Mrp 2 Manufact Resou Plannin


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  • Mrp 2 Manufact Resou Plannin

    1. 1. Manufacturing Resource Planning (MRP 2)
    2. 2. Historical Perspective Mrp 1 – material requirements planning MRP II – Manufacturing Resource Planning ERP- Enterprise Resource Planning
    3. 3. MRP 2 <ul><li>Definition: </li></ul><ul><li> It is the basis of Enterprise Resource Planning (ERP).MRP 2 and ERP are connected with manufacturing aspects of the expanded model. </li></ul>
    4. 4. MRP II -- Manufacturing Resource Planning <ul><li>“ A method for the effective planning of all resources of a manufacturing company” (APICS def.) </li></ul><ul><ul><li>Financial accounting incorporated </li></ul></ul><ul><ul><li>Sales </li></ul></ul><ul><ul><li>Operations Planning </li></ul></ul><ul><ul><li>Simulate capacity requirements of different possible Master Production Schedules </li></ul></ul>
    5. 5. ERP Sales <ul><li>Worldwide sales of top 10 vendors </li></ul><ul><ul><li>1995 $2.8 B </li></ul></ul><ul><ul><li>1996 $4.2 B </li></ul></ul><ul><ul><li>1997 $5.8 B $3.2 B SAP </li></ul></ul><ul><li>Fortune survey: 44% reported spending at least 4 times as much on implementation as on software </li></ul>
    6. 6. 3 Reasons for ERP <ul><li>Legacy systems outdated and need replacing anyway </li></ul><ul><li>Desire for greater communication between locations </li></ul><ul><li>Reconfigure business to take advantage of current and future communications and computing breakthroughs </li></ul>
    7. 7. 1605 Snow Shovel 1605 Snow Shovel 048 Scoop-shaft connector 13122 Top Handle Assy 314 scoop assembly 118 Shaft (wood) 062 Nail (4) 14127 Rivet (4)
    8. 8. 314 scoop assembly 314 scoop assembly 14127 Rivet (6) 019 Blade (steel) 2142 Scoop (aluminum)
    9. 9. 13122 Top Handle Assembly 1118 Top handle Coupling (steel) 11495 Welded Top handle bracket Assembly 13122 Top Handle Assembly 457 Top handle (wood) 129 Top Handle Bracket (steel) 082 Nail (2)
    10. 10. BOM Explosion <ul><li>Process of translating net requirements into components part requirements </li></ul><ul><ul><li>Take into account existing inventories </li></ul></ul><ul><ul><li>Consider also scheduled receipts </li></ul></ul>
    11. 11. BOM Explosion Example <ul><li>Need to make 100 shovels </li></ul><ul><li>We are responsible for handle assemblies. </li></ul>
    12. 12. Timing of Production <ul><li>This tells us how many of each we need </li></ul><ul><ul><li>Doesn’t tell when to start </li></ul></ul><ul><ul><li>Start as soon as possible? </li></ul></ul><ul><ul><li>Dependent events (oh no, not that!) </li></ul></ul><ul><ul><li>Front schedule Cutting approach </li></ul></ul><ul><ul><li>Back schedule </li></ul></ul>
    13. 13. Other considerations <ul><li>Safety stock if uncertainty in demand or supply quantity </li></ul><ul><ul><li>Don’t let available go down to 0 </li></ul></ul><ul><li>Safety LT if uncertainty in arrival time of supply </li></ul><ul><ul><li>Place order earlier than necessary </li></ul></ul><ul><li>Order quantities </li></ul><ul><ul><li>EOQ, Lot-For-Lot, Periodic Order quantity, others </li></ul></ul>
    14. 14. Assumptions <ul><li>All requirements must be available at start of period </li></ul><ul><li>All future requirements must be met, and can’t be backordered </li></ul><ul><li>System operated on periodic basis (e.g. weekly) </li></ul><ul><li>Requirements properly offset for LTs </li></ul><ul><li>Parts used uniformly through a period </li></ul><ul><ul><li>Use average inventory levels for holding cost </li></ul></ul>
    15. 15. Simulation Experiments <ul><li>What is best under real-world conditions? </li></ul><ul><ul><li>Multiple levels to be concerned about </li></ul></ul><ul><ul><li>Real-time changes </li></ul></ul>
    16. 16. References <ul><li>Russell, Roberta S., and Bernard W. Taylor III. Operations Management. 3 rd Edition: Prentice Hall, 2000 </li></ul><ul><li>Grubbstrom, Robert W. Material Requirements Planning and Manufacturing Resource Planning . 03/12/2002. . </li></ul><ul><li>Vormittag Associates, Inc. System 2000 MRP . 03/12/2002. . </li></ul><ul><li>Inventory Solutions. What is MRP? . 03/12/2002. . </li></ul>