1. INVENTORY CONTROL OF MANUFACTURING SYSTEMS Prof. Dr. Orhan TORKUL Res. Assistant M. Raşit CESUR

2. Master Scheduling Vollman, Whybark and Berry define master scheduling as the anticipated build schedule for manufactured end products. The master schedule is not the spesific result of a sales forecast. It is a statement of a scheduled production that is likely to satisfy anticipated demand. The master schedule indirectly determines the demands and related procurement schedules for all production components contained in the end items being produced.

3. Material Requirements Planning An explosion – based inventory system known as material requirements planning (MRP) faciliates the determination of procurement and production of production components. MRP examines the assembly relationships between the component parts of an end item being produced. These relationships between the component parts of an end item being produced. These schedules ensure that sufficient components and subassemblies will be produced at the right time and in the right quantitiesto satisfy forecasted demands for end items.

4. Bill of Materials Bill of materials (BOM) is a structure that provides assembly relations between product parts and components. TOP PLATE PVC SKIRT LEG CHIPBOARD COFFEE TABLE

5. Bill of Materials ParentChildAmounth COFFEE TABLE TOP PLATE1 Unit LEG4 Units SKIRT4 Units TOP PLATE CHIPBOARD0.64 m 2 PVC3.2 m LEG WOODEN BAR1 Unit SCREW2 Units SKIRT CHIPBOARD0.06 m 2 PVC0.6 m

6. Why Bill of Materials? List of materials are given below for coffee table manufacturing; This list is only used for calculating material needs. Every component of production should be determined to monitor every stage of manufacturing. MALZEMEMİKTAR CHIPBOARD0.88 m 2 PVC5.6 m WOODEN BAR4 Units SCREW8 Units

7. Why Bill of Materials? For instance, there is 30 top plates are manufactured, by using its raw materials chipboard and PVC, of 60 coffee tables order. Every component is needed to be defined to monitor amounth of product components manufactured in the 2. day. The material list in the previous slide can’t be used for monitoring, because it doesn’t contain compounds of product like top plate.

8. Product Explosion ParentChildAmounthMaterial Requirements COFFEE TABLE TOP PLATE1 Unit LEG4 Units SKIRT4 Units TOP PLATE CHIPBOARD0.64 m 2 PVC3.2 m LEG WOODEN BAR1 Unit (for 1 leg)4 Units (for 4 legs) SCREW2 Units8 Units SKIRT CHIPBOARD0.06 m 2 0.24 m 2 PVC0.6 m2.4 m

9. Product Explosion Product explosion is to calculate the amuonth of materials that is needed for production. To produce 1 coffe table, 1 top plate and 4 legs are needed. To produce 1 leg, 0.64 m 2 chipboard and 3.2 m PVC are needed. To produce 1 leg, 1 wooden bar and 2 screw are needed. We need to produce 4 legs to produce a coffee table, so 4 wooden bars and 8 screws are needed. To produce 4 curtain, 0.24 m 2 chipboard and 2.4 m PVC are needed.

10. Consisting Master Production Schedule… MPS is a plan contains amounts of products and its components related to terms. PRODUCTWeek 1Week 2Week 3Week 4Week 5Week 6Week 7Week 8 COFFEE TABLE1518131617192125 TOP PLATE1518131617192125 SKIRT60725264687684100 LEG60725264687684100

11. Consisting Master Production Schedule… The reason that product components exist in MPS with products is the state that components can be manufactured independently from customer order. Because of this reason, amounth of components that will be manufactured can’t be related to products’ amounth. For example, assume top plate as slowest manufactured component. If top plate is manufactured and inventoried in periods when demand for coffee table is low, there will be no need to much time for coffe table manufacturing when demand increased. In that period, only leg and curtain are manufactured. So it is utilized more from its manufacturing capacity.

12. Consisting Pruchase Orders… After consisting MPS, MRP is run. While MRP is running, it considers inventory and end of period levels. It calculates the amounth of components needed to be manufactured and material requirements. Purchase orders are generated according to materials requirements.

13. MRP Example MaterialWeek 1Week 2Week 3Week 4Week 5Week 6Week 7Week 8 COFFEE TABLE MPS1518131617192125 End of period33355566 Gross Req.1821162122242731 Inventory103335556 Requirements818131817192225 TOP PLATE MPS818131617192125 End of period00000000 Gross Req.818131617192125 Inventory00000000 Requirements818131817192225

14. MRP Example MaterialWeek 1Week 2Week 3Week 4Week 5Week 6Week 7Week 8 COFFEE TABLE MPS1518131617192125 End of period33355566 Gross Req.1821162122242731 Inventory103335556 Requirements818131817192225 LEG MPS32725272687688100 End of period00000000 Gross Req.32725272687688100 Inventory00000000 Requirements32725272687688100

15. MRP Example MaterialWeek 1Week 2Week 3Week 4Week 5Week 6Week 7Week 8 COFFEE TABLE MPS1518131617192125 End of period33355566 Gross Req.1821162122242731 Inventory103335556 Requirements818131817192225 SKIRT MPS32725272687688100 End of period00000000 Gross Req.32725272687688100 Inventory00000000 Requirements32725272687688100

16. MRP Example MaterialWeek 1Week 2Week 3Week 4Week 5Week 6Week 7Week 8 CHIPBOARD (TOP PLATE + SKIRT) MPS7.0415.8411.4415.8414.9616.7219.3622 End of period00000000 Gross Req.7.0415.8411.4415.8414.9616.7219.3622 Inventory50000000 Requirements2.0415.8411.4415.8414.9616.7219.3622 PVC (TOP PLATE + SKIRT) MPS44.8100.872.8100.895.2106.4123.2140 End of period00000000 Gross Req.44.8100.872.8100.895.2106.4123.2140 Inventory00000000 Requirements44.8100.872.8100.895.2106.4123.2140

17. MRP Example MaterialWeek 1Week 2Week 3Week 4Week 5Week 6Week 7Week 8 WOODDEN BAR MPS32725272687688100 End of period00000000 Gross Req.32725272687688100 Inventory00000000 Requirements32725272687688100 SCREW MPS64144104144136152176200 End of period00000000 Gross Req.64144104144136152176200 Inventory00000000 Requirements64144104144136152176200

18. THANKS