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