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Chap016.ppt Materials Requirements Planning
Chap016.ppt Materials Requirements Planning
Chapter 16
McGraw-Hill/Irwin
Chapter 16 Outline
Definition of MRP Systems MRP versus Order-Point Systems MRP Example MRP Elements Operating an MRP System The Successful MRP System
16-2
Introduction to MRP
Used to manage dependent demand items
Raw materials and purchased parts Work in process (WIP)
Driven by the master schedule (which is driven by S&OP). End items exploded into all components using bill of materials (BOM) Schedule offset based on lead times Is the heart of a larger ERP system
16-3
Types of MRP:
Type I. An inventory control system (MRP) Type II. Manufacturing Resource Planning system (MRPII) Type III. Enterprise Resource Planning (ERP) system
16-4
Priorities
Order with the right due date Keep the due date valid
Capacity
A complete load An accurate (valid) load An adequate time span for visibility of future load
16-5
Rough-cut capacity planning Inventory Records Inv. Transactions Shop Orders Capacity planning Shop-floor control
BOM
Purchase Orders
Vendors
Raw Materials
Operations
Product
16-6
TR 4-6
16-7
MRP Elements
Inputs
1. Master Schedule 2. Bill of Materials (BOM) 3. Inventory Records
MRP Inputs
1. Master schedule
BOM)
1. Parts & subassemblies contained in product 2. Sequence of operations
3. Inventory master file 1. Item master information 2. Balances & ordering information
16-9
1. Master Schedule
Quantities derived from S&OP production plan (product groups) [input] Drives MRP process with a schedule of finished products (actual items by week) [output] Quantities may consist of a combination of customer orders & demand forecasts Quantities represent what needs to be produced, not what can be produced (infinite capacity planning)
16-10
Short Rail
Leg
Long Rail
16-11
Leg Assembly (1) 1 week Short Rails (2) Long Rails (2) 1 week 1 week Legs (4) 1 week
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Indented BOM
Level Code 0 1 2 2 2 1 Component Table (end-item) Leg assembly (1) Short rails (2) Long rails (2) Legs (4) Top(1)
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16-14
A LT=3
B LT=2
Level (LLC)=0
D(2) LT=2
D(3) LT=2
Level (LLC)=1
Inventory Position
Item On Hand A B C D 10 5 140 200 Scheduled Receipts 0 0 0 250, period 2 Lot Size 1 1 150 250 MPS 100, period 8 200, period 6 ----16-16
10
10
10
10
10
10
10
10
195
16-17
Origin of Requirements
At Level Zero: gross requirements come from the master production schedule (MPS) Below level zero: gross requirements come from planned order releases for the next level above. Net requirements are gross requirements plus scheduled receipts minus inventory onhand
16-18
140
140
140
140
140
20
20
20
PD
2 250 450
200
200
185
185
185
250
250
16-19
16-20
16-21
Summary
Definition of MRP Systems MRP versus Order-Point Systems MRP Example MRP Elements Operating an MRP System The Successful MRP System
16-24
16-25