Transcript Chapter 11
Enterprise Resource Planning To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Enterprise Resource Planning (ERP) Organizes and manages a company’s business processes by sharing information across functional areas Connects with supply-chain and customer management applications To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. ERP Modules To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. ERP Modules Figure 12.1 To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. ERP’s Central Database Finance & Accounting Sales & Marketing ERP Data Repository Production & Materials Management Human Resources Figure 12.2 To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. ERP Implementation First step is to analyze business processes Which processes have the biggest impact on customer relations? Which process would benefit the most from integration? Which processes should be standardized? Use of Internet portals can aid implementation To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Customer Relationship Management (CRM) Plans and executes business processes that involve customer interaction Changes focus from managing products to managing customers Point-of-sale data is analyzed for patterns used to predict future behavior To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Supply Chain Management Supply chain planning Supply chain execution Supplier relationships Distinctions between ERP and SCM are becoming increasingly blurred To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Collaborative Product Commerce (CPC) New product design and development and product life cycle management Integrates customers and suppliers in the design process though the entire product life cycle To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Collaborative Product Commerce (CPC) Customer Relationship Management (CRM) Collaborative Design Collaborative Product Commerce (CPC) Product Design Collaborative Manufacture Manufacture & Delivery DFMA Collaborative Design Collaborative Manufacture Enterprise Resource Planning (ERP) Time to Customer Time to Market Customers Suppliers Figure 12.3 Supply Chain Management (SCM) To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Connectivity A very difficult problem Enterprise Application Integration (EAI) solutions EDI is being replaced by XML A continuing issue To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. ERP and MRP MRP (material requirements planning) was the precursor to ERP Primarily a production planning and control system MRP evolved to MRP II (manufacturing resource planning) ERP and ERP II continue to extend the links through all business processes To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Material Requirements Planning Computerized inventory control & production planning system Schedules component items when they are needed - no earlier and no later To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. When to Use MRP Dependent and discrete items Complex products Job shop production Assemble-to-order environments To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Demand Characteristics Independent demand Dependent demand 100 x 1 = 100 tabletops 100 x 4 = 400 table legs 100 tables Continuous demand Discrete demand 400 – 300 – No. of tables No. of tables 400 – 200 – 100 – 1 2 3 Week 4 300 – 200 – 100 – 5 M T W Th F M T W Th F Figure 12.4 To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Material Requirements Planning To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Material Requirements Planning Product structure file Master production schedule Material requirements planning Item master file Planned order releases Figure 12.5 Work orders Purchase orders Rescheduling notices To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Master Production Schedule Drives MRP process with a schedule of finished products Quantities represent production not demand Quantities may consist of a combination of customer orders & demand forecasts Quantities represent what needs to be produced, not what can be produced To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Master Production Schedule MPS ITEM Clipboard Lapdesk Lapboard Pencil Case 1 85 0 75 125 PERIOD 2 3 4 95 50 120 125 120 0 47 125 100 50 20 125 5 100 0 17 125 To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Product Structure Tree Clipboard Pressboard (1) Top Clip (1) Level 0 Clip Ass’y (1) Bottom Clip (1) Rivets (2) Pivot (1) Level 1 Spring (1) Level 2 Figure 12.6 To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Product Structure Tree Clipboard Top clip (1) Pivot (1) Bottom clip (1) Spring (1) Rivets (2) Finished clipboard Pressboard (1) Figure 12.6 To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Indented Bill of Material LEVEL 0----1----2---2---2---2--1---1--- ITEM Clipboard Clip Assembly Top Clip Bottom Clip Pivot Spring