PERT 06 Material Requirement Planning (MRP)

Size: px
Start display at page:

Download "PERT 06 Material Requirement Planning (MRP)"

Transcription

1 PERT 06 Material Requirement Planning (MRP) Model Persediaan yang tergantung permintaan Master Production Schedule Bills of Materials Accurate Inventory records Purchase Orders Outstanding Lead Times for Each Component

2 Requirements for Effective Use of Dependent Demand Inventory Models Effective use of dependent demand inventory models requires that the operations manager know the: master production schedule specifications or bills-of-material inventory availability purchase orders outstanding lead times

3 Demand Characteristics Independent demand Dependent demand 100 x 1 = 100 tabletops 100 tables 100 x 4 = 400 table legs No. of tables Continuous demand No. of tables Discrete demand Week M T W Th F M T W Th F

4 Master Production Schedule Shows items to be produced End item, customer order, module Derived from aggregate plan

5 Master Production Schedule Drives MRP process with a schedule of finished products Quantities represent production not demand Quantities may consist of a combination of customer orders and demand forecasts Quantities represent what needs to be produced, not what can be produced Quantities represent end items that may or may not be finished products

6 Master Production Schedule Shows items to be produced End item, customer order, module Derived from aggregate plan Example Item/Week Oct 3 Oct 10 Oct 17 Oct 24 Drills Saws

7 Master Production Schedule PERIOD MPS ITEM Pencil Case Clipboard Lapboard Lapdesk

8 Inputs to the Production Plan Production Capacity Inventory Procurement Supplier Performance Marketing Customer Demand Aggregate Production Plan Finance Cash Flow Human Resources Manpower Planning Management Return on Investment Capital Engineering Design Completion

9 The Planning Process Production Plan Master Production Schedule Material Requirements Plan Capacity Requirements Plan No Yes Realistic?? Execute Capacity Plans Execute Material Plans

10 Inventory Classifications Inventory Process stage Number & Value Demand Type Other Raw Material WIP Finished Goods A Items B Items C Items Independent Dependent Maintenance Dependent Operating

11 Dependent versus Independent Demand Item Demand Source Material Type Method of Estimating Demand Planning Method Materials With Independent Demand Company Customers Finished Goods Forecast & Booked Customer Orders EOQ & ROP Materials With Dependent Demand Parent Items WIP & Raw Materials Calculated MRP

12 Inputs to the Production Plan Production Capacity Inventory Procurement Supplier Performance Marketing Customer Demand Aggregate Production Plan Finance Cash Flow Human Resources Manpower Planning Management Return on Investment Capital Engineering Design Completion

13 The Planning Process Production Plan Master Production Schedule Material Requirements Plan Capacity Requirements Plan No Yes Realistic?? Execute Capacity Plans Execute Material Plans

14 Typical Focus of the Master Production Schedule Number of end items Make to Order (Process Focus) Assemble to Order or Forecast (Repetitive) Stock to Forecast (Product Focus) Schedule finished product Typical focus of the master production schedule Number of inputs Schedule orders Examples: Print shop Machine shop Fine dining restaurant Schedule modules Motorcycles, autos, TVs, fast-food restaurant Steel, Beer, Bread Light bulbs, Paper

15 Bill-of-Material List of components & quantities needed to make product Provides product structure (tree) Parents: Items above given level Children: Items below given level Shows low-level coding Lowest level in structure item occurs Top level is 0; next level is 1 etc.

16 Figure from Example 1

17 Special Bills-of-Material Modular bills Modules are final components used to make assemble-to-stock end items Planning bills Used to assign artificial parent Reduces number of items scheduled Phantom bills Used for subassemblies that exist temporarily

18 Bill-of-Material Product Structure Tree Bicycle(1) P/N 1000 Handle Bars (1) P/N 1001 Frame Assembly (1) P/N 1002 Wheels (2) P/N 1003 Frame (1) P/N 1004

19 Time-Phased Product Structure Start production of D 2 weeks 1 week G D 2 weeks 1 week Must have D and E completed here so production can begin on B 3 weeks D E 2 weeks 2 weeks to produce E 1 week F B A 1 week C

20 Material Requirements Planning (MRP) Manufacturing computer information system Determines quantity & timing of dependent demand items Gross Requirements Scheduled Receipts 5 30 Available Net Requirements 7 Planned Order Receipts 7 Planned Order Releases Corel Corp.

21 MRP Requirements Computer system Mainly discrete products Accurate bill-of-material Accurate inventory status 99% inventory accuracy Stable lead times T/Maker Co.

