1. MATERIAL REQUIREMENT PLANNING
MATERIAL REQUIREMENT PLANNING(MRP) IS A SOFTWARE BASED PRODUCTION PLANNING AND INVENTORY CONTROL SYSTEM USED TO MANAGE MANUFACTURING PROCESSES.IT IS A PRODUCTION TOOL OF MANAGEMENT.

2. OBJECTIVES
ENSURE MATERIALS AND PRODUCTS ARE AVAILABLE FOR PRODUCTION AND DELIVERY TO CUSTOMERS
MAINTAIN LOWEST POSSIBLE LEVEL OF INVENTORY
PLAN MANUFACTURING ACTIVITIES DELIVERY SCHEDULES AND PRCHASING ACTIVITIES

3. BENEFITS REDUCED INVENTORY LEVELS IMPROVRD PRODUCTIVITY
REDUCED LEAD TIME
IMPROVED CUTOMER SERVICE
INCREASED PRODUCTION

4. ELEMENTS OF MRP MASTER PRODUCTION SCHEDULE(MPS) BILL OF MATERIALS(BOM)
QUANTITY ON HAND
SALES ORDER QUANTITIES/DUE DATES
SCRAP RATE
PURCHASE ORDER QUANTITIES/DUE DATES
SAFETY STOCK REQUIREMENT

5. Master ProductionSchedule(MPS):MPS is designed to
meet the market demand
(both the firm orders and forecasted demand)
in future in the taken planning horizon. MPS mainly
depicts the detailed delivery schedule of the end products.
However, orders for replacement components can also be
included in it to make it more comprehensive.

6. Bill of Materials (BOM): BOM represents
the product structure. It encompasses information
about all sub components needed, their quantity,
and their sequence of buildup in the end product. Information
about the work centers performing buildup operations
is also included in it.

8. Just-In-Time Production Systems
Just-in-time (JIT) production systems take a
“demand pull” approach in which goods are
only manufactured to satisfy customer orders.

9. Major Features of a JIT System
1. Organizing production in manufacturing cells
2. Hiring and retaining multi-skilled workers
3. Emphasizing total quality management
4. Reducing manufacturing lead time and setup time
5. Building strong supplier relationships

10. Major Features of a JIT System
What information may management accountants use?
Personal observation by production
line workers and managers
Financial performance measures,
such as inventory turnover ratios
Nonfinancial performance measures
of time, inventory, and quality.

11. SEVEN WASTES WASTE OF OVER PRODUCTION TRANSPORTATION WASTE
PROCESSING WASTE
PRODUCT DEFECTS
WAITING/IDLE TIME
INVENTORY WASTE
WASTE OF MOTION

12. KANBAN
A SYSTEM OF CONTINUOS SUPPLY OF COMPONENTS,PARTS AND SUPPLIES, SUCH THAT WORKERS HAVE WHAT THEY NEED, WHERE THEY NEED IT, WHEN THEY NEED IT
KAN---VISUAL
BAN---CARD