ACAT - Key issues of the case PDF

Preview

Summary

Key issues of the case ...

Description

MRP: MRP stands for material requirement planning. This is an IT led tool used at the organization for adequate planning of the material and its requirements to meet the organization production schedule. This MRP helps to get the desired purchase plan to meet requirements of parts at the plant for its production schedule as per customer requirements. Describe the MRP framework, including major inputs required and outputs. MRP framework: MRP framework is defined as a framework which consists of all the system process, inputs, outputs, resources details, customer demand, plant schedules etc so that the MRP can be worked out with usage of all key parameters for the organization. What is the purpose of MRP and what are the major benefits? Purpose of MRP: The purpose of MRP is to work out the effective material requirement plan for the organization such that it contains all the parts which are required to meet the customer demand/ plant schedule along with their quantity required for each parts for a given month or given time period. The purpose it have proper plan which does not call for higher purchase or lower purchase. MRP gives the same number of quantity for each raw material which is required for the given time period. Major Benefits of MRP: Following are the major benefits of the MRP as below  MRP gives correct quantity for the purchase of raw materials  MRP uses low time to calculate the plan  High accuracy levels than manual options  System based calculation avoids human dependency  Can be calculated multiple times. How to develop an MRP schedule? Develop an MRP schedule for P0110, including all components. Develop a MRP schedule: MRP schedule can be developed for the organization by collecting all the key informations required for running the MRP.  Customer demand,  Plant production schedule  Dispatch Plan  Bill of materials  Safety stock  Alternate material details So based on the above key information, as MRP can be run for the organization and it will provide the output as the material requirement plan for the organization. Develop an MRP schedule for P0110, including all components: For the P0110, we need following details as below P0110 - Customer demand, P0110 - Plant production schedule P0110 - Dispatch Plan P0110 - Bill of materials P0110 - Safety stock So based on above key information for the P0110 product , the MRP can be worked out, which will provide the purchase plan to meet the demand of P0110 product for the given time period.     ...