7 - Manufacturing Resource Planning

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7 - Manufacturing Resource Planning

• Dr. Ron Tibben-Lembke
• pp. 222-234, 236-7, 240

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How do we

• System for organizing WIP releases
• Consider LT for each item
• Look at BOM to see what parts needed
• Release so they will arrive just as needed
• Example Figure 7.2
• Order quantity is 50 units
• LT is one week
• Ive added Net requirements and scheduled
  releases rows to Figure for clarity

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Fig 7.2
6 units short
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Fig 7.2
Order 50 units week earlier
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Fig 7.2
Ending inventory
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Terminology

• Projected Available balance
• Not on-hand (that may be greater)
• Tells how many will be available (in ATP sense)
• Planned order releases ? scheduled receipts
• Only when material has been committed to their
  production
• Move to scheduled receipts as late as possible
• Preserves flexibility

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Figure 7.3 1605 Snow Shovel
1605 Snow Shovel
13122 Top Handle Assy
062 Nail (4)
048 Scoop-shaft connector
14127 Rivet (4)
314 scoop assembly
118 Shaft (wood)
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314 scoop assembly
314 scoop assembly
019 Blade (steel)
14127 Rivet (6)
2142 Scoop (aluminum)
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13122 Top Handle Assembly
13122 Top Handle Assembly
11495 Welded Top handle bracket Assembly
457 Top handle (wood)
1118 Top handle Coupling (steel)
129 Top Handle Bracket (steel)
082 Nail (2)
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BOM Explosion

• Process of translating net requirements into
  components part requirements
• Take into account existing inventories
• Consider also scheduled receipts

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BOM Explosion Example

• Need to make 100 shovels
• We are responsible for handle assemblies.

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13122 Top Handle Assembly
13122 Top Handle Assembly
11495 Welded Top handle bracket Assembly
457 Top handle (wood)
1118 Top handle Coupling (steel)
129 Top Handle Bracket (steel)
082 Nail (2)
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Net Requirements

• Sch Gross Net
• Part Description Inv Rec Req Req
• Top handle assy 25 -- 100 75
• Top handle 22 25
• Nail (2 required) 4 50
• Bracket Assy 27 --
• Top bracket 15 --
• Top coupling 39 15

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Figure 7.5

• Sch Gross Net
• Part Description Inv Rec Req Req
• Top handle assy 25 -- 100 75
• Top handle 22 25 75 28
• Nail (2 required) 4 50 150 96
• Bracket Assy 27 -- 75 48
• Top bracket 15 --
• Top coupling 39 15

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13122 Top Handle Assembly
13122 Top Handle Assembly
11495 Welded Top handle bracket Assembly
457 Top handle (wood)
1118 Top handle Coupling (steel)
129 Top Handle Bracket (steel)
082 Nail (2)
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Figure 7.5

• Sch Gross Net
• Part Description Inv Rec Req Req
• Top handle assy 25 -- 100 75
• Top handle 22 25 75 28
• Nail (2 required) 4 50 150 96
• Bracket Assy 27 -- 75 48
• Top bracket 15 -- 48 33
• Top coupling 39 15 48 --

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Timing of Production

• This tells us how many of each we need
• Doesnt tell when to start
• Start as soon as possible?
• Dependent events (oh no, not that!)
• Front schedule Cutting approach (Fig. 7.6)
• Back schedule Fig. 7.7

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Fig 7.8 13122 Top Handle Assy
p. 233
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Fig 7.8 13122 Top Handle Assy-2
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Fig 7.8 13122 Top Handle Assy -3
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457 Top Handle
One handle for Each assembly
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457 Top Handle
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457 Top Handle
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082 Nail (2 required)
Two nails for Each assembly
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082 Nail (2 required)
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082 Nail (2 required)
27
082 Nail (2 required)
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11495 Bracket Assembly
One bracket for Each assembly
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11495 Bracket Assembly
One bracket for Each assembly
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11495 Bracket Assembly
One bracket for Each assembly
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11495 Bracket Assembly
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129 Top Bracket
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129 Top handle bracket
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1118 Top handle coupling
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1118 Top handle coupling
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1118 Top handle coupling
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Other considerations

• Safety stock if uncertainty in demand or supply
  quantity
• Dont let available go down to 0
• Safety LT if uncertainty in arrival time of
  supply
• Place order earlier than necessary
• Order quantities
• EOQ, Lot-For-Lot, Periodic Order quantity, more
  to come in ch. 14

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Homework

• DQ 3, 7
• Problems 3,5,6,7