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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 :
“
help.mbaassignments@gmail.com ”
or
Call
us at : 08263069601