22 Material Requirements, Planning (MRP) Computerized inventory control and production planning system When to use MRP? Dependent demand items Discrete demand items Complex products Job shop production Assemble-to-order environments

23 MRP Benefits Increased customer satisfaction due to meeting delivery schedules Faster response to market changes Improved labor & equipment utilization Better inventory planning & scheduling Reduced inventory levels without reduced customer service

24 Material Requirements Planning Master production schedule Product structure file Material requirements planning Item master file Planned order releases Work orders Purchase orders Rescheduling notices

25 Structure of the MRP System BOM (Bill-of-Material) Master Production Schedule MRP by period report Lead Times (Item Master File) Inventory Data MRP Programs MRP by date report Planned orders report Purchase requirements Purchasing data Exception reports

26 Table 14.3

27 Derivation of Master Schedule A S B C Lead time = 4 for A Master schedule for A B C Lead time = 6 for S Master schedule for S Master schedule for S sold directly Periods Periods Gross requirements: B = = 45 Therefore, these are the gross requirements for B

28 MRP Systems - Input and Output Bill of Materials Item Master Master Production Schedule Material Requirements Planning System Planned Order & Other Reports Inventory Status Purchasing Data

29 Lot-Sizing Techniques Lot-for-lot Economic Order Quantity Part Period Balancing Wagner-Whitin Algorithm

30 Figure from Example 4

31 Figure from Example 5

32 Figure from Example 6

33 Extensions of MRP Closed loop MRP Capacity planning - load reports MRP II - Material Resource Planning Enterprise Resource Planning

34 Figure 14.8: Closed-Loop MR

35 Extensions of MRP Capacity Planning Tactics for smoothing the load and minimizing the impact of changed lead time include: Overlapping - reduces the lead time, entails sending pieces to the second operation before the entire lot has completed the first operation Operations splitting - sends the lot to two different machines for the same operation Lot splitting - breaking up the order and running part of it ahead of the schedule

36

IM 322 Inventory Management

IM 322 Inventory Management IM 322 Inventory Management Chapter 9: Material Requirement Planning -1- Textbook: Donald Waters, Inventory Control and Management, 2 nd ed Chapter Outline Master Scheduling The use of MRP (Material Requirement

More information

Universidad del Turabo MANA 705 DL Workshop Eight W8_8_3 Aggregate Planning, Material Requirement Planning, and Capacity Planning

Universidad del Turabo MANA 705 DL Workshop Eight W8_8_3 Aggregate Planning, Material Requirement Planning, and Capacity Planning Aggregate, Material Requirement, and Capacity Topic: Aggregate, Material Requirement, and Capacity Slide 1 Welcome to Workshop Eight presentation: Aggregate planning, material requirement planning, and

More information

Announcements. We will not cover all of chapter 7. We will concentrate on pp. 254-270 8 th edition. Process Strategy. Process, Volume, and Variety

Announcements. We will not cover all of chapter 7. We will concentrate on pp. 254-270 8 th edition. Process Strategy. Process, Volume, and Variety Process Strategy Overview Process strategies Service process design Process Analysis And Design Flow charts Service system mapping Time-Function Mapping Value Stream Mapping Process Charts Service Blueprinting

More information

Material Requirements Planning MRP

Material Requirements Planning MRP Material Requirements Planning MRP ENM308 Planning and Control I Spring 2013 Haluk Yapıcıoğlu, PhD Hierarchy of Decisions Forecast of Demand Aggregate Planning Master Schedule Inventory Control Operations

More information

Material Requirement Planning (MRP) Mohd Yusnurahman Bin Mohd Yuznah

Material Requirement Planning (MRP) Mohd Yusnurahman Bin Mohd Yuznah Material Requirement Planning (MRP) Nur'Ain Binti Yahaya Hazwan Bin Ismail Mohd Yusnurahman Bin Mohd Yuznah Nurhazwani Binti Jaya B050810172 B050810289 B050810294 B050810188 What is MRP? a system that

More information

Manufacturing. Manufacturing challenges of today and how. Navision Axapta solves them- In the current explosive economy, many

Manufacturing. Manufacturing challenges of today and how. Navision Axapta solves them- In the current explosive economy, many Manufacturing challenges of today and how Navision Axapta solves them- the solution for change; controlled by you. Manufacturing In the current explosive economy, many manufacturers are struggling to keep

More information

Management Information Systems

Management Information Systems Faculty of Foundry Engineering Virtotechnology Management Information Systems Classification, elements, and evolution Agenda Information Systems (IS) IS introduction Classification Integrated IS 2 Information

More information

How to Configure and Use MRP

How to Configure and Use MRP SAP Business One How-To Guide PUBLIC How to Configure and Use MRP Applicable Release: SAP Business One 8.8 All Countries English October 2009 Table of Contents Purpose... 3 The MRP Process in SAP Business

More information

MATERIAL REQUIREMENTS PLANNING

MATERIAL REQUIREMENTS PLANNING MATERIAL REQUIREMENTS PLANNING A basic tool for performing the detailed material planning function in the manufacture of component parts and their assembly into finished items. MRP s Managerial objective

More information

Dependent vs Independent Demand. The Evolution of MRP II. MRP II:Manufacturing Resource Planning Systems. The Modules In MRP II System

Dependent vs Independent Demand. The Evolution of MRP II. MRP II:Manufacturing Resource Planning Systems. The Modules In MRP II System MRP II:Manufacturing Resource Planning Systems IE 505: Production Planning Control Lecture Notes* Rakesh Nagi University at Buffalo * Adapted in part from Lecture Notes of Dr. George Harhalakis, University

