MRP lot for lot

8/17/2019 MRP lot for lot

1/43

5606 MANUFACTURING OPERATION MANAGEMENT

NO.

NAME MATRIC NO.

1 Sarah Kanaan Hamzah GS446872 Ahmed Faisal Ahmed GS460193 Amin Shafanejad GS462364 Hussein Kadhim Sharaf GS45602

Lecturer:

Associate Professor Dr. Faiea !i"ti A#$u% Ai

GROUP 6

MRP


2/43

&ARA' (ANAAN 'AM)A'


3/43

I"$e*e"$e"t De+a"$

• It refers to the demand of finished goods, which are ordered by

External Customers or manufactured for stock and sale.

• Independent demands for inventories are based on confirmed

Customer orders, forecasts, estimates and past historical data.

De*e"$e"t $e+a"$

• It refers to the demand for items that are subassemblies or

component parts to be used in the production of finished goods. Theamount of dependent demand is the function of the amount of

independent demand• For example, the parts and materials that go into the production of an automobile are examples of

dependent demand, because the total amount of parts and raw materials needed during any time

period is a function of the number of cars that will be produced. Conversely, demand for the

finished cars is independent. car is not a component of another item

I"$e*e"$e"t a"$ De*e"$e"t De+a"$ I",e"tories


4/43

Material RequirementPlanning (MRP)

It is a production planning process that starts from the demand for

finished products and plans the production step by step of

subassemblies and parts

It is also a set of techni!ues that takes the "aster #roduction

$chedule and other information from inventory records and

product structure records as inputs to determine re!uirements and

schedule of timing for each item.


5/43

This inventory management system is appropriate for items

that have a dependent demand.

"%# is applicable for industries that offer variety of finished products where the customer is allowed to choose among

many different options.

"%# is most appropriate when the manufacturing environmentis complex and uncertain.

-ere is MRP A**%ica#%e/


6/43

Pur*ose of MRP

!n"r!l in#en"!r$ le#els

Assi%n !&era"in% &ri!ri"ies

'lan (a&a(i"$ "! l!ad "he &r!du("i!ns$s"em


7/43

MRP &tructure


8/43

MRP INPUT&


9/43

Te Master Pro$uctio" &ce$u%e

"#$ is prepared based on actual customers orders

and predicted demand. This schedule indicates

exactly when each ordered item will be produced tomeet the firm and predicted demand& that is, it is a

time'phased production plan.


10/43

MPS Examle ! A"e#$me Sea%er Se&iali#t

'r$## Requirement# $r Sea%er

s shown on top this "aster #roduction $chedule shows

planned output for end item speaker. The schedule indicate that

() units needs on *th week, +)) unit needs on th week, -

units needs on /th week and so on.

The !uantities in a master schedule come from a number of

different sources, including customer order, forecasts and other

from warehouse to build up seasonal inventories.


11/43

For each item in the "#$, a bill of material exists.

The 01" file indicates all the raw materials,

components, subassemblies and re!uired to producean item. The "%# computer system accesses the

01" file to determine exactly what items, and in

what !uantities, are re!uired to complete an order for

a given item.

!i%% of Materia% !OM1


12/43

!OM E2a+*%e


13/43

uantit* $n +een+ent art# t$ ,uilt t-e in+een+ent art (A)

If tere is O"3'a"$ I",e"tor4: !0 7 C 80 E2a+*%e1

!OM E2a+*%e co"t.1


14/43

)" contains detailed information regarding thenumber of !uantity of each item on hand, on order,

and committed to use in various time periods. The"%# computer system accesses the I% computer file

to determine the !uantity available for use in a given

time period and, if enough are available to meet the

order needs, commits these for use during the time period by updating the inventory record. If sufficient

items, as well as the usual lot si2e, on the planned

order release report.

Te I",e"tor4 Recor$s


15/43

AMIN &'AFANE9AD


16/43

MRP Processi":

3ross %e!uirement4 The total expected demand for an item or raw materialduring each time period without regard to the amount on hand.

$chedule %eceipt4 Existing orders that arrive at beginning of period.

#ro5ected on 6and4 Inventory balance that will be on hand at the beginning ofeach time period.

7et %e!uirement4 The actual amount needed in each time period.

#lanned'order %eceipts4 The !uantity expected to be received by the beginning of the period.

#lanned'order %elease4 Indicate a plan amount to order in each time period oroffset by lead time.


17/43

Week

1 2 3 4 5 6 7 8 Lead Time

A. Required date 50Order release date 50 1 week

B. Required date 100Order release date 100 2 weeks

C. Required date 150Order release date 150 1 week

. Required date 200 300Order release date 200 300 2 weeks

!. Required date 300Order release date 300 3 weeks

". Required date 600 200Order release date 600 200 1 week

". Required date 300Order release date 300 2 weeks

Gross Re;uire+e"ts P%a"


18/43

$tarts with a production schedule for the end item 8 ()units of Item in week

9sing the lead time for the item, determine the week in

which the order should be released 8 a + week lead timemeans the order for () units should be released in week

This step is often called :lead time offset; or :time phasing;

From the 01", every Item re!uires < Item 0s 8 +))Item 0s are re!uired in week to satisfy the order releasefor Item

Deter+i"i" Gross Re;uire+e"ts


19/43

The lead time for the Item 0 is < weeks 8 release an orderfor +)) units of Item 0 in week (

