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.
Material requirements planning (MRP) is a computer-based inventory management system designed to assist production managers in scheduling and placing orders for items of dependent demand.
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.
Material requirements planning (MRP) is a computer-based inventory management system designed to assist production managers in scheduling and placing orders for items of dependent demand.
SAP Production Planning and Execution presentationAnkur Aggarwal
SAP PP (Production Planning) encompass all activities like Material Requirement Planning (MRP), Bills of Material (BOM), Routings, Automatic material requisitions based on MRP, capacity planning. Production Planning module is fully integrated with other SAP Modules
Material requirement planning - Production and Operation ManagementSuryakumar Thangarasu
A production planning, scheduling and inventory control system, manages manufacturing process.
Ensures availability of materials for production and delivery to customers.
Maintains lowest possible material in the store.
Plans manufacturing activities and delivery schedule.
This topic is related to Material requirement planning, MRP.
Types of material requirement planning
Benefits of MRP. Limitation of MRP, Objective of MRP, MRP Input, MRP Output, Steps of MRP
SAP Production Planning and Execution presentationAnkur Aggarwal
SAP PP (Production Planning) encompass all activities like Material Requirement Planning (MRP), Bills of Material (BOM), Routings, Automatic material requisitions based on MRP, capacity planning. Production Planning module is fully integrated with other SAP Modules
Material requirement planning - Production and Operation ManagementSuryakumar Thangarasu
A production planning, scheduling and inventory control system, manages manufacturing process.
Ensures availability of materials for production and delivery to customers.
Maintains lowest possible material in the store.
Plans manufacturing activities and delivery schedule.
This topic is related to Material requirement planning, MRP.
Types of material requirement planning
Benefits of MRP. Limitation of MRP, Objective of MRP, MRP Input, MRP Output, Steps of MRP
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
Beginners Guide to Production Management - In Tamil LanguageAnanth Palaniappan
This presentation is aimed at helping small and medium businesses in their Production / Operations Management. The module starts with an introduction to the function, Roles and Responsibilities of executives in the function, Key tools and methodologies, Lean Manufacturing Principles (including 5S) and various templates for MIS analysis. This Presentation is in Tamil Language. Please visit www.businessense.in to download this document.
SAP PP stands for Production Planning. In SAP domain, SAP PP works as an integral part of logistics modality and it is integrated with other SAP modules like Materials Management (MM) and Plant Maintenance (PM). As production planning is an essential part of a company’s supply chain, SAP PP certified professionals are in great demand. Global Online Trainings conducts online SAP PP training for professionals willing to explore their career in SAP production and planning stream.
well,
This presentation gives very breif insight into SAP basics for noobs or dummies as i may call them (like me)
nevertheless i presume this is not an elegant presentation ....
A study of Materials Requirement Planning as a Push strategy tool in production management. How does MRP system help in logistics management ? Understanding the MRP replenishment concept with the use of manufacturing a pen as an example. Break-down of the bill of materials of manufacturing a pen.
2. What is MRP?
MRP Input:
Master Production Schedule (MPS)
Bill of Materials (BOM)
MRP Processing & Output
Exploding
Netting
Offsetting
Advantages & Disadvantages of MRP
Manufacturing Resource Planning (MRPII)
3. Controls inventory levels, plans
production & helps with
manufacturing control system of
production of assembled parts to
support forecasted demand
What is Material Requirements
Planning?
4. What is MRP?
Developed in 1960s
Used in manufacturing
Achieve low per unit costs
Objectives
Improve customer service
Reduce inventory investment
Improve plant operating efficiency
Quantity
Schedule
7. MRP Input: Master Production
Schedule
Inputs
Forecasts
Aggregate Plan
Company policies
Inventory File
Take capacity from
aggregate plan & allocate
Short-range
Cost-driven
Description
Item Canopy
Item No. 8479
Item Type Manuf.
