i am student od MBA at iqra university...this is material resource planning ppt...
i hve some more ppt on different topic if someone wants help from me so u can contact at this number...03343649958.
Material Resource Planning (MRP)
Objectives of MRP
Fundamental concepts of MRP
Functions of MRP
Inputs to MRP
Master production schedule(MPS)
Bill of Materials (BOM)
Inventory Status File
MRP outputs
Learning Curve
Negotiating
Material Resource Planning (MRP)
Objectives of MRP
Fundamental concepts of MRP
Functions of MRP
Inputs to MRP
Master production schedule(MPS)
Bill of Materials (BOM)
Inventory Status File
MRP outputs
Learning Curve
Negotiating
Material requirements planning (MRP) is a production planning, scheduling, and inventory control system used to manage manufacturing processes. Most MRP systems are software-based, but it is possible to conduct MRP by hand as well. ... Plan manufacturing activities, delivery schedules and purchasing activities.
Production Planning and Control (Operations Management)Manu Alias
A presentation on operations management. The contents are, Production management and control - Meaning, Definition, functions, Objectives, Stages, Importance and limitations; Master Production Schedule (MPS) - Meaning, Objectives and fuctions.
Safety stock (also called buffer stock) is a term used by logisticians to describe a level of extra stock that is maintained to mitigate risk of stockouts due to uncertainties in supply and demand
Safety stock is an additional quantity of an item held in the inventory in order to reduce the risk that the item will be out of stock, safety stock act as a buffer stock in case the sales are greater than planned and or the supplier is unable to deliver the additional units at the expected time
Material requirements planning (MRP) is a production planning, scheduling, and inventory control system used to manage manufacturing processes. Most MRP systems are software-based, but it is possible to conduct MRP by hand as well. ... Plan manufacturing activities, delivery schedules and purchasing activities.
Production Planning and Control (Operations Management)Manu Alias
A presentation on operations management. The contents are, Production management and control - Meaning, Definition, functions, Objectives, Stages, Importance and limitations; Master Production Schedule (MPS) - Meaning, Objectives and fuctions.
Safety stock (also called buffer stock) is a term used by logisticians to describe a level of extra stock that is maintained to mitigate risk of stockouts due to uncertainties in supply and demand
Safety stock is an additional quantity of an item held in the inventory in order to reduce the risk that the item will be out of stock, safety stock act as a buffer stock in case the sales are greater than planned and or the supplier is unable to deliver the additional units at the expected time
This is an operation management assignment which covers mrp & erp topics with detail.
This is a bookish topic which we find in operations management book & describe it with the help of internet & mind. This presentation describe all the factors of mrp & erp & also represent graphs. This topics explains processes of mrp & erp. Bill of materials, inventory records, planned order receipt, planned order release, primary Reports, secondary reports.
MRP, MRP2 and ERP system in supply chainSaad Munami
Material Requirement Planning (MRP),
Manufacturing Resource Planning (MRP 2),
Enterprise resource planning (ERP)
Systems in SCM
Definations with explaination
Material requirements planning and manufacturing resource planning differenceMRPeasy
The MRP is a planning system that allows you to manage the production resources of an organization. Here is an overview of Material Requirements Planning (MRP I) and Manufacturing Resource Planning (MRP II) differences.
#mrp #mrpsoftware #mrpeasy #erpsystem #materialrequirements #manufacturingresourceplanning #manufacturing #manufacturingsoftware #erp
MBALN-670 Operations Management Title of the topic 6 .docxARIV4
MBALN-670 Operations Management
Title of the topic 6
Resource Planning and Scheduling
Topic’s learning objectives
1. Identify and critique the strategic frameworks of operations and quality
management within a global business environment.
2. Comprehensive knowledge of the main concept and methods related to
designing and managing operations and supply chains.
3. Systematic application of a range of fundamental operational improvement
concepts.
