Erp Mrp Report

7/29/2019 Erp Mrp Report

1/23

MRP and ERP


2/23

MRP

Material requirements planning (MRP): Computer-based information system for ordering andscheduling of dependent demand inventories


3/23

Dependent Demand

Dependent demand: Demand for items that aresubassemblies or component parts to be used inproduction of finished goods.


4/23

Dependent vs Independent Demand

Time

Time Time

Time

Demand

Demand

Stable demandLumpy demand

Amountonhand

Amount

onhand

Safety stock


5/23

MRP Inputs MRP Processing MRP Outputs

Master

schedule

Bill of

materials

Inventory

records

MRP computer

programs

Changes

Order releases

Planned-order

schedules

Exception reports

Planning reports

Performance-

control

reports

Inventory

transaction

Primary

reports

Secondary

reports


6/23

MPR Inputs Master Production Schedule

Time-phased plan specifying timing and quantity ofproduction for each end item. Material Requirement Planning Process


7/23

Master Schedule

Master schedule: One of three primary inputs inMRP; states which end items are to beproduced, when these are needed, and inwhat quantities.

Cumulative lead time: The sum of the lead timesthat sequential phases of a process require,from ordering of parts or raw materials tocompletion of final assembly.


8/23

Planning Horizon

1 2 3 4 5 6 7 8 9 10

Procurement

Fabrication

Subassembly

Assembly

Figure 14-4


9/23

Bill-of-Materials

Bill of materials: One of the three primary inputsof MRP; a listing of all of the raw materials,parts, subassemblies, and assembliesneeded to produce one unit of a product.

Product structure tree: Visual depiction of therequirements in a bill of materials, where allcomponents are listed by levels.


10/23

Product Structure Tree

Chair

Seat

Legs (2)Cross

bar

Side

Rails (2)

Cross

bar

Back

Supports (3)

LegAssembly

BackAssembly

Level

0

1

2

3

Figure 15-5


11/23

Assembly Time Chart

1 2 3 4 5 6 7 8 9 10 11

Procurement of

raw material D

Procurement of

raw material FProcurement of

part C

Procurement of

part H

Procurement ofraw material I

Fabricationof part G

Fabrication

of part E

Subassembly A

Subassembly B

Final assembly

and inspection

Figure 15-8


12/23

MRP Processing

Gross requirements Schedule receipts

Projected on hand

Net requirements Planned-order receipts

Planned-order releases


13/23

MRP Outputs

Planned orders - schedule indicating theamount and timing of future orders.

Order releases - Authorization for the executionof planned orders.

Changes - revisions of due dates or orderquantities, or cancellations of orders.


14/23

MRP Secondary Reports

Performance-control reports

Planning reports

Exception reports


15/23

Other Considerations

Safety Stock

Lot sizing Lot-for-lot ordering

Economic order quantity

Fixed-period ordering

Part-period model


16/23

Capacity Planning

Capacity requirements planning: The process ofdetermining short-range capacityrequirements.

Load reports: Department or work centerreports that compare known and expectedfuture capacity requirements with

projected capacity availability.Time fences: Series of time intervals during which

order changes are allowed or restricted.


17/23

MRP Planning

Develop a tentative

master production

schedule

Use MRP to

simulate material

requirements

Convert material

requirements toresource requirements

Firm up a portion

of the MPS

Is shop

capacity

adequate?

Can

capacity be

changed to meet

requirements

Revise tentative

master productionschedule

Change

capacity

Yes

No

Yes

No


18/23

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


19/23

Benefits of MRP

Low levels of in-process inventories

Ability to track material requirements

Ability to evaluate capacity requirements

Means of allocating production time


20/23

Requirements of MRP

Computer and necessary software

Accurate and up-to-date

Master schedules

Bills of materials

Inventory records

Integrity of data


21/23

MRP II

Expanded MRP with and emphasis placed

on integration

Financial planning

Marketing

Engineering

Purchasing

Manufacturing


22/23

Market

Demand

Productionplan

Problems?

Rough-cut

capacity planning

Yes No YesNo

Finance

Marketing

Manufacturing

Adjustproduction plan

Master

production schedule

MRP

Capacity

planning

Problems?Requirements

schedules

Ad

justmasterschedule

MRP II


23/23

ERP

Enterprise resource planning (ERP): An expanded

effort to integrate standardized record-keepingthat will permit information sharing throughoutthe organization

Documents

Erp Mrp Report