Nadia Febianita Shinta Dwi Wahyuni Yohanes Febryanto Psycho Sports Ltd Nadia Febianita Shinta Dwi Wahyuni Yohanes Febryanto

Specialist Sport Shops Included some of major sports retail chain Background Key Person : Peter Townsend Psycho Sports  Sports Goods Manufacturing Over the last two years  had grown rapidly Product Customers Table Tennis Bats Including : Tennis Balls, Darts, Protective Equipment for various games Specialist Sport Shops Included some of major sports retail chain

“Manufacturing Control“ Background Take as examples  ‘High-Resolution Bat‘ (5654) Peter set six exercise too understand fully basics of MRP Problem “Manufacturing Control“ Would soon to install some systematic procedures and routines to manage the business

Given Data Sales Forecasts Weeks Quantity 13-21 100 per week 22-29 30-35 200 per week

Given Data

Given Data Given Data

Questions Why did Peter have such problems getting to the relevant information? Perform all the exercises which Peter set for himself. Do you think he should now fully understand MRP?

Exercises Exercise 1 Draw up: the single-level bill of materials for each level of assembly, a complete indented bill of materials for all levels of assembly Exercise 2 Create the materials requirements planning records for each part and sub-assembly in the bat List any problems that the completed MRP records identify What alternatives are there that the company could take to solve any problems? What are their relative merits?

Exercises Exercise 3 Based on the first two exercises, create another set of MRP records, this time allowing one week‘s safety lead time for each time: that is, ensuring the items are in stock the week prior to when they are required Exercise 4 Over the time period of the exercise, what effect would the imposition of a safety lead time have on average inventory value?

Exercises Exercise 5 If we decided that our first task was to reduce inventory cost by 15 per cent, what action would be recommend? What are the implications of our action? Exercise 6 How might production in our business be smoothed?

Question 1 Data mengenai Inventori tidak tersimpan secara centralized dan tidak ada komunikasi antar departemen Beberapa informasi tidak tercatat dengan baik

Exercise 1 a. The single-level bill of materials for each level Part No 5654 Description Bat Level Part Number Quantity 1 0499 Handle Assy 7754 Shaft 0955 Connector 9110 Nail 4 8744 Rivet 0772 Face Assy

Exercise 1 Part No 0499 Description Handle Assy Level 1 Part Number Quantity 2 1821 Handle 9110 Nail Part No 0772 Description Face Assy Level 1 Part Number Quantity 2 6511 Rubber Face 2547 Wooden inner 8561 Foam Panel

Exercise 1 b. Complete idented bill of materials for all levels of assembly Level Part Number Desription Quantity 5654 Bat 1 0499 Handle Assy 2 1821 Handle 9110 Nail 7754 Shaft 0955 Connector 4 8744 Rivet 0772 Face Assy 6511 Rubber Face 2547 Wooden inner 8561 Foam Panel

a. Material Requirement Planning (MRP) Record Exercise 2 a. Material Requirement Planning (MRP) Record Part Number 5654 EQ 500 LT 2 Week Number 1 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Avrg level Unit Cost Avrg Value Gross Requirement   100 150 200 Schedule Receipts On Hand Inventory 400 300 450 350 50 145.7 1748.6 Planned Order Release Part Number 0499 EQ 400 LT 3 Week Number 1 2 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Avrg level Unit Cost Avrg Value Gross Requirement   500 Schedule Receipts On Hand Inventory 300 200 100 125.7 502.8 Planned Order Release 800 Part Number 7754 EQ 1000 LT 5 Week Number 1 2 3 4 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Avrg level Unit Cost Avrg Value Gross Requirement   500 Schedule Receipts On Hand Inventory 515 243.6 Planned Order Release Part Number 0955 EQ 5000 LT 4 Week Number 1 2 3 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Avrg level Unit Cost Avrg Value Gross Requirement   500 Schedule Receipts On Hand Inventory 350 4850 4350 3850 3350 2850 2350 1850 2607.1 0.02 52.1 Planned Order Release

a. Material Requirement Planning (MRP) Record Exercise 2 a. Material Requirement Planning (MRP) Record Part Number 9110 EQ 5000 LT 4 Week Number 1 2 3 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Avrg level Unit Cost Avrg Value Gross Requirement   1600 2000 800 3600 2800 Schedule Receipts On Hand Inventory 120 3520 1520 720 3720 2920 920 3920 1794.3 0.01 17.9 Planned Order Release Part Number 8744 EQ 5000 LT 4 Week Number 1 2 3 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Avrg level Unit Cost Avrg Value Gross Requirement   2000 Schedule Receipts On Hand Inventory 3540 1540 4540 2540 540 2997.1 0.01 29.9 Planned Order Release Part Number 0772 EQ 250 LT 4 Week Number 1 2 3 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Avrg level Unit Cost Avrg Value Gross Requirement   500 Schedule Receipts On Hand Inventory Planned Order Release Part Number 1821 EQ 500 LT 4 Week Number 1 2 3 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Avrg level Unit Cost Avrg Value Gross Requirement   800 400 Schedule Receipts On Hand Inventory 200 300 222.9 445.7 Planned Order Release 1000

a. Material Requirement Planning (MRP) Record Exercise 2 a. Material Requirement Planning (MRP) Record Part Number 6511 EQ 2000 LT 10 Week Number 1 2 3 4 5 6 7 8 9 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Avrg level Unit Cost Avrg Value Gross Requirement   1000 Schedule Receipts On Hand Inventory neg 516.1 0.5 258.1 Planned Order Release Part Number 2547 EQ 300 LT 7 Week Number 1 2 3 4 5 6 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Avrg level Unit Cost Avrg Value Gross Requirement   500 Schedule Receipts On Hand Inventory neg 110 210 95.3 1.5 142.9 Planned Order Release 600 Part Number 8561 EQ 1000 LT 8 Week Number 1 2 3 4 5 6 7 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Avrg level Unit Cost Avrg Value Gross Requirement   Schedule Receipts On Hand Inventory neg 0.5 Planned Order Release Total 3441.8