4. Critically evaluate the role of operations within different business models /
functions..
Introduction
Learning Material
Start by flicking through the presentations, this will provide you with a quick overview
of the topics. Pay particular attention to Resource Planning.
You will find these in the folder “presentations”.
There are various ways in defining an Enterprise resource Planning System. This is
how it has been defined by American Inventory and Production Control System
(APICS) dictionary:
“Enterprise Resource Planning: An accounting oriented information system for
identifying and planning the enterprise-wide resources to make ship and
account for customer orders.”
Again in Internet encyclopedia, it has defined as: “An enterprise planning system is
an integrated computer based application used to manage internal and external
resources, including tangible assets, financial resources, material and human
resources”.
Basically, an ERP combines several traditional management functions into a logical
integrated system and facilitate flow of information across these functions. It is
designed to model and automate basic processes across the organization over a
centralized database and eliminates the need of disparate systems maintained by
various units of the organization.
Figure below shows how information is integrated in a typical organization using a
ERP system.
ERP system is thus a mirror image of the major business processes of an
organization.
Need for Enterprise Resource Planning - Why ERP?
Separate systems were being maintained during 1960/70 for traditional business
functions like Sales & Marketing, Finance, Human Resources, Manufacturing, and
Supply Chain Management. These systems were often incongruent, hosted in
different databases and required batch updates. It was difficult to manage business
processes across business functions e.g. procurement to pay and sales to cash
functions. ERP system grew to replace the islands of information by integrating these
traditional business functions.
The successful implementation of an ERP system will have many advantages,
as indicated below:
Business integration and Improved Data Accuracy: ERP system is
composed of various modules/ sub modules where a module represents a
particular business component. If data is entered in one module such as
receiving, it automatically updates other related modules such as accounts
payable and inventory. This ...
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5. Material Requirement Planning
(MRP-1)
Introduction of MRP in 1960’s by
Dr Joseph Orlicky.
Definition :
MRP is a software based production, planning and
inventory control system used to manage the
manufacturing process.
It is a computer based system in which the given
Master Schedule is exploded with Bills Of Material,
into the required amount of raw material, parts and
subassemblies needed top produce the final products in
each tome period of say a week or month (called as
“Buckets”)
6. MRP 1 - Functions
Forecasting
Order, Planning and Control
Priority Planning and Control
Planning Capacity Requirement and
Development of Broad Business
Plans
7. Objectives
Ensure The Availability of Material
Components and Products For Planned
Production and Customer Delivery.
Maintain The Lowest Possible Inventory
Level.
Plan Manufacturing Activities, Delivery
Schedules and Purchasing Activities.
8. Key Elements Of MRP 1
Demand Forecasting:-
It is the quantity demanded per year or per unit
time which indirectly helps in knowing quantity
to be supplied.
Master Production Schedule (MPS):-
MPS is a series of time phased quantities for
each item that a company manufactures. It
gives the details of the products to be
manufactured over the given space of time. -
9. Example of MPS
Forecast requires Material Required
10 desks in May 880 screws
40 handles
240 planks
10 tops and 40 legs
5.55 tubes of glue
20 desks in June 1760 screws
80 handles
480 planks
20 tops and 80 legs
11.1 tubes of glue
10. Bills Of Material (BOM):-
BOM is the document generated at
design stage. It gives the details of the
structure of the product by dividing
the final assembly into major
assemblies and sub-assemblies. BOM
provides details such as part name,
part no., description, quantity required
material, etc.
11. O f f ic e D e s k
O a k F in is h
4 d r a w e rs
4 d r a w e rs M a in D e s k
R e q u ire R e q u ir e s
88 4 24 1 4 5 /9
M e ta l S c re w s H a n d le s P la n k s to p le g s t u b e o f g lu e
12. Inventory Status File (ISF):-
ISF reports the inventory on hand. It
allows the company to subtract existing
inventory from gross requirements, so net
requirements can be ordered. The ISF
also reports on safety stock needs and
lead times for each item.
