JIT and material requirements planning MRP

As we saw in section 6.1, material requirements planning (MRP) was conceived in order to answer the questions how many and when in ordering parts that are directly used to manufacture end products. MRP is a logical and systematic way of planning materials. It links downstream demand with manufacture and with upstream supply. It can handle detailed parts requirements, even for products that are made infrequently and in low volumes. 

While these basic tasks are the same for both Ford and Toyota, the way they are managed by the two firms is quite different. We compare policies and practices in relation to small cars like the Ford Fiesta and the Toyota Yaris  

Having learned much from its stake in Mazda, Ford launched its own version of just-in-time called Ford Production System (FPS) a few years ago. Ford has done much to reduce product complexity. This is basically measured by the number of different body styles that are possible. Both Ford and Toyota have three basic body styles. But Ford limits variation to left-hand/right-hand drive and sunroof/no sun roof versions. Since these are multiplicative, 12 body shells are possible. Toyota in addition has variations to allow for different engine types and air conditioner types, together with spoiler/no spoiler versions. In total, this means that Toyota has over 70 bodyshell variations. When multiplied again by the number of painted body colours (say 10 for both firms), Toyota ends up with hundreds more painted body options than Ford. This contributes to a surprising difference when it comes to building the car  

1 what changes would you propose to both TPS and to FPS in order to cope with customer demands for increasing product variety and more rapid model changes  

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