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Process Definition
The DEMAND PLAN
generated by the demand management in the form of planned independent
requirement becomes the input for MRP.
MRP Functions
MRP run performs
the following functions:
·
Material Requirement planning
i.e. calculating the quantities and dates of all the components to be procured.
·
Lead time scheduling i.e.
calculating the start and finish dates of all the operations and phases for the
assemblies to be produced in-house and pegging the component arrival dates with
the start date of the phases or operations.
At MYCOMPANY, lead
time calculation would incorporate Set-up time (time required to change the
filters and other parts when a grade or thickness of the film changes) and
Operation time (duration of the production run). On this basis, the system
would calculate the planned lead time.
·
MRP also calculates the
capacity loads for all the resources engaged in different phases and operations
and thus calculates the capacity requirements according to the operation hours
defined earlier in the Master Recipe.
Out-put of MRP
The output of MRP
is planned orders. A planned order is a request
created in the planning run for a plant to trigger the procurement of a plant
material for a certain quantity for a specific date. To generate a planned
order, the system would calculate the requirement for material
components, and generate a procurement proposal for them with the quantities
adopted from the BOM and Master Recipe. In addition of procurement proposals
generated in the system, capacity requirements would be generated as well
according to the operation hours defined earlier in the routing/master recipe.
For components,
however, the result of an MRP run could also be a Purchase requisition
depending upon the settings of parameters of the MRP run.
A purchase
requisition would be converted into a purchase order. However, planned orders
for raw and packing materials (if generated using MRP) would be converted into
a Purchase requisition first and then into a purchase order. Planned orders for
semi-finished and finished materials would be converted into Process order for
further execution.
MRP Process Flow (To-Be)
Process
|
Description
|
Process owner
|
Triggering event
|
Run MRP at plant
level
|
This function
would be carried out by the MRP Controller/ Planning Manager twice every
week. In the MRP run, system would perform the netting i.e. would calculate
the net requirement of all the materials existing at the plant that are
relevant to the Materials Requirement Planning by subtracting the stock at
hand and scheduled receipts from the total requirements of the materials. The
MRP run uses the BOM explosion to calculate the requirements of the
materials. The MRP run applies the lead time on top of the net requirements
to calculate the planned order release date.
|
MRP Controller/
Planning Manager Port Qasim plant
|
Routine business
practice
|
Based upon the
production plan; version 300 and the splitting of planned independent
requirements, the planning Manager would run MRP at the plant level.
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