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Material Resource Planning

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Ravi Panjwani

on 6 March 2014

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Transcript of Material Resource Planning

The main theme of MRP is “getting the right materials to the right place at the right time”

Material requirements planning (MRP)
establishes a schedule (priority plan) showing the components required at each level of the assembly and, based on lead times, calculates the time when these components will be needed.

Material requirements planning has two major objectives
Determine requirements
Keep priorities current.

Material Requirements

design by Dóri Sirály for Prezi
Benefits of MRP:
Reduction in inventory
Increased customer satisfaction due to meeting delivery schedules
Faster response to market changes
Improved labor & equipment utilization
Better inventory planning & scheduling
Ability to easily determine inventory usage by backflushing
[Back flushing: Exploding an end item’s bill of materials to determine the quantities of the components that were used to make the item.]

MRP – Problems Encountered
Data integrity is low
Not frequent updates of databases when changes takes place
Uncertainties related to lead time and quantity delivered

Company Facts
Name: Steel Blue

Industry: Manufacturing

Location: Perth, Australia

Key Issues

Problems in increasing efficiencies in production

Problems in maintaining third-party logistics (3PL)
Softwares in use:
Presented by: Rahul Talegaonkar 2013224
Ravi Panjwani 2013230
Rishubh Chakraborty 2013236
Rohit Jain 2013242
S. Nandkumar 2013249
Sameer Jain 2013255
Saumita Das 2013261
Shefali Dixit 2013261

Presented to: Prof. Vijaya Dixit
What is MRP ?
The 3 Inputs to MRP system are:
BIll Of Materials
Master Production Schedule
Item Master File
Material Resource Planning
Planned Order Releases
Epicor ERP features Strong ERP
Plan, Schedule. Execute & Monitor mfg. business
From Raw to Finished Goods it provides great flexibility & Agility
Solution to CASE
SFCP No. opened for production of fixed quantity of shoe
Store manager issues material as per BOM and SFCP quantity
Job Traveller tracks the jobs to be performed on shoe
Material is finally boxed
MRP is run every week to ensure EPICOR stays week ahead for material procurement

Coca Cola started implementing in the year 1987, starting in Puerto Rico.

Achieving Class A certification has been a core component of the CPE (Constant Pursuit of Excellence) program initiated within Coca-Cola

Lower Inventory Levels
Higher Productivity Rate
Better Supplier Delivery Performance
Data Integrity High
Customer Value Delivery High

Improvement not Systems Replacement as Implementation Focus

One Plant at a Time

Plant Ownership/Corporate Support
For small and medium-sized organisations:
• ECi M1
• E2 Shop System
• NetSuite Manufacturing Edition
• Exact JobBOSS
• MIE Trak Pro
• Exact MAX

For Large Organizations:
• Epicor

Cloud Based MRP softwares:
Rootstock MRP
The Continuous development Process of MRP is shown below:


ROP/ROQ Material Requirement Planning

Manufacturing Resource Planning Overall enterprise-

wide sytems

Thank you
Group 6
Full transcript