7 - Manufacturing Resource Planning Dr. Ron Tibben-Lembke pp , 236-7, 240

How do we account for LT? 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

Fig units short

Fig 7.2 Order 50 units week earlier

Fig 7.2 Ending inventory

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

Figure Snow Shovel 1605 Snow Shovel 048 Scoop-shaft connector Top Handle Assy 314 scoop assembly 118 Shaft (wood) 062 Nail (4) Rivet (4)

314 scoop assembly Rivet (6) 019 Blade (steel) 2142 Scoop (aluminum)

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

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

BOM Explosion Example Need to make 100 shovels We are responsible for handle assemblies.

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

Net Requirements SchGrossNet Part DescriptionInvRecReqReq Top handle assy Top handle2225 Nail (2 required)450 Bracket Assy27-- Top bracket15-- Top coupling3915

Figure 7.5 SchGrossNet Part DescriptionInvRecReqReq Top handle assy Top handle Nail (2 required) Bracket Assy Top bracket15-- Top coupling3915

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

Figure 7.5 SchGrossNet Part DescriptionInvRecReqReq Top handle assy Top handle Nail (2 required) Bracket Assy Top bracket Top coupling

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!) (We ignore statistical fluctuations) Front schedule Cutting approach (Fig. 7.6) p. 231 Back schedule Fig. 7.7 p.232

Fig 7.8 – Top Handle Assy p. 233

Fig 7.8 – Top Handle Assy -2

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

457 Top Handle One handle for Each assembly

457 Top Handle

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

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

082 Nail (2 required) Two nails for Each assembly

082 Nail (2 required)

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

11495 Bracket Assembly One bracket for Each assembly

11495 Bracket Assembly One bracket for Each assembly

11495 Bracket Assembly One bracket for Each assembly

11495 Bracket Assembly

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

129 Top Bracket

129 Top handle bracket

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

1118 Top handle coupling

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

Homework DQ: 3, 7 Problems: 3,5,6,7