Master Production Scheduling (MPS) and MRP 1
Master Production Scheduling (MPS) and MRP 1
Master Production Scheduling (MPS) and MRP 1
Change
production
plan?
The Planning Process
Material Requirements Planning
Benefits of MRP
Better response to customer orders
Faster response to market changes
Improved utilization of facilities and labor
Reduced inventory levels
MRP Management:
MRP is a dynamic system
Facilitates re-planning when changes occur
System nervousness can result from too many changes
Time fences put limits on re-planning
Pegging links each item to its parent allowing effective
analysis of changes
MRP and JIT
MRP is a planning system that does not do detailed scheduling
MRP requires fixed lead times which might actually vary with
batch size
JIT excels at rapidly moving small batches of material through
the system
Finite Capacity Scheduling (FCS):
MRP systems do not consider capacity during normal planning
cycles
Finite capacity scheduling (FCS) recognizes actual capacity
limits
By merging MRP and FCS, a finite schedule is created with
feasible capacities which facilitates rapid material movement
• MRP Inputs
Extensions of MRP
Closed-Loop MRP:
– MRP system provides input to the capacity plan, master
production schedule (MPS), and production planning
process
Capacity Planning
– MRP system generates a load report which details capacity
requirements
– This is used to drive the capacity planning process
– Changes pass back through the MRP system for
rescheduling
MRP in Services
• Some services or service items are directly linked to
demand for other services
• These can be treated as dependent demand services or items
Restaurants
Hospitals
Hotels
MRP is designed to answer three Questions:
What is needed?
How much is needed?
When is it needed?
MRP
The main theme of MRP is “getting the right materials
to the right place at the right time”.