In this presentation, we will discuss material planning systems and its evolution. Overview on MRP processes, its objectives and types of demands. We will also talk about the various terminologies like bills of material, inventory record, operating logics, MRP explosion process, capacity requirement planning.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit: http://www.welingkaronline.org/distance-learning/online-mba.html
This document discusses inventory management. It defines inventory as stock used in an organization, including raw materials, spare parts, and finished goods. It describes different types of inventories like movement, buffer, anticipation, and decoupling inventories. It also discusses inventory costs including purchase, ordering, carrying, and stockout costs. Finally, it covers economic order quantity models and different analysis methods for classifying inventory items.
Inventory management involves tracking and controlling a company's stock of raw materials, work-in-progress, and finished goods. Effective inventory management requires balancing inventory investment with customer service levels. Key aspects of inventory management include classifying inventory using techniques like ABC analysis, planning inventory needs using models like MRP, and controlling inventory through periodic or perpetual counting systems. The overall goal is meeting customer demand while minimizing total inventory costs.
This document provides an overview of warehouse and inventory management. It discusses the reasons for warehousing, including supporting customer service and supply continuity. The document outlines key warehouse operating principles like design, handling technology, and storage planning. It also describes common warehouse activities, types of warehouses, and factors to consider in warehouse location strategies. Finally, the document defines inventory management and discusses inventory classification, record keeping, categories of inventory like safety stock and cycle stock, and the goals of holding inventory.
Inventory management is important for businesses to control costs and meet customer demand. It involves setting minimum, maximum, and reorder stock levels to prevent overstocking or understocking. Maintaining proper stock levels allows a business to monitor market trends, track available storage space, and ascertain which items are selling well versus those that require more or less ordering. Effective inventory management also helps reduce theft and waste while ensuring production can continue smoothly.
MRP is a system used for planning and scheduling time-phased materials requirements for production operations. If the delivery schedule for end products is known, the requirements for lower-level work-in-process items and raw materials can be planned through simple arithmetic calculations. MRP is an inventory control system that releases manufacturing and purchase orders at the right time to support the master schedule and control work-in-process and raw material inventories through timely order placement, but it does not include capacity planning.
Goods issue procedure, control and documentationNavindu Munidasa
This document discusses procedures for issuing goods from a storehouse in an efficient manner. It describes various methods for authorizing issues, identifying requirements, picking orders, timing issues, and documenting the issuing process. Different types of material issues are also outlined such as issues of capital expenditure, direct materials, components, and indirect materials. The document stresses the importance of monitoring issue functions through regular checks and updates to stock records to maintain control over available inventory levels.
This document discusses inventory management and analysis. It defines inventory as materials that are stocked for sale, in the process of manufacturing, or as raw materials. Effective inventory control is important for smooth production. Reasons for keeping inventory include stabilizing production, taking advantage of price discounts, meeting demand during replenishment periods, preventing lost sales, and adapting to changing market conditions. The document also discusses inventory models, economic order quantity models, and how to minimize total inventory costs.
This document discusses inventory management. It defines inventory as stock used in an organization, including raw materials, spare parts, and finished goods. It describes different types of inventories like movement, buffer, anticipation, and decoupling inventories. It also discusses inventory costs including purchase, ordering, carrying, and stockout costs. Finally, it covers economic order quantity models and different analysis methods for classifying inventory items.
Inventory management involves tracking and controlling a company's stock of raw materials, work-in-progress, and finished goods. Effective inventory management requires balancing inventory investment with customer service levels. Key aspects of inventory management include classifying inventory using techniques like ABC analysis, planning inventory needs using models like MRP, and controlling inventory through periodic or perpetual counting systems. The overall goal is meeting customer demand while minimizing total inventory costs.
This document provides an overview of warehouse and inventory management. It discusses the reasons for warehousing, including supporting customer service and supply continuity. The document outlines key warehouse operating principles like design, handling technology, and storage planning. It also describes common warehouse activities, types of warehouses, and factors to consider in warehouse location strategies. Finally, the document defines inventory management and discusses inventory classification, record keeping, categories of inventory like safety stock and cycle stock, and the goals of holding inventory.
Inventory management is important for businesses to control costs and meet customer demand. It involves setting minimum, maximum, and reorder stock levels to prevent overstocking or understocking. Maintaining proper stock levels allows a business to monitor market trends, track available storage space, and ascertain which items are selling well versus those that require more or less ordering. Effective inventory management also helps reduce theft and waste while ensuring production can continue smoothly.
MRP is a system used for planning and scheduling time-phased materials requirements for production operations. If the delivery schedule for end products is known, the requirements for lower-level work-in-process items and raw materials can be planned through simple arithmetic calculations. MRP is an inventory control system that releases manufacturing and purchase orders at the right time to support the master schedule and control work-in-process and raw material inventories through timely order placement, but it does not include capacity planning.
Goods issue procedure, control and documentationNavindu Munidasa
This document discusses procedures for issuing goods from a storehouse in an efficient manner. It describes various methods for authorizing issues, identifying requirements, picking orders, timing issues, and documenting the issuing process. Different types of material issues are also outlined such as issues of capital expenditure, direct materials, components, and indirect materials. The document stresses the importance of monitoring issue functions through regular checks and updates to stock records to maintain control over available inventory levels.
This document discusses inventory management and analysis. It defines inventory as materials that are stocked for sale, in the process of manufacturing, or as raw materials. Effective inventory control is important for smooth production. Reasons for keeping inventory include stabilizing production, taking advantage of price discounts, meeting demand during replenishment periods, preventing lost sales, and adapting to changing market conditions. The document also discusses inventory models, economic order quantity models, and how to minimize total inventory costs.
Purchasing and procurement in Material managementKaustubh Vartak
Purchasing is a subset of procurement. Purchasing generally refers simply to buying goods or services. Purchasing often includes receiving and payment as well.
This document defines inventory and discusses inventory control. It defines inventory as raw materials, work in progress, and finished goods. Inventory control aims to maintain optimal inventory levels for smooth operations. Inventories are classified and objectives of inventory control include avoiding over/under investment and providing the right goods at the right time. Operating objectives focus on availability, minimizing waste, and customer service, while financial objectives focus on costs. Inventory management aims to balance ordering costs, carrying costs, and stockout costs.
