Contents

Title page ……………………………………………………………………………… 1

Abstract ………………………………………………………………………………. 2

Acknowledgements and Biographical Note …………………………………………. 3

1. Introduction ………………………………………………………………………. 6

2. Manufacturing Resource Planning (MRP II)

2.1 What is MRP and why is it being used?……..………………………………………. 8

2.1.1 Definition and History ………………………………………………………… 8

2.1.2 MRP II hierarchy ……………………………………………………….…….. 9

2.2 What are its problems? ………………………………………………….……….. 13

2.3 What solutions are being proposed to solve these problems? …………………….... 16

3. Shop Floor Control

3.1 What is production/shop floor control (SFC)? ……………………………………. 19

3.1.1 Definition …………………………………………………………………….. 19

3.1.2 Objectives of SFC ……………………………………………………………. 20

3.1.3 Functions in SFC ……………………………………………………………... 21

3.2 What are the characteristics of a good SFC design? ……………………………… 22

3.3 SFC in Pull systems and Push systems……………………………………………. 24

4. MRP II as a tool for shop floor control

4.1 How does MRP II achieve shop floor control? ………………………………….. 27

4.1.1 MRP Input ………………………………………………………………….... 28

4.1.2 MRP Procedure ……………………………………………………………….. 29

4.1.3 MRP Output ……………………………………………………………...….. 30

4.2 What limitations and constraints are faced in doing this? ………………………..…. 31

4.3 How do MRP hybrid systems overcome these limitations and constraints? ……..…. 37

5. Case study of Company X

5.1 Background of company X ……………………………………………….………. 41

5.1.1 What do they make? …………………………………………………..……… 42

5.1.2 Who are their customers? ……………………………………………………. 42

5.1.3 How long have they been using MRP and what did they have before? ..…… 43

5.1.4 Are they making any attempts to integrate with Lean? ………………..…….. 43

5.2 Description of Company X’s MRP II system based on the model B product

line …………………………………………………………………………………… 44

5.2.1 Product type and specifications ……………………………………………….. 44

5.2.2 Value stream of part A and model B from forecast to shipping ………………. 44

5.2.3 The MRP process at company X …………………………………………….… 49

5.3 General observations …………………………………………….…………….… 52

5.4 New and Improved value stream map with linked cell system ……….……………. 54

6. Conclusions ……………………………………………………………..………… 59

Bibliography ………………………………………………………………….……… 63

Figures

1. MRP II hierarchy ………………………………………………………………….10
2. Modified open loop feedback control loop for MRP II shop floor control .…….….. 27
3. JIT-MRP ………………………………………………………………………… 38
4. How MRP and Kanban relate to Tandem Push Pull ………………………….…….. 39
5. How MRP and Kanban relate to requirement driven Kanban …………………….. . 40
6. Value Stream for Part A of the Model B centrifuge ………………………………… 45
7. Relationship between forecasts, MPS and MRP modules at company ………….…. 46
8. Excel spreadsheet showing the delay due to lot size ………….……………………. 55
9. New and improved value stream map with linked cell system …………….……….. 56
10. Receiving Dock at company X …………………………………………………….. 66
11. Puma 10 Daewoo CNC Machine. …………………………………………………. 66
12. Hitachi Seiko HC 500 milling machine …………………………………………….. 67
13. Portable Rivet gun on the worker’s table used for fixing metal brackets on the ..…….. 67
14. Typhoon Proceco washer ………………………………………………………… 68
15. Painting booth ……………………………………………………………….…….. 68
16. Blue assembly cell with a worker at his station ……………………………………… 69
17. Different view of the blue assembly cell and the Materials Review Board ……….…… 69
18. Stack of part A pieces after milling …………………………………………………. 70
19. A closer view of part A after milling …………………………………………….…... 70
20. Inventory on the shop floor …………………………………………………..………71
21. A view of part A immediately after machining …………………………………..…….71

Table

1. The Limitations and constraints of MRP II as a tool for shop floor control …….………. 59

Appendices

1. Production Design Decomposition ………………………………………….….……… 65

2. Photos of company X …………………………………………………………….. (66-71)

3. Various MRP documents from company X …………………………….………… (72-81)