material requirements planning & erp ppt @ bec doms
DESCRIPTION
Material requirements planning & erp ppt @ bec domsTRANSCRIPT
1
Material Requirements Planning & ERP
2
Outline GLOBAL COMPANY PROFILE: COLLINS
INDUSTRIES DEPENDENT INVENTORY MODEL REQUIREMENTS
Master Production Schedule Bills of Materials Accurate Inventory records Purchase Orders Outstanding Lead Times for Each Component
MRP STRUCTURE
3
Outline - Continued MRP MANAGEMENT
MRP Dynamics MRP and JIT
LOT-SIZING TECHNIQUES EXTENSIONS IN MRP
Closed-Loop MRP Capacity Planning Material Requirements Planning II (MRP II)
MRP IN SERVICES
4
Outline - Continued
DISTRIBUTION RESOURCE PLANNING (DRP)
ENTERPRISE RESOURCE PLANNING (ERP) Advantages and Disadvantages of ERP
System ERP in the Service Sector
5
Learning Objectives
When you complete this chapter, you should be able to :
Identify or Define: Planning bills and kits Phantom bills Low-level coding Lot sizing
6
Learning Objectives - Continued
When you complete this chapter, you should be able to :
Describe or Explain: Material requirements planning Distribution requirements planning Enterprise resource planning How ERP works Advantages and disadvantages of ERP
systems
7
Collins Industries
Largest manufacturer of ambulances in the world
International competitor
12 major ambulance designs 18,000 different inventory items
6,000 manufactured parts
12,000 purchased parts
MRP: IBM’s MAPICS
8
Collins Industries
Collins requires: Material plan must meet both the requirements of the
master schedule and the capabilities of the production facility
Plan must be executed as designed Effective “time-phased” deliveries, consignments, and
constant review of purchase methods Maintenance of record integrity
9
Inventory
Process stage
Demand Type
Number & Value Other
Raw Material WIP
Finished Goods
Independent Dependent
A Items B Items C Items
Maintenance Operating
Inventory Classifications
10
Item Materials WithIndependent Demand
Materials WithDependent Demand
DemandSource Company Customers Parent Items
MaterialType Finished Goods WIP & Raw Materials
Method ofEstimatingDemand
Forecast & BookedCustomer Orders
Calculated
PlanningMethod EOQ & ROP MRP
Dependent versus Independent Demand
11
Requirements for Effective Use of Dependent Demand Inventory Models
Effective use of dependent demand inventory models requires that the operations manager
know the: master production schedule specifications or bills-of-material inventory availability purchase orders outstanding lead times
12
Inputs to the Production Plan
Aggregate Production Plan
MarketingCustomerDemand
EngineeringDesign
Completion
ManagementReturn onInvestment
Capital
HumanResourcesManpowerPlanning
ProcurementSupplier
Performance
FinanceCash Flow
ProductionCapacityInventory
13
The Planning Process
Change master production schedule?
Execute material plans
Execute capacity plans
Detail capacity plan
Material requirements plan
Master production schedule
Aggregate production plan
Change requirements?
Change capacity?
RealisticNo
Yes
Change production plan?
Is capacity plan being
met?
Is execution meeting the plan?
14
Aggregate Production Plan
1,2001,500
Aggregate Production Plan (shows the total quantity of amplifiers
10030075 watt amplifier
450450500500150 watt amplifier
100100100100240 watt amplifier
Master Production Schedule (Shows the specific type and quantity of amplifier to be produced
87654321Weeks
FebruaryJanuaryMonths
15
Typical Focus of the Master Production Schedule
Make to Order
(Process Focus)
Assemble to Order or Forecast
(Repetitive)
Stock to Forecast
(Product Focus)Schedule finished
product
Steel, Beer, Bread Light bulbs, Paper
Print shopMachine shop
Fine dining restaurant
Examples:
Number of end items
Number of inputs
Typical focus of the master production
schedule Schedule orders
Schedule modules
Motorcycles, autos, TVs, fast-food
restaurant
16
List of components & quantities needed to make product
Provides product structure (tree) Parents: Items above given level Children: Items below given level
Shows low-level coding Lowest level in structure item occurs Top level is 0; next level is 1 etc.
