Sage PFW MRP Manual
Sage PFW MRP Manual
Sage PFW MRP Manual
User Guide
Information in this document is furnished only under a Customer License Agreement or
non-disclosure agreement, and may be used or copied only in accordance with the terms
of such agreement. The software described in this document is protected by copyright,
and may not be copied on any medium except as specifically authorized in the license or
non-disclosure agreement.
This document is also protected by copyright, and may not be reproduced or transmitted,
in whole or in part, by any means, including photocopying, facsimile transmission, or
reduction to any electronic medium or machine-readable form, without the express
written consent of Sage Software Inc.
The Sage Software logo and the Sage Software product and service names mentioned
herein are registered trademarks or trademarks of Sage Software, Inc. or its affiliated
entities. Adobe and Adobe Reader are registered trademarks of Adobe Systems,
Incorporate. Pervasive, Pervasive.SQL, Scalable SQL, and the Pervasive Software logo are
trademarks or registered trademarks of Pervasive Software. Microsoft, the Microsoft logo,
MS, MS-DOS, Microsoft Excel, FRx, Windows, and Windows NT are trademarks of
Microsoft Corporation. Crystal Reports is a registered trademark and technology of
Business Objects, SA. HMIS® is a registered trade and service mark of the NPCA. Other
product names are trademarks or registered trademarks of their respective owners.
2 Sage PFW
Contents
Preface
Related Documentation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Introduction
Material Requirements Planning (MRP) is one of the many process manufacturing
applications available in the Sage PFW ERP product. The MRP application provides
precise planning capabilities, customizable material management, and data security.
These features are designed to accommodate the planning needs of your business, and
work in seamless conjunction with the other Sage PFW financial applications.
Prerequisite knowledge
This user guide is based on the assumption that you have some accounting knowledge. It
does not attempt to teach accounting.
It is also assumed that you have some working knowledge of personal computers
operating in a network environment and a familiarity with Windows.
If you are new to the Sage PFW suite of products, you should familiarize yourself with the
operating procedures described in the System Basics User Guide.
Related Documentation
The following provide additional information on using Sage PFW.
2 Sage PFW
Chapter 1:
Chapter 1: Introducing
Introducing MRP
MRP
Introduction
This chapter provides an overview of how the Material Requirements Planning (MRP)
application automates the process of purchasing and manufacturing materials to satisfy
product demand. It includes the definitions required to understand MRP, and a brief
description of the available features and interfaces.
In this chapter
This section contains the following topics:
Topic Page
Features and System Integration 4
System Integration 4
Glossary
To understand the topics presented in this manual, you should be familiar with the
following terms.
Term Definition
Demand A production batch, customer order, warehouse transfer, or fore-
cast that causes requirements for a material or packaging com-
ponent. Sage PFW supports four methods of calculating
demand: 1) actual demand from open sales and production
orders, 2) greater of actual demand or forecast demand, 3)
actual plus forecast demand, and 4) forecast demand.
Planning Zone One or more days in which a demand calculation method
applies.
Time Fence Time fences are used to divide the demand ranges used by MRP.
MRP supports two time fences. The first usually delineates actual
demand and the second planned or forecast demand.
Time fences may be defined globally in MRP Application Setup,
at the inventory class level using Item Class File Maintenance, or
at the item level with Item Entry.
Planned An order automatically generated by MRP to satisfy demand.
Order
Scheduled An order placed on production or on a vendor that represents a
Receipt commitment to make or buy a material.
Low-Level The lowest level on which a material or packaging component
Code resides in all formulas and bills of material.
Planning Calendars
You can create an unlimited number of Planning Calendars that define the way data is
grouped when displayed or reported. For example, one Planning Calendar may group
data in weekly buckets for the first planning zone, then monthly thereafter. Another
Planning Calendar may group data in daily buckets for all planning zones.
Multiple Forecasts
You can define an unlimited number of forecasts for each item location. Forecasts may be
manually entered, or derived from sales or production history.
System Integration
MRP integrates with the Inventory Pro, Formulas, Order Entry Pro, Purchasing Pro, and
Production applications. In order for MRP to provide accurate information, the data
within these applications must be kept current.
