material requirement planning (factors,inputs,outputs,benifits)

COMPUTER AIDED MANUFACTURING(CAM)

TOPIC:- MATERIAL REQUIREMENT PLANNING(MRPI)

Prepared by:

NAME ENRL. NO.ATODARYA DHRUVE RAJ 130450119006

BABARIA RAZIN 130450119007

BALASHAIKH M. ASHIF 130450119008

Material requirement planning (MRP)

• Material requirement planning (MRP) is a computerized function or computational technique which converts the master schedule for the product on to a detailed schedule for the procurement of the raw materials and vendor manufactured components.

Objectives

• To ensure right quantity of material is available for production at right time to produce right quantity of final product.

• To ensure minimum inventory.• To maintain the delivery sehedule of the final

product.

Factor to be considered in MRR

• Dependent and Independent demands• Lumpy demand• Ordering and Manufacturing lead times• Items of Common use

Dependent and Independent demands

• The dependent demand means the demand for the item A depends upon the demand for the item B.

• For example, the demand for the raw material depends upon the demand for the particular component and demand for that component in turn depends upon the market demand for the product of which the component is a part.

• The independent demand means the demand for the item A is independent of the demand for the item B.

• For example, the demand for the spare parts is independent of the demand for the product.

Lumpy demand

• In some cases of manufacturing the demand for the raw material will occur in large increments rather than in a continuous constant rate.

• The large increments corresponds to a contain batch of the final product, such demand is called lumpy demand.

Ordering and Manufacturing lead times

• The lead time for an item is the time required to complete an item from the beginning to the end.

• There are two types of lead times: 1) Ordering lead time 2) Manufacturing lead time

1) Ordering lead time:• An ordering lead time of an item is the time

required from the initiation of the purchase requisition to the receipt of the item from vendor.

2) Manufacturing lead time:• The manufacturing lead time for an item is the

time required for the complete manufacturing of the item from the start to the finish.

Items of common use

• In manufacturing a single raw material may be used to produced more than one type of component. Again, a single component may be used on more than one final product.

• For example, a same alloy steel rod may be used as a raw material for the different components.

• Similarly M10 screws may be used on number of products.

Important inputs and outputs of MRPI

Overview of the MRP SystemMaster

Production Schedule

MaterialRequirements

Planning

ProductStructure

File

ItemMaster

file

PlannedOrder

Release

Work orders

Purchase Orders

Rescheduling notices

1) Bill of materials

• Product structure file• Determines which component items need to

be scheduled

Top clip (1) Bottom clip (1)

Pivot (1) Spring (1)

Rivets (2)Finished clipboard Pressboard (1)

Clipboard

15

2. Master Production Schedule(MPS)

• Drives MRP process with a schedule of finished products.• Quantities represent production not demand.• Quantities may consist of a combination of

customer orders & demand forecasts.• Quantities represent what needs to be

produced, not what can be produced.

Example

PERIODMPS ITEM 1 2 3 4 5

Clipboard 85 95 120 100 100Lapdesk 0 50 0 50 0Lapboard 75 120 47 20 17Pencil Case 125 125 125 125 125

3. Inventory Record

• Contains an extensive amount of information on every item that is produced, ordered, or inventoried in the system

Item Pressboard Lead time 1Item no. 734 Annual demand 5000Item type Purch Holding cost 1Product/sales class Comp Ordering/setup cost 50Value class B Safety stock 0Buyer/planner RSR Reorder point 39Vendor/drawing 07142 EOQ 316Phantom code N Minimum order qty 100Unit price/cost 1.25 Maximum order qty 500Pegging Y Multiple order qtyLLC 1 Policy code 3

DESCRIPTION INVENTORY POLICY

Outputs of MRPIReports of Planned Supply Orders• these reports contain the supply orders planned

to be released in future.Supply orders• These supply orders are to be issued by the

purchase departmentRescheduling Notices• These notices indicate the changes in due dates

of supply orders which is because of changes in the master schedule. 18

Cancellation Notices• These notices inform the cancellation of supply

orders because of the changes in the master schedule.

Inventory Status Report• These report gives the detail status of the

inventory.

The Benefits of MRP

• Inventory reduction.• Reduction in production & delivery time.• Increased efficiency.• Faster response to market changes.• Improved labour & equipment utilization.• Better inventory planning & scheduling.• Reduced inventory levels without reduced

customer service.

Summary• In the era of computer and IT, it is necessary to use new

technologies for fester growing organization. Any company wants to lead in the competetitive market by introducing qualitative product with in a short period of time. Like that in manufacturing organization MRP system helps to reduce the manufacturing time of a product by insuring the availability of materials for product assembly in the necessary quantities at the required time. It also help to reduce raw material purchasing ,purchases parts & working process inventory. So MRP uses reducing inventory cost, reducing completion time of manufacturing with maintaining quality. It provides customer, a greater return value of their money.

THANK YOU