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MRP glossary TOP > The functional roles an MRP production control system performs > Material Requirements Planning

Material Requirements Planning

shizai_zu.gif Item Logistics Requirements P/S Production Structure P/M B/M Bill of Materials Regeneration Regeneration Net Change Net Change Order Timing Damper Quantity Change Damper Fixed Allocation Spare Allocation Activity Chain Level Table Low Level Code Bucket Order Cancel Cancel De-expedite De-expedite Expedite Expedite Upper-level Order Parent Order Order Relationship Order Status Full Pegging Single Level Pegging Single Pegging Yield Failure Rate Physical Unit Requirements Bill of Materials Calculating Requirements Single Level Explosion Extraction Single Level Requirements Explosion Requirements Explosion Lead Time Lead Time Lead Time Planned Release Date Delivery Date Calculating Variable Lead Time Calculating Fixed Lead Time Lead Time Off-set Lead Time Off-set Calculating Lead Time Surplus Rounding Unit Rounding of Fractions Part Period Balancing FPR Fixed Period Requirements LFL Lot for Lot FOQ Fixed Order Quantity EOQ Economic Lot Size Economic Lot Size Lot Sizing Lot Sizing Released Order Available Stock Calculating Net Requirements Material Planning Allocation Gross Requirements Calculating Gross Requirements Dependent Demand Items Independent Demand Items Dependent Demand Independent Demand Damper Allocation Level by Level MRP List Recommendation Order Pegging Requirements Material Requirements Planning MRP Demand Characteristics Material Planning
Work Descriptions:
It requires a number of items including assemblies, parts, and raw materials to produce a product, and each operation is individually performed by materials, purchasing, or manufacturing (processing and assembling) division, or each subcontractor.
Problems:
The problems of material planning are as follows:
1. The purchasing and manufacturing schedules are not controlled in a unified manner, making the change or rescheduling difficult to make.
2. In spite of much inventory, the loss in products often occurs and the persons in charge of procurement are too busy with the arrangement.
3. The appropriate lead time is not set and the explicit delivery date is not specified, which may lead to the loss in products and excesseive inventory.
4. It take too much time to place an order after receiving the production plan, making the actual manufacturing time shorter.
Funtions:
How much/many (requirements) of what (item) is needed by when (delivery date) is calculated, and the logistics for purchasing and manufacturing them are performed. The data of assemblies, parts, and materials, which are planned by MRP, are sent to the purchasing division (in case of purchased parts and subcontact goods) of the manufacturing planning division (in case of manufactured item).

Reference：JIT Business Research Mr. Hirano Hiroyuki

Demand Forecast | The functional roles an MRP production control system performs