Presentation2 mrp
- 1. MATERIAL REQUIREMENT PLAN MRP MRP technique (material requirement plan) is a solution relatively new to a classic problem of production: control and coordinate the materials in order to find them available when necessary, and without having the necessity of possessing an excessive inventory
- 2. 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. • If a company purchases insufficient quantities of an item used in manufacturing (or the wrong item) it may be unable to meet contract obligations to supply products on time. • If a company purchases excessive quantities of an item, money is wasted - the excess quantity ties up cash while it remains as stock and may never even be used at all. • Beginning production of an order at the wrong time can cause customer deadlines to be missed.
- 3. Material requirements planning • Material requirements planning (MRP) is a production planning and inventory control system used to manage manufacturing processes. Most MRP systems are software- based, while it is possible to conduct MRP by hand as well.
- 4. An MRP system is intended to simultaneously meet three objectives: • Ensure materials are available for production and products are available for delivery to customers. • Maintain the lowest possible material and product levels in store • Plan manufacturing activities, delivery schedules and purchasing activities.
- 5. MRP is a tool to deal with these problems. It provides answers for several questions: • What items are required? • How many are required? • When are they required? MRP can be applied both to items that are purchased from outside suppliers and to sub-assemblies, produced internally, that are components of more complex items.
- 6. The data that must be considered include: • The end item (or items) being created. This is sometimes called Independent Demand, or Level "0" on BOM (Bill of materials). • How much is required at a time. • When the quantities are required to meet demand. • Shelf life of stored materials. • Inventory status records. Records of net materials available for use already in stock (on hand) and materials on order from suppliers. • Bills of materials. Details of the materials, components and sub- assemblies required to make each product. • Planning Data. This includes all the restraints and directions to produce the end items. This includes such items as: Routings, Labor and Machine Standards, Quality and Testing Standards, Pull/Work Cell and Push commands, Lot sizing techniques (i.e. Fixed Lot Size, Lot-For-Lot, Economic Order Quantity), Scrap Percentages, and other inputs.
- 7. Outputs • There are two outputs and a variety of messages/reports: • Output 1 is the "Recommended Production Schedule" which lays out a detailed schedule of the required minimum start and completion dates, with quantities, for each step of the Routing and Bill Of Material required to satisfy the demand from the Master Production Schedule (MPS). • Output 2 is the "Recommended Purchasing Schedule". This lays out both the dates that the purchased items should be received into the facility AND the dates that the Purchase orders, or Blanket Order Release should occur to match the production schedules. • Messages and Reports: • Purchase orders. An order to a supplier to provide materials. • Reschedule notices. These recommend cancelling, increasing, delaying or speeding up existing orders.
Editor's Notes
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