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Group Technology:
Group Technology or GT is a manufacturing philosophy in which the parts having similarities
(Geometry, manufacturing process and/or function) are grouped together to achieve higher level of
integration between the design and manufacturing functions of a firm. The group of similar parts is known
as part family and the group of machineries used to process an individual part family is known as machine
cell.
V. B. Soloa defined group technology as “the realization that many problems are similar, and that by
grouping similar problems, a single solution can be found to a set of problems thus saving time and
effort.”
It is not necessary for each part of a part family to be processed by every machine of corresponding
machine cell. This type of manufacturing in which a part family is produced by a machine cell is known as
cellular manufacturing. The manufacturing efficiencies are generally increased by employing GT because
the required operations may be confined to only a small cell and thus avoiding the need for transportation
of in-process parts.
The Role of Group Technology in CAD/CAM Integration:
The preceding discussion pointed out that competitive world market conditions are encouraging more
and more batch-type manufacturing firms to consider adopting a group technology philosophy. Another
major contributing factor to this acceptance is an increasing emphasis on the integration of CAD and CAM.
Group technology is an important element of CAD and CAM. An essential aspect of the integration
of CAD and CAM is the integration of information used by engineering, manufacturing, and all the other
departments in a firm. Group technology provides a means to structure and save information about parts,
such as design and manufacturing attributes, processes, and manufacturing capabilities that is amenable
to computerization and analysis.
It provides a common language for the users. Integration of many types of part-related information
would be virtually impossible without group technology; consequently, group technology is an important
element of CAD/CAM integration.
Methods for Developing Part Families
Group technology is begun by grouping parts into families based on their attributes. Usually, these
attributes are based on geometric and/or production process characteristics. Geometric classification of
families is normally based on size and shape, while production process classification is based on the type,
sequence, and number of operations. The type of operation is determined by such things as the method of
processing, the method of holding the part, the tooling, and the conditions of processing. For example,
the following figure shows families of parts grouped by geometric shape and by production process. The
identification of a family of parts that has similarities permits the economies of scale normally associated
with mass production to be applied to small-lot, batch production. Therefore, successful grouping of
related parts into families is a key to implementation of the group technology philosophy.

Fig. 4.1: Grouped Part Families.

There are at least three basic methods that can be used to form part families:
1. Manual visual search
2. Production flow analysis
3. Classification and coding
Production flow analysis (PFA) is a structured technique developed for analysis the sequence of
operations (routings) that parts go through during fabrication. Parts that go through common operations

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are grouped into part families. Similarly, the machines used to perform these common operations may be
grouped as a cell; consequently, this technique can be used in facility layout.
Initially, a machine—component chart must be formed. This is an M x N matrix, where
M = number of machines
N = number of parts
x = 1 if part j has an operation on machine i; 0 otherwise.
If the machine—component chart is small, parts with similar operations might be grouped together by
manually sorting the rows and columns. However, a more appealing method is to use a computer
procedure to perform this work.
Following figure illustrates the use of PFA to form part families. For this technique to be successful,
accurate and efficient routings must exist for each part. In many companies these routings do not exist. If
routings exist, they are often inaccurate from lack of maintenance or they may be very inconsistent.

Fig. 4.2: (a) Component—Machine Chart; (b) Example of Production Flow Analysis.
Using PFA involves judgment, because some parts may not appear to fit into a family when one or
more unique operations are required. Furthermore, additional analysis is required to determine when a
particular machine should be duplicated in another group. In the above figure, for example, machine D is
in groups 1 and 2. In this case, since machine D was visited by almost all of the parts, it was duplicated to
keep the groups small. Otherwise, groups 1 and 2 might have been combined into one group having
several parts with dissimilar routings. Likewise, you cannot determine how many machines of type D are
required without evaluating demands and machine capacities. In addition, PFA does not consider part
features and functional capabilities. Therefore, this technique should not be used to form part families for
design engineering. One advantage of using production flow analysis compared to a coding and
classification system is that part families can be formed with much less effort.

