MRP often doesn’t work, or at least it doesn’t drive the results you might have expected. Is MRP really a flawed approach or can it be an effective planning tool?
We all know what ERP is … the major information management system for manufacturers (and others) that integrates all of the major functions of the business. There is still some confusion, however, about just how some of the other approaches – Lean Manufacturing, Theory of Constraints, DDMRP, etc. – fit in and whether they replace ERP or are complementary.
Material requirements planning (MRP) is the calculation of potential shortages and replenishment activity from the master schedule using the bill of material and inventory availability data. Developed in the early 1950s, the basic approach still is at the center of every enterprise resources planning (ERP) system more than half a century later.
Advice for Manufacturers.
In the earlier days of the spread of Lean Manufacturing, there was a perception among many that you have to make a choice – Lean or ERP.
Technology gives us new capabilities all the time and many of them are vital tools for gaining and maintaining a competitive edge. But tools must be viewed and applied in context to be of benefit.
While this doesn’t seem logical, the “plan materials first, then check capacity” process has been with us since the 1960s, when MRP first was defined and computer resources were scarce and expensive. Today, the computing power necessary to plan material … Continued
I recently have noticed several promotions, e-mails, articles, and Webinars focused on Enterprise resources planning (ERP) for small and midsized businesses (SMBs). The overall tone of these messages implies that ERP is the domain of the big companies and is … Continued
Having worked with hundreds of manufacturing organizations over the last 30 years, it has never ceased to amaze me that inventory control is still the number-one concern. It can be a real issue even for those people who have “mastered” … Continued
Investing in process improvement during tough times is difficult, but it can be vital to long-term viability.