Company Discipline and Support - A Key Part of MRP Software



Posted: Tuesday, September 15, 2009

by David Kraft

MRP stands for Material Resource Planning. The primary function of MRP is to have materials and resources available on a timely basis. When used in a manufacturing environment, MRP is deployed, as MRP Software and the terms are interchangeable.

Since the MRP system is software, key to the proper functioning of an MRP system is to have good data in the program. The MRP software is built around files, which describe the content and labor required. These files are called Bills of Material, usually referred to as BOMs. It is critical in MRP software, or in any manufacturing software to have the BOM files accurate and up to date to get the desired benefits of cost reduction, inventory control and on time delivery. This means it is critical for the company to have the discipline to maintain this accuracy throughout the life of a program.

The discipline of an MRP system needs to start up front, with process engineering and production working together to get good estimates into the system when setting up for the first run. When the actual first run occurs, exceptions need to be noted, and the bill of material needs to be corrected. This is often done in a postproduction meeting, although the formality of it is less important than the actual actions. This will assure that when a future order is run, there are no mis-counts of hardware or material, and a unit will be correctly produced with no exceptions.

Many smaller companies, due to staffing or perceived staffing issues will let these changes stack up unprocessed, and small MRP errors compound over time. Left unchecked, the result is a system that is little better and perhaps even worse than a manual system. MRP Software will be of little use if a company lacks the discipline or will not dedicate the resources to maintain it. MRP software like any manufacturing software is a tool and all tools must be properly maintained to be effective.

Failure to follow up on BOM accuracy is not the only place discipline is required.

As print changes are made, either internally or driven by a customer, there should be an Engineering Change Notice or ECN process. This process is designed to ensure all applicable documents and information is updated. This process should include updating the Bill of Material in the MRP system. Bad practices seen include folders containing marked up Bills of Material in the hope the marked up copy is used on subsequent jobs. If that is not the case, an obsolete BOM will produce an obsolete part. The cost to the company varies, but the bottom line is MRP system is a tool to increase efficiency and profit. A company that plans to install MRP Software must also plan to staff it properly and instill the proper discipline to make it realize those benefits.

David Kraft is a freelance author that writes about numerous subjects. He is very knowledgeable about MRP software and writes tips for business owners looking for advice in selecting their next manufacturing software package.

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Top-level comments on this article: (1 total)
» left by Connor Davidson
 2 years 239 days ago.
95 fans. Follow Connor Davidson on twitter!
Great article. Well done.
 
I have one idea for how the article could have a wider appeal. If you explain what MRP and BOM stand for it would appeal to more people. What you have is good though.
 
Anyway, welcome to SearchWarp.
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