Chapter 15 Resource Planning.ppt

Chapter 15 Resource Planning Material Requirements Planning Materials requirements planning (MRP) is a means for determining the number of parts, components, and materials needed to produce a product MRP provides time scheduling information specifying when each of the materials, parts, and components should be ordered or produced Dependent demand drives MRP It is most valuable in industries where a number of products are made in batches using the same productive equipment. The theme of MRP is “getting the right materials to the right place at the right time”. Demand Patterns Demand Patterns Demand Patterns Demand Patterns Demand Patterns Demand Patterns Demand Patterns Material Requirements Plan Inputs Material Requirements Plan Inputs Material Requirements Plan Inputs Material Requirements Plan Explosion Material Requirements Plan Output Bill of Materials (BOM) Indicates all the raw materials, components, subassemblies, and assemblies required to produce an item A structured list of all components, parts, and materials of an item Shows way a finished product or parent item is put together from individual components Bill of Materials Bill of Materials Master Production Schedule Based on actual customer orders and predicted demand Indicates when each ordered item will be produced Time-phased plan specifying how many and when the firm plans to build each end item Master Production Schedule Inventory Record Detailed information regarding the quantity of each item, on hand, on order committed to use in various time periods MRP system using inventory master file to determine the quantity available for use in a given period If sufficient items are not available, the system includes the item on the planned order release report Inventory Record Inventory Record Inventory Record Inventory Record Inventory Record Inventory Record Planned Orders Planned Orders Planned Orders Planned Orders Planned Orders Planned Orders Planned Orders Planned Orders Planned Orders Planne