Manufacturing & Planning Project
EXECUTIVE SUMMARY
One of the critical drivers of supply chain success is effective customer demand planning which begins with accurate forecasts. To improve its customer forecasting and planning organizations establish a core business process called Customer Demand Planning (COP). The COP is a business planning process enabling sales teams to develop demand forecasts as input to manufacturing planning and control. The whole process has been termed as Demand Management. "Manufacturing organizations, whatever their products, face the same daily practical problem - that customers want products to be available in a shorter time than it takes to make them. This means that some level of planning is required." Companies need to control the types and quantities of materials they purchase, plan which products are to be produced and in what quantities and ensure that they are able to meet current and future customer demand, all at the lowest possible cost. Making a bad decision in any of these areas will make the company lose money. The demand management gives the expected level of demand for the company 's goods or services throughout some future period and is· usually an instrument in the company 's planning and control decisions. Demand forecasting follows all the activities of scheduling, dispatching material requirement planning (MRP), bill of material (BOM) and master production schedule (MPS).
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CHAPTER 1
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INTRODUCTION TO PROJECT
The scope of MRP in manufacturing The basic function of MRP system includes inventory control, bill of material processing and elementary scheduling. MRP helps organizations to maintain low inventory levels. It is used to plan manufacturing, purchasing and delivering activities. "Manufacturing organizations, whatever their products, face the same daily practical problem - that customers want products to be available in a shorter time than it takes to make them. This means that some level of planning is required." Companies
One of the critical drivers of supply chain success is effective customer demand planning which begins with accurate forecasts. To improve its customer forecasting and planning organizations establish a core business process called Customer Demand Planning (COP). The COP is a business planning process enabling sales teams to develop demand forecasts as input to manufacturing planning and control. The whole process has been termed as Demand Management. "Manufacturing organizations, whatever their products, face the same daily practical problem - that customers want products to be available in a shorter time than it takes to make them. This means that some level of planning is required." Companies need to control the types and quantities of materials they purchase, plan which products are to be produced and in what quantities and ensure that they are able to meet current and future customer demand, all at the lowest possible cost. Making a bad decision in any of these areas will make the company lose money. The demand management gives the expected level of demand for the company 's goods or services throughout some future period and is· usually an instrument in the company 's planning and control decisions. Demand forecasting follows all the activities of scheduling, dispatching material requirement planning (MRP), bill of material (BOM) and master production schedule (MPS).
1
CHAPTER 1
2
INTRODUCTION TO PROJECT
The scope of MRP in manufacturing The basic function of MRP system includes inventory control, bill of material processing and elementary scheduling. MRP helps organizations to maintain low inventory levels. It is used to plan manufacturing, purchasing and delivering activities. "Manufacturing organizations, whatever their products, face the same daily practical problem - that customers want products to be available in a shorter time than it takes to make them. This means that some level of planning is required." Companies
Bibliography: Text Books Manufacturing planning and control systems by William L Berry Logistics management. The supply chain imperative by Vinod V Sople Supply chain Management by Rahul V Altekar ^ "Bill of Materials". Inventory Interface. Gerald Drouillard. December 28, 2001. Retrieved June 7, 2011 Links www.wikipedia.org/wiki/Material_requirements_planning www.wikipedia.org/wiki/Bill_of_materials http://cde.annauniv.edu/CourseMat/mba/sem2/dba1651/mrpii.htm http://www.internetslang.com/MRP-meaning-definition.asp http://www.indiamart.com/seema-infotech/mrp-application-systems.html 64 65