OPM: Material Requirements Planning, Release 11: Student Guide

OPM: Material Requirements
Planning, Release 11i
Student Guide
.......................................................................................
14750GC10
Production 1.0
October 2000
M013256
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Author
Elaine Butler
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Effective 07/18/00 Page 1 of 1 Rev 1
Table of Contents
MPS and MRP Overview ......................................................................................................1-1

MPS and MRP Overview ....................................................................................................1-2
Objectives ............................................................................................................................1-3
Planning ...............................................................................................................................1-4
Product Overview ................................................................................................................1-5
Planner Responsibilities.......................................................................................................1-6
Defining Schedules..............................................................................................................1-7
Planning ...............................................................................................................................1-8
Demand and Supply.............................................................................................................1-9
The Planning Process...........................................................................................................1-10
Production Supply and Demand ..........................................................................................1-12
MRP Forecasts.....................................................................................................................1-13
Practice 1 .............................................................................................................................1-14
Practice 1 Solutions .............................................................................................................1-15
MPS Schedule......................................................................................................................1-16
Planning Schedule Parameters.............................................................................................1-17
Planning Classes ..................................................................................................................1-18
Describing Run Considerations ...........................................................................................1-20
MRP and Firm Planned Orders............................................................................................1-21
Blanket Purchase Orders......................................................................................................1-22
Practice 2 .............................................................................................................................1-23
MRP and Rescheduling .......................................................................................................1-25
Practice 2 .............................................................................................................................1-26
Interpreting Action Messages ..............................................................................................1-28
Interpreting Action Messages: Status Quo Method ............................................................1-29
Interpreting Action Messages: Net Requirement Method ...................................................1-30
Summary..............................................................................................................................1-31
Setting Up MPS and MRP ....................................................................................................2-1
Setting Up MPS and MRP ...................................................................................................2-2
Objectives ............................................................................................................................2-3
Overview of Setting Up MPS and MRP ..............................................................................2-4
Defining Prerequisites: Order Fulfillment ...........................................................................2-5
Defining Prerequisites: System Administration...................................................................2-6
Defining Prerequisites: OPM Inventory Control .................................................................2-7
Defining Prerequisites .........................................................................................................2-8
Practice 1 Overview.............................................................................................................2-9
Practice 1 Instructions: Item Planning Classes ....................................................................2-10
Practice 1 Solution: Item Planning Classes..........................................................................2-11
Practice 1 Instructions: Linking Planning Classes to Items .................................................2-12
Practice 1 Solution: Linking Planning Classes to Items ......................................................2-13
Practice 1 Instructions: Linking Planning Classes to User ..................................................2-14
Practice 1 Solution: Linking Planning Classes to Operator Code........................................2-15
Defining Plant and Warehouse Relationships......................................................................2-16
Setting Up Plant and Warehouse Relationships...................................................................2-17
Online Demonstration..........................................................................................................2-18
Setting Up Shop Days..........................................................................................................2-19
Defining the Shop Calendar.................................................................................................2-20
Defining the Shop Calendar Details ....................................................................................2-21
Defining the Calendar Range...............................................................................................2-22
Online Demonstration..........................................................................................................2-23
OPM: Material Requirements Planning, Release11i Table of Contents

i
Schedule Parameters............................................................................................................2-24
Schedule Parameter Flags....................................................................................................2-25
Defining MPS Schedule Parameters....................................................................................2-26
Practice 2 Instructions: Defining MPS View Parameters ....................................................2-27
Practice 2 Solution: Defining MPS View Parameters..........................................................2-28
Defining Warehouse Rules ..................................................................................................2-29
Assigning Schedules............................................................................................................2-31
Assigning Multiple Organizations .......................................................................................2-32
Practice 3 Overview: Defining Rules ..................................................................................2-34
Practice 3 Instructions: Defining Warehouse Rules.............................................................2-35
Practice 3 Solution: Defining Warehouse Rules..................................................................2-36
Practice 3 Instructions: Defining Production Rules .............................................................2-37
Practice 3 Solution: Defining Production Rules ..................................................................2-38
Practice 3 Instructions: Defining Warehouse Stock Transfer Rules ....................................2-39
Practice 3 Solution: Defining Warehouse Stock Transfer Rules .........................................2-40
Summary..............................................................................................................................2-41
Forecasting and Planning......................................................................................................3-1
Forecasting and Planning.....................................................................................................3-2
Objectives ............................................................................................................................3-3
Forecasting...........................................................................................................................3-4
Dynamic Forecasting ...........................................................................................................3-5
Carrying a Forecast Forward ...............................................................................................3-6
Performing Forecast Maintenance .......................................................................................3-7
Associating Forecasts ..........................................................................................................3-8
Associating a Forecast with a Schedule...............................................................................3-9
Setting Up MPS to Include Sales Forecast ..........................................................................3-10
Practice 1 Instructions: Creating a Forecast.........................................................................3-12
Practice 1 Solution: Creating a Forecast ..............................................................................3-13
Practice 1 Instructions: Linking the Forecast to a Schedule ................................................3-14
Practice 1 Solution: Linking the Forecast to a Schedule......................................................3-15
Practice 1 Instructions: Running an Inquiry ........................................................................3-16
Practice 1 Solution: Running an Inquiry..............................................................................3-17
Planning Recommendations ................................................................................................3-18
Material Requirement Run...................................................................................................3-19
MRP Bill of Materials .........................................................................................................3-21
Running MRP ......................................................................................................................3-24
Material Requirement Run...................................................................................................3-25
Errors and Exceptions..........................................................................................................3-26
Viewing MRP Error Messages ............................................................................................3-27
Bucketed Material Activity..................................................................................................3-28
Running MRP Bucketed Activity Inquiry ...........................................................................3-29
MRP Run Overview.............................................................................................................3-30
Approving the MRP Run .....................................................................................................3-31
Practice 2 Instructions: Running MRP ................................................................................3-33
Practice 2 Solution: Running MRP......................................................................................3-34
Practice 2 Instructions: Viewing Inquiries...........................................................................3-35
Practice 2 Solution: Viewing Inquiries ................................................................................3-36
Practice 2 Instructions: Approving MRP .............................................................................3-39
Practice 2 Solution: Approving MRP ..................................................................................3-40
Summary..............................................................................................................................3-42
Approving and Analyzing MPS and MRP ..........................................................................4-1
Approving and Analyzing MPS and MRP...........................................................................4-2
Objectives ............................................................................................................................4-3
Looking at Planning Suggestions.........................................................................................4-4

ii
The Action Messages...........................................................................................................4-5
Approving Action Messages................................................................................................4-6
Approving Batches and FPOs..............................................................................................4-7
Approving Purchase Order Requisitions .............................................................................4-8
Scheduling Changes.............................................................................................................4-9
Practice 1 .............................................................................................................................4-10
Pegging Details....................................................................................................................4-13
Online Inquiries ...................................................................................................................4-14
Viewing MPS Material Activity Information ......................................................................4-15
Viewing MPS Bucketed Material Information ....................................................................4-16
MPS and MRP Reports........................................................................................................4-17
Printing the Action Messages Report ..................................................................................4-18
Printing the MRP Bucketed Material Report.......................................................................4-19
Printing the MRP Material Activity Report.........................................................................4-20
Printing the MPS Material Activity Report .........................................................................4-21
Printing the MPS Bucketed Material Report .......................................................................4-22
Printing the Reorder Point Report .......................................................................................4-23
Summary..............................................................................................................................4-24

iii
Preface
Profile
Prerequisites
• OPM Inventory Management
• OPM Order Fulfillment
• OPM Purchase Management
• OPM Foundations
How This Course Is Organized
OPM: Material Requirements Planning, Release 11i is an instructor-led course

featuring lecture and hands-on exercises. Online demonstrations and written
practice sessions reinforce the concepts and skills introduced.
Preface PREFACE.DOC
Typographic Conventions
Typographic Conventions in Text
Convention Element Example

Bold italic Glossary term (if The algorithm inserts the new key.
there is a glossary)
Caps and Buttons, Click the Executable button.

lowercase check boxes, Select the Can’t Delete Card check box.
triggers, Assign a When-Validate-Item trigger to the
windows ORD block.
Open the Master Schedule window.
Courier new, Code output, Code output: debug.set (‘I”, 300);

case sensitive directory names, Directory: bin (DOS), $FMHOME (UNIX)
(default is filenames, Filename: Locate the init.ora file.
lowercase) passwords, Password: User tiger as your password.
pathnames, Pathname: Open c:\my_docs\projects
URLs, URL: Go to http://www.oracle.com
user input, User input: Enter 300
usernames Username: Log on as scott
Initial cap Graphics labels Customer address (but Oracle Payables)

(unless the term is a
proper noun)
Italic Emphasized words Do not save changes to the database.

and phrases, For further information, see Oracle7 Server
titles of books and SQL Language Reference Manual.
courses, Enter user_id@us.oracle.com,
variables where user_id is the name of the user.
Quotation Interface elements Select “Include a reusable module component”
marks with long names and click Finish.
that have only initial
caps; This subject is covered in Unit II, Lesson 3,
lesson and chapter “Working with Objects.”
titles in cross-
references
Uppercase SQL column names, Use the SELECT command to view information
commands, stored in the LAST_NAME
functions, schemas, column of the EMP table.
table names
Preface PREFACE.DOC
Arrow Menu paths Select File—> Save.
Brackets Key names Press [Enter].
Commas Key sequences Press and release keys one at a time:

[Alternate], [F], [D]
Plus signs Key combinations Press and hold these keys simultaneously:
[Ctrl]+[Alt]+[Del]
Typographic Conventions in Code

Caps and Oracle Forms When-Validate-Item
lowercase triggers
Lowercase Column names, SELECT last_name
table names FROM s_emp;
Passwords DROP USER scott

IDENTIFIED BY tiger;
PL/SQL objects OG_ACTIVATE_LAYER
(OG_GET_LAYER
(‘prod_pie_layer’))
Lowercase Syntax variables CREATE ROLE role

italic
Uppercase SQL commands and SELECT userid
functions FROM emp;
Typographic Conventions in Navigation Paths
This course uses simplified navigation paths, such as the following example, to
direct you through Oracle Applications.
(N) Invoice > Entry > Invoice Batches Summary (M) Query > Find (B) Approve
Preface PREFACE.DOC
This simplified path translates to the following:
1. (N) From the Navigator window, select Invoice > Entry > Invoice Batches
Summary.
2. (M) From the menu, select Query > Find.
3. (B) Click the Approve button.
Notations :
(N) = Navigator
(M) = Menu
(T) = Tab
(I) = Icon
(H) = Hyperlink
(B) = Button
Typographical Conventions in Help System Paths
This course uses a “navigation path” convention to represent actions you perform
to find pertinent information in the Oracle Applications Help System.
The following help navigation path, for example—
(Help) General Ledger > Journals > Enter Journals
—represents the following sequence of actions:
1. In the navigation frame of the help system window, expand the General
Ledger entry.
2. Under the General Ledger entry, expand Journals.
3. Under Journals, select Enter Journals.
Preface PREFACE.DOC
4. Review the Enter Journals topic that appears in the document frame of the
help system window.
Getting Help
Oracle Applications provides you with a complete online help facility.
Whenever you need assistance, simply choose an item from the Help menu to
pinpoint the type of information you want.
To display help for a current window:
1. Choose Window Help from the Help menu, click the Help button on the
toolbar, or hold down the Control key and type 'h'.
A web browser window appears, containing search and navigation frames on

the left, and a frame that displays help documents on the right.
The document frame provides information on the window containing the

cursor. The navigation frame displays the top-level topics for your
responsibility, arranged in a tree control.
2. If the document frame contains a list of topics associated with the window,
click on a topic of interest to display more detailed information.
3. You can navigate to other topics of interest in the help system, or choose
Close from your web browser's File menu to close help.
Searching for Help
You can perform a search to find the Oracle Applications help information you
want. Simply enter your query in the text field located in the top-left frame of the
browser window when viewing help, then click the adjacent Find button.
A list of titles, ranked by relevance and linked to the documents in question, is

returned from your search in the right-hand document frame. Click on whichever
title seems to best answer your needs to display the complete document in this
frame. If the document doesn't fully answer your questions, use your browser's
Back button to return to the list of titles and try another.
Preface PREFACE.DOC
Preface PREFACE.DOC
MPS and MRP Overview
Chapter 1

Chapter 1 - Page 1
MPS
MPS and
and MRP
MRP Overview
Overview

Chapter 1 - Page 2
Objectives
Objectives
Objectives
After
After completing
completing this
this lesson,
lesson, you
you should
should be
be able
able to
to
do
do the
the following:
following:
•• Describe
Describe planning
planning schedule
schedule parameters
parameters
•• Define
Define planning
planning classes
classes
•• Identify
Identify MRP
MRP run
run considerations
considerations
•• Define
Define MRP
MRP and
and firm
firm planned
planned orders
orders (FPO)
(FPO)
•• Identify
Identify blanket
blanket purchase
purchase orders
orders (BPO)
(BPO)
•• Define
Define MRP
MRP and
and rescheduling
rescheduling

Chapter 1 - Page 3
Planning
Planning
Planning
Max
Min MPS view MRP view
Max
Present Time line Future
®
Overview of MRP and MPS

With Material Requirements Planning (MRP), you can display long-term views
of material demands and projected supply actions to satisfy those demands.
With Master Production Scheduling (MPS), you can shorten that view to a
much narrower and immediate time horizon and see the immediate effects of
demand and supply actions. MPS provides setup windows and a shorter-range
view of material demands.
The menu sequences for both modules do not reflect the order in which you
initially define your databases and process MRP suggestions. Rather, they
indicate the anticipated frequency of use for each selection (most frequently
used selections are near the top; least frequently used are near the bottom). Each
selection produces one or more windows, where you will enter information
required to create transactions or inquire on transactions already processed.
Note: Remember that you define much of the setup data required to generate
MRP replenishment suggestions on windows in modules other than MPS and
MRP.

