MRP optimization, came about because of the realization that there was a significant need for MRP expertise in the manufacturing companies that I had worked at, consulted at, or instructed at in the LA area.
While most people in manufacturing understand the basic philosophy of MRP in that it breaks down Sales and/or Forecasts into the component parts and plans accordingly, few people fully understand the “black box” of the logic that MRP employs and more importantly, the data that it requires to produce the optimization of a manufacturing planning system. As a result the discipline is lacking and the company end up by using more manual resources and producing plans on spreadsheets, thus severely limiting visibility, accurate communication, and efficiency.
This understanding of how sales consume forecasts, how the planning data, such as lead times, safety stock and order policy affect outcomes, as well as inventory issues such as status and units of measure, is where MRP optimization lies. This along with a complete understanding of the internal mechanics leads to significant cost savings and a much-improved planning system that all can see and understand. To have companies better understand the mechanics of MRP and thus be able to save time and resources in their manufacturing planning functions is why MRP optimization exists.
To discuss an approach to improving the inputs to MRP so that the system does the work rather than manual effort and resources, call 818-383-1221 or email rgratcliffe@earthlink.net
