1 / 65

Chapter 12 Resource Planning

Chapter 12 Resource Planning. Learning Objectives. Be Able To Apply Concepts Listed In Learning Goals Be Able To Use Formulas Listed In The Equation Summary of Chapter. Material Requirements Planning (MRP). MRP. Computer Based System

jorjanna-gomez
Download Presentation

Chapter 12 Resource Planning

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Chapter 12 Resource Planning

  2. Learning Objectives • Be Able To Apply Concepts Listed In Learning Goals • Be Able To Use Formulas Listed In The Equation Summary of Chapter

  3. Material Requirements Planning (MRP)

  4. MRP • Computer Based System • Explodes Master Production Schedule (MPS) Into Required Amounts of Raw Materials & Subassemblies to Support MPS • Nets Against Current Orders & Inventories to Develop Production & Purchased Material Ordering Schedules

  5. Objectives of MRP • Improve Customer Service • Reduce Inventory Investment • Improve Plant Operating Efficiency

  6. Elements of MRP Inputs Outputs Service-Parts Orders and Forecasts Inventory Transaction Data Order Changes Order Inventory Status File Planned Order Schedule MRP System Master Production Schedule Planning Report Performance Bill of Materials File Action Notices

  7. MRP Computer Program • Begins With Number of End Items Needed • Add Service Parts Not Included in MPS • Explode MPS Into Gross Requirements by Consulting Bill of Materials File • Modify Gross Requirements to Get Net Requirements: • Net Requirements = Gross Requirements + Allocated Inventory + Safety Stock - Inventory On Hand • Offset Orders to Allow for Lead Time

  8. Engineering and process designs Bills of materials Material Requirements Plan Inputs

  9. Authorized master production schedule Other sources of demand Engineering and process designs Bills of materials Material Requirements Plan Inputs

  10. Authorized master production schedule Other sources of demand Engineering and process designs Inventory transactions Inventory records Bills of materials Material Requirements Plan Inputs

  11. Authorized master production schedule Other sources of demand Engineering and process designs Inventory transactions Inventory records MRP explosion Bills of materials Material Requirements Plan Explosion

  12. Authorized master production schedule Other sources of demand Engineering and process designs Inventory transactions Inventory records MRP explosion Bills of materials Material requirements plan Material Requirements Plan Output

  13. Bill of Materials Back slats Seat cushion Leg supports Seat-frame boards Back legs Front legs A Ladder-back chair

  14. A Ladder-back chair Back slats Seat cushion B (1) Ladder-back subassembly C (1) Seat subassembly D (2) Front legs E (4) Leg supports Leg supports Seat-frame boards F (2) Back legs G (4) Back slats H (1) Seat frame I (1) Seat cushion Back legs Front legs A Ladder-back chair J (4) Seat-frame boards Bill of Materials Level Code 0 1 2 3

  15. Master Production Schedule April May 1 2 3 4 5 6 7 8 Ladder-back chair 150 150 Kitchen chair 120 120 Desk chair 200 200 200 200 Aggregate production plan 670 670 for chair family

  16. Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Week 1 2 3 4 5 6 7 8 Gross requirements 150 0 0 120 0 150 120 0 Scheduled receipts 230 0 0 0 0 0 0 0 Projected on-hand inventory 37 Planned receipts Planned order releases Inventory Record

  17. Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Week 1 2 3 4 5 6 7 8 Gross requirements 150 0 0 120 0 150 120 0 Scheduled receipts 230 0 0 0 0 0 0 0 Projected on-hand inventory 37 Planned receipts Explanation: Gross requirements are the total demand for the two chairs. Projected on-hand inventory in week 1 is 37 + 230 – 150 Planned order releases Inventory Record

  18. Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Week 1 2 3 4 5 6 7 8 Gross requirements 150 0 0 120 0 150 120 0 Scheduled receipts 230 0 0 0 0 0 0 0 Projected on-hand inventory 37 117 Planned receipts Explanation: Gross requirements are the total demand for the two chairs. Projected on-hand inventory in week 1 is 37 + 230 – 150 = 117 units. Planned order releases Inventory Record

