“The Role of MRP Systems in a Lean Plant”
Description
A MRP system (Material Requirements
Planning) is responsible to orchestrate the flow of material
outside the boundaries of a workstation. A Pull/KANBAN is a
simple manual MRP method to orchestrate the flow of material
and works well when few variations in the flow are required.
The need to orchestrate the flow of material outside the
boundaries of a plant is best done with electronic
communications. The overall cost of a product is dependent on
the overall cost of the supply chain. An effective computer
controlled MRP system orchestrates the supply chain and must
therefore be aligned with the plant floor and manual MRP
methods or it is of little value and can actually add
overhead.
If you can envision that a lean plant floor looks like a level
flow of water in a stream, you can see that material flows
like the water flows. Dams along the stream are warehouses;
rocks in the stream are buffers; curves in the stream are like
transportation routes which increase lead-time,
work-in-process and act like a buffer. The cost of the supply
change can be calculated by looking at the length of the
stream, flow rate and volume of the water in the stream. If
the stream is too long a manufacturer cannot be flexible. If
the volume of inventory is too great a manufacturer cannot be
price competitive and profitable.
The class teaches MRP tools and methods
to help individuals visualize and understand how a supply
chain should look and measure its competitiveness.
Objectives/Topics
Ø
History of MRP, MRPII and ERP
Ø
Demonstrate how a KANBAN system works
Ø
Demonstrate how a pull system works
Ø
Define the material characteristics that cause
Pull/KANBAN methods to fail
Ø
Define the data elements and parameters for
material flow calculations
o
Material On-Hand
o
Material In-transit
o
Order Multiples
o
Delivery Patterns
o
Safety Stock measured in hours
o
Scheduled Orders
o
Bills of materials
o
Plant layouts and the point of application
Ø
Demonstrate the results of hourly and daily MRP
calculations
Ø
Show how to measure an improved value stream map
Ø
Define the role of MRP, MRPII, and ERP in a lean
environment
Simulation
The class features a hands-on simulation
of a value stream map using an excel spreadsheet. A value
stream case study is used to show the calculated savings after
a successful value stream-mapping event. By charting and
graphing projected on-hand balances in the supply chain the
participant gets a clear understanding of how MRP, Pull/Kanban
and Cellular/Flow manufacturing works together to make a lean
continuous improving organization better.
Course Length
1 day
Class Size
4 – 6 participants
Cost
$3,000 for entire class
$750 per person for open enrollment
Agenda
9:00AM
10 MIN
Introduction
20 MIN
History of MRP, MRPII and ERP
20 MIN
Describe external and internal delivery methods
Show visual of external and internal delivery methods
20 MIN
Define the data elements and parameters for material
flow calculations
§
Material On-Hand
§
Material In-transit
§
Order Multiples
§
Delivery Patterns
§
Safety Stock measured in hours
§
Scheduled Orders
§
Bills of materials
§
Plant layouts and the point of application
10:10 BREAK
10:30 Internal Delivery Methods
20 MIN
Overview and Demonstration of a KANBAN System
Describe characteristics of parts for KANBAN
How can KANBAN methods fail?
Demonstration will include a flow chart and live skit
demonstration
Tools: 4 totes, 3 cards
Option: Video of KANBAN at MBUSI
Define variables that are used to determine how many
cards are needed
Demonstrate how a system can calculate the number of
cards needed
20 MIN
Overview and Demonstration of a Pull System
Describe characteristics of parts for Pull System
How can pull systems fail?
Demonstration will include a flow chart and live skit
demonstration
Tools: 4 totes, Pull List
Define variables that are used to determine how many
cards are needed
Demonstrate how a system can calculate the number of
cards needed
20 MIN
Overview and Demonstration of an Internal Broadcast
System
Describe characteristics of parts for Broadcast System
How can broadcast methods fail?
Present flow chart of how a broadcast system works
Option: Video of Broadcast system at MBUSI
Define variables needed for broadcast system
Demonstrate how a system can generate broadcast signals
11:30 External Delivery Methods
10 MIN
Overview of a Cumulative parts ordering method
Describe characteristics of a CUM based system
Weakness of a CUM based system
10 MIN
Overview and Demonstration of a Pull Signal System
Describe characteristics of parts for a Pull Signal
Systems
How can Pull Signal methods fail?
Demonstration will include a flow chart and supply
schedule demo
Define variables that are used to calculate pull
signals
Show how inbound tracking of material is possible
10 MIN
Overview and Demonstration of an External Broadcast
System
Describe characteristics of parts for Broadcast System
How can broadcast methods fail?
Present flow chart of how a broadcast system works
Option: Video of Broadcast system at MBUSI
Define variables needed for broadcast system
Demonstrate how a system can generate broadcast signals
10
MIN
Explain how the same calculation methods can be used
for both internal and external delivery methods
12:10 Break for Lunch
1:00
Hourly –vs- daily calculations
30 MIN
Demonstrate the results of hourly and daily MRP
calculations
Show benefits of hourly calculation
120 MIN
Show how to measure and improve a value stream map
Cost elements will be reviewed including:
Packaging
Labeling
Scanning
Picking & Loading
Transportation routes
Cross Docking
Receiving
Storage Space Requirements
Warehouse Management
Inventory Management
Supply Chain Costing spreadsheet will be used to
compare costs
30 MIN
Revew Performance Metrics
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