ByNisha Agarwal (DM-11-008)
Lavanya (DM-11-054)Jagadish (Dm-11-042)
Material Requirements Planning was introduced in the 1970’s. Much of the credit goes to three individuals by the names of Joseph OrlickyGeorge PlosslOliver WightAmerican Production and Inventory Control Society
Material Requirements Planning (MRP) is a computer-based production planning and inventory control system. MRP is concerned with both production scheduling and inventory control.
or Material requirements planning (MRP) is
a production planning, scheduling, and inventory control system used to manage manufacturing processes.
Ensure the availability of materials, components, and products for planned production and for customer delivery
Maintain the lowest possible level of inventory.
Plan manufacturing activities, delivery schedules, and purchasing activities.
1. MRP is a method for ordering components than the independent demand inventory models
2. MRP : It is a phase in the development of computerized methods for planning the use of company resources , including scheduling raw materials, vendors, production equipment and processes.
3. MRP provides a method that helps keep order due dates valid even after the orders have been released to the shop floor or outside vendor.
4. MRP systems can detect when the due date of an order – the date the order is scheduled to arrive- is out of alignment with its need date , the date the order is actually required.
Product Structure
File
Master Production Schedule
Inventory Master File
Material Requirements
Planning
Manufacturing Orders
Purchase Orders
Various Reports
MRP
Closed Loop MRP
MRP II
ERP
Schedule Materials
Schedule Materials
Incorporate Feedback
Schedule & Purchase Materials
Coordinate w/ Mfg Resources
Closed loop MRP is a system which grew out of ‐material requirements planning (MRP) and which primarily allows plans to be checked against capacity to determine whether they are realistic and achievable.
Closed loop MRP is the intermediate stage between ‐material requirements planning and manufacturing resources planning
Production PlanningMaster Production SchedulingMaterial Requirements PlanningCapacity Requirements Planning
Realistic?No
Feedback
Execute:Capacity PlansMaterial Plans
Yes
Feedback
Closed loop MRP is used to determine how well the planning factors & tools are working, MRP planners need feedback from the shopkeeper and purchasing department.
With effective feedback MRP planner can revise the planning factors and techniques so that better materials can be developed for future.
Availability of the right materials required for production, on time
Little, if any, excess inventory can be reduced
Timely delivery of manufactured goods to customers
Optimal use of manufacturing resources (equipment downtime reduced)
Decrease in capital cost due to decreased inventory levels and optimal use of production resources
Collecting the business data for analysis and better planning
High costs and technical complexities in implementation. In addition, organizations, which use an MRP system need to spend considerable effort on installing necessary equipment (computers), training personnel, modifying the software to serve their specific needs, validating, testing, and eliminating possible errors, and maintaining the software.
The time required for planning and implementing an MRP system is generally very long.
Data entry and file maintenance requires considerable inputs in the form of training and education of the personnel.
Dependence on forecast values and estimated lead-time can sometimes be misleading.