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WHAT IS THE NEED TO CREAT PLANNED ORDERS MANUALLY?

Hi Gurus,

Can any body tell in which scenario Business will create manual Planned Orders, i have doubt about this functionality. because By using MRP we can cover all types of requirements. then what is the need of manual creation of planned orders.?

Thanks&Regards,

Mahesh.

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  • Best Answer
    Posted on Sep 05, 2013 at 03:45 PM

    Planners is why you need manually created orders. No planner will be 100% satisfied with what the system proposes. No how, no way. They will always have a reason to create new orders.

    - They may want to combine orders.

    - They may have knowledge of demand that the system doesn't. (I know the demand should go into the forecast but in real life that doesn't always happen).

    - Production may have had an upset and they know they have a probable failure that maybe hasn't been fully processed yet in SAP, (i.e. still in quality inspection but expected to fail the testing), and they want to put in a replacement order ASAP into the plan.

    - Their number one customer calls and says they are running out of material A and need replacement material tomorrow.

    - You need to change gears and switch to making a product that maybe you hadn't planned to make in the current period for any of the following reasons:

    a) A JIT raw material doesn't show up just in time.

    b) Raw material you expect to use got damaged, the warehouse roof leaked last night and soaked 5 pallets of bagged powdered material and now it's unusable.

    c) A key piece of production equipment like a rotary dryer or reactor goes down unexpectedly, (probably because you failed to implement the PM module and do planned maintenance)

    - Planners simply aren't ready to trust the system.

    Of course how stable your business is can affect how often the above happens. In the chemical industry all of the above issues happen, usually on a semi-regular basis.

    FF

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    • Hi.

      Totally agree!

      The MRP run just give a proposal, its planners work to modify, delete or create new orders in order to accomplish company requirements. Bear in mind that MRP don consider constrains like Capacity or Stock Availability so the MRP is just a 1st attempt of a plan.

      + Some companies have optimization process that create better plans but still its work of the planer to review edit the plan.

      + Some other companies trust 100% in the MRP result and just ejecute... there is no rule, always "it depends on"

      Arturo.

  • author's profile photo Former Member
    Former Member
    Posted on Sep 05, 2013 at 04:43 PM

    Hi Mahesh,

    Simply put, Manual PRs and Manual Planned orders will help the Planners to manage the (short term)Demand-Supply situations better.

    Kindly recall the need for the Manual Purchase Requisions, despite the fact that MRP generates, Automatically changes and/or suggests changes to PRs.

    We can relate simlar business process requirements for the Manual Planned orders as well.

    Taking this further, why would we even need manual POs and Production/Process Orders, when the Purchase Requisitions and/or Planned orders can be converted into Purchase Orders or Production/Process Orders automatically?

    The reason is that the Buyers or Planners would apply their experience and intelligence to include changes as appropriate, at these important junctures, before letting the system to take it forward.

    Regards,

    Senthil

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