MATERIAL REQUIREMENT PLANNING (MRP) (Definition of MRP (Material…
MATERIAL REQUIREMENT PLANNING
Definition of MRP
Material requirements planning (MRP) is a computer-based inventory management system designed to assist production managers in scheduling and placing orders for items of dependent demand.
Dependent demand items are components of finished goods—such as raw materials, component parts, and subassemblies—for which the amount of inventory needed depends on the level of production of the final product.
For example, in a plant that manufactured bicycles, dependent demand inventory items might include aluminum, tires, seats, and bike chains.
Material Control System
Objectives of MRP
Determine the quantity and timing of material requirements.
To ensure that material and components are available for production, and final products are ready for dispatch.
To maintain minimum inventory.
Ensure right quantity of material is available at the right time to produce right quantity of final products.
To ensure planning of all manufacturing processes, this scheduling of different job works as to minimize or remove any kind of idle time for machine and workers.
Bill of Materials (BOM)
Contains information to produce end items.
Examples of information:
Quantity per Assembly
Quantity per End items
Next Higher Assembly
Inventory Status Records
Contain up to date status of all items, hands on and scheduled receipt from suppliers.
Receipt disbursement withdrawal documented to maintain integrity.
Master Production Schedule
Product Structured Record
Challenges in MRP
Timing of Demand
Timing of Supply
Applied in a Rolling Horizon Basis
Definition of Terms
An accurate load.
An adequate time to view future load.
Plan of a complete load.
Order with the right due date.
Keep the due date valid.
The right quantity.
At the right time.
Order the right part.