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MRP II
Manufacturing Resource Planning, Production
Planning Procedure in eresource
An essential and concise guide to
         understanding MRPII




                Release 2.8




2               © 2010 eresource Infotech Private Limited. All rights reserved
Copyright
© Copyright 2011 ERESOURCE. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose
without the express permission of eresource Infotech P. Ltd. The information contained herein may be
changed without prior notice.

Microsoft®, WINDOWS®, NT®, EXCEL®, Word®, PowerPoint® and SQL Server® are registered
trademarks of Microsoft Corporation.

HTML, DHTML, XML, XHTML are trademarks or registered trademarks of W3C®, World Wide
Web Consortium,

eresource, eresource Logo. Eresourceerp.com are trademarks or registered trademarks of eresource
Infotech in India and several other countries all over the world. All other products mentioned are
trademarks or registered trademarks of their respective companies.




      3                                   © 2010 eresource Infotech Private Limited. All rights reserved
Table of Contents

Manufacturing resource planning in eresource ........................................................................................... 5
MASTER PRODUCTION SCHEDULE ................................................................................................................ 6
BILL-OF-MATERIALS. ..................................................................................................................................... 8
MRP I & MRP II in Eresource ....................................................................................................................... 10
Work flow on MRP I & MRP II in eresource ERP. ........................................................................................ 11
Daily Production Yield ................................................................................................................................. 12
Benefits of MRP Manufacturing Requirements Planning ........................................................................... 14




          4                                                    © 2010 eresource Infotech Private Limited. All rights reserved
Manufacturing resource planning in eresource
MRP II or Manufacturing Resource Planning by itself is the original modality of what we know
now as ERP, and covered materials planning. This is part of eresource's ERP solution.

MRP II is one of the evolution stages of eresource ERP and covers all the resources in a
manufacturing company, with the additional ability to manage "what if" situations.

MRP II module in eresource ERP helps to maintain a neat agenda for the manner in which the
resources are to be allocated without any confusion.

The interacting functions considered for this model are: Commercial Planning, Sales, Master
Production Scheduling, Materials Resource Planning (MRP) and support systems for Capacity
and Materials Execution.

There is a scheduling capability within the heart of the solution that concentrates on the
resources, such as the plant and equipment required to convert the raw materials into finished
goods. The advantages of this development are that detailed plans can be put to the shop floor
and can be reported on by operation, which offers much tighter control over the plant.

For Companies assembling end items from Components produced in batch manufacturing
processes, MRP is central to the development of detailed plans for part needs. It is often where
companies start in developing their MPC systems. Facility with time-phased planning and the
associated time-phased records is basic to understanding many other aspects of the MPC
system. Finally, although introduction of JIT and investment in lean manufacturing processes
have brought about fundamental changes in detailed material planning for some firms,
companies continue to adapt the MRP approach or enhance their existing systems

Eresource ERP helps you reduce the inventory material investment and improve productivity
and customers by getting the right product at the right time to meet the schedules. Eresource
MRP provides formal plans for each part number, wheter raw material, component, or finished
good. With the MRP activity in eresource, you can make purchasing and production-scheduling
decision based on real-time circumstances.




      5                                © 2010 eresource Infotech Private Limited. All rights reserved
Resource          Sales and Operation             Demand
          Planning               Planning                  Management




                              Master Production
                                Scheduling
                                                                                        e

                                                                                         r

              Bills of                                                                  e
             Materials        Detailed Material
                                 Planning
Routing                                                                                  s
 Files

                                Material and                                            o
Detailed Capacity              Capacity Plans
    Planning                                                                            u

                                                                                         r
       Shop-floor               Supplier and
        Systems               Purchase Module                                            c


MRP provides you up-to-date item statistics, including on-hand quantities, current purchase
orders, work orders, transfer orders, and other elements that affect planning decisions.


MASTER PRODUCTION SCHEDULE
Eresource MPS is the plan that a company has developed for production, inventory, staffing,
etc. It sets the quantity of each end item to be completed in each week of a short-range
planning horizon. A Master Production Schedule is the master of all schedules. It is a plan for
future production of end items

The eresource Master Production Schedule gives production, planning, purchasing, and top
management the information needed to plan and control the manufacturing operation. The
application ties overall business planning and forecasting to detail operations through the
Master Production Schedule.



      6                                  © 2010 eresource Infotech Private Limited. All rights reserved
Eresource Gives a detail understanding of the Production schedule and visibility of production
and inline orders in just one screen.

The Production schedule in eresource can also be viewed in graphical form, as displayed
below.




      7                                © 2010 eresource Infotech Private Limited. All rights reserved
BILL-OF-MATERIALS.
The bill of material (BOM) is an instrument for describing the structure of a product for any of the
following production types:

   •   Repetitive manufacturing
   •   Manufacturing products with variants
   •   Process manufacturing
   •   Make-to-order production


In eresource, you can also maintain bills of materials for sales orders, projects, equipment, and
documents.



