Leverage Manufacturing Productivity With Mrp
In order to leverage manufacturing productivity with MRP you have to understand where MRP comes from and what it is. Material Requirements Planning (MRP) was born out of necessity in the 1960s. Most MRP systems are software based. So yes, some computer skills are needed. What does it mean to leverage manufacturing productivity with MRP? Three goals are in mind from the get go:
Maintain a low level of onsite inventory, thus optimizing the space you have available.
Planned manufacturing allowing for the manufacturing of goods in a more orderly and timely manner.
Materials and products are available for use and delivery to customers.
Storing only a small amount of stock is important to most manufacturers. All the same you have to be careful not to run out. Running out of materials can result in downtime and can cause issues such as lost wages or non-productive time which can raise your labor overhead. By planning ahead, the materials needed can be made available much more effectively than with stockpiling. Another added benefit is space; additional floor space can be used for production and less for storage ensuring additional income per square yard.
Being able to plan production in advance based on prior production levels can be problematic if done by hand, and most likely incorrect. Because of this, the ability to have an accurate schedule of production capabilities and a materials list and projected labor costs literally at ones fingertips is now a requirement of manufacturing.
When it comes to materials, having them on hand when they are needed is important if you want to leverage manufacturing productivity with MRP. If you buy materials according to accurate productivity and production information, this will help increase the bottom-line, reduce waste and open up floor space as well as optimise labor.
Once you leverage manufacturing productivity with MRP you will essentially have 2 outputs with the majority of the material requirements planning software packages available; schedule and ordering.
Scheduling is based upon a number of key factors, all of which should be programed in, such as the time spent on varous manufacturing operations, material handling needs and several others. Once this is inputted the MRP software will suggest a production schedule. This is only a recommendation however and could be improved upon. What this gives you is a concise starting point on a job.
Ordering is another suggestion that all good MRP systems will give. This can also be easily refined by some personal knowledge. The important thing is that there is less chance of error when an ordering schedule is established. Also when there are many parts and materials coming in from the providers, an ordering schedule will serve to simplify the process considerably.
Leveraging manufacturing productivity with MRP is simple and effective, and is becoming invaluable to many manufacturers. Knowing this and understanding how material requirements planning works can help management to leverage their time and the time of their employees much more effectively and bump up profit margins. Everyone's a winner.
Maintain a low level of onsite inventory, thus optimizing the space you have available.
Planned manufacturing allowing for the manufacturing of goods in a more orderly and timely manner.
Materials and products are available for use and delivery to customers.
Storing only a small amount of stock is important to most manufacturers. All the same you have to be careful not to run out. Running out of materials can result in downtime and can cause issues such as lost wages or non-productive time which can raise your labor overhead. By planning ahead, the materials needed can be made available much more effectively than with stockpiling. Another added benefit is space; additional floor space can be used for production and less for storage ensuring additional income per square yard.
Being able to plan production in advance based on prior production levels can be problematic if done by hand, and most likely incorrect. Because of this, the ability to have an accurate schedule of production capabilities and a materials list and projected labor costs literally at ones fingertips is now a requirement of manufacturing.
When it comes to materials, having them on hand when they are needed is important if you want to leverage manufacturing productivity with MRP. If you buy materials according to accurate productivity and production information, this will help increase the bottom-line, reduce waste and open up floor space as well as optimise labor.
Once you leverage manufacturing productivity with MRP you will essentially have 2 outputs with the majority of the material requirements planning software packages available; schedule and ordering.
Scheduling is based upon a number of key factors, all of which should be programed in, such as the time spent on varous manufacturing operations, material handling needs and several others. Once this is inputted the MRP software will suggest a production schedule. This is only a recommendation however and could be improved upon. What this gives you is a concise starting point on a job.
Ordering is another suggestion that all good MRP systems will give. This can also be easily refined by some personal knowledge. The important thing is that there is less chance of error when an ordering schedule is established. Also when there are many parts and materials coming in from the providers, an ordering schedule will serve to simplify the process considerably.
Leveraging manufacturing productivity with MRP is simple and effective, and is becoming invaluable to many manufacturers. Knowing this and understanding how material requirements planning works can help management to leverage their time and the time of their employees much more effectively and bump up profit margins. Everyone's a winner.
Source...