Material Requirements Planning
The fundamentals of MRP and how to build a sound foundation
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Material Requirements Planning e-Book details - a practical, down to earth, run through the logic of material requirements planning which underpins all MRPII (manufacturing resource planning) and ERP (enterprise resource planning) systems. The e-Book explains how the process works, step by step and how to set up the process to provide the level of control you require. The book starts from the requirements for the input information and then shows how you can use the basic planning parameters of lead times, order policies and safety stock to manage and control the flow of information through the system. Finally the e-Book explains re-planning techniques to optimise and fine tune the plan as external factors change.
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Cumulative Lead Time
The importance of the cumulative lead time from a material planning point of view is that beyond the cumulative lead time, changes to the schedules can be accommodated without disrupting the flow of any active purchase orders or works orders at least from a material point of view. Inside the cumulative lead time changes may not be possible due to a shortage of one or more components and even those changes that are possible could cause disruption to current works orders, planned orders and/or purchase orders. Large increases to the schedule inside the cumulative lead time for one customer may therefore have a detrimental effect on other customers. Large reductions in schedules can result in surplus material and idle capacity.
It is important to notice that the cumulative lead time includes the lead time of purchased items. It is a measure of the importance of relationships with vendors to note that your vendors’ lead times, as part of the cumulative lead times, are integral to your planning process. Changes to a purchased part’s lead time affect the cumulative lead time of all parts that use the part. Purchase lead times are often longer than internal lead times.
This e-book plus 10 more like it can be purchased together in the compendium book "Business Excellence - the integrated solution to manufacturing planning and control" price £24.90, about 45US$ / €37. . . more details