MRP for Maintenance Order

[#1]

Dear EAM Expert,

We want to implement MRP to handle spare part stock and fulfillment.

Is it possible?

Is there any consideration for MRP setting and maintenance process as well since maintenance order are created mostly for corrective maintenance to fix insidential problem without planning?

Thanks

Adi

[Former Member · Accepted solution]

Hi Adi,

Suggest to use Forecast based planning for all the spare parts materials. In FBP system will consider the materials consumption for the past period and forecast the requirements. After forecasting once MRP is run system will generate purchase requsitions.

Forecasting period can be monthly/year etc as required for business. Generating purchase requsitions based on forecast can be monthly or one single PR for year etc.

Refer the below SAP Help for details.

Forecast-Based Planning - MRP Procedures - SAP Library

Also refer to the below document posted by me on forecast based planning.

http://scn.sap.com/docs/DOC-53063

Thanks & Regards,

Ramagiri

[former_member182535]

Hi Adi,

           You can start MRP for spares material(ERSA) and can plan to spares during corrective and preventive maintenance.but firstly maintain MRP type(VB),Reorder point,MRP Controller and safety stock in Material Master and run MRP(MD03) on daily or weekly basis.

And check your shortage spares PR at planning Result(MD04).

[Former Member]

Thanks Singh,

We have try to use setting like your suggestion.

It's OK for fast moving spare part that we manage the stock with safety stock.

We not use reorder point for MRP.

One of the problem is came from following case scenario:

1. Maintenance section create Corrective Maintenance Order

2. That MO use component which is slow moving part

3. Stock of slow moving part is not managed, safety stock is zero

4. When Warehouse runs MRP, there is PR created to purchase the requested material from MO.

5. Whie the material in procurement process, the equipment is urgently to be fixed. And Maintenance Section try to use any possible replacement part and it works.

6. After the equipment can be operated after fixing, The Maintenance Section want to TECO the MO but it can't be done until requested component sets Final Issue

7. Then Maintenance section sets Final Issue the requested material of MO which in the same time, this material is in procurement progress.

8. When procurement done and the material is received, it will not be issued to MO which request it because MO has been TECO. This material will keep in stock and will problem to Warehouse section due to stock level and space

Any idea about case scenario above?

Thanks

Adi

[former_member182535]

Adi,

       This is very hypothetical issue because you want procure the stock for Maintenance Activity but warehouse section space problem and Maintenance section want TECO MO without technical activity completion as well as he do final issue tick without component issuance.

But you want implement MRP  for spares that maintain safety stock for fast and slow moving part according to consumption and implement to Replenishment Lead Time during material availability check.

[Former Member]

Thanks Singh,

The scenario that i told above is actual condition, not hypothetical issue.

Based on that situation:

1. How to determjne Safety Stock and Re Order Point of the Spare Part?  It should different between Fast Moving and Slow Movjng right?

2. How to decide the schedule of running MRP? Daily, weekly, monthly etc?

Thanks

[former_member182535]

OK Adi,

             Maintenance section would be defined Reorder point and safety stock level according to criticality of spares.

The reorder point should cover the average material requirements expected during the replenishment lead time.

The safety stock exists to cover both excess material consumption within the replenishment lead time and any additional requirements that may occur due to delivery delays. Therefore, the safety stock is included in the reorder level.

The following values are important for defining the reorder point:

• Safety stock
• Average consumption
• Replenishment lead time

The following values are important for defining the safety stock:

• Past consumption values (historical data) or future requirements
• Vendor/production delivery timelines
• Service level to be achieved
• Forecast error, that is, the deviation from the expected requirements

And  on the behalf of spares requirement you can decide it how you schedule of running MRP.

As per my Experience run two days MRP in weekly for better procurement process.

[Former Member]

Thanks Singh,

Yourdetail explanation is very helpful.

According to real situation in our maintenance process, I'm still not sure that MRP can be run well and helpful for both Purchasing, Warehouse as well as Maintenace itself.

Since most of Maintenance Order has been created for corrective maintenance which are using non stock component due to un-predictable problems, means that MRP must be run every day and there are many PR will be generated. Even possible one PR will be generated from one MO.

Regards,

Adi

[Former Member]

Hi Adi,

sure, it's possible to run spare part stocks via MRP run.

As you said, the standard process for spare parts in maintenance repair is, that the consumption is

not planned and on demand.

Nevertheless, you can also have spare parts which are used in preventive maintenance orders.

For this spares you normally get a MRP relevant material reservation and there are customizing settings to be taken into consideration:

In the customizing setting "Define Change Documents, Collective Purchase Requisition, MRP relevance" you define the "reservation relevance" - this means at which event a a material reservation is relevant:

a) immediately (order system status CREA)

b) at release (order system status REL)

c) never

And this settings might have an effect on your MRP.

Hope I could help you, Adi.

Regards,

Patrick

[Former Member]

Thanks Patrick,

Another problem is all of material which managed by warehouse are MRP handled.

Some of them are spare part with zero stock.

It will problem to purchasing when there are much MO created with zero stock components

[Former Member]

Hi Adi,

I don't think it's a problem for purchasing. Depending on the material master settings for minimum and safety stock levels, the MRP run will generate automatically purchase requisitions if there are material reservations (coming from maintenance orders), which are not covered by the current stock level.

Regards,

Patrick