Slide MGT209 Slide14

Operations
Management
Material Requirements
Planning (MRP) & ERP
Chapter 14
Transparency Masters to accompany Heizer/Render –
Principles of Operations Management, 5e, and
Operations Management, 7e

14-1

© 2004 by Prentice Hall, Inc. Upper Saddle River,
N.J. 07458

Outline
 GLOBAL COMPANY PROFILE:
COLLINS INDUSTRIES
 DEPENDENT INVENTORY MODEL
REQUIREMENTS







Master Production Schedule
Bills of Materials
Accurate Inventory records
Purchase Orders Outstanding
Lead Times for Each Component

 MRP STRUCTURE
Transparency Masters to accompany Heizer/Render –
Principles of Operations Management, 5e, and
Operations Management, 7e

14-2

© 2004 by Prentice Hall, Inc. Upper Saddle River,
N.J. 07458

Outline - Continued
 MRP MANAGEMENT



MRP Dynamics
MRP and JIT

 LOT-SIZING TECHNIQUES
 EXTENSIONS IN MRP




Closed-Loop MRP
Capacity Planning
Material Requirements Planning II (MRP
II)

 MRP IN SERVICES

Transparency Masters to accompany Heizer/Render –
Principles of Operations Management, 5e, and
Operations Management, 7e

14-3

© 2004 by Prentice Hall, Inc. Upper Saddle River,
N.J. 07458

Outline - Continued
 DISTRIBUTION RESOURCE
PLANNING (DRP)
 ENTERPRISE RESOURCE
PLANNING (ERP)



Advantages and Disadvantages of
ERP System
ERP in the Service Sector

Transparency Masters to accompany Heizer/Render –
Principles of Operations Management, 5e, and
Operations Management, 7e

14-4

© 2004 by Prentice Hall, Inc. Upper Saddle River,
N.J. 07458

Learning Objectives
When you complete this chapter,
you should be able to :
Identify or Define:





Planning bills and kits

Phantom bills
Low-level coding
Lot sizing

Transparency Masters to accompany Heizer/Render –
Principles of Operations Management, 5e, and
Operations Management, 7e

14-5

© 2004 by Prentice Hall, Inc. Upper Saddle River,
N.J. 07458

Learning Objectives Continued
When you complete this chapter,
you should be able to :
Describe or Explain:







Material requirements planning
Distribution requirements planning
Enterprise resource planning
How ERP works
Advantages and disadvantages of
ERP systems

Transparency Masters to accompany Heizer/Render –
Principles of Operations Management, 5e, and
Operations Management, 7e

14-6

© 2004 by Prentice Hall, Inc. Upper Saddle River,
N.J. 07458