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ManufacturingManufacturing
Resoures PlanningResoures PlanningPresented byPresented by
Muhammad Atif RazaMuhammad Atif Raza0707--Met Met--5959
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CONTENTSCONTENTSCONTENTSCONTENTS
Definition of Manufacturing Resources PlanningDefinition of Manufacturing Resources Planning
Manufacturing TypesManufacturing Types
Modules in MRP SystemModules in MRP System
Basic Functions of MRPBasic Functions of MRP
MRP ProcessingMRP Processing
Benefits of MRP In Different LevelsBenefits of MRP In Different Levels
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Manufacturing Resource PlanningManufacturing Resource Planning ((MRPMRP))Manufacturing Resource PlanningManufacturing Resource Planning ((MRPMRP))
Is defined as a method for the effective planning of all resource of aIs defined as a method for the effective planning of all resource of a
manufacturing company.manufacturing company.
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MANUFACTURING TYPESMANUFACTURING TYPESMANUFACTURING TYPESMANUFACTURING TYPES
There are two types of manufacturing.There are two types of manufacturing.
Pull manufacturingPull manufacturing
Push manufacturingPush manufacturing
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Push Manuf acturingPush Manuf acturingPush Manuf acturingPush Manuf acturing
This is generally suitable for Make to stock situation.This is generally suitable for Make to stock situation.
Push systemsPush systems
Driven by a forecasted demandDriven by a forecasted demand
Specialized equipmentSpecialized equipment
Specialized labor Specialized labor
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Pull Manuf acturing Pull Manuf acturing Pull Manuf acturing Pull Manuf acturing
A Pull system on the contrast is based on Made to
Order situation.
Pull systems
Driven by customer demand
General purpose equipment
Cross trained labor
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Diff erence between pull and pushDiff erence between pull and push
manuf acturingmanuf acturing
Diff erence between pull and pushDiff erence between pull and push
manuf acturingmanuf acturing
The main difference between push and pull is theThe main difference between push and pull is the
direction in which the information flows.direction in which the information flows.
In the push system, information flows in the sameIn the push system, information flows in the samedirection as production, whereas in the pull system,direction as production, whereas in the pull system,
information flows in the opposite direction.information flows in the opposite direction.
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Manufacturing Resource Planning is the Study of the PlanningManufacturing Resource Planning is the Study of the Planning
and Materials Flow.and Materials Flow.
Supply Chain Management (SCM) is the Study of this LinkedSupply Chain Management (SCM) is the Study of this Linked
Chain of Activities.Chain of Activities.
Supply Chain Diagram:Supply Chain Diagram:
Supplier Supplier pp Manuf acturer Manuf acturer pp DistributionDistributionpp Customer Customer
SystemSystem
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The Modules In MRP SystemThe Modules In MRP System
What are we going to make ?
The Master Production Schedule
What do we (already) have ? I nventory Record
What is it made up of ?
The Bill Of Materials
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The Master Production ScheduleThe Master Production Schedule
Master schedule:Master schedule: One of three primary inputs in MRP; states which end itemsOne of three primary inputs in MRP; states which end items
are to be produced, when these are needed, and in whatare to be produced, when these are needed, and in what
quantities.quantities.
The master schedule should cover a period that is at leastThe master schedule should cover a period that is at leastequivalent to theequivalent to the cumulative lead timecumulative lead time
Cumulative lead time: Cumulative lead time:
The sum of the lead times that sequential phases of a processThe sum of the lead times that sequential phases of a process
require, from ordering of parts or raw materials to completionrequire, from ordering of parts or raw materials to completion
of final assembly.of final assembly.
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Cumulative Lead TimeCumulative Lead TimeCumulative Lead TimeCumulative Lead Time
1 2 3 4 5 6 7 8 9 10
Procurement
Fabrication
Subassembly
Assembly
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Inventory R ecordsInventory R ecordsInventory R ecordsInventory R ecords
Includes information on the status of each item by timeIncludes information on the status of each item by time
period, called period, called time bucketstime buckets
Information aboutInformation about
Gross requirementsGross requirements
Scheduled receiptsScheduled receiptsExpected amount on handExpected amount on hand
Other details for each item such asOther details for each item such as
Supplier Supplier
Lead timeLead time
Lot sizeLot size
Changes due to stock receipts and withdrawalsChanges due to stock receipts and withdrawals
Canceled orders and similar eventsCanceled orders and similar events
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Bill of Materials (BOM)Bill of Materials (BOM)Bill of Materials (BOM)Bill of Materials (BOM)
A listing of all of the raw materials, parts,A listing of all of the raw materials, parts,
subassemblies, and assemblies needed to producesubassemblies, and assemblies needed to produce
one unit of a productone unit of a product
Product structure treeProduct structure tree
A visual depiction of the requirements in a billA visual depiction of the requirements in a bill
of materials, where all components are listed byof materials, where all components are listed by
levelslevels
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Benefits of a BOMBenefits of a BOM
Improve material management by responding to
changes in production
Reduce inventory levels Reduce manufacturing cost
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Product Structure TreeProduct Structure TreeProduct Structure TreeProduct Structure Tree
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LowLow--Level CodingLevel CodingLowLow--Level CodingLevel Coding
LowLow--level codinglevel coding
Restructuring the bill of material so that multipleRestructuring the bill of material so that multiple
occurrences of a component all coincide with the lowestoccurrences of a component all coincide with the lowest
level at which the component occurs.level at which the component occurs.