Inventory management plays a significant role in working capital management. It involves activities related to acquiring, storing, and using raw materials, work-in-progress, and finished goods. The objectives of inventory management are to maintain optimal levels of inventory to ensure smooth production and meet sales demands while minimizing investment costs. Effective inventory management requires balancing inventory levels to avoid under- or over-investment and using techniques like EOQ, reorder points, and ABC analysis to classify inventory items and determine optimal order quantities.
This document discusses inventory management. It defines inventory as materials obtained in advance of need that are held until used or sold. There are different types of inventories like raw materials, work in progress, spare parts, and finished goods. Inventory valuation involves determining inventory quantities and assigning values. Holding inventory incurs costs like storage, ordering, shortages. The objectives of inventory control are to ensure smooth operations while minimizing costs and risks through techniques like determining economic order quantities and stock levels.
The document discusses inventory control, which involves maintaining desired inventory levels to balance economic and production needs. It describes different types of inventory like raw materials, work in progress, and finished goods. Effective inventory control requires planning inventory levels, ordering, receiving, storing, and recording inventory. Key aspects of inventory control include determining maximum and minimum inventory levels, reorder points, and economic order quantities.
Concept of inventory, need for inventory, types of inventory, Seasonal, Decoupling, Cyclic, Pipeline, Safety, Implications of Inventory Control Methods Inventory Costs: Concept & Behavior of Ordering cost, Carrying cost & Shortage cost Basic EOQ Model & EOQ with Discount
This document provides an overview of inventory control. It defines inventory as physical stock of goods or materials kept by an organization. Inventory control aims to manage inventory movement from procurement to finished goods in an efficient manner. The objectives of inventory control are to meet demand and smooth production fluctuations at minimum cost. Inventories are classified as direct materials, work-in-process, finished goods, spare parts, and indirect materials. Common inventory control systems discussed include periodic review systems, fixed order quantity systems, ABC analysis, and economic order quantity models.
The document provides an overview of inventory management. It discusses the types of inventories including raw materials, work in progress, and finished goods. It describes the functions of inventory including meeting demand, smoothing production, and protecting against stock-outs. It also discusses inventory performance measures, counting systems, key terms, classification systems, and inventory models including economic order quantity, reorder point, and periodic review systems. The document provides insights into effective inventory management.
The document summarizes the key aspects of the purchasing process. It describes the functions of purchasing as handling routine work, supporting decision-making, and assisting with reporting. It outlines the internal perspective of the purchasing process flow. It discusses how purchasing fits within an organization's supply chain and the benefits of managing the supply chain. It also notes potential problems that can occur in supply chain management initiatives and ways to mitigate these issues.
This document discusses inventory management and control in production and operations. It begins with introducing inventory and inventory systems. It then covers various inventory management topics like types and classification of inventory, inventory control tools, valuation methods, economic order quantity, reorder point, economic production quantity, ABC analysis, and Just in Time systems. The document compares the Japanese and US approaches to Just in Time and concludes with reinforcing the importance of effective inventory management.
Inventory management refers to the process of ordering, storing, using, and selling a company's inventory, including raw materials, components, and finished products. It aims to have the right amount of inventory to meet customer needs without overinvesting, and involves demand planning, determining optimal inventory levels, inventory tracking and control, and periodic counting.
The document discusses retail inventory management and the key challenges involved. It describes the process of replenishing inventory from the factory to the wholesaler to the distributor and finally to the retailer. Problems can occur due to production delays, shipping delays, or customers withdrawing items. The goal of inventory management is to facilitate the flow of goods while minimizing costs. It aims to stock the right products and maintain optimal inventory levels.
Kattareeya Prompreing
白雅欣
iD:DA61G209
(Student in Ph.D. Business and Management, College Business, STUST
email:da61g209@stust.edu.tw
: katt.rmutl@gmail.com
Linear programming formulation in inventory management decision problems with...Asaye Dessie
This document discusses linear programming formulations for inventory management decision problems with service constraints under uncertainty. It addresses situations where the probability distribution of demand during lead times is incompletely known. The document defines two key performance measures - expected shortage per replenishment cycle and probability of stock-out during lead time. It states that when distribution information is incomplete, these measures can only be bounded rather than determined with a single value. The document proposes formulating an optimization model to determine a safety stock level that guarantees meeting the performance measures under the worst case lead time demand scenario.
The document outlines the purchase cycle process used by companies. It involves 7 main steps: 1) receiving and analyzing purchase requisitions, 2) selecting suppliers and requesting quotations, 3) determining the right price, 4) issuing purchase orders, 5) following up on deliveries, 6) receiving and accepting goods, and 7) approving invoices for payment. The goal of the purchasing process is to obtain the required goods and services at the lowest possible cost, best service, and on time, while maintaining supplier relationships. The case study then provides an example purchase process used by an Indian welded wire mesh manufacturer.
This document discusses inventory management. It defines inventory as raw materials, work-in-process goods, and finished goods ready for sale. It notes that inventory is an important asset for businesses as it represents a primary source of revenue. The document outlines the functions of inventory, including meeting anticipated demand and guarding against stock-outs. It also discusses inventory costs like ordering costs, holding costs, and stockout costs. Finally, it introduces the concept of economic order quantity, which is the order size that minimizes total inventory costs.
This document discusses integrated materials management. It covers the key components of materials management including planning, sourcing, purchasing, moving, storing and controlling materials. The objectives of materials management are outlined as material selection, operating cost, consistent quality, continuity of supply, low cost of possession, high inventory turnover, vendor relations, standardization, and scientific systems and records. The integrated approach to materials management includes inventory control, purchasing, stores management, and materials planning and control. Various aspects of inventory control, purchasing systems, stores management functions, and materials planning and control functions are described.
This document provides an overview of inventory management techniques. It begins with defining inventory and its objectives. It then covers various inventory analysis methods like ABC analysis, which categorizes inventory items into A, B and C based on their value and demand. Other techniques discussed include FSN analysis to classify items based on consumption pattern, and make or buy decision analysis to determine whether to manufacture or outsource items. The document aims to explain key inventory management strategies and analysis methods used by companies.
