MBA 2nd Sem Lacture Note - 05
MBA 2nd Sem Lacture Note - 05
Department of Mathematics
The following topics I will teach you and rest of the syllabus will be covered by Dr. Abhijit Baidya Sir.
1. Layout designing, product, process & cellular layout, assembly line balancing, service layouts.
2. Aggregate plans and master production schedules, MRP, MRP II, lot-sizing, MPS, operations scheduling,
priority rules & techniques, work centre & personnel scheduling.
3. Inventory management, types, models, systems, inventory control.
4. Fundamentals of quality management, TQM philosophy, introduction to six-sigma
5. Design and use SQC charts [process capability, x-bar, R, p and c-charts, acceptance sampling.
6. Facets of world class manufacturing, lean manufacturing aspects
1. Explain the term MRP – 1. What are the scope and objective of MRP – 1?
Material Requirements Planning (MRP) is a software based production planning and inventory control system
used to manage manufacturing processes. Although it is not common nowadays, it is possible to conduct MRP by
hand as well.
MRP is a tool to deal with these problems. It provides answers for several questions:
What items are required?
How many are required?
When are they required?
MRP can be applied both to items that are purchased from outside suppliers and to sub-assemblies, produced
internally, that are components of more complex items. The data that must be considered include:
The end item (or items) being created. This is sometimes called Independent Demand.
How much is required at a time.
When the quantities are required to meet demand.
Shelf life of stored materials.
Inventory status records.
Bills of materials i.e. details of the materials, components and subassemblies required to
make each product.
Planning Data i.e. this includes all the restraints and directions to produce the end items.
This includes such items as: Routings, Labor and Machine Standards, Quality and Testing
Standards, Pull/Work Cell and Push commands, Lot sizing techniques (i.e. Fixed Lot
Size, Lot-For-Lot, Economic Order Quantity), Scrap Percentages, and other inputs.
2. Explain the term MRP – II. What is the purpose, key functions and features of MRP – II?
Manufacturing Resource Planning (MRP II) is defined by APICS (American Production and Inventory
Control Society, Estd. 1957) as a method for the effective planning of all resources of a manufacturing company.
Ideally, it addresses operational planning in units, financial planning in dollars, and has a simulation capability to
answer "what-if" questions and extension of closed-loop MRP.
This is not exclusively a software function, but a marriage of people skills, dedication to data base accuracy,
and computer resources. It is a total company management concept for using human resources more productively.
Following are the lists of basic modules which are part of an MRP – II:
A computer system
Bill of Materials (BOM) (Technical Data)
Capacity planning or Capacity Requirements Planning (CRP)
Cost Reporting / Management (Cost Control)
Distribution Resource Planning (DRP)
Inventories & Orders (Inventory Control)
Item Master Data (Technical Data)
Manufacturing control system
Master Production Scheduling (MPS)
Material Requirements Planning (MRP)
Production Resources Data (Manufacturing Technical Data)
Purchasing Management
Sales & Purchase System
Shop Floor Control (SFC)
Standard Costing (Cost Control)
Purpose of MRP – II
MRP II integrates many areas of the manufacturing enterprise into a single entity for planning and control
purposes, from board level to operative and from five-year plan to individual shop-floor operation. It builds on
closed-loop Material Requirements Planning (MRP) by adopting the feedback principle but extending it to
additional areas of the enterprise, primarily manufacturing-related.
4. Write down the approaches for aggregate planning? What are the inputs and outputs of aggregate planning?
6. What are the guidelines for master scheduling? Write down the symptoms of a poor designed MPS?
Assignment problems:
************