Materials Requirement Planning
Independent demand definition
Demand for items over which a company does not exercise control (the end item or finished good)
If the answer is yes, shop capacity is adequate..What comes next?
Firm up a portion of the master production schedule!
Example of Master production schedule for campbell's soup
MPS splits campbell's soup into the different types of soup and week # that you need
What is Corporate Strategic Planning?
Market, economic and political analysis
What becomes Scheduled Receipt?
Released orders become scheduled receipts
What can structure trees be used to determine?
Structure trees can be used to determine Gross Requirements for depend demand items used to make an end item.
What makes up your other levels?
Your dependent demand
What would be placed on Level 0?
Your independent demand (your finished product)
If the answer is yes, capacity can be changed to meet requirements..What comes next?
Change the capacity so you can continue to firm up a portion of the master production schedule.
What is the next step after stimulating material requirements?
Convert material requirements to resource requirments
What makes up the Top Down Planning Sequence?
Corporate Strategic Planning -> Business Plan -> Tactical or Production Plan -> Detailed Planning & Control: Master Schedule
What are the MRP outputs ( Primary Reports)
-Changes -Order releases -Planned-order-schedules
What are the MRP outputs (Secondary Reports)
-Exception reports -Planning reports -Performance-control reports
How does the Master Production Schedule (MPS) work?
-Follows directly from the S&OP decisions and includes gross production requirements -Time phased production plan for each end item taking into account lead times of the sourced items
What is involved in the Master Schedule Record component?
-How much of each product to make over the planning horizon -When customer orders will be filled -What products/capabilities are remaining for opportunities
What are the MRP inputs?
-Master Production schedule record -Bill of materials file -Inventory Records file -Purchasing records file
Definition of Planned Order Releases
-Planned order receipts offset by lead time -Planned order released are the net requirements adjusted for lot sizing -What needs to be ordered and when
What is involved in the Material Requirements Plan component?
-Quantities and time of each part to be on hand to meet the master schedule -Quantities and receipt timing of new supply orders -Identification of production/supply chain constraints/bottlenecks
Definition of Scheduled Receipts
-Quantity already on order and receipt date
What are the components of Manufacturing and Planning?
-S&OP (Aggregate) Plan -Master Schedule Record -Material Requirements Plan (MRP)
What would be considered relevant information?
-Safety stock -Minimum order quantity -Cost -Storage location -Average lead time
What does purchasing data also include?
-Source of Supply Information -Price -Terms -Unit of sale -Ect
What are the supply chain issues with MRP?
1. Capacity Issues 2. Fixed Lead Times (assumes everything will be on time) 3. Need for consistent organizational discipline 4. MRP Nervousness- mistake or change in high level causes major changes in lower levels 5. Reporting issues-communication/coordination is essential for success
What is the Bill-of-Materials (BOM)?
A listing of all the raw materials, parts, sub-assemblies, and assemblies needed to produce one unit of a product (shows all the dependent demand items)
What is involved in the S&OP component?
Aggregate demand, labor, capacity and inventory requirements
If the answer is no, shop capacity is not adequate..What comes next?
Ask yourself if the capacity can be changed to meet requirements.
Definition of Gross Requirements
Demand for item by time period
Dependent demand definition
Demand for items tied directly to company production of another item (parts and pieces that make up that end item or finished good) If you know the independent demand quantity for an item, you know exactly the dependent demand quantity for the item that make up the parent item.
MRP is a system designed specifically to manage what kind of items?
Dependent demand items.
With using MRP to plan..what is the first step prior to using MRP. As in what do you need first?
Develop a tentative master production schedule (MPS) (aka spitting out what we expect to produce each week)
Definition of Projected Ending Inventory
Expected on-hand inventory at end of period
What is an MRP output that can come either from MRP Program / Worksheet or right from the input, Purchasing Records File?
Inventory Transactions
What does a MRP inventory / purchasing record contain?
Inventory records contains data on every component. Data would include on-hand, planned receipts and other relevant information?
After you convert material requirements to resource requirements, what do you have to ask?
Is shop capacity is adequate?
What is MRP?
MRP is the detailed planning and control: Master Schedule. What to produce and in what sequence?
What is involved during MRP processing?
MRP program / worksheets
What is the calculation involved with MRP for ending inventory?
On hand + Scheduled Receipts - Gross requirements = Ending Inventory
If the answer is no, capacity cannot be changed to meet requirement..What comes next?
Revise tentative master production schedule and go back to the beginning where you use MRP to stimulate requirements
What is the Tactical or Production Plan?
S & OP What is the rate of production
What can we use to prepare a detailed master production schedule for a particular product?
The previously determined, best methodology to meet demand over time horizon
What is the definition of Material Requirements Planning (MRP)
The process that translates a master production schedule into the detailed, time-phased resource requirements needed to produce components and subassemblies which eventually become an end item or final product.
What comings next in the MRP process?
Use MRP to stimulate material requirements
What is a product structure tree?
Visual depiction of the requirements in a bill of materials, where all components are listed by levels, lead times and quantities (shows parent0child relationships).
What is the Business Plan?
What will we produce?
