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MRP Example for Skateboard Production

The document discusses material requirements planning (MRP). It provides an example of using MRP to plan production of skateboards, which are made of boards and roller-sets. Roller-sets contain rollers and axles. MRP tables are generated for each item showing gross requirements, scheduled receipts, projected inventory balances, and planned order releases over multiple weeks. Capacity requirements planning (CRP) is then used to validate that the planned order quantities can be produced given the available machine capacity.

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58 views10 pages

MRP Example for Skateboard Production

The document discusses material requirements planning (MRP). It provides an example of using MRP to plan production of skateboards, which are made of boards and roller-sets. Roller-sets contain rollers and axles. MRP tables are generated for each item showing gross requirements, scheduled receipts, projected inventory balances, and planned order releases over multiple weeks. Capacity requirements planning (CRP) is then used to validate that the planned order quantities can be produced given the available machine capacity.

Uploaded by

Anonymous ffje1rpa
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

The Explosion Calculus

MRP processing at one level: Gross requirements at one level of product structure are translated into production schedule (planned order release) at that level. Explosion into lower levels: Planned Order Release (POR) quantities at one level of product structure are translated into gross requirements at lower levels.
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MRP Example
n

You are producing skateboards, and each consists of one unit of board, and two units of subassembly of roller-set. Roller-sets are produced inside the plant, and consist of two components rollers and axles. Prepare the MRP tables of all items.

Skateboard assembly

Material Inventory

Product Structure / Bill-of-matreial (BOM)

Item A: Skateboard

Material Inventory

Item B: Board

Item C: Roller-set

Item D: Roller

Item E: Axle

Bill of Material (BOM)


Parent of B and C

Level 0

A B[1]

Components of A

C[2]

Level 1

2 units of C, and 1 unit of B to make 1 unit of A

D[2]
Level 2

E[1]

2 units of D, and 1 unit of E to make 1 unit of C

Master Production Schedule


Week A D 1 2 3 4 40 A 1 B 2 C 1 5 6 50 7 8 60 D 3 E 2 9 10 80

Item Lead time (weeks)

Inventory Master Parts File


Item A Current inventory levels 10 Lot size L4L
Material Inventory

B C 20 50 100 L4L

D 30 200

E 20 150

Work-in-process Inventory

Finished good Inventory

Open Orders Data


Scheduled Receipts (Due Dates) ITEM / WEEKS 1 2 3 4 5 6 7 A B 20 C 90 D 40 E 8 9

MRP table for item A


WEEKS 1 2 3 4 5 GR SR PIB 10 10 10 10 10 NR PR POR 40 6 7 50 0 0 40 40 8 9 10 80 0 0 0 80 80

80
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MRP table for item B


WEEKS 1 2
GR SR PIB NR PR POR

4 5 6 40

9 80 20 80 100

20 20 20 40 40 0 0

100
10

MRP table for item C


WEEKS 1 2 3 4 5 GR 80 SR 90 PIB 50 140 140 140 60 NR PR POR 6 7 8 9 160 0 100 100

60 60

60

100

11

MRP table for item D


WEEKS 1 GR SR PIB NR PR POR

4 40

8 9 260

40 30 30 70 30 30 30 30 170 170 230 400 400


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MRP table for item E


WEEKS 1 GR SR PIB NR PR POR

4 5

8 9 100

20 20 20 20 20 20 20 70 70 80 150 150
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MRP Outputs
Planned Orders (Release Dates) ITEM / WEEKS 1 2 3 4 5 6 7 A 40 B 100 C D E 8 9 80

100

400 150
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Capacity Requirement Planning to validate MRP


Planned Order Quantity Released at a given period may exceed the available capacity at that period. n Therefore POR quantities must be valid for shop capacity.
n

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Example for CRP


Item : Week POR C 1 0 2 3 4 5 60 20 150 0 Item: D Week 1 2 3 4 5 POR 70 30 50 100 120 Processing time = 0.25 hours /unit

Processing time = 0.3 hours /unit

They are produced in the same workstation: runs 8 hours /day and 5 days /week.

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Capacity Requirements
Week POR (C) Process time POR (D) Process time Capacity Req. Capacity Excess capacity Capacity shortage 40 17.5 = 22.5 hours 1 0 0.3 70 0.25 17.5 40 22.5 0 2 60 0.3 30 0.25 25.5 40 14.5 0 3 20 0.3 50 0.25 18.5 40 21.5 0 4 150 0.3 100 0.25 70 40 0 30 5 0 0.3 120 0.25 30 40 10 0 6 0 0.3 0 0.25 0 40 40 0
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0 x 0.3 + 70 x 0.3 = 17.5 hours

CRP
Capacity Req. Capacity 17.5 40 25.5 40 18.5 40 70 40 30 40 0 40

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Shifting lot to previous periods with excess capacity

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Splitting lot into two or more periods

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