1st slide: good morning classmates good morning sir I’m Risha Matila.

We are now moving to the next

chapter entitled Material Requirement plan

2nd: throughout the chapter you will be able to *objectives* so we hope that me and my members will
able to meet this objectives. Now let’s start

We will have the introduction first of what is material requirement planning or MRP, what its purpose
ngano naa siya dha unsa iyang matabang sa pag maximize ug profit sa business or makatabang pd ba
siya sa pag minimize ug cost and etc.

3rd: so first let us define what is MRP.

When we say computer-based inventory management system is the integration of sub-functions

involved in the management of inventory into a single well organized system. It is software installed on
the computer systems that enables a firm to keep a check on the inventory levels by performing the
automatic counting of inventories. Dli na need na icount jud siya one because naa na tay software to do
that.Through the use of barcodes, omputerized inventory management systems make it easy for
businesses to stay updated consistently and without wasting too much time. Kasi automatic. The
problem is pag mag crash ang system which is dli siya impossible, erase jud tanan data tas basin ma hack
pud so dapat dli limited ang content filter.

Assisting production managers, these managers are responsible sa planning and organizing production,
overseeing the production process and since they ensure high quality sa mga materials na gamiton sa
pagbuo sa finish product, dako jd kaayong tabang ang MRP na technique sa mga managers because MRP
is dealing with improvements in productivity for businesses with the use of computers and software
technology to provide meaningful data to managers.

4th slide:So unsa ni siya na klaseng inventory? Mga dependent demand items.Inventory is categorized
into two types based on the demand pattern, which creates the need for inventory. The two types of
demand are Independent Demand and Dependant Demand for inventories. Finished goods Items, which
are ordered by External Customers, manufactured for stock and sale. Demand originating outside the
plant or production system Raw materials and component inventories na gamition sa pag process sa
finished pproducts are dependant upon the demand for Finished Goods.

5th slide: this would be the microchips in the computer, the wheels on the bicycle, or the cheese on the
pizza. Dependent demand kay dependant upon the demand for Finished Goods. So kung wala sila ga
demand aning computer etc so walapud demand sa cheese etc.

6th slide:Inventory planners who are responsible for planning, managing and controlling Raw Material
inventories have to answer three fundamental questions. We need to answer these questions kasi MRP
determines the parts, components and materials needed to produce a product. We need to know kung
ano ano ang mga materials na kailangan like sa pizza need ng cheese, dough etc, how much or ilang
cheese ba dapat para hindi ma sobrahan ng gamit o makulangan so na eestemate nay an at kalian bilhin.
Kalian dadating o dadating pa ba?
I eestamate kasi MRP is a sales forecast-based system used to schedule raw material deliveries and
quantities.dba pag nag sesale forecast ka, you estimating future sales. And that’s the reason bakit
dependent demand items drives the MRP not the independent gaya nung sabi sa definition na it is for
dependent demand items hindi sa finish product. Alangan didto ka maghunahuna sa humana unya wala
pa nmo nasugdan?

before we proceed sa process sa MRP,let us have a brief history of MRP.

7TH slide:The Birth of Manufacturing

Thousands of years ago, when someone needed something, they had to build it themselves. Through
the generations, some people began to be recognized for their skills in building and they were asked to
build things for other people dli lang para sa ilang self. A business was born. Eventually, these new
businesses got very busy daghan na kayo ug demand and, in order to maintain their demand, they had
to establish priorities in their current processes. Remember the three fundamental questions of MRP?
To help answer these questions, the manufacturers made up a calendar, put together lists and tried to
match up the supply with the demand.

8th slide:Paper and Pencil – ledger books or paper spreadsheets were once the best methods available.

9th slide: Mainframe computers were very large and would take up entire walls within a room. Dri ga
explode ug information for a certain product. The process takes 14 hours to finish.

10th slide: Today we have very powerful computers.Material Planning programs now include the entire
business process and are known as ERP systems (Enterprise Resource Planning). Kaning ERP it has
multiple functions ginagamit by the different business units. Like for example ang accounting
department and sale department they can rely on the same information on their specific needs. Like
example na transaction ABC Enterprise sold merchandise to XYZ Enterprise so kani na information is naa
sa database sa ERP and kaning sale ug accounting department magdepende nana sa ilaha unsaon nan la
pag gamit ana nga information. So ang MRP isa ra pud siya sa mga components sa ERP so ang MRP is
naa lang sa is aka screen within an ERP System.

Now we are bothered when our MRP processes for more than 5 minutes, when just a few years ago it
was not unusual to wait 14 hours to complete.

11th slide: Next we will move to the processing of MRP. First we have to define some terms para inig
explain sa process is mas dali nato ma understand. First is asa ta gakuha ug information? There are three
kinds of sources na ginakuhaan nato ug information.
BOM

Manufacturers that build products start the assembling process by creating a BOM. Creating an accurate
bill of materials is vital because the correct parts must be available when the item is manufactured.If it is
not accurate, it can cause production to halt or cause delays, which increase operation costs because a
company has to locate the missing parts, start another production order or deal with customer returns.
With a clear list of materials, quantities and inventories you will ensure you won't run out of materials.
For example, a computer is exploded into hard drives, computer chips, random access memory
panels, and processors.

MPS

Imagine you are trying a complex recipe from your favorite celebrity chef cookbook. How would it turn
out if the instructions did not give you any information about the amount of each ingredient or the time
it takes for each process to be completed? You would end up spending much longer trying to work out
how to produce the finished product by looking at videos and pictures. Maybe you’d get it somewhat
right, but there would be a lot of thinking time and uncertainty along the way. This is the difference
between having a master production schedule and making do without one. A small change makes all the
difference. That’s why investing time in learning about master production
scheduling disproportionately boosts your business’ power. Once your MPS is implemented, every staff
member on your shop floor is clear about what needs to be produced each week. Your master
production schedule makes sure everyone in your business is working towards the same goal.

Inventory records file

The inventory records file is used to track information on the status of each item by time period.

So mao ni sila ang mga major inputs and it will be further discuss sa example later on.

Process

Companies need to control the types and quantities of materials they purchase, plan which products
are to be produced and in what quantities and ensure that they are able to meet current and future
customer demand, all at the lowest possible cost. Making a bad decision in any of these areas will
make the company lose money.

Not surprisingly, the primary objective of MRP is to make sure that materials and components are
available when needed in the production process and that manufacturing takes place on schedule.

MRP vs. ERP

An extension of MRP, developed by management expert Oliver Wight in 1983 and called manufacturing
resource planning (MRP II), broadened the planning process to include other resources in the company,
such as financials and added processes for product design, capacity planning, cost management, shop-
floor control and sales and operations planning, among many others.
In 1990, the analyst firm Gartner coined the term enterprise resource planning (ERP) to denote a still
more expanded and generalized type of MRP II that took into account other major functions of a
business, such as accounting, human resources and supply chain management, all of it managed in a
centralized database. Both MRP and MRP II are considered direct predecessors of ERP.

ERP quickly expanded to other industries, including services, banking and retail, that did not need an
MRP component. However, MRP is still an important part of the ERP software used by manufacturers.

What Is the Benefit of Material Requirements Planning?

You may use MRP concepts in a variety of different production environments. You may also use them
for service providers, such as job shops. Examples of production environments include instances in
which products are complex, products are only assembled to order, or demand items are discrete and
dependent. In these cases, MRP can reduce the stored inventory, the component shortages, the overall
manufacturing cost, and, therefore, the cost to purchase. This more accurate scheduling improves your
company’s productivity by decreasing the necessary lead time, giving your customers a higher quality of
production and service. Overall, your company is more competitive in the marketplace.

However, with these advantages come a few drawbacks. Foremost, MRP is only successful if the
accounting is accurate. You must keep records of inventory and BOM changes up to date. Inaccurate
input causes inaccurate output. Another potential downside to MRP is that it can be costly. If you don’t
keep the input in a timely fashion, it can be difficult and expensive when switching over to a new
system.