Product/sales class Ass’y
Value class B
Buyer/planner RB
Vendor/drawing 07142
Phantom code G
Unit price/cost 15
Pegging Y
LLC 3
Physical Inventory
On hand 20
Location Y352
On order 50
Allocated 75
Cycle 5
Difference 4
Inventory
File
8. MRP Input: MPS
Computerized MPS
Inputs: forecast, safety stock,
inventory status & lot sizes
Calculates: temporary MPS
Compares: against load & capacity
Outputs
Rough Cut Capacity Plan
9. MRP Input: Bill of Materials
Raw materials, assemblies,
components, and the
quantities of each needed
to manufacture an end item
4 Different Contexts:
Engineering
Manufacturing
Sales
Service
3 Different Formats
Single-Level
Indented
Modular
10. MRP Input: BOM Contexts
Engineering BOM
Used as products are designed
Manufacturing BOM
Used as products are built
Sales BOM
As products are ordered
Service BOM
As products are maintained
11. MRP Input: BOM Formats
Single Level BOM
Indented BOM
Modular BOM
XYZ Umbrella Company
Bill of Material, Part PH01
Part
Number
Description Qty for Each
Assembly
Unit of
Measure
B100 Base 1 Each
1100 Panel 4 Each
1200 Panel 4 Each
1300 Cross Piece 2 Each
1400 Base Support Bars 4 Each
P100 Receiving Pole 1 Each
1500 Pole 1 Each
1600 Washer 1 Each
1700 Bolt 1 Each
1800 Netting 1 Each
1900 Sand Bag 1 Each
2000 Cover Board 1 Each
C100 Canopy 1 Each
2100 Pole Assembly 1 Each
2200 Button 1 Each
XYZ Umbrella Company
Bill of Material, Part PH01-Umbrella
Part
Number
Description Qty for Each
Assembly
Unit of
Measure
B100 Base 1 Each
P100 Receiving Pole 1 Each
C100 Canopy 1 Each
12. MRP Processing & Output
MRP Matrix 4 basic steps
Exploding Bill of Materials
Netting out Inventory
Determining how many
units are required
Time-phasing for future
demand & supply
Item: Low-
Level Code:
Lot Size:
Lead Time:
PD 1 2 3 4 5
Gross Requirements
Scheduled Receipts
Projected on Hand
Net Requirements
Planned Order Receipts
Planned Order Releases
13. MRP Processing
Explodes MPS into
amount of
Raw materials
Parts
Subassemblies
Assemblies
Netting
Order quantity needed
Offsetting
Sufficient time to build
goods
Needed in each week
of the planning
horizons
14. MRP Processing: Explosion
Offset
Umbrella
Base (1)
Receiving
Pole (1)
Canopy
(1)
Panel A (4)
Panel B (4)
Cross Pieces (2)
Base Support Bars (4)
Pole (1)
Washer (1)
Bolt (1)
Water/Sand Bag (1)
Cover Board (1)
Pole Assembled (1)
Canopy Button (1)
Flat (2)
Round (2)
17. Advantages of MRP
Minimize Inventory
Accurate Information
Greater
Responsiveness to
Market
Future Capacity
Planning
Production
Planners/Managers
Plant Foremen
Customer Service
Representative
Purchasing Manager
Inventory Manager
Company Advantages Individual Advantages
18. Disadvantages of MRP
Reliance on Information
Increased Material Costs
Hazard of Production Slowdown or Shutdown
Hazard of Stock Out
Doesn’t account for Plant & Distribution Capacity
Implementation Difficulties
19. Evolution of MRP: MRPII
http://sapplanning.wordpress.com/2008/01/31/material-master-mrp-
tabs/
20. MRPII: Manufacturing Resource
Planning
Developed 1980s
Extended to include Materials, Finance, HR & Plant Capacity
MPS develops MRP
Integrates machine & labour capacity
Provides schedule of production
Runs according to when materials arrive
Data on cost of production
Machine time, labour time & materials provided to finance
21. MRPII: Advantages &
Disadvantages
Includes shop floor
feedback & adjusts
accordingly
Capacity taken into
consideration
Integrates information
throughout company
Integration problems
Often limited to one
location
No supply chain
capabilities
Advantages Disadvantages
22. In Conclusion
Backward scheduling process for materials
Drastically increased efficiency & decreased
inventory upon implementation
Morphed into MRPII
Replaced by more integrated ERP system
24. References
Alexander, Dusty. "Integrating Engineering And Manufacturing Bill Of Material (BOM) Through ERP Software
Solutions." Ezine Articles. 2007. Global Shop Solutions. 21 Mar 2009
<http://ezinearticles.com/?Integrating-Engineering-And-Manufacturing-Bill-Of-Material-(BOM)-Through-
ERP-Software-Solutions&id=487112>.
