MRP Changes Affecting the Manufacturing Industry

MRP Changes Affecting the Manufacturing industry

Your global supply chain is a spiderweb of suppliers and customers. Your trustworthy MRP system is no longer keeping up. Its designed for product push based on historical data to predict future production requirements. The customer at the end of your supply chain is demanding now, and no longer wants product pushed at them.

Advocates of lean manufacturing in your company want to dump the MRP as it is old and irrelevant, according to this article from TechTarget. These advocates cannot present an adequate substitute for MRP, which automatically calculates production needs. Kan-ban is not a good fit for your complex products. Your company is losing market share due to a backlog of orders which cannot be filled any time soon.

There is a new software available to replace your tired MRP system which recognizes the demands of your customers. DDMRP or Demand Driven MRP is available from several companies including ERP companies, according to the Demand Driven Institute. DDMRP brings traditional MRP into the 21st century where a volatile manufacturing environment is the norm.

Traditional MRP in this volatile environment leads to excess inventory, or not enough inventory. It calculates part quantities needed and timing requirements without factoring in any variability.

DDMRP overcomes this by first calculating where part needs are, taking into account such factors as supply and demand variability and critical resource considerations. From this buffer profiles for each part are built, then adjustments contrived for seasonality or ramping up or down.

This results in demand driven planning more attuned to the volatile bumps in the modern manufacturing environment. The overall result is less waste, and quicker product to market