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HR Om11 ch14 GE
HR Om11 ch14 GE
Planning (MRP)
and ERP 14
PowerPoint presentation to accompany
Heizer and Render
Operations Management, Global Edition, Eleventh Edition
Principles of Operations Management, Global Edition, Ninth Edition
© 2014
© 2014
Pearson
Pearson
Education
Education 14 - 1
Outline
► Global Company Profile:
Wheeled Coach
► Dependent Demand
► Dependent Inventory Model
Requirements
► MRP Structure
► MRP Management
5. Describe MRP II
6. Describe closed-loop MRP
7. Describe ERP
© 2014
© 2014
Pearson
Pearson
Education
Education 14 - 6
MRP for Wheeled Coach
© 2014
© 2014
Pearson
Pearson
Education
Education 14 - 7
Dependent Demand
Figure 14.1
© 2014 Pearson Education 14 - 14
The Planning Process
Production Marketing
Capacity Customer Finance
Inventory demand Cash flow
Master production
schedule
Figure 14.1
© 2014 Pearson Education 14 - 15
The Planning Process
Master production
schedule
Change
master
production
schedule?
Material
requirements plan
Schedule and
execute plan
Figure 14.1
© 2014 Pearson Education 14 - 16
Aggregate
Production Plan Figure 14.2
1 B(2) C(3)
B
2 weeks
E
A
2 weeks 1 week
E
2 weeks 1 week
G C
3 weeks
F
1 week
D
| | | | | | | |
1 2 3 4 5 6 7 8
Time in weeks
© 2014 Pearson Education 14 - 29
MRP Structure Figure 14.4
MRP by
BOM Master period report
production schedule
MRP by
date report
Lead times
(Item master file) Planned order
report
Inventory data
Purchase advice
Material
requirement
planning
programs
(computer and Exception reports
Purchasing data software)
Order early or late
or not needed
B C B C
Master schedule
Lead time = 4 for A Lead time = 6 for S for B
Master schedule for A Master schedule for S sold directly
Periods 5 6 7 8 9 10 11 8 9 10 11 12 13 1 2 3
40 50 15 40 20 30 10 10
Periods 1 2 3 4 5 6 7 8
Therefore, these
40+10 15+30
Gross requirements: B 10 40 50 20 are the gross
=50 =45 requirements for B
© 2014 Pearson Education 14 - 40
Net Requirements Plan
The logic of net requirements
Gross + Allocations
requirements
Total requirements
On Scheduled Net
– + = requirements
hand receipts
Available inventory
Figure 14.6
There are
Gross seven35setups
requirements
30 for this
40 0 item
10 in this
40 30 plan
0 30 55
Total ordering cost = 7 x $100 = $700
Scheduled
receipts
Projected on
35 35 0 0 0 0 0 0 0 0 0
hand
Net
0 30 40 0 10 40 30 0 30 55
requirements
Planned order
30 40 10 40 30 30 55
receipts
Planned order
30 40 10 40 30 30 55
releases
Scheduled
receipts
Projected on
35 35 0 40 0 0 70 30 0 0 55
hand
Net
0 30 0 0 10 0 0 55 0
requirements
Planned order
70 80 0 85 0
receipts
Planned order
70 80 85
releases
y ie l d e d a plan
wo u ld h a v e
a g n e r - W hitin 4 55
W l c os t o f $
with a tota
▶ MRP II
▶ Closed-Loop MRP
▶ Capacity Planning
Aggregate Plan
OK?
NO Priority Management Capacity Management
Day 1 2 3 4 5
Orders 10 14 13 10 14
Standard labor-Hours
Standard labor-Hours
12 – 12 –
10 – 10 –
8– 8–
6– 6–
4– 4–
2– 2–
0– 0–
1 2 3 4 5 1 2 3 4 5
Days Days
(a) (b)
Grated
Smoked Blue Cooked Mac &
Buffalo Pepper Chopped
Pulled Cheese Elbow Cheese Milk
Sauce Jack Scallions
Chicken Crumbles Macaroni Base
Cheese
Inventory Bills of
Management Material
MRP
Work
Orders
Purchasing Routings
and and
Lead Times Lead Times
Table 13.6
Supply-Chain Management
Vendor Communication
(schedules, EDI, advanced shipping notice,
e-commerce, etc.)
Accounts
Receivable
General
Ledger
Accounts
Payable
Payroll
Table 13.6