2. MATERIAL REQUIRMENTS PLANNING (MRP)
๏ฎ It converts master schedule in to a final product
INFORMATION NEEDED FOR MRP:
1. Demand for all products
2. Items for finished goods
3. Safety stock requirements
INPUTS TO MRP:
1. Master production schedule
2. Bill of materials file
3. Inventory record file
4. 1. MASTER PRODUCTION SCHEDULE
1. Sale or distribution during specific period
๏ฎ INPUTS TO MPS:
๏ฎ Market requirements
๏ฎ Production plan to aggregate planning
๏ฎ Resources available
๏ฎ BILL OF MATERIALS:
๏ฎ How many, each of them used.
๏ฎ INVENTORY RECORD FILE:
๏ฎ Item master data segment
๏ฎ Inventory status
๏ฎ Subsidiary data segment
5. BENEFITS OF MRP
๏ฎ Reduce inventory levels
๏ฎ Reduce production lead time
๏ฎ Improve product quality
๏ฎ Better production schedule
๏ฎ Better machine utilisation
7. DISPATCHING ACTIVITIES
1. Movement of material from store
2. Issue of tool orders
3. Issue of job orders
4. Issue of time tickets
5. Issue of inspection orders
6. Issue of move orders
8. COMMON FORMS USED IN
DISPATCHING (8mark)
1. Material requisitions
1. Issuing material from store
2. No material issue without written requisitions
2. Job cards/ tickets
1. Worker identity for a material
2. Recording the production progress
3. Labour cards / tickets
1. It is knows as wage payment cards
2. Usually job and labour cards are combines
9. 4. Move cards/ tickets
1. Movement of material between operations
5. Inspection cards / tickets
1. Report the quantity of work passed / rejected
6. Tool and gauge tickets
1. To issue any tool under requirements
10. DISPATCHING RULES
1. FCFS (First Come First Serve)
2. SOT (Shortest Operation Time)
3. Earliest due dates
4. STR (Slack Time Remaining)
5. STR/OR (Slack Time Remaining per Operation)
6. CR (Critical Ratio)
7. QR (Queue ratio)
11. EXPEDITING
(PROGRESSING)
๏ฎ Expediting:
๏ฎ Also known as follow โ up or progressing
๏ฎ Plan till job is completed
๏ฎ FUNCTIONS OF EXPEDITING:
๏ฎ Status reporting
๏ฎ Attending holds-ups
๏ฎ Modifying the production plans
๏ฎ Co-ordinating with purchase