chapter 12 l.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Chapter 12 PowerPoint Presentation
Download Presentation
Chapter 12

Loading in 2 Seconds...

play fullscreen
1 / 75

Chapter 12 - PowerPoint PPT Presentation


  • 380 Views
  • Uploaded on

Chapter 12. Enterprise Resource Planning. To Accompany Russell and Taylor, Operations Management, 4th Edition ,  2003 Prentice-Hall, Inc. All rights reserved. ERP and MRP. First came MRP around 1970 Thanks to George Plossl, Oliver Wight, Joseph Orlicki

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Chapter 12' - Thomas


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
chapter 12

Chapter 12

Enterprise Resource Planning

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved.

erp and mrp
ERP and MRP
  • First came MRP around 1970
    • Thanks to George Plossl, Oliver Wight, Joseph Orlicki
    • MRP is Material Requirements Planning
  • Then came MRP II around 1980
    • MRP II is Manufacturing Resource Planning
  • Then came ERP around 1990
  • Today, its ERP II
problems with the mainframe architecture
Problems with the Mainframe Architecture
  • Poor data visibility
  • Long lead times on maintenance, modifications to legacy software (36 mos)
  • No GUI interfaces
more problems
More problems
  • New software apps were expensive and time consuming to develop
  • Mainframes were computational bottlenecks
  • Desktop PCs sat idle 99% of the time
slide5

Sales cannot track customer orders through the manufacturing/distribution process

Sales cannot see what is happening in accounts receivable

Information visibility across the enterprise is impossible

Independent data pools are created that cannot be integrated

Islands of automation are created

End users develop their own independent applications that then run on departmental PC’s

Centralized MIS shops have lead times of 36 months or longer

Centralized mainframes are computing bottlenecks

slide6

Mainframes were computational bottlenecks

Centralized MIS shop backlogs were extending out to 36 months

Only the centralized MIS shop could do maintenance and new development work

Budgets for MIS shops were stretched to their limits

Many new applications were being built

Change requests for existing apps were frequent and increasing

Each application had to reside entirely on the mainframe

Competitive and customer environments are changing rapidly

what to change to
What to change to
  • An architecture in which the data are totally integrated
  • An architecture in which most of the processing is not done on mainframes
  • Decentralization of MIS
  • What architecture was this???
how to cause the change
How to cause the change
  • ERP implementation
  • Solves the problems identified above
enterprise resource planning erp
Enterprise Resource Planning (ERP)
  • Organizes and manages a company’s business processes by sharing information across functional areas
  • Connects with supply-chain and customer management applications
erp modules11
ERP Modules

Figure 12.1

erp s central database

Finance & Accounting

Sales

& Marketing

Production & Materials Management

ERP Data Repository

Human Resources

ERP’s Central Database

Figure 12.2

erp implementation
ERP Implementation
  • First step is to analyze business processes
    • Which processes have the biggest impact on customer relations?
    • Which process would benefit the most from integration?
    • Which processes should be standardized?
  • Use of Internet portals can aid implementation
customer relationship management crm
Customer Relationship Management (CRM)
  • Plans and executes business processes that involve customer interaction
  • Changes focus from managing products to managing customers
  • Point-of-sale data is analyzed for patterns used to predict future behavior
supply chain management
Supply Chain Management
  • Supply chain planning
  • Supply chain execution
  • Supplier relationships
  • Distinctions between ERP and SCM are becoming increasingly blurred
collaborative product commerce cpc
Collaborative Product Commerce (CPC)
  • New product design and development and product life cycle management
  • Integrates customers and suppliers in the design process through the entire product life cycle
collaborative product commerce cpc17

Customer Relationship Management (CRM)

Customers

Collaborative Design

Collaborative Manufacture

Collaborative Product Commerce (CPC)

Enterprise Resource Planning (ERP)

Manufacture &

Delivery

Time to Customer

Product Design

Time to Market

DFMA

Collaborative Design

Collaborative Manufacture

Suppliers

Supply Chain Management (SCM)

Collaborative Product Commerce (CPC)

