Manufacturing requires the right balance of many factors. One of the most important is inventory management – the materials and components needed for the manufacturing process. The more efficiently a company manages its material needs, the more profit it will make. Identify problems and make recommendations Because MRP links raw materials to work orders and sales orders, it can automatically notify your team when items are delayed and make recommendations for existing orders: automatically swap or exit production, perform what-if analysis, and generate exception plans to complete required builds. For Company A, where some products are stored in long batches, MRP seems to be a no-brainer. The assembly or master plan can be used with a bill of materials and inventory file to solve requirements and reduce turnaround times for purchased parts and subassemblies. In addition, the Material Requirements Planning (MRP) system helps companies maintain low inventory levels by managing manufacturing, purchasing, and delivery activities. iAuditor from SafetyCulture is a perfect tool for MRP implementation. It offers a number of features that help companies track material flow and production schedules. iAuditor facilitates the organization and efficiency of the MRP process.

In addition, custom reports can be created to help companies resolve issues in their MRP process. For example, if I sell cupcakes, a sales order for 200 cupcakes generates an independent demand for a quantity of 200 units of the cupcake line. Assuming I`m lazy and using a ready-to-cook mix that I only need to add water to, then the nomenclature of my cupcakes (the ingredients in the recipe) would require 1 bag of ready-to-cook mix and 0.5L of water for every 20 cupcakes. In this case, my sales order of 200 cupcakes creates a dependent demand of 200/20 = 10 bags of ready-to-cook mix and 200/20 * 0.5 L = 5 L of water. It wasn`t until the 1960s that the estate received its modern name. At that time, a small group of influential engineers advocated an integrated computer-aided planning system, which they called material requirements planning. In 1964, IBM engineer Joseph Orlicky developed and formalized MRP after studying the Toyota production system, which was the model for lean production methodology. In 1967, Oliver Wight, Orlicky`s colleague at IBM, co-authored a book on production and inventory control with George Plossl, a mechanical engineer and management consultant. The three continued to work together and are now primarily considered pioneers of the MRP.

MRP is a crucial tool in production planning and inventory control (PPIC). Typically, it is used with other manufacturing systems such as enterprise resource planning (ERP) and supply chain management (SCM). With this information, companies can perform just-in-time (JIT) production and schedule production based on material availability. This minimizes stock levels and transportation costs, as the stock is not stored in the warehouse for future production, but arrives when needed. By scheduling the arrival of materials and the start of production shortly thereafter, companies can move materials through the workflow process without delay. The application can be independent or dependent. An independent request is usually a request from customers (external and internal), such as a sales order or sales forecast. A dependent demand is generated by an independent request by a BOM. From the nomenclature, we know that we need these parts: two wooden sides, a wooden pen, a piece of string and a cardboard box with printed instructions. A check of the inventory status file shows that we have no stock or open orders for these parts, except that we have a wooden side at hand. We know that the lead times are: pages, five weeks; Pegs, one week; cord, one week; Boxing, four weeks. And we know it will take a week to assemble the toy.

In order to ship within the seventh week, we need everything in time for assembly in the sixth week. MRP synchronizes the flow of materials, components and parts in a progressive control architecture, taking into account the manufacturing schedule. It also filters hundreds of parameters, including: Finally, MRP systems may not be flexible enough to adapt to changing needs or conditions.