Talk 03. Scheduling - MRP & ERP .pdf

Intr♥ducti♥n t♥ ❤perati♥ns Management 07 Scheduling - MRP and ERP Linh Phuc – S1 23 24 Email: [email protected] MSTeam: [email protected]...

Intr♥ducti♥n t♥ ❤perati♥ns Management 07 Scheduling - MRP and ERP Linh Phuc – S1 23 24 Email: [email protected] MSTeam: [email protected]  Reading material: Chapter 13, Stevenson, W.J. (2021). Operations Management, edition 14th. New York, USA: McGraw-Hill/Irwin. Case study: P. 630 - 632, Chapter 14, Jay Heizer, Barry Render (2020). Operations Management, Sustainability and Supply chain management, edition 13th. Pearson. Content What is MRP 01 MRP inputs 02 MRP outputs 03 MRP II 04 ERP 05 01 01 What is MRP? Material Requirements Planning (MRP): A methodology that translates master schedule requirements for end items into time-phased requirements for subassemblies, components, and raw materials. 2 3 4 2a MRP System 2b 2c 02 MRP inputs 2a) Master 2b) Bill of 2c) Inventory Schedule Materials Records Definition Definition Planning Independent Horizon and Dependent Demand Preparing a Material Requirements Plan for Lot-for-Lot Ordering and for Lot-Size Ordering A firm that produces wood shutters and bookcases has received two orders for shutters: one for 100 shutters and one for 150 shutters. The 100-unit order is due for delivery at the start of week 4 of the current schedule, and the 150-unit order is due for delivery at the start of week 8. Each shutter consists of two frames and four slatted wood sections. The wood sections are made by the firm, and fabrication takes one week. The frames are ordered, and lead time is two weeks. Assembly of the shutters requires one week. There is a scheduled receipt of 70 wood sections in (i.e., at the beginning of) week 1. Determine the size and timing of planned-order releases necessary to meet delivery requirements under each of these conditions: 1. Lot-for-lot ordering (i.e., planned-order release equal to net requirements). 2. Lot-size ordering with a lot size of 320 units for frames and 70 units for wood sections.  Definition: a time-phased plan specifying timing and quantity of production for each end item. A firm that produces wood shutters and bookcases has received two orders for shutters: one for 100 shutters and one for 150 shutters. The 100-unit order is due for delivery at the start of week 4 of the current schedule, and the 150-unit order is due for delivery at the start of week 8… Start of Week No. Item: wood Beg. 1 2 3 4 5 6 7 8 shutter Inv. Quantity 0 100 150  … The wood sections are made by the firm, and fabrication takes one week. The frames are ordered, and lead time is two weeks. Assembly of the shutters requires one week… Start of Week No. Item: wood Beg. shutter 1 2 3 4 5 6 7 8 Inv. Quantity 0 100 150 Fabricate Fabricate slatted slatted wood wood sections sections 1w Lead time Assembly Assembly 1w Order frames 2w Order frames cumulative lead time: 3w   Definition: a listing of all of the raw materials, parts, subassemblies, and assemblies needed to produce one unit of a product. … Each shutter consists of two frames and four slatted wood sections.… Bill of materials Assembly diagram Level Item Quantity 0 Wood shutter 1 1 Frame 2 2 … … 3 … … 1 Slatted wood section 4 2 … … 3 … … Product structure tree  Independent Demand Wood shutter Dependent Demand Frame(2) Slatted wood section(4) …(…) …(…) …(…) …(…) Independent demand is uncertain. Dependent demand is certain. Includes information on:  the status of each item by time period  quantities on hand, quantities ordered  other details such as supplier, lead time, lot size policy  changes due to canceled order, withdrawal... 03 MRP outputs to planned orders, including revisions of due dates or order quantities and cancellations of orders. authorizing the execution of planned orders a schedule indicating the amount and timing of future orders. call attention to major discrepancies such as late and overdue orders, excessive scrap rates, reporting errors, and requirements for nonexistent parts. are useful in forecasting future inventory requirements. They include purchase commitments and other data that can be used to assess future material requirements. evaluate system operation. They aid managers by measuring deviations from plans, including missed deliveries and stockouts, and by providing information that can be used to assess cost performance.  04 MRP II Manufacturing Resources Planning (MRP II) Expanded approach to production resource planning, involving other areas of a firm in the planning process and enabling capacity requirements planning. 05 ERP A. Definition B. Pros. and Cons C. WMS D. TMS  Enterprise Resource Planning (ERP) system: A system connecting all functional areas and operations of an organization and, in some cases, its suppliers and customers via a common software infrastructure and database.  The system is customized based on the actual needs of each enterprise.  Video: “What is an ERP System” at https://www.oracle.com/erp/what-is-erp Source: https://insights.sap.com/what-is-erp  B. Pros. and Cons Customization A tailor-made system for each company High cost: Including hardware, software, Speed up operations: professional, and software One common database and software customization services, Communicate easier and faster training, and other internal staff costs. 24/7 accessibility: The system could be accessed anywhere, at anytime via Internet Time-consuming: More visibility: To train employees to use the All information are visible and shared system, especially for big  Supply chain members can better plan corporates and MNCs. production and end-product deliveries to customers.  Reduce bullwhip effect May cause Operational Manufacturing process standardization: downtime:  Eliminate redundant resources and When installing the system. increases productivity Because of technical issues. Monitoring company’s performance: Keep track of materials, orders, and financial status efficiently Coordinate manufacturing, inventory, and shipping among many different locations and business units simultaneously. Monitor employees’ time and performance and communicate with them via a standardized method.