Rough cut capacity planning (RCCP) is a long-term capacity planning process that companies use to ensure their master production schedule does not overplan production beyond available resources. Managers receive direction from the master production schedule and delegate responsibilities to employees to accomplish the schedule, while workers receive direction from managers on which resources to use to produce the goods dictated by the managers using materials, tools, and machinery.
Purchasing and procurement in Material managementKaustubh Vartak
Purchasing is a subset of procurement. Purchasing generally refers simply to buying goods or services. Purchasing often includes receiving and payment as well.
This document defines inventory and discusses inventory control. It defines inventory as raw materials, work in progress, and finished goods. Inventory control aims to maintain optimal inventory levels for smooth operations. Inventories are classified and objectives of inventory control include avoiding over/under investment and providing the right goods at the right time. Operating objectives focus on availability, minimizing waste, and customer service, while financial objectives focus on costs. Inventory management aims to balance ordering costs, carrying costs, and stockout costs.
Inventory management plays a significant role in working capital management. It involves activities related to acquiring, storing, and using raw materials, work-in-progress, and finished goods. The objectives of inventory management are to maintain optimal levels of inventory to ensure smooth production and meet sales demands while minimizing investment costs. Effective inventory management requires balancing inventory levels to avoid under- or over-investment and using techniques like EOQ, reorder points, and ABC analysis to classify inventory items and determine optimal order quantities.
This document discusses inventory management. It defines inventory as materials obtained in advance of need that are held until used or sold. There are different types of inventories like raw materials, work in progress, spare parts, and finished goods. Inventory valuation involves determining inventory quantities and assigning values. Holding inventory incurs costs like storage, ordering, shortages. The objectives of inventory control are to ensure smooth operations while minimizing costs and risks through techniques like determining economic order quantities and stock levels.
The document discusses inventory control, which involves maintaining desired inventory levels to balance economic and production needs. It describes different types of inventory like raw materials, work in progress, and finished goods. Effective inventory control requires planning inventory levels, ordering, receiving, storing, and recording inventory. Key aspects of inventory control include determining maximum and minimum inventory levels, reorder points, and economic order quantities.
Concept of inventory, need for inventory, types of inventory, Seasonal, Decoupling, Cyclic, Pipeline, Safety, Implications of Inventory Control Methods Inventory Costs: Concept & Behavior of Ordering cost, Carrying cost & Shortage cost Basic EOQ Model & EOQ with Discount
This document provides an overview of inventory control. It defines inventory as physical stock of goods or materials kept by an organization. Inventory control aims to manage inventory movement from procurement to finished goods in an efficient manner. The objectives of inventory control are to meet demand and smooth production fluctuations at minimum cost. Inventories are classified as direct materials, work-in-process, finished goods, spare parts, and indirect materials. Common inventory control systems discussed include periodic review systems, fixed order quantity systems, ABC analysis, and economic order quantity models.
The document provides an overview of inventory management. It discusses the types of inventories including raw materials, work in progress, and finished goods. It describes the functions of inventory including meeting demand, smoothing production, and protecting against stock-outs. It also discusses inventory performance measures, counting systems, key terms, classification systems, and inventory models including economic order quantity, reorder point, and periodic review systems. The document provides insights into effective inventory management.
The document summarizes the key aspects of the purchasing process. It describes the functions of purchasing as handling routine work, supporting decision-making, and assisting with reporting. It outlines the internal perspective of the purchasing process flow. It discusses how purchasing fits within an organization's supply chain and the benefits of managing the supply chain. It also notes potential problems that can occur in supply chain management initiatives and ways to mitigate these issues.
This document discusses inventory management and control in production and operations. It begins with introducing inventory and inventory systems. It then covers various inventory management topics like types and classification of inventory, inventory control tools, valuation methods, economic order quantity, reorder point, economic production quantity, ABC analysis, and Just in Time systems. The document compares the Japanese and US approaches to Just in Time and concludes with reinforcing the importance of effective inventory management.
Inventory management refers to the process of ordering, storing, using, and selling a company's inventory, including raw materials, components, and finished products. It aims to have the right amount of inventory to meet customer needs without overinvesting, and involves demand planning, determining optimal inventory levels, inventory tracking and control, and periodic counting.
The document discusses retail inventory management and the key challenges involved. It describes the process of replenishing inventory from the factory to the wholesaler to the distributor and finally to the retailer. Problems can occur due to production delays, shipping delays, or customers withdrawing items. The goal of inventory management is to facilitate the flow of goods while minimizing costs. It aims to stock the right products and maintain optimal inventory levels.
Kattareeya Prompreing
白雅欣
iD:DA61G209
(Student in Ph.D. Business and Management, College Business, STUST
email:da61g209@stust.edu.tw
: katt.rmutl@gmail.com
Linear programming formulation in inventory management decision problems with...Asaye Dessie
This document discusses linear programming formulations for inventory management decision problems with service constraints under uncertainty. It addresses situations where the probability distribution of demand during lead times is incompletely known. The document defines two key performance measures - expected shortage per replenishment cycle and probability of stock-out during lead time. It states that when distribution information is incomplete, these measures can only be bounded rather than determined with a single value. The document proposes formulating an optimization model to determine a safety stock level that guarantees meeting the performance measures under the worst case lead time demand scenario.
The document outlines the purchase cycle process used by companies. It involves 7 main steps: 1) receiving and analyzing purchase requisitions, 2) selecting suppliers and requesting quotations, 3) determining the right price, 4) issuing purchase orders, 5) following up on deliveries, 6) receiving and accepting goods, and 7) approving invoices for payment. The goal of the purchasing process is to obtain the required goods and services at the lowest possible cost, best service, and on time, while maintaining supplier relationships. The case study then provides an example purchase process used by an Indian welded wire mesh manufacturer.
This document discusses inventory management. It defines inventory as raw materials, work-in-process goods, and finished goods ready for sale. It notes that inventory is an important asset for businesses as it represents a primary source of revenue. The document outlines the functions of inventory, including meeting anticipated demand and guarding against stock-outs. It also discusses inventory costs like ordering costs, holding costs, and stockout costs. Finally, it introduces the concept of economic order quantity, which is the order size that minimizes total inventory costs.