Bill-of-Material
17
Product Structure for “Awesome” A
18
Modular bills Modules are final components used to make assemble-to-
stock end items
Planning bills Used to assign artificial parent Reduces number of items scheduled
Phantom bills Used for subassemblies that exist temporarily
Special Bills-of-Material
19
Bicycle(1)P/N 1000
Handle Bars (1)P/N 1001
Frame Assembly (1)P/N 1002
Wheels (2)P/N 1003
Frame (1)P/N 1004
Bill-of-Material Product Structure Tree
20
Time-Phased Product Structure
1 2 3 4 5 6 7 8
3 weeksF
2 weeksE
A
1 week1 week
CG2 weeks
D1 week
E2 weeks
Start production of D
D1 week
B
2 weeks to produce
Must have D and E completed here so production can begin
on B
21
1 2 3 4 5
Gross Requirements 2 20 25 15
Scheduled Receipts 5 30
Available 25 23 33 33 8
Net Requirements 7
Planned Order Receipts 7
Planned Order Releases 7
1 2 3 4 5
Gross Requirements 2 20 25 15
Scheduled Receipts 5 30
Available 25 23 33 33 8
Net Requirements 7
Planned Order Receipts 7
Planned Order Releases 7
Manufacturing computer information system Determines quantity & timing of dependent
demand items
© 1995 Corel Corp.
Material Requirements Planning (MRP)
22
Computer system Mainly discrete products Accurate bill-of-material Accurate inventory status
99% inventory accuracy
Stable lead times© 1984-1994 T/Maker Co.
MRP Requirements
23
Increased customer satisfaction due to meeting delivery schedules
Faster response to market changes Improved labor & equipment utilization Better inventory planning & scheduling Reduced inventory levels without reduced
customer service
MRP Benefits
24
Structure of the MRP SystemMaster Production
ScheduleBOM
Lead Times
(Item Master File)
Inventory Data
Purchasing data
MRP planning programs
(computer and software)
MRP by Period Report
MRP by date report
Planned order report
Purchase advice
Exception report
Exception report
25
Gross Material Requirements Plan for 50 “Awesome A” Speaker Kits
26
Forecast &Firm Orders
MaterialRequirements
Planning
AggregateProductionPlanning
ResourceAvailability
MasterProductionScheduling
ShopFloor
Schedules
CapacityRequirements
PlanningRealistic?
No, modify CRP, MRP, or MPS
Yes
MRP and The Production Planning Process
28
Shows items to be produced End item, customer order, module
Derived from aggregate plan
Master Production Schedule
Item/Week Oct 3 Oct 10 Oct 17 Oct 24
Drills 300 200 310 300
Saws 300 450 310 330
Example
29
Derivation of Master Schedule
Therefore, these are the gross
requirements for B
Periods
10 101 2 3
Master schedule for S sold directly
40 50 15
A
CB
5 6 7 8 9 10 11
Lead time = 4 for AMaster schedule for A
40 20 30
S
B C
8 9 10 1211 13
Lead time = 6 for SMaster schedule for S
10 40+10 = 50 40 50 20 15+30
= 45
1 2 3 4 5 6 7 8Periods
Gross requirements: B
30
MRP Dynamics Supports “replanning”
Problem with system “nervousness”
“Time fence” - allows a segment of the master schedule to be designated as “not to be rescheduled”
“Pegging” - tracing upward in the bill-of-materials from the component to the parent item
That a manager can react to changes, doesn’t mean he/she should
31
MRP and JIT
MRP - a planning and scheduling technique with fixed lead times
JIT - a way to move material expeditiously Integrating the two:
Small bucket approach and back flushing Balanced flow approach
32
Lot-Sizing Techniques
Lot-for-lot Economic Order Quantity Part Period Balancing Wagner-Whitin Algorithm
33
MRP Lot-Sizing Problem: Lot-for-Lot Techniques
34
MRP Lot-Sizing Problem: EOQ Technique
35
MRP Lot-Sizing Problem: PPB Technique
36
Extensions of MRP
Closed loop MRP Capacity planning - load reports MRP II - Material Resource Planning Enterprise Resource Planning
37
Closed Loop MRP
38
Extensions of MRPCapacity Planning
Tactics for smoothing the load and minimizing the impact of changed lead time include: Overlapping - reduces the lead time, entails
sending pieces to the second operation before the entire lot has completed the first operation
Operations splitting - sends the lot to two different machines for the same operation
Lot splitting - breaking up the order and running part of it ahead of the schedule
39
Initial Resource Requirements/Smoothed Resource
Requirements
40
Extensions to MRPEnterprise Resource Planning
MRP II with ties to customers and suppliers
41
MRP and ERP Information Flows, Integrated with Other Systems
42
MRP in Services
Can be used when demand for service or service items is directly related to or derived from demand for other services restaurant - rolls required for each meal hospitals - implements for surgery etc.
43
Product Structure, Bill of Materials, Bill of Labor for Veal Picante
44
Distribution Resource Planning
DRP requires: Gross requirements, which are the same as expected
demand or sales forecasts Minimum levels of inventory to meet customer service
levels Accurate lead times Definition of the distribution structure