Rivet Press Board UNIT OF MEASURE QUANTITY ea ea ea ea ea ea ea ea 1 1 1 1 1 1 2 1 To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Specialized BOMS Phantom bills Transient subassemblies Never stocked Immediately consumed in next stage K-bills Group small, loose parts under pseudo-item number Reduces paperwork To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Specialized BOMS Modular bills Product assembled from major subassemblies & customer options Modular bill kept for each major subassembly Simplifies forecasting & planning X10 Automobile example 3 x 8 x 3 x 8 x 4 = 2,304 configurations 3 + 8 + 3 + 8 + 4 = 26 modular bills To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Modular Bills of Material X10 Automobile Engines (1 of 3) Exterior color (1 of 8) Interior (1 of 3) Interior color (1 of 8) Body (1 of 4) 4-Cylinder (.40) Bright red (.10) Leather (.20) Grey (.10) Sports coupe (.20) 6-Cylinder (.50) White linen (.10) Tweed (.40) Light blue (.10) Two-door (.20) 8-Cylinder (.10) Sulphur yellow (.10) Plush (.40) Rose (.10) Four-door (.30) Neon orange (.10) Off-white (.20) Station wagon (.30) Metallic blue (.10) Cool green (.10) Emerald green (.10) Black (.20) Jet black (.20) Brown (.10) Champagne (.20) B/W checked (.10) Figure 12.7 To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Item Master File DESCRIPTION INVENTORY POLICY Item Pressboard Item no. 734 Item type Purch Product/sales class Comp Value class B Buyer/planner RSR Vendor/drawing 07142 Phantom code N Unit price/cost 1.25 Pegging Y LLC 1 Lead time Annual demand Holding cost Ordering/setup cost Safety stock Reorder point EOQ Minimum order qty Maximum order qty Multiple order qty Policy code 1 5000 1 50 0 39 316 100 500 3 Table 12.4 To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Item Master File PHYSICAL INVENTORY On hand Location On order Allocated Cycle Last count Difference USAGE/SALES 100 W142 100 75 3 9/5 -2 YTD usage/sales MTD usage/sales YTD receipts MTD receipts Last receipt Last issue 1100 75 1200 0 8/25 10/5 CODES Cost acct. Routing Engr 00754 00326 07142 Table 12.4 To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Basic MRP Processes 1. Exploding the bill of material 2. Netting out inventory 3. Lot sizing 4. Time-phasing requirements To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. The MRP Matrix ITEM NAME OR NO. LLC - LOW LEVEL CODE LOT SIZE QTY MADE IN LY - LEAD TIME 1 PERIOD 2 3 4 5 Gross Requirements Derived from MPS or planned order releases of the parent Scheduled Receipts On order and scheduled to be received Projected on Hand Net Requirements Beg Inv Anticipated quantity on hand at the end of the period Gross requirements net of inventory and scheduled receipts Planned Order Receipts When orders need to be received Planned Order Releases When orders need to be placed to be received on time Table 12.5 To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. School Mate Products Master Production Schedule Clipboard Lapdesk 1 2 3 4 5 85 0 95 60 120 0 100 60 100 0 Item Master File On hand On order (sch receipt) LLC Lot size Lead time CLIPBOARD 25 175 (Period 1) LAPDESK 20 0 PRESSBOARD 150 0 0 L4L 1 0 Mult 50 1 1 Min 100 1 Example 12.1 To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. School Mate Products Product Structure Record Clipboard Level 0 Clip Ass’y (1) Pressboard (1) Rivets (2) Level 1 Lapdesk Pressboard (2) Trim (3’) Level 0 Beanbag (1) Glue (4 oz) Level 1 Example 12.1 To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. School Mate Products ITEM: CLIPBOARD LLC: 0 LOT SIZE: L4L 1 2 3 4 5 Gross Requirements 85 95 120 100 100 Scheduled Receipts 175 Projected on Hand LT: 1 PERIOD 25 Net Requirements Planned Order Receipts Planned Order Releases Example 12.1 To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. School Mate Products ITEM: CLIPBOARD LLC: 0 LOT SIZE: L4L 1 2 3 4 5 Gross Requirements 85 95 120 100 100 Scheduled Receipts 175 Projected on Hand Net Requirements LT: 1 PERIOD 25 115 0 Planned Order Receipts Planned Order Releases (25 + 175) = 200 units available (200 - 85) = 115 on hand at the end of Period 1 Example 12.1 To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. School Mate Products ITEM: CLIPBOARD LLC: 0 LOT SIZE: L4L 1 2 3 4 5 Gross Requirements 85 95 120 100 100 Scheduled Receipts 175 Projected on Hand Net Requirements LT: 1 PERIOD 25 115 20 0 0 Planned Order Receipts Planned Order Releases 115 units available (115 - 85) = 20 on hand at the end of Period 2 Example 12.1 To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. School Mate Products ITEM: CLIPBOARD LLC: 0 LOT SIZE: L4L 1 2 3 4 5 Gross Requirements 85 95 120 100 100 Scheduled Receipts 175 115 20 0 0 0 100 Projected on Hand Net Requirements LT: 1 PERIOD 25 Planned Order Receipts Planned Order Releases 100 100 20 units available (20 - 120) = -100 — 100 additional Clipboards are required