MRP / BOM
Materials requirements planning (MRP) is a means for determining the number of parts, components, and materials needed to produce a product
MRP provides time scheduling information specifying when each of the materials, parts, and components should be ordered or produced
Dependent demand drives MRP
MRP is a software system
Based on a master production schedule, a material requirements planning system:
Creates schedules identifying the specific parts and materials required to produce end items
Determines exact unit numbers needed
Determines the dates when orders for those materials should be released, based on lead times
Master Production Schedule (MPS)Time-phased plan specifying how many and when the firm plans to build each end item
Bill of Materials (BOM) File A Complete Product Description
Materials
Parts
Components
Production sequence
Modular BOM
Subassemblies
It will show you quantity changes details, unit changes,details, component changes details & other with date and ,time.
during design phase designer maintain group bom then assign to one or all plants.
and if bom created eith out ref to plant, bom valid through all plants
BOM IS A multilevel,we can assign bom level by level cs11,
level 1 bom header material assembly level, contains components which also have bom contains
level 2 bom sub assembly level
last lower level is level 3 components level .
There are different methods of doing product cost estimate.
e.g., Std. cost estimate or variable cost estimate.
From the BOM and routing the total no of components used for that product is calculated using the price mentioned in accouting views and from routings each operation cost is calculated from the activity types defined in workcenters.
Collectively this cost is displayed in Product cost estimate as cost of manufacture
In case of variable cost, all the variables are considered for the production order and the actuals are considered for calculating the product cost. It is also posible to have cost estimates and actual costs from which we can find the variances.
Primary MRP Reports
Planned orders to be released at a future time
Order release notices to execute the planned orders
Changes in due dates of open orders due to rescheduling
Cancellations or suspensions of open orders due to cancellation or suspension of orders on the master production schedule
Inventory status data
Secondary MRP Reports
Planning reports, for example, forecasting inventory requirements over a period of time
Performance reports used to determine agreement between actual and programmed usage and costs
Exception reports used to point out serious discrepancies, such as late or overdue orders
MRP provides time scheduling information specifying when each of the materials, parts, and components should be ordered or produced
Dependent demand drives MRP
MRP is a software system
Based on a master production schedule, a material requirements planning system:
Creates schedules identifying the specific parts and materials required to produce end items
Determines exact unit numbers needed
Determines the dates when orders for those materials should be released, based on lead times
Master Production Schedule (MPS)Time-phased plan specifying how many and when the firm plans to build each end item
Bill of Materials (BOM) File A Complete Product Description
Materials
Parts
Components
Production sequence
Modular BOM
Subassemblies
It will show you quantity changes details, unit changes,details, component changes details & other with date and ,time.
during design phase designer maintain group bom then assign to one or all plants.
and if bom created eith out ref to plant, bom valid through all plants
BOM IS A multilevel,we can assign bom level by level cs11,
level 1 bom header material assembly level, contains components which also have bom contains
level 2 bom sub assembly level
last lower level is level 3 components level .
There are different methods of doing product cost estimate.
e.g., Std. cost estimate or variable cost estimate.
From the BOM and routing the total no of components used for that product is calculated using the price mentioned in accouting views and from routings each operation cost is calculated from the activity types defined in workcenters.
Collectively this cost is displayed in Product cost estimate as cost of manufacture
In case of variable cost, all the variables are considered for the production order and the actuals are considered for calculating the product cost. It is also posible to have cost estimates and actual costs from which we can find the variances.
Primary MRP Reports
Planned orders to be released at a future time
Order release notices to execute the planned orders
Changes in due dates of open orders due to rescheduling
Cancellations or suspensions of open orders due to cancellation or suspension of orders on the master production schedule
Inventory status data
Secondary MRP Reports
Planning reports, for example, forecasting inventory requirements over a period of time
Performance reports used to determine agreement between actual and programmed usage and costs
Exception reports used to point out serious discrepancies, such as late or overdue orders
