Are You Monitoring Your Company's MRP Performance Inside the Arena?
In baseball, there are an array of outcomes which are usually at the forefront of fans' minds, such as wins, losses, batting averages, and pitcher's ERA. However, there is an often overlooked part of the game, "the game within the game". This includes the looks, movements, and activities that take place prior to the pitch being thrown, which can all have an effect on the game, despite not being related to the delivery of the ball. Taking notice of this aspect of the game is what separates good players from the great ones. The same concept applies to Material Requirements Planning (MRP) runs, where supply chain professionals often focus solely on the results.
- Will the necessary resources arrive before the deadline?
- How did the requested order decrease?
- What is the reason for the suggested date?
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For those in supply chain, there is an internal "game" to MRP runs. To improve in this area, one should be aware of the components. Before starting an MRP run, there are some questions that should be considered - the answers to which will determine the success of the MRP run.
- Is the anticipated delivery time in the material master accurate?
- Is production reporting done in a prompt manner?
- Do the requirement dates make sense?
- Does the routing reflect the real situation, as well as the work center capacity information?
- Are there any overdue production or purchase orders?
- Is scheduling in the past feasible?
In order to succeed in achieving balance in the supply chain with MRP, the response to the inquiries posed above ought to be affirmative. Additionally, exceptions must be kept limited, and dates must accurately represent supply chain potential.
Here is some advise
- Gauge the actual delivery times of suppliers and adjust the lead times accordingly.
- Make sure that the routings reflect the true capabilities, including the time it takes to move and wait in queues.
- Aim for real-time reporting of transactions in production and good receipts from suppliers.
- Keep the dates on supply elements current and accurate.
- Set the MRP types and Lot sizes for desired outcomes.
A thorough comprehension of the concepts behind Material Requirements Planning can help take supply chain managers from good to great.