This document discusses integrated materials management. It covers the key components of materials management including planning, sourcing, purchasing, moving, storing and controlling materials. The objectives of materials management are outlined as material selection, operating cost, consistent quality, continuity of supply, low cost of possession, high inventory turnover, vendor relations, standardization, and scientific systems and records. The integrated approach to materials management includes inventory control, purchasing, stores management, and materials planning and control. Various aspects of inventory control, purchasing systems, stores management functions, and materials planning and control functions are described.
This document provides an overview of inventory management techniques. It begins with defining inventory and its objectives. It then covers various inventory analysis methods like ABC analysis, which categorizes inventory items into A, B and C based on their value and demand. Other techniques discussed include FSN analysis to classify items based on consumption pattern, and make or buy decision analysis to determine whether to manufacture or outsource items. The document aims to explain key inventory management strategies and analysis methods used by companies.
Rough cut capacity planning (RCCP) is a long-term capacity planning process that companies use to ensure their master production schedule does not overplan production beyond available resources. Managers receive direction from the master production schedule and delegate responsibilities to employees to accomplish the schedule, while workers receive direction from managers on which resources to use to produce the goods dictated by the managers using materials, tools, and machinery.
Capacity Requirements Planning (CRP) is a technique to project resource needs for workstations. It takes inputs like planned orders and outputs a load profile for each work center. The load profile compares released orders to work center capacity to identify underloads and overloads. CRP helps determine timing of capacity expansion using strategies like capacity lead, lag, or average. It also provides information to adjust capacity through methods like adding shifts or outsourcing work. The goal is to balance load and capacity to prevent bottlenecks.
Capacity management involves determining the capacity needed to meet production plans, providing that capacity, and monitoring and controlling capacity. It includes capacity planning, requirements planning, and control. Capacity planning calculates capacity needs, identifies ways to make capacity available, and balances capacity and load. Capacity requirements planning determines detailed resource needs at work centers to achieve production goals.
Material and capacity requirements planning (mrp and crp) part 2Dr. Mahmoud Al-Naimi
Lectures on Production Planning and Control for B.Sc. Students - Industrial Engineering Branch -Department of Production Engineering and Metallurgy- University of Technology - Baghdad -Iraq
Rough-cut capacity planning (RCCP) uses representative load profiles to evaluate key resources like work centers and ensure the feasibility of the master production schedule before detailed planning. It identifies potential capacity issues and initiates actions to adjust capacity. The resource profile technique converts the MPS to resource time requirements using standard times and lead time offsets. A master schedule is considered realistic if required capacity is no more than 10-20% above planned capacity based on utilization and efficiency factors. RCCP is an important part of production planning and control systems to develop achievable schedules and balance requirements with factory output.
In this presentation, we will understand about team roles for project, how to determine requirements activities and planning steps and understanding requirements risk approach. We will also discuss about identifying stakeholders, defining business analyst work division strategy, core business concepts, risk control, various related documentations and procedure of collecting product metrics.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit:
http://www.welingkaronline.org/distance-learning/online-mba.html
The document discusses materials planning and materials requirements planning (MRP). It explains that MRP is a production planning process that takes inputs like the master production schedule and bill of materials to determine requirements and timing for items. MRP helps control inventory levels, assign production priorities, and plan capacity. It generates work orders, purchase orders, and other reports to schedule item production and ordering. Accurate information is important for effective MRP.
The document discusses Material Requirement Planning (MRP), a systematic methodology for production planning and inventory control. MRP answers three key questions: what is needed, how much is needed, and when is it needed. It does this by collecting information from the master production schedule, bill of materials, and inventory data to generate planned order releases and time-phase requirements. MRP aims to reduce inventory levels and costs while maintaining customer service levels.
The document discusses various topics related to production planning and control, including demand forecasting, aggregate production planning, scheduling, workforce planning, materials requirement planning, capacity planning, production control using just-in-time, and shop-floor control. The objective of production planning and control is to make appropriate decisions around resource acquisition, utilization, and allocation given constraints. This includes determining workforce levels, production lot sizes, overtime assignments, and production sequencing.
This presentation discusses managing project resources. It defines resources as sources of supply or support, including human and capital resources. Human resources include project team members and stakeholders. Capital resources are tools and infrastructure used to produce goods and services. The presentation covers estimating and managing resource needs, and techniques for developing project schedules based on resource availability like critical path analysis and schedule compression. The goal is to understand resource types, their importance, and how to apply tools to effectively manage resources and project time.
Material requirement planning presentationjhanakshah
MRP is a computerized inventory control and production planning system that schedules component items as needed. It tracks inventory levels and helps improve many aspects of business operations like reducing costs and shortages, improving schedules and customer service. The key steps in MRP are identifying material requirements based on a bill of materials, product structure and master production schedule, running MRP to create production and purchasing suggestions, and firming those suggestions into orders.
The document discusses production planning in SAP. It covers key modules like sales and operations planning, master production scheduling, material requirements planning, bills of material, work centers, routings and operation costing. The goal of production planning is to integrate sales forecasts with manufacturing capabilities to generate production and procurement plans.
Our social media priorities for 2017 are to improve engagement by posting more meaningful content and actively engaging with users. Currently Facebook has the highest interactions per post but low engagement rates across all platforms. Objectives for 2017 include increasing engagement by 3% and replying to 45% of mentions. Strategies will include live streaming home tours and travel days to engage frequent users. Performance will be measured monthly by tracking increases in interactions, with goals of at least 3% more on Facebook and 0.5% on Twitter.
Resource management is the efficient deployment of an organization's resources for projects. It identifies the types and numbers of resources like labor, equipment, and materials needed to complete project tasks. Resource management includes identifying resources, leveling resources over time, tracking resource utilization, and estimating resource needs. In project management, it involves developing a human resource plan, acquiring the project team, and managing the project team to complete the work.
Resource requirements and cost estimationDave Jarman
The document discusses resource requirements and cost estimation for business startups. It recommends creating a cash flow forecast spreadsheet that estimates future bank balances, receipts, and payments on a monthly basis. Key elements to estimate include people costs like salaries, space rental costs, equipment costs, variable operating costs, annual costs, and sales forecasts which should incorporate probabilities. Creating an accurate cash flow forecast based on clear assumptions is important for management planning and identifying financing needs.
