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Mrp (Material Requirements Planning) In The Third World. Article First Refers To Different Manufacturing Environments And The Difficulties Posed By Them.

1749 words - 7 pages

MRP IN THE THIRD WORLDSummarySince 1970 there has been a crusade for the MRP (Material Requirements Planning). Different approaches to the design of MRP II-based systems that have functioned as companywide integrators of the material planning process have continued to flourish, both in the literature and on the shop floor. It was quickly recognized that a MPS (Master Production Schedule) must drive the material plans generated by MRP. In its most simplistic form, MPS specified the configuration of a matched set of parts that MRP would subsequently plan at lower levels of the production system. MPS therefore managed independent demands on the production system while MRP managed dependent demands through component inventory records and product structure explosions. The article first refers to different manufacturing environments as first, second, and third world; then focuses on the difficulties posed by the particular manufacturing environment of "the third world".The First WorldIn this world, MPS items are finished end items made-to-stock. The MPS is stated in terms of forecast item demand converted to a series of production lots via time-phased order points. Customer orders are entered by a final item number, and the master-schedule-planned production lots are generated by actual or projected order point trips. Here the master schedule is stated in terms of finished products. In the first world of MRP many different purchased components and raw materials are obtained, finished, and assembled into a final finished item. The MPS-MRP system works very naturally under this environment because of the low ratio of the MPS planned parts to the MRP planned parts.The Second WorldThis is the world of custom make-to-order items where the MPS can be stated in terms of basic models and options. A custom product such as a machine tool is a classic example of a product produced in this world. A relatively large number of different components are assembled to complete an end product that may have many specific variants. The number of end items is high but a clever use of modular bills of material reduces the number of MPS planned parts in way that in this world there is also a low ratio of MPS planned parts to MRP planned parts. This result is amplified if the product design is tailored to produce generic parts and to permit postponement of the final configuration of the product until the latter stages of assembly. The final product is then assembled to order from standard subassemblies and component options. To accommodate this process it is necessary to create a customer order from a menu of standard components that generates actual demands for each option, which are captured by the system as demand history. It is important to note that there isn't any end item number assigned to any combination of options and that there isn't a demand history accumulated by final end item; nonetheless, there must be speculative planning of options so that they are available...

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