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MRPII

MRPII

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Published by: Royal Projects on Sep 07, 2011
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© Rakesh Nagi1
MRP II:Manufacturing ResourcePlanning Systems
IE 505: Production Planning ControlLecture Notes*© Rakesh NagiUniversity at Buffalo
* Adapted in part from Lecture Notes of Dr. George Harhalakis, University of Maryland
© Rakesh Nagi2
The Evolution of MRP II
q
1960’s and 1970’s
±
MRP: Material Requirement Planning
Assumed infinite capability
q
1980’s
±
MRP II : Manufacturing Resource Planning
Assumed limited capability
Closed loop system
q
1990’s
±
ERP: Enterprise Resource Planning
© Rakesh Nagi3
The Fundamental Logic of MRP System
q
What are we going to make ?
±
The Master Production Schedule
q
What do we (already) have ?
±
 Inventory Record 
q
What is it made up of ?
±
The Bill Of Materials
q
How will it be made ?
±
The Routings
© Rakesh Nagi4
The Modules In MRP II System
q
Master Production Scheduling
q
Inventory
q
Bill Of Materials (BOM)
q
Material Requirements Planning (MRP)
q
Purchasing
q
Receiving/ Quality Control
q
Shop Floor
© Rakesh Nagi5
Typical MRP II Architecture
Master ProductionScheduleInventoryBill of Material/ RoutingsMaterialRequirementPlanningPurchasingReceiving/QualityControlShop FloorCapacityOK ?ManufacturingDelivery
YesNo
 Independent Demand  Dependent Demand 
x e  c  u t  i   onM o d  ul   e  s  S  t   a t   e  gi   c M o d  ul   e  s 
 
© Rakesh Nagi6
Dependent vs Independent Demand
SuppliersMarket
DependentDemandIndependentDemand
 Raw materials &Semi-finished productsFinished 
 
 products
Company
 
2
© Rakesh Nagi7
Material Requirements Planning (MRP)
MRPProcess
InputsOutputs
q
Inputs
±
Master ProductionSchedule
±
Bill Of Materials
±
Inventory Data.
q
Outputs
±
ReplenishmentOrders
±
Reschedule Notices
© Rakesh Nagi8
Master Production Schedule
CustomerOrdersSalesForecastsOrder fromDealersBacklog
 Independent Demand 
© Rakesh Nagi9
Master Production Schedule
q
Forward looking plan
q
Objectives
±
To support sales
±
To run operations effectively
q
Fundamental factors
±
What we intend to make
±
How much we intend to make
±
When we intend to make
q
Input : sale plan
±
Must consider the capacities available by ‘rough cut’routing
© Rakesh Nagi10
Master Schedule
q
Inputs
±
Sales forecasts
±
Customer orders
±
Orders from dealers or other distribution centers
±
Inventory of finished products
±
Currently produced and expected finished productdelivers
±
Rough-cut routing
q
Outputs
±
Quantities, types and due dates of required products
© Rakesh Nagi11
Bill Of Material (BOM)
q
The list of the end items
q
Characteristics
±
Part Numbering
±
Parents and Child Relationship
±
Bill Of Material Levels
±
Explosions and Implosions
±
Phantom Bills
© Rakesh Nagi12
A Sample BOM Structure
A
Assy BAssy CAssy DIHGESubassy F KLJ
 
3
© Rakesh Nagi13
Part Numbering
q
The unique identifier
±
Called a part number or item number
q
Three ways to define the number
±
Random numbering
is used as an identifier only, not as a descriptor
±
Significant numbering
describes specific information about the item, such assource, material, shape, etc
±
Semi-significant numbering
© Rakesh Nagi14
Example
Part Number: 37-7213Type of Item: 37 = Ink CartridgesFour digit: 7213 = RandomPart Number: 37-1-3-16-432Type of item: 37 = Ink CartridgesType: 1 = Screw-in-typePoint type: 16 = Fine LineColor: 16 = BlueLength: 432 = 4.5 inches long
Significant NumberingRandom Numbering
© Rakesh Nagi15
Parents and Child Relationship
ParentChildChild
Children are the objects that are assembled together to make a parent object 
© Rakesh Nagi16
BOM Levels
A
B (1)C (1)D (2)H (1)G (1)E (2)EF (2) Level 0Level 1Level 2
© Rakesh Nagi17
Explosions
q
Two different way to display the BOM
±
Explosion and implosion
q
Explosions:
going down the BOM 
±
Single level explosions
Displays the immediate component parts (children)
±
Indented explosion
Parent on left-hand side and each additional level indentedfarther to the right
±
Summarized explosion
Arranges an indented explosion into total quantity order orpart number order
¯
Adds together the total requirement for each part number
© Rakesh Nagi18
LevelPart #Qty1B12E12F21C11D22E22G12H1
Single LevelExplosion of DIndentedExplosion of ASummarizedExplosion of A
LevelPart #Qty1B11C11D22E52 F22G22H2
(Ordered by Part #)
Examples of Explosion Types
Part # QtyE 2G 1H 1

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