Mrp case study

Prof. S.R. Khandagale,JJMCOE,Jaysingpur 1

MATERIAL REQUIREMENTS PLANNING (MRP)

Planning of MaterialHow much??

When???To smoothen production flow


MRP Objectives1. Reduction in Inventory Cost: Right quantity of material at Right time 2.Meeting Delivery Schedule

MRP helps avoid delays in production

3. Improved Performance: Proper utilizing machines & materials


MRP System


Master Production Schedule (MPS)MPS mainly describes the detailed delivery schedule of the end products. However, orders for replacement components can also be included in it to make it more comprehensive.It gives scheduling of raw materials for processingHow much?? When??


Bill of Materials (BOM)• BOM represents the product structure.

• It encompasses information about all sub components needed, their quantity

• Their sequence of buildup in the end product.

• Information about the work centers performing buildup operations is also included in it.

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Inventory Status File• Inventory status file keeps an up-to-date

record of each item in the inventory.

Information with inventory status file• item identification number,• quantity on hand, • safety stock level,• quantity already allocated • procurement lead time

Prof. S.R. Khandagale,JJMCOE,Jaysingpur


OUTPUTSPlanned Orders Receipts: This is the order quantity of an item that is planned to be ordered so that it is received at the beginning of the period under consideration to meet the net requirements of that period. This order has not yet been placed and will be placed in future.

Planned Order Release: This is the order quantity of an item that is planned to be ordered in the planned time period for this order that will ensure that the item is received when needed. Planned order release is determined by offsetting the planned order receipt by procurement lead time of that item.

Order Rescheduling: This highlight the need of any expediting, de-expediting, and cancellation of open orders etc. in case of unexpected situations.


When to use MRP ???

• Multiple items with complex bills of materials MRP is not useful for job shops or for continuous processes that are tightly linked.

• MRP is applicable for dependent demands 1. Dependent demand

2. Independent demand


Benefits of MRP • Reduce Component Shortages • Reduce Inventory Levels • Improve Shipping Performance • Improve Customer Service • Simplified and Accurate Scheduling • Reduce Purchasing Cost • Improve Production Schedules • Reduce Lead Times • Improve Plant Efficiency • Reduction in Excess Inventory • Reduce Overtime • Improve Supply Schedules • Improve Calculation of Material Requirements • Improve Competitive Position


How to carryout MRP for given jobINPUTS required• BOM of job• MPS details of job( i.e. end job delivery date and quantityInventory records1. lead time 2. Stock available3.Safety limits 4.Order type(lot size or FOQ)

Enter the above data in MRP sheet provided so as to plan the dates


Format of MRP sheet

Gross requirement: Total requirementScheduled receipt: Qty which is already orderedOn hand : available qtyPlanned order receipt: time when order qty is receivedplanned to Planned order release : time when order is required to release


PROCEDURE Get delivery date and Qty from MPSStudy carefully BOM & find no of parts and quantities Find lead times, in hand & safety stock values for each componentArrange element with lower grade Fill the sheet accordingly


Case studyData from MPS We require 200 nos of A items at 5 week ,Lead

Data from BOMFinal product A is consist of 2 nos of B part & 3 nos of C parts

Data from INVENTORY FILE

Item Lead time (1 week) safety stock In hand Order type Scheduled recipets

A 2 - 10 L2L 0

B 1 - 10 L2L 0

C 1 - 10 L2L 0

Mrp case study

Engineering

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