MRP or manufacturing resource planning takes ownership of the data from the quotation stage, through the sale, the raising of the works order, through all stages of production including the warehouse (goods in/out) and subcontracting, through to shipping and invoicing. By holding a single source of data all departments should have visibility of relevant information.
As sales orders are loaded on the system, purchasing can immediately see future requirements plus view an item’s order history in order to make informed purchasing decisions. Additional information, such as alternative suppliers and quantity break price information, also can help to bring further purchasing efficiencies.
With purchasing correctly loading orders onto MRP, your warehouse will have visibility of what is arriving and when. Implementing barcode scanners can speed up goods in/out, assist with providing batch traceability and reduce booking errors across all departments on the shop floor. This will filter down to a reduction of inventory inaccuracies, which in turn will require less frequent inventory checks—saving further time and resources.
As an order works its way through each stage of the production process, each update to the system is immediately accessible across the company. Office staff can report more accurate delivery times to customers, and many companies see a significant reduction on product leadtimes post-MRP implementation as stock shortages are reduced/eliminated and all order-related processes can be enacted quicker.
Once orders have been dispatched and invoiced the MRP system’s job is done and it can pass over data to the accounting system for debt collection/processing.
The Key Benefits of Manufacturing Resource Planning
MRP provides rich, detailed information that can be utilized by the company in core functions such as planning, management decision-making, and production.
Reduce overall workload and maximum efficiency if the MRP system is managed correctly at all times.
Data from MRP enables the management to plan ahead and forecast how such planning can affect the overall profitability of the business.
Planning with the help of MRP makes a company more efficient, thus avoiding unnecessary expenditures while maximizing profits altogether.
MRP is an innovative and highly competitive tool that undeniably beats the traditional system of stock control and management.
A fully-automated MRP software system easily and efficient formulates a production schedule which saves the company a large sum of money, time, and labor.
Good manufacturing resource management requires a comprehensive understanding of your company objectives and capabilities. The monitoring and utilisation of resources can maximise efficiency and help improve overall business processes.
Resource management is about the maximisation of efficiency through the process of planning, scheduling and allocating resources accordingly. A resource is anything that you need to execute a task or process, including employees with certain skills or the adoption of new software/hardware.
Here are six key reasons why good resource management is essential for manufacturers: –
Avoid unforeseen problems
When you have business systems that enable a thorough understanding of your resources from the outset, you can formulate a comprehensive plan on where to allocate them and avoid bottlenecks. It enables you to identify any potential gaps and problems before they happen and create contingency plans for how to manage the unforeseen circumstances.
Provide a safety net
Sometimes projects or production can fall apart due to a lack of the required resources. With a solid, demonstrable process of resource planning and management in place, you can show that you made the maximum use of what was at your disposal, helping to protect against repercussions and help continuously improve your resource planning.
Effective resource management, you can protect against over-allocation or over-dependency of both tangible and human resources. By gaining insight into the operational processes of every single human and material resource, you can ensure you are getting the most out of your employees without pushing them so hard that it becomes counter-productive. It can also highlight under-utilisation as well.
With a thorough understanding of what is needed to successfully execute certain processes and projects, more effective plans and metrics can be created for the measurement of ROI. Good resource management can provide better measurability and is key to optimising processes and increasing efficiency.
It provides greater transparency between different teams and departments within your workforce. When one team’s resources are being pushed to maximum capacity, managers can assess all the resources available and plan accordingly to improve the balance of tasks allocation and find more efficient solutions.
The relationship between workers and management can become strained if there is a lack of trust. Both sides will accuse the other of exploitation, and without cohesion in an organisation, there will always be an adverse effect on productivity. With good human resource management, there can be a proper understanding between workers and managers to ensure everyone works together successfully for the good of everyone.