Material Requirements Planning (MRP)

A production plan may be broken down into three major parts:

  1. The master production schedule (MPS)
  2. The material requirements planning system (MRP)
  3. The detailed shop schedule.

Each of these three parts is often complex. Remember that the aggregate planning level aggregates both products and resources. MPS and MRP are at the one lower tactical planning level: resources remain aggregated, but products are dealt with at the individual product level. MRP aggregates resources by simply assuming any product can be produced by waiting a given lead time. The detailed shop schedule takes the schedule proposed by MRP and produces from it a more realistic schedule that considers actual machine availability. Customer orders basically drive the MPS, which in turn drives MRP, which orders raw materials and production of various stages and quantities in order to meet demand in a timely fashion.

The control of the production system has three parts, each of which uses as input the output of the previous part:

  • Part A—Collect and integrate the information required to develop the master production schedule.
  • Part B—Determine the planned order releases using MRP.
  • Part C—Determine detailed shop floor schedules and resource requirements.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

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