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Oracle MRP User's Guide
Release 12.1
Part Number E15188-05
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Project MRP

Overview of Project MRP

Project MRP is one of a series of features in Oracle Applications designed to support companies that manufacture products for projects or contracts. Known as Project Manufacturing, it is a solution that combines Oracle Projects with Oracle's manufacturing applications to provide robust project tracking, billing and budgeting, along with support for hybrid manufacturing methodologies.

Project MRP allows you to plan in a project or contract environment by segmenting all sources of supply and demand by project. This allows the planning process to identify components as shared or project specific, track existing inventories by project, and provide visibility to all supply and demand associated with a project.

Project MRP is completely integrated with Oracle Projects, to offer a comprehensive project manufacturing solution, but it can also work in isolation to support Seiban manufacturing methods.

With Project MRP, you can:

See also:

Establishing a Project MRP Environment

Project MRP is part of the overall solution offered by Project Manufacturing. If you want you employ all the features offered by Project Manufacturing, you must define project parameters in Oracle Projects, Oracle Inventory, and Oracle MRP.

If you are working in a Seiban manufacturing environment, you do not need to include Oracle Projects in your setup tasks.

Overview of Project MRP Setup Tasks

The setup tasks in Oracle Projects are:

Setting Up Project MRP in Oracle Projects

These setup steps are not necessary if you are using Seiban numbers only.

To define a project

  1. Navigate to the Projects, Templates Summary window.

  2. To complete this task, refer to Creating a New Project from a Project Template or an Existing Project, Oracle Projects User's Guide.

    See also:

Setting Up Project MRP in Oracle Inventory

To define project information in organization parameters

  1. Navigate to the Project Manufacturing Parameters window.

  2. Choose the General tabbed region.

  3. Check Enable Project Reference.

  4. Select a project control level (the project control level determines the level at which the organization is allowed to control its project activity):

    Project: You will be able to associate demand and supply records with project references, as well as plan at the project level. Task references will be disabled in all windows.

    Task: You will be able to associate demand and supply records with project and task references, as well as plan at the project level.

    See: Defining Default Inventory Parameters, Oracle Inventory User's Guide for defining additional organization parameters.

To define project information in subinventories

  1. Navigate to the Master Item window.

  2. Enter a unique alphanumeric name.

  3. Select the Item Subinventories window from the Tools menu.

  4. In the Planning tabbed region, place your cursor in the Locator field to display the Stock Locators parameter window.

  5. Enter a project/Seiban number and, if appropriate, a task reference. See: Defining Stock Locators, Oracle Inventory User's Guide.

  6. Save your work.

To define project information in item attributes

  1. Navigate to the Master Item window.

  2. Choose the MPS/MRP Planning tabbed region.

  3. Select a pegging level:

    See also:

Setting Up Project MRP in MRP

Defining Planning Group Lookups

Planning groups allow you to establish a relationship between two or more projects or Seibans by associating them with a single planning group. Projects and Seibans within the planning group can share supply, depending upon the reservation level set in the plan level options.

To define planning group lookups

  1. Navigate to the Planning Group Lookups window.

  2. Place the cursor in the Code field, choose New from the File menu.

  3. Enter a unique alphanumeric code.

  4. Enter a meaning and description.

  5. Enter a start date, and optionally and end date to restrict the effectivity of the Lookup.

  6. Check Enabled to activate the Lookup

  7. Save your work.

    See also:

Reviewing or Adding Project MRP Plan Options Prerequisite

After establishing a project MRP environment, you must define an DRP, MPS, or MRP name. See: Defining MRP Names

To review or add Project MRP plan options

  1. Navigate to the Plan Options window.

  2. Query a plan name.

  3. Check Pegging. This will optionally allow you to set a Reservation Level and a Hard Pegging Level when in a projects environment. (It will also allow you to generate a graphical pegging display, if the pegging attribute for your item is not set to None)

  4. In the Pegging region, set a Reservation Level and (optionally) a Hard Pegging Level.

    Reservation Level: Determine how the planning process will pre–allocate project/Seiban supply to project/Seiban demand. This will control only those items whose item attributes have been set to Soft Pegging, End Assembly/Soft Pegging, Hard Pegging, or End Assembly/Hard Pegging.

