material requirements........... planning
TRANSCRIPT
Submitted to: Submitted by: Mansi Saxena Vishakh Kumar Sachin Kumar
Vishal Kumar & Rajdeep
A-3
Contents of Presentation
Relevance of the material requirement planning.
MRP system inputs &output
Role in production
Advantage disadvantage
1 2 3 4 5
Gross Requirements 2 20 25 15
Scheduled Receipts 5 30
Available 25 23 33 33 8
Net Requirements 7
Planned Order Receipts 7
Planned Order Releases 7
1 2 3 4 5
Gross Requirements 2 20 25 15
Scheduled Receipts 5 30
Available 25 23 33 33 8
Net Requirements 7
Planned Order Receipts 7
Planned Order Releases 7
Manufacturing computer information system
Determines quantity & timing of dependent demand items
Material Requirements Planning (MRP)
Material requirements planning
Materials Requirements planning : Computer based information system for ordering and scheduling of dependent demand inventories.
A manufacturing company to produce end items to meet demand the availability of sufficient capacity must be co-ordinate with the availability of all raw material
Function of MRP
Order planning and control
Priority planning and control
Providing a basis for planning capacity requirement
MRP depend on some factor
Cost estimateOrder entryInventory control Bill of materialPurchasingManufacturing floor control and schedulinginvoicing
Material requirement planning five stage
Target and marketing
Development of offering
Sales
Superior experience
Retention and win back
Change in product design and product structure
MRP New design in corporation data
Functional input Functional output
What MRP does
END ITEM
MRP
RAW MATERIAL &COMPONENTS
Used in the end product
Detail schedule for
Master schedule for
Operation of MRP system
Inputs process outputs
Inventory status file
MPS file
B.O.M. file
Inventory transaction data
Planned order schedule
Exception reports
MRP
Inventory
Process stage
Demand Type
Number & Value Other
Raw Material WIP Finished
Goods
Independent Dependent
A Items B Items C Items
Maintenance Dependent Operating
Inventory Classifications
Typical Focus of the Master Production Schedule
Make to Order
(Process Focus)
Assemble to Order or Forecast
(Repetitive)
Stock to Forecast(Product Focus)
Schedule finished product
Steel, Beer, Bread Light bulbs, Paper
Print shopMachine shop
Fine dining restaurant
Examples:
Number of end items
Number of inputs
Typical focus of the master production
schedule Schedule orders
Schedule modules
Motorcycles, autos, TVs, fast-food
restaurant
Structure of the MRP System
MRP by period report
MRP by date report
Planned orders report
Purchase requirements
Exception reports
MRPPrograms
Master ProductionScheduleBOM
Lead Times
(Item Master File)
(Bill-of-Material)
Inventory Data
Purchasing data
The Planning ProcessProduction Plan
Execute MaterialPlans
Master ProductionSchedule
MaterialRequirements
Plan
CapacityRequirements
Plan
Execute CapacityPlans
Realistic??No
Yes
Purpose of MRP
Control inventory level Assign operating priorities Assign capacity to load production system
The theme of MRP is the “getting the right
materials to the right place at the right time in right quantities”.
Effect on MRP
End productUsually forecastConventional inventory control applicableRaw material Component partssubassemblies
Objective of MRP
To improve customer service by meeting delivery schedules promised and shortening delivery lead times
To reduce inventory costs by reducing inventory levels
To improve plant operating efficiency by better use of productive resource
Three factor of MRP technique
The MRP technique as a requirements calculator
The MRP A manufacturing ,planning and control system
The MRP A manufacturing resource planning system
Why requirement of MRP
How can we increase the production
How can we more utilization of the things
How can we improve the quality
How can we give the best services
For increase the profit
Independent and Dependent Independent and Dependent DemandDemand
Independent Demand
A
B(4) C(2)
D(2) E(1) D(3) F(2)
Dependent Demand
Independent demand is uncertain. Dependent demand is certain.
Item Materials WithIndependent Demand
Materials WithDependent Demand
DemandSource Company Customers Parent Items
MaterialType Finished Goods WIP & Raw Materials
Method ofEstimatingDemand
Forecast & BookedCustomer Orders
Calculated
PlanningMethod EOQ & ROP MRP
Dependent versus Independent Demand
Implementation of MRP
Management commitmentUser involvement Education and training Selection of packages Data accuracy Realistic MPS
Computer systemMainly discrete productsAccurate bill-of-materialAccurate inventory status
99% inventory accuracy
Stable lead times
© 1984-1994 T/Maker Co.
MRP Requirements
Bicycle(1)P/N 1000
Handle Bars (1)P/N 1001
Frame Assembly (1)P/N 1002
Wheels (2)P/N 1003
Frame (1)P/N 1004
Bill-of-Material Product Structure Tree
Example
Right side
middleLeft side
scissors SC
R Qty: 1
M Qty: 1 L Qty: 1
M Qty: 2 R Qty: 1 L Qty: 1
SC
ExampleExampleChair
Seat
Legs (2) Crossbar
SideRails (2)
Crossbar
BackSupports (3)
LegAssembly
BackAssembly
Level 0
1
2
3
Gross requirement for a period
_
On hand Inventory at the end ofthe period
Schedule receipt for the period
+ = Net requirement for a period
MRP Input
order qty =70 week
lead time =4 week 1 2 3 4 5 6 7 8 9 10 11 12
safety stock40
project requirement 20 20 25 20 20 25 20 20 30 25 25 25
scheduled receipts 70 70 70 70
on hand at the end of period 65 45 95 70 50 100 75 55 105 75 50 95 70
planned order release 70 70 70
Example of MRP
Some Example
If Maruti suzuki decided 1000 units of alto cars model (finished goods ) dec2009 based on forecast
Dell computer manufacture who
planned to produce 10000 units of desk top
Sony Eric son mobile company is planning to produce 50000 units of mobile with camera 4.0 mega pixel capacity
Advantage of MRP
Reduced idle timeReduced set up timeBetter customer servicesBetter response to market demandsHelps managers to use the planned
schedule
Disadvantage of MRP
Lack of top management commitment
MRP was presented and perceived as a complete and stand alone system to run a firm rather than as part of the total system
MRP can be made to function with just in time production system
Problem in using MRP
Preparation of MPSMaintaining accurate of B.O.M. filesIn correct stock (inventory ) status Unrealistic lead times