chapter 15 - material & capacity requirements planning

7/22/2019 Chapter 15 - Material & Capacity Requirements Planning

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Chapter 15 - Material & Capacity

Requirements Planning(MRP/CRP)


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Planning Objectives

Satisfy customer demand

Ensure availability and efficient use of

resources

Material

Capacity

KEY - Balance demand and resources


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Planning and Control System

Questions What are we going to make, and when?

What does it take to make it?

What do we already have?

What must we get, and when?

Successful answers result in right:

goods, quantity, quality, time, cost


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Types of Resource Planning

Systems Material Requirements Planning (MRP) -

A set of techniques that uses bill of material

data, inventory data, and the master productionschedule to calculate time-phased requirements

for materials. Recommends release of

replenishment orders and rescheduling of open

orders as conditions (priorities) change. APICS Dictionary - 9th Ed.


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MRPs Objectives What to Order

How Much to Order

When to Order

When to Schedule Delivery


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MRP OverviewMRP Inputs MRP Processing MRP Outputs

Master

schedule

Bill of

materials

file

Inventory

records

file

MRP computer

programs

Changes

Order releases

Planned-order

schedules

Exception reports

Planning reports

Performance-

control

reports

Inventory

transaction

Primary

reports

Secondary

reports


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Material Requirements Planning

Inputs Master schedule: States which end items to produce,

when, and in what quantities.

Bill of materials: Raw materials, parts, subassemblies,and assemblies needed to produce one unit of a product(Single vs. multiple level).

Product structure tree: Visual depiction of a bill of

materials, with all components listed by levels Inventory status/transactions: Location, quantity,

ins, outs, picks, changes.

Planning Factors: Lead time, scrap allowance, yieldfactors, lot sizes, safety stock/safety lead time


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Material Requirements Planning

A Final Point

MRP focuses on materials ONLY andDOES NOT guarantee that the plan

can be implemented from a

capacity/resource perspective. Toclose the loop, its necessary to do

capacity requirements planning (CRP)


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Capacity Requirements Planning The process of determining short-range capacity requirements from

MRP outputs Load reports/profiles show known and

expected future capacity requirements

vs. expected capacity availability


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Ch 13 - 28 1998 by Prentice-Hall IncRussell/Taylor Oper Mgt 2/e

Capacity Requirements PlanningMRP planned

order

releases

Routing

file

Capacity

requirements

planning

Open

orders

file

Load profile for

each machine center


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Capacity Requirements

Planning - Initial Load Profile

1 2 3 4 5 6

Time (weeks)

Normal

capacity

Hours of

capacity


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Capacity Requirements Planning

- Adjusted Profile

1 2 3 4 5 6

Time (weeks)

Work an

extra shift

Push back

Push back

Pull ahead

Overtime

Hours of

capacity


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Systems Manufacturing Resource Planning (MRP II)

A method for the effective planning of all

resources of a manufacturing company.Provides simulation capability to answer what-if capability and is made up of a variety of

planning functions, each linked together.

Output from these functions is linked with otherbusiness functions and financial reports. Anextension of MRP.

Modified from APICS Dictionary - 9th Ed.


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Systems Enterprise Resource Planning (ERP)

A method for the effective planning and control

of all resourcesneeded to take, make, ship, andaccount for customer orders. Differs from

typical MRP II in technical requirements such

as graphical user interface, relational database,

4GL languages, client-server architecture and

open-system portability (Example SAP R/3) Modified from APICS Dictionary - 9th Ed.


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Trends in Resource Planning

Systems More powerful/sophisticated

More encompassing

More integrated/flexible More options

More user-friendly/robust

More data-base focused More data-intense


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Chapter 16 - Just-In-Time


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JIT/Lean ProductionJust-in-time: Repetitive production system

in which processing and movement ofmaterials and goods occur just as they are

needed, usually in small batches

JIT is characteristic of leanproduction systems

JIT operates with very little fat


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Just-In-Time Concepts

jit - Inventory/production control system

JIT - Philosophy of continuous improvement

Simplification/Execution

Elimination of Waste

Reduced transaction processing

Multi-pronged approach

High quality, Quick response, Flexibility


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JIT vs. MRP/ERP Similar goals Right products, right place, right time

MRP II

Computer-based, manages complexity

JIT

Manual systems, simplicity/execution

The Super Bowl of Planning & Control

Choice? - play to strengths

MRPPlanning; JIT - execution


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JIT Characteristics A Fixed, Steady Rate of Production Uniform flow

Linear production

Low Inventories Less space, investment Uncover defects

Small Lot Sizes

Less WIP Flexibility/Velocity

Fast feedback


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JIT Characteristics Quick, Low Cost Setups Flexibility/Velocity

Small lot sizes

Layout

U-shaped

Cellular

Preventive Maintenance & Repair Worker pride/ownership


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JIT Characteristics Multifunctional/Cooperative Workers Guerilla squad

Flexible capacity

High Quality Levels

On-going production

Small/frequent deliveries

Product simplification Standardization

Fewer part numbers/drawings


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JIT Characteristics Reliable Vendors Dock-to-stock

Much smaller number

Long-term relationships

A Pull System of Moving Goods

Request-based

Kanban signal

Problem Solving/Continuous Improvement

chapter 15 - material & capacity requirements planning

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