Download - Chapter 14 Mrp to Erpppt4348
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Chapter 14 MRP to ERP
Independent vs. dependentdemand, MRP inputs and
processing, Closed-loop MRP, MRPII, ERP
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Traditional I/C Problems Reorder point (when to order)
Assumes known, linear demand (sawtooth)
Assumes rough knowledge of lead time Uses safety stock (or safety time) as buffer
Each item planned independently
EOQ (how much to order) Focuses on mechanics of formula
Assumes linear (constant) usage
Always results in inventory
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MRP Material Requirements Planning (MRP)
Father of MRP: Joseph Orlicky (???? - ????)
Dependent vs. independent demand concept Other requirements
Manufacturing Bill of Materials (BOM)
Accurate, well-managed Master Production
Schedule (MPS) to drive MRP Computer software to explode BOMs
Computer hardware speed and data capacity
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Key MRP Inputs Master Production Schedule (MPS)
Well managed Build Plan
Bill of Materials (or recipes) Parent/child relationships
Single level vs. multi-level
Structured for manufacturing On hand inventory (available to use)
Material on order (from supplier)
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Key MRP Inputs Planning factors
Lead time
Lot sizing algorithm or rule Optional adjustments
Safety stock
Safety time
Yield
Shrinkage
etc.
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MRP ProcessingAnswers both questions
When to order
How much to order
Proceeds one level at a time (level-by-level)
Nets and plans action only when lowestlevel in any BOM is reached
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Lot Sizing Algorithms Lot for lot
Seeks to balance supply and demand
Fixed order quantity May have minimums, maximums, multiples
Economic Order Quantity (EOQ) Variations are Least Unit Cost, Least Total Cost,
Part Period Balancing
Period Order Quantity
Fixed Period Requirements
Wagner-Whitin
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MRP Summary - 1 Big number-cruncher
Follows rules using built-in logic and tables
Predicts shortages
Gross requirements derived from plannedorder releases of parent items
Processes level-by-level Nets requirements and plans for an item at
lowest level of use in any BOM
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MRP Summary - 2 First suggests pull-ins, push-outs,
cancellations
Then creates plannedorders (not released)
Provides action and/or exceptionmessages
High-speed computers now mean process inminutes rather than hours
Planner needs to evaluate results before acting
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Problems with MRP Computer model
Decisions may be based on inaccurate data
Inventory-building features have crept in
Safety stock
Safety time
EOQ
Represents a push system
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Resource Planning Systems MRP
Closed loop MRP
MRP II
ERP
SCM Next emphasis > E-commerce
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Closed Loop MRP and MRP II Oliver Wight (???? 1983)
Sold concepts to American management
Closed Loop MRP Feedback any changes in due dates and
quantities
Must have accurate due dates
Manufacturing Resource Planning(MRP II) Integrate Long Range, Intermediate Range,
Short Range, and Real-time planning
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ERP and SCM Enterprise Resource Planning (ERP)
Coined by Gartner Group
Extends integrated planning to CustomerService, Forecasting, Quality, HumanResources, Accounting, Project Management
Supply Chain Management (SCM) Extends planning to other organizations
Tightly couples suppliers and customers
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ERP Software Vendors - 2001 Enterprise Resource Planning (ERP)
SAP Oracle Baan
PeopleSoft J.D. Edwards
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ERP Software Vendors - 2005 Enterprise Resource Planning (ERP)
SAPOracle
PeopleSoft J.D. Edwards
Baan (financial and legal problems followed by acquisition)
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ERP Software Vendors - 2008 Enterprise Resource Planning (ERP)
SAPOracle Infor Global Solutions (SSA ERP - formerly Baan)
The Sage Group