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MaterialRequirementPlanning(MRP)MaterialRequirementPlanning1ContributorstoMRPJosephOrlickyGeorgePlosslOliverWightAmericanProductionandInventoryControlSocietyContributorstoMRPJosephOrli2WhatisMRP?ComputerizedInventoryControlProductionPlanningSystemManagementInformationSystemManufacturingControlSystemWhatisMRP?ComputerizedInven3WhentouseMRPJobShopProductionComplexProductsAssemble-to-OrderEnvironmentsDiscreteandDependentDemandItemsWhentouseMRPJobShopProduc4WhatcanMRPdo?ReduceInventoryLevelsReduceComponentShortagesImproveShippingPerformanceImproveCustomerServiceImproveProductivitySimplifiedandAccurateSchedulingReducePurchasingCostImproveProductionSchedulesReduceManufacturingCostReduceLeadTimesLessScrapandReworkHigherProductionQualityWhatcanMRPdo?ReduceInvento5WhatcanMRPdo?ImproveCommunicationImprovePlantEfficiencyReduceFreightCostReductioninExcessInventoryReduceOvertimeImproveSupplySchedulesImproveCalculationofMaterialRequirementsImproveCompetitivePositionWhatcanMRPdo?ImproveCommun6ThreeBasicStepsofMRPIdentifyingRequirementsRunningMRP–CreatingtheSuggestionsFirmingtheSuggestionsThreeBasicStepsofMRPIdenti7Step1:IdentifyingtheRequirementsQuantityonHandQuantityonOpenPurchaseOrderQuantityin/orPlannedforManufacturingQuantityCommittedtoExistingOrdersQuantityForecastedStep1:IdentifyingtheRequi8Step1:ImportantInformation

MRPis…..CompanySensitiveLocationSensitiveDateSensitiveStep1:ImportantInformation9Step2:RunningMRP–CreatingtheSuggestionsCriticalItemsExpediteItemsDelayItemsStep2:RunningMRP–Creating10Step3:FirmingtheSuggestionsManufacturingOrdersPurchasingOrdersVariousReportsStep3:FirmingtheSuggestio11OverviewoftheMRPSystemProductStructureFileMasterProductionScheduleInventoryMasterFileMaterialRequirementsPlanningManufacturingOrdersPurchaseOrdersVariousReportsOverviewoftheMRPSystemProd12MRPInputsProductStructureFileMasterProductionScheduleInventoryMasterFileMRPInputsProductStructureFi13ProductStructureFileBillofMaterialsProductStructureFileBillof14MasterProductionScheduleScheduleofFinishedProductsRepresentsProduction,notDemandCombinationofCustomerOrdersandDemandForecastsWhatNeedstobeProducedMasterProductionScheduleSche15InventoryMasterFileOn-HandQuantitiesOn-OrderQuantitiesLotSizesSafetyStockLeadTimePast-UsageFiguresInventoryMasterFileOn-HandQ16MRPProcessSchedulestheProductionofallitemsusinganMRPMatrixItem:Low-LevelCode:LotSize:LeadTime:PD12345GrossRequirementsScheduledReceiptsProjectedonHandNetRequirementsPlannedOrderReceiptsPlannedOrderReleasesMRPMatrixMRPProcessSchedulestheProdu17TermsDefinedItem–nameornumberfortheitembeingscheduledLow-LevelCode–thelowestleveloftheitemontheproductstructurefileLotSize–ordermultiplesofquantityLeadTime–thetimefromwhenanorderisplacedtowhenitisreceivedPD–PastDueTimeBucket,ordersbehindscheduleTermsDefinedItem–nameornu18TermsDefinedGrossRequirements–demandforanitembytimeperiodScheduledReceipts–materialalreadyorderedProjectedonHand–expectedendinginventoryNetRequirements–numberofitemstobeprovidedandwhenPlannedOrderReceipts–netrequirementsadjustedforlotsizePlannedOrderReleases–plannedorderreceiptsoffsetforleadtimesTermsDefinedGrossRequirement19ExampleoftheMRPProcessItem:ALow-LevelCode:1LotSize:25LeadTime:1PD12345GrossRequirements1015252530ScheduledReceipts25ProjectedonHand20NetRequirementsPlannedOrderReceiptsPlannedOrderReleasesExampleoftheMRPProcessItem20ExampleoftheMRPProcessItem:ALow-LevelCode:1LotSize:25minLeadTime:1PD12345GrossRequirements1015252530ScheduledReceipts25ProjectedonHand201020202015NetRequirements5510PlannedOrderReceipts252525PlannedOrderReleases2525253025ExampleoftheMRPProcessItem21MRPOutputsManufacturingOrdersPurchasingOrdersVariousReportsMRPOutputsManufacturingOrder22HubbellLightingCaseManufacturesIndustrialLightingProductsGood-QualityProductsPooratMeetingDueDatesWorkisSpecializedforEachCustomerJobShopEnvironmentComplexProductsHubbellLightingCaseManufactu23HubbellLightingCaseBeforeMRPImplementationLessthan75%oforderscompletedontimeAfterMRPImplementation97%oforderscompletedontime2%oforderscompletedwith1to2daysafterduedateHubbellLightingCaseBeforeMR24SummaryofMRPMRPisa…..ComputerizedInventoryControlProductionPlanningSystemthat…..SchedulesComponentItemsasNeededwhichwill…..TrackInventoryand…..HelpyouinmanyotheraspectsofbusinessSummaryofMRPMRPisa…..25ReferencesReferences26MaterialRequirementPlanning(MRP)MaterialRequirementPlanning27ContributorstoMRPJosephOrlickyGeorgePlosslOliverWightAmericanProductionandInventoryControlSocietyContributorstoMRPJosephOrli28WhatisMRP?ComputerizedInventoryControlProductionPlanningSystemManagementInformationSystemManufacturingControlSystemWhatisMRP?ComputerizedInven29WhentouseMRPJobShopProductionComplexProductsAssemble-to-OrderEnvironmentsDiscreteandDependentDemandItemsWhentouseMRPJobShopProduc30WhatcanMRPdo?ReduceInventoryLevelsReduceComponentShortagesImproveShippingPerformanceImproveCustomerServiceImproveProductivitySimplifiedandAccurateSchedulingReducePurchasingCostImproveProductionSchedulesReduceManufacturingCostReduceLeadTimesLessScrapandReworkHigherProductionQualityWhatcanMRPdo?ReduceInvento31WhatcanMRPdo?ImproveCommunicationImprovePlantEfficiencyReduceFreightCostReductioninExcessInventoryReduceOvertimeImproveSupplySchedulesImproveCalculationofMaterialRequirementsImproveCompetitivePositionWhatcanMRPdo?ImproveCommun32ThreeBasicStepsofMRPIdentifyingRequirementsRunningMRP–CreatingtheSuggestionsFirmingtheSuggestionsThreeBasicStepsofMRPIdenti33Step1:IdentifyingtheRequirementsQuantityonHandQuantityonOpenPurchaseOrderQuantityin/orPlannedforManufacturingQuantityCommittedtoExistingOrdersQuantityForecastedStep1:IdentifyingtheRequi34Step1:ImportantInformation