Order must be placed in Period 2 to be received in Period 3 Example 12.1 To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. School Mate Products ITEM: CLIPBOARD LLC: 0 LOT SIZE: L4L 1 2 3 4 5 Gross Requirements 85 95 120 100 100 Scheduled Receipts 175 115 20 0 0 0 0 0 100 100 100 100 100 100 100 100 Projected on Hand Net Requirements LT: 1 PERIOD 25 Planned Order Receipts Planned Order Releases 100 Following the same logic Gross Requirements in Periods 4 and 5 develop Net Requirements, Planned Order Receipts, and Planned Order Releases Example 12.1 To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. School Mate Products ITEM: LAPDESK LLC: 0 LOT SIZE: MULT 50 LT: 1 Gross Requirements PERIOD 1 2 0 60 3 4 0 60 5 0 Scheduled Receipts Projected on Hand 20 Net Requirements Planned Order Receipts Planned Order Releases Example 12.1 To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. School Mate Products ITEM: LAPDESK LLC: 0 LOT SIZE: MULT 50 LT: 1 Gross Requirements PERIOD 1 2 3 4 5 0 60 0 60 0 20 10 10 0 0 0 40 50 50 50 Scheduled Receipts Projected on Hand Net Requirements 20 Planned Order Receipts Planned Order Releases 50 50 Following the same logic, the Lapdesk MRP matrix is completed as shown Example 12.1 To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. School Mate Products ITEM: CLIPBOARD LOT SIZE: L4L LLC: 0 LT: 1 1 Planned Order Releases ITEM: LAPDESK LOT SIZE: MULT 50 LLC: 0 LT: 1 Planned Order Releases ITEM: PRESSBOARD LLC: 0 LOT SIZE: MIN 100 LT: 1 Gross Requirements Scheduled Receipts Projected on Hand 150 Net Requirements Planned Order Receipts Planned Order Releases 1 2 PERIOD 3 4 100 100 100 2 PERIOD 3 4 5 4 5 50 50 1 PERIOD 3 2 5 Example 12.1 To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. School Mate Products ITEM: CLIPBOARD LOT SIZE: L4L LLC: 0 LT: 1 1 Planned Order Releases ITEM: LAPDESK LOT SIZE: MULT 50 LLC: 0 LT: 1 Planned Order Releases ITEM: PRESSBOARD LLC: 0 LOT SIZE: MIN 100 LT: 1 Gross Requirements Scheduled Receipts Projected on Hand 150 Net Requirements Planned Order Receipts Planned Order Releases 2 PERIOD 3 4 100 100 100 x1 x1 2 PERIOD 3 4 5 x1 1 50 x2 1 100 5 50 x2 PERIOD 2 3 4 100 200 100 5 0 Example 12.1 To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. School Mate Products ITEM: CLIPBOARD LOT SIZE: L4L LLC: 0 LT: 1 1 Planned Order Releases ITEM: LAPDESK LOT SIZE: MULT 50 LLC: 0 LT: 1 Planned Order Releases ITEM: PRESSBOARD LLC: 0 LOT SIZE: MIN 100 LT: 1 Gross Requirements Scheduled Receipts Projected on Hand 150 Net Requirements Planned Order Receipts Planned Order Releases 1 2 PERIOD 3 4 100 100 100 2 PERIOD 3 4 50 50 1 100 PERIOD 2 3 4 100 200 100 50 100 50 50 100 150 0 150 150 100 0 100 100 5 5 5 0 0 Example 12.1 To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. School Mate Products Planned Order Report PERIOD ITEM Clipboard Lapdesk Pressboard 1 50 100 2 3 4 100 100 50 100 100 150 5 Example 12.1 To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. MRP Outputs Planned orders Work orders Purchase orders Changes to previous plans or existing schedules Action notices Rescheduling notices To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Planned Order Report Item On hand On order Allocated DATE 9-26 9-30 10-01 10-08 10-10 10-15 10-23 10-27 #2740 100 200 50 ORDER NO. Date Lead time Lot size Safety stock SCHEDULED GROSS REQS. RECEIPTS AL 4416 AL 4147 GR 6470 SR 7542 CO 4471 GR 6471 GR 6471 GR 6473 Key: AL = allocated CO = customer order PO = purchase order PROJECTED ON HAND 25 25 50 200 75 50 25 50 WO = work order SR = scheduled receipt GR = gross requirement 50 25 0 - 50 150 75 25 0 - 50 9 - 25 - 02 2 weeks 200 50 ACTION Expedite SR 10-01 Release PO 10-13 Table 12.6 To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. MRP Action Report Current date 9-25-02 ITEM DATE #2740 #3616 #2412 #3427 #2516 #2740 #3666 10-08 10-09 10-10 10-15 10-20 10-27 10-31 ORDER NO. QTY. 7542 200 7648 100 200 50 ACTION Expedite Move forward Move forward Move backward De-expedite Release Release SR PO PO PO SR PO WO 10-01 10-07 10-05 10-25 10-30 10-13 10-24 Table 12.7 To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Capacity Requirements Planning (CRP) Computerized system that projects load from material plan Creates load profile Identifies underloads and overloads To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Capacity Usually expressed as standard machine hours or labor hours Capacity = (no. machines or workers) x (no. shifts) x (utilization) x (efficiency) To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Capacity Terms Load profile Compares released and planned orders with work center capacity Capacity Productive capability; includes utilization and efficiency Utilization % of available working time spent working To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. More Capacity Terms Efficiency Load The standard hours of work