Material Requirement Planning (MRP) - PowerPoint PPT Presentation

Loading...

PPT – Material Requirement Planning (MRP) PowerPoint presentation | free to download - id: 429f55-NmQ3Y



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

Material Requirement Planning (MRP)

Description:

Material Requirement Planning (MRP) Contributors to MRP Joseph Orlicky George Plossl Oliver Wight American Production and Inventory Control Society What is MRP? – PowerPoint PPT presentation

Number of Views:1693
Avg rating:3.0/5.0
Slides: 27
Provided by: Unk93
Category:

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: Material Requirement Planning (MRP)


1
Material Requirement Planning (MRP)
2
Contributors to MRP
  • Joseph Orlicky
  • George Plossl
  • Oliver Wight
  • American Production and Inventory Control Society

3
What is MRP?
  • Computerized Inventory Control
  • Production Planning System
  • Management Information System
  • Manufacturing Control System

4
When to use MRP
  • Job Shop Production
  • Complex Products
  • Assemble-to-Order Environments
  • Discrete and Dependent Demand Items

5
What can MRP do?
  • Reduce Inventory Levels
  • Reduce Component Shortages
  • Improve Shipping Performance
  • Improve Customer Service
  • Improve Productivity
  • Simplified and Accurate Scheduling
  • Reduce Purchasing Cost
  • Improve Production Schedules
  • Reduce Manufacturing Cost
  • Reduce Lead Times
  • Less Scrap and Rework
  • Higher Production Quality

6
What can MRP do?
  • Improve Communication
  • Improve Plant Efficiency
  • Reduce Freight Cost
  • Reduction in Excess Inventory
  • Reduce Overtime
  • Improve Supply Schedules
  • Improve Calculation of Material Requirements
  • Improve Competitive Position

7
Three Basic Steps of MRP
  • Identifying Requirements
  • Running MRP Creating the Suggestions
  • Firming the Suggestions

8
Step 1 Identifying the Requirements
  • Quantity on Hand
  • Quantity on Open Purchase Order
  • Quantity in/or Planned for Manufacturing
  • Quantity Committed to Existing Orders
  • Quantity Forecasted

9
Step 1 Important InformationMRP is..
  • Company Sensitive
  • Location Sensitive
  • Date Sensitive

10
Step 2 Running MRP Creating the Suggestions
  • Critical Items
  • Expedite Items
  • Delay Items

11
Step 3 Firming the Suggestions
  • Manufacturing Orders
  • Purchasing Orders
  • Various Reports

12
Overview of the MRP System
Product Structure File
Master Production Schedule
Inventory Master File
Material Requirements Planning
Manufacturing Orders
Purchase Orders
Various Reports
13
MRP Inputs
  • Product Structure File
  • Master Production Schedule
  • Inventory Master File

14
Product Structure File
  • Bill of Materials

15
Master Production Schedule
  • Schedule of Finished Products
  • Represents Production, not Demand
  • Combination of Customer Orders and Demand
    Forecasts
  • What Needs to be Produced

16
Inventory Master File
  • On-Hand Quantities
  • On-Order Quantities
  • Lot Sizes
  • Safety Stock
  • Lead Time
  • Past-Usage Figures

17
MRP Process
  • Schedules the Production of all items using an
    MRP Matrix

MRP Matrix
Item Low-Level Code Lot Size Lead Time PD 1 2 3 4 5
Gross Requirements
Scheduled Receipts
Projected on Hand
Net Requirements
Planned Order Receipts
Planned Order Releases
18
Terms Defined
  • Item name or number for the item being
    scheduled
  • Low-Level Code the lowest level of the item on
    the product structure file
  • Lot Size order multiples of quantity
  • Lead Time the time from when an order is placed
    to when it is received
  • PD Past Due Time Bucket, orders behind schedule

19
Terms Defined
  • Gross Requirements demand for an item by time
    period
  • Scheduled Receipts material already ordered
  • Projected on Hand expected ending inventory
  • Net Requirements number of items to be provided
    and when
  • Planned Order Receipts net requirements
    adjusted for lot size
  • Planned Order Releases planned order receipts
    offset for lead times

20
Example of the MRP Process
Item A Low-Level Code 1 Lot Size 25 Lead Time 1 PD 1 2 3 4 5
Gross Requirements 10 15 25 25 30
Scheduled Receipts 25
Projected on Hand 20
Net Requirements
Planned Order Receipts
Planned Order Releases
21
Example of the MRP Process
Item A Low-Level Code 1 Lot Size 25 min Lead Time 1 PD 1 2 3 4 5
Gross Requirements 10 15 25 25 30
Scheduled Receipts 25
Projected on Hand 20 10 20 20 20 15
Net Requirements 5 5 10
Planned Order Receipts 25 25 25
Planned Order Releases 25 25 25 30 25
22
MRP Outputs
  • Manufacturing Orders
  • Purchasing Orders
  • Various Reports

23
Hubbell Lighting Case
  • Manufactures Industrial Lighting Products
  • Good-Quality Products
  • Poor at Meeting Due Dates
  • Work is Specialized for Each Customer
  • Job Shop Environment
  • Complex Products

24
Hubbell Lighting Case
  • Before MRP Implementation
  • Less than 75 of orders completed on time
  • After MRP Implementation
  • 97 of orders completed on time
  • 2 of orders completed with 1 to 2 days after due
    date

25
Summary of MRP
  • MRP is a..
  • Computerized Inventory Control
  • Production Planning System
  • that..
  • Schedules Component Items as Needed
  • which will..
  • Track Inventory and..
  • Help you in many other aspects of business

26
References
  • Russell, Roberta S., and Bernard W. Taylor III.
    Operations Management. 3rd Edition Prentice
    Hall, 2000
  • Grubbstrom, Robert W. Material Requirements
    Planning and Manufacturing Resource Planning.
    03/12/2002. http//www.itbp.com/opsmanagement/iebm
    /material_requirements.htm.
  • Vormittag Associates, Inc. System 2000 MRP.
    03/12/2002. http//www.vaihome.com/s2000mrp.htm.
  • Inventory Solutions. What is MRP?. 03/12/2002.
    http//www.inventorysolutions.org/def_mrp.htm.
About PowerShow.com