Is your MRP system configured correctly?

MRP systems are an integral part of many manufacturing businesses. Whether you are running MRP, MRP II or ERP there are some common issues that I see on a regular basis.

I see three main points when it comes to using MRP systems:

1. Decide how you want to use your MRP system.

2. Configure the various modules correctly.

3. Manage the MRP process as you would with other processes.

For point 1, is your business a ‘Make to Stock’, ‘Make to Order’ or an ‘Engineer to Order’ type of business. Being clear about this can make configuring your system more straightforward.

Configuring the modules, point 2 above, means inputting your rules of working into the system. Many businesses either lack the knowledge of how to configure the system or they fail to complete the task. Either way they end up fighting the system’s suggestions every day, often creating workarounds and poor working habits.

Finally, there are routines associated with MRP systems. Identify them and build them into your sunrise meeting and routines, if they aren’t already. Appropriate KPIs are also useful to incorporate. An additional routine worth considering is housekeeping. Maintaining the data in the system is essential. Creating ways to pull out the data from the system, cleansing it where required (plus educating the culprits) and improving it are invaluable longer term.

Recommended Actions

Confirm that your system is configured to be the right approach for how you handle your orders.
Complete, or correct, the information in the various modules (including; Bill of Materials, Inventory, Routines, Work centres / Capacity and Stocking Policies) so that the system generates the right instructions for your team.
Develop housekeeping routines that complement the running of an effective MRP system and build them into your existing routines.

Giles Johnston
Author of 'Business Process Re-Engineering', a practical plan to improve business performance.

The Kaizen Checklist is here!

Do you want to get better results from your Kaizen programme? Improve your business results quickly with my downloadable kit (including guidebook, workbook and templates) for only $39. Are you looking for a sustainable way to identify and implement improvements across your business? Practical improvement strategies The Kaizen Checklist is a downloadable kit that you can use with your management team to develop a system that suits your business and allow you to quickly implement Kaizen effectively at your place of work. This works great if you use it as the centre piece of your own internal workshop. The kit includes a 40 page guidebook, a workbook, four appendices and three templates. All parts of this kit are designed to get you up and running as fast as possible. If you are unfamiliar with Kaizen, let me stress that this is a simple improvement philosophy that is so much more than just ‘a Japanese word for continuous improvement’. I’ll cover what it rea

Take the pressure off! Using the Y-curve with your Kaizen improvements

Do you feel under pressure when you have to make changes happen in your business? It can be scary when we try something that we have never done before. I remember thinking to myself 'how on Earth am I going to figure this out?' on many occasions. I think the last time was a few weeks ago! Years on from becoming reasonable at the art of change I am still faced with the same dilemma. It is scary and it is clear to me why so many people shy away from making change happen. It is natural to get stuck in this oscillation. On one hand you need to make change happen; the business needs the improvement benefits. On the other hand you don't want to screw up... Last week I was talking to a young engineer that I am mentoring. He was paralysed. Changes were not happening at all. There was always some early promise with his projects and then, as completion (and judgement day) loomed, progress would evaporate. The engineer asked me for my views on this during a recent conversati

Do you need a burst of improvement ideas for your business?

If you haven’t created your improvement action plan for 2020 yet then I have something for you. I have just completed my latest project – The CI Focus Tool . This Android App is now available on Google Play and provides a simple method for generating as many effective improvement ideas as you need. This is the same basic method that I describe in my book Effective Continuous Improvement and is now available as a simple to use app. In essence it is a brainstorming focus tool. Press the focus button and you will be presented with a random continuous improvement focus. Brainstorm ideas around this focus with your team (whilst the timer is running) and there you go – a number of great ideas for you to prioritise and implement. The reason that this works so well is because of the focus. When your business runs out of its immediate problems to fix you need a different strategy. Very focused brainstorming helps you break past this problem and configuring the app to meet t

Search This Blog