Figure 12.3

mysap plm supports the entire life cycle

Design

Production, Distribution

Aftermarket

Service

mySAP PLM Supports the entire life-cycle

Customer Relationship Management

Support the entire business process

Supply Chain

Management

Product Lifecycle Management

As planned

As maintained

As required

As designed

As built

product lifecycle management edition 2001

Asset Life-Cycle Management

Technical Assets Management

Preventive Maintenance

Business Partner

Collaboration

Work Clearance Management

Work Order Cycle

Quality Management

Quality Engineering

Quality Improvement

Quality Notifications

Quality Control

Product Lifecycle Management, Edition 2001

Life-cycle Data Management

Document Management

Product Structure Management

Integration to Office, CAD, SCADA & GIS

Change& Configuration Management

Program & Project Management

Portfolio Management

Product Life-cycle costing

Project Management

Life-Cycle Collaboration

Collaborative Engineering

Collaborative Project Management

PLM Integration

Product Safety

Dangerous Goods

Management

Industrial Hygiene &

Safety

Waste Management

Occupational Health

Environment Health & Safety

plm in mysap com

mySAP Services

PLM in mySAP.com

mySAP.com

Enterprise Portal

mySAP Enterprise Portals

SRM

mySAPSRM

HRmySAPHR

SCMmySAPSCM

CRM

mySAPCRM

PLMmySAPPLM

FINmySAPFinan-

cials

BImySAPBI

21 Industry Solutions

ERPSAP R/3

Exchange

mySAP Exchanges

mySAP Technology

hierarchical planning process

Production Planning

Capacity Planning

Resource Level

Items

Aggregate production plan

Resource requirements plan

Product lines or families

Plants

Master production schedule

Rough-cut capacity plan

Critical work centers

Individual products

Material requirements plan

Capacity requirements plan

All work centers

Components

Shop floor schedule

Input/ output control

Manufacturing operations

Individual machines

Hierarchical Planning Process

Forecast

Figure 9.5

material requirements planning
Material Requirements Planning
  • Computerized inventory control & production planning system
  • Schedules component items when they are needed - no earlier and no later
when to use mrp
When to Use MRP
  • Dependent and discrete items
  • Complex products
  • Job shop production
  • Assemble-to-order environments
demand characteristics

Independent demand

Dependent demand

100 x 1 =

100 tabletops

100 x 4 = 400 table legs

100 tables

Discrete demand

Continuous demand

400 –

300 –

200 –

100 –

400 –

300 –

200 –

100 –

No. of tables

No. of tables

1 2 3 4 5

Week

M T W Th F M T W Th F

Demand Characteristics

Figure 12.4

material requirements planning26

Master production schedule

Product

structure

file

Material

requirements

planning

Item

master

file

Planned order releases

Work orders

Purchase orders

Rescheduling notices

Material Requirements Planning

Figure 12.5

master production schedule
Master Production Schedule
  • Drives MRP process with a schedule of finished products
  • Quantities represent production not demand
  • Quantities may consist of a combination of customer orders & demand forecasts
  • Quantities represent what needs to be produced, not what can be produced
master production schedule28

PERIOD

MPS ITEM 1 2 3 4 5

Clipboard 85 95 120 100 100

Lapdesk 0 50 0 50 0

Lapboard 75 120 47 20 17

Pencil Case 125 125 125 125 125

Master Production Schedule
product structure tree

Clipboard

Level 0

Clip Ass’y (1)

Rivets (2)

Level 1

Pressboard (1)

Top Clip (1)

Bottom Clip (1)

Pivot (1)

Spring (1)

Level 2

Product Structure Tree

Figure 12.6

product structure tree30

Clipboard

Top clip (1) Bottom clip (1)

Pivot (1) Spring (1)

Rivets (2)

Finished clipboard Pressboard (1)

Product Structure Tree

Figure 12.6

indented bill of material

LEVEL ITEM UNIT OF MEASURE QUANTITY

0 - - - - Clipboard ea 1

- 1 - - - Clip Assembly ea 1

- - 2 - - Top Clip ea 1

- - 2 - - Bottom Clip ea 1

- - 2 - - Pivot ea 1

- - 2 - - Spring ea 1

- 1 - - - Rivet ea 2

- 1 - - - Press Board ea 1

Indented Bill of Material
specialized boms
Specialized BOMS
  • Phantom bills
    • Transient subassemblies
    • Never stocked
    • Immediately consumed in next stage
  • K-bills
    • Group small, loose parts under pseudo-item number
    • Reduces paperwork
specialized boms33
Specialized BOMS
  • Modular bills
    • Product assembled from major subassemblies & customer options
    • Modular bill kept for each major subassembly
    • Simplifies forecasting & planning
    • X10 Automobile example
      • 3 x 8 x 3 x 8 x 4 = 2,304 configurations
      • 3 + 8 + 3 + 8 + 4 = 26 modular bills
modular bills of material