Four forms of the basic BOM are supported in Production Planning and Control (PP). They
may be created at any time by extending a simple BOM:




       8                                © 2010 eresource Infotech Private Limited. All rights reserved
•   Simple BOM --- one rigidly defined bill of material associated with one
              material
          •   Multiple BOM --- a set of bill of materials describing each of several different
              production processes, constituents, or relative quantities of components, all of
              which produce the same material. There several ways of making the same thing.
          •   One time BOM —a bill of material for a specific sales order that is used in make-
              to-order production.
          •   Configurable BOM - a bill of material that is configured automatically on the
              basis of logical links. It is used for complex variant structures or process-
              dependent BOM configuration in continuous flow production.

Data for MRP is inherited from the BOM. The standard BOM in eresource captures Ingredient
information with standard consumption, wastage, overage and gross consumption.

BOM can be further configured or changed on the basis of order.

      9                               © 2010 eresource Infotech Private Limited. All rights reserved
MRP I & MRP II in Eresource
Eresource Enterprise Solution promises you to connect your whole organization, all your
branches, all business functions, all departments, all machines under a common system.
Eresource ERP for manufacturing comprises all business functions including, purchase and
supplier management, sales and material management, warehouse management, production
management, finance and accounting management, HR management, customer management,
inventory management etc...

In manufacturing, the most critical is managing the inventory. In Material requirement planning
the most critical is MRP MRP II and I.

MRP I that means Material requirement planning. MRP II that means manufacturing resource
planning.

MRP I for eresource it means what material is required, how much it is required, when it is
required. And MRP II it means what product needs to be produced, how much is needed to be
produced and when it is needed to be produced.

After the Production Plan in eresource is Executed, the next step is the Batch Plan or Getting
the order in the line of production. Below image depicts the transaction of Batch Plan.




    10                                © 2010 eresource Infotech Private Limited. All rights reserved
Work flow on MRP I & MRP II in eresource ERP.




Resource Planning                  Sales & Operation Management                   Demand Management




                                    Master Production Schedule                    MRP II




                                    Detailed Material & Capacity                  MRP I
                                              Planning




                                        Supplier Operations



    The data for sales and operation management comes from resource planning and demand
    management. Demand management is refers to sales forecast and planning of resource.

    Now on the bases of sales and production management there is a master production schedule
    is created. From master production schedule there is detailed material & capacity planning. And
    from detailed material planning finally there is supplier operation. By supplier operation we refer
    to procurement process.

    Do I need of Master schedule Planning? And why master schedule planning in eresource ERP?
    A very critical and important reason is I am willingness to produce 10000 no. of X items. But
    whether or not I am capable to produce this system will help you out.

    On the bases of this parameter system generates your master production is schedule. Now in
    the master production schedule again these are some different parameters which check
    whether schedule is engaged or not.

    On the bases of all these parameters master productions schedule is created. In addition, from
    both of these parameters you have a detailed material and capacity planning. By material we

         11                                 © 2010 eresource Infotech Private Limited. All rights reserved
refer to MRP I that is, material requirement planning that says what material is required, how
much and when it is required. From master production schedule we refer to MRP II that is
manufacturing resource planning that says what product is need to be produced, how much and
when it is need to be produced.

Finally, out of these parameters you have supplier operation which is your procurement
operation.

So, that is how MRP I & MRP II in eresource work.


Daily Production Yield
The production module is made to record & analyze all the resource planning matters and other
day to day matters of the production units to keep a close watch on the plant, its efficiency &
smooth operation. The functions that are provided by this module are as below.


·     Production orders.

·     Recording of requisition slip.

·     Recording and forwarding of production slip.

·     Process recording.

·     Recording of production standards.

·     Wastage recording.

·     Damage recording.

·     Printing of requisition slip.

·     Printing of production slip.

·     Daily production recording, product / machine wise

Below screen depicts the Daily production record.




    12                                 © 2010 eresource Infotech Private Limited. All rights reserved
In the complete Production life cycle, it is very important to have visibility of the production
status. Eresource helps you have the visibility of the production, batch wise, job order wise,
sales order wise or on the basis of work order. Please find below the Work in progress screen.




    13                                  © 2010 eresource Infotech Private Limited. All rights reserved
Benefits of MRP Manufacturing Requirements Planning
The MRP system outputs a variety of information that can be used by the company, both for the
planning side and the management side of the factory operations. These outputs include order
release notices for the placement of orders that may have been planned by the MRP simulator
system.