    Planning Group: Reserve project–specific supply and demand at the planning group level. Supply for one project can be reserved against demand from another project, if both projects belong to the same planning group. Excess common supply can be allocated to project demand for hard and soft pegged items.

    if reservation level is project supply from due project, it cannot be given a demand from another project. Only soft pegged items excess project supply can be allocated to other projects.

    Task: Reserve supply for a project–task against demand for the same project–task only.

    None: The planning process does not operate in a project manufacturing environment.

    Hard Pegging Level: For hard pegged items, determine if project references will be added to planned orders. This will control only those items whose item attributes have been set to Hard Pegging or End Assembly/Hard Pegging. Suggested planned orders for such items will be assigned at one of the following levels.

    Project: Attach the project number to which the planned order is hard pegged.

    Project-task: Attach the project and task number to which the planned order is hard pegged.

    None: Do not add project/task references to planned orders.

    See: Reviewing or Adding Plan Options for additional plan options.

  5. Save your work.

    See also:

Launching a Project MRP Plan

Prerequisites

Before launching, insure that project demand is loaded into your MDS via forecast consumption entries and sales orders, or choose MRP/DRP/MPS plans with firm planned orders.

After establishing a project MRP environment and adding your Project MRP plan options, perform the following tasks before setting plan level options:

Enter forecast entries with project/Seiban numbers and task references, or load/copy/merge a forecast with project/Seiban numbers and task references. See: Defining a Forecast, or Copying/Merging Forecasts

Enter schedule entries with project/Seiban numbers and task references, or load/copy/merge a schedule with project/Seiban numbers and task references. See: Defining Schedule Entries Manually, or Loading a Master Schedule from an Internal Source.

Setting Up Project MRP in Oracle Project Manufacturing

Setting up Project MRP in Oracle Project Manufacturing involves the following steps:

Project MRP Planning Logic

Project MRP planning logic differs from the regular MRP planning logic primarily in the way it determines what supply is available to satisfy demand. It also differs in the way it assigns any suggested planned orders that result from the planning process.

Instead of simply considering existing inventories and scheduled receipts when netting supply against demand, the project MRP planning logic goes through a process of pre–allocation: Before netting supply against demand, the planning process analyses the project/Seiban numbers (along with the item attributes, project parameters, and plan level options you have set), to determine what supply is available for meeting project/Seiban demand. Supply and demand that is not specific to any project/Seiban is defined as common supply. The project MRP planning logic treats common supply or demand as a “null” project/Seiban.

In order for Project MRP planning logic to work, you must set the pegging item attribute on the items to one of the following values: soft pegging, end assembly/soft pegging, hard pegging, or end assembly/hard pegging.

The following table compares the logic in regular MRP and project MRP:

Planning logic in regular MRP compared to project MRP
Regular MRP Project MRP
Explode bill of materials Explode bill of materials
Snapshot of inventory, supply, and demand Snapshot of inventory, supply, and demand
-- Pre-allocate supply to projects and seibans
Net supply against demand Net supply against demand and assign planned orders to projects and seibans

Project Netting Example for Hard Pegging

In the following diagram, the item is an MRP–planned component used in two projects and in the common supply.

During the pre–allocation phase of netting, the planning engine divides the supply for the item by project. In Period 1, the demand from project 2 (P2) is 100. Since there is an onhand quantity of 25 for P2 and no scheduled receipts, there is still demand for P2 of 75. The planning engine cannot apply excess from any other source to meet this demand, the planning engine looks for the available supply for P2 and finds it in Period 2. This supply is rescheduled in to Period 1. This scheduled receipt is also used to satisfy the P2 demand of 500 in Period 2.

Once again, the planning engine can only apply the excess P2 supply to P2 demand. The last P2 demand is in Period 3 (for 300), consuming the excess of 25 from Period 2 and leaving a net requirement of 275, which the planning engine converts into planned orders.

Because the item is hard pegged, and the hard pegging level (from the plan options) is set to project, the P2 project reference is added to the suggested planned order.