Chapter 1 - Page 4
Product Overview
Product
Product Overview
Overview
•• The
The OPM
OPM planning
planning products
products are
are MPS,
MPS, MRP,
MRP, and
and
Forecasting.
Forecasting.
•• Oracle
Oracle OPM
OPM Production
Production Planning
Planning assists
assists you
you with:
with:
–– Forecasting
Forecasting
–– Scheduling
Scheduling
–– Orders
Orders
–– Planning
Planning
OPM
Advanced Planning
Overview of MRP and MPS (continued)

The setup and processing windows in the MPS module include:
• Schedule
• Material Activity (Online Inquiry and Report)
• Bucketed Material (Online Inquiry and Report)
• Plant Warehouse
• Reorder Point Report
The setup and processing windows in the MRP module include:
• Shop Days
• Shop Calendar
• Action Messages (Online Inquiry and Report)
• MRP Run
• MRP Bucketed Material (Online Inquiry and Report)
• MRP Material Activity (Online Inquiry and Report)
• Error Messages (Online Inquiry and Report)

Chapter 1 - Page 5
Planner Responsibilities
Planner
Planner Responsibilities
Responsibilities
The
The word
word planning
planning inin OPM
OPM refers
refers to
to the
the total
total of
of all
all
scheduling
scheduling in a single organization for all kinds of
in a single organization for all kinds of
material
material supply
supply and
and demand
demand activity.
activity.
•• Organizations
Organizations areare companies
companies and and production
production
plants
plants to
to which
which you
you can
can assign
assign resources,
resources,
warehouses,
warehouses, or or general
general ledger
ledger accounts.
accounts.
•• Material
Material supply
supply activity
activity includes
includes allall
production, purchase,
production, purchase, and and
warehouse
warehouse transfer
transfer activity.
activity.
•• Demand activity includes
Demand activity includes
sales
sales orders
orders for
for products
products
and
and sales
sales forecasts.
forecasts.
®

Chapter 1 - Page 6
Defining Schedules
Defining
Defining Schedules
Schedules
After
After you
you define
define aa schedule,
schedule, you
you can
can use
use itit to
to create
create aa
link
link between
between organizations
organizations and
and the
the plants
plants or or
warehouses
warehouses that
that contain
contain the
the item
item that
that the
the planner
planner
wants to schedule.
wants to schedule.
Defining Schedules
In OPM, a schedule (as a stand-alone reference) refers to the transactions,
plants, and warehouses for which a planner desires to view material activity.
Each planner is responsible for managing a specified portion of inventory. A
schedule also refers to the specific planning parameters assigned to a planner.
These parameters determine the format in which material demand and supply
quantities for specific items appear on MRP and MPS inquiries and reports.

Chapter 1 - Page 7
Planning
Planning
Planning
Max
Based on anticipated inventory

demand and supply
Based on real events
Min MPS view MRP view
Max
Present Time line Future
®
MPS and MRP

One way to differentiate between MPS and MRP in OPM is to describe MPS as
providing the more short-range, dynamic view of material activity. MPS can
give you and other planners a view (weekly, daily, or even hourly) of the
production that is scheduled to meet immediate requirements.
MRP provides the more long-range view of material. Thus, it is the less
dynamic of the two material-activity viewing tools.
The illustration on the slide shows how both MRP and MPS can give you the
view of material activity, starting from the present time. However, MPS gives
you an accurate view of material activity over a short time horizon.
Another basic difference between MPS and MRP is that MPS deals solely with
real events, such as firm planned orders and batches already entered. MRP can
plan activity based on anticipated inventory demands and supplies. Note the
following discussions for more on the differences between the two material
planning tools.

Chapter 1 - Page 8
Demand and Supply
Demand
Demand and
and Supply
Supply
Demand Supply
Customer Forecast Supplier Shop floor

order
The Master Planner

The master planner (planner) is responsible for timely balancing of production
demand and supply. Separate individuals can schedule production and
purchasing in a company, or a single planner can handle both purchasing and
production supply scheduling. The planner may also be responsible for leveling
production, scheduling efficient batch sizes, and keeping stock balances to a
minimum.
Master Scheduling Using OPM
MPS gives the planner the tools to plan production and react to changing supply
and demand. With MPS, the planner can view both supply and demand for one
or more specific items in a specified time frame. This view, specific to only
those items over which the planner has authority, indicates when demand
requires production or purchase of an item. When production or purchase of the
item is planned, the planner can view the impact immediately. If the purchase or
production is delayed, the impact of that delay is also visible immediately.

Chapter 1 - Page 9
The Planning Process
The
Process
Forecasts
Master
production
schedule
Distribution
and material
requirements
plans
Master Production Schedules

The production schedule is a list of material activity (firm planned orders,
batches, warehouse transfers, and cancellations) for production. Each MRP
report, and the resulting material replenishment scheduling actions, is based on
a specific master production schedule. Each master production schedule defines
a separate set of criteria by which MRP will suggest replenishment of materials
(for example, whether sales forecasts and sales orders will be viewed by MRP
as demand when the schedule is used).
Before you can use either the MPS or MRP modules, you must create one or
more schedules. The schedule is the list of the inventory transactions, plants,
and warehouses that you control as the planner. You are responsible for
managing a specified portion of inventory. As a planner, you do not necessarily
buy the raw materials for production (this can be left to a separate buyer).
Because of the schedules that you define, however, you can generate requests
for raw materials; the buyer then creates requisitions or purchase orders for the
items. After you define a schedule, you can use it to create a link between
organizations and plants and warehouses.

Chapter 1 - Page 10
The
Process
Items, material
Forecasts
OPM Inventory Management issues
Items, inventory
Master
balance safety
production
stock,
reservation schedule
Items, inventory Distribution

balance safety and material
stock, requirements
reservation plans
Master Production Schedule and MRP Run

The master production schedule is a list of firm planned orders (FPOs) and
planned production batches. An FPO represents potential work for production
and indicates a source of supply for manufactured goods and a source of
demand for processing ingredients.
Multiple Schedules
A company can have numerous buyers and planners responsible for various
areas of production. Each buyer and planner can create a separate, desired
schedule with its own parameters. The planner can then selectively act on MRP
suggestions for replenishing inventory and generate FPOs, batch tickets, and
reports for that schedule.

Chapter 1 - Page 11
Production Supply and Demand
Production
Production Supply
Supply and
and Demand
Demand
You
You can
can use
use the
the combination
combination of
of MPS
MPS and
and
Production/MRP
Production/MRP toto view
view and
and control
control the
the balance
balance
between supply and demand.
between supply and demand.
Demand Supply
Customer order Forecast Supplier Shop floor
Static Versus Dynamic View

• MPS provides a dynamic view of production.
• MPS enables you to fine-tune the supply and demand quantities to meet
more immediate batch-processing needs.
• P/MRP provides a static view of the production schedule.
• The P/MRP view includes planned orders.
• P/MRP enables you to plan far into the future to keep supply and demand
balanced.
• P/MRP defines long-range horizon planning (the length of time in the
future for which you want to view material activity).

Chapter 1 - Page 12
MRP Forecasts
MRP
MRP Forecasts
Forecasts
MRP
MRP makes
makes suggestions
suggestions only
only for
for the
the items,
items,
warehouses,
warehouses, and
and production
production plants
plants over
over which
which you
you
have
have control.
control.
Forecast
Production plants Items Warehouses

®
MRP Forecasts
MRP suggests specific actions to keep supply and demand quantities in balance.
If you define your setup criteria properly, MRP makes suggestions only for the
items, warehouses, and production plants over which you have control.
You must first define shop days and the appropriate shop calendars used by
MRP to calculate the dates on which production batches for inventory
replenishment should begin.
You must then define the conventions for reordering based on time fences. A
time fence is a policy or guideline created to note where various restrictions or
changes in operating procedure take place. You define time fences in the
Inventory module to establish reorder, production, and warehouse transfer
guidelines. You also define (in the MPS Schedule window) a time fence
specific to each schedule; MRP refers to the most restrictive schedule when
more than one exists.
MRP reports indicate the effects of MRP’s suggested resupply transactions on
current and future inventory levels.

Chapter 1 - Page 13
Practice 1
Practice
Practice 11
In
In this
this fill-in-the-blank
fill-in-the-blank practice,
practice, supply
supply the
the correct
correct
answers to the following questions:
answers to the following questions:
1.
1. After
After you
you define
define aa schedule,
schedule, youyou can
can use
use itit to
to
create
create aa link
link between
between _____
_____ andand the
the ______
______ or or
_________
_________ thatthat contain
contain the
the item
item that
that the
the planner
planner
wants
wants to to schedule.
schedule.
2.
2. MPS
MPS provides
provides aa more
more _____-_____
_____-_____ or or ________
________
view of material activity.
view of material activity.
3.
3. MRP
MRP provides
provides aa more
more _____-_____
_____-_____ or or ________
________
view
view ofof material
material activity.
activity.
4.
4. MRP
MRP suggests
suggests specific
specific actions
actions toto keep
keep _____
_____ and and
______ quantities in balance.
______ quantities in balance.
®

Chapter 1 - Page 14
Practice 1 Solutions
Practice
Solutions
1.
1. After
After you
you define
define aa schedule,
schedule, youyou can
can use
use itit to
to
create
create aa link
link between
between organizations
organizations and and the
the plants
plants
or
or warehouses
warehouses thatthat contain
contain the
the item
item that
that the
the
planner
planner wants
wants to
to schedule.
schedule.
2.
2. MPS
MPS provides
provides aa more
more short-range
short-range or or dynamic
dynamic view view
of
of material
material activity.
activity.
3.
3. MRP
MRP provides
provides aa more
more long-range
long-range or or static
static view
view ofof
material
material activity.
activity.
4.
4. MRP
MRP suggests
suggests specific
specific actions
actions to
to keep
keep supply
supply and and
demand
demand quantities
quantities inin balance.
balance.

