ppt12 material requirement planning

7/18/2019 PPT12 Material Requirement Planning

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2/23

The McGraw-Hill Companies, Inc.,

2

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.


3/23


!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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*

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


5/23


%

6emand .haracteristics

Top clip (1) Bottom clip (1)

Pivot (1) Spring (1)

Rivets (2)Finished clipboard Pressboard (1)

Clipboard


6/23


7

8nventorytransactions

*n+entoryre,ords

-ills ofMaterials

-/M0

9ngineeringand process

designs

/thersour,es

of demand

Master Produ,tionS,hedule MPS0

Materialrequirements1lan

MRPe21losion

MRP 8nputs

!"


7/23The McGraw-Hill Companies, Inc.,

:

6etails ho4 many end items 4ill e produced 4ithin

speci+ied periods o+ time; 8t rea



#

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



"

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



1$

6emand .haracteristics

Top clip (1) Bottom clip (1)

Pivot (1) Spring (1)

Rivets (2)Finished clipboard Pressboard (1)

Clipboard



11

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)



12

8nventory Record

8nventory transactions are the asic uilding loc



1

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



1*

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



1%

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

17



17

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:



1:

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



1#

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"



1"

Shortcomings o+ MRP

0 MRP is +undamentally driven y the assumption thatall required in+ormation is



2$

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

21



21

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

ppt12 material requirement planning

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