Lean Management Systems

 

Training for MRP, CRP, DRP, and MPS

Forecast to shipment cycle — encompassing production planning, distribution requirements planning,
material requirements planning, capacity planning, and work authorization

Important Note:

Before you invest too much time studying
these succinct explanations of the purpose and math that is beneath any ERP or MRP system...

just be aware that if you do do a good job of designing and managing lean systems

(as taught in the entire rest of this web site)

then you will usually eliminate the need
for most or all of these (overly complex) production and inventory planning systems

(except for Sales and Operations Planning, which remains a crucial practice, even in a lean organization)

 

Training for production planning, capacity planning, and MRP

Integrated process flow overview Acrobat icon Integrated Process Flow Overview
This flow chart depicts the entire Resources Planning process flow for a typical company —
from forecasting through shipment.

This same flow chart also depicts the Sales Order Processing "order to cash cycle" —
which is tightly related to the Resources Planning Cycle.

Sub-processes include Sales and Operations Planning, demand forecasting, distribution requirements planning (DRP), production planning (MPS), material requirements planning (MRP), capacity planning (RCCP and CRP), and work authorization for both gating and non-gating operations.

A clear understanding of these process flows are helpful for both:

  • Business Process Reengineering projects, and...
  • Projects to select and implement Enterprise Software
software integration worksheet Acrobat icon Software Integration Worksheet
Illustrates the inter-relationships of the various software "modules" used by typical Enterprise Resources Planning (ERP) software.

Tip: Use multiple sheets to illustrate the inter-relationships between centralized and decentralized processes for a project spanning multiple locations.

To get the most value from this worksheet, use the Strategic Planning Worksheets to flesh out your detailed requirements for each area of your business.

Acrobat icon Sales & Operations Planning
The Sales & Operations Plan (S&OP) is top management's "handle on the frying pan" — clearly communicating top-level strategic decisions regarding plans for sales efforts and the operations plans needed to fulfill expected demand streams.
Acrobat icon Distribution Requirements Planning
A Distribution Requirements Plan (DRP) is used to plan the "push" of inventory through a complex supply chain network — to meet forecasted demands per location. DRP software often serves as the foundation for Supply Chain Management software (SCM).
Acrobat icon Master Production Scheduling
A Master Production Schedule (MPS) is used for production scheduling of anything requiring frequent human intervention in the planning process.
Acrobat icon Material Requirements Planning
A Material Requirements Plan (MRP) is used to plan dependent demands (for materials used in the production of Master Scheduled items).
Important note: There are other material planning methods that don't require either Master Production Scheduling or MRP. For instance, kanbans, reorder points, min/max reorder systems, etc. It is important to choose an appropriate materials planning method for each item in your inventory.
Acrobat icon Capacity Planning
This training handout provides definitions and comparisons of the differences between Rough Cut Capacity Planning (RCCP), Capacity Requirements Planning (CRP), and Finite Capacity Scheduling.
Acrobat icon Work Authorization
This training handout provides definitions and comparisons of Work Authorization methods for both gating and non-gating operations — including popular methods such as work orders, kanbans, finite scheduling systems, and drum buffer rope theory of constraints.

If you appreciate the above high-quality free training,
then you might really appreciate the time-saving value of the Systems2win Excel templates and online training for...
Excel templates for Kaizen and Lean Business Process Improvement Enterprise Software Project Management templates