Chapter 1 - Page 15
MPS Schedule
MPS
MPS Schedule
Schedule
Ingredients
Finished Finished
goods goods
Ingredients
Consumption and Consumption Replenishment

replenishment warehouse warehouse
warehouse
Describing the Master (Production) Schedule

As time advances and future MRP-planned activity comes closer, you can then
use MPS to fine-tune your production schedule by addressing the smaller, more
immediate changes in demand and supply. MRP therefore enables you to view
long-range material activity, giving you a measure of control over future supply
and demand and the projected effects on your production schedule. MPS gives
you the short-range view of current material events that could affect your
production schedule.
A production schedule:
• Represents a manufacturing execution sequence to meet customer
requirements in accordance with capacity loading
• Is a chronological list of scheduled production batches and scheduled start
dates
• Is specific to a single organization in your corporate hierarchy
• Is flexible in defining ownership of products
For example, the buyer or planner may have exclusive control over
packaging materials (barrels, bottles, containers)

Chapter 1 - Page 16
Planning Schedule Parameters
Planning
Planning Schedule
Schedule Parameters
Parameters
Planning schedule
parameters
Define Manufacturing
rules plants
Items Warehouses
Planner
Schedules
Before you can use the Process Material Requirements Planning module
(hereafter called MRP) to make replenishment suggestions, you must define the
planning schedule parameters. The schedule parameters define the rules by
which MRP will make replenishment suggestions when that particular schedule
is used.
You define schedule parameters in the Master Production Scheduling (MPS)
module. You then link the schedule parameters to yourself (and other planners)
and to the inventory items in which you have scheduling interests.
Note: With OPM, you can assign each planner (otherwise known as operator or
buyer) a default set of schedule parameters. However, each planner can be
assigned access to any valid set of schedule parameters.

Chapter 1 - Page 17
Planning Classes
Planning
Planning Classes
Classes
IfIf you
you want
want inventory
inventory items
items to
to be
be linked
linked byby planning
planning
classes
classes onon reports,
reports, you
you and
and the
the other
other planners
planners must
must
be linked to the items in which you will have planning
be linked to the items in which you will have planning
interests.
interests.
Planner
Inventory item Inventory item Inventory item
Planning Classes
As the planner, you may be responsible for the purchase and manufacture of all
items bought or produced by your company. On the other hand, you and other
planners may each be responsible for only one or more specific lines of product
items. Regardless of the situation, if you want inventory items to be linked by
planning classes on reports, you and the other planners must be linked to the
items in which you will have planning interests.
A planning class groups items with similar planning characteristics and also
links the items to the appropriate planners. This allows MRP to generate reports
for each individual planner. Multiple planners can control the same item, if the
planners’ operator codes share the same planning class codes.

Chapter 1 - Page 18
Planning Classes
Planning
Planning Classes
Classes
A
A planning
planning class
class groups
groups items
items with
with similar
similar planning
planning
characteristics
characteristics and
and links
links the
the items
items to
to the
the appropriate
appropriate
planners.
planners.
Planner
Inventory item Inventory item Inventory item
Planning class
®
Defining Planning Classes

You must first define planning classes in the Planning Class window in the
Inventory Management module. A planning class can be associated with
selected inventory items and a selected planner, creating a link between those
inventory items and the planner. This association enables you to generate MRP
reports reflecting only those items in which the planner has scheduling interests.
After you define the appropriate planning class, you assign it to the applicable
items in the Inventory Items window. You link the planning class to the planner
in the Operator Classes window.
Each operator can have many planning classes, but each inventory item can
have only one. If more than one operator has interest in planning an item, each
of the operators must be assigned the planning class identical to the one
assigned to the item. By linking the planning class to the planner and the
appropriate inventory items, the planner can restrict the Material Activity and
Action Message reports to only those items over which the operator has control.

Chapter 1 - Page 19
Describing Run Considerations
Describing
Describing Run
Run Considerations
Considerations
Formula Orders Open production

Warehouses Effectivities FPOs
Planning Open sales
Production Open purchase
Sales
Required forecasts
manufacturing
dates Scheduled deliveries
against BPOs
®
Describing MRP Run Considerations

An MRP run is a time-phased projection that considers the following:
• Formula and warehouse effectivities
• Planning effectivities (considered first)
• Production effectivities (considered second)
• Required manufacture start and end dates
• Open production orders
• FPOs (firm planned orders)
• Open sales orders
• Open purchase orders
• Scheduled deliveries against blanket purchase orders
• Sales forecasts

Chapter 1 - Page 20
MRP and Firm Planned Orders
MRP
MRP and
and Firm
Firm Planned
Planned Orders
Orders
Demand Demand
Supply Supply
Planned
Planning
order
process
Demand Demand
Supply Supply
Firm planned
order
Defining MRP and Firm Planned Orders

The production schedule is a list of production batches and firm planned orders
(FPOs). The planner manually enters an FPO or converts a planned order
(suggested by MRP) to a firm planned order. Each FPO represents batches that
you definitely intend to make.
An FPO represents potential work for production and indicates a source of
supply for manufactured goods and a source of demand for processing
ingredients. The planner can change an FPO at any time. FPOs can (at the
planner’s discretion) become production batches.
After you review MRP suggestions, you may want to plan some production in
the future. An FPO enables you to perform mid- to long-range planning,
without committing inventory. Each FPO can be converted into one, or many,
simultaneous or consecutive batch tickets as you approach actual production
dates.

Chapter 1 - Page 21
Blanket Purchase Orders
Blanket
Blanket Purchase
Purchase Orders
Orders
Demand Demand
Supply Supply
BPO
Planning
process
Demand Demand
Supply Supply
Firm planned
order
Describing Blanket Purchase Orders

A blanket purchase order (BPO) is a commitment to purchase a specific
quantity of an item, or a specific dollar amount of an item, from a vendor. This
commitment covers a fixed time period (such as one year or one quarter). BPOs
often allow the planner to receive price breaks and improved delivery
reliability.
The Purchasing module provides the windows necessary to enter BPOs, as well
as a proposed schedule for the delivery of the items. When you first create the
BPO, however, you may not know the actual delivery schedule for the entire
term of the purchase order commitment. When you first create the BPO, you
can define a proposed delivery schedule, which anticipates the quantities and
delivery dates from the purchase order.
OPM offers the option of enabling MRP (during the MRP runs) to consider the
anticipated deliveries from BPO schedules. Instead of suggesting a new
purchase of material, MRP suggests releases against scheduled BPOs. Lead
time and safety stock requirements for the items are identical to the
requirements usually referred to by MRP.

Chapter 1 - Page 22
Practice 2
Practice
Practice 22
List
List and
and discuss
discuss five
five of
of the
the considerations
considerations in
in an
an
MRP run.
MRP run.

Chapter 1 - Page 23
Practice
Solutions
List
List and
and discuss
discuss five
five of
of the
the considerations
considerations in
in an
an
MRP
MRP run.
run.
•• Formula
Formula and
and warehouse
warehouse effectivities
effectivities
•• Planning
Planning effectivities
effectivities
•• Production
Production effectivities
effectivities
•• Required
Required manufacture start
manufacture start and
and end
end dates
dates
•• Open
Open production
production orders
orders
•• FPOs
FPOs
•• Open
Open sales
sales and
and purchase
purchase orders
orders
•• Sales
Sales forecasts
forecasts

Chapter 1 - Page 24
MRP and Rescheduling
MRP
MRP and
and Rescheduling
Rescheduling
The
The basis
basis of
of rescheduling
rescheduling in
in OPM
OPM is
is that
that an
an order
order can
can
be moved to meet the demand needs of a schedule.
be moved to meet the demand needs of a schedule.
To
To do
do this,
this, MRP
MRP does
does the
the following:
following:
•• Locates
Locates aa net
net safety
safety stock
stock requirement
requirement
•• Uses
Uses the
the reschedule
reschedule interval
interval from
from either
either the
the
warehouse
warehouse rules
rules for
for purchasing
purchasing oror production
production
rules
rules for
for production
production
•• Incorporates
Incorporates the
the order
order and
and action
action messages
messages and
and
suggestions made to meet the
suggestions made to meet the demanddemand
MRP and Rescheduling

MRP assumes that when a demand exists, there is a way to resupply that
demand. When insufficient lead time exists according to the rules defined, MRP
knows that the demand will be met or the demand date will be moved. MRP
handles this situation with exception messages that tell you to do something
outside the planning rules. The following are assumptions or properties
involved with rescheduling:
• Will not increase the size of an existing order
• Does not have the ability to actually move an order
• Can use an order only once for rescheduling
• Will use only one order to reschedule with
• Can reschedule with insufficient lead time as an exception

Chapter 1 - Page 25
Practice 2
Practice
Practice 22
List
List and
and discuss
discuss five
five of
of the
the considerations
considerations in
in an
an
MRP
MRP run.
run.

Chapter 1 - Page 26
Practice
Solutions
List
List and
and discuss
discuss five
five of
of the
the considerations
considerations in
in an
an
MRP
MRP run.
run.
•• Formula
Formula and
and warehouse
warehouse effectivities
effectivities
•• Planning effectivities
Planning effectivities
•• Production
Production effectivities
effectivities
•• Required
Required manufacture
manufacture start
start and
and end
end dates
dates
•• Open
Open production
production orders
orders
•• FPOs
FPOs
•• Open
Open sales
sales and
and purchase
purchase orders
orders
•• Sales
Sales forecasts
forecasts

Chapter 1 - Page 27
Interpreting Action Messages
Interpreting
Interpreting Action
Action Messages
Messages
The
The action
action messages
messages for
for rescheduling
rescheduling are
are one
one of
of two
two
methods:
methods: status
status quo
quo or
or net
net requirement.
requirement.
•• The
The methods
methods are
are similar
similar when
when the
the order
order resides
resides
before
before the
the demand.
demand.
•• The
The methods
methods are
are different
different when
when the
the order
order is
is made
made
after the demand.
after the demand.
Status Quo and Net Requirement Methods

You can interpret action messages by using two methods: status quo and net
requirement. You can use these methods exclusively or together. The methods
are similar when the order resides before the demand, but the methods differ
when the order is made after the demand.

Chapter 1 - Page 28
Interpreting Action Messages: Status Quo Method
Interpreting
Interpreting Action
Action Messages:
Messages:
Status
Status Quo
Quo Method
Method
The
The status
status quo
quo method
method attempts
attempts to to keep
keep the
the status
status
the
the same,
same, changing
changing itit as
as little
little as
as possible.
possible. The
The
purpose
purpose ofof following
following this
this method
method is is to
to maintain
maintain the
the
resupply
resupply that existed before the reschedule event
that existed before the reschedule event
was
was suggested.
suggested.
Status Quo Method

To follow this method, the planner should act on the move and the quantity in
the Move/Resize message. This always maintains what was there before,
keeping the status quo. When the resupply order is made before the demand, the
order has already been used in the calculation of net requirement; thus the
quantity in the message is just the amount needed to meet the demand. The
maximum batch size issue will need to be resolved separately.
When the demand occurs before the resupply order, the results differ. Because
the order is made after the demand, it is assumed that the order was meant to
resupply some other demand that occurs later in the plan. To maintain this
integrity, the net requirement at the time of the demand will be the quantity in
the Move/Resize message. Even though it suggested that the order be moved,
and the suggested planned resupply orders that go along with the reschedule
take this into account, the quantity for the resize is set so that it does not affect
the future resupply. The maximum resupply order size issue will need to be
resolved separately.

Chapter 1 - Page 29
Interpreting Action Messages: Net Requirement Method
Interpreting
Interpreting Action
Action Messages:
Messages:
Net
Net Requirement
Requirement Method
Method
The
The net
net requirement
requirement method
method calculates
calculates how
how to
to meet
meet
the
the current
current demand
demand and
and lets
lets MRP
MRP plan
plan the
the future.
future. The
The
purpose
purpose ofof following
following this
this method
method is is to
to use
use whatever
whatever
resupply
resupply orders
orders that
that exist
exist for
for the
the net
net requirement
requirement atat
hand.
hand.
Net Requirement Method

To follow this method, the planner should act on the move in the Move/Resize
message but use the quantity from the suggested planned resupply orders. In the
case of multiple resupply orders, the sum total should be used. This will always
meet the net requirement for the demand. When the resupply order occurs
before the demand, the resupply order has already been used in the calculation
of net requirement; thus the quantity in the Move/Resize message should be the
same as the total for the suggested planned resupply orders. Either would be the
correct amount needed to meet the demand. The maximum resupply order size
issue will need to be resolved separately.
When the demand occurs before the resupply order, the action taken is the same.
The planner should use the total quantity from the suggested planned resupply
orders to meet the net requirement after the resupply order has been logically
moved. The maximum resupply order size issue will need to be resolved
separately.

