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8/6/2019 Mrp 2 Presentation
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SHREEAUROBINDO INSTITUTE OF
MANAGEMENT & SCIENCE
Presentation On
Manufacturing Resource Planning(MRP II)
Submitted To:- Submitted By:-
Mr. Vishwas Sharma Rohit Nigam
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MANUFACTURING RESOURCE PLANNING
(MRP II) IS DEFINED AS A MASTERPLAN THAT
INCLUDES METHOD FOR THE EFFECTIVE PLANNINGOF ALL THE RESOURCES OF A MANUFACTURING
COMPANY.
IT HAS SOME ADDITIONAL IMPROVEMENTS OVERTHE ORIGINAL MRP I.E. MATERIAL REQUIREMENT
PLANNING
MRP-II
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MRP II
Expanded MRP with emphasis placed onintegration
y Financial planning
y Human relationy Marketing
y Capacity requirement planning
y Purchasing
y Production planning & Scheduling
y Operational Planning
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mrp material
requirements
planning
MRP II Manufacturing
Resource Planning
ERP- Enterprise
Resource Planning
MRP-II
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MAJORDEVELOPMENTS INCLUDED IN
MRPII
Feedback
Batching rules
Lot for Lot Economic batch Quantity Part Period Cover
Software extension programmes
Data accuracy
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BENEFITS
FOR Management
Anaccurate,consistentandeffectivewaytorunthe whole business
Theabilitytocope withdifficult
economicconditions
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FORSALES / MARKETING
Improveddeliveriestocustomers
Faster,moreaccuratedeliverypromising
Improvedresponsivenesstocustomerneeds
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FORPRODUCTION
Improvedproductivityandresource
utilization
IncreasedoutputBetterreliabilityofproductionplans
Bettercontrolofinventories
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FORFINANCIAL AND COSTING
Reduced workingcapitalforinventory
Improvedcashflow throughquickerdeliveries
Accurateinventoryrecords
Timelyandvalidcostandprofitabilityinformation
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CRITICISM
File/databaseaccuracymust bemaintained
Highlycomputerbased
Doesnotaffectqualitymanagementissues
Inflexibleandreliesonforecast.
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AGGREGATE PRODUCTION PLANNING
Aggregate Planning is Concerned With
Determining The Quantity And Timing Of
Production For The Intermediate Future,Often From Three To 18 Months Ahead.
The Goal is To Produce high quality products
at low cost & it should be available on the time
when the market wants them.
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STRATEGIES IN AGGREGATE PLANNING
1. Level Production Strategy This is to Increase Inventory During Periods Of
Low Demand To Meet High Demand in Future
Periods. However, By doing this, Costs Of Storage and
Handling Increases.
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2. CHASE STRATEGY
Varying Work Force Size in response to the
varying requirements
This is to Hire Or Lay Off Workers To MeetProduction Rates.
In this option, Often New Employees Need To Be
Trained.
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Varying Production Rates Through Overtime Or
Idle Time.
There is always a Limit For Overtime. Costs also
Increase.
3.MAINTAIN A CONSTANT WORKFORCE
BUT VARY THE UTILIZATION
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Depend on outsiders through subcontracting
when additional output is required.
Costly, Opens Doors To Competitors, Hard ToFind Perfect Subcontractor.
4. SUBCONTRACTING
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5. BACKORDERING AT HIGH DEMAND
PERIODS
Back ordering means That A Firm Promises To
Deliver a Product In A Later Date. Many Auto
Dealers Purposely Back Order.
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MASTER PRODUCTION SCHEDULE
Document that defines the specific goods thatspecific shops will produce in definite quantitiesat definite times over a short-term horizon inaccordance with the aggregate plan
1) The sizing and timing of specific item productionquantities
2) The sizing and timing of manufactured orpurchased components
3) The sequence of individual orders or jobs
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JUST-IN-TIME (JIT)
A highly coordinated processing system in which goods
move through the system, and services are performed,
just as they are needed.
In short, the just-in-time inventory system is all about
having the right material, at the right time, at the
right place, and in the right quantity without the
safety net of Inventory, the implications of which arebroad for the Implementers.
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HISTORY OF JIT
The technique was developed by Toyota Motor
Corporation of Japan as part of its Toyota Production
System (TPS).
JIT has been successfully employed in Taiwan, Korea
& Japan.
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BENEFITS OF JIT
Lower stock holding means a reduction in storageLower stock holding means a reduction in storagespace which saves rent and insurance costsspace which saves rent and insurance costs
As stock is only obtained when it is needed, lessAs stock is only obtained when it is needed, lessworking capital is tied up in stockworking capital is tied up in stock
There is less likelihood of stock perishing, becomingThere is less likelihood of stock perishing, becomingobsolete or out ofobsolete or out of datedate
Avoids the buildAvoids the build--up of unsold finished product that canup of unsold finished product that canoccur with sudden changes in demandoccur with sudden changes in demand
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