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In addition, PFA does not consider part features and functional capabilities. Therefore, this technique
should not be used to form part families for design engineering. One advantage of using production flow
analysis compared to a coding and classification system is that part families can be formed with much less
effort.
Classification and Coding:
Classification of parts is the process of categorizing parts into groups, sometimes called families,
according to a set of rules or principles. The objectives are to group together similar parts and to
differentiate among dissimilar parts. Coding of a part is the process of assigning symbols to the part.
These symbols should have meanings that reflect the attributes of the part, thereby facilitating analysis
(information processing).
One reason that a design engineer classifies and codes parts is to reduce design effort by identifying
similar parts that already exist. Some of the most significant attributes on which identification can be
made are shape, material and size. If the coding and classification system is to be used successfully in
manufacturing, it must be capable of identifying some additional attributes, such as tolerances,
machinability of materials, processes, and machine tool requirements. A system that meets these
combined needs will improve communication between departments and facilitate computer-integrated
manufacturing.
Classification and coding systems have been developed for group technology applications, all of them
can be grouped into three basic types:
1. Hierarchical or monocode
2. Attribute, or polycode
3. Hybrid, or mixed
1. Hierarchical Code:
In this type of code, the meaning of each character is dependent on the meaning of the previous
character; that is, each character amplifies the information of the previous character. Such a coding system
can be depicted using a tree structure as shown in Figure (b), which represents a simple scheme for coding
the spur gear shown in Figure (a). Using these figures, we can assign a code, “A11B2,” to the spur gear.
A hierarchical code provides a large amount of information in a relatively small number of digits. This
advantage will become more apparent when we look at an attribute coding system. Defining the meaning
for each digit in a hierarchical system can be difficult, although application of the defined system is
relatively simple.
For example, in the code developed in Figure (b) for the spur gear A11B2, a “1” in the second position
means “round with deviations” because there is an “A” in the first position of the code. However, if there
had been a “B” in the first position, a “1” in the second position would have meant “boxlike.”

(a)

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Fig.4.3: (a): Spur gear; (b) hierarchical code for the spur gear.

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1. Attribute Code
An attribute code is also called a polycode, a chain code, a discrete code or a fixed-digit code. The
meaning of each character in an attribute code is independent of any other character; thus, each
attribute of a part can be assigned a specific position in an attribute code. Following figure shows an
example attribute code.

Fig.4.4: Example for Attribute Code

2. Hybrid Code
In reality, most coding systems use a hybrid (mixed) code so that the advantages of each type of
system can be utilized. The first digit, for example, might be used to denote the type of part, such as a
gear. The next five positions might be reserved for a shirt attribute code that would describe the attributes
of the gear. The next digit, position 7, might be used to designate another subgroup, such as material,
followed by another attribute code that would describe the attributes. In this manner a hybrid code could
be created that would be relatively more compact than a pure attribute code while retaining the ability to
easily identify parts with specific characteristics.
Process Planning:
Before introduction to the role of computer aided process planning (CAPP), it is worthwhile to
understand the role of process planning in the product cycle. Once the design of the product has been
evolved from customer’s views, its manufacturing necessitates careful planning and scheduling of the
various processes of manufacture. So that, the product is made to right specifications and delivered at the
right time at a minimal cost. The cycle from concept to design, planning, production, quality control and
feedback to design goes on in which one can easily understand the crucial role of planning. In job/batch
manufacture, as an enormous amount of data is needed for planning as well as other activities, data bases
are required and the flow of information should be fast for a high performance of the total manufacturing
system.

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Objectives:
 Understand what is process planning and CAPP,
 Know the various steps involved in CAPP,
 Classify the various methods of CAPP, and
 Understand the feature recognition in CAPP.

Introduction to Process Planning:

In manufacturing, the goal is to produce components that meet the design specifications. The design
specification ensures the functionality aspect. Next step to follow is to assemble these components into
final product. Process planning acts as a bridge between design and manufacturing by translating design
specification into manufacturing process detail. Hence, in general, process planning is a production
organization activity that transforms a product design into a set of instruction (sequence, machine tool
setup etc.) to manufacture machined part economically and competitively. The information provided in
design includes dimensional specification (geometric shape and its feature) and technical specification
(tolerance, surface finish etc.) Now-a-days, process planning is applied to many manufacturing industries
like metal cutting, sheet metal forming, composite and ceramic fabrication and other manufacturing
process.

Fig. 4.5: Various steps involved in developing a process plan

Various steps are discussed as follows:
The analysis of finished part requirement is the first step in process planning. Initially the features
of parts are analyzed. Examples of geometric feature include plane, cylinder, cone step, edge and include
fillet. These common features can be modified by the addition of slots, pockets, grooves, holes and
others. The second step is the selection of raw work piece shape, size (dimensions and weight), material
and other attributes are determined. Weight and material of the raw part are determined by the functional
requirement of plan. The next logical step in process planning is to determine the appropriate types of
processing operations and their sequences to transform the features, dimensions and tolerances of a part
from the raw to the finished state. There may be many ways to produce a design sometimes constraints
are also considered like some feature be machined before or after other. Furthermore, the types of
machine, available tools as well as batch size influence the process sequence.

