5 MRP-II.pptx
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Manufacturing resource planning (MRP II) is a method for effectively planning all resources in a manufacturing company, including operational, financial, and human resources. It addresses planning, scheduling, and answering "what-if" questions through integration and simulation capabilities. MRP II evolved from material requirements planning in the 1980s to encompass more than just materials planning. It integrates functions like production scheduling, inventory management, purchasing, and cost accounting to allow for information sharing across different departments and improved control, scheduling, and benefits.
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Recent Trends in Inventory Control
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History and Evolution of ERP & SAP
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1) ERP systems evolved from inventory management and materials requirements planning systems used in manufacturing to integrate enterprise-wide processes across functions and locations.
2) SAP was founded in 1972 and released its first ERP software R/2 in 1979, with subsequent releases integrating more functions and capabilities.
3) Modern ERP systems provide real-time data processing, integration across various business modules, and flexibility to support different business types and industries.
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5 MRP-II.pptx
- 1. Manufacturing Resources Planning (Module -II) Presented By Dr. Niraj C. Chaudhari Assistant Professor Sanjivani College of Engineering ,Department MBA Kopargaon
- 2. Manufacturing resource planning (MRP II) is defined by APICS as a method for the effective planning of all resources of a manufacturing company. Ideally, it addresses operational planning in units, financial planning in dollars, and has a simulation capability to answer "what-if" questions and extension of closed- loop MRP. This is not exclusively a software function, but a marriage of people skills, dedication to data base accuracy, and computer resources. It is a total company management concept for using human resources more productively
- 3. Historical Perspective Manufacturing resource planning evolved from material requirement planning in the 1980. It abbreviated as MRP-2 to distinguish from MRP. Oliver Wight and walter goddard developed manufacturing resources planning from ERP.
- 4. Key functions and features MRP II • Key functions and features MRP II is not a proprietary software system and can thus take many forms. It is almost impossible to visualize an MRP II system that does not use a computer, but an MRP II system can be based on either purchased–licensed or in- house software.
- 5. Master production schedule (MPS) Item master data (technical data) Bill of materials (BOM) (technical data) Production resources data (manufacturing technical data) Inventories and orders (inventory control) Purchasing management Material requirements planning (MRP) Shop floor control (SFC) . Capacity planning or capacity requirements planning (CRP) Standard costing (cost control) Cost reporting / management (cost control)
- 6. together with auxiliary systems such as: Business planning Lot traceability Contract management Tool management Engineering change control Configuration management Manufacturing resource planning 2 Shop floor data collection Sales analysis and forecasting Finite capacity scheduling (FCS) and related systems such as: General ledger Accounts payable (purchase ledger) Accounts receivable (sales ledger) Sales order management Distribution requirements planning (DRP) Automated warehouse management Project management • Technical records Estimating • Computer-aided design/computer-aided manufacturing (CAD/CAM)
- 7. •CAPP The MRP II system integrates these modules together so that they use common data and freely exchange information, in a model of how a manufacturing enterprise should and can operate. The MRP II approach is therefore very different from the “point solution” approach, where individual systems are deployed to help a company plan, control or manage a specific activity. MRP II is by definition fully integrated or at least fully interfaced.
- 8. Benefits MRP II systems can provide: Better control of inventories Improved scheduling Productive relationships with suppliers For design / engineering: Improved design control Better quality and quality control For financial and costing: Reduced working capital for inventory Improved cash flow through quicker deliveries Accurate inventory records
- 9. THANK YOU