More information

CHAPTER 6 AGGREGATE PLANNING AND INVENTORY MANAGEMENT 명지대학교 산업시스템공학부

CHAPTER 6 AGGREGATE PLANNING AND INVENTORY MANAGEMENT 명지대학교 산업시스템공학부 CHAPTER 6 AGGREGATE PLANNING AND INVENTORY MANAGEMENT 명지대학교 산업시스템공학부 Learning Objectives You should be able to: Describe the hierarchical operations planning process in terms of materials planning & capacity

More information

Inventory: Independent Demand Systems

Inventory: Independent Demand Systems Inventory: Independent Demand Systems Inventory is used in most manufacturing, service, wholesale, and retail activities and because it can enhance profitability and competitiveness. It is widely discussed

More information

Operations Management

Operations Management 13-1 MRP and ERP Operations Management William J. Stevenson 8 th edition 13-2 MRP and ERP CHAPTER 13 MRP and ERP McGraw-Hill/Irwin Operations Management, Eighth Edition, by William J. Stevenson Copyright

More information

Manufacturing Applications in Microsoft Dynamics GP 10.0

Manufacturing Applications in Microsoft Dynamics GP 10.0 Manufacturing Applications in Microsoft Dynamics GP 10.0 8817: Manufacturing Applications in Microsoft Dynamics GP 10.0 (4 Days) About this Course This four-day instructor-led course provides students

More information

ERP Course: Production and Materials Management Reading: Chapter 6 from Mary Sumner

ERP Course: Production and Materials Management Reading: Chapter 6 from Mary Sumner ERP Course: Production and Materials Management Reading: Chapter 6 from Mary Sumner Peter Dolog dolog [at] cs [dot] aau [dot] dk 5.2.03 Information Systems September 16, 2008 2 Sales Finished and packaged

More information

Production Management

Production Management Production Management Chwen-Tzeng Su, PhD Professor, Department of Industrial Management National Yunlin University of Science & Technology Touliu, Yunlin, Taiwan 640, R.O.C. E-mail: suct@yuntech.edu.tw

More information

ERP(Enterprise Resource Planning) & MRP

ERP(Enterprise Resource Planning) & MRP ERP(Enterprise Resource Planning) & MRP Mr.Vijayakumar S 1 Session Objectives At the end of this session the delegate would have understood ERP ERP example SAP MRP and structure MRP1 & MRPII difference

More information

Item Master and Bill of Material

Item Master and Bill of Material 4 Item Master and Bill of Material MGT2405, University of Toronto, Denny Hong Mo Yeh The enterprise resource planning (ERP) system plans and controls all resources in an enterprise. Material requirement

More information

Job Manager for Tool and Die Shops

Job Manager for Tool and Die Shops Job Manager for Tool and Die Shops What makes Tool and Die Shops unique? First, most orders are for a unique Tool or Die. No two Jobs are alike. The Job is a one of a kind job, not a mass production type

More information

Material Requirements Planning (MRP)

Material Requirements Planning (MRP) Material Requirements Planning (MRP) Unlike many other approaches and techniques, material requirements planning works which is its best recommendation. Joseph Orlicky, 1974 1 History Begun around 1960

More information

Sage 200 Manufacturing Datasheet

Sage 200 Manufacturing Datasheet Sage 200 Manufacturing Datasheet Sage 200 Manufacturing is a powerful manufacturing solution that enables you to manage your entire supply chain in detail, end to end, giving you the information needed

More information

A Cross-Functional View of Inventory Management, Why Collaboration among Marketing, Finance/Accounting and Operations Management is Necessary

A Cross-Functional View of Inventory Management, Why Collaboration among Marketing, Finance/Accounting and Operations Management is Necessary A Cross-Functional View of Inventory Management, Why Collaboration among Marketing, Finance/Accounting and Operations Management is Necessary Richard E. Crandall, Appalachian State University, John A.

More information

Operations Management

Operations Management Operations Management Short-Term Scheduling Chapter 15 15-1 Outline GLOAL COMPANY PROFILE: DELTA AIRLINES THE STRATEGIC IMPORTANCE OF SHORT- TERM SCHEDULING SCHEDULING ISSUES Forward and ackward Scheduling

More information

Manufacturing Efficiency Guide

Manufacturing Efficiency Guide Note: To change the product logo for your ow n print manual or PDF, click "Tools > Manual Designer" and modify the print manual template. Contents 3 Table of Contents 1 Introduction 5 2 What Is Manufacturing

More information

Inventory Management. Material Requirements Planning. Chris Caplice ESD.260/15.770/1.260 Logistics Systems Oct 2006

Inventory Management. Material Requirements Planning. Chris Caplice ESD.260/15.770/1.260 Logistics Systems Oct 2006 Inventory Management Material Requirements Planning Chris Caplice ESD.260/15.770/1.260 Logistics Systems Oct 2006 Assumptions: Basic MRP Model Demand Constant vs Variable Known vs Random Continuous vs

More information

Functional Area Systems Production / Operation Systems

Functional Area Systems Production / Operation Systems ACS-1803 Introduction to Information Systems Instructor: Kerry Augustine Functional Area Systems Production / Operation Systems Lecture Outline 5, Part 2 ACS-1803 Introduction to Information Systems Examples:

