Requirements Planning | My Assignment Tutor

Introduction to MATERIALS MANAGEMENT CHAPTER 4 Material Requirements Planning Watch: Six Rules to Simplify Yves Morieux offers six rules for “smart simplicity.” our increasingly complex work environment Case: Apix Polybob Company Fran’s Flowers case illustrates the flower shop business opened by Fran in 2008 Independent DemandNot related to demand for other assemblies or productsFrom outside sourcesGenerally forecasted demandDependent DemandGenerally related to production of an end product (as defined on the MPS)Can be calculated instead of forecasted Dependent Demand Approach – Material Requirement Planning (MRP) Major Objectives of MRPDetermine requirements – Calculated to meet product requirements defined in the MPSWhat to orderHow much to orderWhen to orderWhen to schedule deliveryKeep priorities current     Links To Other MPC Functions    Master Production Schedule quantities and timesInventory records of all items to be plannedPlanning factors such as lead times, order quantities, and safety stockCurrent status of each itemBills of material for MPS items          Sample Bill of Material         The BOM shows all parts to make one of the itemEach part has one, and only one, part numberA part is defined by form, fit, and functionAny change requires a new part number Breaking Down the BOM into More Detail – the Multilevel Bill Indented BOM – Use Indentation to Show Parent-Component Relationships Planning Bill of Material Artificial grouping of components for planning purposesUsed to simplifyForecastingPlanningMaster SchedulingRepresents an average, not buildable product           Sample Planning BOM   Where-used reportsShows the parents for a component (contrast with a bill of material that shows the components for a parent)Pegging reportShows the parents for a component, but only those parents where there is an existing requirement Major Uses for Bills of Material Defines the productProvides method for design change controlPlanning – What is needed and whenOrder entry – order configuration and pricingProduction – Parts needed to assemble a productCosting – material cost of goods sold              Basic MRP Record   Key Terms Lead time – Span of time for a processExploding – Process of multiplying requirements by usage to get BOM requirementsOffsetting – Placing requirements in the proper period based on lead timePlanned orders – Orders planned during the explosion, but not yet released for processingLow-level code – Lowest level on which a part resides on the bill of material Scheduled receipts – Open orders released for processing (production or purchase) scheduled to be received at a defined timeGross Requirements – Total of a component needed to meet requirements not taking any existing inventory into accountNet Requirements – Actual amount of a component needed after existing requirements taken into account Projected available – The expected inventory position at the end of the periodPlanned order release – The amount that should be ordered (using the lot size) to prevent a negative projected available balancePlanned order receipt – When the order should be available for use, offset by lead time from the planned order release Lead time for this component is 2 weeks and order quantity is 200.                          Complete the table.                          What action should be taken? The order for 200 should be released Lead time for each component is 1 week Completed Material Requirements Plan Sample Multiproduct MRP Explosion Current time – beginning of first period (often called time buckets)Items considered available at beginning of periodQuantity in Projected Available row considered at end of periodCurrent period often called action bucket – action should be taken to avoid a future problem Launch Orders – Production or PurchasingReschedule orders as requiredReconcile errors and search for causesSolve critical material shortagesReplanExpediteCoordinate with other functions to resolve problems This record shows the status of the part Monday morning. The computer is showing the need to release the order of 30 Only 25 units of the scheduled receipt move into inventory. The balanced is scrapped.The gross requirement for week 3 is changed to 10.The gross requirement for week 4 is increased to 50.The gross requirement for week 7 is 15.An inventory count reveals there are 10 more in inventory than the record showsThe gross requirement for week 1 is issued from inventoryThe planned order release of 30 in week 1 is released and becomes a scheduled receipt in week 3. Firm Planned orders – Orders not yet released, but “frozen” in quantity and time to reduce system “nervousness”Exception messages – Messages generated by the computer signaling planner action neededBottom-up replanning – Actions to correct for changed conditions made as low as possible in the product structure What are the key issues brought about in the conversation? What are the key symptoms, and what are the underlying problems? Be specific in your answers. Use the product information to develop an MRP approach to the problems. Would MRP solve the problems? If so, show specifically how MRP would avoid the problems discussed by Ken and Jack. Do any conditions bother you about the ability of MRP to deal with the problems? What specifically are those conditions? Suppose it was discovered that only 250 of component E were in stock instead of the 300 listed on the inventory record. What problems would this cause (if any), and what are some of the ways that these problems could be addressed? How would (if at all) MRP help you when other methods might not? Suppose that the design engineer advises that he has a new design for component F. It won’t be ready until sometime after week 2, but he wants you to give a date for the fast supplier shipment to come in, and you should be ready to tell the supplier how many to ship. Since the change is transparent to the customer, the design engineer advises you to go ahead and use up any existing material of the model. How will MRP help you to deal with this issue? Can you think of any other ” what if ‘ questions that might be more easily addressed by a systematic approach such as MRP? Component:  B      Lead Time: 1        Lot Size: 80        On Hand: 10 Component:  C     Lead Time: 1        Lot Size: 150       On Hand: 40 Component:  D     Lead Time: 2        Lot Size: 200       On Hand: 180 Component:  E      Lead Time: 2        Lot Size: 400       On Hand: 400 Component:  F      Lead Time: 2        Lot Size: 500       On Hand: 50 T  


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