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Master Requirement Planning

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Carlos Cabrera

on 19 November 2013

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Transcript of Master Requirement Planning

Master Requirement Planning
MRP at Wheeled Coach

Major Issues at Wheeled Coach
Class Discussion
Why does Wheeled Coach used MRP?
Wheeled Coach has four key tasks be performed

Twelve major ambulance designs are produced on assembly lines.
18,000 different inventory items in which 12,000 purchased.
Most of the product line is custom designed and assembled to meet the specific requirements demanded by customer preference
Wheeled Coach

Gundeep Kohli
Tony Kuang
Anyerlin Bencosme
Carlos Cabrera
A dependent demand technique that uses a bill-of-material, inventory, expected receipts, and a master production schedule to determine material requirements
Master production schedule
Bill of material
Inventory availability
Purchase orders outstanding
Lead times
Better response to customer orders because of improved schedules

Faster response to market changes
Improved utilization of facilities and labor
Reduced inventory levels
The material plan must meet both the requirements of the master schedule and the capabilities of the production facility.
The plan must be executed as designed.
Inventory must be minimized through effective "time-phased" material deliveries, and a constant review of purchase methods.
Excellent record accuracy is a fundamental ingredient of Wheeled Coach's successful MRP program that not only correct errors but also investigate and correct problems.
• Many items in inventory were not listed on any of the BOMs.
• Some items were in inventory because of customer changes in specification after orders were place.

• Excess Inventory

1. BOM errors
2. customer-change orders
3. purchasing and receiving errors

• Cycle Counting
• Sell excess items
• ABC Analysis
Bills of Material (BOM)
Wheeled Coach purchases 12,000 of their items and only manufactures 6,000. Do you think it would be more beneficial for Wheeled Coach if they manufactured more of their items? Would it be easier to manage lead times?
How does Wheel coach solve their MRP problem?

Wheeled Coach, headquartered in Winter Park, Florida.
The largest manufacturer of ambulances in the world.
The $200 million international firm sells more than 25% of its vehicles to markets outside the U.S.
Thanks For Your Time
What is the biggest reason that Wheeled Coach has such an excess inventory problem?
Full transcript