MRP II System: Manufacturing Resource Management and Control

Economics2.8 KB

MRP II: Manufacturing Resource Planning

MRP II plans and oversees all the resources of a manufacturing company: manufacturing, marketing, finance, and engineering.

Objective of Production Control Analysis

To analyze the organizational activity of production control and its approach as a system.

Production Control Scope

Controls the product since it is required until delivery to the customer.

Systemic View Objective

To see the company as a whole system, including the material supply chain and information flow from supplier to end customer.

Importance of Asset Generation

Important: Generating productive assets at a cost requires coordinating and scheduling their activities so that production processes are efficient and resources are used to the maximum.

Flow Control and Materials Management

Production Planning Components

  1. Forecasting
  2. Capacity Planning
  3. Material Planning

General Outline of Planning and Control

  1. Forecast demand
  2. Master Plan
  3. Aggregate production plan
  4. Detailed material requirements planning
  5. Production floor scheduling

Sales and Operations Planning (S&OP)

Top management provides the ability to lead your business strategically for competitive advantage with a customer focus in the marketing plans for new and existing products. Well-executed S&OP chains the strategy with the business plan under the implementation and review of performance indicators for improvement.

Aggregate Planning

Production plans in the medium term are employed, involving inventory additions, service levels (T&C services), modifications to facilities, and material supply contracts. It provides full-load facilities and adequate production capacity, aiming for maximum production depending on available resources.

Master Production Schedule (MPS)

The MPS represents what the company plans to produce in specific configurations, quantities, and dates.

MRP (Materials Requirements Planning)

MRP calculates the material requirements. It is based on the time phasing, starting with the MPS, and determines the amount of all the components necessary to manufacture an item and the date needed.

CRP (Capacity Requirements Planning)

CRP creates, measures, and adjusts the levels of capacity (labor and machine resources required to accomplish the tasks of production). MRP orders are moved to hours of work per site over a period of time. This may indicate that the capacity is insufficient for a given period.

CRP Entries

  • Released production and payment orders
  • Planned manufacturing routes
  • Work centers and standard time data
  • Control/Order status

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