6 Steps to Generate an Order using Project Management and MRP

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6 Steps to Generate an Order using Project Management and MRP 

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Note: For urgent items, or items with a long lead time purchase orders (PO), work orders (WO) and subcontract orders (EO) can be created before the project structure has been fully defined.

Example:

For our project we want to manufacture a machine tool. The engineer is still designing the bill of materials (BOM), but they already know that a specific drive will be required. The drive must be purchased in Australia; the shipping time is six weeks.

The engineer asks the buyer to create a PO so the drive will be available when needed for the manufacture of the machine tool.

Prerequisites

The project and project task must be ‘launched’.

How to record the order directly

Open: Projects > Project management (GESPJM)

  1. Click the Enterprise planningaction in the Project management Action panel (WIPs / Enterprise planning). This action is available at the project level, the budget level and at the operational (task) level.

You are now in the Enterprise planning (FUNGBENCH) function.

  1. Click Manufacturingfrom the Actions menu in the Enterprise planning function to plan and create the order.
  2. Enter the demand for the 7 crane tower elements:

Enterprise planning (FUNGBENCH)

  1. Run the MRP processing(FUNMRPG) function.

MRP explodes the BOM. The results of the run are displayed in the Enterprise planning (FUNGBENCH) function:

Enterprise planning (FUNGBENCH)

The customer informs the project manager that they require a 40-meter tower.

  1. We therefore record, in the Project management(GESPJM) function, a material task for the crane tower elements with a quantity of eight 5-meter tower-elements:

Project management (GESPJM)

  1. Rerun the MRP processing(FUNMRPG) function.

MRP will regard the ‘replanning rule’. According to the current setting Messages only we expect MRP to create a new suggestion for a work order for the remaining quantity of 1 unit and as an alternative, a suggestion to increase the quantity of the existing order from 7 to 8. However in this case the orders are related to a project task. MRP therefore acts as if set to Simulation mode and only creates a suggestion to increase the quantity of the existing WO. This ensures the 1:1 relationship between the project demand and the WO which covers the demand is maintained. The results of the run are displayed in the Enterprise planning (FUNGBENCH) function.

 In Enterprise Planning now we find the project-demand MTF and the suggestion to increase the quantity of the previously created WO from 7 to 8:

Enterprise planning (FUNGBENCH)