assigned to a facility Load percent The ratio of load to capacity Load % = (load/capacity)x100% To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Capacity Requirements Planning MRP planned order releases Routing file Capacity requirements planning Open orders file Load profile for each machine center Figure 12.8 To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Determining Loads and Capacities 2 copiers, 2 operators 5 days/wk, 8 hr/day 1/2 hr meals, 1/2 hr maintenance per day Efficiency = 100% Utilization = 7/8 = 87.5% Daily capacity = 2 machines x 2 shifts x 8 hours/shift x 100% efficiency x 87.5% utilization = 28 hours or 1,680 minutes Example 12.2 To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Determining Loads and Capacities JOB NO. NO. OF COPIES SETUP TIME (MIN) RUN TIME (MIN/UNIT) TOTAL TIME 10 20 30 40 50 500 1,000 5,000 10,000 2,000 5.2 10.6 3.4 11.2 15.3 0.08 0.10 0.12 0.14 0.10 5.2 + (500 x 0.08) = 45.2 10.6 + (1,000 x 0.10) = 110.6 3.4 + (5,000 x 0.12) = 603.4 11.2 + (10,000 x 0.14) = 1,411.2 15.3 + (2,000 x 0.10) = 215.3 2385.7 min Load percent = 2,385.7 / 1,680 = 1.42 x 100% = 142% Add another shift: Daily capacity = 2 machines x 3 shifts x 8 hours/shift x 100% efficiency x 87.5% utilization = 42 hours or 2,520 minutes Revised load percent = 2,385.7 / 2,520 = 0.9467 x 100% = 94.67% Example 12.2 To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Hours of capacity Initial Load Profile 120 – 110 – 100 – 90 – 80 – 70 – 60 – 50 – 40 – 30 – 20 – 10 – 0– Normal capacity 1 2 3 4 5 6 Time (weeks) Figure 12.9 To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Remedies for Underloads 1. Acquire more work 2. Pull work ahead that is scheduled for later time periods 3. Reduce normal capacity To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Remedies for Overloads 1. Eliminate unnecessary requirements 2. Reroute jobs to alternative machines or work centers 3. Split lots between two or more machines 4. Increase normal capacity 5. Subcontract 6. Increase the efficiency of the operation 7. Push work back to later time periods 8. Revise master schedule To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Hours of capacity Adjusted Load Profile 120 – 110 – 100 – 90 – 80 – 70 – 60 – 50 – 40 – 30 – 20 – 10 – 0– Pull ahead Overtime 1 2 Work an extra shift 3 Push back Push back 4 Normal capacity 5 6 Time (weeks) Figure 12.10 To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Relaxing MRP Assumptions Material is not always the constraining resource Lead times can vary Not every transaction needs to be recorded JIT can be used with MRP The shop floor may require a more sophisticated scheduling system To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Manufacturing Resource Planning (MRP II) To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Manufacturing Resource Planning (MRP II) Customer orders Aggregate production plan Forecast No Feasible? Yes Master production schedule Material requirements planning Capacity requirements planning No Feasible? Feedback Yes Purchase orders Work orders Inventory Shop floor control Manufacture Figure 12.11 To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Manufacturing Resource Planning (MRP II) Aggregate production plan Forecast No Customer orders Aggregate production plan Forecast No Feasible? Customer orders Yes Master production schedule Material requirements planning Capacity requirements planning Feasible? No Feasible? Feedback Yes Master production schedule Yes Purchase orders Work orders Inventory Shop floor control Manufacture Figure 12.11 To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Manufacturing Resource Planning (MRP II) Master production schedule Customer orders Aggregate production plan Forecast No Feasible? Yes Master production schedule Material requirements planning Material requirements planning Capacity requirements planning Capacity requirements planning No Feasible? Feedback Yes No Feasible? Yes Purchase orders Work orders Inventory Shop floor control Manufacture Figure 12.11 To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Manufacturing Resource Planning (MRP II) Purchase orders Customer orders Aggregate production plan Forecast No Feasible? Yes Master production schedule Work orders Material requirements planning Capacity requirements planning Shop floor control Inventory No Feasible? Feedback Yes Purchase orders Work orders Inventory Shop floor control Manufacture Manufacture Figure 12.11 To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Manufacturing Resource Planning (MRP II) Customer orders Aggregate production plan Forecast No Feasible? Yes Master production schedule Material requirements planning Capacity requirements planning No Feasible? Feedback Yes Purchase orders Work orders Inventory Shop floor control Manufacture Figure 12.11 To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved.