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Master Product Scheduling MPS Material Requirements Planning MRP

From Aggregate to Master Planning. Aggregate Production Plan. . Capacity ?. Master Production Schedule. . Feasibility approved?. Material Requirement Planning. . . . . Yes. Yes. . . No. No. Can we produce 10,000 equivalent units (total for products A, B and C) per month for the next year?. Can we produce 500 units of A, 600 of B and 400 of C per week for the next month ?.

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Master Product Scheduling MPS Material Requirements Planning MRP

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    1. Master Product Scheduling (MPS) Material Requirements Planning (MRP)

    3. Production Plan VS Master Production Schedule

    4. The Aggregate Plan and the Master Production Schedule

    5. When to Order ? Three approaches Reorder Point (continuous review system) Constant amount ordered when inventory declines to predetermined level Periodic Review System (fixed time review period) Order placed for variable amount after fixed passage of time Time Phased Order Point Master Production Schedule Material Requirements Planning Distribution Requirements Planning

    6. Objectives of the Master Production Schedule Establish and meet delivery dates Determine launch dates for orders Optimize the use of available capacity Meet the objectives of the aggregate plan Make trade-off decisions between production and marketing

    7. Master Production Plan : Inputs Inputs to the MPS are : Beginning Inventory Forecasts for each week of the schedule Customer orders (quantities already committed to customers) Total available capacity for each week of the schedule

    8. Developing a MPS Identification of individual products. Development of an MPS grid for each product in real units according to the available data (forecast, committed orders, inventory levels, lot sizes, lead times) and the specified constraints. Rough cut capacity planning in equivalent units (for all products). Does the plans meet all constraints? (capacity limits, stock levels, etc.)

    9. Developing a MPS

    10. Developing a MPS

    11. Preliminary Plan : Complete the following MPS

    12. Preliminary Plan : Complete the following MPS

    13. Rough Cut Capacity Planning Approximate calculation of the capacity required at critical work centers to meet the demand in order to check the feasibility of a Master Production Schedule. When the capacity required exceeds the capacity available the MPS must be adjusted before proceeding to the MRP.

    14. Final MPS : Rough Cut Capacity Planning

    15. Final MPS : Modifications to the Preliminary Plan

    16. Final MPS : Modifications to the Preliminary Plan

    17. Reading

    18. Demand Characteristics

    19. Reorder Point System VS MRP

    20. Reorder Point System VS MRP

    21. Objectives of MRP Calculate with precision the quantities of components, parts and raw material that must be produced or purchased in order to realize the MPS ? HOW MANY ? To determine when to release production or to place the orders in order to receive the required units at the right moment ? WHEN ?

    22. Material Requirements Planning : Information Structure

    23. Bill of Materials (BOM)

    24. Problems

    25. MRP Matrix

    26. MRP calculation process Always process the items in the order of their low level code: level 0 ? level 1 ? level 2 When an item appears at different levels of the product structure(s), the lowest level (highest number) is the level that we must use. Gross requirements for an item are calculated by: Multiplying the quantity of the planned order release(s) of the parent(s) of the item by the quantity required as per the BOM for the specific parent-component relationship(s).

    27. Lot Sizing in MRP Systems Lot-for-lot (L4L) ordering policy Minimum order quantity (Ex: Min 250) Multiple order quantity (Ex: X100) Economic order quantity (Ex: 350; annual demand: 4 200) Periodic order quantity (Ex: 2 months)

    28. Example A company is manufacturing several office supply items among which we have: Clipboard Lapdesk etc.

    29. Product Structure

    30. Product Structure Tree

    31. MRP: Example (cont.)

    32. MRP: Example (cont.)

    33. MRP: Example (cont.)

    34. MRP: Example (cont.)

    35. MRP: Example (cont.)

    38. Establishing the Minimum Planning Horizon

    39. Establishing the Minimum Planning Horizon

    40. MPS / MRP PROCESS

    41. Readings Review problems: To be announced Review Reading for MRP: S&H 2007, 484-497 Readings for next class (scheduling) : S&H 2007, chap. 15 pp 547-560

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