Resource requirement planning

MEANING

It is directed at determination of the amount and timing of production resources such as personnel, material, cash and production capacity needed to produce the finished products or end items as per the master production schedule.

Step involved in HRP

Developing a trial production plan Computing the work load The load profile on each work Use the resource keys, plan The capacity requirement of the revised plan Repeat step no.4 and 5 to satisfactory is develop

Human requirement planning system

Functional inputs
Marketing Short range demand forecast

Human requirement planning

outputs
Marketing end item production schedule

Finance Cash availability inventory norms

Production capacity constraints development of MPS, CRP and MRP. Engineering change in product design and product structure Personnel employee availability purchasing - material supply availability MIS data base system inventory status file bill of material file

master production schedule (MPS)

Finance/ accounting inventory level schedule

Production MPS, load profile capacity utilization data, planned material orders and releases, shop floor plans

Material requirement planning (MRP)

Engineering new design incorporation data

Personnel employee requirement schedule

Capacity requirement planning (CRP)

purchasing - planned orders and order releases MIS data base system update inventory status file

Flow chat of Resource requirement planning system

Market research
Forecast Customer demands Customer firm orders Estimated End item demand Branch Warehouse orders

R& D orders

Inventory status of end item

needed production of end items rough-cut rough-cut capacity planning capacity planning

lot sizing and safety stock policies