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Lecture Manufacturing planning and control for supply chain management (6/e) - Chapter 6: Material requirements planning

This chapter presents the following content: What is Material Requirements Planning (MRP)? MRP and manufacturing planning & control, MRP record processing, MRP technical issues, using the MRP system, MRP system dynamics. | Manufacturing Planning and Control MPC 6th Edition Chapter 6 Material Requirements Planning (MRP) Material Requirements Planning (MRP) has the managerial objective of providing “the right part at the right time” to meet the schedules for completed products. MRP provides a formal plan for each part number–raw materials, components, and finished products. Agenda Resource planning Sales and operations planning Demand management Master production scheduling Detailed capacity planning Detailed material planning Material and capacity plans Shop-floor systems Supplier systems Enterprise Resource Planning (ERP) System Front End Engine Back End Manufacturing Planning and Control System Time-phased requirement (MRP) records Routing file Bills of material Inventory status data Basic MRP Record Basic MRP Record On hand Period 1 2 3 4 5 Gross requirements 10 40 10 Scheduled receipts 50 Projected available balance 4 54 44 44 4 44 Planned order releases 50 Lead time = 1 period Lot size = 50 A . | Manufacturing Planning and Control MPC 6th Edition Chapter 6 Material Requirements Planning (MRP) Material Requirements Planning (MRP) has the managerial objective of providing “the right part at the right time” to meet the schedules for completed products. MRP provides a formal plan for each part number–raw materials, components, and finished products. Agenda Resource planning Sales and operations planning Demand management Master production scheduling Detailed capacity planning Detailed material planning Material and capacity plans Shop-floor systems Supplier systems Enterprise Resource Planning (ERP) System Front End Engine Back End Manufacturing Planning and Control System Time-phased requirement (MRP) records Routing file Bills of material Inventory status data Basic MRP Record Basic MRP Record On hand Period 1 2 3 4 5 Gross requirements 10 40 10 Scheduled receipts 50 Projected available balance 4 54 44 44 4 44 Planned order releases 50 Lead time = 1 period Lot size = 50 A previously released order due in period 1 A unreleased order due in period 5 Requirements from all sources Bill of Materials The BOM shows the components and sub-assemblies required to produce a product Product Structure Diagram Sub-assemblies are represented by separate levels Finished product is located at the top, components below Indented Bill of Materials Finished item is not indented Components and sub-assemblies are indented relative to their order of usage Level 1 components Level 1 sub-assemblies Level 2 sub-assemblies Explosion Explosion–the process of translating product requirements into component part requirements Considers existing inventories and scheduled receipts Calculating the quantities of all components needed to satisfy requirements for any given part. Continued until all parts have been considered, leading to exact requirements for all purchased and/or raw material parts Gross and Net Requirements Gross requirements represent the total planned usage for the part Net .