MRP
While I primarily address the inbound flow of inventory (materials management), II adds other interfaces such as finance, marketing, and integrated logistics. Like I, II is a push inventory model which pushes product through manufacturing and distribution processes in order to meet forecast demand. However, it adds further dimensions to the basic model. II not only considers the inbound flow of material, but also how much material can actually be handle within the plant. Furthermore, it actually handles production scheduling, labour needs, inventory budgets, and personnel needs. But the most important feature is the addition of the finance interface. This module provides the ...
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II includes the entire set of activities involved in the planning and control of production operations. It consists of a variety of functions of modules and includes production planing, resource requirement planning, master production scheduling, materials requirements planning ( I), shop floor control, and purchasing.
Process of II
Step 1 - Market Demand; the process begins with an aggregation demand from all sources. Examples of sources are firms’ orders, forecasts, and safety stock requirements.
Step 2- Production Plan; with inputs from manufacturing, finance, and marketing, the production plan would be derived.
Step 3- Rough-cut capacity planning; it involves short-term capacity considerations that are affected by irregularities in demand. It formulates benchmarks for the proper use of personnel, machines, and shifts. Bills of capacity and bills of labour resources are the primary inputs to determine rough-cut capacity. In the event of incapability in producing the ...
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- Allowing more planning flexibility
- Minimization of workforce overtime
Problems in Implementation of MRP II
Implementation an MRP II system is a monumental effort. The system requires a tremendous amount of information, which must be accurate if the system is to be successful. The MRP II systems is capable of affecting all function within Forges’s marketing, production, purchasing, accounting, finance and logistic. All personnel who have any interaction with the MRP II system require training. Further, Forges must be committed to make the MRP II system work. The problems that occur in implementing MRP are frequently organizational and behavioral rather than technical.
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MRP. (2004, November 17). Retrieved April 28, 2024, from http://www.essayworld.com/essays/MRP/17637
"MRP." Essayworld.com. Essayworld.com, 17 Nov. 2004. Web. 28 Apr. 2024. <http://www.essayworld.com/essays/MRP/17637>
"MRP." Essayworld.com. November 17, 2004. Accessed April 28, 2024. http://www.essayworld.com/essays/MRP/17637.
"MRP." Essayworld.com. November 17, 2004. Accessed April 28, 2024. http://www.essayworld.com/essays/MRP/17637.
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