Operations Management

Dr. TRAN QUYNH LE

Industrial Systems Engineering Department
Mechanical Engineering Faculty
Ho Chi Minh City University of Technology (HCMUT)–
VNUHCM
 CHAPTER 8:

MATERIAL REQUIREMENTS PLANNING (MRP )

JUST-IN-TIME (JIT )

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 LEARNING OUTCOME
After completing this chapter, you should be able to:

• Describe the conditions under which MRP is most appropriate.

• Describe the inputs, outputs, and nature of MRP processing.

• Explain how requirements in a master production schedule are translated into

material requirements for lower-level items.

• Discuss the benefits and requirements of MRP.

• Describe some of the difficulties users have encountered with MRP.

• Introduce JIT

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 INTRODUCTION

Evolution of ERP
2000s
1990s Extended
Enterprise ERP
1980s resource
Manufacturing planning
resource (ERP)
1970s planning
Material (MRPII)
requirements
planning
1960s (MRP)
Inventory
Control
Packages

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 INTRODUCTION
• Resource
Planning for
Manufacturing

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 AN OVERVIEW OF MRP
• Material requirements planning (MRP) A methodology that translates master schedu
requirements for end items into time-phased requirements for subassemblie
components, and raw materials

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 AN OVERVIEW OF MRP
• MRP is designed to answer three questions:

✓ What is needed?
Production schedule
✓ How much is needed?
✓ And when is it needed? Inventory status

MRP

Purchasing

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 Independent and Dependent demand
• Dependent demand: Demand for items that are subassemblies or component parts
to be used in the production of finished goods.

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 AN OVERVIEW OF MRP
• MRP inputs, processing, and outputs

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 MRP INPUTS
• The Master Schedule
✓ Which end items are to be produced
✓ When these are needed
✓ What quantities
The master schedule cover the stacked or cumulative lead time necessary to produce
the end items
• Bill Of Materials (BOM)
✓ A listing of all of the raw materials, parts, subassemblies, and assemblies
needed to produce one unit of a product.
• Inventories
✓ Includes information on the status of each item by time period.
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 The Bill of Materials
• Bill Of Materials (BOM): A listing of
all of the raw materials, parts,
subassemblies, and assemblies
needed to produce one unit of a
product.
• Product Structure Tree: A visual
depiction of the requirements in a
bill of materials, where all
components are listed by levels.

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 The Bill of Materials
A product structure tree for item X

• Determine the quantities of B, C, D,

E, and F needed to assemble X?

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 The Bill of Materials
A product structure tree for item X
Example 1
• Determine the quantities of B, C, D,
E, and F needed to assemble 10 Xs?
• Determine the quantities of these
components that will be required to
assemble 10 Xs, taking into account
the quantities on hand (i.e., in
inventory) of various components:

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 The Bill of Materials

Example 1

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 The Bill of Materials

Example 1

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 MRP PROCESSING
Assembly time chart

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MRP PROCESSING

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 MRP PROCESSING
• Gross Requirements Total expected demand for an item or raw material in a time
period.
• Scheduled Receipts Open orders scheduled to arrive from vendors or elsewhere
in the pipeline.
• Projected On Hand Expected amount of inventory that will be on hand at the
beginning of each time period.
• Net Requirements The actual amount needed in each time period.
• Planned-order Receipts Quantity expected to be received by the beginning of the
period in which it is shown.
• Planned-order Releases Planned amount to order in each time period; planned
order receipts offset by lead time.

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 MRP PROCESSING
Project inventory on-hand for current period = Planned receipts for previous period −
Net requirements for previous period + Scheduled receipts for current period

Net requirements for current period = Gross requirements for current period −
Projected on-hand inventory for current period

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 MRP PROCESSING
Example 2
A firm that produces wood shutters and bookcases has received two orders for
shutters: one for 100 shutters and one for 150 shutters. The 100-unit order is due for
delivery at the start of week 4 of the current schedule, and the 150-unit order is due
for delivery at the start of week 8. Each shutter consists of two frames and four
slatted wood sections. The wood sections are made by the firm, and fabrication takes
one week. The frames are ordered, and lead time is two weeks. Assembly of the
shutters requires one week. There is a scheduled receipt of 70 wood sections in (i.e.,
at the beginning of) week 1. Determine the size and timing of planned-order releases
necessary to meet delivery requirements under each of these conditions:
1. Lot-for-lot ordering (i.e., planned-order release equal to net requirements).
2. Lot-size ordering with a lot size of 320 units for frames and 70 units for wood
sections

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 MRP PROCESSING
Example

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 MRP PROCESSING
Example 2

MRP schedule with lot-for-

lot ordering

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 MRP PROCESSING
Example 2
MRP schedule with lot sizes for
components

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 MRP OUTPUTS
Primary Reports.
• 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
Secondary Reports.
• Performance-control Reports Evaluation of system operation, including deviations
from plans and cost information
• Planning Reports Data useful for assessing future material requirements.
• Exception Reports Data on any major discrepancies encountered.

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 OTHER CONSIDERATIONS
• Safety Stock
• Lot Sizing
✓ Lot-for-Lot Ordering.
✓ Economic Order Quantity Model.
✓ Fixed-Period Ordering

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 MRP II
• Manufacturing Resources Planning (MRP II)
Expanded approach to production resource
planning, involving other areas of a firm in the
planning process and enabling capacity
requirements planning.

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 CAPACITY REQUIREMENTS PLANNING
• Capacity Requirements Planning The process of determining short-range capacity
requirements.
• Time Fences Series of time intervals during which order changes are allowed or
restricted; the nearest fence is most restrictive to change, the farthest is least
restrictive.

