1. 7 - Manufacturing Resource Planning Dr. Ron Tibben-Lembke pp. 222-234, 236-7, 240

2. How do we 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 I’ve added “Net requirements” and “scheduled releases” rows to Figure for clarity

3. Fig 7.2 6 units short

4. Fig 7.2 Order 50 units week earlier

5. Fig 7.2 Ending inventory

6. 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

7. Figure 7.3 1605 Snow Shovel 1605 Snow Shovel 048 Scoop-shaft connector 13122 Top Handle Assy 314 scoop assembly 118 Shaft (wood) 062 Nail (4) 14127 Rivet (4)

8. 314 scoop assembly 14127 Rivet (6) 019 Blade (steel) 2142 Scoop (aluminum)

9. 13122 Top Handle Assembly 1118 Top handle Coupling (steel) 11495 Welded Top handle bracket Assembly 13122 Top Handle Assembly 457 Top handle (wood) 129 Top Handle Bracket (steel) 082 Nail (2)

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

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

12. 13122 Top Handle Assembly 1118 Top handle Coupling (steel) 11495 Welded Top handle bracket Assembly 13122 Top Handle Assembly 457 Top handle (wood) 129 Top Handle Bracket (steel) 082 Nail (2)

13. Net Requirements SchGrossNet Part DescriptionInvRecReqReq Top handle assy25--10075 Top handle2225 Nail (2 required)450 Bracket Assy27-- Top bracket15-- Top coupling3915

14. Figure 7.5 SchGrossNet Part DescriptionInvRecReqReq Top handle assy25--10075 Top handle22257528 Nail (2 required)45015096 Bracket Assy27--7548 Top bracket15-- Top coupling3915

15. 13122 Top Handle Assembly 1118 Top handle Coupling (steel) 11495 Welded Top handle bracket Assembly 13122 Top Handle Assembly 457 Top handle (wood) 129 Top Handle Bracket (steel) 082 Nail (2)

16. Figure 7.5 SchGrossNet Part DescriptionInvRecReqReq Top handle assy25--10075 Top handle22257528 Nail (2 required)45015096 Bracket Assy27--7548 Top bracket15--4833 Top coupling391548--

17. Timing of Production This tells us how many of each we need Doesn’t tell when to start Start as soon as possible? Dependent events (oh no, not that!) Front schedule Cutting approach (Fig. 7.6) Back schedule Fig. 7.7

18. Fig 7.8 – 13122 Top Handle Assy p. 233

19. Fig 7.8 – 13122 Top Handle Assy-2

20. Fig 7.8 – 13122 Top Handle Assy -3

21. 457 Top Handle One handle for Each assembly

22. 457 Top Handle

24. 082 Nail (2 required) Two nails for Each assembly

25. 082 Nail (2 required)

28. 11495 Bracket Assembly One bracket for Each assembly

29. 11495 Bracket Assembly One bracket for Each assembly

30. 11495 Bracket Assembly One bracket for Each assembly

31. 11495 Bracket Assembly

32. 129 Top Bracket

33. 129 Top handle bracket

34. 1118 Top handle coupling

37. Other considerations Safety stock if uncertainty in demand or supply quantity Don’t 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

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