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Purchase Process -

Vocabulary

&

Terminologies

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Manufacturing Strategies (Del. Lead Time)- ETO

- MTO

- ATO

- MTS

Boundary Spanners

Supply Chain Concept

- Concurrent design

- Mutual cost benefits

- Speed of information / EDI

Supply Chain Components

- Schematic representation- Flows

Rise of Material Management / DPC / LM

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Supply Chain ManagementAn

Overview

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MPC System

- 5 Levels (refer schematic diagram)

Level of detail vs planning horizon

3 questions at every level (priority, capacity and differences)

Production Plan (MPS)

- Chase Strategy

- Level Strategy

- Subcontracting- Hybrid

- Contrast b/w MTS and MTO

Components of a MPC system

- Production Planning

Demand Planning (Forecasting)

Capacity planning

Material planning

- Implementation and Control

Production activity control (shop floor control)

- Inventory Management

Evolution from MRP II to ERP systems

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Manufacturing Planning and Control

An Overview

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4

PURCHASING

BUSINESS PLAN

SALES AND OPERATION PLAN

MARKETING PLAN PRODUCTION PLAN

MASTER PRODCUTION SCHEDULE(MPS)

MATERIAL REQUIREMENTS PLAN(MRP)

PRODUCTION ACTIVITY CONTROL

PERFORMANCE MEASURES

(KPIKEY PERFORMANCE INDICATORS)

CONTINUOUS PROCESS

IMPROVEMENT

SALES PLANROUGH CUT

CAPACITY PLAN

RESOURCES OK?

DETAILED

CAPACITY PLAN

RESOURCES OK?

No

Yes

No

Yes

MRP and Purchasing In Production

Activity Control

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MRP

- Objectives

Requirements

Priorities current

- Inputs

MPS

Inventory record

BOM

Product tree Parent - Component

Single level

Multi level / Indented

Multiple

Summarized / Simplified

Planning bill

Variation to BOM (where-used and pegging report)

Uses of BOM

Nature of Demand

- Independent (MPS)

- Dependant (MRP)

Vertical

Horizontal

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Material Requirements PlanningAn

Overview

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MRP Techniques- Exploding and Offsetting

Lead time

An example BOM

Planned order (receipt and release)

- Gross and Net Requirements

Planned order release of parent = gross requirement of component

Add OHI to the example

- Releasing Orders

- Scheduled receipts

- Open Orders

- Add scheduled receipts to the example

- Basic MRP record

- Planning horizon, time bucket, action bucket

- Capacity Requirements Planning

- Low-level coding and Netting

- Procedure with an example BOM

- Extending for multiple BOM

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Material Requirements PlanningAn

Overview

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Using MRP- Launch Orders

- Reschedule due dates

- Reconcile errors

- Solve material shortages

- Coordinate with other planners, schedulers, PAC and purchasing functions

- Planned orders, released orders, firm planned orders- Exception and transaction messages

Managing MRP

Suppliers action through purchasing

Priority changes (expediting and de-expediting)

Management action (MPS)

Bottom-up replanning

System nervousness

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Material Requirements PlanningAn

Overview

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Order qualifiers

Order winners

Exploding

Offsetting

Netting

Low-level coding

Bill of Material

Planning Bill

Gross and Net Requirements

Projected available balance (PAB)

Planned Order Receipt

Planned Order Release

Scheduled Receipt

Open Orders

Planned Order

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MRP And PurchasingTerminologies

Released Order Firm Planned Order

Back Order

Backlog

MRP Record

Time Buckets Planning Horizon

Action Bucket

Exception Messages

Transaction Messages

Need-By Dates (Due Dates) Promised Dates

Exception Reports

Pull-in

Push-out

Cancel

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The End