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MATERIAL REQUIREMENTS PLANNING Training Course

Most organizations have invested or are about to invest millions of dollars on an MRP or ERP system (in an ERP system, MRP is the main operating module). Once the system is in place, the employees are expected to use it correctly and achieve the desired results that prompted the large investment. The training they received is about what “key-strokes” would bring up a certain “screen”. Seldom are they trained in what “screen” they actually need, or their ability to modify what they see into a “tool” that they can actually use. They have not been properly trained in the use of the MRP/ERP system. The ongoing use of this tends to cause irratic errors because they are not aware of “what are the collateral impacts of my actions or lack of actions.”

This course provides that needed knowledge to MRP/ERP users.

Course Content Overview:

This course examines data inputs of the material requirements planning (MRP) system; Master Schedule, Inventory Information, Bills of Material, and various Planning Data (routings, Standards, Yield, Lead Times, etc.) plus how the MRP logic works both alone and as a part of the ERP system.

Material Requirements Planning Course Outline:

Outline Introduction--This session provides the participants with a definition of MRP and explains how master planning and MRP tie together. It describes how MRP determines items needed to meet requirements of the MPS, schedules the order to produce or manufacture these items, and then time phases the schedule of orders for items so they arrive when needed for production. The participants see how MRP is both an ongoing process, since it must reflect changes as rapidly as possible, and a priority planning system that initiates revised order actions to keep order priorities current.

Bills of Material: This session explains the procedures for developing a BOM file. It also identifies the various departments and systems that commonly use the BOM, and describes the ways that information from the BOM file may be formatted and structured to accommodate the specific information needs of different users. Finally, this session describes the procedure for maintaining BOMs.

Sources of MRP Input: This session identifies and describes the four main sources of information needed to perform MRP and discusses the specific information on input that each source provides to the MRP system.

Developing a Material Requirements Plan: This session presents a brief review of the data needed to develop MRP and explains the procedure for developing MRP through two detailed examples. Participants also learn how the validity of MRP depends on the accuracy of the inputs to the plan.

Policies, Capabilities, and Methods: This session describes the policies to be put in place to guide the operation of the MRP system. The participants learn how these policies influence how they plan material quantities, as well as how they determine the frequency of replanning or revising the MRP. Finally, this session discusses MRP system capabilities and explains several methods that can be used to determine order quantity.

Executing the Material Requirements Plan: Throughout this course, the participants learn that MRP is a time-phased scheduling process. They see that the primary output of this process is a network of schedules that plan the start and completion dates of purchase and manufacturing orders for materials needed to manufacture the quantities of items listed on the MPS. This ability to plan orders over the entire planning horizon is the most important feature of an effective MRP system. In this final section, the participants learn that it is their job to review and manage this process. The participants learn their major responsibilities when reviewing and managing the order planning process so that order due dates are met. They also see the procedures they must follow for releasing planned orders to purchasing or production.

Tailoring the MRP “screens” to your needs: The ability to adapt the MRP/ERP current screens to fulfill the needs of the users WITHOUT having any “code” written or causing problems for other system users is provided. This section evolves the participant from an “MRP user” into an “MRP OWNER”.

Objectives--Upon successful completion of this course, the participant will be able to:

Identify the major activities of the MRP process.
Identify departments or systems that use the BOM and the basic requirements of each BOM user.
List BOM formats and structuring techniques.
List the basic characteristics and functions of the master production schedule (MPS).
State how data from the MPS are used in MRP.
State the differences between independent and dependent demand.
List independent demand items that may not be included on the MPS.
State the procedure for handling independent demand when performing MRP.
State how data from the inventory files are used by MRP.
State how data from the BOM file are used by MRP.
List the four main sources of MRP input.
List the inputs that should be gathered from each source.
List the four basic steps in the procedure for developing a material requirements plan.
Develop a material requirements plan.
Recognize the differences between the “update”, “net change”, and “regeneration” options.
Provide input in determining how frequently to “Regenerate” the material requirements plan.
Determine the correct planning horizon for an item with a given cumulative lead time.
Describe how the firm planned orders are used.
Use the “pegging” and “allocation” capabilities.
Decide between using “static” and “dynamic” lot-sizing methods.
Identify characteristics of commonly used static and dynamic lot-sizing methods.
List practical factors to consider when determining lot size and safety stock quantities.
Review mature planned orders.
Release manufacturing and purchase orders.
Manage planned changes Identify and resolve material problems.

Who Should Attend?

This course is designed for all members of Materials and Production Planning and Control

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