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22 Cards in this Set
- Front
- Back
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What is material requirement planning (MRP)?
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Computer-based information system that
translates master schedule requirements for end items into time-phased requirements for subassemblies, components components and raw , and raw materials Provides time scheduling information specifying when each of the materials, parts, and components should be ordered or produced Driven by dependent deman |
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What are the MRP objectives?
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Improve customer
service Reduce inventory investment Improve coordinating production and thus, plant operating efficienc |
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Describe Master Production Scheduling (MPS)
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Time-phased plan specifying how many
and when the firm plans to build each end item |
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Demand for products
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Firm orders from known customers
Example: generated by sales personnel, or from inter department transactions Carry promised delivery dates No forecasting involved in these order Forecast demand Independent-demand orders generated through forecasting technique The two demands are combined and become the input for the MP |
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What are the MRP inputs?
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Master Production Schedule (MPS)
Bill of material Inventory record |
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What is the bill of materials?
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The bill of materials (BOM) file is a listing
of all of the raw materials, parts, subassemblies, and assemblies needed to produce one unit of a product. The BOM file is often called the product structure tree or product tree It shows how a product is put together |
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What are inventory records and examples?
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Includes information on the status of each
item by time period examples: Gross requirements Scheduled receipts Amount on hand Lead times Lot size |
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MRP processing
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Gross requirements
Schedule receipts Projected on hand Net requirements Planned-order receipts Planned-order release |
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MPR processing
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Gross requirements
Total expected demand Scheduled receipts Open orders scheduled to arrive Planned on hand Expected inventory on hand at the beginning of each time period Net requirements Actual amount needed in each time period Planned-order receipts Quantity expected to be received at the beginning of a period Offset by lead time Planned-order releases Planned amount to order in each time period |
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What are the four step sof MPR processing
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1) explode
2) net 3) offset 4) lot size |
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The Explosion Process
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Takes the quantity in the master
production schedule, along information in the bill of materials, and simulates the disassembly of that quantity into requisite number of constituent parts and materials. It is the calculation of gross requirements for the components at the next level down the product structure |
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The Offsetting Process
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Determines the timing of order releases,
using given information on planned lead times and working backwards from the dates at which net requirements occur. Planned lead times are allowance for vendor response time (in the case of purchased orders) and allowances for run time, setup time, move time and queueing (in the case of shop orders). |
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The Lot Sizing Process
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Determines the batch quantities that
will be purchased or produced in order to meet net requirements. Once the lot size is set, it becomes clear which net requirements are to be covered |
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list MRP Outputs
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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 |
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examples of MRP Secondary Reports
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Performance-control reports
Planning reports Exception report |
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what does Lot Sizing in MRP Systems deal with
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Deals with how to balance
the setup or order costs and holding costs associated with meeting the net requirements generated by the MRP planning process |
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Capacity Planning
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- Capacity requirements planning: The process
of determining short-range capacity requirements. - Load reports: Department or work center reports that compare known and expected future capacity requirements with projected capacity availability. - Time fences: Series of time intervals during which order changes are allowed or restricted |
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Examples of MRP in Services
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Food catering service
End item => catered food Dependent demand => ingredients for each recipe, i.e. bill of materials Hotel renovation Activities and materials “exploded” into component parts for cost estimation and schedulin |
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Benefits of MRP
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Low levels of in-process inventories
Ability to track material requirements Ability to evaluate capacity requirements Means of allocating production tim |
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ERP
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Enterprise resource planning (ERP):
Next step in an evolution that began with MPR and evolved into MRPII Integration of financial, manufacturing, and human resources on a single computer system Considerations High initial cost High cost to maintain Future upgrades Training |
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Requirements of MRP
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Computer and necessary software
Accurate and up-to-date Master schedules Bills of materials Inventory records Integrity of data |
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MRP II
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Expanded MRP with emphasis placed on
integration Financial planning Marketing Engineering Purchasing Manufacturing |
