3. Modalidad, extensión y ámbito territorial del seguro
3.5 Cláusula de subrogación o de cesión de derechos
process.
WHEN DOES IT GET APPLIED? MRP I is applied when
1. The process follows an intermittent system. 2. Demand is dependent
3. Purchasing dept., their suppliers and company’s own manufacturing system is flexible enough to handle deliveries on weekly basis
ADVANTAGES OF MRP I
1. Improved business results [ROI, profits] 2. Improved manufacturing results
3. Better manufacturing control
4. More accurate and timely information 5. Less inventory
6. Time phased ordering of materials 7. Less materials obsolescence 8. Higher reliability
9. More responsiveness to market demand 10. Reduced production costs
DISADVANTAGES OF MRP I
1. Due to small lot purchases high material acquisition costs and high ordering costs 2. Stock out costs are more as safety stock protection is low
3. A limitation of software as adapting to specific situations is difficult. So modification of the software is necessary
MRP II
MRP I is updated and expanded to include financial and marketing and logistics elements. This newer version is called Manufacturing Resources Planning or MRP II. Includes entire set of activities involved in planning and control of production.
It consists of a variety of functions of modules and includes production planning, resource requirements planning, master production scheduling, materials requirement planning [MRP I], shop floor control and purchasing
Benefits of MRP II
1. Inventory reductions of one fourth to one third 2. Higher inventory turn over
3. Improved consistency in on-time customer delivery
4. Reduction in purchasing costs due to less urgent purchases 5. Minimization of workforce overtime
DISTRIBUTION RESOURCE PLAN [DRP]
Distribution requirement planning (DRP)
It is a more sophisticated approach that considers multiple distribution stages and the characteristics of each stage. It is a logical extension of MRP, although there is one fundamental difference between the two.
• MRP is determined by a production schedule that is defined and controlled by the enterprise. On the other hand, DRP is guided by customer demand, which is not controllable by the enterprise.
• So, while MRP generally operates in a dependent demand situation, DRP operates in an independent environment where uncertain customer demand determines inventory requirements. The manufacturing requirements planning component coordinates the scheduling and integration of materials into finished goods.
• MRP controls inventory until manufacturing or assembly is complete. DRP then takes coordination responsibility once finished goods are received in the plant warehouse.
The fundamental DRP planning is the schedule, which coordinates requirements across the planning horizon. There is a schedule for each SKU and each distribution facility. Schedules for the same SKU are integrated to determine the overall
requirements for replenishment facilities such as the plant warehouse. The schedules are developed using weekly time increments known as ‘buckets’. The schedule
reports current on-hand balance, safety stock, performance cycle length and EOQ.
Distribution Resource Plan is a widely used powerful technique applied to outbound logistics to help determine appropriate level of inventory
Distribution requirement planning [DRP I] is defined as “the application of MRP
principles to the distribution environment [out bound logistics], integrating the special needs of distribution. It is a dynamic model that looks at the time phased plans of events that effect inventory.
Distribution Resource Planning [DRP II] is an extension of DRP I. Distribution
resources planning applies the time phased logic of DRP I to replenish inventories in multi echelon warehousing systems. Distribution resources planning extends DRP I to include the planning of key resources in a distribution system –ware house space, man power levels, transport capacity [e.g. trucks, rail cars] and financial flows.
As an extension of DRP I, DRP II uses the needs of distribution to drive the master schedule, controlling the bill of materials and ultimately materials requirement planning. In essence, DRP I & DRP II are outgrowths of MRP I & MRP II, applied to logistics activities of a firm.
Uses of DRP generated information
♦ Coordinate the replenishment of SKUs coming from the same source [e.g. a company owned or vendor’s plant.]
♦ Select transportation modes and carriers and shipment sizes more cost efficiently. ♦ Schedule shipping and receiving labour
♦ Develop a master production schedule for each SKU Accurate forecasts are essential ingredients for successful DRP II system.
MARKETING BENEFITS
•
Increased service levels - improved OTD, reduced Customer Complaints•
Effective new product introduction plans•
Ability to anticipate shortagesLOGISTICS BENEFITS
•
Reduced distribution costs•
Reduced inventory levels•
Decreased warehouse space requirement as inventory is low•
Lesser back orders•
Improved inventory visibility & coordination between manufacturing and logisticsCONSTRAINTS
•
Needs accurate forecast•
Sources of errors in the system - Inaccuracy in forecast quantity - Inaccuracy in forecast location - Inaccuracy in forecast time•
Variable performance cycles•
System nervousness•
Uncertainty buffers COMPARE DRP & MRPDRP MRP
1.scope Outbound logistics Inbound logistics
2.dependence for
planning inputs Market Production Schedule worked out based on past data in the organization [Forecast based on past data]
3. Coordination
responsibility Once the finished goods are produced. Up to Finished Goods starting from raw materials production.
4. Nature of plan Short term and accurate
5. What is forecast? Finished goods Dependent demand 6. Planning Tool Schedule prepared for
delivery of supplies in the outbound logistical network.
Production schedule
7. Inventory
management of? SKUs Raw Materials, components
8. Planning availability
of stock at? Market [retailers] & warehouses RawConversion process & finished material stores, goods store
PURCHASING AND PRODUCTION SCHEDULING
In the supply chain management the inbound logistics system is frequently referred to as material’s management and the outbound system is usually called physical distribution. The integration of the inbound and outbound system is extremely important to the efficient and effective management of the logistics supply chain.
Materials management involves the planning and control of the flow of materials that are a part of the inbound logistics system. It includes the following activities:
Procurement (or purchasing), Warehousing Production planning (or scheduling), Inbound transportation Receiving materials. Quality control, Inventory planning and control all Salvage and Scrap disposal.
PROCUREMENT OR PURCHASING
Procurement or purchasing which is also known as supply management encompasses any activity involved in moving goods into a firm. It aims at anticipating requirements, sourcing and obtaining supplies, moving supplies into the firm and monitoring the status of supplies as current asset.
ROLE OF PURCHASING IN LOGISTICS MANAGEMENT
Logistics spans both inbound and outbound relationships and flow of materials. Effective Procurement of goods and services enables an organization to achieve competitive advantage. The procurement process links members in the supply chain and assures the quality of suppliers in that chain. The quality of materials and services which are inputs to the production process affects the quality of finished goods which in turn affects customer satisfaction and revenue for the firm and its profitability. Since cost of inputs is a major cost in many manufacturing firms, Procurement function acts as a determinant of revenues, costs and supply chain relationships. Purchasing is the act of buying goods and services for the firm in the narrow sense, while Procurement consists of all those activities necessary to acquire goods and services consistent with user requirements. Procurement has a strategic importance in the value chain because it includes activities such as qualifying suppliers procuring various types of inputs, and monitoring supplier performance. As such, procurement serves as a vital link between members of the supply chain.
Purchasing is important to a firm because of two reasons: (i) cost efficiency and (ii) Operational effectiveness. Purchase managers have a major responsibility of safeguarding the financial interests of their firms by economizing on the cost of purchased goods and services thereby creating a competitive advantage for their firms. Efficient purchasing optimizes inventory holding and avoids production stoppages (due to shortages of materials) thereby maintaining operational effectiveness of the firm.
The role of purchasing in the supply chain is illustrated