MATERIAL

REQUIRMENT
PLANNING

PRESENTED TO PROF. R. MUKUNDAN

Name Roll No

Wasim Dalvi 12

Dimple Karkera 21

Saima Khan 27

Abdul Basith Shaikh 43

Praful Uberoi 59
 DEFINITION
O Material requirement planning is a technique
for determining the quantity and timing for the
acquisition of dependent demand items needed
to satisfy master production schedule
requirements.
 OBJECTIVES
O Inventory reduction

O Reduction in manufacturing and delivery lead

time

O Realistic delivery commitments

O Increased efficiency
 WHAT CAN MRP DO?
O Reduce Inventory Levels O Reduce Purchasing Cost
O Reduce Component O Improve Production
Shortages Schedules
O Improve Shipping O Reduce Manufacturing
Performance Cost
O Improve Customer O Reduce Lead Times
Service O Less Scrap and Rework
O Improve Productivity
O Higher Production
O Simplified and Accurate
Quality
Scheduling
 WHAT CAN MRP DO?
O Improve O Reduce Overtime
Communication O Improve Supply
O Improve Plant Schedules
Efficiency O Improve
O Reduce Freight Calculation of
Cost Material
O Reduction in Requirements
Excess Inventory O Improve
Competitive
Position
 HOW IT WORKS
INPUTS

Material
Requirement
Planning

Master
Bill of Inventory
Production
Material Status File
Schedule
Master Production Schedule
O A series of time phased quantities for each
item that a company produces

O Developed from customer orders or from

forecast of demand

O Determines specific component requirement

 Inventory Status File
O Gives complete and up to date information on
the on hand quantities, gross requirement,
scheduled receipts and planned order releases

O Includes Planning Information such as lot

sizes, lead time etc.
 Bill of Material
O Identifies how each end product is
manufactured

O Specifies subcomponents, their sequence and

their end quantity

O Information is obtained from product design

documents, work flow analysis & other
standard manufacturing information.
 HOW IT WORKS
OUTPUT

Material Requirement Planning

Order Release Order Planned

Requirements(Orders to
be Placed) Rescheduling Orders(Future)
 ADVANTAGES
O Helps in production planning and scheduling.

O Minimize inventory level and associated

carrying cost

O Keeps a track on material requirements

O Determines the most economical lot size for

orders
O Computes appropriate level of safety stock

O Helps in determining various process time &

total production time of the product

O Helps in planning future capacity needs

 DISADVANTAGES
O MRP relies on accurate input information

O Requires up to date record

O Costly to implement

O Resistance from employees

HUBBELL LIGHTING CASE
O Manufactures Industrial Lighting Products
O Good-Quality Products
O Poor at Meeting Due Dates
O Work is Specialized for Each Customer
O Job Shop Environment
O Complex Products
HUBBELL LIGHTING CASE
Before MRP After MRP
Implementation Implementation

O Less than 75% of O 97% of orders

orders completed on completed on time
time O 2% of orders
completed with 1 to 2
days after due date
 SUMMARY
MRP is a…..
O Computerized Inventory Control
O Production Planning System
that…..
O Schedules Component Items as Needed
which will…..
O Track Inventory and…..
O Help you in many other aspects of business