X10

Automobile

Engines Exterior color Interior Interior color Body

(1 of 3) (1 of 8) (1 of 3) (1 of 8) (1 of 4)

4-Cylinder (.40) Bright red (.10) Leather (.20) Grey (.10) Sports coupe (.20)

6-Cylinder (.50) White linen (.10) Tweed (.40) Light blue (.10) Two-door (.20)

8-Cylinder (.10) Sulphur yellow (.10) Plush (.40) Rose (.10) Four-door (.30)

Neon orange (.10) Off-white (.20) Station wagon (.30)

Metallic blue (.10) Cool green (.10)

Emerald green (.10) Black (.20)

Jet black (.20) Brown (.10)

Champagne (.20) B/W checked (.10)

Modular Bills of Material

Figure 12.7

item master file

Item Pressboard Lead time 1

Item no. 734 Annual demand 5000

Item type Purch Holding cost 1

Product/sales class Comp Ordering/setup cost 50

Value class B Safety stock 0

Buyer/planner RSR Reorder point 39

Vendor/drawing 07142 EOQ 316

Phantom code N Minimum order qty 100

Unit price/cost 1.25 Maximum order qty 500

Pegging Y Multiple order qty

LLC 1 Policy code 3

Item Master File

DESCRIPTION INVENTORY POLICY

Table 12.4

item master file36

PHYSICAL INVENTORY USAGE/SALES

CODES

On hand 100 YTD usage/sales 1100

Location W142 MTD usage/sales 75

On order 100 YTD receipts 1200

Allocated 75 MTD receipts 0

Cycle 3 Last receipt 8/25

Last count 9/5 Last issue 10/5

Difference -2

Cost acct. 00754

Routing 00326

Engr 07142

Item Master File

Table 12.4

basic mrp processes
Basic MRP Processes

Exploding the bill of material

Netting out inventory

Lot sizing

Time-phasing requirements

the mrp matrix

ITEM NAME OR NO. LLC - LOW LEVEL CODE PERIOD

LOT SIZE QTY MADE IN LT - LEAD TIME 1 2 3 4 5

The MRP Matrix

Table 12.5

basic mrp formulas
Basic MRP formulas
  • Net Requirements = Gross Requirements – scheduled receipts – On-hand Inventory(previous period)
  • Planned Order Receipt = function (Net Requirements, order policy)
  • Planned OrderRelease = Planned Order Receipt backed up by the lead time
    • Planned OrderReleasei-LT = Planned Order Receipti
more formulas
More formulas
  • On-hand inventoryi = on-hand inventoryi-1 + scheduled receiptsi + Planned Order Releasei – Gross Requirementsi
  • Gross Requirements for next level down are determined from the Planned Order Releases at the level above
on hand inventory
On-hand inventory
  • Is always the amount of on-inventory at the end of the period
  • All other items (gross req., net req., scheduled receipts, planned order receipts) are amounts at the beginning of the period
school mate products

Master Production Schedule

1 2 3 4 5

Clipboard 85 95 120 100 100

Lapdesk 0 60 0 60 0

Item Master File

CLIPBOARD LAPDESK PRESSBOARD

On hand 25 20 150

On order 175 (Period 1) 0 0

(sch receipt)

LLC 0 0 1

Lot size L4L Mult 50 Min 100

Lead time 1 1 1

School Mate Products

Example 12.1

school mate products43

Product Structure Record

Level 0

Clipboard

Pressboard

(1)

Clip Ass’y

(1)

Rivets

(2)

Level 1

Level 0

Lapdesk

Glue

(4 oz)

Pressboard

(2)

Beanbag

(1)

Trim

(3’)

