DOI QR코드

DOI QR Code

Development of Distributed MRP System for Production Planning and Operation in Korean OEM/ODM Cosmetics Manufacturing Company

국내 OEM/ODM 화장품 제조기업의 생산계획 및 효율화를 위한 분산형 MRP시스템 개발

  • Jang, Dongmin (Department of Industrial and Management Engineering, Hanbat National University) ;
  • Shin, Moonsoo (Department of Industrial and Management Engineering, Hanbat National University)
  • 장동민 (한밭대학교 산업경영공학과) ;
  • 신문수 (한밭대학교 산업경영공학과)
  • Received : 2020.11.02
  • Accepted : 2020.12.18
  • Published : 2020.12.31

Abstract

Up to date cosmetic OEM/ODM (original equipment manufacturing/original development manufacturing) industry receives attention as a future growth engine due to steady growth. However, because of limited research and development capability, many companies have employed commercial management platforms specialized for large-sized companies; thus, overall system effectiveness and efficiency is low. Especially, MRP (material requirement planning) system introduced originally in 1970s is employed to calculate the requirement of the parts. However, dynamic nature of production lead time usually results in incorrect requirements. In addition, its algorithm does not consider the capability of the production resources. Also, because the commercial MRP system calculates all subcomponent for fixed period, the more goods have subcomponent, the slower calculation is. Therefore, conventional MRP system cannot respond complicated situation in time. In this study, we will suggest a new method that can respond to complicated situations resulting from short lead time and urgent production order in Korean cosmetic market. In particular, a distributed MRP system is proposed, that consists of multi-functional and operational modules, based on the characteristic of the BOM (bill of material). The distributed MRP system divides components (i.e. products and parts) into several fields and decrease the problem size; thus, we can respond to dynamically changed data any time. Through this solution, we can order components quickly, adjust schedules and planned quantity, and manage stocks reasonably. In addition, a prototype of the distributed MRP system is presented in this paper, in which ERP (enterprise resource planning) sever data is associated with an excel spreadsheet via MSsql. System user interface is implemented by a VBA (visual basic for applications) tool. According to a case study, response rate for delivery and planning achievement rate were enhanced about 20%, and inventory turnover was also decreased. Consequently, the proposed system improves overall profit.

Keywords

References

  1. Chang, B., Multi-product, multi-site production and transportation scheduling problem, Proceedings of the Korean Operations Research and Management Science Society Conference, 1993, pp. 36-45.
  2. Jung, B., So, Y., Huh, E., Lee, H., Cho, Y., and Kim, J., Development of a production information system for medium and small-sized enterprises, Proceedings of the Korean Operations Research and Management Science Society Conference, 1996, pp. 190-193.
  3. Kim, D., Lee, K.-H., Lee, J.-H., Lee, J.-M., Lee, K., and Kim, J.-H., Integration of ship outfitting BOM with lifecycle stages, Korean Journal of Computational Design and Engineering, 2011, Vol. 16, No. 3, pp. 187-196.
  4. Kim, H. and Kim, P., Material requirements planning for military maintenance depot, Journal of Society of Korea Industrial and Systems Engineering, 2014, Vol. 37, No. 4., pp. 24-34. https://doi.org/10.11627/jkise.2014.37.4.24
  5. Kim, M., A study of managing strategies for distribution channel in the cosmetic business: focusing on Chinese cosmetic market [master's thesis], [Seoul, Korea] : Sungkyunkwan University, 2012.
  6. Kim, S., Lee, Y., and An, D., A control account planning using material requirement planning in earned value project, Korean Journal of Construction Engineering and Management, 2002, Vol, 3, No. 4, pp. 114-122.
  7. Koh, S. and Kim, J., Implementation of DBR system with Kanban in a production line of static demand, IE Interfaces, 2002, Vol. 15, No. 1, pp. 99-106.
  8. Kung, L. and Chern, C., Heuristic factory planning algorithm for advanced planning and scheduling, Computers and Operational Research, 2009, Vol. 36, No. 9, pp. 2513-253. https://doi.org/10.1016/j.cor.2008.09.013
  9. Lee, H., Na, H., and Park, J., Study on performance enhancement of MRP explosion in ERP environment, Proceedings of Korean Society for Precision Engineering Conference, 2005, pp. 40-40.
  10. Lee, J. and Shin, M., A case study on application of dispatching rule-based advanced planning and scheduling (APS) system, Journal of Society of Korea Industrial and Systems Engineering, 2015, Vol. 38, No. 3, pp. 78-86. https://doi.org/10.11627/jkise.2015.38.3.78
  11. Lee, K., Industry 4.0 and problems of MRP, Proceedings of Korean Institute Of Industrial Engineers Conference, 2017, pp. 2253-2270.
  12. Lee, Y., Shin, H., and Kim, M., CIM implementation through JIT and MRP integration, IE Interfaces, 1994, Vol. 7, No. 3, pp. 39-51.
  13. Orlicky, J., Materials requirements planning : the new way of life in production and inventory management, McGraw-Hill, 1975.
  14. Plossl, G.W. and Orlicky, J., Orlicky's Material Requirements Planning, McGraw-Hill, 1994.
  15. Seok, J.W. and Chung, B.M., An MRP system of small companies for order-based production, Proceedings of the KSMPE Conference, 2004, pp. 99-103.
  16. Suh, J., A case study on OOP component build-up for reliability of MRP system, Journal of the Korea Safety Management and Science, 2004, Vol. 6, No. 3, pp. 211-235.
  17. Whybark, D.C. and Williams, J.G., Material requirements planning under uncertainty, Decision Sciences, 1976, Vol. 7, No. 4, pp. 595-606. https://doi.org/10.1111/j.1540-5915.1976.tb00704.x