Mba ii pmom_unit-2.5 resource planning -mrp aRai University
The document discusses material requirements planning (MRP) systems. It explains that MRP translates a master schedule of finished goods into time-phased requirements for components by exploding bills of materials. MRP takes several inputs like the master production schedule, inventory records, and bills of materials to determine component requirements and planned order releases. The output includes schedules for internal activities, purchase orders, and action notices to trigger replenishment orders when needed. MRP aims to maintain priorities and coordinate production planning across the organization. An example demonstrates how MRP calculates component requirements from a master schedule for building CD cabinets.
Using Multi-facility MPS/MRP, it it possible to group demand into production (or purchasing) cycles to increase operational efficiency. This presentation shows how to achieve this workaround with standard R3483 though use of the Processing Options and Data Selection Item Branch data and Shop Floor Calendar.
Engineering review on AC circuit steady state analysis.
Presentation lecture for energy engineering class.
Course: MS in Renewable Energy Engineering, Oregon institute of technology
This document discusses factors to consider when selecting a facility location. It identifies primary factors like material, labor, and existing facilities that drive industrialization in an area. Secondary factors include available financing, infrastructure, and insurance. Location selection errors can be behavioral if personal factors outweigh business success, or non-behavioral from a lack of analysis or ignoring key industry characteristics. Developing a location strategy helps companies determine product offerings, demand forecasts, optimal manufacturing/service locations, and how to best access customers at minimum cost. Proximity to customers, available skilled labor, business-friendly policies, and supplier networks are also important location selection criteria.
The document provides an overview of resource planning systems like MRP and ERP. It describes the types of demand, evolution of material planning systems, and key components and processes of MRP like inputs, outputs, objectives, bills of materials, and lot sizing rules. It also discusses how ERP builds on MRP by integrating additional business functions for a holistic view of the organization. Benefits of ERP implementation include increased information flow and ability to replace disparate systems, though implementation requires significant costs, time, and management commitment.
Material Requirements Planning (MRP) is a computer-based inventory management system that helps determine requirements for dependent demand items. MRP uses three primary inputs - the master production schedule, bill of materials, and inventory records - to calculate gross requirements, scheduled receipts, net requirements, planned order receipts, and planned order releases for each time period. This allows companies to plan procurement and production of dependent demand items based on independent demand for end products.
The document discusses material requirements planning (MRP). It describes the key outputs of MRP as calculating demand for component items, determining requirements for subassemblies and raw materials, determining when they are needed, and generating work orders and purchase orders while considering lead time. The document then provides details on when to use MRP, the major inputs to the MRP process including bills of material and master production schedules, the basic steps of MRP including exploding bills of material and netting inventory, lot sizing rules, and time-phasing requirements. Examples are also provided to illustrate how to use an MRP matrix to determine planned order releases and receipts.
The document discusses key concepts in Material Requirements Planning (MRP), including:
1) MRP addresses the simultaneous probability problem by accounting for the likelihood that all components of an end item will be available at the same time for production.
2) Product structures, recurring requirements, multilevel items, and rescheduling open orders are challenges in computing accurate requirements in MRP.
3) Lot sizing techniques like lot-for-lot, economic order quantity, and period order quantity impact load levels at work centers.
4) Safety stocks are needed in MRP to address demand and supply variations; options include fixed quantity buffers, increasing safety lead times, or inflating gross requirements.
The document discusses key concepts in Material Requirements Planning (MRP), including:
1) MRP addresses the simultaneous probability problem by accounting for the likelihood that all component items will be available at the same time to produce the end item.
2) MRP computations are impacted by the product structure, recurring requirements within the planning horizon, multilevel items, and rescheduling open orders.
3) MRP involves decisions around regeneration vs. net change updates, lot sizing techniques, and establishing appropriate safety stocks.
- Material Requirements Planning (MRP) is a production planning and inventory control system that determines material requirements based on a master production schedule, bill of materials, and inventory status.
- MRP aims to ensure availability of materials for production while maintaining low inventory levels. It determines gross requirements, nets requirements based on inventory and scheduled receipts, and plans order releases over time.
- MRP can be improved by accounting for capacity constraints, dealing with uncertainty through safety stocks and lead time adjustments, and using different lot sizing rules at different levels.
1. Material Requirements Planning (MRP) is a computer-based production planning and inventory control system used to determine production and purchasing requirements.
2. MRP takes the master production schedule for end items and translates it into individual time-phased component requirements based on the product structure and lead times.
3. The MRP process involves establishing gross requirements, determining net requirements by subtracting inventory from gross requirements, time-phasing net requirements, and determining planned order releases.
The document describes Materials Requirements Planning (MRP) used by Collins Industries, a large ambulance manufacturer. MRP is a computerized inventory management system that uses a bill of materials, master production schedule, and inventory records to determine time-phased requirements for purchased and manufactured components. It accounts for dependent demand by translating finished good schedule requirements into planned order releases and receipts for subassemblies based on lead times. The example shows how MRP calculates net requirements, planned order receipts, and releases for school supply items like clipboards and desks over multiple periods based on their bills of material and demand forecasts.
This document provides an overview of material requirements planning (MRP). It defines MRP and its objectives to ensure materials and components are available for production. The document outlines the inputs, outputs, benefits and disadvantages of MRP. It describes key MRP concepts like the bill of materials, master production schedule, inventory status file and how MRP helps plan and schedule production to minimize costs and inventory. The conclusion is that MRP is an essential computer-based production planning and inventory control system for manufacturing companies.
Material Requirement planning (factors,inputs,outputs,benifits)razinbabaria786
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.
This document provides an overview of material requirements planning (MRP). It discusses how MRP is used to determine material needs by working backwards from a master production schedule based on lead times. An example is provided showing how MRP logic is applied to a sample product structure tree to generate a materials requirements plan specifying material needs and order dates. The document also discusses key aspects of MRP including bill of materials files and inventory records files.
MRP System Structure (Input and Output)
Master Production Schedule (MPS)
Bill of Material (BOM)
Inventory Records File
MRP Terminology
MRP Explosion Process
MRP Management
MRP and JIT
MRP is a production planning and inventory control system that uses a master production schedule, bill of materials, and inventory data to determine material requirements. It generates planned order releases to ensure materials and components are available when needed for production. Benefits of MRP include reduced inventory levels, faster production and delivery times, improved efficiency, and better ability to respond to changes. MRP determines requirements by calculating net requirements based on scheduled production and current inventory levels.
