Production Planning and Control

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Production Planning and Control

Materials Requirement Planning

Dr. Lotfi K. Gaafar

Production Planning and Control- Materials Requirement Planning (1) Gaafar 2001
Production Planning and Control
The Production Control System

Demand Sales and


order entry Customer
forecasting

Aggregate Materials Shop-floor Shipping


planning requirement scheduling Production and
planning and control receiving

Inventory
Inventory Vendors
management

Production Planning and Control- Materials Requirement Planning (2) Gaafar 2001
Material Requirements Planning

Given a master schedule, what raw materials and


components quantities are needed and when.
Master Production
Scheduling
Bills of
Material
Material Requirements
Planning
Inventory
Status
Requires:
Quantities and
Order Times
•Bill of material (Manufacturing tree)
•Inventory status
•Lead times

Production Planning and Control- Materials Requirement Planning (3) Gaafar 2001
Assumptions

1. Known deterministic demands.

2. Fixed, known production leadtimes.

3. Infinite capacity.

Idea is to “back out” demand for components by using


leadtimes and bills of material.

Production Planning and Control- Materials Requirement Planning (4) Gaafar 2001
MRP Procedure

1. Netting: net requirements against projected inventory

2. Lot Sizing: planned order quantities

3. Time Phasing: planned orders backed out by leadtime

4. BOM Explosion: gross requirements for components

Production Planning and Control- Materials Requirement Planning (5) Gaafar 2001
Inputs

– Master Production Schedule (MPS): due dates and


quantities for all top level items

– Bills of Material (BOM): for all parent items

– Inventory Status: (on hand plus scheduled receipts) for all


items

– Planned Leadtimes: for all items

Production Planning and Control- Materials Requirement Planning (6) Gaafar 2001
Material Requirements Planning
Example
Consider the manufacturing tree
(BOM) and the accompanying
information.

Period GR
1 10
2 15
3 12
Scheduled Order Receipts (SOR)
4 16
5 15 Period 1 2 3 4 5 6 7 8
6 12 CT 12 14 0 0 0 0 0 0
7 18 B00 8 2 2 0 0 0 0 0
8 14 X10 2 2 1 1 0 0 0 0

Production Planning and Control- Materials Requirement Planning (7) Gaafar 2001
Material Requirements Planning
Example
Time 1 2 3 4 5 6 7 8
GR 10 15 12 16 15 12 18 14
CT SOR 12 14 0 0 0 0 0 0
BI 0 2 1 0 0 0 0 0
LT = 2 NR -2 -1 11 16 15 12 18 14
POR 0 0 11 16 15 12 18 14
EI 2 1 0 0 0 0 0 0
PORE 11 16 15 12 18 14 ? ?

Time 1 2 3 4 5 6 7 8
GR 22 32 30 24 36 28 ? ?
SOR 8 2 2 0 0 0 0 0
B00 BI 14 0 0 0 0 0 0 0
NR 0 30 28 24 36 28 ? ?
LT = 1 POR 0 30 28 24 36 28 ? ?
EI 0 0 0 0 0 0 0 0
PORE 30 28 24 36 28 ? ? ?

Production Planning and Control- Materials Requirement Planning (8) Gaafar 2001
Material Requirements Planning
Example
Time 1 2 3 4 5 6 7 8
GR 41 44 39 48 46 14 ? ?
SOR 2 2 1 1 0 0 0 0
X10 BI 8 0 0 0 0 0 0 0
LT = 1 NR 31 42 38 47 46 14 0 0
POR 31 42 38 47 46 14 0 0
EI 0 0 0 0 0 0 0 0
PORE 42 38 47 46 14 0 0 ?

33 X10 cannot be scheduled.


How many CTs will be affected?
How can we fix the problem?

Production Planning and Control- Materials Requirement Planning (9) Gaafar 2001
Rough Cut Capacity Planning (RCCP)

– Quick check on capacity of key resources

– Use Bill of Resource (BOR) for each item in MPS

– Generates usage of resources by exploding MPS against BOR


(offset by leadtimes)

– Infeasibilities addressed by altering MPS or adding capacity (e.g.,


overtime)

Production Planning and Control- Materials Requirement Planning (10) Gaafar 2001

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