CP-OM-13-BB - IDS 302 - Chapter 13: RESOURCE MANAGEMENT C....

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C. Probett/Spring 2009 13-1 IDS 302 - Chapter 13: RESOURCE MANAGEMENT
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C. Probett/Spring 2009 13-2 Learning Objectives Describe the conditions under which MRP is most appropriate Describe the inputs, outputs, and nature of MRP processing Explain how requirements in a master production schedule 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 Describe ERP and its strategy considerations
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C. Probett/Spring 2009 13-3 Resource Management Resource Management deals with the planning, execution, and control of all the resources that are used to produce goods or provide services in a value chain Typical objectives of resource management are to: Maximize profits and customer satisfaction Minimize costs Maximize benefits to stakeholders Resources include materials, equipment, facilities, information, technical knowledge and skills, and of course, people
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C. Probett/Spring 2009 13-4 Materials Requirements Planning (MRP) Materials Requirements Planning (MRP) is a forward-looking, demand-based approach for planning the production of manufactured goods and ordering materials and components to minimize unnecessary inventories and reduce costs The output of an MRP system is a schedule for obtaining raw materials and purchased parts, a detailed schedule for manufacturing and controlling inventories, and financial information that drives cash flow, budget, and financial needs
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C. Probett/Spring 2009 13-5 Three Major Concepts of MRP Systems Dependent demand is demand that is directly related to the demand of other SKUs and can be calculated without needing to be forecasted. Demand for materials needed to produce finished goods is dependent on the number of finished goods planned Time phasing : all dependent demand requirements do not need to be ordered at the same time, but rather are time-phased as necessary Lot sizing is the process of determining the appropriate amount and timing of ordering to reduce costs
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C. Probett/Spring 2009 13-6 Independent and Dependent Demands Independent demand – finished goods, items that are ready to be sold (i.e., a computer) Dependent demand – components of finished products (i.e., parts that make up the computer) Independent Demand (demand is uncertain) A B(4) C(2) D(2) E(1) D(3) F(2) Dependent Demand (demand is certain)
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C. Probett/Spring 2009 13-7 Independent vs Dependent Demand Time Time Time Time Demand Stable demand “Lumpy” demand Amount on hand Safety stock Independent Demand Dependent Demand
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C. Probett/Spring 2009 13-8 MRP Inputs MRP Processing MRP Outputs Master schedule Bill of materials Inventory records MRP computer programs Changes Order releases Planned-order schedules Exception reports Planning reports Performance- control reports Inventory transaction Primary reports Secondary reports Overview of MRP
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C. Probett/Spring 2009
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This note was uploaded on 10/19/2009 for the course IDS IDS302 taught by Professor Rainer during the Spring '09 term at Institute of Business Administration.

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CP-OM-13-BB - IDS 302 - Chapter 13: RESOURCE MANAGEMENT C....

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