MRP (Material Requirements Planning) is a system used to plan for materials needs based on production schedules and inventory levels. It was developed in the 1960s and helps ensure availability of materials for production and delivery to customers while maintaining low inventory levels. The MRP process involves using a master production schedule, bill of materials, and inventory records to generate reports showing what materials are needed, how many, and when to support production needs. It aims to balance optimizing service levels and minimizing costs and capital tied up in inventory.
Material Requirements planning system 01Page to 04 PageHasibul Islam
MRP is a system that takes a master production schedule and bill of materials as inputs to determine material requirements and release order schedules. It calculates gross requirements, net requirements by considering on-hand inventory and scheduled receipts, and develops a production schedule. The key outputs are purchase orders, work orders, and rescheduling notices. Benefits include increased customer satisfaction, improved utilization, better inventory planning, and reduced inventory levels without reducing customer service. MRP is dependent on concepts like dependent demand, inventory netting, and time-phasing requirements based on lead times.
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.
The document discusses material requirements planning (MRP) which determines the components and quantities needed to produce items in the master production schedule. MRP explodes bills of material to calculate gross requirements and offsets them based on lead times. It then determines net requirements by subtracting inventory and scheduled receipts. Planned orders are created and either released as real orders if components are available or rescheduled if not. The goal is to keep priorities current and meet product requirements.
MRP-2 is an evolution of MRP that incorporates additional planning elements such as finances, sales, and integrated resource planning. MRP-2 uses a common database to integrate various business functions and allow for simulation of production schedules based on demand forecasts, inventory levels, bills of materials, and resource constraints. This provides benefits like improved scheduling, inventory control, and information flow. While MRP-2 enables more holistic planning than MRP-1, it also requires more complex implementation and recalculation if unexpected changes occur.
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Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...Dr. Vinod Kumar Kanvaria
Exploiting Artificial Intelligence for Empowering Researchers and Faculty,
International FDP on Fundamentals of Research in Social Sciences
at Integral University, Lucknow, 06.06.2024
By Dr. Vinod Kumar Kanvaria
Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...
Resource Requirement Planning
1. Production Planning
& Control
Chapter 3
Resource Requirement Planning
Chapter3 1
2. Evolution of Material Planning Systems
Back in the sixties, manufacturing planning systems
were reorder point systems that simply determined
when and how much to order
First MRP systems translated a master schedule of final
products into time-phased net requirements for
subassemblies, assemblies, and parts
Closed-loop MRP included production planning,
master scheduling, and capacity requirements
In mid 1970’s, MRPII systems added functionality to
plan and execute all internal functions
Chapter3 2
3. Material Requirements Planning
(MRP)
Computer-based information system that
schedules and orders dependent-demand
inventory components;
Uses the master production schedule, bills of
materials, and inventory records as inputs;
Outputs recommendations:
– When to release new orders.
– When to reschedule open orders.
Chapter3 3
4. An Overview of MRP
MRP uses the concept of backward scheduling to determine how
much and when to order and replenish
The CPR module checks to make sure the scheduled work load
profile is feasible
The MPS module contains the authorized schedule
The BOM module contains the product structure for each unique
product
The Inventory Record module keeps track of the inventory
status for each item in the database
MRP output includes schedules for all internal activities and
parts as well as orders for all supply chain items
Chapter3 4
8. MRP Inputs
1. A master production schedule
2. A Bill of Materials
3. An inventory records file
re
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Stru
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uc es
od
Pr e m
re d Ti
T ea
L
9.
10.
11. MRP Inputs
Bill of materials (BOM): a listing of all of
the raw materials, parts, subassemblies,
and assemblies needed to produce one unit
of a product.
Each finished product has its own bill of
materials.
Product structure tree: Visual depiction of
the requirements in a bill of materials,
where all components are listed by levels.
12. MRP Inputs
Bill of materials (BOM):
The BOM identifies, how each end product is
manufactured, specifying all subcomponent items,
their sequence of buildup, their quantities in each
finished unit, and which work centers perform the
buildup sequence in the facility.
This information is obtained from product design
documents, work flow analysis, and other standard
manufacturing and industrial engineering
documentation.
14. MRP Inputs
Inventory records:
Includes information on the status of each
item by time period:
•Gross requirements
•Scheduled receipts
•Expected amount on hand
•Lead time
•Lot size policy
•And more …
15. MRP Outputs
Planned orders - Schedule indicating
the amount and timing of future orders.
Order release - Authorization for the
execution of planned orders.
Changes - revisions of due dates or
order quantities, or cancellations of
orders.
16. MRP Outputs
Performance-control reports evaluate
system operations.
Planning reports are useful in forecasting
future inventory requirements.
Exception reports call attention to major
discrepancies.
17. Types of Demand
There are two types of demand.
Independent Demand
– Is the demand for finished products
– Does not depend on the demand of other products
– Needs to be forecasted
Dependent Demand
– Is the demand derived from finished products
– Is the demand for component parts based on the
number of end items being produced and is
managed by the MRP system
Chapter3 17
18. MRP
Responds to the fundamental manufacturing
equation:
– What are we going to make?
» Master production schedule.
– What does it take to make it?
» Bill of materials.
– What have we got?
» Inventory records.
– What do we have to get?
» Material Requirements plan: planned orders.
Chapter3 18
19. Objectives of MRP
Determines the quantity and timing of
material requirements
– Determines what to order (checks BOM), how
much to order (lot size rules), when to place the
order (needed date minus lead time), and when to
schedule delivery (on date needed)
Maintain priorities
– In a changing environment, MRP reorganizes
priorities to keep plans current and viable
Chapter3 19
21. MRP Inputs - Authorized MPS
From the authorized MPS, we calculate when we need to
have replenishment orders of CD cabinets; when we need a
new MPS order.
