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MATERIAL REQUIREMENT PLANNING (MRP) (challenge in MRP (Integrity of data :…
MATERIAL REQUIREMENT PLANNING (MRP)
What is MRP
MRP is a production planning and inventory control system
An MRP integrated data from production schedules with that from inventory and the bill of materials (BOM) to calculate purchasing and shipping schedules for the parts or components required to build a product
Objective of MRP
To ensure that material and components are available for production and final products are ready for dispatch
To ensure the right quantity of material is available at the right time to produce right quantity of final products
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
terms of inventory, capacity and priority in MRP
Priorities: (1) order with the right due date (2) keep the due date valid
inventory: (1) order the right part (2) order the right quantity (3) order at the right time
capacity: (1) plan for a complete load (2) plan for an accurate load (3) plan for an adequate time to view future load
types of MRP system
inventory status records: contain the status of all items in inventory including on hand inventory and scheduled receipts
Master Production Schedule (MPS) (1) the demand for end items is scheduled over a number of time priods and recorded on a MPS (2) mps is developed from forecasts and firm customer orders for end items, safety stock requirements and internal orders
Bill of Materials records (BOM): (1) contain information on every item or assembly required to produce end items (2) information on each item such as part number, description, quantity per assembly, next higher assembly, lead times and quantity per end item must be avaiable
challenge in MRP
Integrity of data : if there are many errors in the inventory data the BOM or the MPS then the output data will also be incorrect an dalso affected by mistakes and damages in manufacturing.
time required for planning and implementing MRP is very long
fails to account for capacity in its calculations: give result that are impossible to implement due to manpower, machine or supplier capacity constraints
high cost and technical complexities in implementation