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Materaials Requirement Planning (MRP) : Venkateswara Rao .Korasiga
Materaials Requirement Planning (MRP) : Venkateswara Rao .Korasiga
Materaials Requirement Planning (MRP) : Venkateswara Rao .Korasiga
MASTER SCHEDULE
FOR
END ITEMS
MRP
DETAILED SCHEDULE FOR
RAW MATERIALS
& Dependent demand lumpy COMPONENTS
MRP Systems
Commonly used method in industry to coordinate the production scheduling of end items and their associated sub components. Fords MRP systems is known as CMMS, common manufacturing management system.
Required information to support an MRP system: Master Production Schedule (MPS) Bill of Material (BOM) Inventory Status Records by each part or component Lead times Item master data
C1
C2
C3
Cn
PRODUCTS
P1
P2
P3
PN
MRP Systems
Master Production Schedule (MPS): Example
Product: personal stapler no. 12468 Planned order releases 1 1000 2 1000 3 1000 Week 4 0 5 0 6 1500
Production of 1000 no. 12468 staplers is planned for weeks 1, 2, and 3, followed by no more stapler production until week 6 in which 1500 staplers will be produced.
MRP Systems
Bill of Material (BOM): A listing of all components required for each enditem. Example personal stapler no. 12468. This stapler is assembled from 3 sub-assemblies.
Base Assembly
Top Jaw
Bottom Jaw
Top Assembly
Pin
Spring Assembly
Base Plate
Top
Pin
MRP Systems
Inventory Status Records: Dynamic information about the current level of inventory for all components designated in the BOM of each end item. In practice, accurate inventory levels are difficult to maintain. Example Component Inventory Status Top Assembly 1212 Spring Assembly 1150 Locator Plate 146 Slide Pin 558
MRP Systems
Lead Times: the time from when an order to replenish a part is initiated until the part becomes available for use. Lead times in practice are variable, but for the MPS, a fixed value is applied, usually the mean plus some safety factor. Example Component Lead Time (weeks) Top Assembly 1 Spring Assembly 1 Locator Plate 2 Slide Pin 1
MRP Systems
Item Master Data - unique data for each part or component. This data includes: unique part number annual demand nominal order quantity cost scrap rate production lead time resource requirements pointers to engineering drawings (if produced internally) vendor information (if purchased) etc
MRP Systems
Requirements explosion and order release plan: Example order release plan for personal stapler no. 12468
Week 0 Top Assembly: Lead time = 1 Gross Requirements Scheduled Receipts Level1212 One (Projected) On-hand Net Requirements Planned Order Releases 1 1000 2 1000 3 1000 4 5 6 1500
MRP Systems
Requirements explosion and order release plan: Example order release plan for personal stapler no. 12468
Week 0 1 2 1000 3 1000 4 5 6 1500 Spring Assembly: Lead time = 1 Gross Requirements 1000 Scheduled Receipts Level One Planning (Projected) On-hand 1150 150 Net Requirements Planned Order Releases 850
Spring Assembly
850 1000 1000 1500 1500
MRP Systems
Requirements explosion and order release plan: Ex. order release plan for personal stapler no. 12468, an order for 750 locator plates is expected to arrive early in week 1
Week 0 1 2 3 4 5 6 Locator Plate : Lead time = 2 * TheRequirements 892 units released in week 1 will till week 3 unless some Gross 788 not arrive 1000 1500 Scheduled Receipts 750 expedited actions occur (Projected) On-hand 146 108 Net Requirements 892 1500 Level Two Planning Spring Assembly Planned Order Releases 892* 1500
MRP Systems
Requirements explosion and order release plan: Ex. order release plan for personal stapler no. 12468, a batch of 650 slide pins is just about complete.
Week 0 Slide Pins: Lead time = 1 Gross Requirements Scheduled Receipts (Projected) On-hand Net Requirements Planned Order Releases 1 850 650 358 642 2 1000 3 4 5 1500 6
558
1500
MRP Systems
Recall the requirements explosion and order release plan from Ex. order release plan for personal stapler no. 12468
Week 0 Top Assembly: Lead time = 1 Gross Requirements Scheduled Receipts (Projected) On-hand How might you allow for Net Requirements variability? Planned Order Releases 1 1000 2 1000 3 1000 4 5 6 1500
1212 losses 212and or demand variability and lead-time quality 788 788 1000 1000 1500
1500
MRP Systems
Scrap losses recall on the item master data record, quality yield is a field which has been populated using historical data or a guess. If yield for the stapler top assembly is say 90%, then more units should be planned for release than are required for the planned end-items according to: Ex. If there is a 90% yield for for top assembly then:
order release net req. yield
0 Top Assembly: Lead time = 1 Gross Requirements Scheduled Receipts (Projected) On-hand Net Requirements Planned Order Releases Yeild = 90%
1 1000
2 1000
3 1000
6 1500
1212
MRP Systems
Safety Stock and Safety Lead Time to protect against demand variability and lead time variablity, a safety factor may be applied. Numerous application a safety factors exist, the simplest may be multiply by some percentage. Ex. If a 15% safety factor has been identified for top assembly then:
0 Top Assembly: Lead time = 1 Gross Requirements Scheduled Receipts (Projected) On-hand Net Requirements Planned Order Releases Safety facotr = 15%
1 1000
2 1000
3 1000
6 1500
1212
MRP Systems
Rough-Cut Capacity Planning:
When developing an MPS, one must consider if the schedule is feasible based on the capacity of workcenters within the plant.