Chapter 1 - Page 30
Summary
Summary
Summary
In
In this
this lesson,
lesson, you
you should
should have
have learned
learned how
how to:
to:
•• Describe
Describe planning
planning schedule
schedule parameters
parameters
•• Define
Define planning
planning classes
classes
•• Identify
Identify MRP
MRP run
run considerations
considerations
•• Define
Define MRP
MRP and
and firm
firm planned
planned orders
orders
•• Identify
Identify blanket
blanket purchase
purchase orders
orders
•• Define
Define MRP
MRP and
and rescheduling
rescheduling

Chapter 1 - Page 31

Chapter 1 - Page 32
Setting Up MPS and MRP
Chapter 2

Chapter 2 - Page 1
Setting
Setting Up
Up MPS
MPS and
and MRP
MRP

Chapter 2 - Page 2
Objectives
Objectives
Objectives
After
After completing
completing this
this lesson,
lesson, you
you should
should be
be able
able to
to
do
do the
the following:
following:
•• Define
Define plant
plant and
and warehouse
warehouse relationships
relationships
•• Set
Set up
up the
the shop
shop days
days and
and calendar
calendar in
in MRP
MRP
•• Define
Define an
an MPS
MPS schedule
schedule
•• Define
Define warehouse
warehouse rules
rules and
and production
production rules
rules
•• Define
Define warehouse
warehouse transfer
transfer rules
rules
•• Assign
Assign aa schedule
schedule to
to aa user
user

Chapter 2 - Page 3
Overview of Setting Up MPS and MRP
Overview
Overview of
of Setting
Setting Up
Up MPS
MPS and
and MRP
MRP
Inventory
Prerequisites Relationships

You first define the appropriate shop days and shop calendars used by MRP to
calculate the dates on which production batches for inventory replenishment
should begin.
You then define the conventions for reordering based on time fences. A time
fence is a policy or guideline created to note where various restrictions or
changes in operating procedure take place. You define time fences in the
Inventory module to establish reorder, production, and warehouse transfer
guidelines. You also define (in the MPS Schedule window) a time fence
specific to each schedule; MRP refers to the most restrictive schedule when
more than one is available.
MRP reports indicate the effects of MRP’s suggested resupply transactions on
current and future inventory levels.

Chapter 2 - Page 4
Defining Prerequisites: Order Fulfillment
Defining
Defining Prerequisites:
Prerequisites:
Order
Order Fulfillment
Fulfillment
In
In the
the OPM
OPM Order
Order Fulfillment
Fulfillment module,
module, set
set up
up the
the
following:
following:
•• Tax
Tax location
location codes
codes (if
(if you
you are
are using
using the
the Tax
Tax
module)
module)
•• Sales
Sales orders
orders

Chapter 2 - Page 5
Defining Prerequisites: System Administration
Defining
Prerequisites:
System
System Administration
Administration
In
In the
the OPM
OPM System
System Administration
Administration module,
module, set
set up
up
the
the following:
following:
•• HRHR organizations,
organizations, organizations,
organizations, and
and user
user
organizations
organizations
•• User
User planning
planning classes:
classes: Assign
Assign aa default
default planning
planning
class
class in
in User
User Profile
Profile Options
Options
•• Unit
Unit of
of measure
measure types
types and
and units
units of
of measure
measure
•• Document
Document ordering
ordering
•• Reason
Reason codes
codes
•• Geography
Geography codes
codes

Chapter 2 - Page 6
Defining Prerequisites: OPM Inventory Control
Defining
Prerequisites:
OPM
OPM Inventory
Inventory Control
Control
In
In the
the OPM
OPM Inventory
Inventory Control
Control module,
module, set
set up
up the
the
following:
following:
•• Items
Items
•• Warehouses,
Warehouses, warehouse
warehouse rules,
rules, and
and warehouse
warehouse
transfer
transfer rules
rules
•• Production
Production rules
rules
•• Oracle
Oracle stock
stock locators
locators
•• Item
Item lot
lot or
or sublot
sublot UOM
UOM conversions
conversions
•• Item
Item quantities
quantities
•• Inventory
Inventory planning
planning classes
classes

Chapter 2 - Page 7
Defining Prerequisites
Defining
Defining Prerequisites
Prerequisites
•• In
In the
the OPM
OPM Formula
Formula Management
Management module,
module, set
set up
up
the
the formulas
formulas and
and production
production effectivities.
effectivities.
•• In
In the
the Production
Production Management
Management module,
module, set
set up
up
batches and firm planned orders (FPOs).
batches and firm planned orders (FPOs).
•• In
In the
the Purchasing
Purchasing module,
module, set
set up
up purchase
purchase orders
orders
and
and blanket
blanket purchase
purchase orders
orders (BPOs).
(BPOs).

Chapter 2 - Page 8
Practice 1 Overview
Practice
Practice 11 Overview
Overview
As
As an
an example
example ofof defining
defining prerequisites,
prerequisites, this
this hands-on
hands-on
and
and guided
guided practice
practice covers
covers the
the following
following topics:
topics:
•• Defining
Defining inventory
inventory planning
planning classes
classes
•• Linking
Linking planning
planning classes
classes to
to inventory
inventory items
items
•• Linking
Linking planning
planning classes
classes to
to operator
operator codes
codes

Chapter 2 - Page 9
Practice 1 Instructions: Item Planning Classes
Practice
Practice 11 Instructions:
Instructions:
Item
Item Planning
Planning Classes
Classes
In
In the
the Item
Item Planning
Planning Classes
Classes window,
window, set
set up
up the
the
following
following planning
planning classes:
classes:
•• FG,
FG, described
described as
as Finished
Finished Goods
Goods
•• RMC,
RMC, described
described as
as Raw
Raw Material
Material -- Commodities
Commodities
•• RMS,
RMS, described
described as
as Raw
Raw Material
Material -- Special
Special

Chapter 2 - Page 10
Practice 1 Solution: Item Planning Classes
Practice
Practice 1 Solution:
Solution:
Item
Item Planning
Planning Classes
Classes
(N) OPM Inventory > OPM Inventory Control > Setup >
Classes/Types > Item Planning
®

Chapter 2 - Page 11
Practice 1 Instructions: Linking Planning Classes to
Items
Practice
Instructions:
Linking
Linking Planning Classes to Items
In
In the
the Items
Items window,
window, the
the instructor
instructor will
will assign
assign the
the
following
following planning
planning classes
classes to
to the
the proper
proper inventory
inventory
items:
items:
•• Item
Item ZTRFGS
ZTRFGS toto planning
planning class
class FG
FG
•• Item
Item ZTINTS
ZTINTS to
to planning
planning class
class INT
INT
•• Item
Item ZTPKGS
ZTPKGS to
to planning
planning class
class RMC
RMC
•• Item
Item ZTRM1S
ZTRM1S to
to planning
planning class
class RMC
RMC
•• Item
Item ZTRM2S
ZTRM2S to
to planning
planning class
class RMS
RMS

Chapter 2 - Page 12
Practice 1 Solution: Linking Planning Classes to Items
Practice
Solution:
Linking
Linking Planning Classes to Items
(N) OPM Inventory > OPM Inventory Control > Setup > Item Master
®

Chapter 2 - Page 13
Practice 1 Instructions: Linking Planning Classes to
User
Practice
Instructions:
Linking
Linking Planning
Planning Classes
Classes to
to User
User
In
In the
the User
User Planning
Planning Classes
Classes window,
window, the
the instructor
instructor
will
will assign
assign the
the newly
newly created
created planning
planning classes
classes to
to user
user
OPM_TRAINER:
OPM_TRAINER:
•• FGFG
•• INT
INT
•• RMC
RMC
•• RMS
RMS

Chapter 2 - Page 14
Practice 1 Solution: Linking Planning Classes to
Operator Code
Practice
Solution:
Linking
Linking Planning
Planning Classes
Classes toto Operator
Operator Code
Code
(N) OPM System Administration > OPM System Setup >

User Planning Classes
®

Chapter 2 - Page 15
Defining Plant and Warehouse Relationships
Defining
Defining Plant
Plant and
and Warehouse
Warehouse
Relationships
Relationships
Production Plant A
Warehouse 1 Warehouse 2
Consumption Warehouse Replenishment Warehouse
Plant and Warehouse Relationships

When you define the hierarchy of your corporate and production facilities (in
the Organization window in the System module), you flag those organizations
that are production plants.
You then define the relationship between production plants and warehouses.
These associations between production plants and warehouses indicate which
warehouses are sources of (finished goods) demand on the production plant and
which warehouses are sources of (ingredient) material for production at the
plant.
In the illustration on the slide, warehouse 1 supplies material to the production
plant and so is flagged as the warehouse from which material is consumed.
Warehouse 2 received finished goods from the production plant and is the
warehouse for which finished goods are replenished.

Chapter 2 - Page 16
Setting Up Plant and Warehouse Relationships
Setting
Setting Up
Up Plant
Plant and
and Warehouse
Relationships
Relationships
Go
Go to
to the
the Plant
Plant Warehouse
Warehouse window
window toto set
set up
up plant
plant
and
and warehouse
warehouse effectivities,
effectivities, which
which determine
determine thethe
consumption and replenishment rules
consumption and replenishment rules between between
plants,
plants, warehouses,
warehouses, and
and items.
items. This
This links
links the
the
production plants to one of the following:
production plants to one of the following:
•• Storage
Storage warehouses
warehouses that
that supply
supply the
the raw
raw materials
materials
for
for production
production
•• Warehouses
Warehouses to to which
which finished
finished goods
goods areare sent
sent
(N) OPM Process Planning > MPS > Setup > Plant Warehouse
Navigation
N = Navigator
T = Tab
M = Menu
I = Icon
H = Hyperlink
B = Button
Help = Oracle Applications Help System
(Help) Oracle Manufacturing Applications > Oracle Process Manufacturing >

OPM Process Planning > OPM MPS/MRP and Forecasting > MPS/MRP
Setups > Setting Up Plant/Warehouse Relationships
> Setting Up Plant/Warehouse Relationships Procedure
> Plant Warehouse Window References

Chapter 2 - Page 17
Online Demonstration
Online
Demonstration
The
The instructor
instructor will
will demonstrate
demonstrate the
the application
application
windows
windows for
for setting
setting up
up plant/warehouse
plant/warehouse relationships.
relationships.
OPM
OPM Plant
Plant Warehouse
Warehouse

Chapter 2 - Page 18
Setting Up Shop Days
Setting
Setting Up
Up Shop
Shop Days
Days
Go
Go to
to the
the Shop
Shop Days
Days window
window toto define
define the
the type
type of
of
workdays
workdays andand off
off days
days that
that are
are to
to be
be included
included in
in the
the
shop calendar.
shop calendar.
(N) OPM Process Planning > MRP > Setup > Shop Days

Setups > Defining Shop Days
> Defining Shop Days Procedure
> Shop Days Window Field References

Chapter 2 - Page 19
Defining the Shop Calendar
Defining
Defining the
the Shop
Shop Calendar
Calendar
Go
Go to
to the
the Shop
Shop Calendar
Calendar window
window to
to define
define the
the dates
dates
for
for which
which manufacturing
manufacturing work
work can
can be
be scheduled.
scheduled.
(N) OPM Process Planning > MRP > Setup > Shop Calendar

Setups > Defining the Shop Calendar
> Defining the Shop Calendar Procedure
> Shop Calendar Window Field References

Chapter 2 - Page 20
Defining the Shop Calendar Details
Defining
Defining the
the Shop
Shop Calendar
Calendar Details
Details
In
In the
the Shop
Shop Calendar
Calendar Details
Details window,
window, you
you can
can specify
specify
which
which days
days of
of aa specific
specific month
month and
and year
year combination
combination
are
are workdays.
workdays. When
When you
you define
define aa shop
shop calendar
calendar for
for
the
the first time, the Calendar Range dialog box
first time, the Calendar Range dialog box appears.
appears.
In
In this
this box,
box, you
you select
select the
the start
start and
and end
end dates
dates of
of the
the
new
new calendar.
calendar.
(N) OPM Process Planning > MRP > Setup >

Shop Calendar > (B) Details
®

Chapter 2 - Page 21
Defining the Calendar Range
Defining
Defining the
the Calendar
Calendar Range
Range
The
The Calendar
Calendar Range
Range dialog
dialog box
box appears
appears after
after you
you
save
save the
the window
window when
when you
you are
are creating
creating aa new
new
calendar.
calendar. You
You can
can also
also navigate
navigate to
to the
the Calendar
Calendar
Range
Range dialog box from the Actions menu
dialog box from the Actions menu ofof the
the Shop
Shop
Calendar and Shop Calendar Detail windows.
Calendar and Shop Calendar Detail windows.
(N) OPM Process Planning > MRP > Setup >

Shop Calendar > (M) Actions
®

Chapter 2 - Page 22
Online
Demonstration
The
The instructor
instructor will
will demonstrate
demonstrate the
the application
application
windows
windows for
for shop
shop days
days and
and calendars.
calendars.
OPM
OPM Shop
Shop Calendar
Calendar

Chapter 2 - Page 23
Schedule Parameters
Schedule
Schedule Parameters
Parameters
The
The schedule
schedule parameters
parameters are
are the
the primary
primary drivers
drivers of
of
process
process material
material requirements
requirements planning.
planning. They
They
determine
determine the
the following:
following:
•• The
The horizon for
horizon for which
which MRP
MRP considers
considers material
material
activity
activity
•• The
The plants
plants that
that MRP
MRP must
must consider
consider when
when
suggesting
suggesting replenishment
replenishment
Schedule A Schedule B
®

Chapter 2 - Page 24
Schedule Parameter Flags
Schedule
Schedule Parameter
Parameter Flags
Flags
Each
Each set
set of
of schedule
schedule parameters
parameters contains
contains flags
flags
regarding
regarding use
use of
of blanket
blanket purchase
purchase orders.
orders.
•• One
One flag
flag indicates
indicates whether
whether MRP
MRP should
should consider
consider
blanket
blanket purchase orders during the MRP
purchase orders during the MRP runs.
runs.
•• Another
Another flag
flag indicates
indicates whether
whether MRP
MRP should
should
recommend
recommend changes
changes toto blanket
blanket purchase
purchase
order
order release
release quantities
quantities when
when making
making
replenishment suggestions.
replenishment suggestions.