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Next step to be followed in process planning is the selection of machine tools on which these
operations are made.
Some of the factors which influence the selection of machine tool are as follows:
(i) Attributes related to workpiece, such as desired features, dimensions of workpiece, dimensional
tolerances and raw material form.
(ii) Attributes related to machine tools, e.g. process capability size, mode of operation, tooling
capabilities and automatic tool changing capabilities.
(iii) Attribute related to production volume, e.g. production quantity and order frequency.
Unit cost of production, manufacture lead time and quality are three basic criteria for evaluating
the suitability of a machine tool to accomplish an operation.
Next step to be followed is the selection of tools work holding devices and inspection
equipments. Features on the workpieces are generated using a combination of machine tool and cutting
tools. Work holding devices are used to locate and hold the workpiece to generate features. In order to
ensure the dimensional accuracy, tolerance and surface finish on the feature, inspection equipments are
required. Part features play a vital role in the selection of machine tools, fixture and inspection
equipment.
Now sixth step which has to be performed is the determination of machining condition and
manufacturing time. The controllable variables of machine condition are cutting speed (υ), feed (f) and
depth of cut (d).
Minimum cost per piece, maximum production rate and manufacture lead time are same for the
model to be optimized for high production and less cost.

Approaches To Process Planning:

There are basically two approaches to process planning which are as follows:
(i) Manual experience-based process planning, and
(ii) Computer-aided process planning method.

(i) Manual Experience-based Process Planning

The steps mentioned in the previous section are essentially same for manual process planning.
Following difficulties are associated with manual experienced based process planning method:
 It is time consuming and over a period of time, plan developed are not consistent.
 Feasibility of process planning is dependent on many upstream factors (design and availability of
machine tools). Downstream manufacturing activities such as scheduling and machine tool allocation are
also influenced by such process plan.
Therefore, in order to generate a proper process plan, the process planner must have sufficient
knowledge and experience. Hence, it is very difficult to develop the skill of the successful process
planner and also a time consuming issue.

(ii) Computer-Aided Process Planning:

Computer-aided process planning (CAPP) helps determine the processing steps required to make a
part after CAP has been used to define what is to be made. CAPP programs develop a process plan or
route sheet by following either a variant or a generative approach.
The variant approach uses a file of standard process plans to retrieve the best plan in the file after
reviewing the design.
The generative approach to CAPP starts with the product design specifications and can generate a
detailed process plan complete with machine settings. CAPP systems use design algorithms, a file of
machine characteristics, and decision logic to build the plans. The essentiality of computer can easily be
understood by taking an example, e.g. if we change the design, we must be able to fall back on a module
of CAPP to generate cost estimates for these design changes. Expert systems are based on decision rules
and have been used in some generative CAPP systems.
CAPP is the application of computer to assist the human process planer in the process planning
function. In its lowest form it will reduce the time and effort required to prepare process plans and provide

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more consistent process plan. In its most advanced state, it will provide the automated interface between
CAD and CAM and in the process achieve the complete integration with in CAD/CAM.
CAPP has recently emerged as the most critical link to integrated CAD/CAM system into inter-
organizational flow. Main focus is to optimize the system performance in a global context. The
essentiality of computer can easily be understood by taking an example, e.g. if we change the design, we
must be able to fall back on a module of CAPP to generate cost estimates for these design changes.
Similarly for the case of the breakdown of machines on shop floor. In this case, alternative process plan
must be in hand so that the most economical solution for the situation can be adopted. Figure 4.6 is one
such representation, where setting of multitude of interaction among various functions of an organization
and dynamic changes that takes place in these sub functional areas have been shown. Hence, the use of
computer in process planning is essential.

Fig.4.6: Framework for Computer Aided Process Planning

Advantages:
The users of computers in process plan have following advantages over manual experience-based
process planning:
(i) It can systematically produce accurate and consistent process plans.
(ii) It leads to the reduction of cost and lead times of process plan.
(iii) Skill requirement of process planer are reduced to develop feasible process plan.
(iv)Interfacing of software for cost, manufacturing lead time estimation, and work standards can easily
be done.
(v) Leads to the increased productivity of process planar.

With the emergence of CIM as predominate thrust area in discrete part industries process planning has
received significant attention, because it is the link between CAD and CAM. Hence, computer aided
process planning (CAPP) has become a necessary and vital objective of CIM system.

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Fig. 4.7: Flow Diagram of the CAPP Process Planning System

Steps Involved in CAPP

Now-a-days, rapid progress is being made in the automation of actual production process and also the product
design element. However, the interface between design and production presents the greatest difficulty in
accomplishing integration. CAPP has the potential to achieve this integration. In general, a complete CAPP system
has following steps:
(i) Design input.
(ii) Material selection.
(iii) Process selection.
(iv) Process sequencing.
(v) Machine and tool selection.
(vi) Intermediate surface determination.
(vii) Fixture selection.
(viii) Machining parameter selection.
(ix) Cost/time estimation.
(x) Plan preparation.
(xi) MC tape image generation.