Level 3
Level 2
Level 1
Level 0 X
B(2)
D(3)
E(4) E
C
E(2)
F(2)
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Basic FunctionsBasic Functions
The right parts
Identified in the BOM module
The right quantities
Identified in the BOM module, an then compares tothe on-hand quantities held in inventory control
The right timing
Calculated within MRP, based on purchasing andmanufacturing lead times held in the BOM
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Fundamental Requirements To
Successful Run MRP
Fundamental Requirements To
Successful Run MRP
Absolute accuracy in Bill of Materials
Design changes timely recorded togetherwith their
effectively start dates
Accurate inventory records Accurate purchasing records
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MRP ProcessingMRP Processing
Gross requirementsGross requirements
Schedule receiptsSchedule receipts
Projected on handProjected on hand Net requirements Net requirements
PlannedPlanned--order receiptsorder receipts
PlannedPlanned--order releasesorder releases
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MPR ProcessingMPR ProcessingMPR ProcessingMPR Processing
Gross requirementsGross requirements
Total expected demandTotal expected demand
Scheduled receiptsScheduled receipts
O pen orders scheduled to arriveO pen orders scheduled to arrive
Planned on handPlanned on hand
Expected inventory on hand at the beginning of Expected inventory on hand at the beginning of
each time periodeach time period
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MPR ProcessingMPR ProcessingMPR ProcessingMPR Processing
Net requirements Net requirements
Actual amount needed in each time periodActual amount needed in each time period
PlannedPlanned--order receiptsorder receipts
Quantity expected to received at the beginning of Quantity expected to received at the beginning of
the periodOffset by lead timethe periodOffset by lead time
PlannedPlanned--order releasesorder releases
Planned amount to order in each time periodPlanned amount to order in each time period
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Coca Cola: "Always" Class A MRPCoca Cola: "Always" Class A MRPCoca Cola: "Always" Class A MRPCoca Cola: "Always" Class A MRP
Significant Payback Achieved BySignificant Payback Achieved ByCocaCoca--colacola
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Coca Cola: "Always" Class A MRPCoca Cola: "Always" Class A MRPCoca Cola: "Always" Class A MRPCoca Cola: "Always" Class A MRP
Inventory levels:Inventory levels: downdown
Productivity:Productivity: upup
Customer delivery performance:Customer delivery performance: improvedimproved
Supplier delivery performance:Supplier delivery performance: betterbetter Business Processes:Business Processes: improvedimproved
Data integrity:Data integrity: highhigh
Cost of goods:Cost of goods: downdown Team Spirit:Team Spirit: highhigh
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Benefits In Different Levels
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For ManagementFor ManagementFor ManagementFor Management
An accurate, consistent and effective way to runAn accurate, consistent and effective way to run
the whole businessthe whole business
The ability to manage orderly growthThe ability to manage orderly growth
The ability to cope with difficult economicThe ability to cope with difficult economic
conditionsconditions
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For Management InformationFor Management InformationFor Management InformationFor Management Information
Quicker, better information on which to baseQuicker, better information on which to base
decisionsdecisions
Consistent information at all levels, in allConsistent information at all levels, in alldepartmentsdepartments
Accurate records for internal and external useAccurate records for internal and external use
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For Sales / MarketingFor Sales / MarketingFor Sales / MarketingFor Sales / Marketing
Improved onImproved on--time deliveries to customerstime deliveries to customers
Faster, more accurate delivery promisingFaster, more accurate delivery promising
Improved responsiveness to customer needsImproved responsiveness to customer needs
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For ProductionFor ProductionFor ProductionFor Production
Improved productivity and resource utilizationImproved productivity and resource utilization
Increased through outputIncreased through output
Better reliability of production plansBetter reliability of production plans
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For Materials ManagementFor Materials ManagementFor Materials ManagementFor Materials Management
Better control of inventoriesBetter control of inventories
Improved schedulingImproved scheduling
Productive relationships with suppliersProductive relationships with suppliers
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For Design / EngineeringFor Design / EngineeringFor Design / EngineeringFor Design / Engineering
Improved design controlImproved design control
Better quality and quality controlBetter quality and quality control
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CONCLUSIONCONCLUSIONCONCLUSIONCONCLUSION
The primary objective of anThe primary objective of an manufacturing resourcesmanufacturing resources planning planning in any organization is to ensure that thein any organization is to ensure that the
desired products are manufactureddesired products are manufactured
at the right time,at the right time,
in the right quantities,in the right quantities,
meeting quality specifications, and at minimummeeting quality specifications, and at minimum
costcost
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ConlusionConlusionConlusionConlusion
More efficient use of resourcesMore efficient use of resources
Reduced inventoriesReduced inventories
Less idle timeLess idle time
Better priority planningBetter priority planning
Quicker production startsQuicker production starts
Schedule flexibilitySchedule flexibility
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ConlusionConlusionConlusionConlusion
Improved customer serviceImproved customer service
Meet delivery datesMeet delivery dates
Improved qualityImproved quality
Lower price possibilityLower price possibility Improved employee moralImproved employee moral
Better management informationBetter management information
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The EndThe End
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