Inventory Pro
MRP uses opening on-hand balances and minimum stock quantities from the Item
Location table. It determines an item’s Order Policy and Order Method from the Item
Master table. It first looks at the Item Master, then the Item Class table to determine an
item’s time fences before defaulting to the MRP application setting.
Formulas
MRP determines low-level codes and component requirements based on product
formulas.
Purchasing Pro
MRP determines receipts based on incoming purchase orders. It automatically creates
purchase orders based on planned MRP orders.
4 Sage PFW
System Integration
Production
Chapter 1: Introducing
MRP determines requirements and receipts based on open and scheduled production
orders. It automatically creates production schedule records based planned MRP orders.
MRP
6 Sage PFW
Chapter 2:
Setting Up Material Requirements Planning
Introduction
Before you begin to use the Material Requirements Planning application, there are several
Material Requirements
Chapter 2: Setting Up
general setup tasks you must do to prepare the MRP system to function effectively for
you.
Each of the setup procedures is presented in the recommended order. The order in which
the files are set up is important from both a processing and time-saving standpoint.
Online Help
As you proceed through the setup, remember to make liberal use of the online Help for an
overview of the option and most importantly before you enter data in each field.
In this chapter
This chapter contains the following sections:
Topic Page
Setting Up Planning Calendars 8
Completing the Application Setup Window 10
Introduction
Use the Planning Calendar window to define the planning calendars you want available
for forecasting and MRP reporting.
In this section
This section covers the following topics:
Topic Page
Planning Calendar Window 8
Description of Planning Calendar Options 9
How to Complete the Planning Calendar Window 9
8 Sage PFW
Description of Planning Calendar Options
Origin Date
The system uses the Origin Date as the starting date for forecast entry. All forecast entry
planning period dates are based on this date.
Material Requirements
The system uses the Days Per Period to define the number of days in each user defined
Chapter 2: Setting Up
period for each of the 3 demand ranges. Note that you only need to define the first
demand range if all of your periods contain the same number of days.
Procedure
To complete the Planning Calendar window, do the following:
Step Action
3 Select Save.
Introduction
Completion of the Application Setup menu item is required to define MRP planning
information
In this section
This section contains the following topics:
Topic Page
Application Setup Window 10
How to Complete the Application Setup Window 11
10 Sage PFW
How to Complete the Application Setup Window
Procedure
To complete the Application Setup window, do the following:
Step Action
Material Requirements
Chapter 2: Setting Up
3 Select Save.
Need more information? Press F1.
Field Descriptions
Demand Fence 1 and 2
Demand Fence 1and 2 marks the limit of the Demand Ranges. Using the Gross Demand
Calculation for Demand Ranges, the system determines gross requirements for this
period. Gross requirements include actual demand and can include forecasts if specified
in the Gross Demand Calculation. Demand is made up of new and committed production
orders, production schedules, and open sales orders. Forecasts are made up of the
forecasts you enter in Forecast Entry.
Demand Fences can also be entered in Inventory Pro - Item Entry (MRP/Stocking Info tab)
or in Item Class. The system looks first in Item Entry then in Item Class and finally in MRP
Application Setup for these values. Entry of demand fences is optional in the first two but
required in MRP Application Setup.
For example, ranges always begin with the current date. So if today's date is April 1 the
range covers April 1 through April 30.
Remember, the periods specified in the Planning Calendar are not related to the Demand
Fences that you have just created.
• Demand is calculated as the actual demand, based on new and committed production
orders, production schedules, expected receipt of open purchase orders, and open
sales orders.
• Greater of Demand/Forecast - Demand is calculated as the greater of actual demand
(as described above) or forecast demand.
• Actual Plus Forecast Demand - Demand is calculated as the sum of actual demand
and forecast demand.
12 Sage PFW
Chapter 3:
Entering Forecasts
Introduction
This chapter provides procedures for entering forecasts. The discussion explains:
In this chapter
This chapter contains the following sections:
Chapter 3: Entering
Topic Page
Forecasts 14
Forecasts
Forecast Window 14
How to Maintain Forecasts 14
How to Insert a New Forecast 15
How to Modify Existing Forecasts 16
Forecasting Options
Forecasts
Forecasts are estimates of conditions that will exist over a future period for finished goods
and in-house intermediate items. They may be manually entered, or based on historical
sales and/or manufacturing information.
