Chapter 12 entitled 'MRP and ERP' describes material requirements planning (MRP), manufacturing resources planning (MRP II) and enterprise resource planning (ERP). MRP is planning and scheduling technique used for batch production of assembled items. | MRP and ERP McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. You should be able to: Describe the conditions under which MRP is most appropriate Describe the inputs, outputs, and nature of MRP processing Explain how requirements in a MPS are translated into material requirements for lower-level items Discuss the benefits and requirements of MRP Explain how an MRP system is useful in capacity requirements planning Outline the potential benefits and some of the difficulties users have encountered with MRP Describe MRPII and its benefits Describe ERP, what it provides, and its hidden costs 12- Student Slides Dependent demand Demand for items that are subassemblies or component parts to be used in the production of finished goods. Dependent demand tends to be sporadic or “lumpy” Large quantities are used at specific points in time with little or no usage at other times 12- Student Slides Material requirements planning (MRP): A . | MRP and ERP McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. You should be able to: Describe the conditions under which MRP is most appropriate Describe the inputs, outputs, and nature of MRP processing Explain how requirements in a MPS are translated into material requirements for lower-level items Discuss the benefits and requirements of MRP Explain how an MRP system is useful in capacity requirements planning Outline the potential benefits and some of the difficulties users have encountered with MRP Describe MRPII and its benefits Describe ERP, what it provides, and its hidden costs 12- Student Slides Dependent demand Demand for items that are subassemblies or component parts to be used in the production of finished goods. Dependent demand tends to be sporadic or “lumpy” Large quantities are used at specific points in time with little or no usage at other times 12- Student Slides Material requirements planning (MRP): A computer-based information system that translates master schedule requirements for end items into time-phased requirements for subassemblies, components, and raw materials. The MRP is designed to answer three questions: What is needed? How much is needed? When is it needed? Student Slides 12- Student Slides 12- MRP processing takes the end item requirements specified by the master schedule and “explodes” them into time-phased requirements for assemblies, parts, and raw materials offset by lead times Student Slides 12- The MRP is based on the product structure tree diagram Requirements are determined level by level, beginning with the end item and working down the tree The timing and quantity of each “parent” becomes the basis for determining the timing and quantity of the “children” items directly below it. The “children” items then become the “parent” items for the next level, and so on Student Slides 12- Student Slides 12- Student Slides 12- Student Slides 12- Enables