  19. Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Week 1 2 3 4 5 6 7 8 Gross requirements 150 0 0 120 0 150 120 0 Scheduled receipts 230 0 0 0 0 0 0 0 Projected on-hand inventory 37 117 Planned receipts Scheduled or planned receipts in week t Projected on-hand inventory balance at end of week t Inventory on hand at end of week t - 1 Gross requirements in week t = + – Planned order releases Inventory Record

  20. Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Week 1 2 3 4 5 6 7 8 Gross requirements 150 0 0 120 0 150 120 0 Scheduled receipts 230 0 0 0 0 0 0 0 Projected on-hand inventory 37 117 117 117 – 3 – 3 –153 –273 –273 Planned receipts Scheduled or planned receipts in week t Projected on-hand inventory balance at end of week t Inventory on hand at end of week t - 1 Gross requirements in week t = + – Planned order releases Inventory Record

  21. Explanation: Without a new order in week 4, there will be a shortage of three units: 117 + 0 + 0 – 120 = – 3 units. Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Week 1 2 3 4 5 6 7 8 Gross requirements 150 0 0 120 0 150 120 0 Scheduled receipts 230 0 0 0 0 0 0 0 Projected on-hand inventory 37 117 117 117 –3 – 3 –153 – 273 – 273 Planned receipts Planned order releases Planned Orders

  22. Explanation: Adding the planned receipt brings the balance to 117 + 0 + 230 – 120 = 227 units. Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Week 1 2 3 4 5 6 7 8 Gross requirements 150 0 0 120 0 150 120 0 Scheduled receipts 230 0 0 0 0 0 0 0 Projected on-hand inventory 37 117 117 117 227 Planned receipts 230 Planned order releases Planned Orders

  23. Explanation: Adding the planned receipt brings the balance to 117 + 0 + 230 – 120 = 227 units. Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Week 1 2 3 4 5 6 7 8 Gross requirements 150 0 0 120 0 150 120 0 Scheduled receipts 230 0 0 0 0 0 0 0 Projected on-hand inventory 37 117 117 117 227 Planned receipts 230 Planned order releases Planned Orders

  24. Explanation: Offsetting for a two-week lead time puts the corresponding planned order release back to week 2. Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Week 1 2 3 4 5 6 7 8 Gross requirements 150 0 0 120 0 150 120 0 Scheduled receipts 230 0 0 0 0 0 0 0 Projected on-hand inventory 37 117 117 117 227 Planned receipts 230 Planned order releases 230 Planned Orders

  25. Explanation: Offsetting for a two-week lead time puts the corresponding planned order release back to week 2. Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Week 1 2 3 4 5 6 7 8 Gross requirements 150 0 0 120 0 150 120 0 Scheduled receipts 230 0 0 0 0 0 0 0 Projected on-hand inventory 37 117 117 117 227 Planned receipts 230 Planned order releases 230 Planned Orders

  26. Explanation: The first planned order lasts until week 7, when projected inventory would drop to – 43. Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Week 1 2 3 4 5 6 7 8 Gross requirements 150 0 0 120 0 150 120 0 Scheduled receipts 230 0 0 0 0 0 0 0 Projected on-hand inventory –43 37 117 117 117 77 227 227 Planned receipts 230 Planned order releases 230 Planned Orders

  27. Explanation: Adding the second planned receipt brings the balance to 77 + 0 + 230 – 120 = 187. Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Week 1 2 3 4 5 6 7 8 Gross requirements 150 0 0 120 0 150 120 0 Scheduled receipts 230 0 0 0 0 0 0 0 Projected on-hand inventory 37 117 117 117 77 227 227 Planned receipts 230 230 Planned order releases 230 Planned Orders

  28. Explanation: Adding the second planned receipt brings the balance to 77 + 0 + 230 – 120 = 187. Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Week 1 2 3 4 5 6 7 8 Gross requirements 150 0 0 120 0 150 120 0 Scheduled receipts 230 0 0 0 0 0 0 0 Projected on-hand inventory 37 117 117 117 77 227 227 Planned receipts 230 230 Planned order releases 230 Planned Orders 187

  29. Explanation: The corresponding planned order release is for week 5. Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Week 1 2 3 4 5 6 7 8 Gross requirements 150 0 0 120 0 150 120 0 Scheduled receipts 230 0 0 0 0 0 0 0 Projected on-hand inventory 187 37 117 117 117 77 227 227 Planned receipts 230 230 Planned order releases 230 230 Planned Orders

