Chapter 13
description
Transcript of Chapter 13
![Page 1: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/1.jpg)
Chapter 13
MRP: Material Requirement Planning
ERP: Enterprise Resource Planning
![Page 2: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/2.jpg)
Material requirements planning Computer-based Information System for Ordering and Scheduling of Dependent Demand Inventories
MRP
![Page 3: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/3.jpg)
A
B(4) C(2)
D(2) E(1) D(3) F(2)
Independent Demand
Dependent Demand
Independent and Dependent Demand
Dependent demand: Demand for items that are subassemblies or component parts to be used in production of finished goods.
![Page 4: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/4.jpg)
MRP Inputs MRP Processing MRP Outputs
Masterschedule
Bill ofmaterials
Inventoryrecords
MRP computerprograms
Changes
Order releasesPlanned-orderschedules
Exception reports
Planning reportsPerformance-controlreports
Inventorytransaction
Primaryreports
Secondaryreports
Information Flow, Processes, Data Bases
![Page 5: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/5.jpg)
Inputs to MRP
(1) Master schedule: Identifying (a) which end items are to be produced, (b) in what quantities, and (c) when these are needed.
(2) Bill of Material : a listing of all of the raw materials, parts, subassemblies, and assemblies needed to produce one unit of a product.
(3) Inventories
![Page 6: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/6.jpg)
Bill-of-MaterialsProduct structure tree: Visual depiction of the
requirements in a bill of materials, where all components are listed by levels.
Product Structure Tree
Lead Times
![Page 7: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/7.jpg)
Product Structure Tree
![Page 8: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/8.jpg)
Product Structure Tree
Chair
Seat
Legs (2) Crossbar
SideRails (2)
Crossbar
BackSupports (3)
Front LegAssembly
BackAssembly
Level 0
1
2
3
![Page 9: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/9.jpg)
Product Structure Tree
Chair
Seat
Legs (2) Crossbar
SideRails (2)
Crossbar
BackSupports (3)
Front LegAssembly
BackAssembly
Level 0
1
2
3
![Page 10: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/10.jpg)
Example
A
D (3) E E (2) F (2)
B (2) C
Level 0
1
2
3 E (4)
Determine the quantities of B, C, D, E, and F to produce one unit of A
![Page 11: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/11.jpg)
Extend Level 1
A
D (3*2) E(2) E (2) F (2)
B(2) C
Level 0
1
2
3 E (4)
![Page 12: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/12.jpg)
Extend Level 2
A
D (3*2) E(2) E (2) F (2)
B(2) C
Level 0
1
2
3E (4*3*2)
![Page 13: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/13.jpg)
Compute the Quantities
A
D (6) E(2) E (2) F (2)
B(2) C
Level 0
1
2
3 E (24)
We needB=2C=1D=6E=28F=2
![Page 14: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/14.jpg)
ExampleInventory B=4C=10D=8E=60F=0
Determine the quantities of these components that we need to order or assemble to satisfy demand of 10A
A(10)
D (3) E E (2) F (2)
B (2) C
Level 0
1
2
3 E (4)
![Page 15: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/15.jpg)
Extend Level 0
A(10)
D (3) E E (2) F (2)
B (20) C (10)
Level 0
1
2
3 E (4)Inventory B=4C=10
![Page 16: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/16.jpg)
Level 1 Computations
A(10)
D (3) E E (2) F (2)
B (20- 4=16) C (10-10=0)
Level 0
1
2
3 E (4)
![Page 17: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/17.jpg)
Extend Level 1
A(10)
B (16) C (0)
Level 0
1
2
3
![Page 18: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/18.jpg)
Extend Level 1
A(10)
D (3*16) E(1*16) E (2*0) F (2*0)
B (16) C (0)
Level 0
1
2
3 E (4)
![Page 19: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/19.jpg)
Extend Level 1
A(10)
D (48) E(16) E (0) F (0)
B (16) C (0)
Level 0
1
2
3 E (4)Inventory D=8E=60F=0
![Page 20: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/20.jpg)
Level 2 Computations
A(10)
D (48-8=40) E(16) E (0) F (0)
B (16) C (0)
Level 0
1
2
3 E (4)
![Page 21: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/21.jpg)
Level 2 Computations
A(10)
D (40) E(16) E (0) F (0)
B (16) C (0)
Level 0
1
2
3 E (4)
![Page 22: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/22.jpg)
Extend Level 2
A(10)
D (40) E(16) E (0) F (0)
B (16) C (0)
Level 0
1
2
3E (4*40)
![Page 23: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/23.jpg)
Extend Level 2
A(10)
D (40) E(16) E (0) F (0)
B (16) C (0)
Level 0
1
2
3E (160)
![Page 24: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/24.jpg)
Extend Level 2
A(10)
D (40) E(16) E (0) F (0)
B (16) C (0)
Level 0
1
2
3E (160)
Inventory E=60Requirement E = 160+16-60=116
E=60F=0
![Page 25: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/25.jpg)
Extend Level 2
A(10)
D (40) E(16) E (0) F (0)
B (16) C (0)