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Approaches to Computer-Aided Process Planning:
In recent days, several computer-aided process planning systems are available for use for a variety of
manufacturing operation.
These systems can broadly be clarified into two categories:
I. Variant computer aided process planning method.
II. Generative computer aided process planning method.
The details of these are explained in next subsections.
I. Variant Process Planning:
Variant process planning approach is sometimes referred as a data retrieval method. In this approach,
process plan for a new part is generated by recalling, identifying and retrieving an existing plan for a
similar part and making necessary modifications for new part.
Using coding and classification schemes of group technology (GT), a number of methods such as
coefficient based algorithm and mathematical programming models have been developed for part family
formation and plan retrieval. After identifying a new part with a family, the task of developing process
plan is simple. It involves retrieving and modifying the process plan of master part of the family.
The general steps for data retrieval modification are as follows:
Establishing the Coding Scheme
A variant system usually begins with building a classification and coding scheme. If variant CAPP is
preferred than it is useful for a company to look into several commercially available coding and
classification systems. Because using an existing system can save tremendous development time and
manpower.
(i) Form the Part Families by Grouping Parts:
The whole idea of GT lies into group numerous parts into a manageable number of part families.
One of the key issues in forming part families is that all parts in the same family should have common and
easily identifiable machined features. As a standard process plan are attached with each part family,
thereby reducing the total number of standard process plans.
(ii) Develop Standard Process Plans:
After formation of part families, standard process plan is developed for each part families based on
common part features. The standard plan should be as simple as possible but detailed enough to
distinguish it from other.
(iii) Retrieve and Modify the Standard Plans for New Parts:
Step1 to step 3 are often referred as preparatory work. Each time when a new part enters the
systems, it is designed and coded based on its feature, using the coding and classification scheme, and
then assigned to a part family. The part should be similar to its fellow parts in the same family. In order to
generate detailed process routes and operation sheets to this part, the standard plan is retrieved from the
data base and modified. Modification is done by human process planar. After this stage parts are ready for
release to the shop.
Due to use and advancement of computers, the information management capability of variant
process planning is much superior. Otherwise it is quite similar to manual experience-based planning.

Advantages of Variant CAPP:

Following advantages are associated with variant process planning approach:
(i) Processing and evaluation of complicated activities and managerial issues are done in an
efficient manner. Hence lead to the reduction of time and labour requirement.
(ii) Structuring manufacturing knowledge of the process plans to company’s needs through
standardized procedures.
(iii) Reduced development and hardware cost and shorter development time. This is an essential
issue for small and medium scale companies, where product variety is not so high and process
planner are interested in establishing their own process planning research activities.

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Disadvantages of Variant Process Planning Approach:
Following disadvantages are associated with variant process planning approach
(i) It is difficult to maintain consistency during editing.
(ii) Proper accommodation of various combinations of attributes such as material, geometry,
size, precision, quality, alternate processing sequence and machine loading among many other
factors are difficult.
(iii) The quality of the final process plan largely depends on the knowledge and experience of
process planner. The dependency on process planner is one of the major shortcomings of variant
process planning.

Fig.4.8: Framework of Variant Process Planning Activity

II. Generative Process Planning:

In generative process planning, process plans are generated by means of decision logic, formulas,
technology algorithms, and geometry based data to perform uniquely processing decisions. Main aim is to
convert a part from raw material to finished state. Hence, generative process plan may be defined as a
system that synthesizes process information in order to create a process plan for a new component
automatically.
Generative process plan mainly consists of two major components:
(i) Geometry based coding scheme.
(ii) Proportional knowledge in the form of decision logic and data.
(i) Geometry-based Coding Scheme
All the geometric features for all process such as related surfaces, feature dimension, locations, on the
features are defined by geometry based coding scheme. The level of detail is much greater in generative
system than a variant system.
For example, various details such as rough and finished state of the part are provided to transform into
desired state.
(ii) Proportional Knowledge in the Form of Decision Logic and Data
Process knowledge in the form of decision logic and data are used for matching of part geometry
requirement with the manufacturing capabilities. All the methods mentioned above are performed
automatically.Operation instruction sets are automatically generated to help the operators to run the
machines in case of manual operation. NC codes are automatically generated, when numerically
controlled machines are used.

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Advantages of Generative Process Plan
Generative process plans have a number of advantages. Among the major ones are the following:
(i) They rely less on group technology code numbers since the process, usually uses decision tree to
categorize parts into families.
(ii) Maintenance and updating of stored process plans are largely unnecessary. Since, any plan may be
quickly regenerated by processing through the tree. Indeed, many argue that with generable systems,
process plans should not be stored since if the process is changed, and out-of-dated process plan might
find its way back into the system.
(iii) The process logic rules however must be maintained up to dated and ready for use. This provides
the process planner with an assurance that the processes generated will reflect state-of-the-art technology.

Variant or Generative, Which to Use?

