Why doesn’t my MRP work ?

It’s easy to justify, after all, your product is unique, too complicated for Material Requirements Planning, right? The variables are too many for MRP, uncertain yield, variable unit of measure dependent on the product lot, evaporation, hazardous materials that cannot be touched, partial barrels of raw material . . . the list goes on and on. And for whatever reason you have certain items that never seem to have demand, and suddenly you run out.

Understanding an MRP planning grid doesn’t mean you are getting all you can from your ERP/MRP system, to allow you to plan materials well.

ERP Planning Tools:

· Longest Lead Time: Don’t plan that your supplier will always have something stocked on the shelf, allow for the average longer lead time and review safety stocks to make sure they will cover variations in lead times

· Planning Fence: Frozen time fence should be set to only to eliminate MRP nervousness in the very near future

· Shrink factors can be used for both formula yield, as well as on individual parts within the formula

· Serialized and lot managed materials can have unique Unit of Measure, useful for potency or concentration

· Partial lots can be managed as a split lot and unique lot code, allowing Planners visibility to uncertain quantities of items that can no longer be measured once the holding container has been opened

· Unique characteristics can be applied to an item/lot, to store information relative to variable chemistry

· Review of material use variances reported on jobs allows a good “sniff” test for BOM accuracy

· Converted units of measure for proper calculations (for example the purchase UOM converting properly to the received UOM)

· Plan for production down time based on machine use as part of a BOM

To date, I have not found a problem that cannot be solved within a typical ERP system.

Contact me direct to find more about how to solve MRP problems do you have?

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