Level 0
1
2
3E (100)
![Page 26: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/26.jpg)
Assembly Time Chart
1 2 3 4 5 6 7 8 9 10 11
Procurement ofraw material D
Procurement ofraw material F
Procurement ofpart C
Procurement ofpart H
Procurement ofraw material I
Fabricationof part G
Fabricationof part E
Subassembly A
Subassembly B
Final assemblyand inspection
![Page 27: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/27.jpg)
Shutter, 1 Frame (LT=2W), and 4 Wood Section (LT=1W)
1 2 3
Frame (2, 2)
Wood Sections (4,1)
ShutterAssembly (1)
![Page 28: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/28.jpg)
Week BegInv
1 2 3 4 5 6 7 8
Quantity 100 150
ShutterLT = 1W
Gross Requirement
Scheduled Receipts
Projected on Hand
Net Requirement
Planned Order Receipts
Planned Order Releases
100 150
100 150
100 150
100 150
Master Schedule; Lot for Lot Ordering
Shutter has two frames and four wood sections
![Page 29: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/29.jpg)
FrameLT = 2W
Gross Requirement
Scheduled Receipts
Projected on Hand
Net Requirement
Planned Order Receipts
Planned Order Releases
200 300
200 300
200 300
200 300
ShutterLT = 1W
Gross Requirement 100 150
Scheduled Receipts
Projected on Hand
Net Requirement 100 150
Planned Order Receipts 100 150
Planned Order Releases 100 150
Frame; 2 per unit, LT=2 W
![Page 30: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/30.jpg)
Wood SectionLT = 1W
Gross Requirement
Scheduled Receipts
Projected on Hand
Net Requirement
Planned Order Receipts
Planned Order Releases
400 600
70
600
330 600
330 600
ShutterLT = 1W
Gross Requirement 100 150
Scheduled Receipts
Projected on Hand
Net Requirement 100 150
Planned Order Receipts 100 150
Planned Order Releases 100 150
70 70 70
330
Wood Section; 4 per unit, LT=1 W
![Page 31: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/31.jpg)
FrameLT = 2WEOQ 320
Gross Requirement 200 300
Scheduled Receipts
Projected on Hand
Net Requirement 200
Planned Order Receipts
Planned Order Releases 320
180
320 320
ShutterLT = 1W
Gross Requirement 100 150
Scheduled Receipts
Projected on Hand
Net Requirement 100 150
Planned Order Receipts 100 150
Planned Order Releases 100 150
Master Schedule; Lot Size Ordering; EOQ 320, 70
120 120 120 120 140
320
![Page 32: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/32.jpg)
Wood SectionLT = 1WEOQ 70
Gross Requirement 400 600
Scheduled Receipts 70
Projected on Hand 70 70 70
Net Requirement 330
Planned Order Receipts
Planned Order Releases580
350 630
350 630
ShutterLT = 1W
Gross Requirement 100 150
Scheduled Receipts
Projected on Hand
Net Requirement 100 150
Planned Order Receipts 100 150
Planned Order Releases 100 150
20 20 20
Lot Size Ordering: EOQ 70
20 50
![Page 33: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/33.jpg)
Practice; Example (pp 606, P2), Units Required, Lead Times
Item End B C D E F G HLT (WK) 1 2 3 3 1 2 1 2InvOnHand 0 10 10 25 12 30 5 0For 20 units of the end item, how many additional units of each item is required
A
E (2) F(3) G (2) E (2)
B (2) D(3)
Level 0
1
2
C
E (2) H (4)
![Page 34: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/34.jpg)
Units Required
A(20)
E (2) F(3) G (2) E (2)
B (2) D(3)
Level 0
1
2
C(1)
E (2) H (4)
Item End B C D E F G HInvOnHand 0 10 10 25 12 30 5 0
![Page 35: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/35.jpg)
A(20)
E (2) F(3) G (2) E (2)
B (40) D(60)
Level 0
1
2
C(20)
E (2) H (4)
Item End B C D E F G HInvOnHand 0 10 10 25 12 30 5 0
Units Required
![Page 36: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/36.jpg)
A(20)
E (2) F(3) G (2) E (2)
B (40-10) D(60-25)
Level 0
1
2
C(20-10)
E (2) H (4)
Units Required
![Page 37: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/37.jpg)
A(20)
E (2) F(3) G (2) E (2)
B (30) D(35)
Level 0
1
2
C(10)
E (2) H (4)
Units Required
![Page 38: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/38.jpg)
A(10)
E (2*30) F(3*30) G (2*10) E (2*35)
B (30) D(35)
Level 0
1
2
C(10)
E (2*10) H (4*35)
Units Required
![Page 39: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/39.jpg)
A(10)
E (60) F(90) G (20) E (70)
B (30) D(35)
Level 0
1
2
C(10)
E (20) H (140)
Item E F G HInvOnHand 12 30 5 0
Units Required
![Page 40: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/40.jpg)
A(10)
E (60-12) F(90-30) G (20-5) E (70)
B (30) D(35)
Level 0
1
2
C(10)
E (20) H (140)
Units Required
![Page 41: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/41.jpg)
A(10)
E (48) F(60) G (15) E (70)
B (30) D(35)
Level 0
1
2
C(10)
E (20) H (140)
Item End B C D E F G HRequired 20 30 10 35 138 60 15 140
Units Required
![Page 42: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/42.jpg)
Example (pp 673, P2); Lead Times
A(1)
Item End B C D E F G HLT (WK) 1 2 3 3 1 2 1 2Required 20 30 10 35 138 60 15 140
![Page 43: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/43.jpg)
