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Capacidad?
Podemos producir 500 unidades de A, 600 B y 400 de la C a la semana durante el prximo mes?
Objetivo
Producto
SKU level
(stock keeping unit)
Horizonte
12 a 15 meses
Alrededor 3 meses
Revisin
1 Mes
1 Semana
When to Order ?
Three approaches
Reorder
REACTIVE SYSTEMS
PROACTIVE SYSTEMS
Establish and meet delivery dates Determine launch dates for orders Optimize the use of available capacity
Purch.
Operations
Operations
Systemic Approach
Developing a MPS
Identification of individual products. Development of an MPS grid for each product in real units according to the available data (forecast, committed orders, inventory levels, lot sizes, lead times) and the specified constraints.
Developing a MPS
Periods
Forecast Customer Orders Proj. on-hand Inv. MPS - Order Receipt MPS - Order Release
1 75 80 200 120
2 3 85 80 60 55 35 55 100 100
Forecast of the demand for the products with independent demand Firm orders received from the customers for period i. Projected on-hand Inventory (i) = Projected on-hand inv. (i - 1) + Planned production (i) - Max (Forecast (i) , Customer orders (i) )
Developing a MPS
1) 2) Forecast for products with an independant demand Committed customer orders
Product X12DE Lot Size 200 Lead Time 1 Beginning Inventory 410
2a) Identify the Max between forecast and customer orders 3) Planned order receipts for each period:
Projected inventory
Planned receipts Planned releases
4) Projected on-hand inventory (i) = beginning inventory (i - 1) + planned order receipts (i) - Max (forecast (i) , customer orders (i) )
2-508-97 Production and Operations Management
5) Planned order releases shifted back the length of the lead time
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Forecast Customer Orders Projected on-hand inv. 100 Planned Order Receipts Planned Order Releases
1 50 25
2 45 60
3 45 15
4 50 55
5 50 25
6 50 35
7 40
8 40
9 40
10 50
Product A Beginning Inventory = 100 Lot Size: 100 units Lead Time: 1 week 1 equivalent unit
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Forecast Customer Orders Proj. on-hand inv. 300 Planned Order Receipts Planned Order Releases
1 60 35
2 120 150
3 80 60
4 40 30
5 30 25
6 50 35
7 20
8 20
9 20
10 30
Product B Beginning Inv. = 300 Lot Size : 100 units Lead Time: 1 week 2 equivalent units
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13
0 0 0
0 0 0
0 0 0
0 0 0
100 0 100
0 0 0
0 0 0
Total capacity is 200 equivalent units per period. Establish the final MPS for each product. Because the total planned order releases of products A and B
is superior to 200 units in periods 3 and 5, we must move the release of one of the two articles to periods 2 and 4.
We decide, for example, to move the release of product A to periods 2 and 4. We must then complete the final plan for both products.
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Forecast Customer Orders Proj. on-hand inv. 100 Planned Order Receipts Planned Order Releases
7 40
50 0 0
8 40
9 40
10 50
20 0 0
10 70 0 100 100 0
Planned Order Release is moved from period 3 to period 2. Consequently, Planned Order Receipts are moved from period 4 to period 3. Projected on-hand inventories must be recalculated to account for the changes.
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Forecast Customer Orders Proj. on-hand inv. 300 Planned Order Receipts Planned Order Releases
5 30 25 40 0 0
6 7 50 20 35 90 70 0 100 100 0
8 20 50 0 0
9 20 30 0 0
10 30 0 0 0
Since weve made no changes to the planned order releases of prodcut B, le preliminary and final plans are identical.
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Reading
MPS: Pages 466-473
Not:
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Demand Characteristics
Independent demand Dependent demand
100 tables
Continuous demand
400 No. of tables 400 No. of tables 300 200 100
Discrete demand
300
200 100
1 2 3 Week 4 5
M T W Th F
M T W Th F
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Quantity
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Objectives of MRP
Calculate with precision the quantities of components, parts and raw material that must be produced or purchased in order to realize the MPS HOW MANY ? To determine when to release production or to place the orders in order to receive the required units at the right moment WHEN ?
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Forecasts
MPS
Customer Orders
MRP
- Stocks on hand - Safety stocks - Lot sizes - Economic Order Quantities - Lead time
Bill of Material
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Level 1
Level 2
Component
For each product X we need 3 Y and 2 Z For each product Z we need 2 W and 1 Y
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Problems
S&H (2007) p.515 #3 - S&H (2004) p.628 #3
Item
Lead Time
Amount on Hand
Direct Components
End
L C K B J G H
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1
2 3 3 2 3 3 2
0
10 15 20 30 30 5 0
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MRP Matrix
Note: The book from Stevenson shows the projected inventory at the beginning of the period, this is not the usual way to do it, so we will always show the projected inventory at the END of the period
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Multiplying the quantity of the planned order release(s) of the parent(s) of the item by the quantity required as per the BOM for the specific parent-component relationship(s).
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Example
A company is manufacturing several office supply items among which we have:
Clipboard Lapdesk etc.
