MRP is a computerized system that converts a master production schedule into detailed procurement schedules for raw materials and vendor components. It aims to ensure the right quantity of materials are available at the right time to efficiently produce the required quantity of finished products while minimizing inventory levels. MRP takes into account factors like dependent/independent demands, lumpy demand, lead times, and common use items. Its key outputs include planned order releases, work orders, purchase orders, and rescheduling/cancellation notices.

2. COMPUTER AIDED MANUFACTURING(CAM)
TOPIC:- MATERIAL REQUIREMENT PLANNING(MRPI)
Prepared by:
NAME ENRL. NO.
ATODARYA DHRUVE RAJ 130450119006
BABARIA RAZIN 130450119007
BALASHAIKH M. ASHIF 130450119008

3. Material requirement planning (MRP)
• Material requirement planning (MRP) is a
computerized function or computational
technique which converts the master schedule
for the product on to a detailed schedule for
the procurement of the raw materials and
vendor manufactured components.

4. Objectives
• To ensure right quantity of material is
available for production at right time to
produce right quantity of final product.
• To ensure minimum inventory.
• To maintain the delivery sehedule of the final
product.

5. Factor to be considered in MRR
• Dependent and Independent demands
• Lumpy demand
• Ordering and Manufacturing lead times
• Items of Common use

6. Dependent and Independent demands
• The dependent demand means the demand
for the item A depends upon the demand for
the item B.
• For example, the demand for the raw material
depends upon the demand for the particular
component and demand for that component
in turn depends upon the market demand for
the product of which the component is a part.

7. • The independent demand means the demand
for the item A is independent of the demand
for the item B.
• For example, the demand for the spare parts
is independent of the demand for the product.

8. Lumpy demand
• In some cases of manufacturing the demand
for the raw material will occur in large
increments rather than in a continuous
constant rate.
• The large increments corresponds to a contain
batch of the final product, such demand is
called lumpy demand.

9. Ordering and Manufacturing lead times
• The lead time for an item is the time required
to complete an item from the beginning to the
end.
• There are two types of lead times:
1) Ordering lead time
2) Manufacturing lead time

10. 1) Ordering lead time:
• An ordering lead time of an item is the time
required from the initiation of the purchase
requisition to the receipt of the item from
vendor.
2) Manufacturing lead time:
• The manufacturing lead time for an item is the
time required for the complete manufacturing
of the item from the start to the finish.

11. Items of common use
• In manufacturing a single raw material may be
used to produced more than one type of
component. Again, a single component may be
used on more than one final product.
• For example, a same alloy steel rod may be
used as a raw material for the different
components.
• Similarly M10 screws may be used on number
of products.

12. Important inputs and outputs of MRPI

13. Overview of the MRP System
Master
Production
Schedule
Material
Requirements
Planning
Product
Structure
File
Item
Master
file
Planned
Order
Release
Work
orders
Purchase
Orders
Rescheduling
notices

14. 1) Bill of materials
• Product structure file
• Determines which component items need to
be scheduled

15. 15
2. Master Production Schedule(MPS)
• Drives MRP process with a schedule of
finished products.
• Quantities represent production not demand.
• Quantities may consist of a combination of
customer orders & demand forecasts.
• Quantities represent what needs to be
produced, not what can be produced.

16. Example
PERIOD
MPS ITEM 1 2 3 4 5
Clipboard 85 95 120 100 100
Lapdesk 0 50 0 50 0
Lapboard 75 120 47 20 17
Pencil Case 125 125 125 125 125

17. 3. Inventory Record
• Contains an extensive amount of information on
every item that is produced, ordered, or
inventoried in the system
Item Pressboard Lead time 1
Item no. 734 Annual demand 5000
Item type Purch Holding cost 1
Product/sales class Comp Ordering/setup cost 50
Value class B Safety stock 0
Buyer/planner RSR Reorder point 39
Vendor/drawing 07142 EOQ 316
Phantom code N Minimum order qty 100
Unit price/cost 1.25 Maximum order qty 500
Pegging Y Multiple order qty
LLC 1 Policy code 3
DESCRIPTION INVENTORY POLICY

18. Outputs of MRPI
Reports of Planned Supply Orders
• these reports contain the supply orders planned
to be released in future.
Supply orders
• These supply orders are to be issued by the
purchase department
Rescheduling Notices
• These notices indicate the changes in due dates
of supply orders which is because of changes in
the master schedule. 18

19. Cancellation Notices
• These notices inform the cancellation of supply
orders because of the changes in the master
schedule.
Inventory Status Report
• These report gives the detail status of the
inventory.

20. The Benefits of MRP
• Inventory reduction.
• Reduction in production & delivery time.
• Increased efficiency.
• Faster response to market changes.
• Improved labour & equipment utilization.
• Better inventory planning & scheduling.
• Reduced inventory levels without reduced
customer service.

21. Summary
• In the era of computer and IT, it is necessary to use
new technologies for fester growing organization.
Any company wants to lead in the competetitive
market by introducing qualitative product with in a
short period of time. Like that in manufacturing
organization MRP system helps to reduce the
manufacturing time of a product by insuring the
availability of materials for product assembly in the
necessary quantities at the required time. It also help
to reduce raw material purchasing ,purchases parts
& working process inventory. So MRP uses reducing
inventory cost, reducing completion time of
manufacturing with maintaining quality. It provides
customer, a greater return value of their money.