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Title: MRP%20and%20ERP


1
Chapter 15
  • MRP and ERP

2
MRP
  • Material requirements planning (MRP)
    Computer-based information system for ordering
    and scheduling of dependent demand inventories

3
Dependant Demand
  • Dependent demand Demand for items that are
    subassemblies or component parts to be used in
    production of finished goods.

4
Dependent vs Independent Demand
5
(No Transcript)
6
MPR Inputs
  • Master Production Schedule
  • Time-phased plan specifying timing and quantity
    of production for each end item.
  • Material Requirement Planning Process

Product Structure Tree
Lead Times
7
Master Schedule
  • Master schedule One of three primary inputs in
    MRP states which end items are to be produced,
    when these are needed, and in what quantities.
  • Cumulative lead time The sum of the lead times
    that sequential phases of a process require, from
    ordering of parts or raw materials to completion
    of final assembly.

8
Planning Horizon
Figure 14-4
9
Bill-of-Materials
  • Bill of materials One of the three primary
    inputs of MRP a listing of all of the raw
    materials, parts, subassemblies, and assemblies
    needed to produce one unit of a product.
  • Product structure tree Visual depiction of the
    requirements in a bill of materials, where all
    components are listed by levels.

10
Product Structure Tree
Figure 15-5
11
MRP Processing
  • Gross requirements
  • Schedule receipts
  • Projected on hand
  • Net requirements
  • Planned-order receipts
  • Planned-order releases

12
Typical MRP Matrix
13
MRP Outputs
  • Planned orders - schedule indicating the amount
    and timing of future orders.
  • Order releases - Authorization for the execution
    of planned orders.
  • Changes - revisions of due dates or order
    quantities, or cancellations of orders.

14
MRP Secondary Reports
  • Performance-control reports
  • Planning reports
  • Exception reports

15
Other Considerations
  • Safety Stock
  • Lot sizing
  • Lot-for-lot ordering
  • Economic order quantity
  • Fixed-period ordering
  • Part-period model

16
MRP Planning
17
MRP in Services
  • Food catering service
  • End item gt catered food
  • Dependent demand gt ingredients for each recipe,
    i.e. bill of materials
  • Hotel renovation
  • Activities and materials exploded into
    component parts

18
Benefits of MRP
  • Low levels of in-process inventories
  • Ability to track material requirements
  • Ability to evaluate capacity requirements
  • Means of allocating production time

19
Requirements of MRP
  • Computer and necessary software
  • Accurate and up-to-date
  • Master schedules
  • Bills of materials
  • Inventory records
  • Integrity of data

20
MRP Problem 1
  • Suppose you are to produce 100 units of product A
    in period 8 with the product structure shown
    below. If no stock is on hand or on order,
    determine when to release orders for each
    component and the size of each order. Product A
    with a lead time of 4 periods is made from
    components B and C with lead times of 3 and 2
    periods, respectively C is made from components
    D and E with a lead time of 1 period each.

21
MRP Problem 1
  • Product Structure

A
B (1)
C (2)
D (1)
E (2)
22
MRP Problem 1 - Solution
    Master Production
Schedule (MPS)
   
23
MRP Problem 1 - Solution (cont.)
  • The following can be calculated in this problem
    since there is zero available-on-hand for item A
    and all of its components.
  • End Item A Requirements 100
  • Component B Requirements 100
  • Component C Requirements 200
  • Component D Requirements 200
  • Component E Requirements 400

24
MRP Problem 1 Solution (cont.)
25
MRP Problem 1 Solution (cont.)
26
MRP Problem 1 Solution (cont.)
27
MRP Problem 1 Solution (cont.)
28
MRP Problem 1 Solution (cont.)
29
MRP Problem 2
  • In the MRP table below, indicate the available on
    hand requirements, the planned order receipts,
    and the planned order releases. The lead-time is
    two periods. Available on hand are 20 units.
    Consider a) the lot size is the same as the net
    requirements Lot-For-Lot (LFL) or lot size 1
    and b) lot size equals 15.

30
MRP Problem 2
31
MRP Problem 2 (a)- Solution
32
MRP Problem 2 (a)- Solution
33
MRP Problem 2 (a)- Solution
34
MRP Problem 2 (a)- Solution
35
MRP Problem 2 (a)- Solution
36
MRP Problem 2 (a)- Solution
37
MRP Problem 2 (a)- Solution
38
MRP Problem 2 (a)- Solution
39
MRP Problem 2 (a)- Solution
40
MRP Problem 2 (a)- Solution
41
MRP Problem 2 (b) - Solution
42
MRP Problem 2 (b) - Solution
43
MRP Problem 2 (b) - Solution
44
MRP Problem 2 (b) - Solution
45
MRP Problem 2 (b) - Solution
46
MRP Problem 2 (b) - Solution
47
MRP Problem 2 (b) - Solution
48
MRP Problem 2 (b) - Solution
49
MRP Problem 2 (b) - Solution
50
MRP Problem 3
  • A company produces two products Product A and
    Product Q. The owner has received an order from
    a customer of 103 units of product A for week 8
    and 200 units of product Q for week 7. The
    product structures and other pertinent
    information are given below in the table as well
    as on top of each MRP table. Develop a materials
    requirements plan that will provide the customer
    the two products.

51
MRP Problem 3
52
MRP Problem 3 - Solution
53
MRP Problem 3 Solution (cont.)
54
MRP Problem 3 Solution (cont.)
55
MRP Problem 3 Solution (cont.)
56
MRP Problem 3 Solution (cont.)
57
MRP Problem 3 Solution (cont.)
58
MRP Problem 3 Solution (cont.)
59
MRP Problem 3 Solution (cont.)
60
MRP Problem 3 Solution (cont.)
61
MRP Problem 3 Solution (cont.)
62
MRP Problem 3 Solution (cont.)
63
MRP Problem 3 Solution (cont.)
64
MRP Problem 3 Solution (cont.)
65
MRP Problem 3 Solution (cont.)
66
MRP Problem 3 Solution (cont.)
67
MRP Problem 3 Solution (cont.)
68
MRP Problem 3 Solution (cont.)
69
MRP Problem 3 Solution (cont.)
70
MRP Problem 3 Solution (cont.)
71
MRP Problem 3 Solution (cont.)
72
MRP Problem 3 Solution (cont.)
73
MRP Problem 3 Solution (cont.)
74
MRP Problem 3 Solution (cont.)
75
MRP Problem 3 Solution (cont.)
76
MRP II
  • Expanded MRP with and emphasis placed on
    integration
  • Financial planning
  • Marketing
  • Engineering
  • Purchasing
  • Manufacturing

77
MRP II
78
ERP
  • Enterprise resource planning (ERP) An expanded
    effort to integrate standardized record-keeping
    that will permit information sharing throughout
    the organization

79
MRP II and ERP Systems
  • Expanded MRP with and emphasis placed on
    integration
  • Financial planning
  • Marketing
  • Engineering
  • Purchasing
  • Manufacturing
  • Other Capabilities
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