18 Material Requirements Planning

18 Material Requirements Planning - Lesson 18 Material...

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18 - 1 MRP is a computer based information system for ordering, scheduling, and managing dependent demand inventory requirements Lesson 18 Material Requirements Planning (MRP) End Product E(1)
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18 - 2 End Product Independent Versus Dependent Demand Independent Demand - demand at the customer end product level Dependent Demand - demand for items that are subassemblies, component parts or raw materials to be used in the production of end products E(1)
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18 - 3 Independent Demand A B(4) C(2) D(2) E(1) D(3) F(2) Dependent Demand Independent demand is uncertain Dependent demand is certain Independent Versus Dependent Demand
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18 - 4 “ I don’t know how we managed to get along without MRP for as long as we did. Our scheduling has gone from a state of turmoil to relative calm. We have achieved a substantial reduction in inventory size and cost while increasing our customer service. We are more than satisfied with MRP; it allows to plan rather than spend all our time trying to meet one crisis after another. I would strongly recommend that all manufacturing firms adopt MRP or some similar approach”. Positive View Of MRP
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18 - 5 “We had heard so many good things about MRP that we couldn’t wait to get started, but so far, it seems like we’ve just been spinning our wheels. We’re not even close to going online with it, and yet we’ve already exceeded our original time estimates and costs are out of sight. Everyone is discouraged, especially the brass. There is even some talk of just scrapping the whole idea” Negative View Of MRP
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18 - 6 Materials Requirements Planning is a a computer based information system designed to handle ordering and scheduling of dependent demand inventory requirements . It . Takes into account lead times, and . Develops a production plan showing quantity and timing for materials, component parts and subassemblies from the first component to the last Materials Requirement Planning - MRP As you have learned or will learn in your information systems class, information systems are only as good as the input data . Two of the most prevalent reasons for MRP failure are . Lack of planning for implementation . GIGO
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18 - 7 MRP System Inventory Transactions MRP Inputs & Outputs Master Schedule Bill of Materials Inventory File Secondary reports Exception reports Planning reports Performance- control reports Primary reports Changes Order releases Planned-order schedules
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18 - 8 Master Scheduling Process Master scheduling Beginning Inventory Forecast Customer Orders Projected Inventory Master Production Schedule Available To Promise (uncommitt ed inventory) Recall the Master Production Scheduling Process is a procedure for considering inventories, customer orders, & forecasts to produce a projected inventory, master production schedule & ATP.
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18 - 9 The Master Production Schedule (MPS) is a schedule of how much & when to produce independent (customer end product) demand. It shows when the end product is needed but does not show when raw materials, components, subassemblies or parts are needed.
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This note was uploaded on 09/10/2011 for the course ECON 101 taught by Professor Halcrow,b during the Spring '08 term at Antelope Valley College.

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18 Material Requirements Planning - Lesson 18 Material...

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