Material requirements planning
-
Upload
pankaj-kumar -
Category
Documents
-
view
21 -
download
1
description
Transcript of Material requirements planning
![Page 1: Material requirements planning](https://reader034.fdocuments.us/reader034/viewer/2022051322/54510f84af7959cc638b5bbe/html5/thumbnails/1.jpg)
Material Requirements Planning
MRP
By Amrendra Kumar
![Page 2: Material requirements planning](https://reader034.fdocuments.us/reader034/viewer/2022051322/54510f84af7959cc638b5bbe/html5/thumbnails/2.jpg)
• Material requirements planning (MRP): Computer-based information system for ordering and scheduling of dependent demand inventories
MRP
![Page 3: Material requirements planning](https://reader034.fdocuments.us/reader034/viewer/2022051322/54510f84af7959cc638b5bbe/html5/thumbnails/3.jpg)
• Dependent demand: Demand for items that are subassemblies or component parts to be used in production of finished goods.
Dependent Demand
![Page 4: Material requirements planning](https://reader034.fdocuments.us/reader034/viewer/2022051322/54510f84af7959cc638b5bbe/html5/thumbnails/4.jpg)
MRP Inputs MRP Processing MRP Outputs
Masterschedule
Bill ofmaterials
Inventoryrecords
MRP computerprograms
Changes
Order releases
Planned-orderschedules
Exception reports
Planning reports
Performance-controlreports
Inventorytransaction
Primaryreports
Secondaryreports
![Page 5: Material requirements planning](https://reader034.fdocuments.us/reader034/viewer/2022051322/54510f84af7959cc638b5bbe/html5/thumbnails/5.jpg)
• Master Production Schedule• Time-phased plan specifying timing and quantity of production for each
end item.• Material Requirement Planning Process
Product Structure
Tree
Lead Times
MRP Inputs
![Page 6: Material requirements planning](https://reader034.fdocuments.us/reader034/viewer/2022051322/54510f84af7959cc638b5bbe/html5/thumbnails/6.jpg)
Master Schedule
Master schedule: One of three primary inputs in MRP; states which end items are to be produced, when these are needed, and in what quantities.
Cumulative lead time: The sum of the lead times that sequential phases of a process require, from ordering of parts or raw materials to completion of final assembly.
![Page 7: Material requirements planning](https://reader034.fdocuments.us/reader034/viewer/2022051322/54510f84af7959cc638b5bbe/html5/thumbnails/7.jpg)
Planning Horizon
1 2 3 4 5 6 7 8 9 10
Procurement
Fabrication
Subassembly
Assembly
![Page 8: Material requirements planning](https://reader034.fdocuments.us/reader034/viewer/2022051322/54510f84af7959cc638b5bbe/html5/thumbnails/8.jpg)
Bill-of-Materials
Bill of materials: One of the three primary inputs of MRP; a listing of all of the raw materials, parts, subassemblies, and assemblies needed to produce one unit of a product.
Product structure tree: Visual depiction of the requirements in a bill of materials, where all components are listed by levels.
![Page 9: Material requirements planning](https://reader034.fdocuments.us/reader034/viewer/2022051322/54510f84af7959cc638b5bbe/html5/thumbnails/9.jpg)
Product Structure Tree
Chair
Seat
Legs (2) Crossbar
SideRails (2)
Crossbar
BackSupports (3)
LegAssembly
BackAssembly
Level 0
1
2
3
![Page 10: Material requirements planning](https://reader034.fdocuments.us/reader034/viewer/2022051322/54510f84af7959cc638b5bbe/html5/thumbnails/10.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 11: Material requirements planning](https://reader034.fdocuments.us/reader034/viewer/2022051322/54510f84af7959cc638b5bbe/html5/thumbnails/11.jpg)
MRP Processing
• Gross requirements
• Schedule receipts
• Projected on hand
• Net requirements
• Planned-order receipts
• Planned-order releases
![Page 12: Material requirements planning](https://reader034.fdocuments.us/reader034/viewer/2022051322/54510f84af7959cc638b5bbe/html5/thumbnails/12.jpg)
MRP Outputs
• Planned orders - schedule indicating the amount and timing of future orders.
• Order releases - Authorization for the execution of planned orders.
• Changes - revisions of due dates or order quantities, or cancellations of orders.
![Page 13: Material requirements planning](https://reader034.fdocuments.us/reader034/viewer/2022051322/54510f84af7959cc638b5bbe/html5/thumbnails/13.jpg)
MRP Secondary Reports
• Performance-control reports
• Planning reports
• Exception reports
![Page 14: Material requirements planning](https://reader034.fdocuments.us/reader034/viewer/2022051322/54510f84af7959cc638b5bbe/html5/thumbnails/14.jpg)
Other Considerations
• Safety Stock• Lot sizing
– Lot-for-lot ordering– Economic order quantity– Fixed-period ordering– Part-period model
![Page 15: Material requirements planning](https://reader034.fdocuments.us/reader034/viewer/2022051322/54510f84af7959cc638b5bbe/html5/thumbnails/15.jpg)
Capacity Planning
Capacity 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 16: Material requirements planning](https://reader034.fdocuments.us/reader034/viewer/2022051322/54510f84af7959cc638b5bbe/html5/thumbnails/16.jpg)
MRP Planning
Develop a tentativemaster production
schedule
Develop a tentativemaster production
schedule
Use MRP tosimulate material
requirements
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 17: Material requirements planning](https://reader034.fdocuments.us/reader034/viewer/2022051322/54510f84af7959cc638b5bbe/html5/thumbnails/17.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 18: Material requirements planning](https://reader034.fdocuments.us/reader034/viewer/2022051322/54510f84af7959cc638b5bbe/html5/thumbnails/18.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 19: Material requirements planning](https://reader034.fdocuments.us/reader034/viewer/2022051322/54510f84af7959cc638b5bbe/html5/thumbnails/19.jpg)
Requirements of MRP
• Computer and necessary software
• Accurate and up-to-date
– Master schedules
– Bills of materials
– Inventory records
• Integrity of data
![Page 20: Material requirements planning](https://reader034.fdocuments.us/reader034/viewer/2022051322/54510f84af7959cc638b5bbe/html5/thumbnails/20.jpg)
• Expanded MRP with an emphasis placed on integration
– Financial planning
– Marketing
– Engineering
– Purchasing
– Manufacturing
MRP II
![Page 21: Material requirements planning](https://reader034.fdocuments.us/reader034/viewer/2022051322/54510f84af7959cc638b5bbe/html5/thumbnails/21.jpg)
MarketDemand
Productionplan
Problems?
Rough-cutcapacity planning
Yes No YesNo
Finance
Marketing
Manufacturing
Adjustproduction plan
Masterproduction schedule
MRP
Capacityplanning
Problems?Requirements
schedules
Ad
just
mas
ter
sch
edu
le
MRP II