   •   Minimize manufacturing cost and increase of resource utilization
   •   Cut down production bottlenecks
   •   On-time delivery performance
   •   Transparent operational control

The basic function of MRP system includes inventory control, bill of material processing and
elementary scheduling. MRP helps organizations to maintain low inventory levels. It is used to
plan manufacturing, purchasing and delivering activities.




    14                                 © 2010 eresource Infotech Private Limited. All rights reserved

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Mrpii manufacturing resource planning eresource

  • 1. MRP II Manufacturing Resource Planning, Production Planning Procedure in eresource
  • 2. An essential and concise guide to understanding MRPII Release 2.8 2 © 2010 eresource Infotech Private Limited. All rights reserved
  • 3. Copyright © Copyright 2011 ERESOURCE. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of eresource Infotech P. Ltd. The information contained herein may be changed without prior notice. Microsoft®, WINDOWS®, NT®, EXCEL®, Word®, PowerPoint® and SQL Server® are registered trademarks of Microsoft Corporation. HTML, DHTML, XML, XHTML are trademarks or registered trademarks of W3C®, World Wide Web Consortium, eresource, eresource Logo. Eresourceerp.com are trademarks or registered trademarks of eresource Infotech in India and several other countries all over the world. All other products mentioned are trademarks or registered trademarks of their respective companies. 3 © 2010 eresource Infotech Private Limited. All rights reserved
  • 4. Table of Contents Manufacturing resource planning in eresource ........................................................................................... 5 MASTER PRODUCTION SCHEDULE ................................................................................................................ 6 BILL-OF-MATERIALS. ..................................................................................................................................... 8 MRP I & MRP II in Eresource ....................................................................................................................... 10 Work flow on MRP I & MRP II in eresource ERP. ........................................................................................ 11 Daily Production Yield ................................................................................................................................. 12 Benefits of MRP Manufacturing Requirements Planning ........................................................................... 14 4 © 2010 eresource Infotech Private Limited. All rights reserved
  • 5. Manufacturing resource planning in eresource MRP II or Manufacturing Resource Planning by itself is the original modality of what we know now as ERP, and covered materials planning. This is part of eresource's ERP solution. MRP II is one of the evolution stages of eresource ERP and covers all the resources in a manufacturing company, with the additional ability to manage "what if" situations. MRP II module in eresource ERP helps to maintain a neat agenda for the manner in which the resources are to be allocated without any confusion. The interacting functions considered for this model are: Commercial Planning, Sales, Master Production Scheduling, Materials Resource Planning (MRP) and support systems for Capacity and Materials Execution. There is a scheduling capability within the heart of the solution that concentrates on the resources, such as the plant and equipment required to convert the raw materials into finished goods. The advantages of this development are that detailed plans can be put to the shop floor and can be reported on by operation, which offers much tighter control over the plant. For Companies assembling end items from Components produced in batch manufacturing processes, MRP is central to the development of detailed plans for part needs. It is often where companies start in developing their MPC systems. Facility with time-phased planning and the associated time-phased records is basic to understanding many other aspects of the MPC system. Finally, although introduction of JIT and investment in lean manufacturing processes have brought about fundamental changes in detailed material planning for some firms, companies continue to adapt the MRP approach or enhance their existing systems Eresource ERP helps you reduce the inventory material investment and improve productivity and customers by getting the right product at the right time to meet the schedules. Eresource MRP provides formal plans for each part number, wheter raw material, component, or finished good. With the MRP activity in eresource, you can make purchasing and production-scheduling decision based on real-time circumstances. 5 © 2010 eresource Infotech Private Limited. All rights reserved
  • 6. Resource Sales and Operation Demand Planning Planning Management Master Production Scheduling e r Bills of e Materials Detailed Material Planning Routing s Files Material and o Detailed Capacity Capacity Plans Planning u r Shop-floor Supplier and Systems Purchase Module c MRP provides you up-to-date item statistics, including on-hand quantities, current purchase orders, work orders, transfer orders, and other elements that affect planning decisions. MASTER PRODUCTION SCHEDULE Eresource MPS is the plan that a company has developed for production, inventory, staffing, etc. It sets the quantity of each end item to be completed in each week of a short-range planning horizon. A Master Production Schedule is the master of all schedules. It is a plan for future production of end items The eresource Master Production Schedule gives production, planning, purchasing, and top management the information needed to plan and control the manufacturing operation. The application ties overall business planning and forecasting to detail operations through the Master Production Schedule. 6 © 2010 eresource Infotech Private Limited. All rights reserved
  • 7. Eresource Gives a detail understanding of the Production schedule and visibility of production and inline orders in just one screen. The Production schedule in eresource can also be viewed in graphical form, as displayed below. 7 © 2010 eresource Infotech Private Limited. All rights reserved