Bicheno, John & Elliot, Brian B.R. ‘Managing Demand and Supply of Materials: MRP.’ Operations Management: An
Active Approach to Learning. Malden, MA: Blackwell, 1997.
Clancy, Jon. "Engineering Bill of Materials." CIRAS News Vol 32. No 1.1997 21 Mar 2009
<http://www.ciras.iastate.edu/publications/CIRASNews/fall97/bom.html>.
Gaither, Norman. ‘Resource Requirements Planning Systems.’ Production and Operations Management. 6th ed.
Orlando, FL: Dryden Press, 1994.
Greasley, Andrew. ‘MPR, JIT and OPT.’ Operations Management in Business. London: Stanley Thornes, 1999.
"Master Scheduling: An Overview." MCTS . March 2009. 21 Mar 2009 <http://www.mcts.com/Master-
Scheduling.html>.
Mazzola, Joseph et al. ‘Multistage Manfacturing System: Material Requirements Planning.’ Operations Management:
Production of Goods and Services. 3rd ed. Englewood Cliff, NJ: Prentice-Hall, 1992.
25. References
Mbaya, Martin. "The Constraints and Limitations of Manufacturing Resource Planningas
A Tool For Shop Control." Jun 2000 19 Mar 2009
<http://dspace.mit.edu/bitstream/handle/1721.1/28226/47981810.pdf?sequence=1>.
Pandey, P.C.. "MRP II Should its Simplicity Remain Unchanged." Industrial Management
01 05 1996 19 Mar 2009 <http://www.allbusiness.com/specialty-business/579473-
1.html>
"Product Structure and Bill of Materials." Conflow Project. March 2009. DRM Associates.
23 Mar 2009 <http://www.npd-solutions.com/bom.html>.
"Sales BOM Implementation." SAP . March 2009. SAP Basis, ABAP Programming . 23
Mar 2009 <http://www.sap-img.com/sap-sd/sales-bom-implementation.htm>.
Sirapobthada, Pantit. IT for Productions & Manufacturing. <http://www.slideshare.net/>
12 March 2009.
Editor's Notes
Inputs to MPS: Forecast (expected demand, past sales) and Aggregate Planning (resources needed & available, lead time, safety stock)
Policies: level, chase, backorders or not, hire/fire or not, etc
RCCP: compare labour, capital & resources to MPS
Computerized due to conflicting/interacting schedules
(dependent demand – lumpy - batches)
Were it independent demand, one could simply use EOQ
Inventory File & BOM: structural inputs
Any changes that affect product structure fed thru BOM
Netting: gross requirements – inventory on hand – inventory ordered
gross & net – most important, involved in netting
Shop floor – how machines loaded in next couple wks
Exceptions – action notices
Rescheduling can be accommodated in the ‘Open’ time frame from the MPS
Advantages:
Inv – carrying costs – insurance, obsolete, theft
Material requirements – correct time and material can be allocated appropriately since known
Production Planner - balance work loads across departments and make decisions about scheduling work
plant foremen - for issuing work orders and maintaining production schedules
Customer Service Representative - supply customers with projected delivery dates
Disadvantages:
Increased Material Costs – transportation costs, unit costs
Reliance – missing parts, excessive order, delays, missed delivery date – must have at least accurate MPS with good lead time estimates, current inv records,
Implementation Difficulties – time, costs, resistance