Lecture Fundamentals of operations management (4/e): Chapter 22 - Davis, Aquilano, Chase

Chapter 17 Inventory systems for dependent demand, after studying this chapter you will be able to: Explain the changing role of materials requirements planning (MRP) within a manufacturing organization, discuss the role of MRP within an enterprise resource planning (ERP) system, introduce the fundamental concepts and calculations that drive an MRP system,...

DAVIS F   O   U   R   T   H       E   D   I   T   I   O   N AQUILANO CHASE chapter 17 Inventory Systems for Dependent Demand © The McGraw-Hill Companies, Inc., 2003 PowerPoint Presentation by Charlie Cook Chapter Objectives Chapter Objectives • Explain the changing role of materials requirements planning (MRP) within a manufacturing organization • Discuss the role of MRP within an enterprise resource planning (ERP) system • Introduce the fundamental concepts and calculations that drive an MRP system • Define the various elements that make up an MRP system • Demonstrate how MRP-related systems are used in service operations âTheMcGrawưHill FundamentalsofOperations Companies,Inc.,2003 Management4e 172 ChapterObjectives(contd) ChapterObjectives(contd) ã Recognize that MRP and JIT can be used together within an organization FundamentalsofOperations Management4e âTheMcGrawưHill Companies,Inc.,2003 173 MasterProductionSchedule MasterProductionSchedule ã Master Production Schedule (MPS) –A time-phased production plan that specifies how many of, and when to build, each end item • Material Requirements Planning –Determines the number of subassemblies, components, and raw materials required and their build dates to complete a given number of end products by a specific date Fundamentals of Operations  Management 4e  © The McGraw­Hill  Companies, Inc., 2003 17–4 The Role of MRP within The Role of MRP within the Manufacturing Function the Manufacturing Function Fundamentals of Operations  Management 4e  © The McGraw­Hill  Companies, Inc., 2003 Exhibit 17.1 17–5 The Role of MRP within an ERP System The Role of MRP within an ERP System Fundamentals of Operations  Management 4e  © The McGraw­Hill  Companies, Inc., 2003 Exhibit 17.2 17–6 Master Production Schedule Master Production Schedule • Time Fences –Periods of time with each period having some specified level of opportunity for the customer to make changes –Frozen • Make no or only insignificant changes to products –Moderately firm • Allow some changes in specific products –Flexible • Allow almost any variation in products Fundamentals of Operations  Management 4e  © The McGraw­Hill  Companies, Inc., 2003 17–7 Integrating MRP and JIT into the Supply Chain Integrating MRP and JIT into the Supply Chain Fundamentals of Operations  Management 4e  © The McGraw­Hill  Companies, Inc., 2003 Exhibit 17.3 17–8 Master Production Schedule Time Fences Master Production Schedule Time Fences Fundamentals of Operations  Management 4e  © The McGraw­Hill  Companies, Inc., 2003 Exhibit 17.4 17–9 Material Requirements Planning (MRP)  Material Requirements Planning (MRP)  Systems Systems • Materials Requirements Planning System –Creates requirements and schedules identifying the parts, components, and materials necessary to produce the end products specified in the MPS –Links inventory and scheduling systems Fundamentals of Operations  Management 4e  © The McGraw­Hill  Companies, Inc., 2003 17–10 Overall View of the Inputs to a Standard MRP Program  Overall View of the Inputs to a Standard MRP Program  and the Reports Generated by the Program and the Reports Generated by the Program Fundamentals of Operations  Exhibit 17.6 Management 4e  © The McGraw­Hill  Companies, Inc., 2003 17–17 Product Structure Tree for Product A Product Structure Tree for Product A Fundamentals of Operations  Management 4e  © The McGraw­Hill  Companies, Inc., 2003 Exhibit 17.7 17–18 Subassemblies and Parts List in an  Subassemblies and Parts List in an  Indented Format and in a Single­Level List Indented Format and in a Single­Level List