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LEARNING OBJECTIVES
Materials planning in assembly line process. Factors that influence the requirement of materials. What is MRP Process? Logic in material planning. Scheduling and material planning.
Hierarchical levels of components required for assembly of electric rice cooker Electric Rice Cooker
Level 0
Lid (1)
Chord (1)
Level 1
Nut (1)
Knob (1)
Level 2 Plug Electric Plug Connection Wire (1) Electric Wire to cooker (1) (1)
Level 3
Case Study: Bill of materials for items at different levels of planning for electric rice cooker Level Item Pcs required for 1 pc of the level item Total # of Pcs required for the quantity of item at level 0 100 Pcs 1 1 100 100
Level 0
Level 1
Main body
Hot Plate Measuring cup
1
1 1
100
100 100
Level
Item
Nut Knob Pilot lamp (warm) Pilot lamp (cook) Switch button Level 2 Lifting support Plug connection to cooker Electric wire
1 1 1 1 1 2
1 1
100 100
100
5
Level
Item
Screw
Level 3 Nut
4
4
800
800
11
12
13
14
15
16
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MRP SYSTEM
MRP systems involve all levels in the organization and are effective planning and control system. The frequency of running MRP programs is every week and the report takes care of 8 to 12 weeks horizon. It is very important that the data in MRP system has been entered correctly and is reliable.
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Production Plan
Resource
Plan
Bill of Materials
Master Production
Plan
Materials Plan
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If the material is arriving on the scheduled time, consider next item. But, if the answer is no, consider change in production schedule. If it is possible to change the production schedule, then adjust the production schedule. But if the answer is no to change the production schedule, then the material is to be arranged from alternate source.
The material planning logic for each item is explained in the next slide.
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No
If the material arriving as per schedule time? Is sufficient quantity on order?
Yes
No Revise Production Schedule If change in Production schedule possible? No Arrange material from alternate source Yes
No
Yes
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MPS works out the quantity and timing of the requirement of end items.
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