The Explosion Calculus

MRP processing at one level: Gross requirements at one level of product structure are translated into production schedule (planned order release) at that level. Explosion into lower levels: Planned Order Release (POR) quantities at one level of product structure are translated into gross requirements at lower levels.
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MRP Example
n

You are producing skateboards, and each consists of one unit of board, and two units of subassembly of roller-set. Roller-sets are produced inside the plant, and consist of two components rollers and axles. Prepare the MRP tables of all items.

Skateboard assembly

Material Inventory

Product Structure / Bill-of-matreial (BOM)

Item A: Skateboard

Material Inventory

Item B: Board

Item C: Roller-set

Item D: Roller

Item E: Axle

Bill of Material (BOM)

Parent of B and C

Level 0

A B[1]

Components of A

C[2]

Level 1

2 units of C, and 1 unit of B to make 1 unit of A

D[2]
Level 2

E[1]

2 units of D, and 1 unit of E to make 1 unit of C

Master Production Schedule

Week A D 1 2 3 4 40 A 1 B 2 C 1 5 6 50 7 8 60 D 3 E 2 9 10 80

Item Lead time (weeks)

Inventory Master Parts File

Item A Current inventory levels 10 Lot size L4L
Material Inventory

B C 20 50 100 L4L

D 30 200

E 20 150

Work-in-process Inventory

Finished good Inventory

Open Orders Data

Scheduled Receipts (Due Dates) ITEM / WEEKS 1 2 3 4 5 6 7 A B 20 C 90 D 40 E 8 9

MRP table for item A

WEEKS 1 2 3 4 5 GR SR PIB 10 10 10 10 10 NR PR POR 40 6 7 50 0 0 40 40 8 9 10 80 0 0 0 80 80

80
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MRP table for item B

WEEKS 1 2
GR SR PIB NR PR POR

4 5 6 40

9 80 20 80 100

20 20 20 40 40 0 0

100
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MRP table for item C

WEEKS 1 2 3 4 5 GR 80 SR 90 PIB 50 140 140 140 60 NR PR POR 6 7 8 9 160 0 100 100

60 60

60

100

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MRP table for item D

WEEKS 1 GR SR PIB NR PR POR

4 40

8 9 260

40 30 30 70 30 30 30 30 170 170 230 400 400

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MRP table for item E

WEEKS 1 GR SR PIB NR PR POR

4 5

8 9 100

20 20 20 20 20 20 20 70 70 80 150 150
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MRP Outputs
Planned Orders (Release Dates) ITEM / WEEKS 1 2 3 4 5 6 7 A 40 B 100 C D E 8 9 80

100

400 150
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Capacity Requirement Planning to validate MRP

Planned Order Quantity Released at a given period may exceed the available capacity at that period. n Therefore POR quantities must be valid for shop capacity.
n

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Example for CRP

Item : Week POR C 1 0 2 3 4 5 60 20 150 0 Item: D Week 1 2 3 4 5 POR 70 30 50 100 120 Processing time = 0.25 hours /unit

Processing time = 0.3 hours /unit

They are produced in the same workstation: runs 8 hours /day and 5 days /week.

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Capacity Requirements
Week POR (C) Process time POR (D) Process time Capacity Req. Capacity Excess capacity Capacity shortage 40 17.5 = 22.5 hours 1 0 0.3 70 0.25 17.5 40 22.5 0 2 60 0.3 30 0.25 25.5 40 14.5 0 3 20 0.3 50 0.25 18.5 40 21.5 0 4 150 0.3 100 0.25 70 40 0 30 5 0 0.3 120 0.25 30 40 10 0 6 0 0.3 0 0.25 0 40 40 0
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0 x 0.3 + 70 x 0.3 = 17.5 hours

CRP
Capacity Req. Capacity 17.5 40 25.5 40 18.5 40 70 40 30 40 0 40

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Shifting lot to previous periods with excess capacity

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Splitting lot into two or more periods

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