Chapter 2 - Page 25
Defining MPS Schedule Parameters
Defining
Defining MPS
MPS Schedule
Schedule Parameters
Parameters
Go
Go to
to the
the MPS
MPS Schedule
Schedule Parameters
Parameters window
window to to
establish
establish the
the criteria
criteria by
by which
which inventory
inventory supply
supply andand
demand appear on displays and
demand appear on displays and reports. reports.
•• All
All MRP
MRP and
and MPS
MPS reports
reports are
are specific
specific to
to aa given
given
set of schedule parameters.
set of schedule parameters.
•• You
You must
must define
define atat least
least one
one set
set of
of schedule
schedule
parameters
parameters to to which
which MRPMRP refers
refers when
when making
making
suggestions
suggestions for for material
material replenishment.
replenishment.
(N) OPM Process Planning > MPS > Setup > Schedule

Setups > Defining a MPS Schedule
> Defining a MPS Schedule Parameters Procedure
> Defining Schedule Parameters Field References
> Inner Timefence - Additional Discussion

Chapter 2 - Page 26
Practice 2 Instructions: Defining MPS View Parameters
Practice
Instructions:
Defining
Defining MPS
MPS View
View Parameters
Parameters
In
In this
this instructor-guided
instructor-guided practice,
practice, aa schedule
schedule is
is
created
created defining
defining view
view parameters.
parameters.
MPS
MPS Schedule
Schedule Parameters
Parameters

Chapter 2 - Page 27
Practice 2 Solution: Defining MPS View Parameters
Practice
Solution:
Defining
Defining MPS
MPS View
View Parameters
Parameters
®
Practice 2 Solution
Navigate to the MPS Schedule Parameters window, as shown in the preceding
slide on defining MPS view parameters.
• Your organization defaults
• Schedule: TRSCH
• Schedule description: Trainer Plant 1 Schedule
• Inner fence: 1
• Outer fence: 60
• MRP horizon: 180
• Days: 5
• Weeks: 3
• Months: 2
• Quarters: 3

Chapter 2 - Page 28
Defining Warehouse Rules
Defining
Defining Warehouse
Warehouse Rules
Rules
Warehouse
Warehouse rules
rules need
need to
to be
be defined
defined for
for each
each MRP
MRP
planned item.
planned item.
Warehouse A
Items
Warehouse B
®

Chapter 2 - Page 29
Defining Warehouse Rules
Defining
Defining Warehouse
Warehouse Rules
Rules
Go
Go to
to the
the Warehouse
Warehouse Rules
Rules window
window toto establish
establish item
item
warehouse rules and to enter the item reorder
warehouse rules and to enter the item reorder rulesrules
for
for each
each specific
specific warehouse.
warehouse.
Item reorder
rules
Warehouse A
Items
(N) OPM Process Planning > MRP > Setup > Warehouse Rules
®

Setups > Defining Warehouse Rules and MRP
> Defining Warehouse Transfer Rules and MRP

Chapter 2 - Page 30
Assigning Schedules
Assigning
Assigning Schedules
Schedules
You
You can
can assign
assign both
both aa default
default organization
organization and
and aa
default
default set
set of
of schedule
schedule parameters
parameters to
to each
each planner
planner
who
who uses
uses MRP.
MRP.
Organization
Schedule
parameters

Setups > Assigning a Schedule to a User
> Linking Schedule Parameters to User

Chapter 2 - Page 31
Assigning Multiple Organizations
Assigning
Assigning Multiple
Multiple Organizations
Organizations
The
The planner
planner is
is not
not restricted
restricted during
during the
the processing
processing
session
session to
to only
only the
the default
default organization
organization and
and default
default
schedule
schedule parameters.
parameters. OPM
OPM enables
enables each
each user
user to
to
generate
generate MRP runs and to produce reports for aa
MRP runs and to produce reports for
range
range of
of organizations,
organizations, referred
referred to
to as
as multiple
multiple
organizational access.
organizational access.
(N) OPM Process Planning > MRP > Other > Session Parameters

Setups > Schedule Parameters Assignment - Multiple Organizations
> Change the Default Org for the Current Session Parameter

Chapter 2 - Page 32
Assigning Multiple Organizations
Assigning
Assigning Multiple
Multiple Organizations
Organizations
The planner can run MRP and reports based on any

valid combination of organization codes and
schedule parameters. This combination produces a
unique key that identifies the schedule parameters
throughout the MRP generation and report process.
You must link the organizations to the planner or

user in the User Organization window. Here you
indicate the list of organizations over which the user
has planning authority.
(N) OPM System Administration > OPM System Setup >

User Organizations

Chapter 2 - Page 33
Practice 3 Overview: Defining Rules
Practice
Practice 33 Overview:
Overview:
Defining
Defining Rules
Rules
In
In this
this instructor-guided
instructor-guided practice,
practice, rules
rules are
are
established for the following:
established for the following:
•• Warehouse
Warehouse rules
rules
•• Production
Production rules
rules
•• Warehouse
Warehouse stock
stock transfer
transfer rules
rules

Chapter 2 - Page 34
Practice 3 Instructions: Defining Warehouse Rules
Practice
Instructions:
Defining
Defining Warehouse
Warehouse Rules
Rules
In the Warehouse Rules window, select Purchase as

the planning rules source for ZTPKGS in warehouse
TRW2.
Select the planning rules source for each item in the
TRW1 warehouse as follows:
•• ZTRFGS
ZTRFGS and
and ZTINTS—Produce
ZTINTS—Produce
•• ZTPKGS—Transfer
ZTPKGS—Transfer
•• ZTRM1S
ZTRM1S and
and ZTRM2S—Purchase
ZTRM2S—Purchase
Note: An item can be flagged as any combination of purchased, produced, or

transferred. However, at least one of these flags must be selected for MRP to
plan replenishment supplies.

Chapter 2 - Page 35
Practice 3 Solution: Defining Warehouse Rules
Practice
Solution:
Defining
Defining Warehouse
Warehouse Rules
Rules
(N) OPM Process Planning > MRP > Setup > Warehouse Rules
®

Chapter 2 - Page 36
Practice 3 Instructions: Defining Production Rules
Practice
Instructions:
Defining
Defining Production
Production Rules
Rules
In the Production Rules window, define production

rules for the intermediate and finished goods as
follows:
•• For
For ZTRFGS:
ZTRFGS: Maximum
Maximum quantity
quantity 500,
500, standard
standard
quantity
quantity 100, fixed lead time 4, inner fence
100, fixed lead time 4, inner fence 11
•• For
For ZTINTS:
ZTINTS: Maximum
Maximum quantity
quantity 500,
500, standard
standard
quantity
quantity 100,
100, fixed
fixed lead
lead time
time 8,
8, inner
inner fence
fence 11

Chapter 2 - Page 37
Practice 3 Solution: Defining Production Rules
Practice
Solution:
Defining
Defining Production
Production Rules
Rules
(N) OPM Inventory > Inventory Control > Setup > Reorder Rules >
Production
®

Chapter 2 - Page 38
Practice 3 Instructions: Defining Warehouse Stock
Transfer Rules
Practice
Instructions:
Defining
Defining Warehouse
Warehouse Stock
Stock Transfer
Transfer Rules
Rules
In the Warehouse Transfer Rules window, define

planning rules for packaging, item ZTPKGS:
•• Source
Source warehouse:
warehouse: TRW2
TRW2
•• Target
Target warehouse:
warehouse: TRW1
TRW1
•• Minimum
Minimum quantity:
quantity: 11

Chapter 2 - Page 39
Practice 3 Solution: Defining Warehouse Stock Transfer
Rules
Practice
Solution:
Defining
Defining Warehouse
Warehouse Stock
Stock Transfer
Transfer Rules
Rules
(N) OPM Process Planning > MRP > Setup > Transfer Rules
®

Chapter 2 - Page 40
Summary
Summary
Summary
In
In this
this lesson,
lesson, you
you should
should have
have learned
learned how
how to:
to:
•• Define
Define plant
plant and
and warehouse
warehouse relationships
relationships
•• Set
Set up
up the
the shop
shop calendar
calendar in
in MRP
MRP
•• Define
Define an
an MPS
MPS schedule
schedule
•• Define
Define warehouse
warehouse rules
rules and
and MRP
MRP
•• Define
Define warehouse
warehouse transfer
transfer rules
rules
•• Assign
Assign aa schedule
schedule to
to aa user
user

Chapter 2 - Page 41

Chapter 2 - Page 42
Forecasting and Planning
Chapter 3

Chapter 3 - Page 1
Forecasting
Forecasting and
and Planning
Planning

Chapter 3 - Page 2
Objectives
Objectives
Objectives
After
After completing
completing this
this lesson,
lesson, you
you should
should be
be able
able to
to
do
do the
the following:
following:
•• Use
Use the
the Forecast
Forecast Maintenance
Maintenance window
window
•• Associate
Associate aa forecast
forecast with
with aa production
production schedule
schedule
•• Process
Process the
the MRP
MRP run
run
•• View
View MRP
MRP error
error messages
messages
•• View
View MRP
MRP bucketed
bucketed activity
activity
•• Approve
Approve the
the MRP
MRP run
run

Chapter 3 - Page 3
Forecasting
Forecasting
Forecasting
Item Date Qty Source

NATIONAL A 6/1 50 Central
Forecast Set A 6/1 10 Eastern
A 6/1 25 Western
WESTERN CENTRAL EASTERN

Regional Regional Regional
Forecast Forecast Forecast
Item Date Qty Source Item Date Qty Source Item Date Qty Source
A 6/1 25 Western A 6/1 50 Central A 6/1 10 Eastern
Overview of the Forecasting Module

The Oracle Process Manufacturing (OPM) Forecasting module gives you the
option to allow Master Production Scheduling (MPS) to include sales order
forecast quantities as anticipated item demands.
You can use the Forecasting module to define sales forecasts and enter
appropriate forecast details (such as the item quantities and warehouses for
which the forecasts are being defined). You can then link one or more sales
forecasts to each schedule. This enables you to include numerous sales forecasts
in each Material Requirements Planning (MRP) run performed for a schedule.
Note: The Forecasting module is not actually a forecasting tool, because it does
not assist you in making sales forecasts. It does, however, enable you to enter
and view forecasts and represent their demands in your production planning
activities.