More information

26/10/2015. Functional Area Systems Production / Operation Systems. Examples: Functional Area Info Systems. Functional Area Information Systems

26/10/2015. Functional Area Systems Production / Operation Systems. Examples: Functional Area Info Systems. Functional Area Information Systems ACS-1803 Introduction to Information Systems Instructor: Kerry Augustine Functional Area Systems Production / Operation Systems Lecture Outline 5, Part 2 ACS-1803 Introduction to Information Systems Examples:

More information

1 2 3 4 5 Demand 150 170 180 160 160

1 2 3 4 5 Demand 150 170 180 160 160 MGT 3110: Exam 2 Study Guide 1. What is aggregate planning? What is its purpose? 2. What are demand options for aggregate planning? Give examples and discuss the effects of each. 3. Why is there a need

More information

Material Requirements Planning (MRP)

Material Requirements Planning (MRP) The Priority Enterprise Management System Material Requirements Planning (MRP) Contents MRP - Introduction...2 Calculating Demand for Top-Level Parts...2 Calculating Demand for Sub-assemblies and Raw Materials...3

More information

INTRODUCTION. What is Enterprise Resource Planning?

INTRODUCTION. What is Enterprise Resource Planning? 1 INTRODUCTION MGT2405, University of Toronto, Denny Hong-Mo Yeh What is Enterprise Resource Planning? According to the definition given in the APICS Dictionary (American Production and Inventory Control

More information

Job Manager for Metal Fabrication

Job Manager for Metal Fabrication Job Manager for Metal Fabrication What makes Metal Fabrication unique? First, most metal shops are building to unique specifications. The Jobs are service type jobs, not production type jobs. Mass Production

More information

Supply Chain Leaders Understanding and Improving Supply Chain Performance Where It Counts

Supply Chain Leaders Understanding and Improving Supply Chain Performance Where It Counts Leaders Understanding and Improving Performance Where It Counts What is the Leaders Programme? Leaders is an action-oriented, practical programme which identifies the most vital supply chain improvements

More information

Manufacturing Flow Management

Manufacturing Flow Management Manufacturing Flow Management Distribution D Distribution Authorized to Department of Defense and U.S. DoD Contractors Only Aim High Fly - Fight - Win Supply Chain Management Processes Information Flow

More information

MASTER PRODUCTION SCHEDULE

MASTER PRODUCTION SCHEDULE 6 MASTER PRODUCTION SCHEDULE MGT2405, University of Toronto, Denny Hong-Mo Yeh So far, in discussing material requirement planning (MRP), we have assumed that master production schedule (MPS) is ready

More information

Chapter 11. MRP and JIT

Chapter 11. MRP and JIT Chapter 11 MRP and JIT (Material Resources Planning and Just In Time) 11.1. MRP Even if MRP can be applied among several production environments, it has been chosen here as a preferential tool for the

More information

Operations Management Part 12 Purchasing and supplier management PROF. NAKO STEFANOV, DR. HABIL.

Operations Management Part 12 Purchasing and supplier management PROF. NAKO STEFANOV, DR. HABIL. Operations Management Part 12 Purchasing and supplier management PROF. NAKO STEFANOV, DR. HABIL. Introduction basic terms Supply management describes the methods and processes of modern corporate or institutional

More information

Expert s Guide to Successful MRP Projects. September 2012

Expert s Guide to Successful MRP Projects. September 2012 September 2012 Ziff Davis Research All Rights Reserved 2012 White Paper Executive Summary For most manufacturers, the planning department performs business critical functions. It is responsible for balancing

More information

ISE 421 QUANTATIVE PRODUCTION PLANNING

ISE 421 QUANTATIVE PRODUCTION PLANNING ISE 421 QUANTATIVE PRODUCTION PLANNING LECTURE III MRP, MRPII, ERP, APS Dr. Arslan ÖRNEK 2013 2014 Fall Term PRODUCTION PLANNING & SCHEDULING (PP&S) PP&S is one of the most critical activities in a manufacturing

More information

Material Requirements Planning. Lecturer: Stanley B. Gershwin

Material Requirements Planning. Lecturer: Stanley B. Gershwin Material Requirements Planning Lecturer: Stanley B. Gershwin MRP Overview Primary source: Factory Physics by Hopp and Spearman. Basic idea: Once the final due date for a product is known, and the time

More information

Inventory Management. Topics on inventory management

Inventory Management. Topics on inventory management Inventory Management ISyE 3104 Fall 2013 Topics on inventory management Objective An introduction to the fundamental concepts, tradeoffs and methods in inventory management Topics Deterministic inventory

More information

I. INTRODUCTION A. There are two aspects to an effective operating system: 1. Design 2. Control.

I. INTRODUCTION A. There are two aspects to an effective operating system: 1. Design 2. Control. Operations Control Chapter 8 CHAPTER OUTLINE I. INTRODUCTION A. There are two aspects to an effective operating system: 1. Design 2. Control. B. Effective operations control is attained by applying the