Table 14-1 Initial MPS Record for CD Cabinet
Item: CD Cabinet
Lot size rule: FOQ=100
Lead time: 1 week
1 2 3 4 5 6 7 8 9 10 11 12
Gross Requirements: 25 25 25 25 30 30 30 30 35 35 35 35
Projected Available: 80 55 30 5 -20
MPS
Table 14-2 Updated MPS Record for CD Cabinet
Item: CD Cabinet
Lot size rule: FOQ=100
Lead time: 1 week
1 2 3 4 5 6 7 8 9 10 11 12
Gross Requirements: 25 25 25 25 30 30 30 30 35 35 35 35
Projected Available: 80 55 30 5 80 50 20 90 60 25 90 55 20
Chapter3 21
MPS 100 100 100
22. MRP Inputs-Inventory Records
System checks the inventory record for each BOM item to see if
inventory is available or if a replenishment order is needed to build the
cabinets.
Table 14-3 First Inventory Record for CD Cabinet
Item: CD Cabinet
Lot size rule: L4L
Lead time: 1 week
1 2 3 4 5 6 7 8 9 10 11 12
Gross Requirements: 0 0 0 100 0 0 100 0 0 100 0 0
Scheduled Receipts:
Projected Available: 0 0 0 0 -100
Planned Orders
Table 14-4 Updated Inventory Record for CD Cabinet
Item: CD Cabinet
Lot size rule: L4L
Lead time: 1 week
1 2 3 4 5 6 7 8 9 10 11 12
Gross Requirements: 0 0 0 100 0 0 100 0 0 100 0 0
Scheduled Receipts:
Projected Available: 0 0 0 0 0 0 0 0 0 0 0 0 0
Planned Orders 100Chapter3 100 100 22
23. MRP Inputs-Bills of Material
A BOM lists all of the items
needed to produce one CD
cabinet
The BOM is exactly like a
recipe for baking a cake
The BOM’s must be
complete and accurate and
can only be changed by an
ECN
MRP BOM’s are indented
bills of materials
Chapter3 23
24. Bill of Materials (BOM)
Contains product description (components) and
sequence of assembly.
Also called product structure or product tree.
Levels: end item at 0, assemblies for end item at
1, subassemblies for assemblies at 2, etc.
Low-level coding: placing identical items used
for multiple purposes at the same level.
Chapter3 24
27. Inventory Record
Gross requirements:
– The total period demand for the item
Scheduled receipts:
– An open order with an assigned due date
Projected available:
– The projected inventory balance for the period
Planned orders:
– Quantities & released dates suggested by the
MRP system
Chapter3 27
28. MRP System Inputs
Master production Schedule
The MPS specifies what end products are to
be produced and when .
The planning horizon should be long enough
to cover the cumulative lead times all
components that must be purchased or
manufactured to meet the end product
requirement
Chapter3 28
29. Lot Sizing Rules
Rules are used to change the frequency of
replenishment orders & set the quantity of each
order (balance holding & ordering costs to
reduce total costs)
Common rules:
– Fixed Order Quantity (FOQ)
– Lot-for-Lot (L4L)
– Periodic Order Quantity (POQ)
Chapter3 29
30. MRP Terms
Time bucket: period, usually 1 week.
Planning horizon: number of periods.
Lead time offset: offsets a planned order release
from a required replenishment.
Net requirement: difference between the gross
requirements and the available inventory.
Chapter3 30
31. Definitions
End item:
– The product sold as a completed item or repair
part (an independently demanded item)
Parent items:
– Items produced from one or more “children”
Components:
– Raw materials & other items (“children”) that are
part of a larger assembly
Chapter3 31
32. Definitions
Time buckets:
– The column in an inventory record that represents a
unit of time
Action bucket:
– The current time period
Action notices:
– Output from the MRP system identifying the need
for an action (e.g.: expedite or delay an order or
receipt)
Chapter3 32
33. Example
Inventory Record for Pie Safe
Item: Pie Safe
Lot size rule: L4L
Lead time: 1 week
0 1 2 3 4 A 5Time Bucket
6 7 8 9 10 11 12
Gross requirements 0 0 0 100 0 0 100 0 0 100 0 0
Scheduled receipts 100 100 100
Projected available 0 0 0 0 0 0 0 0 0 0 0 0 0
Planned orders 100 100 100
Chapter3 33
34. Operating Logic
Explosion:
– Calculate the children’s time-phased gross
requirements by multiplying the parent item’s
planned order amount by the number of children
required to produce one parent item
Chapter3 34
35. The MRP Explosion Process
Table 14-6 Updated Inventory Record for CD Cabinet
Item: CD Cabinet Parent: none
Lot size rule: L4L Children: Top, bottom, door, left side, right side, shelves, shelf supports
Lead time: 1 week
1 2 3 4 5 6 7 8 9 10 11 12
Gross Requirements: 0 0 0 100 0 0 100 0 0 100 0 0
Scheduled Receipts:
Projected Available: 0 0 0 0 0 0 0 0 0 0 0 0 0
Planned Orders: 100 100 100
Using table 14-6 and the product structure tree, we will work
through an example of how the MRP explosion process would
calculate the requirements for building a CD cabinet. On the
next slide we start with the cabinet top to illustrate how MRP
calculates the gross requirements for this component.
Chapter3 35
36. Inventory Records - Components
It was noted on the previous slide that the parent item (CD Cabinet) has
planned orders in periods 3, 6, and 9.
Its children (top, bottom, door, left & right side, shelves, and supports)
have gross requirements in periods 3, 6, and 9.
Chapter3 36
43. Example Comparing Lot Size Rules: Three common lot sizing
rules used within MRP Systems are fixed order quantity (FOQ), lot for lot
(L4L), and period order quantity (POQ). Cost comparison is based on
Inventory holding costs ($0.10 per period) and ordering cost ($25 per
order). In this example POQ is best at $133.50.
Chapter3 43
44. Capacity Requirements
Planning (CRP)
Similar to rough cut capacity planning
CRP is a feasibility check on labor & machine
utilization:
– Compare the open orders & planned orders (from
the MRP) to the actual shop floor capacity
Chapter3 44
45. Rough Cut Capacity Example: The CRP module uses data from MRP. We
calculate workloads for critical work centers based on open shop orders and
planned shop orders. These shop orders are translated into hours of work by
work center and by time period.
Table 14-11 show items scheduled for work Center 101.