  • 8. BILL-OF-MATERIALS. The bill of material (BOM) is an instrument for describing the structure of a product for any of the following production types: • Repetitive manufacturing • Manufacturing products with variants • Process manufacturing • Make-to-order production In eresource, you can also maintain bills of materials for sales orders, projects, equipment, and documents. Four forms of the basic BOM are supported in Production Planning and Control (PP). They may be created at any time by extending a simple BOM: 8 © 2010 eresource Infotech Private Limited. All rights reserved
  • 9. Simple BOM --- one rigidly defined bill of material associated with one material • Multiple BOM --- a set of bill of materials describing each of several different production processes, constituents, or relative quantities of components, all of which produce the same material. There several ways of making the same thing. • One time BOM —a bill of material for a specific sales order that is used in make- to-order production. • Configurable BOM - a bill of material that is configured automatically on the basis of logical links. It is used for complex variant structures or process- dependent BOM configuration in continuous flow production. Data for MRP is inherited from the BOM. The standard BOM in eresource captures Ingredient information with standard consumption, wastage, overage and gross consumption. BOM can be further configured or changed on the basis of order. 9 © 2010 eresource Infotech Private Limited. All rights reserved
  • 10. MRP I & MRP II in Eresource Eresource Enterprise Solution promises you to connect your whole organization, all your branches, all business functions, all departments, all machines under a common system. Eresource ERP for manufacturing comprises all business functions including, purchase and supplier management, sales and material management, warehouse management, production management, finance and accounting management, HR management, customer management, inventory management etc... In manufacturing, the most critical is managing the inventory. In Material requirement planning the most critical is MRP MRP II and I. MRP I that means Material requirement planning. MRP II that means manufacturing resource planning. MRP I for eresource it means what material is required, how much it is required, when it is required. And MRP II it means what product needs to be produced, how much is needed to be produced and when it is needed to be produced. After the Production Plan in eresource is Executed, the next step is the Batch Plan or Getting the order in the line of production. Below image depicts the transaction of Batch Plan. 10 © 2010 eresource Infotech Private Limited. All rights reserved
  • 11. Work flow on MRP I & MRP II in eresource ERP. Resource Planning Sales & Operation Management Demand Management Master Production Schedule MRP II Detailed Material & Capacity MRP I Planning Supplier Operations The data for sales and operation management comes from resource planning and demand management. Demand management is refers to sales forecast and planning of resource. Now on the bases of sales and production management there is a master production schedule is created. From master production schedule there is detailed material & capacity planning. And from detailed material planning finally there is supplier operation. By supplier operation we refer to procurement process. Do I need of Master schedule Planning? And why master schedule planning in eresource ERP? A very critical and important reason is I am willingness to produce 10000 no. of X items. But whether or not I am capable to produce this system will help you out. On the bases of this parameter system generates your master production is schedule. Now in the master production schedule again these are some different parameters which check whether schedule is engaged or not. On the bases of all these parameters master productions schedule is created. In addition, from both of these parameters you have a detailed material and capacity planning. By material we 11 © 2010 eresource Infotech Private Limited. All rights reserved
  • 12. refer to MRP I that is, material requirement planning that says what material is required, how much and when it is required. From master production schedule we refer to MRP II that is manufacturing resource planning that says what product is need to be produced, how much and when it is need to be produced. Finally, out of these parameters you have supplier operation which is your procurement operation. So, that is how MRP I & MRP II in eresource work. Daily Production Yield The production module is made to record & analyze all the resource planning matters and other day to day matters of the production units to keep a close watch on the plant, its efficiency & smooth operation. The functions that are provided by this module are as below. · Production orders. · Recording of requisition slip. · Recording and forwarding of production slip. · Process recording. · Recording of production standards. · Wastage recording. · Damage recording. · Printing of requisition slip. · Printing of production slip. · Daily production recording, product / machine wise Below screen depicts the Daily production record. 12 © 2010 eresource Infotech Private Limited. All rights reserved
  • 13. In the complete Production life cycle, it is very important to have visibility of the production status. Eresource helps you have the visibility of the production, batch wise, job order wise, sales order wise or on the basis of work order. Please find below the Work in progress screen. 13 © 2010 eresource Infotech Private Limited. All rights reserved
  • 14. Benefits of MRP Manufacturing Requirements Planning The MRP system outputs a variety of information that can be used by the company, both for the planning side and the management side of the factory operations. These outputs include order release notices for the placement of orders that may have been planned by the MRP simulator system. • Minimize manufacturing cost and increase of resource utilization • Cut down production bottlenecks • On-time delivery performance • Transparent operational control The basic function of MRP system includes inventory control, bill of material processing and elementary scheduling. MRP helps organizations to maintain low inventory levels. It is used to plan manufacturing, purchasing and delivering activities. 14 © 2010 eresource Infotech Private Limited. All rights reserved