What are the crucial inputs for material requirements planni

What are the crucial inputs for material requirements planning?

Solution

Material Requirements Planning (MRP) is an important tools and techniques employed by the manufacturing company in computerized environment.

The ostensible benefits of this technique.

1. Uninterrupted Production of products.

2. Minimization of Obsolescence,

3. minimization of pilferage

4. Minimization of Carrying cost of inventory like interest , insurance and and loss in case of fire, Flood and earthquake and hurricane / Tempest etc.

besides this it addresses the unique issues like availing the wholesale discount, bulk discount offered by the vendors in case of bulk purchase made at a time.

Off late , the new concepts are introduced in production terminology like Kiezen and lean manufacturing which was effectively implemented by Toyota corporation of Japan. the strict regime of push type of production increase the importance of Material Requirement Planning enormously.

The most crucial point for MRP is successful implementation of MRP in an manufacturing organization , it encountered with resistance , low trained employees in the computerized environment. So this is most crucial fro implementation of successful implementation and deriving the full benefits of MRP.

1. Acceptability of by Top Management about its advantages and benefits in comparison to traditional material planning and ordering system.

2. Proper training and participation of all workers and personnel.

3. Precision and accuracy of input data for accurate and reliable results to run the production process without any interruption for want of materials and avoidance of RUSH PURCHASE at exorbitant price and administrative cost and logistic cost.

The objectives of MRP are :

1. The primary objective of MRP to ensure that material and components are available for production and final products are ready for dispatch.

2. It is not only for maintain minimum inventory but also ensure right quantity of material is available at the right time to produce right quantity of final products.

3. To ensure planning of all manufacturing processes , this scheduling of different job works as to minimize or remove any kind of idle time for machine and workers.

So the crucial inputs are :

1. Exact feedback date to be entered for regular production as per budgeted plan the requirement of material for any special order and proper schedule for requirement in advance so the purchase plan can be prepared and implemented with help of MRP software.

2. Proper deployment of Computer hardware

3. Requisite MRP software suitable for that Industry. It varies from industry to industry and type of production set up like Jobbing industry, process industry like Cement, Caustic soda and Oil refineries etc and assembly industry like motor car , Electric pump etc.

4. Logistic support - a good logistic support to the factory by rail, road or waterway connection is immensely helpful for proper MRP.

5. Vendor development and its data base of better service, delivery and default in delivery etc. Unless a proper development of good vendors database all will be defeated even the good planning and computer infrastructure with talented employees to operate it.

These are the crucial inputs for a good Material requirement planning .