Level 1

School Mate Products

Example 12.1

school mate products44

ITEM: CLIPBOARD LLC: 0 PERIOD

LOT SIZE: L4L LT: 1 1 2 3 4 5

Gross Requirements 85 95 120 100 100

Scheduled Receipts 175

Projected on Hand 25

Net Requirements

Planned Order Receipts

Planned Order Releases

School Mate Products

Example 12.1

school mate products45

ITEM: CLIPBOARD LLC: 0 PERIOD

LOT SIZE: L4L LT: 1 1 2 3 4 5

Gross Requirements 85 95 120 100 100

Scheduled Receipts 175

Projected on Hand 25 115

Net Requirements 0

Planned Order Receipts

Planned Order Releases

School Mate Products

(25 + 175) = 200 units available

(200 - 85) = 115 on hand at the end of Period 1

Example 12.1

school mate products46

ITEM: CLIPBOARD LLC: 0 PERIOD

LOT SIZE: L4L LT: 1 1 2 3 4 5

Gross Requirements 85 95 120 100 100

Scheduled Receipts 175

Projected on Hand 25 115 20

Net Requirements 0 0

Planned Order Receipts

Planned Order Releases

School Mate Products

115 units available

(115 - 85) = 20 on hand at the end of Period 2

Example 12.1

school mate products47

ITEM: CLIPBOARD LLC: 0 PERIOD

LOT SIZE: L4L LT: 1 1 2 3 4 5

Gross Requirements 85 95 120 100 100

Scheduled Receipts 175

Projected on Hand 25 115 20 0

Net Requirements 0 0 100

Planned Order Receipts 100

Planned Order Releases 100

School Mate Products

20 units available

(20 - 120) = -100 — 100 additional Clipboards are required

Order must be placed in Period 2 to be received in Period 3

Example 12.1

school mate products48

ITEM: CLIPBOARD LLC: 0 PERIOD

LOT SIZE: L4L LT: 1 1 2 3 4 5

Gross Requirements 85 95 120 100 100

Scheduled Receipts 175

Projected on Hand 25 115 20 0 0 0

Net Requirements 0 0 100 100 100

Planned Order Receipts 100 100 100

Planned Order Releases 100 100 100

School Mate Products

Following the same logic Gross Requirements in Periods 4 and 5 develop Net Requirements, Planned Order Receipts, and Planned Order Releases

