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Procurement Strategies for Dependent Demand Inventory

OVERVIEW: This three-day class explores detailed applications and procedures relevant to Material Requirements Planning (MRP) and materials management for MRPII & JIT/TQC manufacturing environments. Conceptual team-based simulations provided in this course focus on the methods and uses of MRP, Purchasing, Work Order Management (where applicable), Production Activity Control, Detailed Capacity Planning, and Inventory Management.

COURSE DESCRIPTION: In this course we look at scheduling and planning related to the procurement of sub-assemblies, components, and raw materials within an MRP manufacturing environment. We assume that the master schedule is properly established and valid. These planning functions are simulated using participant examples wherever possible. Conference Room Pilot test data unique to your planning challenges can be used to "prove" the validity of techniques and methods and encourage participant involvement.

MRP features and functions provide precise time-phased projections of component requirements so that time-in-inventory may be minimized. It can also be used to provide the input for detailed production capacity planning and to test for near-term component and raw material availability problems. A brief introduction to master production scheduling will be included to see how build schedules are established for independent demand items. Emphasis will then be given to long, mid, and short range planning through MRP and the corresponding procurement procedures necessary to support the projected material plan. A simulation of procedures often used to manage inventory, purchasing requirements, work orders, and shop floor dispatch lists via detailed capacity planning are provided to test participant understanding of "closed-loop" communication and its importance. Performance measures, inventory management strategies, bills of material and accuracy requirements necessary to maintain a valid material plan will also be included.

WHO SHOULD TAKE THIS COURSE: This detail-oriented course is recommended for all project team members. It is designed specifically for both MPS & MRP schedulers and planners, materials managers, purchasing managers and buyers, manufacturing product-line managers and their supervisors who need to understand the methods used to establish and maintain valid production schedules. Effective "closed-loop" communication and accountability is not possible without this course! Those responsible for service parts and distribution inventory should also attend.

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