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Material Requirement Planning (MRP) :

Overview :

Material Requirements Planning is a time phased priority-planning technique that calculates material requirements and schedules supply to meet demand across all products and parts in one or more plants. MRP Management System plays a major role in designing and implementing Material Requirements Planning systems and processes as it provides information about manufacturing needs (linked with market & sales demand) as well as information about inventory levels, pipeline. MRP techniques focus on optimizing inventory. MRP techniques are used to explode bills of material, to calculate net material requirements and plan future production. This report focuses on MRP. However, it also discusses, where appropriate, MRPII systems. MRPII stands for Manufacturing Resource Planning and represents an extension of MRP. MRPII points to computer-based planning and scheduling designed to improve management’s control of manufacturing and its support functions. MRPII maps an extension of MRP to capture all manufacturing requirements including materials, human resources, scheduling, etc

MRP objectives :

The main theme of MRP is “getting the right materials to the right place at the right time”. Specific organizational objectives often associated with MRP design and implementation may be identified among three main dimensions, namely: inventory, priorities and capacity

MRP BUSINESS REQUIREMENT OF ORION :

Step – I : a) Production Plan/FG requirement Sheet : Production Plan/FG requirement sheet is prepared before 25th of each & every month based on the following parameters :
1. Considering batch size of each product
2. National Stock (Factory + Depot Stock)
3. WIP Closing Stock (add to national stock for considering Total Stock)
4. Due WIP stock (PPIC ordered for production but not yet started and this is also considering into Total Stock)
5. Calculating "Total Stock”.
6. Considering Tentative sale for the remaining day of month(from 25th to end of month), this is detracted from Total Stock.
7. Considering reserved stock for the month, this is detracted from Total Stock.
8. Calculating “Useful Stock”.
9. Converting stock into day as “Day’s Stock” (h/o).
10. Determine batch to produce for the month
11. Determine Production Quantity.
12. Assume “Available Stock” after completion the production .
13. Converting Stock into day as “Day’s Stock”.
14. Sales Target For the Month
15. Standard Sales

MRP BUSINESS REQUIREMENT OF ORION :

Step – I : (a.1)
a.1 Production Plan – 1:
This Production Plan is prepared based on availability of material inventory or confirm pipeline considering the following parameters :
1. Considering batch size of each product
2. Due WIP stock (PPIC ordered for production but not yet
3. Determine number of batch to produce for first phase of the month (called as “Plan – 1”)
4. Weekly break down of stock available from pipeline).

MRP BUSINESS REQUIREMENT OF ORION :

Step – I : (a.2)
a.2 Production Plan – 2:
This Production Plan is prepared based on availability of material inventory or confirm pipeline considering the following parameters :
1. Considering batch size of each product
2. Due WIP stock (PPIC ordered for production but not yet
3. Determine number of batches to produce for second phase of the month (called as “Plan – 2”)
4. Instructing required week to produce
5. Defining short material list

MRP BUSINESS REQUIREMENT OF ORION :

Step – I :
b) Review of FG Transfer Plan :
Preparing FG Transfer Plan considering the following parameters :
1. Considering batch size of each product
2. WIP Closing Stock on 25th of month
3. Due WIP stock (PPIC ordered for production but not yet started).
4. Total WIP Stock
5. Calculating day’s stock based Standard Sales & WIP Stock.
6. Determining number of batches to produce.
7. Converting quantity in pack called “Production Qty By PPIC”.
8. Calculating day’s stock based Standard Sales & Production qty by PPIC.
9. To Add with proposed qty
10. Calculating day’s stock
11. Sales Target For the Month
12. Standard Sales

MRP BUSINESS REQUIREMENT OF ORION :

Step – 2 :
a) RM-Import Requisition Analysis :
Preparing RM-Import Requisition Analysis sheet considering the following parameters:
1. Own Godown Stock
2. Quarantine Stock.
3. L/C(Pipe line)
4. Total Stock.
5. Requirement of month (Based on FG Production Plan-1 & Plan-2).
6. Less Production.
7. Considering Export Requirement (if any export order).
8. Total Requirement.
9. Stock Left.
10. AVG Month Consumption.
11. Calculating day’s stock.
12. L/C due (not yet open L/C from earlier requisition).
13. Calculating day’s stock with LC Due.
14. Requisition Qty for the month

MRP BUSINESS REQUIREMENT OF ORION :

Step – 2 :
b) PM-Import Requisition Analysis :
Preparing PM-Import Requisition Analysis sheet considering the following parameters:
1. Own Godown Stock + Production Floor
2. Quarantine Stock.
3. L/C (Pipeline)
4. Total Stock.
5. Requirement of month (Based on FG Production Plan-1 & Plan-2).
6. Less Production.
7. Considering Export Requirement (if any export order).
8. Total Requirement.
9. Stock Left.
10. AVG Month Consumption.
11. Calculating day’s stock.
12. L/C due (not yet open L/C from earlier requisition).
13. Calculating day’s stock with LC Due.
14. Requisition Qty for the month

