MMaximum Retail PriceRP(inclusive of all tax)

R.KeerthivasanSRM University

Material Requirement Planning

Power Tools

In same year

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IIIIIIIIIIIIIIIIVV

MRP - I

Production Planning and Inventory Control System

Managing Manufacturing Processes

For

Most MRP Systems are Software Based

THREE OBJECTIVES of MRP - I

Plan Manufacturing activities, Delivery schedules and Purchasing activities.

Ensure Materials to available for Production and Products

available for Delivery to Customers

Maintain the lowest possible material and product levels in store

Basic functions:

Inventory Control, Bill of Material Processing

and Elementary Scheduling

Helps Organizations to Maintain Low Inventory Levels.

Plan manufacturing, Purchasing,Delivering activities,

Consider a Product

StoveBowlsRice

VegetablesOil

SpicesMasala

Bill Of Materials Process Planning

Cutting VegetablesBoil rice

Adding ingredientsDecoration

Demand Quantity

No of People

What items are required?How many are required ?When are they required ?

So, MRP – I Answers these questions

At what time

Parts Shortage Reduced

Advantages Of

MRP

Integrated Company

Data

“Real Time“Job Status

Report

AchievableWork Plan

MRP - IIManufacturing resource planning

MRPII is to Provide Consistent data to all players in the manufacturing process as the product moves through the production line.

Benefits of MRP II

Reduced working capital for inventoryImproved cash flow through quicker deliveriesAccurate inventory records

Better control of inventoriesImproved schedulingProductive relationships with suppliers

Improved design controlBetter quality and quality control

This systems provide:

For Design / Engineering:

For Financial and Costing:

MRP-I vs MRP-II

Material Requirements Planning (MRP)

• Was an early iteration of the integrated information systems vision.

• Helped managers to determine the quantity and timing of raw materials purchases.

• MRP was Primarily concerned with materials

Manufacturing Resource Planning (MRP - II)

• Concerned with the integration of all aspects of the Manufacturing process

• Including materials,

• Finance and Human Relations.

End