Repairing Your MRP System

Screenshots and examples from SAP 

What The Book Covers

What percentage of companies are getting what they could from MRP? There is no perfect answer to this question, but experience indicates that most companies could very seriously improve their use, and the value they receive from MRP.

This book explains how to get much more out of your MRP system.

By reading this book, you will:

  • Learn the different uses of MRP within a company.
  • What is MRP versus MRP II?
  • When is MRP applicable?
  • What are all the things that MRP does?
  • Alternative designs for running MRP, such as for outsourced manufacturing.
  • MRP and the concept of forecast-ability.
  • What is the “frozen period?”
  • What is the connection between MRP and lead time accuracy?
  • The relationship between MRP and the BOM or the recipe.
  • Specific ways to improve MRP systems.

Drawing upon his own vast experience as an implementation consultant, and through extensive use of graphics and screen images from MRP applications, Shaun Snapp empowers you to both understand and improve MRP systems with confidence.

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A Book Based in Reality

The book provides many examples from real-life project experiences, the emphasis being on the reality of MRP projects.

Interconnected to Web Information

In order the keep the book at a manageable and easily readable length, the book also provides numerous links out to the SCM Focus site, where supporting articles allow readers to get into more detail on topics that interest them.

The Uses of MRP

MRP is frequently used for the following purposes.

  1. S&OP & Rough Cut Capacity Plan: These long-range planning threads and are generally not part of the live environment. They are used for analytical purposes rather than to drive recommendations to the ERP system.
  2. The Initial Supply Plan (performed by MRP in ERP systems) Produces initial production and procurement plan. Is focused on bringing stock into the supply network and in creating stock with planned production orders. It can also be called the master production schedule (MPS) if the initial supply plan is run under specific criteria.
  3. The Deployment Plan (performed by DRP in ERP systems). Focused on pushing stock from locations at the beginning of the supply network to the end of the supply network.

Chapters

  • Chapter 1: Introduction
  • Chapter 2: The Opportunities to Improve MRP
  • Chapter 3: Where Supply Planning Fits Within the Supply Chain
  • Chapter 4: MRP Versus MRP II
  • Chapter 5: MRP Explained
  • Chapter 6: Net Requirements and Pegging in MRP
  • Chapter 7: Where MRP is Applicable
  • Chapter 8: Specific Steps for Improving MRP
  • Chapter 9: Conclusion
  • Appendix A: Calculating MRP
  • Appendix B: Inventory Parameter Calculation with 3S

Table of Contents

Chapter 1: Introduction

  • What is MRP Categorized As within Planning?
  • The Methods Available for Supply Planning
  • The Complexity of Method Combination
  • What About the Initial Production Plan?
  • How the Term MRP is Often Overused and Misused
  • Books and Other Publications on MRP
  • The Use of ScreenShots in the Book
  • Timing Field Definitions Identification
  • How Writing Bias Is Controlled at Brightwork Research & Analysis and Brightwork Research & Analysis Press
  • The Approach to the Book
  • The Brightwork Research & Analysis Site
  • Intended Audience
  • Abbreviations
  • Corrections
  • Conclusion

Chapter 2: The Opportunity to Improve MRP

  • The General Knowledge Level of MRP
  • Who Manages the Policies of the Supply Chain Systems?
  • Background on the Financial Returns of MRP Systems
  • The Believability of the Results
  • Conclusion

Chapter 3: Where Supply Planning Fits Within Supply Chain Planning

Chapter 4: What is MRP II

  • What is MRP II?
  • The Focus of MRP II
  • Conclusion

Chapter 5: MRP  Explained

Chapter 6: Net Requirements and Pegging in MRP

  • Spreadsheet Steps to Creating the Product-Location Spreadsheet/Database
  • Visibility in Supply Planning Systems
  • Conclusion

Chapter 7: When MRP is Applicable

  • An Approach That Becomes Dominant
  • Do Companies that Outsource Need to Have a Manufacturing BOM in Their Supply Planning System?
  • The Alternative Design 1: MRP at Finished Good Level at OEM
  • The Benefits of the Alternative Design
  • MRP and Forecastability
  • Trends in Lumpiness Case Study 1: Trader Joe’s Versus Normal Supermarkets
  • Examples of Unforecastable Demand
  • Managing Products with No Forecast with Supply Planning
  • Conclusion

Chapter 8: Specific Steps for Improving MRP

  • MRP System Comparison
  • Set and Respect the MRP Frozen Period
  • Lead Time Accuracy
  • BOM or Recipe Accuracy
  • Capacity Information Accuracy
  • Assignment to Forecast Based or Consumption Based Planning
  • Inventory Parameters
  • Giving the Business the Parameter Support it Requires to Plan Properly
  • Calculating the Values
  • An Inventory Parameter Calculation Project
  • Determining the State of an MRP Implementation
  • Company XYZ Case Study
  • Conclusion

Chapter 9: Conclusion

Appendix A: Calculating MRP

Appendix B: Inventory Parameter Calculation with 3S

  • The Conceptual Underpinnings of 3S
  • The Process
  • How S3 Output Is Updated
  • Net Change Parameter Updating

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Questions about the Book?

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