Production BOMs can contain finished products (products with their own production BOM) or assembled components (products with their own Assembly BOM). Materials Requirements Planning (MRP) can be performed with or without BOM explosion. In this article we will explain the recommended workflow for MRP for production. 

NOTE: Production BOMs and Production Orders are an advanced manufacturing feature. You will need to add the advanced manufacturing module to your DEAR base subscription to use this feature. See Getting Started with the Advanced Manufacturing module for more information. 

Prerequisites

• Set General Settings → Minimum Before Reorder to Each location to use MRP module. 
• Set up Products
  • Configure product suppliers
• Set up Locations
  • Set up Low stock reorder levels
  • Set supply rules
  • Set transfer planning intervals
• Get familiar with Materials Requirements Planning (MRP) (required)
• Get familiar with Get Started with the Advanced Manufacturing Module(required)
  • Nested Production Orders (Production BOM explosions) (recommended)
  • Advanced Manufacturing module subscription required. 
• Permissions:
  • Users will need the Run - MRPpermission to perform MRP runs and change MRP run settings. 

Table of Contents

• MRP Supply Setting: BOM explosion
  • MRP run without BOM explosion
  • MRP run with BOM explosion
• Recommended workflow to plan Production Orders
• Example Calculations

MRP Supply Setting: BOM explosion

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A bill of materials (BOM) explosion displays the highest level of a production or assembly broken down into components at its lowest level. If the parent production or assembly contains components that also have a production or assembly BOM, the nested BOMs are also broken down into components. 

If BOM explosion is not checked, DEAR will not execute any decomposition or a production BOM or assembly BOM. Suggested supply orders will suggest production orders to meet demand, but no suggested supply orders will be created to meet demand for components and nested products. 

NOTE: BOMs with auto-assembly/disassembly will generate suggested supply orders for the BOM components delivered to the assembly location. Suggested supply orders will not generate assembly order suggestions for products with auto-assemble/disassemble enabled. 

If BOM explosion is checked, DEAR will decompose a production BOM or assembly BOM to calculate the demand for nested products and components. 

Recommended workflow to plan Production Orders

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We recommend conducting MRP planning for manufacturing as a two step process in order to properly schedule orders around available production resource capacity. 

In Step One, the user creates a master production schedule by running MRP without BOM explosion. Net, the user runs MRP with BOM explosion to meet demand for the production components. 

Step One: Create Master Production Schedule

1. Open MRP by going to Inventory → MRP.
2. Make sure that MRP Supply Settings: BOM explosion is NOT checked. Select any other MRP parameters required for the run, and click Run to begin.
3. Suggested supply orders will generate production order suggestions. This pure production demand, without demand for components and nested orders. 
4. Create these orders in Planned status. 
5. Use the Capacity Planner to rearrange the planned orders so resource allocation is optimized. 
6. We recommend to NOT release the production orders yet. 

Step Two: Execute MRP for components

1. After all planned orders are correctly scheduled, return to Inventory → MRP to execute a run for components. 
2. Make sure that MRP Supply Settings: BOM explosion is checked. Planned Production Orders should be selected as demand source and click Run to begin.
3. MRP Run will be executed and generate suggested supply orders for nested products and components.
4. Confirm the suggested supply orders for nested products and components to create purchase, transfer, and production orders in draft, planned, or authorized status. 
5. (Optional) Consolidate production orders and nested orders for convenience. 
6. Release production orders.