More information

Brochure. SAP Business One for Manufacturing. Software for Manufacturing Organisations

Brochure. SAP Business One for Manufacturing. Software for Manufacturing Organisations Brochure SAP Business One for Manufacturing Software for Manufacturing Organisations SAP Business One for Manufacturing SAP Business One for Manufacturing offers an unparalleled combination of functionality

More information

Subbu Ramakrishnan. Manufacturing Finance with SAP. ERP Financials. Bonn Boston

Subbu Ramakrishnan. Manufacturing Finance with SAP. ERP Financials. Bonn Boston Subbu Ramakrishnan Manufacturing Finance with SAP ERP Financials Bonn Boston Contents at a Glance 1 Overview of Manufacturing Scenarios Supported by SAP... 25 2 Overview of Finance Activities in a Make-to-Stock

More information

Chapter 6. Inventory Control Models

Chapter 6. Inventory Control Models Chapter 6 Inventory Control Models Learning Objectives After completing this chapter, students will be able to: 1. Understand the importance of inventory control and ABC analysis. 2. Use the economic order

More information

Functional Area Systems Lecture 5

Functional Area Systems Lecture 5 ACS-1803 Introduction to Information Systems Instructor: David Tenjo Functional Area Systems Lecture 5 1 1. ACCOUNTING TRANSACTION SYSTEMS 2 1 Business Transaction Cycles 3 Business Transaction Cycles

More information

Principles of Inventory Management (PIM)

Principles of Inventory Management (PIM) Principles of Inventory Management (PIM) Session 1: Operation Management Foundations Define the science and practice of operations management (OM) Answer the question why OM should be studied Describe

More information

AccSoft ERP. Complex Business Tasks made easy with AccSoft ERP Solution... Features Brochure. Suspended VAT Enabled. www.accsoft.

AccSoft ERP. Complex Business Tasks made easy with AccSoft ERP Solution... Features Brochure. Suspended VAT Enabled. www.accsoft. AccSoft ERP Complex Business Tasks made easy with AccSoft ERP Solution... Suspended VAT Enabled Sales Order Management Strict Credit Control & Debtors Management Post Dated & Return Cheque Management Sales

More information

Info Net LAMAR SOFTWARE, INC. Enterprise Resource Planning. www.lamarsoftware.com. Efficiency. Productivity. Flexibility

Info Net LAMAR SOFTWARE, INC. Enterprise Resource Planning. www.lamarsoftware.com. Efficiency. Productivity. Flexibility Efficiency LAMAR SOFTWARE, INC. Productivity Flexibility Connect your suppliers, vendors and business partners in real-time over the Internet with LAMAR Software s proven web-enabled ERP suite. Info Net

More information

INVENTORY MANAGEMENT

INVENTORY MANAGEMENT 7 INVENTORY MANAGEMENT MGT2405, University of Toronto, Denny Hong-Mo Yeh Inventory management is the branch of business management that covers the planning and control of the inventory. In the previous

More information

Agenda. TPPE37 Manufacturing Control. A typical production process. The Planning Hierarchy. Primary material flow

Agenda. TPPE37 Manufacturing Control. A typical production process. The Planning Hierarchy. Primary material flow TPPE37 Manufacturing Control Agenda Lecture 2 Inventory Management 1. Inventory System Defined 2. Inventory Costs 3. Inventory classification 4. Economic order quantity model 5. Newsboy problem 6. Reorder

More information

Seradex White Paper A newsletter for manufacturing organizations April, 2004

Seradex White Paper A newsletter for manufacturing organizations April, 2004 Seradex White Paper A newsletter for manufacturing organizations April, 2004 Using Project Management Software for Production Scheduling Frequently, we encounter organizations considering the use of project

More information

Factory Modeling. The Priority Enterprise Management System. Contents

Factory Modeling. The Priority Enterprise Management System. Contents The Priority Enterprise Management System Factory Modeling Contents Introduction...2 Parts...3 Bills of Materials and Revisions...3 Engineering Change Orders (ECO)...4 Part Routings...4 Operations...4

More information

MANAGEMENT ISSUES-MRP

MANAGEMENT ISSUES-MRP MANAGEMENT ISSUES-MRP MRP is a confusing term because it has two definitions, materials requirements planning and manufacturing resource planning. The first of these is the original meaning, used in the

More information

Release: 1. MEM30019A Use resource planning software systems in manufacturing

Release: 1. MEM30019A Use resource planning software systems in manufacturing Release: 1 MEM30019A Use resource planning software systems in manufacturing MEM30019A Use resource planning software systems in manufacturing Modification History Not Applicable Unit Descriptor Unit descriptor

More information

12 MRP and ERP. Dr. Ron Lembke

12 MRP and ERP. Dr. Ron Lembke 12 MRP and ERP Dr. Ron Lembke Historical Perspective MRP II Manufacturing Resource Planning ERP- Enterprise Resource Planning mrp material requirements planning MRP Crusade (1975) Material Requirements

More information

Chapter 16 Inventory Management and Control

Chapter 16 Inventory Management and Control Chapter 16 Inventory Management and Control We shall be interested primarily in the control of material in manufacturing. Actually, we are concerned with the control of the flow of material from a raw

More information

Going Lean the ERP Way

Going Lean the ERP Way Going Lean the ERP Way Somnath Majumdar Abstract: Lean concepts and techniques are widely used all over the world today to eliminate waste in all processes. These are applicable for all organizations,

More information

Cost Effective Implementation Of Erpnext Software In SMEs

Cost Effective Implementation Of Erpnext Software In SMEs Cost Effective Implementation Of Erpnext Software In SMEs Aniket Deshmukh 1, Dr. Arun Kumar 2, Amol Pai 3, Akshita Vaze 4 1 Maharastra, India 2 Maharastra, India 3 Maharastra, India. 4 Maharastra, India.

