IMT- 89 MATERIAL REQUIREMENT PLANNING

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IMT- 89

MATERIAL REQUIREMENT PLANNING

Notes:

a. Write answers in your own words as far as possible and refrain from copying from the text books/handouts.

b. Answers of Ist Set (Part-A), IInd Set (Part-B), IIIrd Set (Part – C) and Set-IVth (Case Study) must be sent together.

c. Submit the assignments in IMT CDL H.O.along with the assignments Question Papers for evaluation .

d. Only hand written assignments shall be accepted.

A. First Set of Assignments 5 Questions, each question carries 1.5 marks.

B. Second Set of Assignments 5 Questions, each question carries 1.5 marks.

C. Third Set of Assignments 5 Questions, each question carries 1.5 marks. Confine your answers to 150 to 200 Words.

D. Forth Set of Assignments Two Case Studies : 7.5 Marks. Each case study carries 3.75 mark

SECTION – A

1. What is the role of Inventory in a firm? What are the performance metrics of Inventory?

Answer : Inventory is not just about the items a retailer sells. Inventory management involves taking stock of a business' assets, such as labor, cash and material items used or sold. In essence, inventory control enables the business to have what it needs, when it needs it in order to do business.

Role of Inventory in a firm :

Inventory Control

The goal for a business is to invest the least amount in inventory while maintaining specific operating requirements. Ideally, the inventory control in place allows the business to supply needs in regards to production or to the customer at the precise moment needed, at the minimal price. Successful inventory control keeps waste and surplus at a minimum and efficiently handles storage, production and distribution of inventory.

Primary Function

The primary function

2. How is the independent and dependent demand related to the rationale behind the development of MRP?

Answer : One way to understand inventory is to separate it into two broad categories: dependent and independent demand. Understanding this difference is important as the entire inventory policy for an item is based on this. Independent demand is demand for a finished product, such as a computer, a bicycle, or a pizza. Dependent demand, on the other hand, is demand for component parts or subassemblies. For example, this would be the microchips in the computer, the wheels on the bicycle, or the cheese on the pizza.

The two inventory systems we discussed are used to determine order quantities for independent demand. But how do we compute quantities for dependent demand? Quantities for dependent demand are derived from independent

3. A master production schedule is a vital component of planning and control in Manufacturing. Discuss with examples.

Answer : A master production schedule (MPS) is a plan for individual commodities to produce in each time period such as production, staffing, inventory, etc.mIt is usually linked to manufacturing where the plan indicates when and how much of each product will be demanded. This plan quantifies significant processes, parts, and other resources in order to optimize production, to identify bottlenecks, and to anticipate needs and completed goods. Since an MPS drives much factory activity, its accuracy and viability dramatically affect profitability. Typical MPS's are created by software with user tweaking.

Due to software limitations, but especially the

4. What are the main assumptions to be kept in mind while Setting up a MRP system in an organisation? Discuss with examples.

Answer : Set-up costs are the costs incurred from getting a machine ready to produce the desired good. In a manufacturing setting this would require the use of a skilled technician (a cost) who disassembles the tooling that is currently in use on the machine. The disassembled tooling is then taken to a tool room or tool shop for maintenance or possible repair (another cost). The technician then takes the currently needed tooling from the tool room (where it has been maintained; another cost) and brings it to the machine in question.

There the technician has to assemble the tooling on the machine in the manner required for the good to be produced (this is known as a "set-up").

5. Level by Level computation of requirement by MRP reduces the likelihood of problems in handling multiple parent demands. How are common items treated by MRP?

Answer : Supply Chain Planning users can employ additional functionality to generate and manage their material and distribution requirements across multiple, interdependent organizations. See: The Multiple Organization Model and Material and Distribution Requirements Planning.

Material requirements planning (MRP) calculates net requirements from gross requirements by evaluating:

SECTION – B

1.What are the different methods of LOT Sizing? Explain with examples.

Answer : Minimum lot size

 When the minimum lot size is 80 and the required quantity is 100, the system creates a requirement proposal for a quantity of 100 Units, to cover the shortages.

This can be used with almost all the lot sizing procedures.

Maximum lot size

 If the required quantity through a demand is 120 kg, then the system will create two planned orders of 80 kg & 40 kg {if the Plant/Storage location stock for that material is Zero}

If the procurement qty is 140 kg, and the

2. The net requirements for a material from an MRP schedule are:

It costs $400 to change over the machines for this material in the affected work centre. It costs $0.40 per unit when one unit of this material must be carried in inventory from one week to the next.

• Identify the lot-sizing method that results in the least carrying and changeover costs for the 8-week schedule.

Answer :  Lot-for-Lot Method

Carrying

3. What are the major roles of Bill Of Material? Explain the concept of transient assemblies.

Answer : A bill of materials (BoM) is a list of the parts or components that are required to build a product. The BoM provides the manufacturer's part number (MPN) and the quantity needed for each component.

At its most complex, a BoM is a multi-level document that provides build data for multiple sub-assemblies (products within products) and includes for each item: part number, approved manufacturers list (AML), mechanical characteristics and a whole range of component descriptors. It may also include attached reference files, such as part specifications, CAD files and schematics.

4. Explain the five major inputs that are used by MRP to determine correct inventory and order status of each item. Give Examples.

Answer : Material requirements planning (MRP) is a computer-based inventory management system designed to assist production managers in scheduling and placing orders for items of dependent demand. Dependent demand items are components of finished goods—such as raw materials, component parts, and subassemblies—for which the amount of inventory needed depends on the level of production of the final product. For example, in a plant that manufactured bicycles, dependent demand inventory items might include aluminum, tires, seats, and bike chains.

5. A realistic MPS is a plan that is subject to continuous review and adjustment. Do you agree? Support your answer with appropriate examples.