b. Problems from MRP Records Exercise 2 b. Problems from MRP Records Terdapat masalah pada inventory yaitu pada item Rubber Face (6511), Wooden Inner (2547) dan Foam Panel (8561). Perusahaan tidak dapat memenuhi demand tepat waktu dikarenakan 3 item tsb tidak tersedia pada saat dibutuhkan (delay). c. Alternative Solutions a. Menekan supplier untuk memproduksi lebih cepat. Dengan resiko: membayar lebih mahal dan kualitas menurun. b. Mencari supplier lain yang bersedia untuk memproduksi material yang sama lebih cepat Dengan resiko: belum mengetahui kualitas dari supplier baru

Material Requirement Planning (MRP) Record Exercise 3 Material Requirement Planning (MRP) Record + 1 safety week Part Number 5654 EQ 500 LT 2+1 Week Number 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Avrg level Unit Cost Avrg Value Gross Requirement   100 150 200 Schedule Receipts On Hand Inventory 400 300 600 450 350 550 245.7 2948.6 Planned Order Release Part Number 0499 EQ 400 LT 3+1 Week Number 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Avrg level Unit Cost Avrg Value Gross Requirement   500 Schedule Receipts On Hand Inventory 800 300 700 200 600 100 231.4 925.7 Planned Order Release Part Number 7754 EQ 1000 LT 5+1 Week Number 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Avrg level Unit Cost Avrg Value Gross Requirement   500 Schedule Receipts On Hand Inventory 1015 515 372.1 Planned Order Release Part Number 0955 EQ 5000 LT 4+1 Week Number 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Avrg level Unit Cost Avrg Value Gross Requirement   500 Schedule Receipts On Hand Inventory 350 5350 4850 4350 3850 3350 2850 2350 1850 2792.9 0.02 55.9 Planned Order Release

Material Requirement Planning (MRP) Record Exercise 3 Material Requirement Planning (MRP) Record + 1 safety week Part Number 9110 EQ 5000 LT 4+1 Week Number 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Avrg level Unit Cost Avrg Value Gross Requirement   1600 2000 800 2800 Schedule Receipts On Hand Inventory 120 5120 3520 1520 720 5720 2920 3720 920 5920 3920 2697.1 0.01 27.0 Planned Order Release Part Number 8744 EQ 5000 LT 4+1 Week Number 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Avrg level Unit Cost Avrg Value Gross Requirement   2000 Schedule Receipts On Hand Inventory 3540 1540 6540 4540 2540 540 5540 3454.3 0.01 34.5 Planned Order Release Part Number 0772 EQ 250 LT 4+1 Week Number 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Avrg level Unit Cost Avrg Value Gross Requirement   500 Schedule Receipts On Hand Inventory 100.0 500.0 Planned Order Release Part Number 1821 EQ 500 LT 4+1 Week Number 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Avrg level Unit Cost Avrg Value Gross Requirement   800 400 Schedule Receipts On Hand Inventory 1000 200 700 300 360.0 720.0 Planned Order Release

Material Requirement Planning (MRP) Record Exercise 3 Material Requirement Planning (MRP) Record + 1 safety week Part Number 6511 EQ 2000 LT 10+1 Week Number 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Avrg level Unit Cost Avrg Value Gross Requirement   1000 Schedule Receipts On Hand Inventory neg 793.1 0.5 396.5 Planned Order Release Part Number 2547 EQ 300 LT 7+1 Week Number 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Avrg level Unit Cost Avrg Value Gross Requirement   500 Schedule Receipts On Hand Inventory neg 110 710 210 510 610 194.4 1.5 291.6 Planned Order Release 600 Part Number 8561 EQ 1000 LT 8+1 Week Number 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Avrg level Unit Cost Avrg Value Gross Requirement   Schedule Receipts On Hand Inventory neg 2000 322.6 0.5 161.3 Planned Order Release Total 6433.2

Exercise 4 Increase: 86,92% Inventory Value Source 3441.78 Exercise 2 6433.20 Exercise 3 Increase: 86,92%

Exercise 5 Raw Materials Mengurangi inventory level dengan prinsip Just-In-Time (JIT) Exercise 2 dan 3 menunjukkan dengan one-week safety lead time, cost of inventory meningkat 86.92% Implikasi: Order cost meningkat karena sedikitnya order Resiko stock-outs

Exercise 5 b. Finished Goods Fleksibilitas dalam jumlah produksi dengan menyesuaikan kuantitas permintaan sehingga mengurangi inventory Implikasi: Mengurangi produktivitas mesin dan pekerja Resiko stock-outs

Exercise 5 c. Work in Process Untuk mengurangi unnecessary delays, perusahaan harus meningkatkan kontrol pada sistem produksi Memaksimalkan kapasitas mesin dan penggunaan JIT Implikasi: Butuh tambahan pekerja untuk melakukan kontrol

Exercise 6 Dalam realita, ada beberapa hambatan: Fleksibilitas Beberapa variabel MRP (lead time, batch size) bersifat fixed  kurang reliable Unexpected events (mesin rusak) Perusahaan perlu memiliki kontrol terhadap keseluruhan sistem dan perencanaan yang matang

Question 2 Simulasi yang dilakukan dapat membantu Peter memahami cara kerja MRP dan mengerti keterkaitan antar department dalam Pscycho Sports Ltd.

Q & A session