  30. Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Week 1 2 3 4 5 6 7 8 Gross requirements 150 0 0 120 0 150 120 0 Scheduled receipts 230 0 0 0 0 0 0 0 Projected on-hand inventory 187 37 187 117 117 117 77 227 227 Planned receipts 230 230 Planned order releases 230 230 Planned Orders

  31. Lot-Sizing Rule Comparison • The FOQ rule generates high average inventory because it creates remnants. • The POQ rule reduces average on-hand inventory because it does a better job of matching order quantity to requirements. • The L4L rule minimizes inventory investment but maximizes the number of orders placed.

  32. Safety Stock

  33. MRP explosion MRP Outputs

  34. MRP explosion Material requirements plan • Action notices • Releasing new orders • Adjusting due dates • Priority reports • Dispatch lists • Supplier schedules • Capacity reports • Capacity requirements planning • Finite capacity scheduling • Input-output control MRP Outputs

  35. MRP explosion Material requirements plan • Action notices • Releasing new orders • Adjusting due dates • Priority reports • Dispatch lists • Supplier schedules • Capacity reports • Capacity requirements planning • Finite capacity scheduling • Input-output control Routings and time standards MRP Outputs

  36. MRP explosion Material requirements plan • Action notices • Releasing new orders • Adjusting due dates • Priority reports • Dispatch lists • Supplier schedules • Capacity reports • Capacity requirements planning • Finite capacity scheduling • Input-output control Routings and time standards Manufacturing resources plan Performance reports MRP Outputs

  37. MRP explosion Material requirements plan • Action notices • Releasing new orders • Adjusting due dates • Priority reports • Dispatch lists • Supplier schedules • Capacity reports • Capacity requirements planning • Finite capacity scheduling • Input-output control Routings and time standards Manufacturing resources plan Cost and price data Performance reports MRP Outputs

  38. Item: Seat subassembly Lot size: 230 units Lead time: 2 weeks Week 1 2 3 4 5 6 7 8 Gross requirements 0 0 0 0 150 120 150 120 Scheduled receipts 0 0 0 0 0 0 0 230 Projected on-hand inventory 37 117 117 227 227 77 187 187 117 Planned receipts 230 230 Planned order releases 230 230 MRP Explosion

  39. Item: Seat subassembly Lot size: 230 units Lead time: 2 weeks Week 1 2 3 4 5 6 7 8 Gross requirements 0 0 0 0 150 120 150 120 Planned receipts 230 230 Planned order releases 230 230 MRP Explosion

  40. Item: Seat subassembly Lot size: 230 units Lead time: 2 weeks Week 1 2 3 4 5 6 7 8 Gross requirements 0 0 0 0 150 120 150 120 Planned receipts 230 230 Planned order releases 230 230 Item: Seat frames Lot size: 300 units Lead time: 1 week Item: Seat cushion Lot size: L4L Lead time: 1 week Week Week 1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8 Gross requirements Gross requirements Scheduled receipts Scheduled receipts 300 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Projected on-hand inventory Projected on-hand inventory 40 0 Planned receipts Planned receipts Planned order releases Planned order releases MRP Explosion

  41. Item: Seat subassembly Lot size: 230 units Lead time: 2 weeks Week 1 2 3 4 5 6 7 8 Gross requirements 0 0 0 0 150 120 150 120 Planned receipts 230 230 Planned order releases 230 230 Usage quantity: 1 Usage quantity: 1 Item: Seat frames Lot size: 300 units Lead time: 1 week Item: Seat cushion Lot size: L4L Lead time: 1 week Week Week 1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8 Gross requirements Gross requirements 230 230 0 0 Scheduled receipts Scheduled receipts 300 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Projected on-hand inventory Projected on-hand inventory 40 0 Planned receipts Planned receipts Planned order releases Planned order releases MRP Explosion

  42. Item: Seat subassembly Lot size: 230 units Lead time: 2 weeks Week 1 2 3 4 5 6 7 8 Gross requirements 0 0 0 0 150 120 150 120 Planned receipts 230 230 Planned order releases 230 230 Usage quantity: 1 Usage quantity: 1 Item: Seat frames Lot size: 300 units Lead time: 1 week Item: Seat cushion Lot size: L4L Lead time: 1 week Week Week 1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8 Gross requirements Gross requirements 230 0 230 230 0 230 0 0 0 0 Scheduled receipts Scheduled receipts 300 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Projected on-hand inventory Projected on-hand inventory 40 0 Planned receipts Planned receipts Planned order releases Planned order releases MRP Explosion

