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3. mrp1 pgp1
Material Requirement Planning (MRP) is a computerized inventory control and production planning system that helps manage and schedule manufacturing components based on order priorities and available capacities. It effectively reduces inventory levels, component shortages, and lead times while improving customer service and plant efficiency. The MRP process involves identifying requirements, running MRP to create suggestions, and firming those suggestions into manufacturing and purchasing orders.
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3. mrp1 pgp1
- 1. Material Requirement Planning (MRP1) Professor,Entrepreneur & Lawyer. Puttu Guru Prasad, M.Com. M.B.A., L.L.B., M.Phil. PGDFTM. AP.SET., ICFAI TMF., (PhD) at JNTUK. Senior Faculty for Management Science, S&H Department, VVIT, Nambur, NSS P.O My Blog: puttuguru.blogspot.in 93 94 96 98 98, 807 444 95 39,
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- 3. What is MRP? ComputerizedInventory Control Production Planning System Management Information System Manufacturing Control System
- 4. What is MRP? (cont) This is the most comprehensive approach to manufacturing inventory and other dependents which demand an efficient inventory management system.
- 5. What is MRP do? The MRP system determines item-by-item, what is to be processed and when, as well as what is to be manufactured when. This is based on order priorities and available capacities.
- 6. When to use MRP Job Shop Production Complex Products Assemble-to-Order Environments Discrete and Dependent Demand Items
- 7. What can MRP do? Reduce Inventory Levels Reduce Component Shortages Improve Shipping Performance Improve Customer Service Improve Productivity Simplified and Accurate Scheduling Reduce Purchasing Cost Improve Production Schedules Reduce Manufacturing Cost Reduce Lead Times Less Scrap and Rework Higher Production Quality
- 8. What can MRPdo? (contd) Improve Communication Improve Plant Efficiency Reduce Freight Cost Reduction in Excess Inventory Reduce Overtime Improve Supply Schedules Improve Calculation of Material Requirements Improve Competitive Position
- 9. Three Basic Stepsof MRP Identifying Requirements Running MRP – Creating the Suggestions Firming the Suggestions
- 10. Step 1: Identifyingthe Requirements Quantity on Hand Quantity on Open Purchase Order Quantity in/or Planned for Manufacturing Quantity Committed to Existing Orders Quantity Forecasted
- 11. Step 1: Important InformationMRPis….. Company Sensitive Location Sensitive Date Sensitive
- 12. Step 2: RunningMRP – Creating theSuggestions Critical Items Expedite Items Delay Items
- 13. Step 3: Firmingthe Suggestions Manufacturing Orders Purchasing Orders Various Reports
- 14. Overview of theMRP System Product Structure File Master Production Schedule Inventory Master File Material Requirements Planning Manufacturin g Orders Purchase Orders Various Reports
- 15. MRP Inputs Product StructureFile Master Production Schedule Inventory Master File
- 16. Product Structure File Billof Materials: It is a materials list that provides information useful to reconstruct the manufacturing process. It is the master product definition that contains “as designed” information.
- 17. Bill-of-Material Product Structure Tree Bicycle(1) P/N 1000 HandleBars (1) P/N 1001 Frame Assembly (1) P/N 1002 Wheels (2) P/N 1003 Frame (1) P/N 1004
- 18. Master Production Schedule Scheduleof Finished Products Represents Production, not Demand Combination of Customer Orders and Demand Forecasts What Needs to be Produced
- 19. Inventory Master File On-HandQuantities On-Order Quantities Lot Sizes Safety Stock Lead Time Past-Usage Figures
- 20. MRP ProcessItem: Low-Level Code: Lot Size:Lead Time PD 1 2 3 4 5 Gross requirement Scheduled receipts Projected on hand Net requirements Planned order receipts Planned order releases
- 21. Terms Defined Item –name or number for the item being Scheduled Low-Level Code – the lowest level of the item on the productstructure file Lot Size – order multiples of quantity Lead Time – the time from when an order is placed to when it is received PD – Past Due Time Bucket, orders behind schedule
- 22. Terms Defined Gross Requirements– demand for an item by time period Scheduled Receipts – material already ordered Projected on Hand – expected ending inventory Net Requirements – number of items to be provided and when Planned Order Receipts – net requirements adjusted for lot size Planned Order Releases – planned order receipts offset for lead times
- 23. Example of theMRP ProcessItem: PD 1 2 3 4 5 Gross requiremen t 10 15 25 25 30 Scheduled receipts 25 Projected on hand 20 Net requiremen t s Planned order receipts Planned order releases
- 24. Example of theMRP ProcessItem PD 1 2 3 4 5 Gross requiremen t 10 15 25 25 30 Scheduled receipts 25 Projected on hand 20 10 20 20 20 15 Net requiremen ts 5 5 10 Planned order receipts 25 25 25 Planned order releases 25 25 25 30 25
- 25. Aggregate Production Plan Marketing Customer Demand Engineering Design Completion Management Return on Investment Capital Human Resources Manpower Planning Procurement Supplier Performance Finance CashFlow Production Capacity Inventory Inputs to the Production Plan
- 26. Production Plan Execute Material Plans MasterProduction Schedule Material Requirements Plan Capacity Requirements Plan Execute Capacity Plans No Realistic?? Yes The PlanningProce ss
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- 28. Hubbell Lighting Case Before MRPImplementation Less than 75% of orders completed on time After MRP Implementation 97% of orders completed on time 2% of orders completed with 1 to 2 days after due date
- 29. Summary ofMRP MRP is a….. ComputerizedInventory Control Production Planning System that….. Schedules Component Items as Needed which will….. Track Inventory and….. Help you in many other aspects of business