What CAPP approach (Variant or Generative) is better? This question has been constantly asked but, there
is no definite answer to it.
Generally speaking, a variant system is better for manufacturing setting where similar parts are
manufactured repetitively. Because parts are similar, Group Technology can easily be implemented and shows
quick and significant return on investment (ROI). Because similar parts are produced repetitively, process
plan can be retrieved, slightly modified and used, without going through too much trouble. On the other hand,
generative process planning is better suited for a manufacturing environment in which part does not exhibit
too much similarity and new part are introduced on a regular basis. In this case, benefits cannot be gained
from Group Technology due to dissimilarity of parts. Because, new parts are regularly introduced, historical
data does not have too much value to the process planner. However, aforementioned approach is a rough
guideline for selecting the appropriate CAPP approach.

Machinability Data System:

In the machine shop, process planning should include selection of the cutting condition that are to be used
in the various machining operations. The cutting conditions consist of the speed, feed, and depth of cut. Depth
of cut is usually predetermined by the workpiece geometry and operation sequence. Therefore, the problem
reduces to one of determining the proper speed and feed combination. Machinability data systems are
basically intended to solve this problem.
Definition of the Problem:
The objective of a machinability Data system is to select cutting speed and feed rate given that the
following characteristics of the operation have been defined:
1. Type of machining operation
2. Machine Tool
3. Cutting Tool
4. Work part
5. Operating Parameters Other Than Feed and Speed
The magnitude of the problem can best be appreciated by contemplating the multitude of different
parameters that are included within this five-operation characteristic.
The methods of solving the speed/feed selection problem are:
1. Experience and judgment of process planner, foreman, or machine operator
2. Handbook recommendations
3. Computerized machinability data systems.
1. Experience and judgment of process planner, foreman, or machine operator:
Relying on the experience and judgment of any individual is the least systematic approach and carries
the greatest risk. The risk lies in the potential loss of the individual who has acquired the experience and
judgment over many years in the shop. Personal judgment is also undesirable because it usually has no
scientific foundation. Cutting condition derived from personal experience is not based on economic criteria.
2. Handbook recommendations:
Handbook recommendations are compiled from the experiences of the more than one person.
Handbook of machinability data is generally developed from a systematic analysis of large quantities of

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machining data. The cutting recommendations are often based on laboratory experience whose objective is to
determine speeds and feeds. The best known of these handbooks is the machining data Handbook. Although
the handbook approach represents a define improvement over personal judgment, it often suffers from several
drawback when applied to a particular company’s machining environment. First, Handbook recommendations
tend to be conservative, meaning that the suggested feeds and speeds are based on worst case conditions.
Second, Handbook must be considered as general guides and may not coincide with the particular product line
and machine tools of the given shop. Third, the use of the handbooks is not compatible with the automation of
the process planning function using a computerized database.
3. Computerized Machinability Data System:
To overcome these difficulties, efforts have been directed to the development of computerized machinability
data systems. These efforts date back to the early 1960s and are continuing today. Some of the systems have been
developed by individual firms to meet their own specific requirements. These systems have grown with the increase in
the use of NC machines and the economic need to operate these machines as efficiently as possible. The important of
computerizes machinability data systems will continue to grow with the development of integrated manufacturing
databases.

Pressman and Williams have classified computerized machinability data systems into general
types:
1. Data base systems and
2. Mathematical modal systems.
1. Data Base Systems
These systems require the collection and storage of large quantities of data from laboratory
experiments and shop experience. The data base is maintained on a computerized storage file that can be
accessed either by a remote terminal or in a batch mode for a more permanent printout of cutting
recommendations. To collect the machinability data from the data base system, cutting experiment are
performed over a range of feasible condition. These experiments are commonly conducted in the laboratory.
However many data base machinability system allows for shop data to be entered into the files also. For each
set of condition, computational are made to determine the cost of operation. Not only is total cost per piece are
calculated, but the cost components that make up the total cost are also calculated.
The computations are based on the traditional concept in machining economics that the total cost
per piece is composed of element are given in the following equation.

Where, CPC =Cost per w/p

Co =Cost to operate the machine tool
Tm =Machining time
Th =Machine handling time
T =Tool life
Ct =Cost of tooling
TTC =Tool change time
2. Mathematical Modal Systems
These systems go one step beyond the data base systems. Instead of simply retrieving cost information
on operations that have already been perform; the Mathematical modal systems attempt to predict the
optimum cutting conditions for an operation. The prediction is generally limited to optimum cutting speed,
given a certain feed rate .The definition of optimal is based on either the objective of minimizing cost or
maximizing production rate.
A common mathematical modal to predict optimum cutting speed relies on the familiar Taylor
equation for tool life,

Where, V=surface speed

T=tool life

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By combining equation 1 and 2 and accounting for the fact that machining time is inversely proportional
to cutting speed the equation for minimum cost cutting speed can be derived.

In similar way, the cutting speed that yields maximum production rate can also be derived.

