SAP Consumption Based Planning: Configuration & User Manual

Consumption-Based Planning

The central role of MRP is to monitor stocks and in particular, to automatically create procurement proposals for purchasing and production (planned orders, purchase requisitions or delivery schedules). This target is achieved by using various materials planning methods which each cover different procedures.

Consumption-based planning is based on past consumption values and uses the forecast or other statistical procedures to determine future requirements. The procedures in consumption-based planning do not refer to the master production schedule. That is, the net requirements calculation is not triggered either by planned independent requirements or dependent requirement. Instead, it is triggered when stock levels fall below a predefined reorder point or by forecast requirements calculated using past consumption values.

Implementation Considerations

Consumption-based planning procedures are simple materials planning procedures which you can use to achieve set targets with relatively little effort. Therefore, these planning procedures are used in areas without in-house production and/or in production plants for planning both B- and C-parts and operating supplies .

The prerequisites for implementing consumption-based planning are:

• If you use forecast requirements, the consumption pattern should be fairly constant or linear with few irregularities.

• Your Inventory Management must function well and should always be up-to-date.

Integration

Consumption-based planning is integrated in the Materials Management component. You can access the consumption-based planning functions from the SAP Easy Access Menu by choosing Logistics  Materials Management  Materials Planning  MRP.

Features

MRP Procedures

In consumption-based planning, the following MRP procedures are available:

• Reorder point procedure

• Forecast-based planning

• Time-phased materials planning

Creation of procurement proposals

The type of procurement proposal to be created automatically in the planning run depends on the procurement type of the material. For in-house production, the system always creates a planned order. For external procurement, the MRP controller can choose between a planned order and a purchase requisition. If the MRP controller chooses a planned order, it then has to be converted into a purchase requisition in a separate step so that it is made available to Purchasing.

The advantage of creating a planned order is that the MRP controller has more control over the procurement proposals. The purchasing department cannot order the material until the MRP controller has checked and converted the order proposal.If a purchase requisition is created, it is immediately available to the purchasing department which then takes over the responsibility for material availability and warehouse stocks.

Planning at plant level or for MRP areas

As materials planning is usually carried out at plant level, all available stock in the plant (from now on described as available warehouse stock ) is taken into account during planning. However, stocks from individual storage locations can be excluded from requirements planning or they can be planned independently. These stocks are then not included in material requirements planning at plant level. On the other hand, consignment stocks from the vendor are always included in MRP.

You can also carry out MRP for individual MRP areas.You can define the MRP areas. This means, for example, that you can group several storage locations into one MRP area and carry out MRP for this MRP area.

Lot-sizing procedures

The standard lot-sizing procedures are available in the SAP system. However, you can quite easily integrate your own formulas without much effort.

Automatic planning run

The automatic planning run determines shortages and creates the appropriate procurement elements. The system creates notes for critical parts and exceptional situations providing you with the necessary information for processing the planning results.

For a detailed information on SAP MRP Procedure and Consumption Based Planning, you may want to refer my post MRP-I and MRP-II from July 2013.

  

Below is the difference between MRP and CBP

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  Overview of the Main T-Codes for CBP

  Transaction	Activity
  MD01	Carry out total planning online
  MD03	Carry out single-item, single-level planning
  MDBT	Carry out total planning in background mode
  MD05	Display MRP list
  MD06	Access collective display of MRP list
  MDLD	Print MRP list
  MD04	Display current stock/requirements list
  MD07	Display collective display of current stock/requirements list
  MD11	Create planned order
  MD12	Change planned order
  MD13	Display planned order (individual)
  MD16	Access planned order (collective display)
  MD14	Convert planned order to purchase requisition (individual conversion)
  MD15	Convert planned order to purchase requisition (collective conversion)
  MD20	Create planning file entry
  MD21	Display planning file entry

  Reference: https://help.sap.com/docs/SAP_S4HANA_ON-PREMISE/af9ef57f504840d2b81be8667206d485/eee9b853dcfcb44ce10000000a174cb4.html

  Click here to download step by step configuration process and end user manual for SAP Consumption Based Planning.