More information

June 2014 exam. (4CW) SME Cash and Working Capital. Instructions to students:

June 2014 exam. (4CW) SME Cash and Working Capital. Instructions to students: 1 June 2014 exam (4CW) SME Cash and Working Capital Instructions to students: 1. Time allowed is 3 hours and 10 minutes, which includes 10 minutes reading time. 2. This is a closed book examination. 3.

More information

Standard Work for Optimal Inventory Management

Standard Work for Optimal Inventory Management Standard Work for Optimal Inventory Management Putting practical science to work Presenter Edward S. Pound COO, Factory Physics Inc. 27 years in manufacturing JVC manufacturing engineering Honeywell (AlliedSignal)

More information

User Guide QAD Manufacturing

User Guide QAD Manufacturing QAD Enterprise Applications Enterprise Edition User Guide QAD Manufacturing Product Structures Routings and Work Centers Formulas and Processes Co-products and By-products Work Orders Shop Floor Control

More information

TU-E2020 ADVANCED OPERATIONS MANAGEMENT. Demand management Sales & Operations Planning Master Production Scheduling

TU-E2020 ADVANCED OPERATIONS MANAGEMENT. Demand management Sales & Operations Planning Master Production Scheduling TU-E2020 ADVANCED OPERATIONS MANAGEMENT Demand management Sales & Operations Planning Master Production Scheduling 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

More information

ORACLE MANUFACTURING MATERIAL PLANNING FOR PROCESS MANUFACTURING

ORACLE MANUFACTURING MATERIAL PLANNING FOR PROCESS MANUFACTURING ORACLE MANUFACTURING MATERIAL PLANNING FOR PROCESS MANUFACTURING KEY FEATURES MATERIAL PLANNING FOR PROCESS INCLUDES: Material and rough cut capacity planning Multi-level graphical pegging Advanced sourcing

More information

IT-375 using the 6 th Edition PRODUCTION AND INVENTORY CONTROL CHAPTER 1: INTRODUCTION TO MATERIALS MANAGEMENT

IT-375 using the 6 th Edition PRODUCTION AND INVENTORY CONTROL CHAPTER 1: INTRODUCTION TO MATERIALS MANAGEMENT IT-375 using the 6 th Edition PRODUCTION AND INVENTORY CONTROL CHAPTER 1: INTRODUCTION TO MATERIALS MANAGEMENT What is wealth? GDP = production = profits What is the source of wealth? The conversion process

More information

Technology Trends in MRO Inventory Management

Technology Trends in MRO Inventory Management June 2012 Technology Trends in MRO Inventory Management Technological Advances Technological advances are changing the dynamics in level of MRO inventory management and data management has a distinct focus

More information

Simulations can be run at item and group level giving users flexibility. In brief

Simulations can be run at item and group level giving users flexibility. In brief We all aim to optimize all kinds of aspects of our business, but we all also are aware it s very challenging to put reality in an optimization model. Nevertheless, we require insights which enable us to

More information

INDEPENDENT STUDY PAILIN UDOMSANTI

INDEPENDENT STUDY PAILIN UDOMSANTI 1 INDEPENDENT STUDY ERP Comparison : Production Planning and Control Module PAILIN UDOMSANTI An Independent Study submitted in Partial Fulfillment of the requirements For the Degree of Master of Engineering

More information

Strategic Framework to Analyze Supply Chains

Strategic Framework to Analyze Supply Chains Strategic Framework to Analyze Supply Chains 1 Andy Guo A Strategic Framework for Supply Chain Design, Planning, and Operation Part I: Understand the supply chain Part II: Supply chain performance Part

More information

Outline PRODUCTION/OPERATIONS MANAGEMENT P/OM. Production and Operations. Production Manager s Job. Objective of P/OM

Outline PRODUCTION/OPERATIONS MANAGEMENT P/OM. Production and Operations. Production Manager s Job. Objective of P/OM PRODUCTION/OPERATIONS MANAGEMENT Richard S. Barr Outline Production and Operations Systems Approach to P/OM Modeling Production Systems Course Topics 1 2 P/OM Production and Operations Production management

More information

Understand How and Where Computers are used in Manufacturing

Understand How and Where Computers are used in Manufacturing H. RESOURCE MANAGEMENT AND MANUFACTURING COMPUTING H1 Understand How and Where Computers are used in Manufacturing H1.1 List possible computer applications in manufacturing processes. Performance Objective:

More information

Seradex White Paper. Using Project Management Software for Production Scheduling. Software Selection Spectrum

Seradex White Paper. Using Project Management Software for Production Scheduling. Software Selection Spectrum Seradex White Paper A Discussion of Issues in the Manufacturing OrderStream Using Project Management Software for Production Scheduling Frequently, we encounter organizations considering the use of project

More information

OR topics in MRP-II. Mads Jepsens. OR topics in MRP-II p.1/25

OR topics in MRP-II. Mads Jepsens. OR topics in MRP-II p.1/25 OR topics in MRP-II Mads Jepsens OR topics in MRP-II p.1/25 Overview Why bother? OR topics in MRP-II p.2/25 Why bother? Push and Pull systems Overview OR topics in MRP-II p.2/25 Overview Why bother? Push

More information

MOS 3330 Test 2 Review Problems & Solutions

MOS 3330 Test 2 Review Problems & Solutions MOS 3330 Test 2 Review Problems & Solutions General Information Test date, time, location: See the course outline See also the course web site: dan.uwo.ca/courses/3330 Test time conflict (due to having

More information

Production and Inventory Management

Production and Inventory Management Production and Inventory Management ARNOLDO C. HAX Massachusetts Institute of Technology DAN CANDEA Polytechnic Institute of Cluj-Napoca TECHNISCHE HOCHSCHULE DARMSTADT FoaiberGirii 1 Gesam th ibl iot

More information

INVENTORY MANAGEMENT. 1. Raw Materials (including component parts) 2. Work-In-Process 3. Maintenance/Repair/Operating Supply (MRO) 4.

INVENTORY MANAGEMENT. 1. Raw Materials (including component parts) 2. Work-In-Process 3. Maintenance/Repair/Operating Supply (MRO) 4. INVENTORY MANAGEMENT Inventory is a stock of materials and products used to facilitate production or to satisfy customer demand. Types of inventory include: 1. Raw Materials (including component parts)

More information

DEVELOPMENT OF LOW COST MRP SOFTWARE FOR A MANUFACTURING,

DEVELOPMENT OF LOW COST MRP SOFTWARE FOR A MANUFACTURING, KOLEJ UNIVERSITI TEKNIKAL KEBANGSAAN MALAYSIA DEVELOPMENT OF LOW COST MRP SOFTWARE FOR A MANUFACTURING, PROCESS Thesis submitted in accordance with the partial requirements of the Kolej Universiti Teknikal

More information

PARADIGMS THAT DRIVE COSTS IN MANUFACTURING. The whole purpose of a business enterprise is pretty simple to make a profit by selling

PARADIGMS THAT DRIVE COSTS IN MANUFACTURING. The whole purpose of a business enterprise is pretty simple to make a profit by selling PARADIGMS THAT DRIVE COSTS IN MANUFACTURING The whole purpose of a business enterprise is pretty simple to make a profit by selling products or services to persons who desire those particular goods or

More information

Electronics Manufacturer MCE, Inc. Relies On Fitrix ERP To Fuel Growth

Electronics Manufacturer MCE, Inc. Relies On Fitrix ERP To Fuel Growth Electronics Manufacturer MCE, Inc. Relies On Fitrix ERP To Fuel Growth Implementation of management and planning solution increases productivity and reduces costs August 7, 2013. Our continued growth hinged

More information

By: ATEEKH UR REHMAN 12-1

By: ATEEKH UR REHMAN 12-1 12 Inventory Management By: ATEEKH UR REHMAN 12-1 Inventory Management The objective of inventory management is to strike a balance between inventory investment and customer service 12-2 Importance of

More information

Project Materials Control

Project Materials Control Project Management the smart way Project Materials Control QMS Materials Management System for Projects Track Materials with QMS Introducing QMS In an ideal world, materials control should be easy. Once

More information

for Sage 100 ERP Work Order Overview Document

for Sage 100 ERP Work Order Overview Document for Sage 100 ERP Work Order Document 2012 Sage Software, Inc. All rights reserved. Sage Software, Sage Software logos, and the Sage Software product and service names mentioned herein are registered trademarks

More information

Jakarta, 16 October 2012. Dr. Sonny Irawan

Jakarta, 16 October 2012. Dr. Sonny Irawan How to Manage KPI to become Effective Enterprise Jakarta, 16 October 2012 Dr. Sonny Irawan ENTERPRISE EFFECTIVENESS Definition where every business process is working at peak efficiency and perfectly aligned

More information

Plan forecast optimise

Plan forecast optimise Plan forecast optimise Don t Forecast the future, CONTROL IT Reflex Business Forecasting breaks new ground. This is sales forecasting software with unique features that allow you to create real value for

More information

Strategic Business Analysis

Strategic Business Analysis BACKGROUND The XYZ Corporation is a $50,000,000 per year New England producer of metal cutting equipment for industrial and consumer use. The company was founded in 1957, entrepreneurial led at first and

More information

Bill of Manufacturing Guide

Bill of Manufacturing Guide Note: To change the product logo for your ow n print manual or PDF, click "Tools > Manual Designer" and modify the print manual template. Contents 3 Table of Contents 1 Introduction 4 2 Why You Need a

More information

Chapter 7 Production Planning

Chapter 7 Production Planning Production Planning and Control Chapter 7 Production Planning Professor JIANG Zhibin Dr GRANG Na Department of Industrial Engineering & Management Shanghai Jiao Tong University Contents Introduction Master

More information

Business Proposal: Recommendation for Implementation of the SAGE Enterprise Suite. Debbie Miksiewicz. Elaine Kithcart BSA 375. Mr.

