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MATERIAL REQUIREMENTS PLANNING A true planning tool that gives you the information you need to solve tomorrows

problems today
Most manufacturing problems would be a lot easier to solve if you could only see them coming. Materials planning involves managing sales forecasts, creating master schedules, and running MRP. In short, balancing future supply and demand. Material Requirements Planning enables you to plan for the future. Youll be able to meet market demand and address your companys production plan. With Material Requirements Planning, you produce a Master Production Schedule to plan the manufacturing of finished goods in order to meet the expected demand from your sales forecasts. Next, you use MRP functionality to determine the raw materials you need and when you need to purchase them in order to fulfill the production goals based on the Master Production Schedule. It is a material control system that attempts to keep adequate inventory levels to assure that required materials are available when needed. The major objectives of an MRP system are to simultaneously: 1. Ensure the availability of materials, components, and products for planned production and for customer delivery, 2. Maintain the lowest possible level of inventory, 3. Plan manufacturing activities, delivery schedules, and purchasing activities. MRP is especially suited to manufacturing settings where the demand of many of the components and subassemblies depend on the demands of items that face external demands. . The three major inputs or we can say

The structure of an MRP system


1. master production schedule , 2. the product structure records or Bill of material records (BOM, 3. and the inventory status records. Without these basic inputs the MRP system cannot function. 1>The demand for end items is scheduled over a number of time periods and recorded on a master production schedule (MPS). The master production schedule expresses how much of each item is wanted and when it is wanted. The MPS is developed from forecasts and firm customer orders for end items, safety stock requirements, and internal orders. MRP takes the master schedule for end items and translates it into individual time-phased component requirements. The master schedule and bill of materials indicate what materials should be ordered;
the master schedule, production cycle times and supplier lead times then jointly determine when orders should be placed. The Master Production Schedule includes quantities of products to be produced at a given time period. Quantities are included both at aggregate and detailed levels. Aggregate may refer to monthly production and detailed may refer to weekly or daily production. The master production schedule takes the form of a table in which rows represent products and columns represent time components. Entries of the table map to units o each product to be produced at a given time period. Example: furniture company that makes mattresses 1. Specify the total number of mattresses they will make over the next month or quarter 2. Identify the different sizes of the mattresses along with their qualities and styles 3. The MPS then states period by period (usually weekly) how many and when each of the mattress types are needed. 4. This is all put into a MRP program and it calculates and schedules all raw materials, parts, and supplies needed to make the mattress specified by the Master Production Schedule.

2> Bill of Materials gives information about the product structure, i.e., parts and raw material units necessary to manufacture one unit of the product of interest. The product structure records, also known as bill of material records (BOM), contain information on every item or assembly

required to produce end items. Information on each item, such as part number, description, quantity per assembly, next higher assembly, lead times, and quantity per end item, must be available. 3> The inventory status records contain the status of all items in inventory, including on hand inventory and scheduled receipts. These records must be kept up to date, with each receipt, disbursement, or withdrawal documented to maintain record integrity.

MRP II
Manufacturing Resource Planning (MRP II) embeds additional procedures to address the shortcoming of MRP. In addition, MRP II attempts to be an integrated manufacturing system by bringing together other functional areas such as marketing and finance. The additional functions of MRP II include forecasting, demand management, rough-cut capacity planning (RCCP), and capacity requirement planning (CRP), scheduling dispatching rules, and input/output control. MRP II works within a hierarchy that divides planning into long-range planning, medium range planning, and short-term control. Thus MRP has evolved to become a component of a MRPII system. Technically, MRPII extends MRP and links it with the companys information resources such as human resource information system, financial management, accounting, sales, etc

Benefits:
MRP II systems can provide:

Better control of inventories Improved scheduling Productive relationships with suppliers

For design / engineering:


Improved design control Better quality and quality control

For financial and costing:


Reduced working capital for inventory Improved cash flow through quicker deliveries Accurate inventory record

Improvements in MRP
Closed loop A closed-loop MRP system is a software application that helps the manufacturer keep track of inventory and use that knowledge, along with other production variables, to adjust future manufacturing plans. A system used for production planning and inventory control, with an information feedback feature that enables plans to be checked and adjusted. Closed Loop MRPs synchronize the purchasing or materials procurement plans with the master production schedule. The system feeds back information about completed manufacture and materials on hand into the MRP system, so that these plans can be adjusted according to capacity and other requirements. The system is called a closed loop MRP because of its feedback feature, which is also referred to as closing the loop." Work Center Load Computing work center load : This refers to finding the capacity of each work center to make sure that work is done on time, if there is insufficient capacity the problem must be resolved because some jobs will be late unless the scheduled is adjusted. Items used to computer total work at each work center The routing sheet specifies where a job is to be sent The particular operations involved The standard setup time and run time per piece Utilization- the actual time that machines are used Efficiency is how well the machine is performing while it is being used Options available when the schedule exceeds capacity Work overtime Select an alternative work center that could perform the task Subcontract to an outside shop Try to schedule part of the work of into an earlier week or delay part till a later week Renegotiate the due date and reschedule