Lead Times
A(1)
B DC
Item B C D E F G HLT (WK) 2 3 3 1 2 1 2Required 30 10 35 138 60 15 140
![Page 44: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/44.jpg)
Lead Times
A(1)
B (2) D(3)C(3)
![Page 45: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/45.jpg)
Lead Times
A(1)
E F
G E
B (2) D(3)C(3)
E H
Item E F G HLT (WK) 1 2 1 2Required 138 60 15 140
![Page 46: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/46.jpg)
Lead Times
A(1)
E (1) F(2)
G (1) E (1)
B (2) D(3)C(3)
E (1)H (2)
![Page 47: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/47.jpg)
Lead Times
A(1)
E (1) F(2)
G (1) E (1)
B (2) D(3)C(3)
E (1) H (2)
![Page 48: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/48.jpg)
Week BegInv
1 2 3 4 5
Quantity 120
Product XLT = 1W
Gross Requirement
Scheduled Receipts
Projected on Hand
Net Requirement
Planned Order Receipts
Planned Order Releases
120
120
120
120
Master Schedule; Lot for Lot Ordering
Part X (LT=1) is formed by three Part A (LT=1) Part A is formed by two Part B (LT=2)
![Page 49: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/49.jpg)
Part A (3)LT = 1W
Gross Requirement
Scheduled Receipts
Projected on Hand
Net Requirement
Planned Order Receipts
Planned Order Releases
360
60
60 60 60
Product XLT = 1W
Gross Requirement 120
Scheduled Receipts
Projected on Hand
Net Requirement 120
Planned Order Receipts 120
Planned Order Releases 120
Part A; 3 per unit, LT=1 W
300
300
300
![Page 50: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/50.jpg)
Part B(2)LT = 2W
Gross Requirement
Scheduled Receipts
Projected on Hand
Net Requirement
Planned Order Receipts
Planned Order Releases
600
100
100 100 100
Part B; 5 per unit, LT=2 W
500
500
500
Part A (3)LT = 1W
Gross Requirement
Scheduled Receipts
Projected on Hand
Net Requirement
Planned Order Receipts
Planned Order Releases
360
60
60 60 60
300
300
300
![Page 51: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/51.jpg)
Solved Problems 1 and 2 on pages 602-604.First solve the problem yourself.Then look at the solution.
Need More Practice ?
![Page 52: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/52.jpg)
MRP Secondary Reports• Performance-control reports
• Planning reports
• Exception reports
![Page 53: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/53.jpg)
Other Considerations• Safety Stock• Lot sizing
– Lot-for-lot ordering– Economic order quantity– Fixed-period ordering– Part-period model
![Page 54: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/54.jpg)
Capacity PlanningCapacity requirements planning: The process
of determining short-range capacity requirements.
Load reports: Department or work center reports that compare known and expected future capacity requirements with projected capacity availability.
Time fences: Series of time intervals during which order changes are allowed or restricted.
![Page 55: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/55.jpg)
MRP Planning
Develop a tentativemaster production
schedule
Use MRP tosimulate material
requirements
Convert materialrequirements to
resource requirements
Firm up a portionof the MPS
Is shopcapacity
adequate?
Cancapacity be
changed to meetrequirements
Revise tentativemaster production
schedule
Changecapacity
Yes
No
Yes
No
![Page 56: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/56.jpg)
• Food catering service– End item => catered food– Dependent demand => ingredients for
each recipe, i.e. bill of materials• Hotel renovation
– Activities and materials “exploded” into component parts
MRP in Services
![Page 57: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/57.jpg)
Benefits of MRP
• Low levels of in-process inventories
• Ability to track material requirements
• Ability to evaluate capacity requirements
• Means of allocating production time
![Page 58: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/58.jpg)
Requirements of MRP• Computer and necessary software• Accurate and up-to-date
– Master schedules– Bills of materials– Inventory records
• Integrity of data
![Page 59: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/59.jpg)
• Expanded MRP with and emphasis placed on integration– Financial planning
– Marketing
– Engineering
– Purchasing
– Manufacturing
MRP II
![Page 60: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/60.jpg)
MarketDemand
Productionplan
Problems?
Rough-cutcapacity planning
Yes No YesNo
Finance
Marketing
Manufacturing
Adjustproduction plan
Masterproduction schedule
MRP
Capacityplanning
Problems?Requirements
schedules
Adj
ust m
aste
r sch
edul
e
MRP II
![Page 61: Chapter 13](https://reader036.fdocuments.us/reader036/viewer/2022070420/56815faf550346895dcea9bb/html5/thumbnails/61.jpg)
• Enterprise resource planning (ERP): An expanded effort to integrate standardized record-keeping that will permit information sharing throughout the organization
ERP