The weakness of the mathematical model system is an empirical equation derived from experimental data
that contain random error. This random error tends to distort the accuracy of the minimum cost and maximum
production equation.

Computer aided manufacturing resource planning

Manufacturing resource planning (MRP II) is defined by APICS as a method for the effective planning of
all resources of a manufacturing company. Ideally, it addresses operational planning in units, financial
planning in dollars, and has a simulation capability to answer "what-if" questions and extension of closed-
loop MRP.
This is not exclusively a software function, but a marriage of people skills, dedication to data base
accuracy, and computer resources. It is a total company management concept for using human resources more
productively.

Fig.4.9: Flow chart of MRPII

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Key Functions and Features:

MRP II is not a proprietary software system and can thus take many forms. It is almost impossible
to visualize an MRP II system that does not use a computer, but an MRP II system can be based on either
purchased–licensed or in-house software.
Almost every MRP II system is modular in construction. Characteristic basic modules in an MRP
II system are:
• Master production schedule (MPS)
• Item master data (technical data)
• Bill of materials (BOM) (technical data)
• Production resources data (manufacturing technical data)
• Inventories and orders (inventory control)
• Purchasing management
• Material requirements planning (MRP)
• Shop floor control (SFC)
• Capacity planning or capacity requirements planning (CRP)
• Standard costing (cost control)
• Cost reporting / management (cost control)
Together with auxiliary systems such as:
• Business planning
• Lot traceability
• Contract management
• Tool management
• Engineering change control
• Configuration management
• Shop floor data collection
• Sales analysis and forecasting
• Finite capacity scheduling (FCS)
And related systems such as:
• General ledger
• Accounts payable (purchase ledger)
• Accounts receivable (sales ledger)
• Sales order management
• Distribution requirements planning (DRP)
• Automated warehouse management
• Project management
• Technical records
• Estimating
• Computer-aided design/computer-aided manufacturing (CAD/CAM)
• CAPP
The MRP II system integrates these modules together so that they use common data and freely exchange
information, in a model of how a manufacturing enterprise should and can operate. The MRP II approach is
therefore very different from the “point solution” approach, where individual systems are deployed to help a
company plan, control or manage a specific activity. MRP II is by definition fully integrated or at least fully
interfaced.
MRP and MRPII: General concepts:
Material requirements planning (MRP) and manufacturing resource planning (MRPII) are both
incremental information integration business process strategies that are implemented using hardware and
modular software applications linked to a central database that stores and delivers business data and
information.

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MRP is concerned primarily with manufacturing materials while MRPII is concerned with the
coordination of the entire manufacturing production, including materials, finance, and human relations. The
goal of MRPII is to provide consistent data to all players in the manufacturing process as the product moves
through the production line.
Paper-based information systems and non-integrated computer systems that provide paper or disk outputs
result in many information errors, including missing data, redundant data, numerical errors that result from
being incorrectly keyed into the system, incorrect calculations based on numerical errors, and bad decisions
based on incorrect or old data. In addition, some data is unreliable in non-integrated systems because the same
data is categorized differently in the individual databases used by different functional areas.
MRPII systems begin with MRP, material requirements planning. MRP allows for the input of sales
forecasts from sales and marketing. These forecasts determine the raw materials demand. MRP and MRPII
systems draw on a master production schedule, the breakdown of specific plans for each product on a line.
While MRP allows for the coordination of raw materials purchasing, MRPII facilitates the development of a
detailed production schedule that accounts for machine and labor capacity, scheduling the production runs
according to the arrival of materials. An MRPII output is a final labor and machine schedule. Data about the
cost of production, including machine time, labor time and materials used, as well as final production
numbers, is provided from the MRPII system to accounting and finance.
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 records
What Is Manufacturing Resource Planning?
Manufacturing Resource Planning (MRP II) is an integrated information system used by businesses.
Manufacturing Resource Planning (MRP II) evolved from early Materials Requirement Planning (MRP)
systems by including the integration of additional data, such as employee and financial needs. The system is
designed to centralize, integrate and process information for effective decision making in scheduling, design
engineering, inventory management and cost control in manufacturing.
Both MRP and MRP II are seen as predecessors to Enterprise resource planning (ERP), which is a process
whereby a company, often a manufacturer, manages and integrates the important parts of its business. An ERP
management information system integrates areas such as planning, purchasing, inventory, sales, marketing,
finance and human resources. ERP is most frequently used in the context of software, with many large
applications having been developed to help companies implement ERP.
The Basics of Manufacturing Resource Planning (MRP II):
MRP II is a computer-based system that can create detail production schedules using real-time data to
coordinate the arrival of component materials with machine and labor availability. MRP II is used widely by
itself, but it's also used as a module of more extensive enterprise resource planning (ERP) systems.
MRP II is an extension of the original materials requirements planning (MRP I) system. Materials
requirements planning (MRP) is one of the first software-based integrated information systems designed to
improve productivity for businesses. A materials requirements planning information system is a sales
forecast-based system used to schedule raw material deliveries and quantities, given assumptions of machine
and labor units required to fulfill a sales forecast. MRP II was provided as a solution, which included this
functionality in addition to all the capabilities offered by MRP I.

