Chapter14 - CHAPTER 14: MRP AND ERP Teaching Notes When...

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CHAPTER 14: MRP AND ERP Teaching Notes When covering the material the following points should be emphasized: Dependent demand item needs are generated from higher level item needs of which they are a part. The dependent demand needs tend to be lumpy and not dispersed uniformly. Dependent demand item needs are calculated from higher level item needs of which they are a part. MRP creates schedules identifying the parts and materials required to be purchased or manufactured, time of the order release as well as the size of the order or production quantity. MRP keeps track of inventory levels and serves as a link between inventory, purchasing and production. MRP inputs are: a. Master Production Schedule b. Bill of Materials c. Inventory Records Master Production Schedule is the driving force and the control mechanism of the MRP system because it specifies the quantity required of each end item or key assembly by time period. The theme of MRP is producing or purchasing the right materials at the right time and having them available in the right places. The MRP system uses backward scheduling. It uses low-level-coding and starts at the end item level and explodes requirements level-by-level. MRP provides feedback about delayed or cancelled orders, changes in quantities and due dates of open and future orders. MRP nervousness occurs as a result of the high frequency of updating the MRP system and the amount and timing of changes, cancellations, additions, delays in order/manufacturing quantities of an MRP system. If an MRP system is updated too frequently, the system becomes unstable and inefficient. On the other hand, if the system is not updated frequently enough, the system becomes inflexible. The trade-off between stability and flexibility can be balanced with the use of time fences. Time fence is a time period between current date and some time into the future where the schedule is frozen and no changes are allowed in the master production schedule. The shorter the time fence the more flexible and nervous the system is and the longer the time fence the more stable and inflexible the system is. ERP constitutes the most general level of planning, followed by MRP II and MRP, while shop floor scheduling and control involves the most detailed planning. I have found the following approach to work quite well in terms of developing student understanding of MRP: 1. Emphasize the difference between independent and dependent demand, even though it repeats material covered in the previous chapter. Operations Management, 9/e 106
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2. Present an overview of MRP. Students find visual aids very helpful. Walk them through Figures 2, 3, 4, 5, 8, and 9. 3.
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This note was uploaded on 04/21/2011 for the course MGT 02 taught by Professor Gad during the Spring '11 term at Tanta University.

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Chapter14 - CHAPTER 14: MRP AND ERP Teaching Notes When...

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