Material requirements planning system

Vol. 515 G. Heisig, Planning Stability in Material Requirements Planning System. XII, 264 pages. 2002. 

An enterprise resources planning system is a set of software modules that provides a company with the capability of automating the transactions involved with its business processes. The ERP system provides a common database and establishes uniform policies and practices across the entire enterprise. This allows real-time access to the data. An ERP system is an outgrowth of the traditional manufacturing software systems such as Material Requirements Planning Systems (MRPII). The traditional systems focused on planning and optimization of these plans. The ERP system expanded beyond these to serve additional functions in the firm. 

In order to limit the damage that has already occurred (delayed deadlines and high capital tie-up) in conventional material requirements planning systems and ERP systems, an extremely complex EDP module, the so-called capacity scheduling module, is activated (Fig. 29). 

Zhao, X. Lee, T.S. (1993) Freezing the master production schedule for material requirements planning systems under demand uncertainty. In Journal of Operations Management, 11(2), 185-205. 

Before diseussing the strueture of a eontrol system it is neeessary to define what is meant by a system. Systems mean different things to different people and ean inelude purely physieal systems sueh as the maehine table of a Computer Numerieally Controlled (CNC) maehine tool or alternatively the proeedures neeessary for the purehase of raw materials together with the eontrol of inventory in a Material Requirements Planning (MRP) system. 

To integrate an organizational unit that uses multipurpose batch plants into the company, IT infrastructure with its ERP system, a hierarchical planning approach is most often used. Starting from a material requirements planning (MRP) run, capacity requirements are determined and roughly checked, although the check of the capacity requirements is not directly combined with the material requirements. 

Supporting IT systems Finally, the accuracy and speed of an integrated process is heavily influenced by the availability of IT systems, which provide a common database, automated functions like Materials Requirements Planning (MRP), and opportunities for simulation and optimization (for instance, real time finite capacity production scheduling, or on-line customer order confirmation based on existing overall supply chain inventory or capacity). 

The first one that will be described is MRP (materials requirements planning). Here is a definition of materials requirements planning from Operations Management, by William Stevenson A compnter-based information system that translates master schedule requirements for end items into time-phased requirements for subassemblies, components, and raw materials. ... 

Creating a bill of materials In products for shape-centered modeling systems, the demand for most raw materials, parts, and assemblies depends on the demand of the finished product. Materials requirements planning (MRP) is an inherently computer assisted method for the calculation of this dependent demand. One of the MRP inputs is the bill of materials (BOM). The bill of materials is a record of information about the identification and quantity of raw materials, components, subassemblies, and assemblies for a product. Standard and other purchased parts, such as fasteners, need special handling. They are neither modeled nor produced in the engineering and production system. 

The rationale for investing in supply chain management software systems is the same as that required for investment in material requirements planning and enterprise resource planning software systems. The goal is to reduce inventory levels while improving customer service. 

The material requirements plan becomes input to the shop-floor system, which is the unit that actually starts to manufacture the products. The detailed plans are also sent to the vendors to ensure that they provide the needed materials in time for production of the end product. 

Vietsoft ERR—apparel and footwear MIS (management information system) for windows, MRP (material requirements planning), purchasing, PPC, inventory, payroll, etc. 

Materials requirement planning (MRP) is the set of techniques which uses bills of material, inventory on hand and on order data, and the production schedule or plan to calculate quantities and timing of materials. Such a plan is incomplete if it does not take into account whether manufacturing resources (e.g. plant, people, energy, space) will be available at the desired time. MRPII arose from an appreciation of the need to time and phase materials with resource availability so as to achieve a given output date. MRPII is an integrated computer-based system. A computer-based approach is essential due to the amount of data required. Various software systems are available, each based on the same principles. MRPII is depicted in Figure 18.1. 

Materials requirement planning (MRP) It is a dependent demand system that calculates materials requirements and production plans to satisfy known and forecast... 

In my own defense, let me say that the focus during the sixties and seventies was primarily on manual material requirements planning (breakdown into bills of materials) and putting the planning boards in work preparation onto EDP systems. The paradigms that evolved then - like all paradigms - are long lived. 

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