Material Requirement planning (factors,inputs,outputs,benifits)
- 2. COMPUTER AIDED MANUFACTURING(CAM) TOPIC:- MATERIAL REQUIREMENT PLANNING(MRPI) Prepared by: NAME ENRL. NO. ATODARYA DHRUVE RAJ 130450119006 BABARIA RAZIN 130450119007 BALASHAIKH M. ASHIF 130450119008
- 3. Material requirement planning (MRP) • Material requirement planning (MRP) is a computerized function or computational technique which converts the master schedule for the product on to a detailed schedule for the procurement of the raw materials and vendor manufactured components.
- 4. Objectives • To ensure right quantity of material is available for production at right time to produce right quantity of final product. • To ensure minimum inventory. • To maintain the delivery sehedule of the final product.
- 5. Factor to be considered in MRR • Dependent and Independent demands • Lumpy demand • Ordering and Manufacturing lead times • Items of Common use
- 6. Dependent and Independent demands • The dependent demand means the demand for the item A depends upon the demand for the item B. • For example, the demand for the raw material depends upon the demand for the particular component and demand for that component in turn depends upon the market demand for the product of which the component is a part.
- 7. • The independent demand means the demand for the item A is independent of the demand for the item B. • For example, the demand for the spare parts is independent of the demand for the product.
- 8. Lumpy demand • In some cases of manufacturing the demand for the raw material will occur in large increments rather than in a continuous constant rate. • The large increments corresponds to a contain batch of the final product, such demand is called lumpy demand.
- 9. Ordering and Manufacturing lead times • The lead time for an item is the time required to complete an item from the beginning to the end. • There are two types of lead times: 1) Ordering lead time 2) Manufacturing lead time
- 10. 1) Ordering lead time: • An ordering lead time of an item is the time required from the initiation of the purchase requisition to the receipt of the item from vendor. 2) Manufacturing lead time: • The manufacturing lead time for an item is the time required for the complete manufacturing of the item from the start to the finish.
- 11. Items of common use • In manufacturing a single raw material may be used to produced more than one type of component. Again, a single component may be used on more than one final product. • For example, a same alloy steel rod may be used as a raw material for the different components. • Similarly M10 screws may be used on number of products.
- 12. Important inputs and outputs of MRPI
- 13. Overview of the MRP System Master Production Schedule Material Requirements Planning Product Structure File Item Master file Planned Order Release Work orders Purchase Orders Rescheduling notices
- 14. 1) Bill of materials • Product structure file • Determines which component items need to be scheduled
- 15. 15 2. Master Production Schedule(MPS) • Drives MRP process with a schedule of finished products. • Quantities represent production not demand. • Quantities may consist of a combination of customer orders & demand forecasts. • Quantities represent what needs to be produced, not what can be produced.
- 16. Example PERIOD MPS ITEM 1 2 3 4 5 Clipboard 85 95 120 100 100 Lapdesk 0 50 0 50 0 Lapboard 75 120 47 20 17 Pencil Case 125 125 125 125 125
- 17. 3. Inventory Record • Contains an extensive amount of information on every item that is produced, ordered, or inventoried in the system Item Pressboard Lead time 1 Item no. 734 Annual demand 5000 Item type Purch Holding cost 1 Product/sales class Comp Ordering/setup cost 50 Value class B Safety stock 0 Buyer/planner RSR Reorder point 39 Vendor/drawing 07142 EOQ 316 Phantom code N Minimum order qty 100 Unit price/cost 1.25 Maximum order qty 500 Pegging Y Multiple order qty LLC 1 Policy code 3 DESCRIPTION INVENTORY POLICY
- 18. Outputs of MRPI Reports of Planned Supply Orders • these reports contain the supply orders planned to be released in future. Supply orders • These supply orders are to be issued by the purchase department Rescheduling Notices • These notices indicate the changes in due dates of supply orders which is because of changes in the master schedule. 18
- 19. Cancellation Notices • These notices inform the cancellation of supply orders because of the changes in the master schedule. Inventory Status Report • These report gives the detail status of the inventory.
- 20. The Benefits of MRP • Inventory reduction. • Reduction in production & delivery time. • Increased efficiency. • Faster response to market changes. • Improved labour & equipment utilization. • Better inventory planning & scheduling. • Reduced inventory levels without reduced customer service.
- 21. Summary • In the era of computer and IT, it is necessary to use new technologies for fester growing organization. Any company wants to lead in the competetitive market by introducing qualitative product with in a short period of time. Like that in manufacturing organization MRP system helps to reduce the manufacturing time of a product by insuring the availability of materials for product assembly in the necessary quantities at the required time. It also help to reduce raw material purchasing ,purchases parts & working process inventory. So MRP uses reducing inventory cost, reducing completion time of manufacturing with maintaining quality. It provides customer, a greater return value of their money.