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MRP 04/08/2016

MRP = Manufacturing Planning and Control Hierarchy


Questions of priority planning
o How much should we make and buy?
o When should we make and buy?
o What should we make and buy?
Turning master scheduling into more detailed plan
Demand is either independent (direct request for product) or
dependent (occurs because of a translation in independent demand
and the actual product, not even really demand but requirements)
Objectives of MRP
o Determines materials requirements what is required, how
much
o Keeps priorities current
Inputs of MRP
o MPS quantities and due dates (time)
o Planning Data lead time, lot size
o BOM bill of materials
o Inventory Status working with no inventory in MTO
workplace is a good thing
Planning Priority
o Scheduled receipts (what you have in terms of order
receipts), planned orders receipts (the due date), planned
order releases (something that happens before)
Planning software: develops the priority plan for the release and
receipt of planned orders
o Advises planners of the need for actions to maintain the
priority plan release planned orders, take action to
maintain due dates affected by material shortages, delayed
production, and other events
o Updates (re-plans) the priority plan to keep material
requirements, due dates, and inventory status current
Bill of materials document showing what goes into the final
product and the quantities , actual product structure
o **when there is nothing below the component, you are
purchasing it**
o offsetting, connecting, exploding *** 3 things MRP does
o Single level bill
o Multilevel bill collection of single level bills
BOM exercise (ON QUIZ) EXPLODING
o A is the parent
Single level bill is B(2), C(4), D(3)
What goes into b? (it is a parent) E, F
C is a parent G
Is D a parent? No
24 ITEMS OF G NEED TO BE PURCHASED
planning bill used when it is too hard to plan individual products
o anticipate what you need
o making it convenient to schedule
Uses of Bill of Materials
o Product definition
o Engineering change control
o Planning
o Production
o Customer service
o Service and repair
o Cost accounting

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