CAPACITY REQUIREMENTS PLANNING (CRP)

CAPACITY REQUIREMENTS PLANNING (CRP)

  00:38    Rahul R

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CAPACITY REQUIREMENTS PLANNING (CRP)

Capacity Requirements Planning (CRP) is the process of determining what personnel and equipment capacities (times) are needed to meet the production objectives embodied in the master schedule and the material requirements plan. MRP focuses upon the priorities of materials, whereas CRP focuses primarily upon time. Although both MRP and CRP can be done manually and in isolation, they are typically integrated within a computerized system, and CRP (as well as production activity control) functions are often assumed to be included within the concept of “an MRP system.” Computerized MRP systems can effectively manage the flow of thousands of components throughout a manufacturing facility.

Aggregate Planning and  Master scheduling

Aggregate Planning includes identifying different feasible production alternatives and selecting the best one in order to reduce the production cost to minimum.

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MATERIAL REQUIREMENTS PLANNING

MATERIAL REQUIREMENTS PLANNING

  00:34    Rahul R

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MATERIAL REQUIREMENTS PLANNING (MRP)

 Material Requirements Planning (MRP) is a computer-based technique for determining the quantity and timing for the acquisition of dependent demand items needed to satisfy the master schedule requirements. By identifying precisely what, how many, and when components are needed, MRP systems are able to reduce inventory costs improve scheduling effectiveness, and respond quickly to market changes.

MRP is a computer-based production planning and inventory control system. MRP is concerned with both production scheduling and inventory control.

The major objectives of an MRP system are to simultaneously:-

1. Ensure the availability of materials, components and products for planned production and for customer delivery,

2. Maintain the lowest possible level of inventory,

3. Plan manufacturing activities, delivery schedules and purchasing activities.

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