You may enter multiple forecasts for each item. For example, you may enter each of your
salesperson’s sales forecast independently. The system will automatically summarize all
forecasts for a given planning period.
Forecasts are not required by the MRP system. However, you should enter forecasts if you
don’t want to wait until actual orders are received to plan what you will need to produce.
Purpose
The purpose of a forecast is to estimate the sales or manufacturing demand for a product
(finished goods or in-house intermediates) for the purpose of future resource planning.
You may configure the MRP generation process to consider forecasts exclusively, or in
addition to actual sales and production demand.
Forecast Window
When Forecast Entry is selected from the business desktop, the Forecast Entry window
appears.
14 Sage PFW
How to Insert a New Forecast
Procedure
To maintain an item’s forecast, do the following:
Step Action
4 Select Save.
Chapter 3: Entering
Forecasts
You can enter new forecasts based on quantity, production history, or sales history.
Procedure
To insert a new forecast, you select the Insert Row toolbar button, or select Insert Row
from the Edit menu. A window similar to the following appears:
Forecasting by Quantity
You can automatically fill all forecast cells with a specified quantity. Click on the Quantity
button, enter the forecast quantity, then click OK.
Manual Editing
You can manually edit each forecast cell. Simply navigate to the cell and enter the new
value.
Zeroing a Forecast
You can zero a whole forecast, or a selected range of forecast cells. To zero a forecast, place
the cursor on any cell within the forecast row, then select Zero Forecast from the Edit
menu, or press <Ctrl>+A.
To zero a range of forecast cells, select the desired range of cells which may include more
than one forecast, then select Zero Selected from the Edit menu, or press <Ctrl>+Z.
Filling a Forecast
You can automatically update a forecast or a selected range of forecast cells. To fill a
forecast, select Fill Forecast from the Edit menu, or press <Ctrl>+L. To fill a range of
forecast cells, select Fill Selected from the Edit menu, or press <Ctrl>+T. Note that the Fill
Selected option is only available after you have selected one or more forecast cells. A
window similar to the following appears:
Copying a Forecast
You may copy a forecast to a new or existing forecast. If you copy to an existing forecast,
all forecast cells will be overwritten with the selected forecast.
16 Sage PFW
How to Modify Existing Forecasts
Step Action
Chapter 3: Entering
Forecasts
18 Sage PFW
Chapter 4:
MRP Utilities
Introduction
This chapter provides instructions for using each of these utilities:
In this chapter
This chapter covers the following topics:
Topic Page
Generating the Material Requirements Plan 20
Releasing Planned Orders 22
Introduction
The Material Requirements Plan is the core component of the Material Requirements
Planning application. It identifies all open inventory requirements and receipts, all
dependent demand derived from inventory requirements, and all scheduled and planned
order exceptions. In addition, it contains all MRP generated orders required to be released
to satisfy future demand.
Note: Both Transfer In and Transfer Out (R and N) type transactions are included
in this process.
You must generate the Material Requirements Plan before you can generate any MRP
reports or release MRP planned orders. Although you should not have to run the
Generate Material Requirements Plan more than once a day, you should run it any day on
which you will generate MRP reports.
• The formulas and intermediates associated with your finished goods change. Suffi-
cient quantities are ordered to fulfill minimum stock quantities.
If you uncheck this field, MRP schedules new receipts for the items per the example
above, to arrive on time to fill the requirements. In this case, MRP displays the message
"Cancel" for the future-dated receipts, and if you fail to cancel those receipts, you may end
up with excess quantities on hand.
20 Sage PFW
Generate Material Requirements Plan Window
The Generate Material Requirements Plan window appears as follows:
Procedure
Take the following steps to generate your Material Requirements Plan:
Introduction
Use the Release Planned Orders to authorize the purchase or production of items based
on MRP planned orders. When an MRP planned order is released, it automatically
becomes a scheduled receipt.
In this section
This section covers the following topics:
Topic Page
How to Release Planned Orders 22
About Releasing Manufactured Items 24
About Releasing Purchased Items 24
Preview run
You can do a trial run of this utility to preview the production schedule records and
purchase orders before you actually release the orders. During the preview run the
system searches the database to locate records that correspond to the selection criteria. If
the records on the trial listing are not what you expect, revise the selection parameters
until you get the desired results.
