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Material Requirement Planning Basic term Prepared by; Muhammad Fahmi Md Idris

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Page 1: Tutorial MRP

Material Requirement Planning

Basic term

Prepared by; Muhammad Fahmi Md Idris

Page 2: Tutorial MRP

Product Structure TreeAli producing Bicycle for Amen-Bshop and he expected to deliver 10 units of bicycles in week 1 to Amen-Bshop. The basic components used to assemble a set of bicycle are 1 unit of handle bars and 1 unit of frame, assemble with 2 units of wheels.

Page 3: Tutorial MRP

Bill of Material

Component Unit Quantity Total Q’tty (Week 1)

Bicycle (B) 1 1 10

Handle Bars (H) 1 1 10

Frame Assembly (FA) 1 1 10

Frame (F) 1 1 10

Wheels (W) 2 2 20

Prepare a BoM of each component for each order of Bicycle component

Page 4: Tutorial MRP

Time-phase assembly chart

Refer lead time to draw time-phase assembly chart

1)

ComponentLead Times(Minutes)

Bicycle (B) 1

Handle Bars (H) 1

Frame Assembly (FA) 2

Frame (F) 2

Wheels (W) 3

Page 5: Tutorial MRP

Time-phase assembly chart

Start = Right Left 2)

ComponentLead Times(Minutes)

Bicycle (B) 1

Handle Bars (H) 1

Frame Assembly (FA) 2

Frame (F) 2

Wheels (W) 3

Page 6: Tutorial MRP

Time-phase assembly chart

Draw the line 3)

B

ComponentLead Times(Minutes)

Bicycle (B) 1

Handle Bars (H) 1

Frame Assembly (FA) 2

Frame (F) 2

Wheels (W) 3

Page 7: Tutorial MRP

Time-phase assembly chart

B

H

FA

ComponentLead Times(Minutes)

Bicycle (B) 1

Handle Bars (H) 1

Frame Assembly (FA) 2

Frame (F) 2

Wheels (W) 3

1 min

2 min

1 min

Page 8: Tutorial MRP

Time-phase assembly chart

1 2 3 4 5 6Component

Lead Times(Minutes)

Bicycle (B) 1

Handle Bars (H) 1

Frame Assembly (FA) 2

Frame (F) 2

Wheels (W) 3

B

H

FA

W

F

Time-Phased Assembly Chart for BWith 6-Minutes Time Horizon

Page 9: Tutorial MRP

Item : X Duration

Duration (Days/weeks/months)

1 2 3 4 5 6

Gross Requirement

Scheduled Receipts

On-Hand Inventory

Net Requirement

Planned-Order Receipt

Planned-Order Release

Planned-Order ReceiptThe quantity expected to be received by the beginning of the period

Planned-Order ReleasePlanned amount to order in each time period

Net requirementThe actual amount needed in each time period

Gross requirementTotal expected amount of material/component during each time period

Scheduled ReceiptOpen orders scheduled to arrive from vendors/suppliers

On-Hand InventoryThe expected amount of inventory that will be on hand

MRP Schedules

Page 10: Tutorial MRP

Tutorial MRPNO. 3

In the MRP planning schedule for steel reinforcement shown in Table 1 below, indicate the correct net requirement, planned order receipts and planned order releases to meet the shown gross requirements.Lead time = 1 weeks

Item : Steel Reinforcement Week

Week No. 1 2 3 4 5 6

Gross Requirement 75 50 60

Scheduled Receipts 40

On-Hand Inventory

Net Requirement

Planned-Order Receipt

Planned-Order Release

Page 11: Tutorial MRP

Item : Steel Reinforcement Week

Week No. 1 2 3 4 5 6

Gross Requirement 75 50 70

On-Hand Inventory 40

Net Requirement

Planned-Order Receipt

Planned-Order Release

Tutorial MRPNO. 3

Lead time = 1 weeks

Page 12: Tutorial MRP

Item : Steel Reinforcement Week

Week No. 1 2 3 4 5 6

Gross Requirement 75 50 70

On-Hand Inventory 40 - - - - -

Net Requirement 75

Planned-Order Receipt

Planned-Order Release

Tutorial MRPNO. 3

Lead time = 1 weeks

Page 13: Tutorial MRP

Item : Steel Reinforcement Week

Week No. 1 2 3 4 5 6

Gross Requirement 75 50 70

On-Hand Inventory 40 - - - - -

Net Requirement 75

Planned-Order Receipt 35

Planned-Order Release

Tutorial MRPNO. 3

Lead time = 1 weeks

Page 14: Tutorial MRP

Item : Steel Reinforcement Week

Week No. 1 2 3 4 5 6

Gross Requirement 75 50 70

On-Hand Inventory 40 - - - - -

Net Requirement 75

Planned-Order Receipt 35

Planned-Order Release 35

Tutorial MRPNO. 3

Lead time = 1 weeks

Page 15: Tutorial MRP

Item : Steel Reinforcement Week

Week No. 1 2 3 4 5 6

Gross Requirement 75 50 70

On-Hand Inventory 40 - - - - -

Net Requirement 75 50

Planned-Order Receipt 35

Planned-Order Release 35

Tutorial MRPNO. 3

Lead time = 1 weeks

Page 16: Tutorial MRP

Item : Steel Reinforcement Week

Week No. 1 2 3 4 5 6

Gross Requirement 75 50 70

On-Hand Inventory 40 - - - - -

Net Requirement 75 50

Planned-Order Receipt 35 50

Planned-Order Release 35

Tutorial MRPNO. 3

Lead time = 1 weeks

Page 17: Tutorial MRP

Item : Steel Reinforcement Week

Week No. 1 2 3 4 5 6

Gross Requirement 75 50 70

On-Hand Inventory 40 - - - - -

Net Requirement 75 50

Planned-Order Receipt 35 50

Planned-Order Release 35 50

Tutorial MRPNO. 3

Lead time = 1 weeks

Page 18: Tutorial MRP

Item : Steel Reinforcement Week

Week No. 1 2 3 4 5 6

Gross Requirement 75 50 70

On-Hand Inventory 40

Net Requirement 75 50 70

Planned-Order Receipt 35 50 70

Planned-Order Release 35 50 70

Lead time = 1 weeks

Tutorial MRPNO. 3