Material requirements planning was the first of the integrated computer systems that aimed to improve the productivity of companies through the use of computer and software technology. So far, we have considered a very simple product. Complex products such as automobiles have thousands of components and a product structure tree that has several levels. If problems arise in production or supplier deliveries, schedules should be adjusted to minimize disruption in manufacturing. Although MRP calculations are simple, realistic systems require large databases and long run times to keep up with the dynamic production environment. A typical MRP ratio is illustrated in Fig. 5. Essentially, a matrix structure is an attempt to obtain the benefits of functional and product structures. This is based on the fact that a manager is responsible for functions and products in a field and is similar to the structure of the product in this regard.
The main difference, however, is that matrix groupings are temporary. In this way, the resources of each group can be modified. This is based on an ongoing review of resources that is conducted to ensure that resource allocation is appropriate for each group. Ultimately, this gives the matrix structure more flexibility than the product structure. Finally, the leadership style used in a matrix structure is decentralized. An example of such a structure is illustrated in Fig. 1.7. Capacity Planning or Capacity Demand Planning (CRP) ProjectManager is an award-winning tool that organizes your manufacturing so you can be more productive. Plan, plan and adapt your production master plan to meet demand and capacity requirements. Try our cloud-based software for free today with this 30-day trial.
Material Requirements Planning (MRP) is a system that helps manufacturers plan, plan and manage their inventory during the manufacturing process. It is mainly a software-based system. Companies use material requirements planning systems to estimate raw material quantities and plan their deliveries. MRP works backwards from a finished product production plan that is converted into a list of requirements for assemblies, components, and raw materials needed to manufacture the final product within the specified schedule. MRP-II stands for Manufacturing Resource Planning and is a system that integrates MRP-I, marketing and financial systems with a factory simulator into a strategic planning tool. MRP-II can be used to explore other resource levels and market strategies in terms of manufacturing and financial feasibility. Hypothetical marketing strategies are evaluated to determine the possible future demand for different products. These demand estimates are transmitted via the planning system in order to determine the corresponding needs for the different workstations. The factory simulator can then be used to determine bottlenecks and inactive capacities.
If necessary, production capacities can be adapted and new simulations can be carried out. Once a satisfactory level of capacity is reached, the financial system is used to estimate the impact of the hypothetical market strategy on the dollar. In this way, the most cost-effective manufacturing resource plan can be created. Planning logic is designed to calculate time-series requirements based on actual demand or a combination of actual and planned demand. The receipt of the request can come from the Master Production Schedule (MPS) or directly from the sales orders. It is designed to balance supply and demand. The required information is as follows: Global planning creates production plans for finished products. Scheduling`s goal is to translate these dates into purchase and production orders for the entire plant. The material requirements planning system also displays the material and capacity requirements for each workstation.
This system is often referred to as MRP-I to distinguish it from a more complex process called manufacturing resource planning or MRP-II. We will first discuss the MRP-I concept and then show how it is the heart of the MRP-II system. Material Requirements Planning (MRP) is a computerized inventory management system designed to improve business productivity. We have seen in previous chapters that after global planning, the next step in production planning is the creation of production plans (MPS). An MPS is a translation of production planning into calendar diagrams and details. It expresses the overall plans in relation to specific final positions or models to which priorities can be assigned. MPS is meticulously created after the planning phase to determine when certain product groups are formed, when sales orders are fulfilled, and what manufacturing capacity is still available for new customer demand. It forms the basic basis of production planning with the responsibility of creating production plans such as the Production Master Plan (MPS) and the Material Requirements Plan (MRP). Production planning (short-term) involves complex OPM decisions that cannot be solved with humanly intuitive solutions.
Instead, they use computational systems, simulation techniques, and artificial intelligence algorithms that are applied to combinatorial problems [62]. Therefore, production programming, loading and sequencing [P] are usually performed on the basis of systems such as MRP II/ERP, Kanban and Drum Buffer Rope (DBR) [4,62]. MRP II/ERP systems use upstream planning based on the expected completion date. Kanban balances production by ensuring that each station produces the same amount as previous stations; It is a useful tool to simplify administrative tasks in manufacturing. However, Kanban is not feasible if orders are unpredictable or rare [71], for example non-repetitive productions or custom engineering systems.
