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MaterialRequirementsPlanning OperationsManagement ForCompetitiveAdvantage CHASEAQUILANOJACOBS ninthedition Chapter14 Chapter14MaterialsRequirementsPlanning MaterialRequirementsPlanning MRP MRPLogicandProductStructureTreesTimeFencesMRPExampleMRPIILotSizinginMRPPrograms MaterialRequirementsPlanningDefined Materialsrequirementsplanning MRP isthelogicfordeterminingthenumberofparts components andmaterialsneededtoproduceaproduct MRPprovidestimeschedulinginformationspecifyingwheneachofthematerials parts andcomponentsshouldbeorderedorproduced DependentdemanddrivesMRP MRPisasoftwaresystem ExampleofMRPLogicandProductStructureTree ProductStructureTreeforAssemblyA LeadTimesA1dayB2daysC1dayD3daysE4daysF1day DemandDay1050ADay820B Spares Day615D Spares Giventheproductstructuretreefor A andtheleadtimeanddemandinformationbelow provideamaterialsrequirementsplanthatdefinesthenumberofunitsofeachcomponentandwhentheywillbeneeded LT 1day First thenumberofunitsof A arescheduledbackwardstoallowfortheirleadtime So inthematerialsrequirementplanbelow wehavetoplaceanorderfor50unitsof A inthe9thweektoreceivetheminthe10thweek Next weneedtostartschedulingthecomponentsthatmakeup A Inthecaseofcomponent B weneed4B sforeachA Sinceweneed50A s thatmeans200B s Andagain webackthescheduleupforthenecessary2daysofleadtime Finally repeatingtheprocessforallcomponents wehavethefinalmaterialsrequirementsplan TheMcGraw HillCompanies Inc 2000 7 MasterProductionSchedule MPS Time phasedplanspecifyinghowmanyandwhenthefirmplanstobuildeachenditem MPS SpecificEndItems TypesofTimeFences FrozenNoschedulechangesallowedwithinthiswindow ModeratelyFirmSpecificchangesallowedwithinproductgroupsaslongaspartsareavailable FlexibleSignificantvariationallowedaslongasoverallcapacityrequirementsremainatthesamelevels ExampleofTimeFences Exhibit14 5 MaterialRequirementsPlanningSystem Basedonamasterproductionschedule amaterialrequirementsplanningsystem Createsschedulesidentifyingthespecificpartsandmaterialsrequiredtoproduceenditems Determinesexactunitnumbersneeded Determinesthedateswhenordersforthosematerialsshouldbereleased basedonleadtimes Materialplanning MRP FromExhibit14 6 12 TheMcGraw HillCompanies Inc 2000 BillofMaterials BOM FileACompleteProductDescription MaterialsPartsComponentsProductionsequenceModularBOMSubassembliesPlanningBOMFractionaloptions InventoryRecordsFile EachinventoryitemcarriedasaseparatefileStatusaccordingto timebuckets PeggingIdentifyeachparentitemthatcreateddemand PrimaryMRPReports Plannedorderstobereleasedatafuturetime Orderreleasenoticestoexecutetheplannedorders Changesinduedatesofopenordersduetorescheduling Cancellationsorsuspensionsofopenordersduetocancellationorsuspensionofordersonthemasterproductionschedule Inventorystatusdata SecondaryMRPReports Planningreports forexample forecastinginventoryrequirementsoveraperiodoftime Performancereportsusedtodetermineagreementbetweenactualandprogrammedusageandcosts Exceptionreportsusedtopointoutseriousdiscrepancies suchaslateoroverdueorders NetChangeSystem ActivitydrivenNetchangeschedulesPotentialforsystemnervousness AdditionalMRPSchedulingTerminology GrossRequirementsOn handNetrequirementsPlannedorderreceiptPlannedorderrelease MRPExample Requirementsinclude95units 80firmordersand15forecast ofXinweek10plusthefollowingspares ClosedLoopMRP ProductionPlanningMasterProductionSchedulingMaterialRequirementsPlanningCapacityRequirementsPlanning ManufacturingResourcePlanning MRPII Goal Planandmonitorallresourcesofamanufacturingfirm

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