A B C D E F G
1 Table 14-11 Workload for Work Center 101
2 Run Time Total
3 Setup per Unit in Item Weekly
4 Item Time Standard Time Workload
5 Period Number Quantity (hours) Hours (hours) (hours)
6 4 DN100 250 3.0 0.20 53.0
7 DP100 250 5.0 0.18 50.0
8 DS119 150 2.5 0.30 47.5
9 DT136 400 3.5 0.27 111.5 262.0
10 5 EQ555 1000 8.0 0.08 88.0
11 ER616 500 4.0 0.22 114.0
12 ES871 100 2.0 0.35 37.0 239.0
13 6 FA314 250 3.0 0.30 78.0
14 FF369 100 1.5 0.12 13.5
15 FR766 50 0.5 0.15 8.0
16 FS119 200 3.0 0.35 73.0
17 FY486 500 6.0 0.27 141.0 313.5
Available = 4 machines x 2 shifts x 10 hours x 5 days x 0.85 utiliza- x 0.95 effi-
Capacity per shift per wk. tion ciency
Available = 323.0 standard hours
Chapter3 45
Capacity
46. Workload Graph for Work Center 101: CRP enables a
company to evaluate both the feasibility of the MRP system and how well
the company is using its critical work centers.
Chapter3 46
47. Issues in MRP
Some of the issues which deserve consider
ration in any comprehensive treatment of MRP
are:
Safety stock ,Lot-sizing , Scrap allowance
Pegging , Cycle counting
Updating
Time fence
Chapter3 47
48. MRP System—Other Issues
Safety stock: There are divergent views
regarding whether the safety stock is used or not
One side of argument supporting the use of
safety stock is that it performs the function of
avoiding excessive shock outs caused by certain
lead times &daily demand.
On the other hand those who oppose the use of
safety stock argues that safety stock is not
required because MRP system adopts to
changing conditions that affect demand and lead
times Chapter3 48
49. MRP System Issues-Lot Size
Lot size : The MRP system generates Planned
order release, which triggers purchase orders for
outside suppliers , or production orders(WO)
Various methods of Lot sizing
– Lot-for-lot (L4L or LFL): lot size matches net
requirements.
– Least total cost (LTC): calculates a lot size that
equalizes holding and ordering costs.
– Least unit cost (LUC): averages the LTC across the
lot size.
Chapter3 49
50. MRP System Issues-Lot Size
The lot size may be determined by the period
order quantity(POQ) Technique.
POQ = No of weeks per year
No of orders per year
= N
D/Q
D=Annual demand
Q=Economic Order quantity
N=Number of Weeks per year
Chapter3 50
51. MRP System Issues Scrap
Allowance
Scrap allowance: The bill of material
explosion could include multiplication by a
factor (more than one) to make an allowance
for usual scrap loss in manufacturing an item.
Chapter3 51
52. MRP System Issues -Pegging
The MRP Pegging system is a new set of commands
for your MG system which are designed to assist you
with your analysis of your MRP run.
The MRP pegging system copies the MRP information
into an easy to access image data base for inquires by
users. A data base guide, and schemas are provided
to users that may want to write their own inquires.
The utility also contains logic to determine if this is a
new MRP suggestion or a suggestion that has appear
on previous MRP runs. We keep track of which
suggestions are new and the age of which
suggestions have not been addressed.
The system provides the Manman user with the
following new features:
Chapter3 52
53. MRP System Issues -Pegging
Net Change MRP report - by selecting only new
MRP suggestions, we can provide information on
only what has changed since the last MRP run
MRP Volatility - the system tracks the number of
new MRP messages generated and the number of
MRP suggestions processed
List Component Pegging The system provides a
list command that provides a multi-level view of
where demand is coming from.
Combination Order Action / Reschedule report
Chapter3 53
54. MRP System Issues –Cycle Counting
"Cycle counting is truly a powerful working tool for
maintaining inventory record accuracy,"
"Finding erroneous records, sleuthing their causes, and
correcting these causes are the power base of cycle
counting." However, they find that sleuthing error causes is
frequently ignored as the process is not well understood or
easy to perform.
Brooks and Wilson, both of whom are consultants with the
Oliver Wight organization, also delve into a lengthy
discussion and analysis of inventory tactics versus
inventory control.
"It is important to recognize the impact that inventory tactics
have on control issues," they explain. "Inventory tactics
must be decided upon first before any inventory control
issues are addressed
Chapter3 54
55. MRP System Issues –Cycle Counting
." They identify and describe, by example, the
various elements of both inventory tactics and
inventory control. Inventory Record Accuracy,
Second Edition, describes how to establish and
maintain inventory record accuracy in a Lean
environment and covers new topics such as RFID
and supplier/vendor-managed inventory.
Additionally, Brooks and Wilson have significantly
expanded their explanation of inventory record
tolerances and added a number of graphical
displays and visuals to enhance the understanding
of establishing tolerances.
Chapter3 55
56. Benefits of MRP
Low levels of in-process inventories.
The ability to keep track of material
requirements.
The ability to evaluate capacity requirements
generated by a given master schedule.
A means of allocating production time.
Chapter3 56
57. MRP II
Manufacturing Resources Planning (MRP II):
II)
Expanded MRP with emphasis placed on
integration
– Financial planning
– Marketing
– Engineering
– Purchasing
– Manufacturing
Chapter3 57
58. MRP II
Market Master
Finance Manufacturing
Demand production schedule
Adjust master schedule
Marketing
Production
plan MRP
Rough-cut Capacity
capacity planning planning
Adjust
production plan
Yes No Requirements No Yes
Problems? schedules Problems?
Chapter3 58
59. Problems in MRP
Training: The workers have to be trained to learn and
become proficient with a new system and its processes.
Integration and testing: Integrating the computer
systems associated with different areas of the firm and
testing the links between various corporate areas and
systems.
Data conversion and data analysis
Consultant fees
Solving implementation problems on an ongoing basis
Dealing with disappointing short-term results
Competition for high quality workers especially in the
IT field . Chapter3 59
60. Close loop MRP
Manufacturing
Business Plan
Purchase
Production Plan
Master Schedule Engineering
Rough cut capacity Plan Marketing
Material
Requirement Plan
Finance
Detailed
Capacity plan
Accounting
Shop floor Control Chapter3
Chapter3 60
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