MRP BUSINESS REQUIREMENT OF ORION :

Step – 2 :
c) RM-Local Requisition Analysis :
Preparing RM-Local Requisition Analysis sheet considering the following parameters:
1. Own Godown Stock + Production Floor
2. Quarantine Stock.
3. P/O (Pipeline)
4. Total Stock.
5. Requirement of month (Based on FG Production Plan-1 & Plan-2).
6. Less Production.
7. Considering Export Requirement (if any export order).
8. Total Requirement.
9. Stock Left.
10. AVG Month Consumption.
11. Calculating day’s stock.
12. L/C due (not yet open L/C from earlier requisition).
13. Calculating day’s stock with LC Due.
14. Requisition Qty for the month

MRP BUSINESS REQUIREMENT OF ORION :

Step – 2 :
d) PM-Local Requisition Analysis :
Preparing PM-Local Requisition Analysis sheet considering the following parameters:
1. Own Godown Stock + Production Floor
2. Quarantine Stock.
3. P/O (Pipeline)
4. Total Stock.
5. Requirement of month (Based on FG Production Plan-1 & Plan-2).
6. Less Production.
7. Considering Export Requirement (if any export order).
8. Total Requirement.
9. Stock Left.
10. AVG Month Consumption.
11. Calculating day’s stock.
12. L/C due (not yet open L/C from earlier requisition).
13. Calculating day’s stock with LC Due.
14. Requisition Qty for the month

MRP BUSINESS REQUIREMENT OF ORION :

Step – 3 :
a) RM/PM-Import Short List for the Month:
Preparing RM/PM-Import short list for the month considering the following parameters:
15. L/C information.
16. Determining L/C Position.
17. Priority Setting indicating short month like Extremely Urgent or Urgent.
18. Setting necessary remarks

MRP BUSINESS REQUIREMENT OF ORION :

Step – 3 :
b) Tentative RM/PM-Import Short List for the Month:
Preparing Tentative RM/PM-Import short list for the month considering the following parameters:
1. Own Godown Stock + Production Floor
2. Quarantine Stock.
3. P/O (Pipeline)
4. Total Stock.
5. Requirement of month (Based on FG Production Plan-1 & Plan-2).
6. Less Production.
7. Considering Export Requirement (if any export order).
8. Total Requirement.
9. Stock Left.
10. AVG Month Consumption.
11. Calculating day’s stock.
12. L/C due (not yet open L/C from earlier requisition).
13. Calculating day’s stock with LC Due.
14. Remarks

MRP BUSINESS REQUIREMENT OF ORION :

Step – 4 :
a) FG Priority Assessment:
Preparing Priority Assessment for the month considering the following parameters:
1. Actual WIP.
2. National Stock.
3. Total Stock.
4. Standard Sale.
5. Calculating day’s stock.
6. WIP Due
7. RM Status.
8. Remarks.

ANALYTICAL STATEMENT :

Document Clearing Priority:

This statement consist the following information :
1. Description of Goods
2. Current Stock
3. L/C No & Date
4. L/C Quantity
5. L/C Value in foreign currency
6. Arrival Date
7. Material Position
8. Material Required at store
9. Remarks

ANALYTICAL STATEMENT :

Sales Trend Analysis

This statement consists the following information:
1. Four month Sales in Quantity
2. AVG/Standard Sales in Quantity

ANALYTICAL STATEMENT :

National Stock Analysis

This statement consists the following information:
1. Total Stock
2. AVG/Standard Sales in Quantity
3. Day’s Stock
4. WIP
5. Due WIP
6. RM/PM Status

ANALYTICAL STATEMENT :

Cost Analysis for the Month

This statement consists the following information:
1. FG Detail (Name & Pack Size)
2. Invoice Price
3. Marketing Target For the Month
4. Total Price For the Marketing Target (Tk)
5. Opening National Stock for the Month
6. Total Price for the National Stock
7. Production Quantity for the month
8. Total Price for the Production Quantity
9. AVG/Standard Sales in Quantity

ANALYTICAL STATEMENT :

Production & Sales Analysis : Between two month
This statement consists the following information:
1. Month (Two Month)
2. Market Target (Tk)
3. Production Requirement (Tk)
4. Market Achievement (Tk)
5. National Stock (Tk)

ANALYTICAL STATEMENT :

Balance Production Plan Vs Sales for the month
This statement consists the following information:
1. Product Category like Tablet in box, Capsule in box etc
2. Production Requirement by PPIC
3. Proposed Requirement by Production
4. Production Achievement
5. Sale of month

ANALYTICAL STATEMENT :

Physician Sample Analysis for the month
This statement consists the following information:
1. Physician product detail (Name & Pack)
2. Stock in CDC
3. WIP due’s on date
4. Requirement for earlier month
5. Opening Stock on one month before
6. Forecast for the month
7. Production Requirement for the Month
8. Remarks