  43. Item: Seat subassembly Lot size: 230 units Lead time: 2 weeks Week 1 2 3 4 5 6 7 8 Gross requirements 0 0 0 0 150 120 150 120 Planned receipts 230 230 Planned order releases 230 230 Item: Seat frames Lot size: 300 units Lead time: 1 week Item: Seat cushion Lot size: L4L Lead time: 1 week Week Week 1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8 Gross requirements Gross requirements 230 0 230 0 230 0 230 0 0 0 0 0 0 0 0 0 Scheduled receipts Scheduled receipts 300 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Projected on-hand inventory Projected on-hand inventory 40 110 180 180 180 180 0 0 0 0 0 0 40 110 110 0 0 0 Planned receipts Planned receipts 300 230 230 Planned order releases Planned order releases 300 230 230 MRP Explosion

  44. Item: Seat frames Lot size: 300 units Lead time: 1 week Item: Seat cushion Lot size: L4L Lead time: 1 week Week Week 1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8 Gross requirements Gross requirements 230 0 230 0 230 0 230 0 0 0 0 0 0 0 0 0 Planned receipts Planned receipts 300 230 230 Planned order releases Planned order releases 300 230 230 MRP Explosion

  45. Item: Seat frames Lot size: 300 units Lead time: 1 week Item: Seat cushion Lot size: L4L Lead time: 1 week Week Week 1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8 Gross requirements Gross requirements 230 0 230 0 230 0 230 0 0 0 0 0 0 0 0 0 Planned receipts Planned receipts 300 230 230 Planned order releases Planned order releases 300 230 230 Item: Seat-frame boards Lot size: 1500 units Lead time: 1 week Week 1 2 3 4 5 6 7 8 Gross requirements Scheduled receipts 0 0 0 0 0 0 0 0 Projected on-hand inventory 200 Planned receipts Planned order releases MRP Explosion

  46. Item: Seat frames Lot size: 300 units Lead time: 1 week Item: Seat cushion Lot size: L4L Lead time: 1 week Week Week 1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8 Gross requirements Gross requirements 230 0 230 0 230 0 230 0 0 0 0 0 0 0 0 0 Planned receipts Planned receipts 300 230 230 Planned order releases Planned order releases 300 230 230 Usage quantity: 4 Item: Seat-frame boards Lot size: 1500 units Lead time: 1 week Week 1 2 3 4 5 6 7 8 Gross requirements 0 0 0 0 0 1200 0 0 Scheduled receipts 0 0 0 0 0 0 0 0 Projected on-hand inventory 200 Planned receipts Planned order releases MRP Explosion

  47. Item: Seat frames Lot size: 300 units Lead time: 1 week Item: Seat cushion Lot size: L4L Lead time: 1 week Week Week 1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8 Gross requirements Gross requirements 230 0 230 0 230 0 230 0 0 0 0 0 0 0 0 0 Planned receipts Planned receipts 300 230 230 Planned order releases Planned order releases 300 230 230 Item: Seat-frame boards Lot size: 1500 units Lead time: 1 week Week 1 2 3 4 5 6 7 8 Gross requirements 0 0 0 0 0 1200 0 0 Scheduled receipts 0 0 0 0 0 0 0 0 Projected on-hand inventory 200 500 500 500 500 500 200 200 200 Planned receipts 1500 Planned order releases 1500 MRP Explosion

  48. CRP

  49. CRP • Tests MPS for Feasibility • Utilizes Routings to Determine Labor/Machine Loads • If Schedule Feasible, Recommends Freezing • If Schedule Overloads Resources, Points Out Processes That Are Overscheduled

  50. Load Schedules • Compares Actual Labor and Machine Hours Against Available Hours • Offsets Schedules Between Successive Stages of Production by Lead Times • Provides Feasible MPS and Economically Loaded Work Centers • Promotes System Operating Efficiency ... Lowers Costs!

More Related