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4. Job & PO Creation


+ Transcript

Jobs and POs are created in the MRP screen, located here on the MRP menu. Jobs and POs are generated as needed to fulfill actual and forecasted sales demand, all within a master schedule where all supply dates are coordinated with dependent demand dates.

MRP is run on a daily basis so that new demand gets responded to in a just-in-time manner without introducing any delays into the master schedule. As you shall see, MRP runs very quickly.

On the opening screen, click the Generate button. MRP first generated planned jobs directly from sales order lines for any one-off, custom items. Click the OK button here at left to pre-fill the OK checkbox column. All planned jobs must be selected because partial conversions are not allowed so that complete demand profiles are generated for subsequent levels. Click the Convert button to convert the planned job into an actual job.

MRP then generates any planned jobs needed for standard cell items that are not subject to customization. Click the OK button to pre-fill the OK checkbox column. Click the Convert button.

MRP then generates planned jobs for subassemblies, level by level as needed, for subassembly items. Click the OK button to pre-fill the OK checkbox column. Click the Convert button.

Here MRP is generating another set of subassembly jobs for a lower level in our product structures. Click the OK button to pre-fill the OK checkbox column. Click the Convert button.

Each MRP session ends with planned PO generation. There are two objectives with this screen. First, you can change the Supplier, if you wish to deviate from an item's default supplier. More importantly, each item must have a realistic purchase price because the PO price establishes the cost that updates inventory at time of PO receipt, which flows through to job issues and cost of goods sold.

Therefore, make sure each item has a Supplier Price in this column. If you need to add or edit a supplier price, click this down arrow against the Supplier to launch this screen, where you can make your changes.

After all suppliers and prices have been reviewed and updated, click the OK button to pre-fill the OK checkbox column. Click the Convert button to convert the planned POs into actual POs.

In summary, the key objectives of MRP generation are to generate jobs and POs on a daily basis, to select all jobs for conversion at each level, and to make sure that all POs have a realistic Supplier Price.

From a manufacturing efficiency standpoint, the primary purpose of MRP is to generate a coordinated master schedule that enables you to meet sales order required dates. See the efficiency video following this demo for a conceptual overview of this essential process.