Material requirement planning; Freudenberg: Eagle Burgmann India

Abstract

The objective of the project was to analyse the MRP system at Eagle Burgmann India with an in depth analysis of the activities of planning and materials. As an extension of this project a study of Capacity Resource Planning was also carried out for improvising the delivery dates of the final product. The report consists of the detailed analysis of the various activities of Planning and Materials in the MRP system at Eagle Burgmann India; identify the crucial activities, ascertain the activities that do not add much value and suggest plausible modifications. With the final aim of creating a smoother process, the capacities of the vendors and lead time to procure various materials have also been calculated to identify the reasons for the cases in which market commitment dates were missed. Material Requirement Planning is an integral part of the entire supply chain operations at Eagle Burgmann India. Right from the design state to the final assembly of the components, MRP plays a pivotal role in the movement of material and information. Theoretically, MRP is the logic for determining the number of parts, components, and materials needed to produce a product. MRP provides time scheduling information specifying when each of the materials, parts, and components should be ordered or produced based on lead times. A generic MRP system comprises of Aggregate Product plan which coupled with known & forecasted demand orders constitute Master Production schedule. This master production schedule along with Engineering Design (Bill of Material) and Inventory levels drive the MRP system. The output of the MRP are the work orders and purchase orders. The MRP software used at Eagle Burgmann India is extensive software which encompasses the o Manufacturing Resource Planning as well and has stark resemblance to the theoretical model of MRP. Since the Firm operates on Made to Order model, the process starts only after the order has been received. After the design of the order id finalised, the bill of material is released. This bill of material is checked against the inventory items for availability and a shortage list is prepared, the entire exercise is known as simulation. The shortage items are then procured and assembled. The finished goods are despatched on a date which was arrived after taking the times committed by various departments in to account. The firm operates on a moderate time fence, i.e. the production plan for the subsequent month are fixed, but certain changes are allowed based on customer demand and other last moment requirements.