MRP(Materials Requirement Planning)

Question 1

CAPM

Answer 1

Computer Aided Production Management is about the use of computers to improve the effectiveness of production managers and the efficiency of their resources when decisions have to be made on what when and in what order to manufacture.

Question 2

MRP

Answer 2

Materials Requirement Planning
Only works when lead times are reliable and consistent, something that rarely happens in most manufacturing organisations, with production rescheduling constantly in response to customer demands
Limited to simple production systems, as it can’t recognise capacity constrains limits, where demand and product mix are relatively consistent and therefore lead times are constant.
Useful when dealing with purchased goods from reliable suppliers.

Question 3

MRP inputs and outputs

Answer 3

Inputs: Inventory Status Records, Product Structure Records (BOM) and Master Production Schedules (MPS)

Outputs: Purchase & Production Plans & Reports

Question 4

MRP primary reports

Answer 4

These concern production and inventory planning and control:

• A schedule of planned order indicating timing and amount of future orders
• Order releases which authorise execution of planned orders
• Changes to planned orders including revisions of due dates or order quantities as well as calculations of orders.

Question 5

MRP secondary reports

Answer 5

Secondary reports concern things such as performance control, planning and exceptions:
Performance control reports used to evaluate system operation.
Planning reports used in forecasting future inventory requirements.
Exception reports used to recognise major discrepancies.