When you are satisfied with the information on the trial listing, run the utility with the
Release Orders check box marked. This will convert the MRP Planned Orders into
production schedule and purchase order records.
22 Sage PFW
How to Release Planned Orders
Procedure
Use the following procedure to release MRP planned orders:
To view a sample Release Planned Order report, click the following link.
• The Vendor and Unit Price from the Purchase Order Contract file.
• The highest ranking vendor in the AP Vendor Item file along with the Last Cost from
the Item Location file.
• The Primary Vendor and Last Cost from the Item Location File.
24 Sage PFW
About Releasing Purchased Items
Thru Date
You can further refine the planned order selection process by specifying the planned
order creation date through which the system will select orders.
For example, if you set this date to Friday of the current week, the system would only
release purchase orders that need to be ordered this week and release production order
that must begin production this week.
In addition, this will cause the system to group items, that fall within this range, together
in the same Purchase Order or Production Batch.
26 Sage PFW
Chapter 5:
Generating Reports
Introduction
This chapter provides information about Material Requirements Planning reports and
includes sample output and suggested uses.
Name Purpose
MRP To report a time-phased picture of inventory
status, including exception messages.
MRP Detail To report the details behind the MRP report,
including orders, receipts, planned orders,
and exception messages.
Exception Messages
The following exception messages may be generated by both MRP reports:
Exception Reason
Cancel Order Identifies a scheduled receipt without a
matching requirement. Since the receipt is not
required, the system recommends that the
order by cancelled.
Past Due Identifies a scheduled receipt whose due
date has past.
Reschedule In Identifies a scheduled receipt whose due
date is after the matching requirement’s
date. The system recommends that the order
be rescheduled earlier.
Reschedule Identifies a scheduled receipt whose due
Chapter 5: Generating
Out date is before the matching requirement’s
date. The system recommends that the order
Reports
be rescheduled to a later date.
Release Order Identifies a planned MRP order that should be
released to purchasing or manufacturing.
Reference
For report generating instructions, refer to the System Basics User Guide.
In this chapter
This chapter covers the following topics:
Topic Page
MRP Report 28
MRP Detail Report 30
MRP Report
The MRP Report shows time-phased inventory planning information. The time periods
shown on the report may be based on a planning calendar or on a specified date followed
by the next eight months. The report includes:
• Gross requirements
• Scheduled receipts
• Net requirements
• Exception messages
28 Sage PFW
MRP Report
The Parameters tab includes several document tabs that allow you to set selection criteria
for including specific items on the report. Use online Help (F1) to locate the description of
each field on the document tabs.
The first column represents transactions prior to the Planning Origin Date. The next eight
columns represent planning periods that are based on the Planning Origin Date month
followed by the next seven months, or the Planning Origin Date month followed by the
next seven periods based on the Planning Calendar.
Suggested use
This report is useful to planners because it provides a standard view of one or more item’s
planning horizon information. It can be used as an action report by checking the
Exceptions Only check box on the Item Type Filter document tab.
Note: The Ship Date is not used for transfer out type transactions
Procedure
Chapter 5: Generating
Use the following procedure to generate the Activity Report:
Reports
Step Action
4 Select Process.
• Exception messages
This report helps you identify the source of MRP exception messages and make better
informed purchasing and manufacturing decisions.
30 Sage PFW
MRP Detail Report
• Select based on ranges you define on the Item Filter document tab
• Select based on values you define on the Activity Filter document tab
Use online help (F1) to locate the description of each field on the document tabs.
Procedure
Use the following procedure to generate the MRP Detail Report:
Step Action
4 Select Process.
Chapter 5: Generating
Reports
32 Sage PFW
Index
D O
P
F
planned orders
forecasting, 14 defined, 3
by quantity, production history, and sales history, release of, 22
15 planning calendar
copying, 16 demand ranges, 9
zeroing and filling, 16 setup, 8
planning zone
definition, 3
G time fence, 3
production
system integration, 5
glossary purchasing
definition of terms, 3 system integration, 4
L R
34 Sage PFW