Download - PPT12 Material Requirement Planning
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The McGraw-Hill Companies, Inc.,
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Major Operations Activities
Strategic capacity
planning
Master ProductionSchedule
Sales and Operations
(aggregate) planning
Material Requirement
Planning
Order Scheduling
S&OP refer to the processof keeping demand andsupply in balance.
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The McGraw-Hill Companies, Inc.,
!ierarchy
Months Jan Feb .
Shirts Productions "#$ "%$ &&'
Week ! " # $ % & '
Shirts R 2$$ *$$ 2$$ 1$$
Shirts ( 1$$ 1$$ 1%$ 1$$
Shirt M ) 1$$ 2$$ 2$$
Aggregate Production plan +or shirts (,orecast - .ustomer orders )
Master Production schedule +or shirts
si/e
MRP
Program
.alculate and schedule all inputs to MPS
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The McGraw-Hill Companies, Inc.,
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0MRP is a computeri/ed in+ormation system to managedependent demand inventory and schedule orders
0 ranslates the master production schedule into
requirements +or all suassemlies3 components3 andra4 materials through the MRP e5plosion
0 6ependent demand drives MRP
Material Requirements Planning
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The McGraw-Hill Companies, Inc.,
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6emand .haracteristics
Top clip (1) Bottom clip (1)
Pivot (1) Spring (1)
Rivets (2)Finished clipboard Pressboard (1)
Clipboard
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8nventorytransactions
*n+entoryre,ords
-ills ofMaterials
-/M0
9ngineeringand process
designs
/thersour,es
of demand
Master Produ,tionS,hedule MPS0
Materialrequirements1lan
MRPe21losion
MRP 8nputs
!"
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6etails ho4 many end items 4ill e produced 4ithin
speci+ied periods o+ time; 8t rea
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Master Production Schedule (MPS)
Jan Feb
1 2 3 ! " # $
Shirts %&
Shirts '
Shirt &
ggregateprodction plans*or Shirts *amil+
MPS for a Family of Shirts
$3 $3
!3 !3
!33 !33 !33 !33
%&3 %&3
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A record o+ all components o+ an item Sho4s the parent=component relationship 4ith production
sequence
he usage quantities are derived +rom engineering and
process design
>ill o+ Materials
,ive common terms
9nd items
8ntermediate items
Suassemlies
Purchased items
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1$
6emand .haracteristics
Top clip (1) Bottom clip (1)
Pivot (1) Spring (1)
Rivets (2)Finished clipboard Pressboard (1)
Clipboard
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Product Structure ree
Clipboard &evel ,&evel ,
&evel 1&evel 1
&evel 2&evel 2Spring
(1)Bottom Clip
(1)Top Clip
(1)Pivot
(1)
Rivets(2)
Clip ss-+(1)
Pressboard(1)
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8nventory Record
8nventory transactions are the asic uilding loc
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8nventory Record
he time=phase in+ormation contained in the inventory
record consists o+@; ross requirements
; Scheduled receipts
; Projected on=hand inventory
; Planned order receipts; Planned order releases
4 5 6
Proje,ted on7handin+entory balan,eat end of 8eek t
*n+entory onhand at end of
8eek t6
S,heduledor 1lanned
re,ei1ts in8eek t
)rossrequirements
in 8eek t
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Material Requirements Planning System
0 >ased on a master production schedule3 a materialrequirements planning system@
; .reates schedules identi+ying the speci+ic parts
and materials required to produce end items
; 6etermines e5act unit numers needed
; 6etermines the dates 4hen orders +or those
materials should e released3 ased on lead times
1
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Planning lead time
,or purchased items planning lead time is the timeallo4ed +or receiving a shipment +rom the supplier
Planning ,actors +or MRP
,or manu+actured the planning lead time consistso+ estimates +or
Setup time
Processing time
Materials handling time et4een operations
Baiting time
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ot Si/ing in MRP Programs
0 ot=+or=lot (*)
0 9conomic order quantity (9OC)
0east total cost (.)
0 east unit cost (D.)
