3. Material requirements planning (MRP): Computer-based
information system for ordering and scheduling of
dependent demand inventories
It is a production planning process that starts from the demand for
finished products (independent demand) and plans the
production step by step of subassemblies and parts (dependent
demand).
MRP
4. Capacity Planning
Capacity requirements planning: The process of
determining short-range capacity requirements.
Load reports: Department or work center reports that
compare known and expected future capacity
requirements with projected capacity availability.
Time fences: Series of time intervals during which order
changes are allowed or restricted.
5. MRP Planning
Develop a tentative
master production
schedule
Use MRP to
simulate material
requirements
Convert material
requirements to
resource requirements
Firm up a portion
of the MPS
Is shop
capacity
adequate?
Can
capacity be
changed to meet
requirements
Revise tentative
master production
schedule
Change
capacity
Yes
No
Yes
No
6. Food catering service
End items are the catered food
Dependent demands are ingredients for
each recipe, i.e. bill of materials
Taco Bell menu items
Hotel renovation
Activities and materials “exploded” into
component parts
MRP in Services
7. Benefits of MRP
Low levels of in-process inventories
Ability to track material requirements
Ability to evaluate capacity requirements
Means of allocating production time
Eventually it is a database with limited decision
making capability
8. Requirements of MRP
Computer and necessary software
Accurate and up-to-date inputs:
Master schedules
Bills of materials
Inventory records
Integrity of data
10. 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, 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.
11. Expanded MRP with and emphasis
placed on integration
Financial planning
Marketing
Engineering
Purchasing
Manufacturing
MRP II
16. What is ERP?
facilitates company-wide integrated
information systems, covering all
functional areas
performs core Corporate activities and
increases customer service augmenting
Corporate Image
ERP is a solution, which
17. For Management – to know what is happening
in the company
One solution for better Management
For cycle time reduction
To achieve cost control & low working capital
To carry latest technologies
To shun the geographical gaps
To satisfy the customers with high expectations
To be Competitive & for survival
18. • Enterprise Resource Planning - a software system that
integrates core business areas such as manufacturing,
distribution, financials and human resources.
• “Software solution that addresses the Enterprise needs, taking
a process view of the overall organization to meet the goals,
by tightly integrating all functions and under a common
software platform”
Enterprise Resource Planning
19. An ERP solution can deliver dramatic benefits
to businesses of all types and sizes – increased
productivity, reduced operating expenses,
improved information flow, and enhanced
performance management. Why does your
company need an ERP solution? Read on to
learn more.
20. One common system - less duplication, more
efficient
Customer focus - better customer service
Open communications among business partners
Adherence to standard business practices
Benefits of ERP
21. High cost
Forced change of processes
Very complex software
Lack of trained people
Not Internet-ready
Disadvantages of ERP
22. Critical Success Factors
The firm & optimistic approach of the Management
- on adapting the ERP product driven methodologies
- on customization
- on monetary commitments
The dedicated Team
Good Training
Strict adherence to the Project schedules
Right technical infra-structure
Change Management
23.
24. MRP
In the 1970s material requirement planning (MRP) was developed as a mechanism for
manufacturing companies to calculate more precisely what materials they required, at what time
and in optimum quantities.
MRPII
Manufacturing Resource Planning (MRPII) evolved from MRP, because many companies
realised that as well as the need to calculate their material requirements precisely, they also
required detailed capacity planning, scheduling, shop floor control and other calculations.
MRPII introduced the closed-loop model, which uses a centrally held data file to record, monitor
and report on various company activities. By comparing forecasts with actual data, companies
can analyse performance and improve processes to achieve better efficiency.
CaliachMRP is Caliach's established MRPII system for managing core manufacturing activities
ERP
Enterprise resource planning (ERP) developed MRPII even further to embrace all business
functions, not just those concerned with actual manufacturing. ERP encompasses materials
planning, efficient production, profitability, customer satisfaction - almost every aspect of
business.
ERP also incorporates the principles of global supply chain management, in which the value of
every activity in the supply chain is analysed, along with the growing development of Internet or
web-enabled procurement.
conclusion