MRPis…..CompanySensitiveLocationSensitiveDateSensitiveStep1:ImportantInformation35Step2:RunningMRP–CreatingtheSuggestionsCriticalItemsExpediteItemsDelayItemsStep2:RunningMRP–Creating36Step3:FirmingtheSuggestionsManufacturingOrdersPurchasingOrdersVariousReportsStep3:FirmingtheSuggestio37OverviewoftheMRPSystemProductStructureFileMasterProductionScheduleInventoryMasterFileMaterialRequirementsPlanningManufacturingOrdersPurchaseOrdersVariousReportsOverviewoftheMRPSystemProd38MRPInputsProductStructureFileMasterProductionScheduleInventoryMasterFileMRPInputsProductStructureFi39ProductStructureFileBillofMaterialsProductStructureFileBillof40MasterProductionScheduleScheduleofFinishedProductsRepresentsProduction,notDemandCombinationofCustomerOrdersandDemandForecastsWhatNeedstobeProducedMasterProductionScheduleSche41InventoryMasterFileOn-HandQuantitiesOn-OrderQuantitiesLotSizesSafetyStockLeadTimePast-UsageFiguresInventoryMasterFileOn-HandQ42MRPProcessSchedulestheProductionofallitemsusinganMRPMatrixItem:Low-LevelCode:LotSize:LeadTime:PD12345GrossRequirementsScheduledReceiptsProjectedonHandNetRequirementsPlannedOrderReceiptsPlannedOrderReleasesMRPMatrixMRPProcessSchedulestheProdu43TermsDefinedItem–nameornumberfortheitembeingscheduledLow-LevelCode–thelowestleveloftheitemontheproductstructurefileLotSize–ordermultiplesofquantityLeadTime–thetimefromwhenanorderisplacedtowhenitisreceivedPD–PastDueTimeBucket,ordersbehindscheduleTermsDefinedItem–nameornu44TermsDefinedGrossRequirements–demandforanitembytimeperiodScheduledReceipts–materialalreadyorderedProjectedonHand–expectedendinginventoryNetRequirements–numberofitemstobeprovidedandwhenPlannedOrderReceipts–netrequirementsadjustedforlotsizePlannedOrderReleases–plannedorderreceiptsoffsetforleadtimesTermsDefinedGrossRequirement45ExampleoftheMRPProcessItem:ALow-LevelCode:1LotSize:25LeadTime:1PD12345GrossRequirements1015252530ScheduledReceipts25ProjectedonHand20NetRequirementsPlannedOrderReceiptsPlannedOrderReleasesExampleoftheMRPProcessItem46ExampleoftheMRPProcessItem:ALow-LevelCode:1LotSize:25minLeadTime:1PD1234

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