0 Bhich one to useE
;he one that is least costlyF
1:
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Advantages o+ MRP
0 8t processes massive amount o+ in+ormation andpresents in a use+ul and comprehensile +orm to themanagers'
0 8t helps ring order out o+ chaos and reduce the 4or
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Bhen 4ould MRP 4or< 4ellE
0 his serves 4ell as a planning tool and is not too good+or control'
0 MRP 4ill 4or< most e++ectively i+ lead times are nothighly variale and i+ +orecasts o+ +inished= item salesare good enough that a stale master productionschedule can e developed'
0 MRP 4ill +ail i+ capacity is not properly managed'
1"
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Shortcomings o+ MRP
0 MRP is +undamentally driven y the assumption thatall required in+ormation is
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95ample o+ MRP ogic and Product
Structure ree
>(*)
9(1)6(2)
.(2)
,(2)6()
AProduct Structure Tree for Assembly A Lead Times
A 1 day
B 2 days
C 1 day
D 3 days
E 4 days
F 1 day
Total Uit Demad
Day 1! "! A
Day # 2! B $S%ares&
Day ' 1" D $S%ares&
)i+en theproduct structure treefor 9:; and the lead time anddemand information belo8< 1ro+ide a materials requirements
1lan that defines the number of units of ea,h ,om1onent and
8hen they 8ill be needed
)i+en theproduct structure treefor 9:; and the lead time and
demand information belo8< 1ro+ide a materials requirements
1lan that defines the number of units of ea,h ,om1onent and
8hen they 8ill be needed
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LT ( 1 day
Day) 1 2 3 4 " ' * # + 1!
A ,e-uired "!
.rder Placemet "!
First< the number of units of 9:; are s,heduled
ba,k8ards to allo8 for their lead time. So< in the
materials requirement 1lan belo8< 8e ha+e to 1la,e
an order for $3 units of 9:; on the =thday to re,ei+e
them on day 3.
First< the number of units of 9:; are s,heduled
ba,k8ards to allo8 for their lead time. So< in the
materials requirement 1lan belo8< 8e ha+e to 1la,e
an order for $3 units of 9:; on the =thday to re,ei+e
them on day 3.
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>e2t< 8e need to start s,heduling the ,om1onents that make u1
9:;. *n the ,ase of ,om1onent 9-; 8e need # -?s for ea,h :.
Sin,e 8e need $3 :?s< that means !33 -?s. :nd again< 8e ba,k
the s,hedule u1 for the ne,essary ! days of lead time.
>e2t< 8e need to start s,heduling the ,om1onents that make u1
9:;. *n the ,ase of ,om1onent 9-; 8e need # -?s for ea,h :.
Sin,e 8e need $3 :?s< that means !33 -?s. :nd again< 8e ba,k
the s,hedule u1 for the ne,essary ! days of lead time.Day) 1 2 3 4 " ' * # + 1!
A ,e-uired "!
.rder Placemet "!
B ,e-uired 2! 2!!
.rder Placemet 2! 2!!
>(*)
9(1)6(2)
.(2)
,(2)6()
A
Spares H 2
*5%$H2$$
2
2
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2
Day) 1 2 3 4 " ' * # + 1!
A ,e-uired "!
LT(1 .rder Placemet "!B ,e-uired 2! 2!!
LT(2 .rder Placemet 2! 2!!
C ,e-uired 1!!
LT(1 .rder Placemet 1!!
D ,e-uired "" 4!! 3!!
LT(3 .rder Placemet "" 4!! 3!!
E ,e-uired 2! 2!!LT(4 .rder Placemet 2! 2!!
F ,e-uired 2!!
LT(1 .rder Placemet 2!!
>(*)
9(1)6(2)
.(2)
,(2)6()
A
*$ - 1% spares
Part 6@ 6ay 7
Finally< re1eating the 1ro,ess for all ,om1onents< 8e ha+e the
final materials requirements 1lan@
Finally< re1eating the 1ro,ess for all ,om1onents< 8e ha+e the
final materials requirements 1lan@
2