Chapter 3 - Page 4
Dynamic Forecasting
Dynamic Forecasting
OPM
OPM provides
provides dynamic
dynamic forecasting
forecasting periods
periods soso that
that you
you
can
can manage
manage the the near-term
near-term window
window of of scheduling
scheduling in in
more
more detail
detail than
than the
the long
long term.
term.
•• The
The forecast
forecast demand
demand represents
represents all all the
the goods
goods that
that
you
you plan
plan toto ship
ship until
until the
the next
next forecast
forecast date.
date.
–– OPM
OPM doesdoes not
not evenly
evenly distribute
distribute that
that demand
demand
over the period.
over the period.
–– OPM
OPM responds
responds to to forecast
forecast demand
demand by by arranging
arranging
the
the supply
supply forfor the
the period
period toto be
be available
available at at the
the
beginning
beginning of of that
that period.
period.
•• Forecasting
Forecasting supports
supports planning.
planning. IfIf the
the forecast
forecast
period
period is longer than the planning period,
is longer than the planning period, the
the
planner
planner must
must make
make aa decision
decision andand manage
manage the the
forecast
forecast data
data accordingly.
accordingly. ®

Chapter 3 - Page 5
Carrying a Forecast Forward
Carrying a Forecast Forward
When
When approaching
approaching thethe beginning
beginning of
of aa forecast
forecast period,
period,
aa planner
planner must
must evaluate
evaluate the
the supply
supply and
and demand
demand
situation.
situation.
•• IfIf the
the sales
sales order
order demand
demand seems
seems light,
light, the
the planner
planner
may
may choose not to schedule production for
choose not to schedule production for the
the
entire
entire forecast
forecast demand.
demand.
•• The
The planner
planner must
must decide
decide whether
whether oror not
not to
to carry
carry
forward
forward the
the remaining
remaining forecast
forecast demand.
demand. By By adding
adding
aa row
row to the forecast, the planner designates the
to the forecast, the planner designates the
forecast
forecast toto carry
carry forward.
forward.
Example
Your forecast for July 1 is 4,000 pounds for the month. Sometime in June, you
decide that you do not need all 4,000 pounds on July 1, so you look at the sales
order demand and decide to make 2,000 pounds for July 1 and 2,000 more by
July 15. You edit the forecast data accordingly and let MRP schedule
production carry-forward functionality.

Chapter 3 - Page 6
Performing Forecast Maintenance
Performing
Performing Forecast
Maintenance
Go
Go to
to the
the Forecast
Maintenance window
window toto enter
enter
items
items that
that you
you want
want associated
associated with
with the
the schedule
schedule
named
named in in the
the MPS
MPS setup.
setup.
(N) OPM Process Planning > Forecasting > Forecast

®
Navigation
N = Navigator
T = Tab
M = Menu
I = Icon
H = Hyperlink
B = Button
Help = Oracle Applications Help System

OPM Process Planning > OPM MPS/MRP and Forecasting User’s Guide >
Forecasting > Forecast Maintenance Window
> Forecast Maintenance Window Field References

Chapter 3 - Page 7
Associating Forecasts
Associating Forecasts
Current forecast
Original
forecast
Customer orders

Chapter 3 - Page 8
Associating a Forecast with a Schedule
Associating
Associating aa Forecast
Forecast with
with aa Schedule
Schedule
Go
Go to
to the
the Forecast
Forecast Schedule
Schedule Association
Association window
window to to
associate
associate or or link
link one
one or
or more
more forecasts
forecasts to
to aa schedule.
schedule.
This
This determines
determines which
which forecasts
forecasts are
are visible
visible to
to that
that
schedule
schedule and enables you to include numerous sales
and enables you to include numerous sales
forecasts
forecasts inin each
each MRP
MRP run
run performed
performed for
for aa schedule.
schedule.
Forecast Schedule
(N) OPM Process Planning > Forecasting > Schedule Association

®

Forecasting > Associating a Forecast with a Schedule
> Forecast Schedule Association Field References

Chapter 3 - Page 9
Setting Up MPS to Include Sales Forecast
Setting
Setting Up
Up MPS
MPS to
to Include
Include Sales
Sales Forecast
Forecast
After
After you
you complete
complete the
the Forecast
Maintenance window
window
and
and associate
associate the
the forecast
forecast with
with one
one or
or more
more
schedules,
schedules, you
you must
must set
set up
up MPS
MPS so
so that
that the
the sales
sales
forecast
forecast quantities appear as demand on the Material
quantities appear as demand on the Material
Activity
Activity and
and Bucketed
Bucketed Material
Material Activity
Activity reports.
reports.
®

Setting Up MPS to Include Sales Forecasts

Chapter 3 - Page 10
Practice 1 Overview
Practice
Overview
This
This hands-on
hands-on and and guided
guided practice
practice covers
covers the
the
following
following topics:
topics:
•• Creating
Creating aa forecast
forecast
•• Linking
Linking the
the forecast
forecast to
to your
your schedule
schedule
•• Running
Running the
the Bucketed
Bucketed Material
Material Inquiry
Inquiry and
and
reviewing
reviewing the
the output
output

Chapter 3 - Page 11
Practice 1 Instructions: Creating a Forecast
Practice
Instructions:
Creating
Creating aa Forecast
Forecast
In
In the
the Forecast
Forecast window,
window, enter
enter demand
demand quantities
quantities for
for
ice
ice cream
cream for
for the
the next
next two
two days
days asas follows:
follows:
•• Forecast
Forecast name:
name: ZTRxx
ZTRxx
•• Description:
Description: Forecast for
Forecast for daily
daily ice
ice cream
cream demand
demand
•• Forecast
Forecast details
details as
as follows:
follows:
–– Item:
Item: 9010
9010
–– Organization:
Organization: PR1
PR1
–– Warehouse:
Warehouse: PR1
PR1
–– Row
Row 11 date
date and
and quantity:
quantity: Today
Today and
and 880
880 cases
cases
–– Row
Row 22 date
date and
and quantity:
quantity: Tomorrow
Tomorrow and
and 440
440
cases
cases ®

Chapter 3 - Page 12
Practice 1 Solution: Creating a Forecast
Practice
Solution:
Creating
Creating aa Forecast
Forecast
(N) OPM Process Planning > Forecasting > Forecast

®

Chapter 3 - Page 13
Practice 1 Instructions: Linking the Forecast to a
Schedule
Practice
Instructions:
Linking
Linking the Forecast
Forecast to to aa Schedule
Schedule
In
In the
the Forecast
Forecast Schedule
Schedule Association
Association window,
window, link
link
your forecast to the master schedule ERP.
your forecast to the master schedule ERP.
Forecast Schedule

Chapter 3 - Page 14
Practice 1 Solution: Linking the Forecast to a Schedule
Practice
Solution:
Linking
Linking the Forecast
Forecast to
to aa Schedule
Schedule
(N) OPM Process Planning > Forecasting > Schedule Association
Practice 1 Solution: Linking the Forecast to a Schedule

In the Forecast Schedule Association window, query on the organization PR1.
In the first empty Forecast row, enter your forecast number and click Save.

Chapter 3 - Page 15
Practice 1 Instructions: Running an Inquiry
Practice
Instructions:
Running
Running an an Inquiry
Inquiry
In
In the
the Bucketed
Bucketed Material
Material Inquiry
Inquiry window,
window, check
check for
for
the
the demand
demand details
details that
that you
you have
have entered.
entered.
MRP
MRP Bucketed
Bucketed Material
Material Activity
Activity

Chapter 3 - Page 16
Practice 1 Solution: Running an Inquiry
Practice
Solution:
Running
Running an
an Inquiry
Inquiry
(N) OPM Process Planning > MRP > Inquiries > MRP Bucketed
®
Practice 1 Solution: Running an Inquiry

In the Bucketed Material Inquiry window, query on the following:
• Organization: PR1
• Schedule: ERP
• Item: 9010
• Warehouse: PR1
Click Tab to populate the Demand Details folder.
Why are your forecast volumes not reflected in the demand numbers?

Chapter 3 - Page 17
Planning Recommendations
Planning
Planning Recommendations
Recommendations
Create new orders Reschedule existing orders
Demand Demand
Supply Supply
MPS/MRP
Demand Demand
Supply Supply
Cancel existing orders Reschedule existing orders

®

Chapter 3 - Page 18
Material Requirement Run
Material
Material Requirement
Requirement Run
Run
Material
Material Requirements
Requirements Planning
Planning compares
compares inventory
inventory
supply
supply to
to demand
demand and
and then
then makes
makes suggestions
suggestions toto
keep them in balance. MRP considers the following
keep them in balance. MRP considers the following
components
components whenwhen calculating
calculating suggestions:
suggestions:
•• Finished
Finished goods
goods
•• Raw
Raw materials
materials
•• Intermediate
Intermediate products
products
•• Coproducts
Coproducts
•• Packaging
Packaging materials
materials

Chapter 3 - Page 19
Material
Requirement Run
Run
MRP
MRP looks
looks at
at pending
pending inventory
inventory transactions,
transactions, applies
applies
demand
demand toto current
current stock
stock balances,
balances, and
and projects
projects what
what
the inventory balance will be on specific dates.
the inventory balance will be on specific dates.
Pending Demand effect

Inventory balance
inventory
balances
+ on current
stock balances = on specific dates

Chapter 3 - Page 20
MRP Bill of Materials
MRP
MRP Bill
Bill of
of Materials
Materials
Finished
Finished goods
goods inin OPM
OPM consist
consist of
of lower-level
lower-level
ingredients
ingredients that
that are
are tied
tied together
together by
by formulas.
formulas.
Coproducts/products/
Coproducts/products/
finished goods
Intermediate goods
Raw materials
Bill of materials (BOM) and formulas for finished products

®

Chapter 3 - Page 21
MRP
MRP Bill
Bill of
of Materials
Materials
When
When you
you run
run MRP,
MRP, OPM
OPM explodes
explodes the
the finished
finished
goods
goods formula
formula to
to determine
determine demand
demand for
for the
the
intermediate products and ingredients within.
intermediate products and ingredients within.
BOM ®
MRP Explosion
MRP then makes suggestions for purchase, transfer, or production of these
intermediate products and raw materials. Each demand for an item at a specific
bill level creates demand for the items in the level below it. OPM adds all
instances of an ingredient in the bill of materials and then calculates the total
required quantity.
Material Requirements Run >MRP Bill of Materials > MRP Explosion
> MRP and Blanket Purchase Orders

Chapter 3 - Page 22
MRP
MRP Bill
Bill of
of Materials
Materials
You
You can
can flag
flag MRP
MRP toto suggest
suggest changes
changes to
to the
the delivery
delivery
quantity
quantity and
and date
date in
in the
the blanket
blanket purchase
purchase order.
order.
OPM
OPM Schedule
Schedule Parameters
Parameters
MRP and BPOs

A flag in the Schedule Parameters window enables you to determine whether
MRP should consider (as potential supply) scheduled deliveries against blanket
purchase orders. Rather than suggesting that new purchase orders be created,
MRP produces action messages that suggest releases against a blanket purchase
order delivery schedule to fill upcoming material requirements.