13. MRP Program:-
This is a computer software programme.
First, it explodes the finish product’s
demand into gross requirement for parts.
Second, the package determines net
requirements based on the ISF. Third, it
place orders to meet the net quantities
needed and lead times.
14. Material Requirements Planning MRP1
Master
Customer orders Production Demand forecast
Schedule
Inventory records
Bill of materials MRP
Material
requirement
planning
Works orders
Purchase orders
Material plans
15. Outputs And Reports:-
The MRP 1 package generates many
reports such as action notices, priority
reports, inventory status information.
16. Advantages of MRP 1
Improved Business Results
Improved Manufacturing Results
More Accurate And Timely Information
Less Inventory
Less Materials Obsolescence
Time Phased Ordering Of Materials
18. Disadvantages
Increase In Material Acquisition Cost
Higher Transportation Costs And Higher
Unit Cost
Potential Hazard Of A Production
Slowdown Or Shutdown
19. Use Of Standardized Software Packages
Does not Take Into Account Plant
Capacity And Distribution Capacity
High Stock-Out Costs.
22. Manufacturing Resource Planning
(MRP II) is defined 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.
23. MRP
• Manufacturing-centric/Push mgt.
• Master production schedule
• Final production schedule
• Inventory management
• Bill of materials
• Gross requirement generation
• Net requirement generation
• Reorder point calculation
• Automatic replenishment
MRP I I
• Capacity requirement. planning
• Production control
• Marketing interface
• Accounting interface
• Financial interface
• Personnel interface
• Supplier interface
• Customer interface
24.
25.
26. Major Developments From
MRP
Feedback
Allocating reserves
Matching the requirements
Software extension programmers
Data accuracy
29. Coca Cola: "Always" Class A MRP
II
Inventory levels: down
Productivity: up
Customer delivery performance: improved
Supplier delivery performance: better
Business Processes: improved
Data integrity: high
Cost of goods: down
Team Spirit: high
31. For Management
An accurate, consistent and effective
way to run the whole business
The ability to manage orderly growth
The ability to cope with difficult
economic conditions
32. For Management Information
Quicker, better information on which
to base decisions
Consistent information at all levels, in
all departments
Accurate records for internal and
external use
33. For Sales / Marketing
Improved on-time deliveries to
customers
Faster, more accurate delivery
promising
Improved responsiveness to customer
needs
34. For Production
Improved productivity and resource
utilization
Increased through output
Better reliability of production plans
35. For Materials Management
Better control of inventories
Improved scheduling
Productive relationships with suppliers
36. For Design / Engineering
Improved design control
Better quality and quality control
37. For Financial and Costing
Reduced working capital for inventory
Improved cash flow through quicker
deliveries
Accurate inventory records
Timely and valid cost and profitability
information
39. FOR
Long term planning tool for complex products
Can give accurate completion date at time of order
Fits in with conventional accounting
Progress of manufacture available at all times
Inventory size available at all times
Control of work orders and changes is tight
Many types of software available
40. Against
File/database accuracy must be maintained
Inventory accuracy is vital (99% accuracy is a
typical requirement)
Highly computer based
Does not affect quality management, line
balancing, or other production management issues
Inflexible and relies on forecast. Temptation exists
to over-ride and go manual
42. Distribution Requirements
Planning (DRP I)
DRP is the application of MRP principles
to the distribution environment. It
integrates the, special needs of
distribution. It is a dynamic model which
looks at a time-phased plan of events that
affect inventory.
43. What is DRP?
DRP provides the basis for integrating
supply chain inventory information and
physical distribution activities with the
Manufacturing Planning and Control
system.
44. What is DRP?
Managing the flow of materials between
firms, warehouses, distribution centers.
DRP helps manage these material flows.
Just like MRP did in Manufacturing.