This is performed by determining the number of hours impact on all workcenters required to produce the end item, and identified by time bucket.
MRP Systems
Rough-Cut Capacity Planning:
For example, suppose for every unit of end item A that is planned for production, the following workcenters are impacted:
C
OP#1 WC200 .10 hr/unit Purchased WC300 workcenter 200 .15 hr/unit
C
OP#2 WC300 .15 hr/unit
Part C has a 2-week lead time, and uses both and 300. Part D WC200 F .20 hr/unit consists of part E which requires WC 300 and part F (a purchased component).
-5 -4 -3 -2 -1 0
MRP Systems
Rough-Cut Capacity Planning: An aggregated, time phased profile for end item A and another end item B is shown below.
End Item A Period Workcenter 100 200 300 0 0.05 0.2 0.15 0.1 0.15 -1 -2 0 0.05
0.2 0.3
0.2 0.15
MRP Systems
Rough-Cut Capacity Planning: Given a master production schedule for the facility:
And the
requirements 150
-1 20 18.75
0 32.5 41.25
3 7.5 50 67.5
4 7.5 70 52.5
5 10 30 45
6 7.5
MRP Systems
Master Production Schedule (MPS): Example
Product: personal stapler no. 12468 Planned order releases Production of 1000
no. 1, followed by no more stapler production until week 6 in which 1500 staplers will be produced.
MRP Systems
Bill of Material (BOM): A listing of all components required for each enditem. Example personal stapler no. 12468. This stapler is assembled from 3 sub-assemblies.
Base Assembly
Top Jaw
Bottom Jaw
Top Assembly
Pin
Spring Assembly
Base Plate
Top
Pin
MRP Systems
Inventory Status Records: Dynamic information about the current level of inventory for all components designated in the BOM of each end item. In practice, accurate inventory levels are difficult to maintain. Example Component Inventory Status Top Assembly 1212 Spring Assembly 1150 Locator Plate 146 Slide Pin 558
MRP Systems
Lead Times: the time from when an order to replenish a part is initiated until the part becomes available for use. Lead times in practice are variable, but for the MPS, a fixed value is applied, usually the mean plus some safety factor. Example Component Lead Time (weeks) Top Assembly 1 Spring Assembly 1 Locator Plate 2 Slide Pin 1
MRP Systems
Item Master Data - unique data for each part or component. This data includes: unique part number annual demand nominal order quantity cost scrap rate production lead time resource requirements pointers to engineering drawings (if produced internally) vendor information (if purchased) etc
MRP Systems
Requirements explosion and order release plan: Example order release plan for personal stapler no. 12468
Week 0 Top Assembly: Lead time = 1 Gross Requirements Scheduled Receipts Level1212 One (Projected) On-hand Net Requirements Planned Order Releases 1 1000 2 1000 3 1000 4 5 6 1500
MRP Systems
Requirements explosion and order release plan: Example order release plan for personal stapler no. 12468
Week 0 1 2 1000 3 1000 4 5 6 1500 Spring Assembly: Lead time = 1 Gross Requirements 1000 Scheduled Receipts Level One Planning (Projected) On-hand 1150 150 Net Requirements Planned Order Releases 850
Spring Assembly
850 1000 1000 1500 1500
MRP Systems
Requirements explosion and order release plan: Ex. order release plan for personal stapler no. 12468, an order for 750 locator plates is expected to arrive early in week 1
Week 0 1 2 3 4 5 6 Locator Plate : Lead time = 2 * TheRequirements 892 units released in week 1 will till week 3 unless some Gross 788 not arrive 1000 1500 Scheduled Receipts 750 expedited actions occur (Projected) On-hand 146 108 Net Requirements 892 1500 Level Two Planning Spring Assembly Planned Order Releases 892* 1500
MRP Systems
Requirements explosion and order release plan: Ex. order release plan for personal stapler no. 12468, a batch of 650 slide pins is just about complete.
