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Material Requirements Planning - Optimize Your Material Management

aterial requirements planning (MRP) is a sales forecast-based system for use in manufacturing. It gives floor managers and planners the ability to make informed purchasing decisions, schedule raw material deliveries, determine how much material is necessary to meet production, and create a labor schedule. Unfortunately, antiquated ERP design and use may create problems in production as well, not to mention leave your supply chain vulnerable during times of disruption.

The most prominent disruption today remains the novel coronavirus, officially known as COVID-19, and how it’s changed the fundamentals of business management. In manufacturing, the COVID-19 crisis brings an unprecendented disruption to all supply chains. Companies were forced to source products and raw materials from others. Quarantine measures in Wuhan brought the infusion of imported raw materials and components to a halt. Now, the situation is improving, and company leaders are working to figure out the path forward to ensure employee safety, prevent a resurgence of the disease, keep production moving, and lower overhead.

How Does abas MRP Benefit Your Business?

Modern material requirements planning relies on data quality and continuous use to proactively manage material planning. The characteristics of a modern system leverage production planning data to create a master schedule, notes Scott Jessup via Metal Forming Magazine. The schedule drives the material plan, and upon completion of the project, feedback to the system allows for the continuous optimization of the manufacturing operation. The effect is two-fold, faster project completion and less waste.

Those impacts are the differentiators in responding to a pandemic. They transcend all risks and enable business continuity.

For example, abas MRP System manages all resources and requirements necessary to meet your manufacturing demand, while allowing you to maintain lean inventory levels. Not only does abas manage requirements for manufactured items and sub-assembly processes internally, it also manages requirements planning for production at alternate locations and through third-party vendors as well. The system looks at material demand, labor capacity, department and work center capacity, and provides rough cut capacity planning.

Your team gets the information they need to coordinate material flows and accelerate inventory turnover while ensuring the availability of required goods. The process continues throughout all activities, reflecting the most accurate and insightful data. Period.

Further reading

Exhibitor: abas ERP

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