Mrp 2 Presentation

8/6/2019 Mrp 2 Presentation

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SHREEAUROBINDO INSTITUTE OF

MANAGEMENT & SCIENCE

Presentation On

Manufacturing Resource Planning(MRP II)

Submitted To:- Submitted By:-

Mr. Vishwas Sharma Rohit Nigam


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MANUFACTURING RESOURCE PLANNING

(MRP II) IS DEFINED AS A MASTERPLAN THAT

INCLUDES METHOD FOR THE EFFECTIVE PLANNINGOF ALL THE RESOURCES OF A MANUFACTURING

COMPANY.

IT HAS SOME ADDITIONAL IMPROVEMENTS OVERTHE ORIGINAL MRP I.E. MATERIAL REQUIREMENT

PLANNING

MRP-II


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MRP II

Expanded MRP with emphasis placed onintegration

y Financial planning

y Human relationy Marketing

y Capacity requirement planning

y Purchasing

y Production planning & Scheduling

y Operational Planning


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mrp material

requirements

planning

MRP II Manufacturing

Resource Planning

ERP- Enterprise

Resource Planning

MRP-II


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MAJORDEVELOPMENTS INCLUDED IN

MRPII

Feedback

Batching rules

Lot for Lot Economic batch Quantity Part Period Cover

Software extension programmes

Data accuracy


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BENEFITS

FOR Management

Anaccurate,consistentandeffectivewaytorunthe whole business

Theabilitytocope withdifficult

economicconditions


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FORSALES / MARKETING

Improveddeliveriestocustomers

Faster,moreaccuratedeliverypromising

Improvedresponsivenesstocustomerneeds


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FORPRODUCTION

Improvedproductivityandresource

utilization

IncreasedoutputBetterreliabilityofproductionplans

Bettercontrolofinventories


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FORFINANCIAL AND COSTING

Reduced workingcapitalforinventory

Improvedcashflow throughquickerdeliveries

Accurateinventoryrecords

Timelyandvalidcostandprofitabilityinformation


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CRITICISM

File/databaseaccuracymust bemaintained

Highlycomputerbased

Doesnotaffectqualitymanagementissues

Inflexibleandreliesonforecast.


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AGGREGATE PRODUCTION PLANNING

Aggregate Planning is Concerned With

Determining The Quantity And Timing Of

Production For The Intermediate Future,Often From Three To 18 Months Ahead.

The Goal is To Produce high quality products

at low cost & it should be available on the time

when the market wants them.


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STRATEGIES IN AGGREGATE PLANNING

1. Level Production Strategy This is to Increase Inventory During Periods Of

Low Demand To Meet High Demand in Future

Periods. However, By doing this, Costs Of Storage and

Handling Increases.


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2. CHASE STRATEGY

Varying Work Force Size in response to the

varying requirements

This is to Hire Or Lay Off Workers To MeetProduction Rates.

In this option, Often New Employees Need To Be

Trained.


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Varying Production Rates Through Overtime Or

Idle Time.

There is always a Limit For Overtime. Costs also

Increase.

3.MAINTAIN A CONSTANT WORKFORCE

BUT VARY THE UTILIZATION


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Depend on outsiders through subcontracting

when additional output is required.

Costly, Opens Doors To Competitors, Hard ToFind Perfect Subcontractor.

4. SUBCONTRACTING


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5. BACKORDERING AT HIGH DEMAND

PERIODS

Back ordering means That A Firm Promises To

Deliver a Product In A Later Date. Many Auto

Dealers Purposely Back Order.


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MASTER PRODUCTION SCHEDULE

Document that defines the specific goods thatspecific shops will produce in definite quantitiesat definite times over a short-term horizon inaccordance with the aggregate plan

1) The sizing and timing of specific item productionquantities

2) The sizing and timing of manufactured orpurchased components

3) The sequence of individual orders or jobs


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JUST-IN-TIME (JIT)

A highly coordinated processing system in which goods

move through the system, and services are performed,

just as they are needed.

In short, the just-in-time inventory system is all about

having the right material, at the right time, at the

right place, and in the right quantity without the

safety net of Inventory, the implications of which arebroad for the Implementers.


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HISTORY OF JIT

The technique was developed by Toyota Motor

Corporation of Japan as part of its Toyota Production

System (TPS).

JIT has been successfully employed in Taiwan, Korea

& Japan.


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BENEFITS OF JIT

Lower stock holding means a reduction in storageLower stock holding means a reduction in storagespace which saves rent and insurance costsspace which saves rent and insurance costs

As stock is only obtained when it is needed, lessAs stock is only obtained when it is needed, lessworking capital is tied up in stockworking capital is tied up in stock

There is less likelihood of stock perishing, becomingThere is less likelihood of stock perishing, becomingobsolete or out ofobsolete or out of datedate

Avoids the buildAvoids the build--up of unsold finished product that canup of unsold finished product that canoccur with sudden changes in demandoccur with sudden changes in demand


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Thanks for

Co-operation

Mrp 2 Presentation

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