RESOURCE REQUIREMENT PLANNING

Resource Requirement Planning is directed at determination of the amount and timing of production resources such as personnel, materials, cash and production capacity needed to produce the finished products or end items as per the master production schedule. Resource Requirement Planning is also known as Rough cut capacity planning. It can be used to evaluate the feasibility of a trial master production schedule

RESOURCE REQUIREMENT PLANNING SYSTEM

marketing-short range demand forecast MASTER PRODUCTION SCHEDULE (MPS) MarketingEnd item production schedule Finance/ accounting Inventory level schedule Production MPS, Load profile Capacity utilization data, Planned material orders And releases, shop floor plans Engineering New design Incorporation data Personnel Employee requirements Schedule Purchasing Planned orders and order releases MIS- data base system Updated inventory status file

Financecash availability inventory norms

Production Capacity constraints Development of MPS CRP and MRP Engineering Change in product Design and product Structure Personnel Employee availability Purchasing Material supply Availability MIS data base system Inventory status file Bill of Material file

MATERIAL REQUIREMENTS PLANNING (MRP)

CAPACITY REQUIREMENT PLANNING (CRP)

ELEMENTS OF RESOURCE REQUIREMENT PLANNING SYSTEM

Material Requirement Planning (MRP) Capacity Requirement Planning (CRP)

FLOW CHART OF RRP

Mkt research Customer firm orders Estimated End item demand R&D orders Forecast Customer demands Inventory status of End item Branch warehouse orders

Needed pdn of end items

Lot sizing and safety stock policies

Rough cut capacity planning

Modification to MPS

Trial MPS

Modification to MPS

MRP No
Is material available

CRP yes
MPS MRP CRP

yes
Is capacity economically available

No

MATERIAL REQUIREMENT PLANNING (MRP)

MRP is an integral part of production planning. For effective control, production plans are converted into materials plans. Material planning techniques can be classified into two groups: Material planning techniques for direct materials-raw materials construction of buildings- cement, bricks Materials planning techniques for indirect materialstools used for repairing machines.

Information flow for planning and controlling with MRP

Business plan

Forecast

Pdn plan
Tentative MPS

Current conditions

Rough cut Capacity check Pdt structure file

Master schedule
Inventory Status file

MRP program Buy items

Make items
Purchase orders

CRP
Vendor Feed back Detailed pdn plans Pdn activity controls

OPERATION OF MRP SYSTEM

INPUTS PROCESSING

OUTPUTS
INVENTORY TRANSACTION DATA

INVENTORY STATUS FILE MPS FILE MRP SYSTEM

PLANNED ORDER SCHEDULE

B.O.M FILE

EXCEPTION REPORTS

MANUFACTURING RESOURCE PLANNING(MRP-II)

Manufacturing Resource planning (MRP-II) has been developed by manufacturing managers to address the planning and controlling of a manufacturing process and all of its related to materials, capacity, finance, engineering, sales and marketing.

MRP-II is universally applicable to any manufacturing organisation regardless of its size, location, product or process.

MRP-II is a management process for taking the business plan and breaking it down into specific detailed tasks that people evaluate agree upon and are held accountable for.

MANUFACTURING RESOURCE PLANNING(MRP-II)

It involves all departments viz.materials dept, engineering dept that must maintain bill of materials, sales/ marketing dept that must keep sales plan up to date, purchasing and manufacturing depts that must meet due dates for bought out items and in house manufactured items respectively.

MRP-II An Integrated system of planning and control

Business plan
Manufacturing Materials, capacity, Pdn, scheduling

Production plan

Purchasing vendors Engineering Process & pdt design)

Marketing Sales order entry delivery projection

MPS

Rough cut capacity plan

MRP
Finance Capital requirements for Capacity Working capital

Detailed Capacity plan

Shop floor control Purchase control

Accounting B/p, Accounts receivable