Understanding the MRP vs. MPS Dance in SAP PP

In SAP Production Planning (PP), a well-coordinated dance between Material Requirements Planning (MRP) and Master Production Scheduling (MPS) is essential for smooth manufacturing operations. But what differentiates these two planning functions? Let’s break it down for a clearer understanding.

The Demand Factor: Independent vs. Dependent

The core difference lies in how they handle demand. MPS deals with independent demand, focusing on finished products with direct customer orders or forecasts. Imagine bicycles – the demand for bicycles isn’t dependent on other products; customers directly order them.

On the other hand, MRP tackles dependent demand. It plans for the components and raw materials needed to produce finished products based on the MPS output. Think of bicycle parts—their demand depends on the planned production of bicycles in the MPS.

Planning Horizons and Execution

MPS operates on a broader timescale, typically weeks or months out. It sets the overall production direction based on market forecasts and sales plans. Imagine a high-level roadmap for bicycle production in the coming months.

MRP comes into play after the MPS is set. It works more granularly, considering lead times, inventory levels, and bills of materials (BOMs) to calculate the exact material requirements for each production period. Consider the detailed plan for ordering bicycle components, nuts, bolts, and wheels to meet the MPS targets. The MRP run can be triggered daily or weekly to ensure enough materials are available for production.

The SAP PP Connection

In SAP PP, the MPS forms the foundation. You define what end products must be produced and when in the MPS. This data is then fed into the MRP module. MRP takes the MPS output, explodes the BOMs for each product, and calculates the dependent material requirements.

The Takeaway: A Well-Rehearsed Routine

Think of MPS as the lead singer setting the overall production song. MRP acts as the backing band, ensuring all the necessary components are available to deliver the finished product on time. Together, they orchestrate a smooth production flow in SAP PP.

Bonus Tip: MRP and MPS are distinct but not isolated. Changes in the MPS may necessitate adjustments in the MRP plan and vice versa. Effective communication and data exchange between the two functions is crucial for optimal production planning.