Material requirement planning presentation

Material Requirement Planning (MRP)

Submited By Mr. Pankaj kumar sethi Miss. Smrutirekha Behera

Contributors to MRP• Material Requirements Planning

was introduced in the 1970’s

What is MRP?• MRP is a production planning,scheduling

and inventory control system used to manage manufacturing processes.

• Computerized Inventory Control• Production Planning System• Management Information System• Manufacturing Control System

Objective of MRP

• To provide the right parts at the right time to meet the schedules for completed products.

The Scope of MRP

• Dependent demand – Demand for items that are sub-assemblies, parts or raw materials to be used in the production of finished goods.

• Independent demand – finished products

The Function of MRP

• Inventory control• Bill of material processing• Elementary scheduling

When to use MRP• Job Shop Production• Complex Products• Assemble-to-Order Environments• Discrete and Dependent Demand Items

What can MRP do?

• Reduce Inventory Levels• Reduce Component

Shortages• Improve Shipping

Performance• Improve Customer

Service• Improve Productivity• Simplified and Accurate

Scheduling

• Reduce Purchasing Cost• Improve Production

Schedules• Reduce Manufacturing

Cost• Reduce Lead Times• Less Scrap and Rework• Higher Production

Quality

What can MRP do?• Improve

Communication• Improve Plant

Efficiency• Reduce Freight Cost• Reduction in Excess

Inventory

• Reduce Overtime• Improve Supply

Schedules• Improve Calculation of

Material Requirements• Improve Competitive

Position

Operation of the MRP System

Inventory status file

Master Production Schedule

Bill of Material file

Material Requirements

Planning

Inventory transaction

data

Planned order scheule

Exception reports

MRP Inputs• Inventory status file• Master Production Schedule• Bill of Material file

Inventory status file• On-Hand Quantities• On-Order Quantities• Lot Sizes• Safety Stock• Lead Time

Master Production Schedule

• Schedule of Finished Products• Represents Production, not Demand• Combination of Customer Orders and

Demand Forecasts• What Needs to be Produced

Bill of material file• This file provides the information

regarding all the materials, parts and sub-assemblies that so into the end product.

• The bill of materials can be viewed as having a series of levels, each of which represent a stage in the manufacture of the end product.

MRP Outputs• Inventory transaction data• Planned order schedule• Exception reports

Summary of MRPMRP is a…..• Computerized Inventory Control• Production Planning Systemthat…..• Schedules Component Items as Neededwhich will…..• Track Inventory and…..• Help you in many other aspects of business

CONCLUSION• We conclude that MRP is a computer-based

production planning and inventory control system. That schedules component items as needed which will track inventory and help you in many other aspects of business.

• MPR is very much essential for manufacturing company