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MRP Monitor
An Engineering Company
Customer Reference for:SCM Consulting Solutions
© 2018 SAP AG. All rights reserved. 2
General conditions in the company
n 1.2 million materials in totaln 60,000 materials with stockn Many slow-movers that have to be kept in stock (spare parts
business)n Market situation causes highly fluctuating demandn High proportion of manual tasks for analysis and material
master maintenance
© 2018 SAP AG. All rights reserved. 3
Challenges
n Dead stock with potential for reductionn Safety stocks not optimally defined, safety stock values tend to be too high
n No ABC-XYZ indicator in the master record to indicate materials with similarproperties
n Average-quality master data with potential for optimizationn No consistent, uniform strategy for the maintenance of MRP parameters
n No standardized analysis software used, only self-written reportsn No ABC-XYZ analysis availablen Cross-plant analyses only possible with very high degree of manual workn No key figures that are informative, quickly available and easy to determine
Stocks andranges ofcoverage
Master dataquality
Analysissupport
© 2018 SAP AG. All rights reserved. 4
The solution: MRP monitor
The MRP monitor uses all relevant material movements from the past to determine the ABC-XYZclassification of each material and calculates important key figures such as dead stock, ranges ofcoverage, and inventory turnover.
The MRP monitor provides integrated support for material master maintenance throughclassification-based monitoring and parameterization of all materials across their entire life cycle.
The MRP monitor helped overcome the challenges with the following functions:n Execution of fast analyses with low effortn Calculation of dead stock on the basis of customer-specific inventory calculationn Determination of key figures such as range of coverage and inventory turnovern Identification and classification of material ranges with potential for stock reductionn Fully integrated ABC/XYZ analysis with direct updating in the material mastern Uniform database with key figures and consumption and stock values
Analysis of past time series, classification of material ranges, and determination of MRP- anddecision-relevant KPIs
© 2018 SAP AG. All rights reserved. 5
Customer benefit and value
Direct benefits:
Process improvements:
n Reduction of dead stock by 22%n Stock reduction in plant A by €2.0 millionn Stock reduction in plant B by €1.3 millionn Higher service level
n Analyses and classifications can be carried out quicklyn Key figures available on demandn Far less work for manual analysesn Automatic setting of the ABC-XYZ indicatorn Identification of changed properties/classification of materials
© 2018 SAP AG. All rights reserved. 6
Key figure development
Start of solution use May 2009Dead stock -22%
Stock value plant A - € 2 millionStock value plant B - € 1.3 millionService level higher
Thank you!Marc HoppeConsulting ManagerSupply Chain ManagementTesdorpfstraße 820148 Hamburg, GermanyM.: +49 160 9082 1606E: [email protected]
© 2011 SAP AG. All rights reserved. 8
SCM Consulting Solutions
SCM Consulting Solutions with ERP1.1 ERP01: MRP monitor(1333018)1.2 ERP02: Simulation of safety stocks (1363890)1.3 ERP03: Simulation of lotsizes (1363889)1.4 ERP04: Forecasting monitor (1341755)1.5 ERP05: Servicelevel monitor (1341710)1.6 ERP06: Replenishmentleadtime monitor (1341571)1.7 ERP07: Backlog monitor (1341712)
1.8 ERP08: MRP Error monitor (1341705)1.9 ERP09: Inventory controlling cockpit (1363888)
SCM Consulting Solutions with APO2.1 APO01: Changelogmonitor (1308968 )2.2 APO02: Lifecylceassistent (1319579)2.3 APO03: Forecastingleveloptimierer (1366618)2.4 APO04: Mising Parts Infosystem (1366621) 2.52.5 APO05: eSOA Masterdatacockpit2.6 APO06: Masterdatacheckmonitor (1366619)
SCM Consulting Services3.1 OPT01: Forecasting optimization (1292209)3.2 OPT02: MRP optimization (1315243)3.3 OPT03: Backlog reduction (1363923)3.4 OPT04: Distribution optimization
More Infos can be found:
www.sap.de/inventoryoptimization
https://wiki.sdn.sap.com/wiki/display/SCMCS/Home
2-nd Edition, Nov. 2007
© 2011 SAP AG. All rights reserved. 9
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