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MRP?

The MPS must have a planning horizon at least equal to the longest finished items cumulative lead-time. The cumulative lead-time is the sum of all of the individual lead times of all raw materials, sub-assemblies and component parts that comprise the critical manufacturing path. The MPS must be subject to rough-cut capacity constraints in order to be realistic. This is due to the fact that MRP ignores capacity constraints. A system of checks and balances is required to eliminate wasting valuable computer resources on processing a master schedule that is unrealistic and will not aid the company in achieving the desired result. A master production schedule that is unrealistic and cannot be executed jeopardizes customer service. The rough-cut capacity constraint can be as simple as total number of units that can be produced in one time period. The time period may be in days or weeks or months and is known as a time bucket. .
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             The bill of materials is another important input into MRP. The bill of materials is a listing of all the materials to complete the particular item in question. There are bills of materials for sub-assembly items as well as finished items. The highest level in a bill of material is called the zero level and is usually denoted with a zero in the left-hand margin. All other levels below this are indented and numbered sequentially starting with the number one.
             The MRP program relies on the accuracy of the bill of material in order to determine precisely which materials are required in the manufacturing process of any finished item. Any errors in the bill of material will reproduce themselves in the MRP output, causing incorrect planning quantities and/or incorrect item numbers to be planned by MRP. Typically, a ninety-nine percent accuracy rate is required in the bills of materials file. The MRP program will first scan the entire bills of materials file and determine the lowest level at which any given item can be found.


Essays Related to MRP?

1. JIT

Basic Needs During the early stages of development, MRP meant material requirements planning. ... We tried to make MRP do too much. ... Both MRP and JIT require a production plan as the common starting point. ... When those constraints are eliminated, MRP can be run under the one-for-one option built into most systems. ... When they are too "fat" MRP asks for too much, too soon and the process will get clogged with excess material. ...

  • Word Count: 973
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2. Smoothslip Lubricants

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  • Word Count: 1207
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3. ERP

The 1970's witnessed a shift of focus towards MRP (Material Requirement Planning). ... Then, in 1980's came the concept of MRP-II (Manufacturing Resource Planning) which involved optimizing the entire plant production process. Though MRP-II, in the beginning was an extension of MRP to include shop floor and distribution management activities, during later years, MRP-II was further extended to include areas like Finance, Human Resource, Engineering, Project Management etc. ...

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4. ERP

The term Enterprise Resource Planning (ERP) was coined in the early 1990s as the successor to MRP II, itself a successor to the Materials Requirement Planning (MRP) software that resulted from requirements for greater control and efficiency in manufacturing systems. ... ERP has said to be the next generation of MRP systems. ...

  • Word Count: 1058
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8. Supply Chain Management

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