Demystifying the MRP 3 View in SAP PP

In the complex world of SAP Production Planning (PP), the Material Master defines how materials are managed. But a single Material Master isn’t enough—it’s divided into different views, each catering to specific aspects of material control. Today, we’ll delve into the MRP 3 View, a crucial component of demand management and production planning.

What is the MRP 3 View?

The MRP 3 View, also known as the Planning view, focuses on how a material’s demand is planned and fulfilled. It contains critical fields determining how the Material Requirements Planning (MRP) system generates purchase requisitions or production orders to meet future needs.

Key Features of the MRP 3 View:

• Planning Strategy: This field defines the fundamental approach to fulfilling demand. Standard options include Make-to-Stock (MTS), Make-to-Order (MTO), and Assemble-to-Order (ATO). The strategy group assigned here influences how MRP calculates planned orders.
• Period Indicator: This specifies the time bucket used for planning—daily, weekly, monthly, or yearly. It depends on the material’s lead time and demand fluctuations.
• Consumption Mode: This setting dictates how the system consumes planned independent requirements (PIRs) or forecasts. Options include single-level or multi-level, impacting how dependent requirements for components are generated.
• Availability Check: This determines how the system checks for sufficient stock before creating a planned order. It can consider existing stock, purchase orders, or planned production orders.
• Lead Time Information: MRP 3 View captures various lead times, including procurement lead time (for purchasing) and production lead time (for in-house manufacturing). These are crucial for accurate planning.

Benefits of a Well-Maintained MRP 3 View:

• Improved Demand Forecasting: Accurate MRP 3 View settings ensure realistic forecasts, leading to efficient production planning and reduced stockouts or overstocking.
• Optimized Production Scheduling: MRP generates planned orders considering lead times and material availability, resulting in smoother production flows.
• Reduced Inventory Costs: Ensuring the suitable materials are available at the right time can minimize unnecessary inventory holding costs.

Conclusion:

The MRP 3 View ensures a well-functioning production planning system in SAP PP. Understanding its key features and maintaining accurate settings can streamline your production processes, optimize inventory levels, and ultimately enhance your company’s overall efficiency.