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Material requirements planning (MRP)

The meaning and content of material requirements planning

Material requirement planning refers to an inverted plan based on the subordinate relationship and quantity relationship of materials at all levels of product structure, with each material as the planning object and the completion period as the time benchmark, and distinguishing the planning time sequence of each material according to the length of the previous period. It is a material planning management mode of industrial manufacturing enterprises. MRP is a practical technology, which works out the production plan of products according to market demand forecast and customer orders, then generates the production scheduling table according to products, forms the material structure table and inventory state of products, and calculates the demand and demand time of required materials by computer, thus determining the processing progress and ordering progress of materials.

Its main contents include customer demand management, product production plan, raw material plan and inventory record. Among them, customer demand management includes customer order management and sales forecast. By combining the actual number of customer orders with the scientific customer demand forecast, we can get what customers need and how much they need.

The main idea of material demand planning

MRP was put forward by American Inventory Association in the early 1960s. In the past, the inventory planning of enterprises usually used the order point method, and when the inventory level was lower than the order point, the order was started. This management method is suitable for stable material consumption, not for order production. With the development of computer technology, it is possible to manage materials into related requirements (dependent requirements) and independent requirements. Related Demands According to the bill of materials, inventory and production plan, the related demand schedule of materials can be made, and the required materials can be purchased in advance, which can greatly reduce the inventory.

Its main idea is:

1. Break the boundaries between product varieties and collections, and logically treat all products, spare parts, raw materials and middleware involved in the production process of enterprises as the same material;

2. Divide all materials into two types: independent demand and dependent demand. In MRP system, "material" is a broad concept, which generally refers to raw materials, work in process, purchased parts and products. All materials fall into two categories: independent requirements and related requirements.

Independent demand: If a demand has nothing to do with the demand of other products or parts, it is called independent demand. It comes from outside the enterprise, and its demand and demand time are determined by the external demand of the enterprise, such as products ordered by customers and spare parts used after sale. Its demand data is generally determined by forecasts and orders, and can be processed according to the order point method.

Related Requirements: If the requirements of one project depend on the requirements of other projects, then this requirement is related. It occurs in the manufacturing process and can be obtained by calculation. The demand for raw materials, blanks, parts and components comes from the manufacturing process and is related. MRP handles these needs.

For example: the relationship between cars and parts. Parts and materials of automobile products have dependent demand, because the total amount of parts and raw materials needed at any time is a function of automobile production. On the contrary, the demand for finished cars is an independent demand-cars are not part of anything else.

3. According to the demand time and quantity of products, the demand of various materials in different periods is determined by time period.

Basic principles of material requirements planning

The basic principle of MRP is to calculate the production time and quantity of each part of the main product layer by layer from the main production plan and the hierarchical structure of the main product. Call this plan a material requirements plan. Among them, if the spare parts are produced by the enterprise, the production time should be arranged in advance according to their respective production time to form the production plan of the spare parts; If spare parts need to be purchased from outside the enterprise, the time and purchase quantity of each order should be determined in advance according to their respective order lead times, thus forming a purchase plan. If we produce according to these production plans and purchase according to the purchase plan, we can realize the production plan of all parts, which not only ensures the delivery time of products, but also reduces the inventory of raw materials and the occupation of working capital.

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