The timing and !uantity for component re!uirements are

determined by the order release of the parent=s> The process continues through the entire 01" one level

at a time 8 often called :explosion;

0y processing the 01" by level, items with multiple

parents are only processed once, saving time andresources and reducing confusion

?ow'level coding ensures that each item appears at onlyone level in the 01"

Deter+i"i" Gross Re;uire+e"ts co"t.1


20/43

T#e l$%i& $' (et requireme(ts

A)aila*le i()e(t$r+

,etrequireme(ts

O(#a(d

-eduledre&eits

/ 0

T$tal requireme(ts

"r$ssrequireme(ts All$&ati$(s/

Net Re;uire+e"ts P%a"


21/43

Net Re;uire+e"ts P%a"


22/43

Net Re;uire+e"ts P%a" co"t.1


23/43

$tarts with a production schedule for the end item 8 () units ofItem in week

0ecause there are +) Item s on hand, only -) are actually

re!uired 8 =net re!uirement> @ =gross re!uirement ' on' handinventory>

The planned order receipt for Item in week is -) units 8 -)@ () 8 +)

Following the lead time offset procedure, the planned orderrelease for Item is now -) units in week

Deter+i"i" Net Re;uire+e"ts


24/43

The gross re!uirement for Item 0 is now ) units in week

There are +( units of Item 0 on hand, so the net re!uirement is*( units in week

planned order receipt of *( units in week generates a planned order release of *( units in week (

planned order receipt of *( units in week generates a planned order release of *( units in week (

The on'hand inventory record for Item 0 is updated to reflectthe use of the +( items in inventory and shows no on'handinventory in week

This is referred to as the 3ross'to'7et calculation and is the

third basic function of the "%# process

Deter+i"i" Net Re;uire+e"ts co"t.1


25/43

U*$ati" te MRP s4ste+

• The two basic systems used to update "%#

records are4

%egenerative system4 pproach that

updates "%# records periodically

7et change system4 approach that updates

records continuously


26/43

A'MED FAI&AL


27/43

Lot &ii" the process of modifying the net re!uirement !uantities before

they are translated into planned orders in an "%# system.

If net re!uirements were translated directly into planned orders,

it would result in manufacturing component schedules and

purchasing schedules that did not take any account of the cost

of machine setups or the cost of ordering.


28/43

. Lot for Lot

It is called A1B =Aiscrete 1rder Buantity>, and is a method for

lot si2ing, where the net re!uirements occurring for each period

are the !uantity of order. This method is often used mainly forexpensive items and the items whose demand occurs

intermittently. In this case the !uantity is the same as that of the

case in which one period is specified in the fixed period

re!uirements.

Lot &ii" Tec"i;ues


29/43

•

*+am&le,The company that makes a table want to ship +)) units at the beginning of theday -,+() units at the beginning of day (, and


30/43

• *+am&le (!n"


31/43

as"er a$ 1 2 3 4 5 6 7

S(hedule f!r"ale

ale 100 150 200

ale.!" size , .!" f!r l!"

e% in# 1 2 3 4 5 6 7

Gr!ss reuiermen" 100 150 200

S(heduled re(ie&"s

'r!je("ed !n hand 0 0 0 0 0 0 0 0

e" reuiermen" 100 150 200

'lanned/!rder/re(ie&"s 100 150 200

'lanned/!rder/releases 100 150 200

!!d se("i!n :2;.!" size , .!" f!r l!"

e% in# 1 2 3 4 5 6 7


S(heduled re(ie&"s 100'r!je("ed !n hand 0 0 100 100 0 0 0 0



'lanned/!rder/releases 400 400

*+am&le (!n"


32/43

ra(es :3;.!" size , .!" f!r l!"

e% in# 1 2 3 4 5 6 7


S(heduled re(ie&"s 100

'r!je("ed !n hand 60 60 60 60 0 0 0 0



'lanned/!rder/releases 240 450 600

.e%s:4;

.!" size , .!" f!r l!"e% in# 1 2 3 4 5 6 7


S(heduled re(ie&"s

'r!je("ed !n hand 120 120 120 120 0 0 0 0


'lanned/!rder/re(ie&"s 280 600 800'lanned/!rder/releases 880 800

*+am&le (!n"


33/43

8. Eco"o+ic Or$er


34/43

=. Fi2e$ Perio$ Or$eri" &4ste+

It is an inventory control method where orders are periodically placed, but the

order !uantity is different every time, and is also called Fixed #eriod Aeficit

1rdering $ystem. The method has the following features4

D n order is periodically placed.

D The order !uantity is different every time.

D Even relatively large fluctuations in demand can be handled properly.

D Even seasonal variation can be handled modestly.D The inventory volume can be reduced compared with ordering point system.

D 'group items are usually best for this method.

D ?onger lead time is acceptable.

D ?onger time for paperwork is needed.

Lot &ii" Tec"i;ues co"t.1


35/43

'U&&EIN (AD'IM &'ARAF


36/43

MRP OUTPUT


37/43

Pri+ar4 re*orts


38/43

&eco"$ar4 re*orts


39/43

&afet4 &toc>


40/43

!e"efits of MRP


41/43

!ac>f%usi"

Exploding an end items todetermine the !uantities of the

component that were used to

make item


42/43

Re;uire+e"ts of MRP


43/43

han< =!u

Documents

MRP lot for lot