Business Proposal: Recommendation for Implementation of the SAGE Enterprise Suite. Debbie Miksiewicz. Elaine Kithcart BSA 375. Mr. Business Proposal: Recommendation for Implementation of the SAGE Enterprise Suite Debbie Miksiewicz Elaine Kithcart BSA 375 Mr. Andrew Mahaney April 17, 2011 Business Proposal 2 Table of Contents Introduction

More information

Chapter 14 Inventory Management

Chapter 14 Inventory Management Chapter 14 Inventory Management Overview Nature of Inventories Opposing Views of Inventories Fixed Order Quantity Systems Fixed Order Period Systems Other Inventory Models Some Realities of Inventory Planning

More information

Ud Understanding di inventory issues

Ud Understanding di inventory issues Lecture 10: Inventory Management Ud Understanding di inventory issues Definition of inventory Types of inventory Functions of inventory Costs of holding inventory Introduction to inventory management Economic

More information

Management Information System Prof. Biswajit Mahanty Department of Industrial Engineering & Management Indian Institute of Technology, Kharagpur

Management Information System Prof. Biswajit Mahanty Department of Industrial Engineering & Management Indian Institute of Technology, Kharagpur Management Information System Prof. Biswajit Mahanty Department of Industrial Engineering & Management Indian Institute of Technology, Kharagpur Lecture - 02 Introduction Part II Welcome to all of you

More information

Production Planning Solution Techniques Part 1 MRP, MRP-II

Production Planning Solution Techniques Part 1 MRP, MRP-II Production Planning Solution Techniques Part 1 MRP, MRP-II Mads Kehlet Jepsen Production Planning Solution Techniques Part 1 MRP, MRP-II p.1/31 Overview Production Planning Solution Techniques Part 1 MRP,

More information

Operations and Supply Chain Management Prof. G. Srinivasan Department of Management Studies Indian Institute of Technology Madras

Operations and Supply Chain Management Prof. G. Srinivasan Department of Management Studies Indian Institute of Technology Madras Operations and Supply Chain Management Prof. G. Srinivasan Department of Management Studies Indian Institute of Technology Madras Lecture - 41 Value of Information In this lecture, we look at the Value

More information

An investigation into production scheduling systems

An investigation into production scheduling systems Computer Science Kjell Olofsson An investigation into production scheduling systems D-dissertation (10 p) 2004:06 This report is submitted in partial fulfillment of the requirements for the Master s degree

More information

MED NITC MANUFACTURING REQUIREMENTS PLANNING (MNMRP) SOFTWARE PACKAGE

MED NITC MANUFACTURING REQUIREMENTS PLANNING (MNMRP) SOFTWARE PACKAGE MED NITC MANUFACTURING REQUIREMENTS PLANNING (MNMRP) SOFTWARE PACKAGE A tool for material planning and scheduling of components and subassemblies of assembled products A tool useful for MSME Dr. V. Madhusudanan

More information

Project and Production Management Prof. Arun Kanda Department of Mechanical Engineering Indian Institute of Technology, Delhi

Project and Production Management Prof. Arun Kanda Department of Mechanical Engineering Indian Institute of Technology, Delhi Project and Production Management Prof. Arun Kanda Department of Mechanical Engineering Indian Institute of Technology, Delhi Lecture - 38 Basic Inventory Principles In today s lecture we are going to

More information

Chapter 1. The Production Paradigm

Chapter 1. The Production Paradigm Chapter 1 The Production Paradigm Evolution of Production Systems Ancient Systems basic planning, organizations and control specialization of labor Feudal Systems hierachical system (delegation) land and

More information

BSCM Sample TEST. CPIM(Certified In Production & Inventory Management) - 1 -

BSCM Sample TEST. CPIM(Certified In Production & Inventory Management) - 1 - BSCM Sample TEST. 1. Which of the following demand fulfillment approaches typically provides the longest delivery time? A) Engineer-to-order. B) Make-to-order. C) Assemble-to-order. D) Make-to-stock. 2.

More information

BILL OF MATERIALS. System Settings. Jiwa Help Documentation

BILL OF MATERIALS. System Settings. Jiwa Help Documentation BILL OF MATERIALS A comprehensive Bill of Materials module has been implemented in 6.04.09 and enhanced and refined in additional versions. Bill Maintenance forms are created that detail the components,

More information

Planning Optimization in AX2012

Planning Optimization in AX2012 Planning Optimization in AX2012 Streamline your manufacturing operations with Master Planning and Forecasting Kevin Cosman 11 June 2013 About the Presenter Kevin Cosman, Senior Solutions consultant with

More information