13 1 MRP and ERP Operations Management William
- Slides: 27
13 -1 MRP and ERP Operations Management William J. Stevenson 8 th edition
13 -2 MRP and ERP CHAPTER 13 MRP and ERP Mc. Graw-Hill/Irwin Operations Management, Eighth Edition, by William J. Stevenson Copyright © 2005 by The Mc. Graw-Hill Companies, Inc. All rights reserved.
13 -3 MRP and ERP
13 -4 MRP and ERP MRP · Material requirements planning (MRP): Computer-based information system that translates master schedule requirements for end items into time-phased requirements for subassemblies, components, and raw materials. Material Requirements Planning (MRP) is software based production planning and inventory control system used to manage manufacturing processes.
13 -5 MRP and ERP An MRP system is intended to simultaneously meet three objectives: Ensure materials and products are available for production and delivery to customers. Maintain the lowest possible level of inventory. Plan manufacturing activities, delivery schedules and purchasing activities.
13 -6 MRP and ERP MRP provides answers for several questions: * What items are required? * How many are required? * When are they required?
13 -7 MRP and ERP Independent and Dependent Demand Independent Demand Dependent Demand A C(2) B(4) D(2) E(1) D(3) F(2) Independent demand is uncertain. Dependent demand is certain.
13 -8 MRP and ERP Dependant Demand · Dependent demand: Demand for items that are subassemblies or component parts to be used in production of finished goods. · Once the independent demand is known, the dependent demand can be determined.
13 -9 MRP and ERP Dependent vs Independent Demand Stable demand Demand Figure 13. 1 Time Amount on hand Time “Lumpy” demand Safety stock Time
13 -10 MRP and ERP Figure 13. 2 MRP Inputs MRP Processing MRP Outputs Changes Order releases Master schedule Planned-order schedules Primary reports Bill of materials Inventory records MRP computer programs Secondary reports Exception reports Planning reports Performancecontrol reports Inventory transaction
13 -11 MRP and ERP MPR Inputs Master Production Schedule · Time-phased plan specifying timing and quantity of production for each end item. · Material Requirement Planning Process · t c u d o Pr ee Tr c u r St e r tu s e m a e L i T d
13 -12 MRP and ERP Master Schedule Master schedule: One of three primary inputs in MRP; states which end items are to be produced, when these are needed, and in what quantities. Cumulative lead time: The sum of the lead times that sequential phases of a process require, from ordering of parts or raw materials to completion of final assembly.
13 -13 MRP and ERP Planning Horizon Figure 13. 4 Assembly Subassembly Fabrication Procurement 1 2 3 4 5 6 7 8 9 10
13 -14 MRP and ERP Bill-of-Materials Bill of materials (BOM): One of the three primary inputs of MRP; a listing of all of the raw materials, parts, subassemblies, and assemblies needed to produce one unit of a product. Product structure tree: Visual depiction of the requirements in a bill of materials, where all components are listed by levels.
13 -15 MRP and ERP Product Structure Tree Figure 13. 5 Level 0 1 Chair Leg Assembly 2 Legs (2) 3 Cross bar Seat Back Assembly Side Cross Back Rails (2) bar Supports (3)
13 -16 MRP and ERP Inventory Records One of the three primary inputs in MRP · Includes information on the status of each item by time period · Gross requirements · Scheduled receipts · Amount on hand · Lead times · Lot sizes · And more … ·
13 -17 MRP and ERP Assembly Time Chart Figure 13. 7 Procurement of raw material D Fabrication of part E Subassembly A Procurement of raw material F Procurement of part C Final assembly and inspection Procurement of part H Fabrication of part G Procurement of raw material I 1 2 3 Subassembly B 4 5 6 7 8 9 10 11
13 -18 MRP and ERP MRP Processing · Gross requirements · Schedule receipts · Projected on hand · Net requirements · Planned-order receipts · Planned-order releases
13 -19 MRP and ERP MPR Processing · Gross requirements · · Scheduled receipts · · Total expected demand Open orders scheduled to arrive Planned on hand · Expected inventory on hand at the beginning of each time period
13 -20 MRP and ERP MPR Processing · Net requirements · · · Actual amount needed in each time period Planned-order receipts · Quantity expected to received at the beginning of the period · Offset by lead time Planned-order releases · Planned amount to order in each time period
13 -21 MRP and ERP MRP Outputs · Planned orders - schedule indicating the amount and timing of future orders. · Order releases - Authorization for the execution of planned orders. · Changes - revisions of due dates or order quantities, or cancellations of orders.
13 -22 MRP and ERP MRP Secondary Reports · Performance-control reports · Planning reports · Exception reports
13 -23 MRP and ERP MRP in Services · · Food catering service · End item => catered food · Dependent demand => ingredients for each recipe, i. e. bill of materials Hotel renovation · Activities and materials “exploded” into component parts for cost estimation and scheduling
13 -24 MRP and ERP Benefits of MRP · Low levels of in-process inventories · Ability to track material requirements · Ability to evaluate capacity requirements · Means of allocating production time
13 -25 MRP and ERP Requirements of MRP · Computer and necessary software · Accurate and up-to-date · Master schedules · Bills of materials · Inventory records · Integrity of data
13 -26 MRP and ERP Bill of Materials – Part 1 A listing of all raw materials, parts, subassemblies, and assemblies needed to produce one unit Product structure Tree Level X 0 B(2) D(3) E C E(2) 1 F(2) 2
13 -27 MRP and ERP Bill of Materials – Part 2 How many more of each component is needed to make 15 Xs if there are 5 of each already in stock? X B(2) D(3) E C E(2) F(2)
- Erp in operations management
- Mrp table
- Erp in operations management
- Material requirement planning advantages and disadvantages
- Mrp et erp
- Ewolucja systemów erp
- Material requirement planning in operations management
- Mrp i
- Output of mrp
- Pertanyaan tentang manajemen rantai pasokan
- Igénytervezés
- Material requirements planning example
- Mrp erp definition
- Core and extended erp components
- Sap erp operations
- Operations and quality management
- Chapter 12 inventory management
- What is tqm
- Roi system by sea
- Talent management sap
- Erp deployment best practices
- Mrp system ppt
- Erp demystified
- Erp workflow management
- Mse in operations management
- Maintenance and reliability in operations management
- Design of goods and services heizer
- Maintenance and reliability in operations management