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REMIND

✓ Design capacity : The maximum designed service capacity or output rate

✓ Effective capacity : Design capacity minus personal and other allowances
✓ Actual output: Rate of output actually achieved-cannot exceed effective capacity

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REMIND

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REMIND

Example: Given the following information, compute the efficiency and the utilization
of the vehicle repair department:
• Design capacity = 50 trucks per day
• Effective capacity = 40 trucks per day
• Actual output = 36 trucks per day

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CAPACITY REQUIREMENTS PLANNING

• Example 3:
• Production schedule of Minh Thanh company with 1.5 liter bottles in the next 5
months:
Month
1 2 3 4 5
Number of 100.000 125.000 100.000 175.000 150.000
bottles

• Capacity of company:
✓ Labor: 150.000 bottles/month
✓ Machine: 200.000 bottles/month
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CAPACITY REQUIREMENTS PLANNING
• Example 3:
Month Labor utilization Machine utilization

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CAPACITY REQUIREMENTS PLANNING
• Example 3:
• Option 1: April: overtime to make 25,000 more bottles

• Option 2: March: overtime to make 25,000 more bottles

Month
1 2 3 4 5
Number of 100.000 125.000 125.000 150.000 150.000
bottles

• Chose option 1 or 2 depend on total cost

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JUST – IN – TIME
(JIT)
JIT AND LEAN OPERATIONS
• Lean operation A flexible system that uses minimal resources and produces high
quality goods or services.
• Lean systems are sometimes referred to as just-in-time (JIT) systems owing to
their highly coordinated activities and delivery of goods that occur just as they are
needed

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JIT SYSTEM
• Flexible resources- Tài nguyên (nguồn lực) linh động-
• Cellular layout- Mặt bằng theo ô – nhóm -
• Pull Systems- Hệ thống kéo
• Kanban Control system- Hệ thống kiểm soát - Kanban
• Small batch production- Sản xuất loạt nhỏ
• Single-Minute Exchange of Die- Điều chỉnh nhanh - SMED
• Sản xuất đều đặn
• Quality Improvement- Cải tiến chất lượng
• Close Vendor Relationships - Quan hệ với nhà cung cấp
• Continuous Improvement- Cải tiến liên tục

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 JIT SYSTEM

1. Flexible resources- Tài nguyên linh động

• Công nhân đa năng
• Máy móc vạn năng

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 JIT SYSTEM

2. Cellular layout- Mặt bằng theo ô – nhóm -

HM

Dòng di chuyển vật tư theo ô chức năng

VM
Đường di chuyển của
nhân công theo Ô CN3
VM

Dòng di chuyển vật L

tư

Ghi chú: CN 2
G
S = Máy cưa (Saw)
L = máy tiện (Lathe) L
HM = Máy Bào trục ngang
(Horizontal milling Final
inspectio
machine) n
VM = Máy bào trục đứng
(Vertical milling Finishe
machine) S CN 1 d part

G = Máy mài (Grinder)

Vào Ra

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JIT SYSTEM
3.Pull Systems- Hệ thống kéo

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JIT SYSTEM
3.Pull Systems- Hệ thống kéo

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JIT SYSTEM
4.Kanban Control system- Hệ thống kiểm soát – Kanban

• Công cụ kiểm soát sản xuất

• Thẻ / phiếu đặt hàng/ vận chuyển

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JIT SYSTEM
5. Small batch production- Sản xuất loạt nhỏ
• Ưu điểm
✓ Di chuyển quá trình lại gần nhau
✓ Đơn giản việc vận chuyển
✓ Dễ phát hiện các vấn đề chất lượng
✓ Tồn kho thấp

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JIT SYSTEM
6. Single-Minute Exchange of Die- Điều chỉnh nhanh - SMED
• Điều chỉnh trong: tiến hành khi máy ngừng
• Điều chỉnh ngoài: tiến hành khi máy đang chạy
• Nguyên tắc:
• Tách riêng điều chỉnh trong và điều chỉnh ngoài
• Chuyển điều chỉnh trong thành điều chỉnh ngoài
• Sắp xếp hợp lý công việc điều chỉnh
• Hiệu chỉnh song song hoặc loại bỏ hoàn toàn (chuẩn hóa)

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JIT SYSTEM
6. Single-Minute Exchange of Die- Điều chỉnh nhanh - SMED

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JIT SYSTEM
7. Sản xuất đều đặn
• Giảm biến động sản xuất thông qua dự báo
• San bằng nhu cầu

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JIT SYSTEM
8.Quality Improvement- Cải tiến chất lượng

• Công nhân tự kiểm tra chất lượng

• Sai hỏng = 0

• Không tồn kho an toàn

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JIT SYSTEM
9. Close Vendor Relationships - Quan hệ với nhà cung cấp
• Có 1 mạng lưới nhà cung cấp đáng tin cậy

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JIT SYSTEM
10. Continuous Improvement- Cải tiến liên tục

• Luôn quyết tâm cải tiến, không nên thỏa mãn với hiện trạng

• Hãy Kiểm tra và thử, đừng tin vào sự hoàn hảo

• Hãy tự động não, đừng mua sự cải tiến

• Làm việc trong tinh thần đồng đội

• Phải thừa nhận cải tiến không có giới hạn

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JIT SYSTEM
Các lợi ích của JIT

• Giảm tồn kho

• Tăng chất lượng và năng suất với chi phí thấp

• Nâng cao hiệu quả sử dụng thời gian và không gian

• Tăng tính linh hoạt, đáp ứng kịp thời nhu cầu KH

• Quan hệ tốt hơn với nhà cung cấp

• Đơn giản việc lập kế hoạch và kiểm tra các hoạt động

• Nâng cao hiệu quả sử dụng nguồn nhân lực

• Đa dạng hóa sản phẩm

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