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MATERIALREQUIRMENT

PLANNING

PRESENTED TO PROF. R. MUKUNDAN

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Name Roll No

Wasim Dalvi 12

Dimple Karkera 21

Saima Khan 27

Abdul Basith Shaikh 43

Praful Uberoi 59

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DEFINITIONO Material requirement planning is a

technique for determining the quantity and

timing for the acquisition of dependentdemand items needed to satisfy master

production schedule requirements.

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OBJECTIVESO Inventory reduction

O Reduction in manufacturing and delivery

lead time

O Realistic delivery commitments

O Increased efficiency

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WHAT CAN MRP DO?O ReduceInventory

Levels

O Reduce Component

ortagesO Improve ipping

erformance

O Improve Customerervice

O Improve roductivityO implifiedand

ccurate c eduling

O Reduceurc asingCost

O Improve roduction

c edulesO Reduce Manufacturing

Cost

O Reduce Lead Times

O Less crapand

ReworkO Higer roduction

Quality

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WHAT CAN MRP DO?O Improve

Communication

O Improve lantfficiency

O Reduce reigtCost

O

Reduction inxcess Inventory

O Reduce OvertimeO Improve Supply

Sc edulesO Improve

CalculationofMaterialRequirements

O

ImproveCompetitiveosition

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HOWITWORKSINPUTS

MaterialRequirement

Planning

Master

ProductionSchedule

Bill ofMaterial InventoryStatus File

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Master Production Schedule

O A series of time phased quantities for each

item that a company produces

O Developed from customer orders or from

forecast of demand

O Determines specific component requirement

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Inventory Status FileO Gives complete and up to date information

on the on hand quantities, gross

requirement, scheduled receipts andplanned order releases

O Includes PlanningInformation such as lot

sizes, lead time etc.

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Bill of MaterialO Identifies how each end product is

manufactured

O Specifies subcomponents, their sequenceand their end quantity

O Information is obtained from product designdocuments, work flow analysis & otherstandard manufacturing information.

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HOWITWORKSOUTPUT

Material Requirement

lanning

Order Release

Requirements(Ordersto be

laced)Order Rescheduling

lannedOrders(Future)

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ADVANTAGESO Helps in production planning and

scheduling.

O Minimize inventory level and associated

carrying cost

O

Keeps a track on material requirements

O Determines the most economical lot size for

orders

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O Computes appropriate level of safety stock

O Helps in determining various process time &

total production time of the product

O Helps in planning future capacity needs

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DISADVANTAGESO MRP relies on accurate input information

O Requires up to date record

O Costly to implement

O Resistance from employees

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HUBBELL LIGHTING CASEO Manufactures Industrial Lighting Products

O Good-Quality Products

O Poor at Meeting Due Dates

O Work is Specialized for Each Customer

O Job Shop Environment

O Complex Products

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HUBBELL LIGHTING CASEBeforeMRP

Implementation

O Less than % of

orders completedon

time

After MRP

Implementation

O 9 % oforders

completedontime

O 2% oforders

completedwith 1 to2 days after duedate

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SUMMARYMRP is a..

O Computerized Inventory Control

O Production Planning Systemthat..

O Schedules Component Items as Needed

which will..

O Track Inventory and..O Help you in many other aspects of business

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