Example 12.1

school mate products49

ITEM: LAPDESK LLC: 0 PERIOD

LOT SIZE: MULT 50 LT: 1 1 2 3 4 5

Gross Requirements 0 60 0 60 0

Scheduled Receipts

Projected on Hand 20

Net Requirements

Planned Order Receipts

Planned Order Releases

School Mate Products

Example 12.1

school mate products50

ITEM: LAPDESK LLC: 0 PERIOD

LOT SIZE: MULT 50 LT: 1 1 2 3 4 5

Gross Requirements 0 60 0 60 0

Scheduled Receipts

Projected on Hand 20 20 10 10 0 0

Net Requirements 0 40 50

Planned Order Receipts 50 50

Planned Order Releases 50 50

School Mate Products

Following the same logic, the Lapdesk MRP matrix is completed as shown

Example 12.1

school mate products51

ITEM: CLIPBOARD LLC: 0 PERIOD

LOT SIZE: L4L LT: 1 1 2 3 4 5

ITEM: LAPDESK LLC: 0 PERIOD

LOT SIZE: MULT 50 LT: 1 1 2 3 4 5

Planned Order Releases 100 100 100

Planned Order Releases 50 50

ITEM: PRESSBOARD LLC: 0 PERIOD

LOT SIZE: MIN 100 LT: 1 1 2 3 4 5

Gross Requirements

Scheduled Receipts

Projected on Hand 150

Net Requirements

Planned Order Receipts

Planned Order Releases

School Mate Products

Example 12.1

school mate products52

ITEM: CLIPBOARD LLC: 0 PERIOD

LOT SIZE: L4L LT: 1 1 2 3 4 5

ITEM: LAPDESK LLC: 0 PERIOD

LOT SIZE: MULT 50 LT: 1 1 2 3 4 5

Planned Order Releases 100 100 100

Planned Order Releases 50 50

x1

x1

x1

x2

x2

ITEM: PRESSBOARD LLC: 0 PERIOD

LOT SIZE: MIN 100 LT: 1 1 2 3 4 5

Gross Requirements 100 100 200 100 0

Scheduled Receipts

Projected on Hand 150

Net Requirements

Planned Order Receipts

Planned Order Releases

School Mate Products

Example 12.1

school mate products53

ITEM: CLIPBOARD LLC: 0 PERIOD

LOT SIZE: L4L LT: 1 1 2 3 4 5

ITEM: LAPDESK LLC: 0 PERIOD

LOT SIZE: MULT 50 LT: 1 1 2 3 4 5

Planned Order Releases 100 100 100

Planned Order Releases 50 50

ITEM: PRESSBOARD LLC: 0 PERIOD

LOT SIZE: MIN 100 LT: 1 1 2 3 4 5

Gross Requirements 100 100 200 100 0

Scheduled Receipts

Projected on Hand 150 50 50 0 0 0

Net Requirements 50 150 100

Planned Order Receipts 100 150 100

Planned Order Releases 100 150 100

School Mate Products

Example 12.1

school mate products54

Planned Order Report

PERIOD

ITEM 1 2 3 4 5

Clipboard 100 100 100

Lapdesk 50 50

Pressboard 100 150 100

School Mate Products

Example 12.1

mrp outputs
MRP Outputs
  • Planned orders
    • Work orders
    • Purchase orders
  • Changes to previous plans or existing schedules
    • Action notices
    • Rescheduling notices
planned order report

Item #2740 Date 9 - 25 - 02

On hand 100 Lead time 2 weeks

On order 200 Lot size 200

Allocated 50 Safety stock 50

SCHEDULED PROJECTED

DATE ORDER NO. GROSS REQS. RECEIPTS ON HAND ACTION

50

9-26 AL 4416 25 25

9-30 AL 4147 25 0

10-01 GR 6470 50 - 50

10-08 SR 7542 200 150 Expedite SR 10-01

10-10 CO 4471 75 75

10-15 GR 6471 50 25

10-23 GR 6471 25 0

10-27 GR 6473 50 - 50 Release PO 10-13

Key: AL = allocated WO = work order

CO = customer order SR = scheduled receipt

PO = purchase order GR = gross requirement

Planned Order Report

Table 12.6

mrp action report

Current date 9-25-02

ITEM DATE ORDER NO. QTY. ACTION

#2740 10-08 7542 200 Expedite SR 10-01

#3616 10-09 Move forward PO 10-07

#2412 10-10 Move forward PO 10-05

#3427 10-15 Move backward PO 10-25

#2516 10-20 7648 100 De-expedite SR 10-30

#2740 10-27 200 Release PO 10-13

#3666 10-31 50 Release WO 10-24

MRP Action Report

Table 12.7

capacity requirements planning crp
Capacity Requirements Planning (CRP)
  • Computerized system that projects load from material plan
  • Creates load profile
  • Identifies underloads and overloads
capacity
Capacity

Usually expressed as standard machine hours or labor hours

Capacity = (no. machines or workers)

x (no. shifts) x (utilization)

x (efficiency)

capacity terms
Capacity Terms
  • Load profile
    • Compares released and planned orders with work center capacity
  • Capacity
    • Productive capability; includes utilization and efficiency
  • Utilization
    • % of available working time spent working
more capacity terms
More Capacity Terms
  • Efficiency
  • Load
    • The standard hours of work assigned to a facility
  • Load percent
    • The ratio of load to capacityLoad % = (load/capacity)x100%
capacity requirements planning

MRP planned

order

releases

Open

orders

file

Capacity

requirements

planning

Routing

file

Load profile for

each machine center

Capacity Requirements Planning

Figure 12.8

determining loads and capacities
Determining Loads and Capacities

2 copiers, 2 operators

5 days/wk, 2 shifts/day, 8 hrs/shift

1/2 hr meals, 1/2 hr maintenance per day

Efficiency = 100%

Utilization = 7/8 = 87.5%

Daily capacity = 2 machines x 2 shifts

x 8 hours/shift x 100% efficiency

x 87.5% utilization

= 28 hours or 1,680 minutes

Example 12.2

determining loads and capacities64

JOB NO. OF SETUP RUN TIME

NO. COPIES TIME (MIN) (MIN/UNIT) TOTAL TIME

10 500 5.2 0.08 5.2 + (500 x 0.08) = 45.2

20 1,000 10.6 0.10 10.6 + (1,000 x 0.10) = 110.6

30 5,000 3.4 0.12 3.4 + (5,000 x 0.12) = 603.4

40 10,000 11.2 0.14 11.2 + (10,000 x 0.14) = 1,411.2

50 2,000 15.3 0.10 15.3 + (2,000 x 0.10) = 215.3

2385.7 min

Determining Loads and Capacities

Load percent = 2,385.7 / 1,680 = 1.42 x 100% = 142%

Add another shift:

Daily capacity = 2 machines x 3 shifts x 8 hours/shift

x 100% efficiency x 87.5% utilization

= 42 hours or 2,520 minutes

Revised load percent = 2,385.7 / 2,520 = 0.9467 x 100% = 94.67%

Example 12.2

initial load profile

120 –

110 –

100 –

90 –

80 –

70 –

60 –

50 –

40 –

30 –

20 –

10 –

0 –

Hours of capacity

Normal

capacity

1 2 3 4 5 6

Time (weeks)

Initial Load Profile

Figure 12.9

remedies for underloads
Remedies for Underloads

Acquire more work

Pull work ahead that is scheduled for later time periods

Reduce normal capacity

remedies for overloads
Remedies for Overloads

Eliminate unnecessary requirements

Reroute jobs to alternative machines or work centers

Split lots between two or more machines

Increase normal capacity

Subcontract

Increase the efficiency of the operation

Push work back to later time periods

Revise master schedule

adjusted load profile

120 –

110 –

100 –

90 –

80 –

70 –

60 –

50 –

40 –

30 –

20 –

10 –

0 –

Work an extra shift

Hours of capacity

Push back

Pull ahead

Push back

Overtime

Normal

capacity

1 2 3 4 5 6

Time (weeks)

Adjusted Load Profile

Figure 12.10

relaxing mrp assumptions
Relaxing MRP Assumptions
  • Material is not always the constraining resource
  • Lead times can vary
  • Not every transaction needs to be recorded
  • JIT can be used with MRP
  • The shop floor may require a more sophisticated scheduling system
manufacturing resource planning mrp ii71

Customer orders

Aggregate production plan

Forecast

No

Feasible?

Yes

Master production schedule

Material requirements planning

Capacity requirements planning

No

Feasible?

Feedback

Yes

Work orders

Purchase orders

Shop floor control

Inventory

Manufacture

Manufacturing Resource Planning (MRP II)

Figure 12.11

manufacturing resource planning mrp ii72

Customer orders

Aggregate production plan

Forecast

No

Feasible?

Customer orders

Aggregate production plan

Forecast

Yes

Master production schedule

Material requirements planning

No

Capacity requirements planning

Feasible?

No

Feasible?

Feedback

Yes

Yes

Work orders

Purchase orders

Master production schedule

Shop floor control

Inventory

Manufacture

Manufacturing Resource Planning (MRP II)

Figure 12.11

manufacturing resource planning mrp ii73

Customer orders

Aggregate production plan

Forecast

No

Feasible?

Yes

Master production schedule

Master production schedule

Material requirements planning

Capacity requirements planning

Material requirements planning

No

Capacity requirements planning

Feasible?

Feedback

Yes

No

Work orders

Purchase orders

Feasible?

Shop floor control

Inventory

Yes

Manufacture

Manufacturing Resource Planning (MRP II)

Figure 12.11

manufacturing resource planning mrp ii74

Customer orders

Aggregate production plan

Forecast

No

Feasible?

Yes

Master production schedule

Material requirements planning

Capacity requirements planning

No

Feasible?

Feedback

Yes

Purchase orders

Work orders

Shop floor control

Inventory

Work orders

Purchase orders

Shop floor control

Inventory

Manufacture

Manufacture

Manufacturing Resource Planning (MRP II)

Figure 12.11

manufacturing resource planning mrp ii75

Customer orders

Aggregate production plan

Forecast

No

Feasible?

Yes

Master production schedule

Material requirements planning

Capacity requirements planning

No

Feasible?

Feedback

Yes

Work orders

Purchase orders

Shop floor control

Inventory

Manufacture

Manufacturing Resource Planning (MRP II)

Figure 12.11