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1 1 2 0 0 2 So u t h W e st e rn / T h o mso n L e a rn i n g TMS l i d e s p r e p a r e db y J o h n L o u c k s2 Chapter 15 Resource Requirements Planning: MRP and CRP 3 Overview ? Resource Requirements Planning ? Material Requirements Planning (MRP) ? Capacity Requirements Planning (CRP) ? WrapUp: What WorldClass Companies Do 4 Resource Requirements Planning Master Production Scheduling (MPS) Material Requirements Planning (MRP) Capacity Requirements Planning (CRP) Aggregate Planning Resource Requirements Planning Chapter 13 Chapter 15 5 Material Requirements Planning (MRP) 6 Materials Requirements Planning (MRP) ? Computer based system ? Explodes Master Schedule (MPS) into required amounts of raw materials and subassemblies to support MPS ? Nets against current orders and inventories to develop production and purchased material ordering schedules 7 Objectives of MRP ? Improve customer service ? Reduce inventory investment ? Improve plant operating efficiency 8 Order Changes Order Planning Report Elements of MRP MRP System Planned Order Schedule Inventory Transaction Data Bill of Materials File Master Production Schedule Inventory Status File ServiceParts Orders and Forecasts Performance Exception Reports Inputs Outputs 9 MRP Computer Program ? Begins with number of end items needed ? Add service parts not included in MPS ? Explode MPS into gross requirements by consulting bill of materials file ? Modify gross requirements to get requirements: ? Net Requirements = Gross Requirements + Allocated Inventory + Safety Stock Inventory On Hand ? Offset orders to allow for lead time 10 Outputs of MRP ? Planned order schedule quantity of material to be ordered in each time period ? Changes to planned orders modifications to previous planned orders ? Secondary outputs: ? Exception reports ? Performance reports ? Planning reports 11 Example: MRP Schedule LocoMopeds is a manufacturer of offroad mopeds. The following product structure diagram represents the bill of materials for its dualcarburetor Model 442 moped. MOPED ENGINE ASSEMBLY MOTOR CARBURETOR (2) GAS TANK WHEEL ASSEMBLY (2) HUB ASSEMBLY TIRE FRAME Level 0 Level 1 Level 2 12 Example: MRP Schedule ? Bill of Material Parent Component Level Compon. Code Code Code Description Req’d 442 0 442 Moped 442 EA 1 Engine Assem. 1 GT 1 Gas Tank 1 WA 1 Wheel Assem. 2 F 1 Frame 1 EA M 2 Motor 1 C 2 Carburetor 2 WA HA 2 Hub Assem. 1 T 2 Tire 1 13 Example: MRP Schedule ? Inventory Status Report Item Code On Hand Safety Stock Lot Size Lead Time Sched. Receipts Qnty. Week 442 500 200 LFL 1 EA 300 100 500 1 1000 10 GT 600 200 LFL 2 900 10 WA 500 400 500 1 2022 10 F 600 0 2022 3 2022 10 M 250 0 LFL 1 C 150 100 2022+ 2 HA 100 0 LFL 1 2400 11 T 500 500 1000 3 3000,2022 11,12 14 Example: MRP Schedule The pany is currently planning production for weeks 10 through 16. Based on existing orders and demand forecasts, the master production schedule is as follows: Master Production Schedule: 442 Moped Determine the MRP schedule required to support the master production schedule for the Model 442 moped in weeks 1016. 11 1300 800 1200 1400 10 16 15 14 13 12 0 1000 0 WEEK QUANTITY 15 Example: MRP Schedule ? MRP Schedule for 442 Mopeds for Weeks 10 16, considering that: ? Gross Requirements e from the moped MPS ? There is an OnHand balance of 500 mopeds at the end of week 9 ? There are no Scheduled Receipts for mopeds ? A lotforlot rule is used for ordering mopeds ? Safety stock of 200 mopeds is desired ? Lead time for mopeds is one week 16 Example: MRP Schedule ? MRP Schedule for 442 Mopeds . . . Initially GROSS REQUIREMENTS SCHEDULED RECEIPTS AVAILABLE (ONHAND = 500) NET REQUIREMENTS PLANNED ORDER RECEIPTS PLANNED ORDER RELEASES ITEM: 442 MOPED LT: 1 LOT SIZE: LFL SS: 200 0 10 1000 0 11 12 13 1300 800 15 14 1400 1200 16 WEEK 17 Example: MRP Schedule ? MRP Schedule for 442 Mopeds . . . Completed GROSS REQUIREMENTS SCHEDULED RECEIPTS AVAILABLE