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Production Planning and Control Materials Requirement Planning

Production Planning and Control Materials Requirement Planning. Dr. Lotfi K. Gaafar. Production Planning and Control. The Production Control System. Sales and order entry. Demand forecasting. Customer. Shop-floor scheduling and control. Materials requirement planning. Aggregate planning.

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Production Planning and Control Materials Requirement Planning

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  1. Production Planning and Control Materials Requirement Planning Dr. Lotfi K. Gaafar Production Planning and Control- Materials Requirement Planning(1)

  2. Production Planning and Control The Production Control System Sales and order entry Demand forecasting Customer Shop-floor scheduling and control Materials requirement planning Aggregate planning Shipping and receiving Production Inventory management Inventory Vendors Production Planning and Control- Materials Requirement Planning(2)

  3. Material Requirements Planning • Given a master schedule, what raw materials and components quantities are needed and when. • Requires: • Bill of material (Manufacturing tree) • Inventory status • Lead times Master Production Scheduling Bills of Material Material Requirements Planning Inventory Status Quantities and Order Times Production Planning and Control- Materials Requirement Planning(3)

  4. 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)

  5. 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)

  6. 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)

  7. Material Requirements Planning Example Consider the manufacturing tree (BOM) and the accompanying information. Production Planning and Control- Materials Requirement Planning(7)

  8. Material Requirements Planning Example CT LT = 2 B00 LT = 1 Production Planning and Control- Materials Requirement Planning(8)

  9. Material Requirements Planning Example X10 LT = 1 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)

  10. 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)

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