchase and purchase proposal: enter the number of days between firm purchase and purchase proposal. If not necessary, leave this field blank.

  1. Save the changes.

  2. Run calculation: run the calculation on the MRP sheet. Click on Tools → Run calculation.

  3. As a result, if you had two proposals on the MRP sheet with a difference in N quantity of days, they will be grouped into a single proposal using the MRP family with the shortest date in order to meet all needs.

Modify a proposal & run the calculation​

Please note that proposals can be modified.

  1. On the MRP sheet, click on the pencil icon ‘Modify’ on a proposal line.

  2. The ‘Result’ window will then open.

  3. In this window, modify the quantity and the due date.

  4. Save the changes made.

  5. On the page, following your changes, the system will display the message ‘Modified by user’ at the bottom of the page.

  6. Close the window and return to the MRP sheet. Click on ‘Run calculation’ (Tools → Run calculation).

  7. The system will save the changes. Following the calculations, the modified proposal will appear in red to highlight it.

Generate proposals​

Once the calculation has been completed, it is then possible to generate proposals.

  1. Select several proposal lines and then click on the Select button. Note that there are other buttons, such as ‘Deselect’ and ‘Select all’.

  2. Once you have made your selections, click on Tools → Generate proposals.

  3. The MPS window will then open.

  4. If necessary, tick the Consolidate proposals by supplier box. You also have the option of (select one of the options offered):

  • Generate proposals for the selected lines

  • Generate all possible proposals

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The proposals that are generated are always visible on the MRP sheet. However, if you click on a line, you will see that it is no longer possible to generate this proposal.

You will then see the production order number assigned to the proposal (at the bottom right). Click on this number to open the production order window.

Stock rules

Access: Stock management → Configuration → Stock rules

Stock rules have a significant impact on MRPs.

They can be used for MRPs, i.e. they will generate minimum stock levels, which will be taken into account in the net requirements calculation algorithm.

In addition, stock rules can be used for stock control to check that current or future stock does not fall below the minimum levels.

Functional example: configuring stock rules​

Stock rules: use for MRP​

Access: Stock management → Configuration → Stock rules

On the ‘Stock rules’ tab, you will generate stock rules for a location and for a product.

  1. Open the ‘Stock rules’ file for a component in the list.

  2. Select a stock location. Note that if this is a parent location, the stock rules will take into account all locations (including child locations).

  3. Select a product.

  4. In the ‘Use case’ field, select one of the following:

  • Used for MRP

  • Stock control

In the example, the usage is defined as ‘used for MRP’.

  1. Select the refill type. In the example, it is ‘Purchase order’ because it is a component. For a semi-finished product, you can select ‘Manufacturing order’ as the refill type.

  2. Minimum quantity: define the minimum quantity. In the example, it is 10. This means that in this MRP, instead of preventing the quantity from falling below zero, the system will prevent it from falling below 10 (the minimum quantity entered).

  3. Refill quantity: enter the minimum refill quantity. In the example, it is 30. This means that if you go down to 5 items in stock, a refill of 30 items will be made immediately.

  4. Ideal quantity: enter the ideal quantity. This quantity tells the user what quantity is ideal and desired for the product in question.

  5. Maximum quantity: sends an alert when proposals are generated for this product.

Stock rules: stock control​

Access: Stock → Configuration → Stock rules

On the ‘Stock rules’ tab, you can generate stock rules for a location and for a product.

  1. Open the ‘Stock rules’ tab for a component in the list.

  2. Select a stock location. Please note that if this is a parent location, the stock rules will take into account all locations (including child locations).

  3. Select a product.

  4. In the ‘Use case’ field, select one of the following:

  • Used for MRP

  • Stock control

In the example, the use is defined as ‘Stock control’. Selecting ‘Stock control’ displays the ‘Type’ field.

  1. Define the type: current or future.

  • Current type is based on current stock quantities.

  • Future type is based on future stock quantities.

  1. Select the refill type: alert or purchase order. In the example, it is ‘Purchase order’ because it is a component. The purchase order will be generated automatically with a draft status (quotation), while an alert will suggest sending an email to the relevant person (a procurement officer or procurement team).
  • Selecting 'Alert' displays the ‘Message template for stock rules’ field: select a message template here. In addition, two other fields will appear: the ‘User to alert’ and ‘Team to alert’ fields. Select the users that should be alerted. These users will receive an email when this rule is not met in terms of minimums.
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In previous versions (up to 7.2), stock rules apply to every stock movement linked to the stock location and its children. As soon as there is a movement, whether outgoing or incoming, a stock check is performed.

From version 8.0 onwards, you can manage control rules on a batch. This batch regularly checks that the rules are being followed. You can select different rules in different batches. You don't have to put everything in one batch nor process the rules all at once; you can do it gradually. This means fewer emails are sent and received.

  1. Minimum quantity: define the minimum quantity. In the example, it is 10. This means that in this MRP, instead of preventing the quantity from falling below zero, the system will prevent it from falling below 10 (the minimum quantity entered).

  2. Minimum replenishment quantity: enter the minimum refill quantity. In the example, it is 30. This means that if you drop to 5 items in stock, a refill of 30 items will be made immediately.

  3. Ideal quantity: enter the ideal quantity. This quantity tells the user what quantity is ideal and desired for the product in question.

  4. Maximum quantity: sends an alert when proposals are generated for this product.