On the bustling manufacturing floor, the coordination of procurement, inventory and production resembles a carefully choreographed dance. MRP scheduling streamlines part of this process by accurately planning the procurement of dependent demand items to ensure the necessary raw materials, components and subassemblies are on hand when they are needed to produce the end product according to the production schedule.
|Download Free Resources|
Material requirements planning (MRP) is an inventory and purchasing planning tool that calculates the amount of dependent demand items such as raw materials, components and subassemblies needed to produce a finished good according to its demand-driven production schedule.
The process of producing a finished good begins with determining which materials are needed in what quantity and capturing this information in a bill of material (BOM). Then, you must procure the necessary materials, which can entail sourcing them externally or drawing from existing inventory stocks. MRP scheduling orchestrates the procurement of those items. Some MRP systems can even create purchase orders automatically. MRP scheduling also helps determine how much on-hand inventory to keep.
The production schedule is highly dependent on the lead times of the supply chain, and MRP scheduling greatly simplifies and increases the transparency of this part of the process. To support accurate MRP scheduling and thus production scheduling, the MRP system must have access to the material master record, which contains the following procurement parameters:
Without accurate MRP scheduling, production planning and scheduling becomes challenging if not impossible. But MRP scheduling is just one piece of the puzzle, and furthermore, not all MRP systems are created equal. MasterControl Manufacturing Excellence enhances the performance of manufacturing information systems and processes such as MRP through integration and automation. The result is a fully connected manufacturing operation with automated processes and documentation, allowing companies to access new and powerful data insights.
MasterControl Manufacturing Excellence allows your company to:
For more information about MasterControl Manufacturing Excellence and how it can improve your MRP scheduling, please contact a MasterControl representative.