To leverage manufacturing productivity with MRP one needs to understand where MRP comes from and what exactly it means. Material Requirements Planning (MRP) began out of necessity in the 1970s. Many material requirements planning systems are software based, so having some computer skills would be advisable. What exactly does it mean to leverage manufacturing productivity with MRP? Three goals are in mind right from the beginning:

•    Limit your on site inventory, thus optimizing the space you have available.
•    Planned manufacturing allowing for the manufacturing of goods in a more orderly and timely manner.
•    Materials and products are readily available for use and delivery to customers.

Storing only a small amount of inventory is important to most manufacturers. However this is a thin line to walk. Running out of materials will result in downtime and can cause issues like lost pay or non-productive time which can increase the manufacturer’s labor costs. By keeping to a rigorously maintained production schedule, the necessary materials can be made available much more quickly than with stockpiling. An additional advantage to this is space; more floor space can be used for production and less for storage equating to increased income per square meter.

Being able to plan production in advance might be problematic and, if based on previous output levels, often inaccurate. The ability to plan a precise production agenda and a materials list and estimated labor costs is now a necessity for most manufacturers.

Again, having the materials needed on hand when they are required is important if you want to leverage manufacturing productivity with MRP. If you purchase materials based on accurate production schedules, this will increase your profits, decrease waste, open up floor space and optimize labor.

If you begin to leverage manufacturing productivity with MRP you will typically have 2 outputs from 99% of the material requirements planning programs available; schedule and ordering.

Scheduling is based upon various key factors, all of which must be entered into the program, such as time spent on the different processes involved in production, material handling needs etc. When this is done the computer program will come up with a production schedule for you This will only be a recommendation however and you may be able to improve upon it. This gives you at least an idea of how your finished schedule will look.

Ordering is the other recommendation that all good MRP systems will present. This can also be easily refined some by personal knowledge. The important thing is that there is less chance of error when an ordering schedule is determined. Also when there are many parts and materials coming in from the suppliers, an ordering schedule can help simplify the process.

Leveraging manufacturing productivity with MRP is simple and effective, and is now becoming an important part of manufacturing practice. Knowing this and understanding how material requirements planning works will help manufacturers to leverage their time and that of their employees more effectively and bump up profit margins. In this way everyone is a winner.

Marc Anderes is the Vice President of Operations of Maloya Laser that is dedicated to <A href=”http://www.MaloyaLaser.com”>Laser Cutting</a> and Metal Manufacturing with advanced <A href=”http://www.maloyalaser.com/capabilities_equipment.php”>laser technologies</a>, for aerospace, medical, machinery, scientific and transportation requirements.