Your SlideShare is downloading. ×
Chapter 14 MRP to ERP.ppt
Chapter 14 MRP to ERP.ppt
Chapter 14 MRP to ERP.ppt
Chapter 14 MRP to ERP.ppt
Chapter 14 MRP to ERP.ppt
Chapter 14 MRP to ERP.ppt
Chapter 14 MRP to ERP.ppt
Chapter 14 MRP to ERP.ppt
Chapter 14 MRP to ERP.ppt
Chapter 14 MRP to ERP.ppt
Chapter 14 MRP to ERP.ppt
Chapter 14 MRP to ERP.ppt
Chapter 14 MRP to ERP.ppt
Chapter 14 MRP to ERP.ppt
Chapter 14 MRP to ERP.ppt
Chapter 14 MRP to ERP.ppt
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Chapter 14 MRP to ERP.ppt

10,884

Published on

0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
10,884
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
648
Comments
0
Likes
2
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Chapter 14 – MRP to ERP Independent vs. dependent demand, MRP inputs and processing, Closed-loop MRP, MRP II, ERP
  • 2. Traditional I/C Problems
    • Reorder point ( when to order)
      • Assumes known, linear demand (sawtooth)
      • Assumes rough knowledge of lead time
      • Uses safety stock (or safety time) as buffer
      • Each item planned independently
    • EOQ ( how much to order)
      • Focuses on mechanics of formula
      • Assumes linear (constant) usage
      • Always results in inventory
  • 3. MRP
    • Material Requirements Planning ( MRP )
      • “ Father” of MRP: Joseph Orlicky (???? - ????)
      • Dependent vs. independent demand concept
    • Other requirements
      • Manufacturing Bill of Materials (BOM)
      • Accurate, well-managed Master Production Schedule (MPS) to drive MRP
      • Computer software to “explode” BOMs
      • Computer hardware speed and data capacity
  • 4. Key MRP Inputs
    • Master Production Schedule (MPS)
      • Well managed “Build Plan”
    • Bill of Materials (or “recipes”)
      • Parent/child relationships
      • Single level vs. multi-level
      • Structured for manufacturing
    • On hand inventory (available to use)
    • Material on order (from “supplier”)
  • 5. Key MRP Inputs
    • Planning factors
      • Lead time
      • Lot sizing algorithm or rule
      • Optional adjustments
        • Safety stock
        • Safety time
        • Yield
        • Shrinkage
        • etc.
  • 6. MRP Processing
    • Answers both questions
      • When to order
      • How much to order
    • Proceeds one level at a time (level-by-level)
    • “Nets” and plans action only when lowest level in any BOM is reached
  • 7. Lot Sizing Algorithms
    • Lot for lot
      • Seeks to balance supply and demand
    • Fixed order quantity
      • May have minimums, maximums, multiples
    • Economic Order Quantity (EOQ)
      • Variations are Least Unit Cost, Least Total Cost, Part Period Balancing
    • Period Order Quantity
    • Fixed Period Requirements
    • Wagner-Whitin
  • 8. MRP Summary - 1
    • Big “number-cruncher”
    • Follows rules using built-in logic and tables
    • Predicts shortages
    • Gross requirements derived from planned order releases of parent items
    • Processes level-by-level
    • Nets requirements and plans for an item at lowest level of use in any BOM
  • 9. MRP Summary - 2
    • First suggests pull-ins , push-outs , cancellations
    • Then creates planned orders (not released)
    • Provides action and/or exception messages
    • High-speed computers now mean process in minutes rather than hours
    • Planner needs to evaluate results before acting
  • 10. Problems with MRP
    • Computer model
      • Decisions may be based on inaccurate data
    • Inventory-building features have crept in
      • Safety stock
      • Safety time
      • EOQ
    • Represents a “ push ” system
  • 11. Resource Planning Systems
    • MRP
    • Closed loop MRP
    • MRP II
    • ERP
    • SCM
    • Next emphasis > E-commerce
  • 12. Closed Loop MRP and MRP II
    • Oliver Wight (???? – 1983)
      • “Sold” concepts to American management
    • Closed Loop MRP
      • Feedback any changes in due dates and quantities
      • Must have accurate due dates
    • Manufacturing Resource Planning (MRP II)
      • Integrate Long Range, Intermediate Range, Short Range, and Real-time planning
  • 13. ERP and SCM
    • Enterprise Resource Planning (ERP)
      • Coined by Gartner Group
      • Extends integrated planning to Customer Service, Forecasting, Quality, Human Resources, Accounting, Project Management
    • Supply Chain Management (SCM)
      • Extends planning to other organizations
      • Tightly couples suppliers and customers
  • 14. ERP Software Vendors - 2001
    • Enterprise Resource Planning (ERP)
      • SAP
      • Oracle
      • Baan
      • PeopleSoft
      • J.D. Edwards
  • 15. ERP Software Vendors - 2005
    • Enterprise Resource Planning (ERP)
      • SAP
      • Oracle
        • PeopleSoft
          • J.D. Edwards
      • Baan (financial and legal problems followed by acquisition)
  • 16. ERP Software Vendors - 2008
    • Enterprise Resource Planning (ERP)
      • SAP
      • Oracle
      • Infor Global Solutions (SSA ERP - formerly Baan)
      • The Sage Group

×