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w is a
production planning and inventory control system
used to manage manufacturing processes.
Ú Út is a formal computerized approach to inventory
planning, manufacturing scheduling, supplier
scheduling, and overall corporate planning.
Objective
Ú Mnsure materials are available for production and
products are available for delivery to customers.
Ú Maintain the lowest possible level of inventory.
Ú Plan manufacturing activities, delivery schedules and
purchasing activities.
Ú MRP works backward from a production plan for
finished goods to develop requirements for
components and raw materials. "MRP begins with a
schedule for finished goods that is converted into a
schedule of requirements for the subassemblies,
component parts, and raw materials needed to
produce the finished items in the specified time frame.
 MRP is a tool to deal with these problems. Út provides
answers for several questions:

Ú À
 items are required?

Ú î

 are required?
Ú À  are they required?
 Ú
Ú w

Ú aills of materials.(a M)

Ú Master production schedule.(MPS)

Ú Únventory status.
 O
Ú w

Ú Planned orders report

Ú rder release report

Ú rder changes report

aenefits
Ú Únventory Levels
Ú Mconomical rdering
Ú Purchasing Planning
Ú Production Planning
Ú Work Scheduling
Ú Customer Service

Mfficient planning tool, Saves time,Mnhances customer

service, Saves cost.
J
b
cks
Ú MRP relies upon accurate input information.
An MRP system must have an accurate master
production schedule.
Good lead time estimates.
Ú Systems can be difficult, time consuming, and costly to
implement.
Ú The key to making MRP implementation work is to
provide training and education for all affected
employees.
¦

Ú ¦ust-in-time manufacturing means producing the
necessary items in necessary quantities at the necessary
time. Út is a philosophy of continuous improvement in
which non-value-adding activities (or wastes) are
identified and removed.
Ú ¦ust-in-time improves return on investment by
substantially reducing overhead cost, limiting quality
inspections, and eliminating obsolete inventory.
Ú ¦ÚT is an inventory system where raw materials are
delivered right before they are needed on the assembly line,
and finished goods are manufactured just before they are
shipped to customers.
Ú Rather than producing goods and supplying customers
from stock, ¦ÚT processes focus on producing exactly
the amount you require at exactly the time your
customers require it.
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es
Ú preventing over-production
Ú minimising waiting times and transport costs
Ú saving resources by streamlining your production
systems
Ú reducing the capital you have tied up in stock
Ú dispensing with the need for inventory operations
Ú decreasing product defects
Jis
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nt
es
Ú Út may be difficult and expensive to introduce.
Ú ¦ÚT manufacturing also opens businesses to a number
of risks, notably those associated with your supply
chain.
Ú There is little room for mistakes as minimal stock is
kept for re-working faulty product.
Ú There is no spare finished product available to meet
unexpected orders, because all product is made to
meet actual orders.
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is n
Ú Material Resource Planning (MRP) is a supply driven
push system of production control that pushes
materials into production.
¦ust in time (¦ÚT) is a demand driven approach where
materials are pulled through production by using work
centers at shop floor level.
Ú ¦ÚT works well in a pure repetitive manufacturing
environment because the master schedule remains
applicable on day today basis.
Ú MRP system encourages protecting each part of the
operation from disruption being more proactive.
¦ÚT allows the problems in the production process to
be more evident and exposed so that the problems can
be closely scrutinized.
Ú ¦ÚT heavily depends on the actions of the workers at
the shop floor level
MRP is more system oriented rather than people
oriented.
Ú Ún ¦ÚT the main sacrifice is the capacity utilization.
Ún MRP the buffer stocks as a result of extra
production (not always) allow the system to continue
working.
Ú MRP systems usually need a complex centralized
computer based mechanism to monitor and control
the production process.
The control of the pull between stages in ¦ÚT is
accomplished by using simple tokens.
Ú Jecision making for operations control is largely
decentralized in ¦ÚT system which is not apparent in
the MRP or any other traditional system.
aenefits fb i w
 Ú
Ú MRP is used for guiding the purchase department for
planning the purchase needs of the future.
The actual supplies are made on the basis of the
kanban cards received by the supplier.
Ú Út addresses the capacity planning of the internal
production facilities as well as those of the suppliers.
Ú Total Productive maintenance (TPM) & the Total
preventive control (TPC) are essential requirements
for the system in order to avoid equipment
breakdowns leading to disruption in production
schedules & maintainning efficiency.



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