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Product Structure
Clipboard
Pivot (1)
Spring (1)
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Clipboard
Level 0
Pressboard (1)
Rivets (2)
Level 1
Pivot (1)
Spring (1)
Level 2
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Clipboard
Level 0
Pressboard (1)
Rivets (2)
Level 1
Lapdesk
Level 0
Pressboard (2)
Trim (3)
Beanbag (1)
Glue (4 oz)
Level 1
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M.P.S.
100
2
100
PERIOD 3 50 PERIOD 3
100
4 5
Planned Order Releases ITEM: PRESSBOARD LLC: 1 LOT SIZE: MIN 100 LT: 1 Gross Requirements Scheduled Receipts Projected on Hand 150 Net Requirements Planned Order Receipts Planned Order Releases
M.R.P.
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M.P.S.
Planned Order Releases ITEM: LAPDESK LOT SIZE: MULT 50 LLC: 0 LT: 1
x1
1 50 2
x1
4
x1
5
Planned Order Releases ITEM: PRESSBOARD LLC: 1 LOT SIZE: MIN 100 LT: 1 Gross Requirements Scheduled Receipts Projected on Hand 150 Net Requirements Planned Order Receipts Planned Order Releases
x2
1 100
x2
5 0
M.R.P.
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M.P.S. M.R.P.
Planned Order Releases ITEM: PRESSBOARD LLC: 1 LOT SIZE: MIN 100 LT: 1 Gross Requirements Scheduled Receipts Projected on Hand 150 Net Requirements Planned Order Receipts Planned Order Releases
100
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Planned Order Report PERIOD ITEM Clipboard Lapdesk Pressboard 1 2 100 50 100 150 3 100 50 100 4 100 5
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Product A
Item Product A MPS Sales Forecast Customer Orders Projected inventory Order Receipts Order releases Item Product Z
Sub.-Ass. B (2)
Component C (1)
135
LT 1 1 25 30 105
2 25 20 80
3 25 15 55
4 25 10 30
5 25 5 200
6 25 5 180 200
Component C (3)
Component D (4)
MPS Sales Forecast Customer Orders Projected inventory Order Receipts Order releases
135
LT 2 1 30 35 100
2 30 20 70
3 30 15 40 500
4 30 20 10
5 30 10 480 500
6 30 5 450
Product Z
Item Sub-ass. B MRP Gross Requirements Gross Requirements Gross Req. Tot. Projected inventory Net Requirements Planned Order Receipts Planned Order Releases Item Component C MRP Gross Requirements Gross Requirements Gross Req. Tot. Projected inventory Net Requirements Planned Order Receipts Planned Order Releases Item Component D MRP Gross Requirements Gross Requirements Gross Req. Tot. Projected inventory Net Requirements Planned Order Receipts Planned Order Releases
Sub.-Ass. B (3)
Component D (2)
200
LT 2 1 0 0 0 200
2 0 0 0 200
4 0 0 0 200
6 0 0 0 1 300
Component C (3)
Component D (4)
Sub-ass. B 4 600
2 0 0 0 100
4 0 0 0 100
6 0 0 0 4 400
4 500
Sub-ass. B 6500
2 0 0 0 500
4 0 0 0 3 500
5 0 0 0 3 500
6 0 0 0 3 500
10 000
Month 0 1 2 3 4 5
Gross Requirements
Lot-for-lot (L4L) ordering policy Net Requirements Planned order receipts Projected on-hand inventory Fixed-size lot ordering policy (Ex: 500) Net Requirements Planned order receipts Projected on-hand inventory Minimum order quantity (Ex: Min 250) Net Requirements Planned order receipts Projected on-hand inventory Multiple order quantity (Ex: X100) Net Requirements Planned order receipts Projected on-hand inventory Economic order quantity (ex: 700; Ann. Dem: 4200) Net Requirements Planned order receipts Projected on-hand inventory Periodic order quantity (2 months) Net Requirements Planned order receipts Projected on-hand inventory
75
75 75 0
350
350 350 0
200
200 200 0
750
750 750 0
1000
1000 1000 0
75 500 425
75
75 250 175
175 250 75
625 625 0
1000 1000 0
75 100 25
325 400 75
125 200 75
675 700 25
975 1000 25
75 700 625
275
75
675 700 25
75 425 350
1000 1000 0
B
Lead Time = 2 periods
C
Lead Time = 3 periods
4 periods
D(2)
Lead Time = 2 periods
E
Lead Time = 4 periods
7 periods 9 periods
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LT = 2 periods
LT = 4 periods
D(2)
LT = 3 periods
LT = 2 periods
Periods
A B C D E Assembly Purchase Assembly Purchase Purchase LT 2 2 3 2 4 2 3 4 5 6 7 100 100 8 100 9 100 10 100
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MPS
Level 0
Planned Order Release Gross Requirements Net Requirements Planned Order Receipt Planned Order Release
Bill of materials
Level 1
Lead time
Level 2
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Readings
Review problems:
To be announced
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