Chapter 3 - Page 23
Running MRP
Running
Running MRP
MRP
You
You use
use the
the MRP
MRP Run
Run window
window to
to submit
submit aa batch
batch job
job
to initiate an MRP run.
to initiate an MRP run.
MRP
MRP Run
Run
(N) OPM Process Planning > MRP > MRP Run

®

Material Requirements Run > Running MRP
> Running MRP Procedure
> MRP Run Window Field References

Chapter 3 - Page 24
Material
Requirement Run
Run
After
After the
the MRP
MRP run
run has
has finished
finished but
but before
before you
you
approve
approve it,
it, you
you may
may want
want to
to do
do the
the following:
following:
1.
1. Check
Check thethe Error
Error Messages
Messages Report.
Report.
2.
2. View
View the
the Bucket
Bucket Material
Material Activity
Activity Inquiry
Inquiry data.
data.
3.
3. Check
Check the
the Action
Action Messages
Messages window,
window, as as aa
reference.
reference. Approving
Approving action
action messages
messages occurs
occurs
after
after MRP
MRP is is approved.
approved.
IfIf there
there are
are no
no errors,
errors, you
you do
do the
the following:
following:
1.
1. Approve
Approve the the run.
run.
2.
2. Approve
Approve action
action messages
messages andand act
act on
on MRP
MRP
suggestions
suggestions as
as applicable.
applicable.
®

Chapter 3 - Page 25
Errors and Exceptions
Errors
Errors and
and Exceptions
Exceptions
The
The Error
Error Messages
Messages Inquiry
Inquiry lists
lists warning
warning and
and errors
errors
from
from the
the last
last MRP
MRP run
run that
that do
do not
not cause
cause the
the run
run to
to fail
fail
but
but indicate
indicate situations
situations that
that may
may require
require actions
actions
before
before the
the run
run is
is approved.
approved.
Today
Demand Demand
Supply Supply
Shortage Compression days
Demand
Supply
Excess
®

Chapter 3 - Page 26
Viewing MRP Error Messages
Viewing
Viewing MRP
MRP Error
Error Messages
Messages
You
You use
use the
the Error
Error Messages
Messages window
window to
to view
view errors
errors
and
and exceptions.
exceptions.
(N) OPM Process Planning > MRP > Reports > Standard > Run
®

OPM Process Planning > OPM MPS/MRP and Forecasting User’s Guide > MRP
Error Messages
> Viewing MRP Error Messages Procedure
> Error Messages Window Field References

Chapter 3 - Page 27
Bucketed Material Activity
Bucketed
Bucketed Material
Material Activity
Inventory interface
Material transaction
OPM OPM Inventory

Order Entry Management
Oracle Inventory
Ship confirm Inventory balance

Order Item Date Qty Item Date Qty
1432 A 6/1 10 A 6/1 59
49
Supply/demand
Order Item Date Qty
1432.Standard.ORDER ENTRY A 6/1 -10
®
Overview of MRP Bucketed Material Activity

OPM offers a dynamic Bucketed Material Activity Inquiry, which indicates the
effects of pending inventory transactions on stock balances for a specified
period. Balances are shown as of the last day of each time period bucket (you
define these buckets of time in the MPS Parameters window). This information
can help you in managing your production schedule.

Chapter 3 - Page 28
Running MRP Bucketed Activity Inquiry
Running
Running MRP
MRP Bucketed
Bucketed Activity
Activity Inquiry
Inquiry
To
To view
view what
what impact
impact pending
pending inventory
inventory transactions
transactions
have
have on
on stock
stock balances
balances for
for aa specified
specified item
item or
or
warehouse,
warehouse, youyou can
can run
run an
an MRP
MRP Bucketed
Bucketed Activity
Activity
Inquiry
Inquiry for
for aa specific
specific item
item in
in one
one warehouse.
warehouse.
MRP
MRP Bucketed
Bucketed Activity
Activity
®

Bucketed Material Activity > Viewing MRP Bucketed Material Activity
> Viewing MRP Bucketed Material Activity Procedure
> Bucketed Material Activity Inquiry Field References
> Bucketed Material Activity Inquiry - Actions Menu

Chapter 3 - Page 29
MRP Run Overview
MRP
MRP Run
Run Overview
Overview
After
After you
you review
review the
the Error
Error Messages
Messages and
and Action
Action
Messages
Messages reports
reports for
for the
the last
last MRP
MRP run
run and
and are
are
satisfied
satisfied with the results, you can approve the run.
with the results, you can approve the run.

Chapter 3 - Page 30
Approving the MRP Run
Approving
Approving the MRP
MRP Run
Run
To
To approve
approve the
the MRP
MRP run,
run, go
go to
to the
the MRP
MRP Run
Run window,
window,
select
select the
the run
run that
that you
you want
want to
to approve,
approve, and
and click
click the
the
Approve Run button.
Approve Run button.

Approving the MRP Run > Approving the MRP Run
> Approving the MRP Run Procedure

Chapter 3 - Page 31
Practice 2 Overview
Practice
Overview
This
This hands-on
hands-on and
and guided
guided practice
practice covers
covers the
the
following
following topics:
topics:
•• Running
Running MRP
MRP
•• Running
Running the
the Bucketed
Bucketed Material
Material and
and Action
Action
Messages
Messages inquiries
inquiries and
and reviewing
reviewing outputs
outputs
•• Approving
Approving the
the MRP
MRP run
run

Chapter 3 - Page 32
Practice 2 Instructions: Running MRP
Practice
Instructions:
Running
Running MRPMRP
In
In the
the MRP
MRP RunRun window,
window, thethe instructor
instructor queries
queries on
on the
the
organization
organization PR1.PR1. To To initiate
initiate an
an MRP,
MRP, you
you need
need to
to do
do
the
the following:
following:
•• InIn the
the first
first open
open Queue
Queue row,
row, select
select NOW
NOW from
from the
the
drop-down
drop-down list.list.
•• Place
Place the
the cursor
cursor inin the
the Batch
Batch Date
Date column
column of
of the
the
same
same row.
row.
•• Save
Save your
your work,
work, noting
noting the
the process
process number.
number.

Chapter 3 - Page 33
Practice 2 Solution: Running MRP
Practice
Solution:
Running
Running MRP
MRP

®

Chapter 3 - Page 34
Practice 2 Instructions: Viewing Inquiries
Practice
Instructions:
Viewing
Viewing Inquiries
Inquiries
After
After MRP
MRP has
has run
run successfully,
successfully, review
review the
the following
following
inquiries:
inquiries:
•• Error
Error Messages
Messages
•• MRP
MRP Bucketed
Bucketed Activity
Activity
•• MRP
MRP Material
Material Activity
Activity
•• Action
Action Messages
Messages

Chapter 3 - Page 35
Practice 2 Solution: Viewing Inquiries
Practice
Solution:
Viewing
Viewing Inquiries
Inquiries
®

Chapter 3 - Page 36
Practice
Solution:
Viewing
Viewing Inquiries
Inquiries
What
What happened
happened toto the
the 880
880 cases
cases of
of ice
ice cream
cream
sandwiches
sandwiches in
in the
the demand
demand forecast?
forecast?

When entering a forecast, you cannot enter for current or past time. These
volumes are not reflected in a forecast.

Chapter 3 - Page 37
Practice
Solution:
Viewing
Viewing Inquiries
Inquiries
MRP
MRP Inquiries
Inquiries
(N) OPM Process Planning > MRP > Inquiries > MRP Material
(N) OPM Process Planning > MRP > Inquiries > Action Messages
(N) OPM Process Planning > MRP > Inquiries > Error Messages

Chapter 3 - Page 38
Practice 2 Instructions: Approving MRP
Practice
Instructions:
Approving
Approving MRPMRP
After
After reviewing
reviewing the
the inquiries,
inquiries, ifif no
no revisions
revisions to
to the
the
MRP
MRP are
are required,
required, you
you can
can approve
approve the the following:
following:
•• The
The MRP
MRP run
run
•• Action
Action messages
messages

Chapter 3 - Page 39
Practice 2 Solution: Approving MRP
Practice
Solution:
Approving
Approving MRP
MRP
In
In the
the MRP
MRP RunRun window,
window, thethe instructor
instructor approves
approves the the
MRP run as follows:
MRP run as follows:
•• Place
Place the
the cursor
cursor in
in the
the box
box onon the
the left
left of
of the
the rowrow to
to
be
be approved (this should be the top row if it is the
approved (this should be the top row if it is the
last
last MRP
MRP that
that has
has been
been run).
run).
•• Click
Click the
the Approve
Approve RunRun button.
button.


Chapter 3 - Page 40
Practice 2 Solution: Approving MRP
Practice
Solution:
Approving
Approving MRP
MRP
®

Chapter 3 - Page 41
Summary
Summary
Summary
In
In this
this lesson,
lesson, you
you should
should have
have learned
learned how
how to:
to:
•• Use
Use the
the Forecast
Maintenance window
window
•• Associate
Associate aa forecast
forecast with
with aa production
production schedule
schedule
•• Process
Process the
the MRP
MRP run
run
•• View
View MRP
MRP error
error messages
messages
•• View
View MRP
MRP bucketed
bucketed activity
activity
•• Approve
Approve the
the MRP
MRP run
run

Chapter 3 - Page 42
Approving and Analyzing
MPS and MRP
Chapter 4
Approving and Analyzing MPS and MRP

Chapter 4 - Page 1
Approving
Approving and
and Analyzing
Analyzing MPS
MPS and
and MRP
MRP

Chapter 4 - Page 2
Objectives
Objectives
Objectives
After
After completing
completing this
this lesson,
lesson, you
you should
should be
be able
able to
to
do
do the
the following:
following:
•• Approve
Approve MRP
MRP action
action messages
messages
•• Approve
Approve batches
batches and
and firm
firm planned
planned orders
orders (FPOs)
(FPOs)
•• Approve
Approve purchase
purchase order
order requisitions
requisitions
•• Reschedule
Reschedule production
production batches
batches
•• Display
Display pegging
pegging details
details
•• View
View material
material information
information
•• Print
Print reports
reports

Chapter 4 - Page 3
Looking at Planning Suggestions
Looking
Looking at
at Planning
Planning Suggestions
Suggestions
Create orders Reschedule
Demand Demand
Supply Supply
MPS/MRP
Demand Demand
Supply Supply
Cancel orders Reschedule existing orders

®

Chapter 4 - Page 4
The Action Messages
The
The Action
Action Messages
Messages
In
In the
the MRP
MRP Action
Action Message
Message Inquiry
Inquiry window,
window, you
you
can
can approve
approve and
and convert
convert the
the following
following types
types of
of
MRP-generated action messages:
MRP-generated action messages:
•• Reschedule
Reschedule
•• Move
Move
•• Resize
Resize (release
(release aa production
production batch)
batch)
•• Create
Create aa new
new batch
batch (to
(to FPOs
FPOs or
or directly
directly to
to
production
production batch
batch tickets)
tickets)

Action Messages > Additional Information
> Action Messages and Their Meanings

Chapter 4 - Page 5
Approving Action Messages
Approving
Approving Action
Action Messages
Messages
To
To convert
convert aa planned
planned production
production message
message toto aa firm
firm
planned
planned order
order or
or aa batch
batch ticket,
ticket, you
you must
must approve
approve thethe
desired
desired action
action message.
message. Remember
Remember thatthat you
you must
must
first
first approve
approve the
the MRP
MRP before
before you
you can
can approve
approve
individual message lines.
individual message lines.
MRP
MRP Run
Run Action
Action Messages
Messages
®

Action Messages > Approving MRP Action Messages
> Approving MRP Action Messages Procedure
> MRP Action Messages Inquiry Field References

Chapter 4 - Page 6
Approving Batches and FPOs
Approving
Approving Batches and
and FPOs
You
You can
can also
also use
use the
the MRP
MRP Action
Action Messages
Messages window
window
to
to approve
approve individual
individual FPO
FPO or
or batch
batch suggestions
suggestions for
for
scheduling.
scheduling.
Action
Action Messages
Messages
®

Action Messages > Approving Batches/FPOs
> Scheduling FPOs or Batches from Action Messages Procedure
> MRP Action Messages Inquiry Field References
> View Effectivities Window
> View Effectivities Procedure
> Approve Action Messages Field References

Chapter 4 - Page 7
Approving Purchase Order Requisitions
Approving
Approving Purchase
Purchase Order
Order Requisitions
Requisitions
The
The MRP
MRP Action
Action Messages
Messages Inquiry
Inquiry gives
gives you
you the
the
ability
ability to
to approve
approve aa recommendation
recommendation to to release
release
purchase.
purchase. IfIf you
you approve
approve this
this message,
message, thethe Convert
Convert
to
to Purchase Requisition window opens and displays
Purchase Requisition window opens and displays
all
all the
the related
related action
action messages
messages for
for aa given
given item
item or
or
warehouse
warehouse combination.
combination.
(N) OPM Process Planning > MRP > Inquiries > Action Messages >
(B) Approve
®

Action Messages >Approving Purchase Order Requisitions
> Convert to Purchase Requisition Procedure
> Convert to Purchase Requisition Window Field References

Chapter 4 - Page 8
Scheduling Changes
Scheduling
Scheduling Changes
Changes
B Lead time: 6
D Lead time: 6 A Lead time: 2
C Lead time: 5
E Lead time: 5
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
July Item LT Start Complete
A 2 17 19
B 6 9 17
C 5 10 17
D 6 2 10
E 5 4 10
®
Rescheduling Production Batches

In addition to using the Approve Action Messages window, the buyer or planner
can alter a production schedule by changing the start and end dates of scheduled
production batches.
Note:
• If you change the start date of the batch, you change the inventory
ingredient commitments.
• If you change the end date of the batch, you change the availability of the
finished goods.

