ISSN (Online) : 2319 - 8753

ISSN (Print) : 2347 - 6710

InternationalJournalofInnovativeResearchinScience,EngineeringandTechnology
Volume 3, Special Issue 3, March 2014

2014 International Conference on Innovations in Engineering and Technology (ICIET14)

On 21st & 22nd March Organized by

College of Engineering and Technology, Madurai, Tamil Nadu, India

Material Requirement Planning for Automobile

Service Plant
1 2 3
Dinesh E. D , Arun A. P , Pranav R
1,3
PG Industrial Engineering Scholar, Kumaraguru College of Technology.Coimbatore, India.
2
Assistant Professor, Department of Mechanical Engineering, Kumaraguru College of Technology, Coimbatore, India

ABSTRACT Material requirements planning (MRP) renewed 'Vision and Mission' direct us towards ultimate
systems is a prominent approach to manage the material goal of becoming 'the most admired company in the
flow and components on the factory floor. MRP country. It is a valued corporate citizen the world over. In
technique- is used to explode bills of material, to calculate India, it contributes to society through its efforts in the
net material requirements and for production planning. areas of education, community care and the environment.
The master production schedule and bill of materials X Company in India will continue to delight its customers
indicates the materials to be demanded, order scheduling, through advanced technologies and services, thereby
cycle time production and supplier lead times then these fulfilling its commitment.
all factors jointly determine when orders should be
placed. It is a time phased priority-planning technique that II. LITERATURE REVIEW
calculates material requirements and schedules supply to
meet demand across all products and parts in one or more Hyoung-Gon Lee, Namkyu Park, Han-Il Jeong and
plants and used to optimize the inventory. It controls the Jinwoo Park , (2009) proposed a grid enabled MRP
system that attempts to keep adequate inventory levels to process in a distributed database environment and
assure that required materials are available when needed. demonstrates the performance improvement of the
This method is used for a automobile servicing plant for proposed process by a simulation study and divided into
procuring spare parts to reduce the servicing time of a five parts. It begins with a review of the literature dealing
vehicle. The demand is forecasted for the materials based with MRP and grid computing technology. The second
on actual demand and this gives the expected levels of part involves establishing MRP that leverages grid
goods or services. Based on the forecasted demand resources and accommodating the data management issue.
material requirement planning is done and orders are The third part explains the experimental procedure and
released to purchase materials and the materials are analytical results for different circumstances. The fourth
stocked. The objective of this work is to reduce the idle discusses dealing with the implications of the data
time and cost of materials and by procuring materials in management issue, and finally the article concludes with
right time. several suggestions for future studies. Enterprise resource
planning (ERP) software, are used in the production
KEYWORDSMaterial Requirement Planning, priority planning for manufacturing enterprises to ensure that
planning, Inventory, Automobile, procuring.. appropriate quantities of raw materials and subassemblies
are provided at the right time. Whereas little attention has
I. INTRODUCTION been paid to the architectural aspects of MRP process in
X Company, a young and vibrant company in India, has academic studies, in practice, reports are often made of its
grown since its inception in 1997 and today's dynamic time consuming characteristics due to intensive
business environment offers us many unique interactions with databases and difficulty in real time
opportunities. As a leader in the automotive sector, our processing.
major challenge is to innovate continuously; keeping in
mind the changing needs of customers, stakeholders and Vincent A. Mabert, (2007) , This article chronicles many
society at large. In order to counter these challenges, developments and events during the formative years of
company follows the best practice. MRP, highlighting changes in computer technology and
Having laid the second foundation for our operations in contributions by key early proponents of this approach for
India, we are now at an important stage. Further, our managing the flow of material on the factory floor. This
Copyright to IJIRSET www.ijirset.com 147

M.R. Thansekhar and N. Balaji (Eds.): ICIET14

Material Requirement Planning for Automobile Service Plant
 Material Requirement Planning for Automobile Service Plant
early work provided the consideration. 6. Planned order manufacture end items
foundation to the release. depend on the demands
inventory management III. PROB for the end items. The
literature frequently LEM 7. Implementation. distinctions between
referred to as independent DEFIN independent and
ITION V. OVER
demand management. It VIEW
dependent demands are
led to the development of MRP is a tool to deal with OF important in classifying
numerous reorder order these problems: MRP inventory items and in
point (ROP) systems like developing systems to
base stock, continuous MRP is concerned manage items within
What items are
review, periodic review, with both production each demand
required?
etc. Much of this work scheduling and classification. MRP
was done manually, using inventory control. It systems were developed
How many are
pencil and paper, a slide is a material control to cope better with
required?
rule or a simple system that attempts dependent demand items.
tabulating machine When are they to keep adequate The three major inputs of
available during the required inventory levels to an MRP system are the
1930s and 1940s. The assure that required master production
approaches normally materials are schedule, the product
Problem in industry:
focused upon single level available when structure records, and the
Lack of Inventory needed. MRP is
stocking decisions, even management that inventory status records.
though many companies applicable in Without these basic
leads to over stock situations of multiple
were dealing with multi- and under stock. inputs the MRP system
echelon material flow on items with complex cannot function.
Service time bills of materials.
the factory floor. increases due to MRP is not useful for MRP Process:
unavailability of job shops or for
Karl Inderfurth, (2009)
material and do not continuous processes MRP process goes through the
Traditional MRP systems
meet due date. that are tightly following steps:
suffer from several
weaknesses, one of them Rescheduling
being the disregard of occurs due to
uncertainties like those improper planning
referring to demand and and increases
supply quantities. delivery time
Advanced MRP concepts
handle these uncertainties
by incorporating safety IV. ME
THO
stocks and scrap DOL
allowances into order OG
release calculations. Y
However, they fail to These problems can be solved
address how these by following steps:
measures of risk
protection might interact. 1. Assessment of the
Here, it is shown by present situation.
using analyses from
stochastic inventory 2. Studying Bill of
control, how the Materials. linked. MRP is 1. Establish gross
performance of MRP- especially suited to requirements.
generated control rules 3. Forecasting demand manufacturing 2. Determine net
can be assessed and how using linear settings where the requirements by
appropriate control regression method. demand of many of subtracting
parameters for MRP can the components and scheduled
be determined. And from 4. Design of MRP subassemblies receipts and on
this investigation is that a processes and depend on the hand inventory
sound theory-supported system. demands of items from the gross
way exists for choosing that face external requirements.
the parameters for 5. Master production demands. Demands 3. Time phase the net
advanced MRP control schedule for for end items are requirements.
by which both demand inventory. independent. In 4. Determined the planned
and yield risk are contrast, demand for order releases.
appropriately taken into components used to
 Material Requirement Planning for Automobile Service Plant
F
i
g
.