In this diagram:

Entity Period 1 Period 2 Period 3
Demand 200 (P1)
100 (P2)
400 (common)
150 (P1)
500 (P2)
300 (P2)
Scheduled receipts 265 (P1) 600 (P2) 600 (common)
Planned orders -- 75 (P1) 275 (P2)
Projected available 75 (P1)
-75 (P2)
-395 (common)
0 (P1)
25 (P2)
395 (common)
0 (P1)
0 (P2)
205 (common)

Project Netting Example for Soft Pegging

In the following diagram, the item is an MRP–planned component used in two projects and in the common supply.

During the pre–allocation phase of netting, the planning engine divides the supply for the item by project (common is treated as project). Period 1 has a common demand of 400. The net demand after applying the common onhand is 395 in Period 1. The scheduled receipts in Period 3 are allocated to this demand. There is no more common demand to be met.

Project P1 has an excess of 75 in Period 1 (scheduled receipts plus the onhand quantity, minus P1 demand). This is used to partially satisfy the P1 demand of 150 in Period 2. This leaves an unmet demand of 75 in period 2 for project P1. There is no supply available. Unlike the hard pegging example, the planning process can use other excess supply in this period to meet this remaining demand. Therefore, the excess supply of common in Period 3 is allocated to this demand.

Item 7004 is a soft pegged item, it can use excess supply available in common or other projects to meet this demand. It allocates the excess supply from 600 common to this demand.

For project P2 the demand in period 1 is 100. Since there is an onhand quantity of 25 for P2 and no scheduled receipts in this period, there is still a demand of 75 for P2. To meet this demand, the planning engine looks for more P2 supply, which it finds in period 2. This supply of 600 is allocated to the demand of P2 in period 1. This supply also takes care of the demand for 500 for project P2 in period 2. The available 25 in project P2 at the end of period 2 are pegged to the P2 demand of 300 in period 3. This leaves a demand of 275 for project P2 in period 3. As there is no P2 supply, and the item is a soft pegged item, it uses the excess 130 in common supply. There is still a shortage of 145. The planning engine then creates a planned order for 145. Since item 7004 is soft pegged, this planned order will not carry any project references.

Note: Project references on scheduled receipts of soft pegged items must be entered manually.

See also Project References, Oracle Project Manufacturing User's Guide.

In this diagram:

Entity Period 1 Period 2 Period 3
Demand 200 (P1)
100 (P2)
400 (common)
150 (P1)
500 (P2)
300 (P2)
Scheduled receipts 265 (P1) 600 (P2) 600 (common)
Planned orders -- 75 (P1) 145
Projected available 75 (P1)
-75 (P2)
-395 (common)
-75 (P1)
25 (P2)
395 (common)
0 (P1)
0 (P2)
0 (common)

Netting Behavior

By combining the item pegging attribute with the plan options reservation and hard pegging levels, you can exercise a high degree of control over how the planning process pre–allocates supply for an item. The table below summarizes the possible combinations and types of behavior you can enforce:

Project MRP Netting Behavior
Reservation Level Hard Pegging Level Item Pegging Attribute Netting Behavior
Planning Group Project Hard Pegging Reserve supply at planning group level, excess common supply used for project demand, and create planned orders at project level
Planning Group Project-Task Hard Pegging Reserve supply at planning group level, excess common supply used for project demand, and create planned orders at project-task level
Planning Group None Hard Pegging Reserve supply at planning group level, excess common supply used for project demand, and create planned orders without project references
Project Project Hard Pegging Reserve supply at project-task level, create planned orders at project level
Project Project-Task Hard Pegging Reserve supply at project-task level, create planned orders at project-task level
Project None Hard Pegging Reserve supply at project-task level, create planned orders without project references
Project-Task Project Hard Pegging Reserve supply at project-task level, create planned orders at project level
Project-Task Project-Task Hard Pegging Reserve supply at project-task level, create planned orders at project level
Project-Task None Hard Pegging Reserve supply at project-task level, create planned orders without project references
Planning Group
Project
Project-Task
<any value> Soft Pegging Reserve supply at project level, create planned orders without project references
None   Hard Pegging No reservations, full pegging

Excess Supply

Effects of the pegging item attribute on the netting of excess supply
Item Attribute Allocation of Excess Supply
Hard Pegging or End Assembly/Hard Pegging Planning logic ignores excess in common supplies and project- and seiban-specific supplies during the netting routine
Soft Pegging or End Assembly/Soft Pegging Planning logic considers excess in common supplies and project- and seiban-specific supplies during the netting routine