Materials Requirements Planning is a process that references several key business activities as well as information across your business including all levels in the Bill of Materials, sales forecasts, sales orders and inventory. We can determine exactly what and when materials are required, in order to produce the most timely and competitively priced products and services for customers.
The MRP controller is responsible for all activities related to specifying the type, quantity, and time of the requirements, in addition to calculating when and for what quantity an order proposal has to be created to cover these requirements. The MRP controller needs all the information on stocks, stock reservations, and stocks on order to calculate quantities, and also needs information on lead times and procurement times to calculate dates.
Here illustrated the basic aspects of MATERIAL REQUIREMENT PLANNING.
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Tyre manufacturing organizations face the same daily practical problem - that customers want products to be available in a shorter time than it takes to make them. This means that some level of planning is required. Tyre companies need to control the types and quantities of materials they purchase, plan which type of tyre products are to be produced and in what quantities and ensure that they are able to meet current and future customer demand, all at the lowest possible cost. Making a bad decision in any of these areas will make the company lose money. A few examples are given below:
· If one tyre company purchases insufficient quantities of latex used in tyre manufacturing, or the wrong item such as sulphur or carbon, they may be unable to meet contracts to supply products by the agreed date.
· If that company purchases excessive quantities of latex, money is being wasted - the excess quantity ties up cash while it remains as stock and may never even be used at all. However, some purchased items will have a minimum quantity that must be met, therefore, purchasing excess is necessary.
· Beginning production of an order at the wrong time can cause customer deadlines to be missed.
MATERIAL REQUIREMENT PLANNING is a tool to deal with these problems. It provides answers for several questions:
· What items are required?
· How many are required?
· When are they required?
The major benefits of MATERIAL REQUIREMENT PLANNING is mentioned below
Key Benefits
• Plan production automatically and accurately
• Efficiently manage investment in expensive inventory
• Produce timely and competitively priced products
• Respond on the fly to production planning change requirements
• Automatically suggest and generate Factory & Purchase orders
• Provides accurate planning of inventory purchasing
• Manage requirements and forecasts by selective categories (trees)
• Forecast accurately using historical & seasonal data
• Manual adjustments allow for unforeseen situations
• Manage the manufacturing process with visual planning board
• Analyse factory order scheduling
The goal of materials management is to consolidate and efficiently handle core services. It creates truck deliveries and service vehicle routes that reduce conflicts for vehicles and pedestrians. Delivery sites and loading docks are more effective and reduce redundancy. Cost is reduced when it comes to solid and hazardous waste removal, storage, and recycling. Utility infrastructure and service equipment relocation can improve aesthetics.
The milestone in the progress of human being is the invention of tyres. Now a days Tyre manufacturing industry is the day to day developing one. The profit of the industry relies upon the overall management of production and distribution of tyres, to the customer needs. So we should make special attention to the material management during production.
As we are the manufacturer of tyres we should produce different varieties of tyres for the following types of vehicles
Ø Motor Bike
Ø Scooters
Ø Cars
Ø Buses
Ø Trucks etc.
IMPORTANCE OF MRP
It is important to prepare a detailed material requirement planning (M.R.P) for the production of tyres for above said vehicles. The production process is concerned with transforming a range of inputs into those outputs that required by the market. The MRP process explodes the bills of material, usually overnight or on weekends, and develops the requirements for material. The material requirements feed the capacity planning module which tests the schedule developed by MRP against current capacity.
The tyre manufacturing industry starts its functioning by having latex. The latex is combined with carbon, oil, sulphur and other chemicals and undergoes a number of processes, many of which are industrial secrets! All this produces black sheets of rubber. The rubber sheets are heated and thin lengths of nylon, polyester or even steel are woven into them to give them rigidity. These woven sheets form the main basis of the tyre.
The inner rim of the tyre is called the "bead ring" and is produced separately to the main tread of the tyre. The bead rings are formed by coating thick wires with the rubber mixture and coiling them up around a template.
The woven sheets and bead rings are joined together and finally the tread pattern of the tyre moulded on top. The tyre produced is not yet complete and is called a "green" tyre. The green tyre is then Vulcanized by applying heat and pressure in special machines to produce the finished tyre.
We can use material requirement planning to plan the materials for tyre manufacturing.
MRP can be applied both to items that are purchased from outside suppliers and to sub-assemblies, produced internally, that are components of more complex items.
The data that must be considered include:
· The end item (or items) being created. This is sometimes called Independent Demand or Level “0 on BOM (Bill of materials).
· How much is required at a time.
· When the quantities are required to meet demand.
· Shelf life of stored materials.
· Inventory status records. Records of net materials available for use already in stock (on hand) and materials on order from suppliers.
· Bills of materials. Details of the materials, components and sub-assemblies required to make each product.
· Planning Data. This includes all the restraints and directions to produce the end items. This includes such items as: Routings, Labor and Machine Standards, Quality and Testing Standards, Pull/Work Cell and Push commands, Lot sizing techniques (i.e. Fixed Lot Size, Lot-For-Lot, and Economic Order Quantity), Scrap Percentages, and other inputs.
Outputs
There are two outputs and a variety of messages/reports:
· Output 1 is the "Recommended Production Schedule" which lays out a detailed schedule of the required minimum start and completion dates, with quantities, for each step of the Routing and Bill Of Material required to satisfy the demand from the Master Production Schedule (MPS).
· Output 2 is the "Recommended Purchasing Schedule". This lays out both the dates that the purchased items should be received into the facility AND the dates that the Purchase orders, or Blanket Order Release should occur to match the production schedules.
Messages and Reports:
· Purchase orders. An order to a supplier to provide materials.
· Reschedule notices. These recommend canceling, increasing, delaying or speeding up existing orders.
Note that the outputs are recommended. Due to a variety of changing conditions in companies, since the last MRP / ERP system Re-Generation, the recommended outputs need to be reviewed by trained people to group orders for benefits in set-up or freight savings. These actions are beyond the linear calculations of the MRP computer software.
A large component of materials management is ensuring that parts and materials used in the supply chain meet minimum requirements by performing quality assurance (QA). Parts and material are tested, both before purchase orders are placed and during use, to ensure there are no short or long term issues that would disrupt the supply chain. This aspect of material management is most important heavily automated industries like tyre manufacturing industry, since failure rates due to faulty parts can slow or even stop production lines, throwing off timetables for production goals.
We can plan material requirements at plant level or for different MRP areas. With MRP at plant level, the system adds together stocks from all of the individual storage locations, with the exception of individual customer stock, to determine total plant stock. The requirements are combined in the planning run and procurement elements are created for these pegged requirements with........ (To get the completed new version of personalized answer, please click here) Contact Form