Answer : Master Production Schedule (MPS) : 

MPS operates within only one level of the BOM, While MRP can be utilized throughout all   levels of a material’s BOM.  If a MPS is run on a material, the necessary orders are planned at that level. Dependent requirements (if any) are placed on the next BOM level down, and then the process stops.

Main Idea : Master production scheduling (MPS) is a form of MRP that concentrates  planning on the parts or products that have the great influence on company profits or which dominate the entire production process by taking critical resources.

SECTION - C

Q1.What are the problems that need to be monitored to ensure the healthy functioning of MRP programs? How are these problems monitored?

Answer : First problem with MRP systems - the integrity of the data. If there are any errors in the inventory data, the bill of materials (commonly referred to as 'BOM') data, or the master production schedule, then the output data will also be incorrect ("GIGO": Garbage In, Garbage Out). Data integrity is also affected by inaccurate cycle count adjustments, mistakes in receiving input and shipping output, scrap not reported, waste, damage, box count errors, supplier container count errors, production reporting errors, and system issues. Many of these type of errors can be minimized by implementing pull systems and

Q3.What is planning execution loop in MRP? How do we close the execution loop?

Answer : Closed loop manufacturing resource planning, also known as closed loop MRP (CLMRP), is a manufacturing resource planning model that incorporates returned products as part of the supply chain. In such a model, the original equipment manufacturer (OEM) takes responsibility for the return loop (RL) process. Product returns (also known as cores) often come directly from customers or retail channels, but they can also come from production facilities in the form of manufacturing by-products or components that fail to meet the manufacturer's quality control criteria. Returned products are counted as inventory because they can be inspected and resold, refurbished or used for parts. By closing the loop and managing the product lifecycle in a holistic manner, the manufacturer has more control over both supply chain and

Q4.How MRP can be used in JIT environments?

Answer : MRP and JIT each have benefits.  The question is: Can they work together successfully, and how would one go about combining them?  As stated earlier in the chapter, most major manufacturing firms use MRP.  Of the firms using MRP, many in repetitive manufacturing are also implementing JIT techniques.  Although JIT is best suited to repetitive manufacturing, MRP is used in everything from custom job shops to assembly-line production.  Most firms that have successfully implemented MRP systems are not interested in discarding MRP to try JIT.  A new challenge arises in integrating the shop-floor improvement approaches of JIT with an MRP-based planning and control system.  The MRP/JIT combination creates what might be considered a hybrid manufacturing system.  Efforts to integrate MRP and JIT are no

Q5. Flow line operations and KANBAN are enhancement to MRP and not a replacement. Discuss

Answer : Kanban: Just-in-time

To Japanese managers, kanban or the just-in-time system is an approach for providing smoother production flows and making continual improvements in processes and products. Kanban attempts to reduce work in progress to an absolute minimum. In addition, the system constantly attempts to reduce lead times, work-in-process inventories, and setup times.

Kanban’s core objective is to obtain low-cost, high-quality, on-time production. To achieve this, the system attempts to eliminate stock between the successive processes and to minimize any idle equipment, facilities, or workers.

CASE STUDY – 1

The Hunicut and Hallock Corporation makes two versions of the same basic file cabinet, the TOL (Top-of-the-line) five drawer file cabinet and the HQ (High-quality) five drawer filing cabinet. The TOL and HQ use the same cabinet frame and locking mechanism. The drawer assemblies are different although both use the same drawer frame assembly. The drawer assemblies for the TOL cabinet use a sliding assembly that requires four bearings per side whereas the HQ sliding assembly requires only two bearings per side. (These bearings are identical for both cabinet types.) 100 TOL and 300 HQ file cabinets need to be assembled in week #10. No current stock exists.

Questions :

1. Develop a material structure tree for the TOL and the HQ file cabinets.

Answer :

2. Develop a gross material requirements plan for the TOL and HQ cabinets in the previous example.

Answer :

Gross Requirements Plan
Week	1	2	3	4	5	6	7	8	9	10

CASE STUDY – 2

(Ref to the above Case Only)

Develop a net material requirements plan for the TOL and HQ file cabinets in the previous problems assuming current on-hand finished goods inventory of 100 TOL cabinets. The lead times are given below.

l Painting and final assembly of both HQ and TOL requires 2 weeks.

l Both cabinet frames and lock assembly require 1 week for manufacturing.

l Both drawer assemblies require 2 weeks for assembly.

l Both sliding assemblies require 2 weeks for manufacturing.

l Bearings require 2 week to arrive from the supplier.

If the TOL file cabinet has a gross material requirements plan as shown below, no inventory, and 2 weeks lead time is required for assembly, what are the order release dates and lot sizes when lot sizing is determined using lot-for-lot? Use a holding cost of $2.00 and a setup cost of $20.00, and assume no initial inventory.

Gross Material Requirements Plan
Week	1	2	3	4	5	6	7	8	9	10
TOL			50		100		50			100

Answer :

		Week
		1	2	3	4	5	6	7	8	9	10	Lead Time
TOL	Required date										100	2 weeks
	Order release date

If the TOL file cabinet has a gross material requirements plan as shown below, no inventory, and 2 weeks of lead times required for assembly, what are the order release dates and lot sizes when lot sizing is determined by EOQ (Economic Order Quantity)? Use a holding cost of $2.00 and a setup cost of $20.00, and assume no initial inventory.

Gross Material Requirements Plan
Week	1	2	3	4	5	6	7	8	9	10
TOL			50		100		50			100

Answer :

Gross Material Requirements Plan
Week	1	2	3	4	5	6	7	8	9	10

Dear students get fully solved IMT assignments

Send your semester & Specialization name to our mail id :

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or

Call us at : 08263069601