A Hybrid MRP Framework for Spare Parts Optimization in SAP S/4HANA : A Case Study in the Beverage Can Industry
Jurmu, Jonathon (2025)
2025
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2025061222671
https://urn.fi/URN:NBN:fi:amk-2025061222671
Tiivistelmä
Spare parts availability within a highvolume beveragecan manufacturer was identified as a risk at Canpack Finland Oy. The management process of the MRO spare parts materials was presented as a manual and timeconsuming process, which resulted in inefficiencies and operational risks. To address these challenges, the thesis aimed to develop and validate an improved framework for Material Requirements Planning (MRP) that would be adapted to work within the SAP S/4HANA environment.
A qualitative case study methodology was employed to conduct the research. The existing MRO spare parts process was systemically analyzed through process mapping to identify inefficiencies. The dynamic capabilities of SAP S/4HANA were investigated through a semistructured interview with a certified SAP specialist and validated through direct participatory observation of parameter testing within the company’s live system. This approach validated that the proposed solution, which was established through inventory theory, could be connected with the practical reality of the company’s operations.
The primary outcome from this research was the development of a proposed hybrid MRP model. The model was designed to use the automatic reorder point functionality in SAP S/4HANA, through which safety stock and reorder points could be dynamically calculated based on the most recent consumption data. Together with this automatic reorder point functionality, a datadriven approach was used through Economic Order Quantity (EOQ) to establish costeffective maximum stock levels. Exceptions were identified in lowturnover items that were lacking sufficient historical data, for which the manual reorder point planning was recommended to ensure that stock decisions were guided by Bill of Materials (BOM) or Preventive Maintenance (PM) requirements.
The implementation of this hybrid framework was concluded to offer significant benefits. Operational efficiency and service quality were projected to improve by reducing manual workload and improving the inventory management practices. Furthermore, inventory costs were projected to be more balanced and risks related to production downtime reduced. The findings provide a practical, implementable solution for Canpack Finland Oy and offers a valuable model for other manufacturing entities facing similar challenges in MRO spare parts management.
A qualitative case study methodology was employed to conduct the research. The existing MRO spare parts process was systemically analyzed through process mapping to identify inefficiencies. The dynamic capabilities of SAP S/4HANA were investigated through a semistructured interview with a certified SAP specialist and validated through direct participatory observation of parameter testing within the company’s live system. This approach validated that the proposed solution, which was established through inventory theory, could be connected with the practical reality of the company’s operations.
The primary outcome from this research was the development of a proposed hybrid MRP model. The model was designed to use the automatic reorder point functionality in SAP S/4HANA, through which safety stock and reorder points could be dynamically calculated based on the most recent consumption data. Together with this automatic reorder point functionality, a datadriven approach was used through Economic Order Quantity (EOQ) to establish costeffective maximum stock levels. Exceptions were identified in lowturnover items that were lacking sufficient historical data, for which the manual reorder point planning was recommended to ensure that stock decisions were guided by Bill of Materials (BOM) or Preventive Maintenance (PM) requirements.
The implementation of this hybrid framework was concluded to offer significant benefits. Operational efficiency and service quality were projected to improve by reducing manual workload and improving the inventory management practices. Furthermore, inventory costs were projected to be more balanced and risks related to production downtime reduced. The findings provide a practical, implementable solution for Canpack Finland Oy and offers a valuable model for other manufacturing entities facing similar challenges in MRO spare parts management.