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MRP II – Planning to Execution

MRP II – Planning to Execution

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  • 1. Close Loop MRP MRP II – Planning to Execution Anand Subramaniam
  • 2.
    • “ We used to have a lot of questions to which there were no answers. Now with the computer we have lots of answers to which we haven’t thought up the questions.”
      • - Peter Ustinov
  • 3. Highlights
    • Long Range Planning
    • Intermediate Range Planning
    • Short Term Planning
  • 4. Planning Levels
  • 5. Long Range Planning
  • 6. Long Range Planning
    • This involves three functions:
      • Resource Planning
      • Aggregate Planning
      • Forecasting
    • Time horizon from six months to five years
    • Frequency for re-planning varies from once per month, to once per year, with two to four times per year being typical
    • The degree of detail is at the part family level
  • 7. Forecasting
    • To predict future demands
    • Long-range fore­casting is important to determining the capacity, tooling and resource requirements
    • Short-term forecasting converts a long-range forecast of part families to short-term fore­casts of individual end items
    • Both kinds of forecasts are input to-the intermediate-level function of demand management
  • 8. Resource Planning
    • Process of determining capacity requirements over the long term
    • Decisions such as whether to build a new plant or to expand an existing one are part of the capacity planning function
    • An important output of resource planning is projected available capacity over the long-term planning horizon, which is fed as a parameter to the aggregate planning function
  • 9. Aggregate planning
    • Used to determine levels of production, staffing, inventory, overtime etc over the long term
    • The level of detail is typically by month and for part families
    • To determine whether to build up inventories in anticipation of increased demand or "chase" the demand by varying capacity using overtime, or do some combination of both
    • Optimisation techniques such as linear programming are often used to assist the aggregate planning process
  • 10. Intermediate Range Planning
  • 11. Intermediate Planning
    • Demand Management
    • Rough-cut Capacity Planning (RCCP)
    • Master Production Scheduling (MPS)
    • Material Requirements Planning (MRP)
    • Capacity Requirements Planning (CRP)
  • 12. Demand Management
    • The process of converting the long-term aggregate forecast to a detailed forecast while tracking individual customer orders
    • The output of the demand management is a set of actual customer orders plus a forecast of anticipated orders
    • As time progresses, the anticipated orders should be "consumed" by actual orders
  • 13. ATP
    • Demand management is accomplished with a technique known as available to promise (ATP)
    • This allows the planner to know which orders on the MPS are already committed and which are available to promise to new customers
    • ATP combined with a capacity-feasible MPS, facilitates negotiation of realistic due dates
  • 14. ATP (Contd.)
    • If more orders than expected are received, so that quoted lead times become excessive, additional capacity (e.g., overtime) might be required
    • On the other hand, if fewer than expected orders arrive, sales might want to offer discounts or some other incentives to increase demand
    • In either case, the forecast and possibly the aggregate plan should be revised
  • 15. Master Production Schedule (MPS)
    • It takes the demand forecast along with the firm orders from the demand management and using aggregate capacity limits, generates an anticipated build schedule at the parent level
    • These are the "demands" (i.e., part number, quantity, and due date) used by MRP
    • It contains an order quantity in each time bucket for every parent demand along with planning date
  • 16. Rough-cut capacity planning (RCCP)
    • Used to provide a quick capacity check of a few critical resources to ensure the feasibility of the MPS
    • It is more detailed than aggregate planning, RCCP is less detailed than capacity requirements planning (CRP), which is another tool for performing capacity checks after the MRP processing
    • RCCP makes use of a bill of resources for each parent item on the MPS
  • 17. Capacity requirements planning (CRP)
    • Provides a more detailed capacity check on MRP-generated production plans than RCCP
    • Necessary inputs include all planned order releases, existing WIP positions, routing data, as well as capacity and lead times for all process centers
  • 18. Short Term Planning
  • 19. Short Term Plans
    • The plans generated in the long and intermediate are implemented via job release, job dispatching and input / output control
  • 20. Job Release / Work Orders
    • Converts planned order releases to scheduled receipts
    • One of the important functions of job release is allocation when there is an insufficient quantity on hand
    • By allocating parts to one job or another, the job release function can rationalise any conflicts
  • 21. Job Dispatching
    • Develop a rule for arranging the queue in front of each workstation that will maintain due date integrity while keeping machine utilisation high and manufacturing times low
  • 22. Input / Output Control
    • Monitor the WIP level in each process center
    • If the WIP goes above or below a certain level, where the current release rate is too high / too low, then it will reduce / increase it
    • If WIP stays between these control levels, the release rate is correct for the current conditions
  • 23.
    • “ The secret of success is to know something nobody else knows.”
      • - Aristotle Onassis
  • 24.
    • Good Luck
    • http://www.linkedin.com/in/anandsubramaniam