1. Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc. Upper Saddle River, N.J. 07458 14-1 Operations Management Material Requirements Planning (MRP) & ERP Chapter 14

2. Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc. Upper Saddle River, N.J. 07458 14-2 Outline  GLOBAL COMPANY PROFILE: COLLINS INDUSTRIES  DEPENDENT INVENTORY MODEL REQUIREMENTS  Master Production Schedule  Bills of Materials  Accurate Inventory records  Purchase Orders Outstanding  Lead Times for Each Component  MRP STRUCTURE

3. Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc. Upper Saddle River, N.J. 07458 14-3 Outline - Continued  MRP MANAGEMENT  MRP Dynamics  MRP and JIT  LOT-SIZING TECHNIQUES  EXTENSIONS IN MRP  Closed-Loop MRP  Capacity Planning  Material Requirements Planning II (MRP II)  MRP IN SERVICES

4. Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc. Upper Saddle River, N.J. 07458 14-4 Outline - Continued  DISTRIBUTION RESOURCE PLANNING (DRP)  ENTERPRISE RESOURCE PLANNING (ERP)  Advantages and Disadvantages of ERP System  ERP in the Service Sector

5. Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc. Upper Saddle River, N.J. 07458 14-5 Learning Objectives When you complete this chapter, you should be able to : Identify or Define :  Planning bills and kits  Phantom bills  Low-level coding  Lot sizing

6. Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc. Upper Saddle River, N.J. 07458 14-6 Learning Objectives - Continued When you complete this chapter, you should be able to : Describe or Explain:  Material requirements planning  Distribution requirements planning  Enterprise resource planning  How ERP works  Advantages and disadvantages of ERP systems