Week 0 Slide Pins: Lead time = 1 Gross Requirements Scheduled Receipts (Projected) On-hand Net Requirements Planned Order Releases 1 850 650 358 642 2 1000 3 4 5 1500 6
558
1500
MRP Systems
Recall the requirements explosion and order release plan from Ex. order release plan for personal stapler no. 12468
Week 0 Top Assembly: Lead time = 1 Gross Requirements Scheduled Receipts (Projected) On-hand How might you allow for Net Requirements variability? Planned Order Releases 1 1000 2 1000 3 1000 4 5 6 1500
1212 losses 212and or demand variability and lead-time quality 788 788 1000 1000 1500
1500
MRP Systems
Scrap losses recall on the item master data record, quality yield is a field which has been populated using historical data or a guess. If yield for the stapler top assembly is say 90%, then more units should be planned for release than are required for the planned end-items according to: Ex. If there is a 90% yield for for top assembly then:
order release net req. yield
0 Top Assembly: Lead time = 1 Gross Requirements Scheduled Receipts (Projected) On-hand Net Requirements Planned Order Releases Yeild = 90%
1 1000
2 1000
3 1000
6 1500
1212
MRP Systems
Safety Stock and Safety Lead Time to protect against demand variability and lead time variablity, a safety factor may be applied. Numerous application a safety factors exist, the simplest may be multiply by some percentage. Ex. If a 15% safety factor has been identified for top assembly then:
0 Top Assembly: Lead time = 1 Gross Requirements Scheduled Receipts (Projected) On-hand Net Requirements Planned Order Releases Safety facotr = 15%
1 1000
2 1000
3 1000
6 1500
1212
MRP Systems
Rough-Cut Capacity Planning:
When developing an MPS, one must consider if the schedule is feasible based on the capacity of workcenters within the plant.
This is performed by determining the number of hours impact on all workcenters required to produce the end item, and identified by time bucket.
MRP Systems
Rough-Cut Capacity Planning:
For example, suppose for every unit of end item A that is planned for production, the following workcenters are impacted:
C
OP#1 WC200 .10 hr/unit Purchased WC300 workcenter 200 .15 hr/unit
C
OP#2 WC300 .15 hr/unit
Part C has a 2-week lead time, and uses both and 300. Part D WC200 F .20 hr/unit consists of part E which requires WC 300 and part F (a purchased component).
-5 -4 -3 -2 -1 0
MRP Systems
Rough-Cut Capacity Planning: An aggregated, time phased profile for end item A and another end item B is shown below.
End Item A Period Workcenter 100 200 300 0 0.05 0.2 0.15 0.1 0.15 -1 -2 0 0.05
0.2 0.3
0.2 0.15
MRP Systems
Rough-Cut Capacity Planning: Given a master production schedule for the facility:
And the
requirements 150
-1 20 18.75
0 32.5 41.25
3 7.5 50 67.5
4 7.5 70 52.5
5 10 30 45
6 7.5
MRP Systems
Rough-Cut Capacity Planning: Given this rough cut capacity plan, and the knowledge that you operate a single shift 10 hours a day, and 6 days a week, do you foresee a problem? If so, how might you adjust?
-1 20 18.75
0 32.5 41.25
3 7.5 50 67.5
4 7.5 70 52.5
5 10 30 45
6 7.5
MRP Systems
Capacity Requirements Planning (CRP): Similar to rough cut capacity planning, but includes details such as current inventory levels and the impact of lot-sizing decisions.
100 125
End Item A B
2 25
Period 3 25 75
4 50 100
5 200
6 150
MRP Systems
Capacity Requirements Planning: From the net MPS, the workstation loading levels by part:
Period WC100-A WC200-A WC300-A WC100-B WC200-B WC300-B 0 1.25 0 0 0 0 0 1 1.25 5 3.75 3.75 0 0 2 2.5 7.5 7.5 5 15 22.5 3 3 22.5 11.25 0 35 41.25 4 12 0 45 37.5 7.5 20 5 10 0 20 30 0 30 6 0 0 0 0 30 22.5
MRP Systems
Master Production Schedule (MPS): Planned production quantities for enditems in each time period of the planning horizon. Planning horizon length of time over which to plan the production schedule. This length of time must exceed the cumulative lead time to replenish an end-item through all production stages.
Time period (or time bucket) smallest unit of time in which end-item production is schedule. In practice, time buckets of one week are typical used.
EVOLUTION OF MRP
Improved computational efficiency of computers
Unrealistic M/c schedules, ignoring plant capacities Not only plans priorities but provides feedback to executing the priority plan
MRP II
Manufacturing Resource Planning
(Links functions -Capacity planning -Inventory management -Shop floor control -MRP)
Links up the closed loop MRP system with the financial systems of the company
Customer orders
Sales forecasts
Engg. changes
Inventory transactions
MRP PROCESSOR
OUT PUT REPORTS Capacity vs Gross & Net requirements Load report report Shop floor Planning report Production Order Status & exceptions report
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