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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 forecasting
Sales and order entry Customer

Aggregate planning

Materials requirement planning

Shop-floor scheduling and control

Production

Shipping and receiving

Inventory management

Inventory

Vendors

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 Inventory Status Material Requirements Planning

Requires:
Bill of material (Manufacturing tree) Inventory status Lead times
Production Planning and Control- Materials Requirement Planning (3)

Quantities and Order Times

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 1 2 3 4 5 6 7 8

GR 10 15 12 16 15 12 18 14

Period CT B00 X10

Scheduled Order Receipts (SOR) 1 2 3 4 5 6 7 12 14 0 0 0 0 0 8 2 2 0 0 0 0 2 2 1 1 0 0 0

8 0 0 0
Gaafar 2001

Production Planning and Control- Materials Requirement Planning (7)

Material Requirements Planning


Example
CT LT = 2
Time GR SOR BI NR POR EI PORE
Time GR SOR BI NR POR EI PORE

1 10 12 0 -2 0 2 11
1 22 8 14 0 0 0 30

2 15 14 2 -1 0 1 16
2 32 2 0 30 30 0 28

3 12 0 1 11 11 0 15
3 30 2 0 28 28 0 24

4 16 0 0 16 16 0 12
4 24 0 0 24 24 0 36

5 15 0 0 15 15 0 18
5 36 0 0 36 36 0 28

6 12 0 0 12 12 0 14
6 28 0 0 28 28 0 ?

7 18 0 0 18 18 0 ?
7 ? 0 0 ? ? 0 ?

8 14 0 0 14 14 0 ?
8 ? 0 0 ? ? 0 ?
Gaafar 2001

B00

LT = 1

Production Planning and Control- Materials Requirement Planning (8)

Material Requirements Planning


Example
X10 LT = 1

Time GR SOR BI NR POR EI PORE

1 41 2 8 31 31 0 42

2 44 2 0 42 42 0 38

3 39 1 0 38 38 0 47

4 48 1 0 47 47 0 44

5 44 0 0 44 44 0 14

6 14 0 0 14 14 0 0

7 ? 0 0 0 0 0 0

8 ? 0 0 0 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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