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Materials Requirements Planning. MRP A dependent demand technique that uses bill of material, inventory, expected receipts and a master production schedule.

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Presentation on theme: "Materials Requirements Planning. MRP A dependent demand technique that uses bill of material, inventory, expected receipts and a master production schedule."— Presentation transcript:

1 Materials Requirements Planning

2 MRP A dependent demand technique that uses bill of material, inventory, expected receipts and a master production schedule to determine material requirements

3 MRP Requirements 1.Master production schedule 2.Specification of bill of materials 3.Inventory availability 4.Purchasing orders outstanding 5.Lead times

4 MRP Requirements 1.Master production schedule – Schedule of what is to be made and when Example: Marion’s Deli Gross Requirements for Ham Sandwich Day1011121314 Amount8045808677 Gross Requirements for Grilled Cheese Sandwich Day1011121314 Amount3037656870

5 MRP Requirements 1.Master production schedule – Schedule of what is to be made and when For your project: – Your schedule is derived from your projected demand – You can detail further into daily or weekly etc…

6 MRP Requirements 2. Specification of Bill of Materials - A listing of the components and their description and the quantity of each required to make one unit of product Example: Ham Sandwich

7 MRP Requirements 2. Specification of Bill of Materials - A listing of the components and their description and the quantity of each required to make one unit of product For your projects: GroupProductMaterials Fish ni JuanCanned Good 1Tilapia, regular spices, oil, extenders, cans DeliberryPackaged food 1Chicken, rice, spices, vegetables, packaging NutriteDried PastaBanana flour, oil, salt, packaging Optical boutiqueEyewear 1Frame, lenses Nature’s CoalPackaged coalRice husks, corn hull, packaging Activ-ET-shirtT-shirt, ink, packaging

8 MRP Requirements 3.Inventory Availability – What is in stock? 4.Purchase Orders Outstanding – What is in order? Example: Marion’s Deli In preparation of the start of operations in Day 10. The Deli has already stocked 100 pieces of cheese, 100 pieces of ham and 20 pieces of bread. No orders are outstanding

9 MRP Requirements 5.Lead times – the time between recognition of the need for an order and receiving it. Example: Marion’s Deli Expected lead time for orders: ItemLead time Ham Sandwich1 day Cheese2 days Bread1 day Ham3 days

10 Time Phased Product Structure

11 MRP Schedule Result of adjusting gross requirement for inventory on hand and scheduled receipts.

12 Class Schedule DateIn Class ActivityDepartment Requirements March 6No class Pass 3 due by 5:00PM in JGSOM Pass 3 should include the entire paper Include PICS Page Pass with proposed panelist’s CV March 8 Return of HW#7 Return of Pass#3 Consultations for final pass and final defense No department submission March 11No class FINAL PASS due by 5:00PM in JGSOM March 13 In-class case activity on JIT systems No department submission March 15No classNo department submission March 16FINAL DEFENSE


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