MATERIALS RESOURCE PLANNING

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MATERIALS RESOURCE PLANNING

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Material Requirements Planning(MRP)

• Defining MRP
• Software based production planning and inventory
  control system.

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MRP Objectives

• Ensuring materials to fulfill Customer
  requirements
• Reduce/minimize Inventory
• Production Planning

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Material Process Flow
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MRP Components

• Four critical components
• Master Planning System
• Bill of Materials
• Purchasing
• Inventory Reporting

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Master Planning System

• Current MPS
• Receipt of EDI
• Irregular Updates
• Adversely affects
• Purchasing
• Production Planning
• Inventory

• Future
• Receipt of EDI
• Systematic regular updates
• Data download
• Demand Scheduling
• Query and Reconcilliation

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Bill of Materials (BOMs)

• Breaks away explodes each assembly or
  sub-assembly into its component parts.

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BOMs

• Current State

• Recommendations

• Weekly negative inventory reports
• Components incorrectly loaded into system.

• Complete a weekly audit based on negative
  inventory reporting.

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BOM Display and Search
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Inventory Records

• Current Process

• Recommended Process

• Excel Spreadsheets
• Not utilizing MRP system
• No scanning
• Daily inventory inaccurate and complex

• Eliminate separate spreadsheets
• Utilize MRP system
• Implement scanning for production reporting
• Weekly cycle counts to verify system

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Inventory Transaction
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Materials Planning and Purchase Orders

• Automated Vendor Release

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Why MRP

• Enforces Accountability
• Features of planning and measuring
• Corporate visibility
• PROVIDES EFFECTIVE MATERIALS MANAGING