M
R
P

P
r
o
c
e
s
s
Material Requirement Planning for Automobile Service Plant
 Material Requirement Planning for Automobile Service Plant
IV. DEMAND FORECAST
TABLE 1:
ACTUAL DEMAND
linear regression method: Regression means dependence
and involves estimating the value of a dependant variable
Y, from an independant variable X. in simple regression,
only one independent variable is used. the simple
regression takes the following form

Y = a + bX

where,

Y dependant variable
X independant variable
a intercept
b slope

VII. DATA COLLECTION

Types of maintenance carried out:

Periodic maintenance

Express maintenance

Maximum Inventory Position (MIP):

Working days in a month = 20

VIII. CALCULATION
Monthly Average Demand (MAD) = 40 pieces/month

Order Cycle is 1 day = 1/20 = 0.05 months

Lead Time is 1 day = 1/20 = 0.05 months

Safety Stock is 3 days = 3/20 = 0.15 months

MIP = MAD x (1+1+3)days

= MAD x (5 days)

= 40 x (0.25 months)

= 10 pieces

Periodic Maintenance Parts Replacement:

Engine Oil exchange.

Oil Filter exchange.

Gasket replacement.

Fuel Filter replacement.

Air filter replacement.

Coolant fluid exchange.

Brake fluid exchange.

 E
T demand MRP is done for the T T
A A
B
service parts for ordering B
L On hand quantity = 50 L
E Engine oil, Oil filter, E
The average demand (D)
Gasket:
2 =237 4
: T Carrying cost :
F F
O
A per unit per U
R B E
E L week (Cc) = L
C
A
E 190 Set up F
S I
T 3 cost per unit L
E T
D
: per week (C0) E
E R
D N = 1900 EOQ =
E G
M I
A N
N E
D
O

2C0D/Cc =
69 On hand quantity = 95
The average demand (D) =118
Fuel Filter: Carrying
cost per unit
per week
(Cc) = 9.49
Set up cost
per unit per
week (C0) =
949 EOQ =
2C0D/Cc =
154

Air Filter:

T
I
L
A
IX. M , B
R L
P O
I
E
L
P 5
R F
:
A
I
R

F
I
L
T
E
R

O I
L
C T
E E
S R
,
S
G
A
Based on forecasted S
K
On hand quantity = 45 (D) =138
The average demand Carr
(D) =212 ying
Car cost
ryin per
g unit
cost per
per week
unit (Cc)
per =
wee 11.1
k Set
(Cc) up
= cost
16. per
97 unit
Set per
week
up (C0)
cost =
per 1110
unit EOQ
per =
wee 2C0
k D/C
(C0) c =
= 166
169
7
EO
Q=
2C
0D/

Cc
=
154

Coolant Fluid:
T
A
B
L
E

6
:
C
O
O
L
A
N
T

F
L
U
I
D

On hand quantity = 60
The average demand
Brake Fluid:
TABLE 7:
BRAKE FLUID

On hand quantity = 50
The average demand (D) =13
Carrying cost per unit per week (Cc) = 1.1
Set up cost per unit per week (C 0) = 110
EOQ = 2C0D/Cc = 52

X. CONCLUSION

This paper delivers the advantage of Material

Requirement Planning (MRP) in ensuring materials on
time for service and delivery to customer. Forecasted
demand gives the input to MRP for the next purchase of
materials. It controls the high inventory level and low
inventory level of materials by maintaining the need
amount in the industry. It plans manufacturing activities,
delivery schedules and purchasing activities in service
plant. Finally Material Requirement Planning (MRP)
reduces the maintenance and carrying cost of industry. It
improves the unbroken chain of components for service
and delivers vehicle on time.

REFERENCES
[1] Alistair R. Clark, (2003) Optimization approximations for
capacity constrained material requirements planning, International
Journal of Production Economics, Vol. 84, pp. 115131.
[2] Karl Inderfurth, (2009) How to protect against demand and yield
risks in MRP systems, International Journal of Production
Economics, Vol. 121(2), pp. 474481.
[3] Vincent A. Mabert, (2007) The early road to material requirements
planning, Journal of Operations Management, Vol 25, pp. 346
356.
[4] C. Ou-Yang and M. C. Cheng, (2003) Developing a PDM / MRP
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