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MRP I vs. MRP II:
For all intents and purposes, MRP II has effectively replaced MRP I software. Most MRP II systems
deliver all of the functionality of an MRP system. But in addition to offering master production scheduling,
bill of materials (BOM) and inventory tracking, MRP II provides functionality within logistics, marketing and
general finance.
For example, MRP II is able to account for variables that MRP is not – including machine and personnel
capacity – providing a more realistic and holistic representation of a company’s operating capabilities. Many
MRP II solutions also offer simulation features that allow operators to enter variables and see the downstream
effect. Because of its ability to provide feedback on a given operation, MRP II is sometimes referred to as a
closed-loop system.
MRP I included the following three major functionalities:
 master production scheduling
 bill of materials
 inventory tracking
MRP II includes those three, plus the following:
 machine capacity scheduling
 demand forecasting
 quality assurance
 general accounting
MRP II systems are still in wide use by manufacturing companies today and can either be found as stand-
alone solutions, or as part of an enterprise resource planning (ERP) system. Enterprise Resources Planning
(ERP) software systems are regarded as the successors to MRP II software.
ERP suites include applications that are well outside the scope of manufacturing. These can include
everything from human resources and customer relationship management to enterprise asset management.
Real World Examples of MRP II Software:
The following are a small sampling of some popular MRP II software providers, as of early 2019:
 IQMS
 Fishbowl
 Factory Edge
 Prodsmart
 Abas
 Oracle Netsuite Manufacturing Edition
 Epicor
 S2K Enterprise

Enterprise Resource Planning:

Enterprise resource planning (ERP) is the integrated management of main business processes, often in
real-time and mediated by software and technology.
ERP provides an integrated and continuously updated view of core business processes using
common databases maintained by a database management system. ERP systems track business resources—
cash, raw materials production capacity—and the status of business commitments: orders, purchase orders
and payroll. The applications that make up the system share data across various departments (manufacturing,
purchasing, sales, accounting etc.) that provide the data. ERP facilitates information flow between all business
functions and manages connections to outside stakeholders.
The ERP system integrates varied organizational systems and facilitates error-free transactions and
production, thereby enhancing the organization's efficiency. However, developing an ERP system differs from
traditional system development. ERP systems run on a variety of computer
hardware and network configurations, typically using a database as an information repository.

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Characteristics:
ERP systems typically include the following characteristics:
 An integrated system.
 Operates in (or near) real time.
 A common database that supports all the applications.
 A consistent look and feel across modules.
 Installation of the system with elaborate application/data integration by the Information
Technology department, provided the implementation is not done in small steps.
 Deployment options include: on-premises, cloud hosted, or SaaS.
Functional Areas:
An ERP system covers the following common functional areas. In many ERP systems, these are called
and grouped together as ERP modules:
 Financial accounting: general ledger, fixed assets, payables including vouchering, matching and
payment, receivables and collections, cash management, financial consolidation.
 Management accounting: budgeting, costing, cost management, activity based costing.
 Human resources: recruiting, training, rostering, payroll, benefits, retirement and pension
plans, diversity management, retirement, separation.
 Manufacturing: engineering, bill of materials, work orders, scheduling, capacity, workflow
management, quality control, manufacturing process, manufacturing projects, manufacturing
flow, product life cycle management.
 Order processing: order to cash, order entry, credit checking, pricing, available to
promise, inventory, shipping, sales analysis and reporting, sales commissioning.
 Supply chain management: supply chain planning, supplier scheduling, product configurator, order
to cash, purchasing, inventory, claim processing, warehousing (receiving, put
away, picking and packing).
 Project management: project planning, resource planning, project costing, work breakdown
structure, billing, time and expense, performance units, activity management
 Customer relationship management (CRM): sales and marketing, commissions, service, customer
contact, call center support – CRM systems are not always considered part of ERP systems but
rather business support systems (BSS).
 Data services: various "self–service" interfaces for customers, suppliers and/or employees.
Advantages:
The most fundamental advantage of ERP is that the integration of a myriad of business processes saves
time and expense. Management can make decisions faster and with fewer errors. Data becomes visible across
the organization. Tasks that benefit from this integration include:
 Sales forecasting, which allows inventory optimization.
 Chronological history of every transaction through relevant data compilation in every area of
operation.
 Order tracking, from acceptance through fulfillment
 Revenue tracking, from invoice through cash receipt
 Matching purchase orders (what was ordered), inventory receipts (what arrived), and costing (what
the vendor invoiced)
ERP systems centralize business data, which:
 Eliminates the need to synchronize changes between multiple systems—consolidation of finance,
marketing, sales, human resource, and manufacturing applications.
 Brings legitimacy and transparency to each bit of statistical data.
 Facilitates standard product naming/coding.
 Provides a comprehensive enterprise view (no "islands of information"), making real–time
information available to management anywhere, anytime to make proper decisions.
 Protects sensitive data by consolidating multiple security systems into a single structure.

