Material requirements planning & erp ppt @ bec doms
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Material requirements planning & erp ppt @ bec doms
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Material requirements planning & erp ppt @ bec doms
- 1. Material Requirements Planning & ERP
- 9. Inventory Classifications Inventory Process stage Demand Type Number & Value Other Raw Material WIP Finished Goods Independent Dependent A Items B Items C Items Maintenance Operating
- 10. Dependent versus Independent Demand Item Materials With Independent Demand Materials With Dependent Demand Demand Source Company Customers Parent Items Material Type Finished Goods WIP & Raw Materials Method of Estimating Demand Forecast & Booked Customer Orders Calculated Planning Method EOQ & ROP MRP
- 12. Inputs to the Production Plan Aggregate Production Plan Marketing Customer Demand Engineering Design Completion Management Return on Investment Capital Human Resources Manpower Planning Procurement Supplier Performance Finance Cash Flow Production Capacity Inventory
- 13. The Planning Process Change master production schedule? Execute material plans Execute capacity plans Detail capacity plan Material requirements plan Master production schedule Aggregate production plan Change requirements? Change capacity? Realistic No Yes Change production plan? Is capacity plan being met? Is execution meeting the plan?
- 14. Aggregate Production Plan 1,200 1,500 Aggregate Production Plan (shows the total quantity of amplifiers 100 300 75 watt amplifier 450 450 500 500 150 watt amplifier 100 100 100 100 240 watt amplifier Master Production Schedule (Shows the specific type and quantity of amplifier to be produced 8 7 6 5 4 3 2 1 Weeks February January Months
- 15. Typical Focus of the Master Production Schedule Make to Order (Process Focus) Assemble to Order or Forecast (Repetitive) Stock to Forecast (Product Focus) Schedule finished product Steel, Beer, Bread Light bulbs, Paper Print shop Machine shop Fine dining restaurant Examples: Number of end items Number of inputs Typical focus of the master production schedule Schedule orders Schedule modules Motorcycles, autos, TVs, fast-food restaurant
- 17. Product Structure for “Awesome” A
- 19. Bill-of-Material Product Structure Tree Bicycle(1) P/N 1000 Handle Bars (1) P/N 1001 Frame Assembly (1) P/N 1002 Wheels (2) P/N 1003 Frame (1) P/N 1004
- 20. Time-Phased Product Structure 1 2 3 4 5 6 7 8 3 weeks F 2 weeks E A 1 week 1 week C G 2 weeks D 1 week E 2 weeks Start production of D D 1 week B 2 weeks to produce Must have D and E completed here so production can begin on B
- 24. Structure of the MRP System Master Production Schedule BOM Lead Times (Item Master File) Inventory Data Purchasing data MRP planning programs (computer and software) MRP by Period Report MRP by date report Planned order report Purchase advice Exception report Exception report
- 25. Gross Material Requirements Plan for 50 “Awesome A” Speaker Kits
- 26. MRP and The Production Planning Process Forecast & Firm Orders Material Requirements Planning Aggregate Production Planning Resource Availability Master Production Scheduling Shop Floor Schedules Capacity Requirements Planning Realistic? No, modify CRP, MRP, or MPS Yes
- 27. MRP Systems - Input and Output Inventory Purchasing Master Production Schedule Bill of Materials Material Requirements Planning System Status Planned Order & Other Reports Item Master Data
- 29. Derivation of Master Schedule Therefore, these are the gross requirements for B Periods 10 10 1 2 3 Master schedule for S sold directly 40 50 15 A C B 5 6 7 8 9 10 11 Lead time = 4 for A Master schedule for A 40 20 30 S B C 8 9 10 12 11 13 Lead time = 6 for S Master schedule for S 10 40+10 = 50 40 50 20 15+30 = 45 1 2 3 4 5 6 7 8 Periods Gross requirements: B
- 33. MRP Lot-Sizing Problem: Lot-for-Lot Techniques
- 34. MRP Lot-Sizing Problem: EOQ Technique
- 35. MRP Lot-Sizing Problem: PPB Technique
- 37. Closed Loop MRP
- 39. Initial Resource Requirements/Smoothed Resource Requirements
- 41. MRP and ERP Information Flows, Integrated with Other Systems
- 43. Product Structure, Bill of Materials, Bill of Labor for Veal Picante
Editor's Notes
- One thought to be remembered from Collins is the emphasis on maintenance of record integrity. Error rates as low as 2 - 4 percent may lead to instability in an MRP system.
- We start this chapter by linking Dependent Demand Inventory back to Independent Demand Inventory. You might note to students that independent demand is created external to the company, dependent demand, internally.
- You might add to this list that the operations manager must know that inventory records, bill-of-materials, etc., are accurate.
- Students should be asked to explain why the focus of the Master Production Schedule changes depending upon the nature of the production process.
- A bicycle provides a good example for deriving a bill-of-material. Most students remember enough of the parts of a bicycle to develop several levels.
- You might ask students to develop a similar product for a product with which they are familiar. Possibly a ball-point pen?
- The bicycle is simple, yet complex enough to be used for a special bills example also. Modules - pair of wheels; gearshift & cables; multiple sprockets; etc. Etc. The following slide outlines such an example.
- This slide has been animated to demonstrate backward scheduling - item A is scheduled first, then the remaining items are scheduled so as to produce A at the proper time.
- A point to stress here is that while MRP is heavily computer-based, it is more than simply a computer program.
- It is important to emphasize the need for accurate records - both bill-of-material and inventory.
- While MRP certainly can produce these benefits, it is useful to discuss the problems faced in establishing an MRP system. A number of companies have given up on the task - the necessary transformation of old processes has simply proven too difficult.
- Emphasize that this slide illustrates the overall technological structure of MRP - people and process are also extremely important in its actual success.
- This slide illustrates the fit of MRP into the overall production planning process. It would be helpful to walk through the actual relationship with your students.
- It is helpful here to briefly review the “contents” of each of the boxes - i.e., what is contained in an Item Master file, what purchasing data is expected, etc.
- This slide is also animated in an attempt to demonstrate the “building” of the master schedule.
- This slide does merit discussion - especially the items about system nervousness and the manager’s reaction to change.
- Students sometimes begin to think of MRP and JIT as in some way interchangeable. Here is a chance to stress the differences.
- What does one gain by implementing one of the extensions of MRP?
- It usually seems to be helpful to discuss the overall concept of load leveling before tackling load leveling and MRP.
- Have the students consider what modifications may be necessary for MRP to be valuable in services.