Thesis (M.Eng.) - Asian Institute of Technology

A thesis submitted in partial fulfillment of the requirements for the degree of Master of Engineering, School of Advanced Technologies

This study presents theoretical concepts of some of the basic Manufacturing Resource Planning (MRPII) modules with reference to their implementation in a continuous process industry. An effort is also being made to suggest and develop some performance measuring tools in productivity and inventory control sectors. The case to be considered in this study relates to Urea Fertilizer Manufacturing industry Mis Fauji Fertilizer Company Ltd. a petrochemical plant, which, at present, does not use any formal production planning philosophies. Company also faces the problems of increasing inventory levels, large capital investments in inventory, large space allocation, longer lead times for both local and foreign purchases etc. This study mainly aims to solve some of the existing problems faced by the company, by applying Manufacturing Resource Planning (MRPII) as the basic methodology. This research has been performed in three steps. First of all, detailed study of company's production process and development of process Bill of Material (BOM) has been carried out. Secondly, preparation of company's annual monthly production plan based on the forecasts of actual monthly production figures in the previous years and performance measurement in terms of capacity and service factors have been done. Finally, analysis of company's existing inventory control system, and ABC classification for some of the item classes have been carried out. After that, appropriate lot-sizing techniques based upon their usage trend and ABC classification have been suggested. Ultimately, some performance measuring tools for their material inventory system is recommended as a part of the continuous improvement process.