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Benefits:
 ERP creates a more agile company that adapts better to change. It also makes a company more
flexible and less rigidly structured so organization components operate more cohesively,
enhancing the business—internally and externally.[60]
 ERP can improve data security in a closed environment. A common control system, such as the
kind offered by ERP systems, allows organizations the ability to more easily ensure key company
data is not compromised. This changes, however, with a more open environment, requiring further
scrutiny of ERP security features and internal company policies regarding security.[61]
 ERP provides increased opportunities for collaboration. Data takes many forms in the modern
enterprise, including documents, files, forms, audio and video, and emails. Often, each data
medium has its own mechanism for allowing collaboration. ERP provides a collaborative platform
that lets employees spend more time collaborating on content rather than mastering the learning
curve of communicating in various formats across distributed systems.[56]
 ERP offers many benefits such as standardization of common processes, one integrated system,
standardized reporting, improved key performance indicators (KPI), and access to common data.
One of the key benefits of ERP; the concept of integrated system, is often misinterpreted by the
business. ERP is a centralized system that provides tight integration with all major enterprise
functions be it HR, planning, procurement, sales, customer relations, finance or analytics, as well
to other connected application functions. In that sense ERP could be described as "Centralized
Integrated Enterprise System (CIES)"
Disadvantages:
 Customization can be problematic. Compared to the best-of-breed approach, ERP can be seen as
meeting an organization’s lowest common denominator needs, forcing the organization to find
workarounds to meet unique demands.
 Re-engineering business processes to fit the ERP system may damage competitiveness or divert
focus from other critical activities.
 ERP can cost more than less integrated or less comprehensive solutions.
 High ERP switching costs can increase the ERP vendor's negotiating power, which can increase
support, maintenance, and upgrade expenses.
 Overcoming resistance to sharing sensitive information between departments can divert
management attention.
 Integration of truly independent businesses can create unnecessary dependencies.
 Extensive training requirements take resources from daily operations.
 Harmonization of ERP systems can be a mammoth task (especially for big companies) and
requires a lot of time, planning, and money.
 Critical challenges include disbanding the project team very quickly after implementation,
interface issues, lack of proper testing, time zone limitations, stress, offshoring, people's resistance
to change, a short hyper-care period, and data cleansing.

Capacity Requirements Planning:

The manufacturing order planned through the material planning (MRP or parts explosion) is usually
submitted to the administration division or the person in charge of administration that comprehensively
controls the manufacturing division, and the validity of its capacity and load is first determined. The
manufacturing order is created for each item using B/M based on the production schedule through the material
planning, and thus at this point the concept of process is not existing yet. But items are actually produced
through a number of processes. Capacity Requirements Planning refers to the planning where the load for
each process is grasped according to the manufacturing order, the adjustments are made, and then the work of
each process is planned.

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Fig. 4.10: Representing CRP

It is necessary to set the capacity after considering the current situation, in order to make Capacity
Requirements Planning more practical. In this planning, the following three capacities are used:
Standard Capacity:
The ability to produce items in a standard process. The standard capacity is usually set for each process,
and such time margin as morning meeting time and break time as well as attendance rate are also considered.
In addition, Capacity may be registered for each operation date.
Maximum Capacity:
The ability to produce the maximum quantity/quality of items in a process. It can be set according to the
actual performance or as an overload tolerance.
Set Capacity:
The ability to be set based on the relationship between the maximum capacity and load. When setting the
capacity, such factors as overtime work, shift, and the increase or decrease in staff transfer are considered.
Generally, capacity demand plan can be divided into four functions.
Process spread:
MRP calculate the amount of items required, but the actual operation instruction is for each process.
Therefore, items level plan need to be broken down into process level plan. This subdivide function is called
process spread.
Load accumulation：
Orders generated during process spreading called work orders. The work time that calculated when
process spreading is recorded into work orders, the time is seen as the job load, calculate the load of each
project. This function is called load accumulation.

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Load adjustment：
Load adjustment happens in the earliest start time (get ready materials, the earliest time you can get to
work) to latest start time (the latest start time that do not occur late delivery) scale.
Ability adjustment：
In case that unable to deal with by adjusting the load, overtime work, change shift, outsourcing...est. can
be considered. On base of these functions and planner's adjustment to calculate capacity demand. Work orders
that generated in the plan, will be succeeded to the work plan.

Fig. 4.11: Step by step procedure of CRP

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