manufacturing resource planning-ii - copy

8/7/2019 Manufacturing Resource Planning-II - Copy

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History of MRP-II

y In 1960-80 manufacturing industry face a problem of material

ordering ,purchasing, delivery on basis of and labour timeneeded and customer demand.

y So EOQ and Inventory models where developed.

y Then the problem was of resource utilization for productionsystem based on sales and forecast.

y Solved by calculating raw material requirement and lead time,with some model which is MRP-1

y Future integration of MRP-1 with feedback came to be knownas closed loop MRP-1.

y When close loop MRP-I with computer based materialpurchasing and scheduling with other dep. is known as MRP-II.

y Then MRP-II integration leads to SCM and ERP.


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MRP-II Evolution

EOQ

Closed Loop

MRP

MRP II

ERP

Planning Materials

Schedule MaterialsIncorporate Feedback

MRP

Schedule & Purchase

Materials Coordinate w/

Mfg Resources

Inventory manag.


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MRP-II General Concept.

y MRP-II aims at coordination of entire manufacturingproduction process like material, finance and human resource.

y The goal of MRP-II is to provide all necessary data to all

managers as product flows through production line.

y

Definition given by APICS-:``Effective planning of allmanufacturing resources in a company.

y Its an incremental information integration business process

strategies that are implemented using hardware and modular

software applications linked to a central database that stores

and delivers business data and information.

y MRP-II is not a software but technique or tool.

y But software are available for inhouse and customize for

implementation of MRP-II.


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Basic structure of MRP-II


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Working of MRP-IIy MRP-II begins with MRP-1 and MPS.y MRP-1 allows inputs from sales, marketing to MRP-II. This

gives forecast of material.

y MRP-II makes MPS & breaks down the product as

preproduction line process.MRP allows for raw materialpurchase.

y MRP-II then develops a detail schedule for manufacturing as

per M/C tool and manpower capacity as material arrives.

y All the cost study related to product like M/C tool cost, labor

material cost and allied cost is given to finance dept. to process

it.


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Inputs to MRP-IIy Business plan

y Aggregate planning.

y Bill of material.

y Master production schedule.

y

Capacity planning, and Actual capacity.y Inventories and orders.

y Purchasing management

y MRP-I

y Shop flour control (sfc)y Standard coasting.(COST CONTROL).


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Aggregate production plan:-

y It is a planning for next 6-18 months in which production,

inventory and capacity are taken due care for planning .

y By varying inventories and manpower we can achieve monthly

targets. Cost study is also important so that our planning is feasible.

y It uses forecast,capacity,inventory files as input .


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MASTER PRODUCTION SCHEDULE.(MPS)

y This is a macro level document which set a top level

priorities for what will be manufactured and when,

looking at the material and production cycle.

y

It takes in account the capacity and forecast to prepareit.

y It can be as long as aggregate production plan.


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MATERIAL REQUIREMENT PLANNING.y Material needed for each workcentre inorder to meet the

production schedule.

y MRP is heart of a manufacturing control system.

y It uses information from BOM,forecast,inventory,purchase order.y MRP determines total gross requirements and compares against

current inventory and schedule.


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CAPACITY REQUIREMENT PLANNING.y MRP does not consider capacity and often plans

production which is not possible.

y So CRP takes care of it and plans order from MRP

and release as per capacity to full fill the schedule.

y CRP consider many factors while planning like man

power,m/c tool , internal material handling time etc.

y

CRP compares the i/o and o/p for a work centre andcompare it with standard and control the workcentre.


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SHOP FLOOR CONTROL

yThe sfc monitors all activities and communicates status informationon manufacturing orders and workcentre back to respective

managers.

y SFC determines what orders are released ,when and their routing,

when operation to be started and finished.

y It also maintain all paper work of order and reacts to changes in

schedule if priority changes.

y It also interacts with CRP component and provide i/o and o/p data

for capacity planning purpose.


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PURCHASE ORDER AND RECEIVIVNG

y In order to reduce cost and to keep inventory at a minimum, this componentaccounts for delivery lead times, projected inventory and cost trends.

y MRP-I provides as input about inventory use and generates planned requisitions

for purchased parts.

y It mainly emphasis on reduction of inventory and more flow of parts.

y Purchase order and receiving's is an efficient time saving tool for creating andmaintaining purchase records and ensuring the quality accuracy and promptness

of delivers of purchased materials.

COSTINGy It is an effort to maintain profitability and to meet goals with some control .

y Depending on manufacturing product, various types of costing may required and

cost accounting control should accommodate other factors.

y The major costing elements include material labour and variable overheads.


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Implementation of MRP-II

y Give basic knowledge of MRP-II to workers.

y Evaluation of BOM and routing process.

y Establish and implement a programme to bring all BOM and

routing documents to actual practice with an accuracy of99%.

y Document the cycle time for each step of routing to establish

actual capacity of plant.

y

Establish a relationship on and how all departmentscoordinate in your organization.

y Investigate available MRP-II package as per company need.

y Apply on a pilot location.

y

When results are positive spread it all over the company.


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Benefits of MRP-IIy Better control over inventories.

y Improved scheduling.

y Better priority planning .

y For engineering and design

Improved design control

Better quality control

Accurate inventory record

y For finance and coasting

Improved cash flow through quicker deliveries.

Cash control decision can be taken.


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COMPARISION BETWEEN MRP,MRP-II AND ERP

Consider MRP-I and MRP-II as tools and not softwarepackages.


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Conclusiony MRP is a planning activity while MRP-II is a scheduling activity.y MRP is a push type of system while MRP-II is a pull type of

system.

y MRP-II is a management tool and not a software.

y MRP-II when run on paper based method in an industry itproduces a lot of mistakes so computers are used to avoid it.

y MRP-II works with data base management as one input.

y If new component comes then MRP-II will not work properly

because data is not available to produce a detail format of MRP-II.y For a dynamic system a MRP-II with CIM model is a best

combination.


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THANKYOU.

Any questions.

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