Fundamentals of Operations  Management 4e  © The McGraw­Hill  Companies, Inc., 2003 Exhibit 17.8 17–19 Part L Hierarchy in (a) Expanded to  Part L Hierarchy in (a) Expanded to  the Lowest Level of Each Item in (b) the Lowest Level of Each Item in (b) Fundamentals of Operations  Management 4e  © The McGraw­Hill  Companies, Inc., 2003 Exhibit 17.9 17–20 The Inventory Status Record The Inventory Status Record for an Item in Inventory for an Item in Inventory Fundamentals of Operations  Management 4e  © The McGraw­Hill  Companies, Inc., 2003 Exhibit 17.10 17–21 MRP Computer Program MRP Computer Program • Output Reports –Primary reports • Planned orders • Order release notices • Changes in due dates • Cancellations or suspensions of open orders • Inventory status data –Secondary reports • Planning reports • Performance reports • Exceptions reports Fundamentals of Operations  Management 4e  © The McGraw­Hill  Companies, Inc., 2003 17–22 Product Structure Tree for Product T Product Structure Tree for Product T Fundamentals of Operations  Management 4e  © The McGraw­Hill  Companies, Inc., 2003 Exhibit 17.11 17–23 Materials  Materials  Requirements Plan  Requirements Plan  for Completing for Completing 100 units of  100 units of  Product T in Period  Product T in Period  88 Fundamentals of Operations  Exhibit 17.12 Management 4e  © The McGraw­Hill  Companies, Inc., 2003 17–24 The Environment of the Master Scheduler The Environment of the Master Scheduler Fundamentals of Operations  Management 4e  Source: Romeyn C Everdell and Woodrow W Chamberlain, “Master Scheduling in a Multi-Plant Environment,” Proceedings of the American Production and Inventory Control Society (1980), p 421 © The McGraw­Hill  Companies, Inc., 2003 Exhibit 17.13 17–25 The Aggregate Plan and the Master The Aggregate Plan and the Master Production Schedule for Mattresses Production Schedule for Mattresses Fundamentals of Operations  Management 4e  © The McGraw­Hill  Companies, Inc., 2003 Exhibit 17.14 17–26 CRP: Workload for Work Center CRP: Workload for Work Center Fundamentals of Operations  Management 4e  © The McGraw­Hill  Companies, Inc., 2003 Exhibit 17.15 17–27 Scheduled Workload for Work Center A Scheduled Workload for Work Center A Fundamentals of Operations  Management 4e  © The McGraw­Hill  Companies, Inc., 2003 Exhibit 17.16 17–28 Manufacturing Resource Planning  Manufacturing Resource Planning  (MRP II) (MRP II) • MRP II –Advanced MRP system that takes into consideration the equipment capacities and other resources associated with a manufacturing facility • Sales and Operations Planning (S&OP) –Extends MRP by aligning customer demand with both in-house and supplier resources Fundamentals of Operations  Management4e âTheMcGrawưHill Companies,Inc.,2003 1729 LotSizinginMRPSystems LotSizinginMRPSystems ã Lot Sizing Lot sizes are the part quantities issued in the planned order receipt and the planned order release sections of an MRP schedule • Lot-Sizing Techniques –Lot-for-lot –Economic order quantity (EOQ) –Least total costs –Least unit cost Fundamentals of Operations  Management 4e  © The McGraw­Hill  Companies, Inc., 2003 17–30 Lot­for­Lot Method of Determining  Lot­for­Lot Method of Determining  Production Quantities Production Quantities Fundamentals of Operations  Management 4e  © The McGraw­Hill  Companies, Inc., 2003 Exhibit 17.17 17–31 ... • Demonstrate how MRP-related systems are used in service operations âTheMcGrawưHill FundamentalsofOperations Companies,Inc.,2003 Management4 e 172 ChapterObjectives(contd) ChapterObjectives(contd)... the Manufacturing Function Fundamentals? ?of? ?Operations? ? Management? ?4e  © The McGraw­Hill  Companies, Inc., 2003 Exhibit 17.1 17–5 The Role? ?of? ?MRP within an ERP System The Role? ?of? ?MRP within an ERP System Fundamentals? ?of? ?Operations? ?... order release sections of an MRP schedule • Lot-Sizing Techniques –Lot-for-lot –Economic order quantity (EOQ) –Least total costs –Least unit cost Fundamentals? ?of? ?Operations? ? Management? ?4e  © The McGraw­Hill