material requirment planning-om
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MATERIALREQUIRMENT
PLANNING
PRESENTED TO PROF. R. MUKUNDAN
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Name Roll No
Wasim Dalvi 12
Dimple Karkera 21
Saima Khan 27
Abdul Basith Shaikh 43
Praful Uberoi 59
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DEFINITIONO Material requirement planning is a
technique for determining the quantity and
timing for the acquisition of dependentdemand items needed to satisfy master
production schedule requirements.
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OBJECTIVESO Inventory reduction
O Reduction in manufacturing and delivery
lead time
O Realistic delivery commitments
O Increased efficiency
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WHAT CAN MRP DO?O ReduceInventory
Levels
O Reduce Component
ortagesO Improve ipping
erformance
O Improve Customerervice
O Improve roductivityO implifiedand
ccurate c eduling
O Reduceurc asingCost
O Improve roduction
c edulesO Reduce Manufacturing
Cost
O Reduce Lead Times
O Less crapand
ReworkO Higer roduction
Quality
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WHAT CAN MRP DO?O Improve
Communication
O Improve lantfficiency
O Reduce reigtCost
O
Reduction inxcess Inventory
O Reduce OvertimeO Improve Supply
Sc edulesO Improve
CalculationofMaterialRequirements
O
ImproveCompetitiveosition
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HOWITWORKSINPUTS
MaterialRequirement
Planning
Master
ProductionSchedule
Bill ofMaterial InventoryStatus File
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Master Production Schedule
O A series of time phased quantities for each
item that a company produces
O Developed from customer orders or from
forecast of demand
O Determines specific component requirement
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Inventory Status FileO Gives complete and up to date information
on the on hand quantities, gross
requirement, scheduled receipts andplanned order releases
O Includes PlanningInformation such as lot
sizes, lead time etc.
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Bill of MaterialO Identifies how each end product is
manufactured
O Specifies subcomponents, their sequenceand their end quantity
O Information is obtained from product designdocuments, work flow analysis & otherstandard manufacturing information.
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HOWITWORKSOUTPUT
Material Requirement
lanning
Order Release
Requirements(Ordersto be
laced)Order Rescheduling
lannedOrders(Future)
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ADVANTAGESO Helps in production planning and
scheduling.
O Minimize inventory level and associated
carrying cost
O
Keeps a track on material requirements
O Determines the most economical lot size for
orders
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O Computes appropriate level of safety stock
O Helps in determining various process time &
total production time of the product
O Helps in planning future capacity needs
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DISADVANTAGESO MRP relies on accurate input information
O Requires up to date record
O Costly to implement
O Resistance from employees
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HUBBELL LIGHTING CASEO Manufactures Industrial Lighting Products
O Good-Quality Products
O Poor at Meeting Due Dates
O Work is Specialized for Each Customer
O Job Shop Environment
O Complex Products
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HUBBELL LIGHTING CASEBeforeMRP
Implementation
O Less than % of
orders completedon
time
After MRP
Implementation
O 9 % oforders
completedontime
O 2% oforders
completedwith 1 to2 days after duedate
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SUMMARYMRP is a..
O Computerized Inventory Control
O Production Planning Systemthat..
O Schedules Component Items as Needed
which will..
O Track Inventory and..O Help you in many other aspects of business
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