Chapter 4 - Page 9
Practice 1
Practice
Practice 11
In
In this
this multiple-choice
multiple-choice practice,
practice, supply
supply the
the correct
correct
answers
answers from
from the
the following
following choices:
choices:
•• Inventory
Inventory ingredient
ingredient commitments
commitments
•• Firm
Firm planned
planned orders
orders
•• MRPMRP run
run
•• Availability
Availability of
of finished
finished goods
goods
1.
1. You must first approve the
You must first approve the __________
__________ before
before you
you
can
can approve
approve individual
individual message
message lines.
lines.
2.
2. You
You can
can also
also use
use the
the MRP
MRP action
action messages
messages toto
approve
approve ______________
______________ or or batch
batch suggestions
suggestions for
for
scheduling.
scheduling.
®

Chapter 4 - Page 10
Practice 1
Practice
Practice 11
In
In this
this multiple-choice
multiple-choice practice,
practice, supply
supply the
the correct
correct
answers
answers from from the
the following
following choices:
choices:
•• Inventory
Inventory ingredient
ingredient commitments
commitments
•• Firm
Firm planned
planned orders
orders
•• MRPMRP run run
•• Availability
Availability ofof finished
finished goods
goods
3.3. If
If aa production
production schedule
schedule is is altered
altered by
by changing
changing the
the
start
start and
and end
end dates
dates ofof scheduled
scheduled production
production
batches,
batches, thethe following
following also
also changes:
changes:
•• Changing
Changing the the start
start date
date changes
changes thethe ___________.
___________.
•• Changing
Changing the
the end
end date
date changes
changes the
the ____________.
____________.
®

Chapter 4 - Page 11
Practice
Solutions
1.
1. You
You must must first
first approve
approve the
the MRP
MRP run
run before
before you
you
can
can approve
approve individual
individual message
message lines.
lines.
2.
2. You
You can can also
also useuse the
the MRP
MRP action
action messages
messages to to
approve
approve firm planned orders or batch suggestions
firm planned orders or batch suggestions
for
for scheduling.
scheduling.
3.
3. IfIf aa production
production schedule
schedule is is altered
altered by
by changing
changing the
the
start
start and and end
end dates
dates of
of scheduled
scheduled production
production
batches,
batches, the the following
following also
also changes:
changes:
–– Changing
Changing the the start
start date
date changes
changes the
the inventory
inventory
–– Changing
Changing the the end
end date
date changes
changes the
the availability
availability
of
of finished
finished goods.
goods.
®

Chapter 4 - Page 12
Pegging Details
Pegging
Pegging Details
Details
(N) OPM Process Planning > MRP > Inquiries > Action Messages >
(B) Pegging Details
®

Action Messages > Pegging Details
> Pegging Details Procedure
> Pegging Details Window Field References

Chapter 4 - Page 13
Online Inquiries
Online Inquiries
The
The MRP
MRP and
and MPS
MPS applications
applications offer
offer online
online query
query
displays.
displays. These
These online
online reports
reports help
help you
you decide
decide what
what
products
products and
and ingredients
ingredients you
you need
need and
and when
when you
you will
will
need them.
need them.
• MRP Material Activity Inquiry

• MPS Bucketed Material Inquiry

Chapter 4 - Page 14
Viewing MPS Material Activity Information
Viewing
Viewing MPS
MPS Material
Material Activity
Activity Information
Information
The
The MPS
MPS Material
Material Activity
Activity Inquiry
Inquiry lists
lists (in
(in chronological
chronological
order)
order) pending
pending inventory
inventory transaction
transaction activity
activity for
for an
an item
item
in a specific warehouse or all warehouses to which
in a specific warehouse or all warehouses to which the the
planner
planner has
has authority.
authority. Pending
Pending inventory
inventory transactions
transactions
include the following:
include the following:
•• Sales
Sales orders
orders
•• Purchase
Purchase orders
orders
•• FPOs
FPOs and
and production
production batches
batches
•• Anything
Anything else
else that
that has
has an
an anticipated
anticipated effect
effect on
on stock
stock
balances
balances
(N) OPM Process Planning > MPS > Inquiries > Material Activity

OPM Process Planning > OPM MPS/MRP and Forecasting User’s Guide
>MPS/MRP Online Inquiries > Viewing MPS Material Activity Information
> Viewing MPS Material Activity Online Procedure
> MPS Material Activity Window Field References
> MPS Material Activity Inquiry - Actions Menu

Chapter 4 - Page 15
Viewing MPS Bucketed Material Information
Viewing
Viewing MPS
MPS Bucketed
Bucketed Material
Material
Information
Information
The
The MPS
MPS Bucketed
Bucketed Material
Material Inquiry
Inquiry lists
lists pending
pending
transaction
transaction information
information for
for aa single
single item
item in
in one
one or
or
more warehouses. This inquiry shows the
more warehouses. This inquiry shows the following: following:
•• Aggregate
Aggregate supply
supply and
and demand
demand information
information for for the
the
item, grouped into categories
item, grouped into categories
•• AA time
time bucket–based
bucket–based format,
format, listing
listing all
all pending
pending
supply
supply and
and demand
demand for
for an
an item,
item, aggregated
aggregated by by day
day
and
and week
week
(N) OPM Process Planning > MPS > Inquiries > Bucketed Material

MPS/MRP Online Inquiries > Viewing MPS Bucketed Material Information
> Viewing MPS Bucketed Material Information Procedure
> MPS Bucketed Material Inquiry Field References
> MPS Bucketed Material Inquiry - Actions Menu

Chapter 4 - Page 16
MPS and MRP Reports
MPS
MPS and
and MRP Reports
Reports
Each
Each of
of the
the MRP
MRP andand MPS
MPS online
online inquiries
inquiries is
is
available
available as
as aa printed
printed report,
report, already
already formatted
formatted and
and
ready to run:
ready to run:
•• Action
Action Messages
Messages
•• Error
Error Messages
Messages
•• MRP
MRP Bucketed
Bucketed Material
Material Activity
Activity
•• MRP
MRP Material
Material Activity
Activity (Unbucketed)
(Unbucketed)
•• MPS
MPS Bucketed
Bucketed Material
Material
•• MPS
MPS Material
Material Activity
Activity
(Unbucketed)
(Unbucketed)
•• Reorder
Reorder Point
Point
®

Chapter 4 - Page 17
Printing the Action Messages Report
Printing
Printing the
the Action
Action Messages
Messages Report
Report
This
This report
report lists
lists the
the replenishment
replenishment suggestions
suggestions
generated
generated by OPM during the last MRP run
by OPM during the last MRP run for
for the
the
organization and schedule parameters
organization and schedule parameters that youthat you
specify.
specify. You
You can
can restrict
restrict the
the report
report to
to messages
messages
concerning
concerning only
only those
those items
items in
in which
which each
each planner
planner
has
has interest
interest by
by restricting
restricting the
the generated
generated action
action
messages
messages asas follows:
follows:
•• Planning
Planning classes
classes
•• Planners
Planners
•• Transaction
Transaction dates
dates

Action Messages > Running the MRP Action Messages Report
> Running the MRP Action Messages Report Procedure

Chapter 4 - Page 18
Printing the MRP Bucketed Material Report
Printing
Printing the
the MRP Bucketed
Bucketed Material
Material
Report
Report
This
This report
report presents
presents aa view
view of
of the
the effects
effects of
of pending
pending
inventory transactions on stock quantities.
inventory transactions on stock quantities. This This
report
report is
is similar
similar to
to the
the MPS
MPS version
version of
of the
the Bucketed
Bucketed
Material
Material Report, but it also shows the effects on
Report, but it also shows the effects on
inventory
inventory quantities
quantities ofof the
the suggested
suggested actions
actions
generated
generated during
during the
the most
most recent
recent MRP
MRP run.
run.

and MPS Reports > Running the MRP Bucketed Material Report
> Submitting the Report
> MRP Bucketed Material Report Parameters
> MRP Bucketed Material Report Output

Chapter 4 - Page 19
Printing the MRP Material Activity Report
Printing
Printing the
the MRP
MRP Material
Material Activity
Activity Report
Report
This
This report
report lists
lists actual
actual pending
pending and
and past-due
past-due itemitem
transactions, and the resulting projected balances,
transactions, and the resulting projected balances,
for
for the
the data
data ranges
ranges that
that you
you specify.
specify. ItIt also
also includes
includes
individual
individual transactions suggested by MRP and
transactions suggested by MRP and their
their
projected
projected effects
effects onon inventory
inventory balances.
balances.

and MPS Reports > Running the MRP Material Activity Report
> Submitting the Report
> MRP Material Activity Report Parameters
> MRP Material Activity Report Output

Chapter 4 - Page 20
Printing the MPS Material Activity Report
Printing
Printing the
the MPS
MPS Material
Material Activity
Activity Report
Report
This
This report
report chronologically
chronologically lists
lists pending
pending inventory
inventory
transaction activity for an item in a specific
transaction activity for an item in a specific
warehouse
warehouse oror all
all warehouses
warehouses overover which
which the
the planner
planner
has authority.
has authority.

and MPS Reports > Running the MPS Material Activity Report
> Submitting the Selected Report
> Selected Report Parameters
> MPS Material Activity Report Output
> Material Activity Report - Additional Discussions

Chapter 4 - Page 21
Printing the MPS Bucketed Material Report
Printing
Printing the
the MPS
MPS Bucketed
Bucketed Material
Material
Report
Report
This
This report
report lists
lists pending
pending transaction
transaction information
information forfor aa
single
single item
item in
in one
one oror more
more warehouses.
warehouses.
•• This
This report
report shows
shows aggregate
aggregate supply
supply andand demand
demand
information
information for the item, grouped into categories.
for the item, grouped into categories.
•• The
The aggregate
aggregate supply
supply andand demand
demand for for the
the item
item in
in
each
each category
category isis listed,
listed, rather
rather than
than the
the individual
individual
transactions.
transactions.

and MPS Reports > Running the MPS Bucketed Material Report
> Printing the MPS Bucketed Material Activity Report Procedure
> MPS Bucketed Material Activity Report Parameters
> MPS Bucketed Material Report - Balances and Safety Stock
Requirements

Chapter 4 - Page 22
Printing the Reorder Point Report
Printing
Printing the
the Reorder
Reorder Point
Point Report
Report
This
This report
report shows
shows whichwhich items
items have
have reached
reached the
the
reorder
reorder point.
point. ItIt also
also shows
shows the
the amount
amount of
of on-hand
on-hand
inventory
inventory and
and the
the item’s
item’s economic
economic order
order quantity
quantity
(EOQ).
(EOQ).

and MPS Reports > Running the Reorder Point Report
> Submitting the Reorder Point Report Procedure
> Reorder Point Report Parameters
> Reorder Point Report Output

Chapter 4 - Page 23
Summary
Summary
Summary
In
In this
this lesson,
lesson, you
you should
should have
have learned
learned how
how to:
to:
•• Approve
Approve MRP
MRP action
action messages
messages
•• Approve
Approve batches
batches and
and FPOs
FPOs
•• Approve
Approve purchase
purchase order
order requisitions
requisitions
•• Reschedule
Reschedule production
production batches
batches
•• Display
Display pegging
pegging details
details
•• View
View material
material information
information
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Chapter 4 - Page 24

OPM: Material Requirements Planning, Release 11: Student Guide

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OPM: Material Requirements

Planning, Release 11i

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MPS and MRP Overview ......................................................................................................1-1

Copyright © Oracle Corporation, 2000. All rights reserved.

OPM: Material Requirements Planning, Release11i Table of Contents

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OPM: Material Requirements Planning, Release11i Table of Contents

Copyright © Oracle Corporation, 2000. All rights reserved.

OPM: Material Requirements Planning, Release11i Table of Contents

• OPM Inventory Management

• OPM Order Fulfillment

• OPM Purchase Management

How This Course Is Organized

OPM: Material Requirements Planning, Release 11i is an instructor-led course

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MPS and MRP Overview

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Copyright © Oracle Corporation, 2000. All rights reserved.

MPS and MRP Overview

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MPS and MRP Overview

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Overview of MRP and MPS

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MPS and MRP Overview

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Overview of MRP and MPS (continued)