Why ignoring MRP is stopping you delivering excellence.

Updated: Oct 26, 2020

MRP (Material Requirements Planning) and MRP 2 (Manufacturing Resource Planning) are more than just software systems installed for production control and inventory management, companies who purchase these type of systems without a cultural awareness and understanding of its process will only get frustrated by its seemingly painful integration.

I don't want to get in to different types of software or whats best or worst in my experience in this post. I do want to highlight that when done properly and understood as a process for measure and improvement, MRP is a powerful tool that can be the nervous system of your business.

Whether you are a single person business or large multi national corporation with dedicated production planners/ schedulers/ supply chain coordinators, the method is the same and must remain simple or the true benefit is lost. Always remember any process is input- activity/process-output, too often i see businesses over complicate what they do with over engineering, multiple reporting streams and disconnected vision causing a missed achievement and a lack of ability to adapt to change.

So whats the point and how does this give any benefit? The process itself takes the demand or requirement, understands and breaks down all its components, flows that out to your supply chain, pulls back in your constraining factors such as material delivery, resource limits and machine cycle times then produces a commitment. Any good planner will do this and find the most efficient means for achievement within a few hours and any good business would provide them all the details to do it quicker.

key in a hand
The key

The key to all this is: optimum communication, integration of teams to achieve the goal and honour their part on time and efficiently enough to meet commitments consistently. Around the MRP and planning function is driven your KPI's, engineering , production, maintenance, procurement and customer satisfaction all to create OTD (on time delivery).

If you have struggles around delivery and client engagement causing internal and external dissatisfaction then QPA can help. Weather it is mentoring individuals, teams or developing a process and tools contact us to discuss your requirements and how we can help.

#Projectmanagement #Lean #continuousimprovement #processimprovement #sixsigma #brainstorming #consulting #management #teamwork #prioritising #DMAIC #changemanagement #Diversity #MRP #MRP2 #supplychain #QPA

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