Links firms in the supply chain by
providing planning records that carry
demand information from receiving
points to supply points and vice versa.
45. DRP Menu Items
Component Description Purpose in DRP
Material Master Creates stock items and controlling
elements of items, locations and
policies that are used in the deployment
process.
Inventory Management Tracks inventory availability in all
stock categories and supply and
demand for an item.Also allows for the
physical movement of inventory.
Sales Planning, Forecasting and Creates forecasts of customer demand
Demand Management which results in the creation of
independent requirements at the
distribution center.These independent
requirements are later consumed by
actual customer orders.
Purchasing Creates quota arrangements that control
the supply relationships in the network.
Materials Requirements Planning Determines net supply and demand
resulting in a proposal for the transfer
of inventory from the plant to the
distribution center.
46. Marketing Benefits
Increases service level and decrease
customer complaints.
Improve inventory coordination.
Enhances ability to offer customer a
coordinated inventory management
service.
48. Constraints of DRP
Inventory planning systems require
accurate and coordinated forecasts for
each distribution center.
Integrated planning is subject to system
nervousness and frequent rescheduling,
because of production breakdowns and
delivery delays.
DRP is not the universal solution for
inventory management.
50. Distribution Resource planning
Distribution resource planning [DRP II] is an
extension of DRP I.Distribution resource
planning applies the time phased logic of DRP I
to replenish inventories in multi echelon
warehousing systems.Distribution resources
planning extends DRP I to include the planning
of key resources in a distribution system –
warehouse space, equipments, labors, transport
capacity [e.g trucks,rail cars] and financial
flows
51. Objectives Of DRP II
The objective of Distribution Resource Planning
are,
To improve customer service levels by anticipating
customer demand at distribution centers and providing
finished products at the correct location when customer
needs arise.
To provide an accurate requirements plan for
manufacturing.
To optimize the distribution of available stock in the
distribution network using the deployment function.
52. DRP II Provides a framework
Distribution resource planning provides a framework for
determining the need to replenish inventory by:
Linking market requirements with manufacturing and
demand management.
Relating current inventory positions and demand
forecasts to production scheduling.
Matching material supply to manufacturing demand,
and customer demand to product supply.
53. Factors needed for Implementing
DRP II
Before the use of DRP for planning and deployment,
we must set up a distribution network. A distribution
network represents possible delivery relationships
between the supplying plants and the distribution
centers. DRP entails planning the supply chain from
sales planning through delivery to the distribution
centers, assuming there are sales orders or that sales
forecasts are available. The primary aim of planning is
to determine the quantities required on specific
dates,including the lead times of the distribution lanes.
The distribution network defines the normal supply
method for execution.
54. CUSTOMERS
DISTRIBUTION DISTRIBUTION DISTRIBUTION DISTRIBUTION
CENTER CENTER CENTER CENTER
DISTRIBUTION DISTRIBUTION
CENTER CENTER
REGIONAL
WAREHOUSE REGIONAL
WAREHOUSE
PLANT WAREHOUSE
FINAL ASSMEBLY
(MANUFACTURING)
SUB ASSEMBLY B SUB ASSEMBLY C SUB ASSEMBLY D
SUB ASSEMBLY A PART C PART D PART E
PART A PART B
RAW MATERIALS
55. Difference between DRP and MRP
MRP DRP
Scope Inbound logistics Outbound logistics
Guiding factor Guided by production Guided by customer
schedules demand
Control of the firm Under control of the Not under control of
firm the firm
Demand situation Operates in dependant Operates in
demand situation independent demand
situation
Area of operation & Coordinates scheduling Coordinates demand
coordination & integration of between outlets &
materials into finished supply sources
goods
Stage of functioning Controls inventory Controls inventory
until manufacturing & after manufacturing &
assembly is complete assembly of finished
goods
Planning availability of Raw materials Market[retailers] &
stock at? stores,conversion process warehouses
& finished goods store