Manufacturers across the globe want to improve productivity and customer satisfaction whilst reducing costs. It can be argued that all businesses want to manage their processes perfectly. It’s no doubt that with Industry 4.0 on the horizon, you’re searching for tools that will help you to thrive. In its simplest form, productivity can be measured as Output per Person. To do this, you need to make sure you have the right resources to complete jobs efficiently, without increasing your cost base. But in manufacturing, this can be a complex task. However, a Manufacturing Resource Planning (MRP) system will help you to streamline these processes. This is a great step forward if you don’t have a system already. In this article, we’ll provide you with information on what MRP systems are, and how they can help your business.
What is an MRP system?
Manufacturing Resource Planning (MRP) is a software solution that helps you to manage the production and delivery of goods and services for your customers. The system acts as a single source of truth for any given production order, helping to prevent errors and allowing you to see when your product will be shipped. An MRP system is ‘top-down’ in its approach, meaning when you create a production order from the top level, it cascades down into subsequent operations. This has the effect of reducing blank orders in manufacturing operations that require further information from downstream departments before they can be confirmed.
Why choose an MRP system?
This is a great way to increase efficiency and costs
MRP systems help to create efficiency and accuracy across your business. The idea is that by using a single source of data, you’ll be able to fully utilize all of your resources. This means that by limiting the amount of redundancy in your process, you can increase the quality and quality of your end products. You’ll be able to identify which items are taking longer to produce, meaning that they won’t be churning out faulty goods; these will eventually fall off the production schedule altogether. This will help to eliminate human error and cut down on potential delays.
Reducing your lead times will help you to increase your revenue and profits
Manufacturing Resource Planning (MRP) systems provide your business with the information it needs throughout the business process – from initial planning, through to production and delivery – which results in reducing lead times. By releasing this information as soon as possible, you can deliver quality products earlier than ever before. This allows you to increase their value by leveraging the time that is already spent on them, as well as establish a better relationship with your customers. If they’re happy, they’ll continue to do business with you and supply you with more orders. You’ll also see that there are fewer overages and delays as you continue to use the same resources as you always have, as opposed to reallocating resources because you now know your costs better.
Your customers will be happy and so will everyone else working for you
You’ve probably heard the old adage: “Good things come to those who wait”. Well, this is certainly true in manufacturing. If your customers don’t receive their goods on time, they’ll be unhappy. This means they may decide to use other suppliers, sometimes at the expense of your own brand. It also doesn’t help if the goods are faulty. If you have a great reputation in your industry, it can be difficult for a customer to complain about their service once they’ve received a damaged or faulty product. However, with a manufacturing resource planning system, you can identify problems in the early stages and resolve them before they escalate. This will not only boost your brand but also keep your customers happy and return to do business with you again.
Your business is less likely to suffer from iffy computer systems or software crashes
We all know that when things go wrong with computers and their programs, it can be difficult to recover from this mistake quickly and efficiently. If you’re reliant on computer systems to run your business, it can be incredibly difficult to ensure these are running smoothly on a daily basis. However, an MRP system is top-down in its approach, meaning that each department is responsible for inputting data into the system on a timely basis. If you have multiple departments all inputting data at different times, this can cause problems. With a manufacturing resource planning software solution, there is only one department responsible for inputting the information – the production team – which features fewer moving parts and so less chance of error happening.
Choosing an MRP system is a great way for you to increase the efficiency of your business. By cutting down on delays, you’ll be able to make decisions faster, improve relationships with your customers and reduce costs.
Interested in reading more about MRP systems? MRP vs ERP – Key Differences and Features discusses the difference between MRP and ERP and the use for both in businesses.
If you would like TSVMap™ to assist your business with assessing your essential systems and applying the TSVMap methodology to ERP Systems, MRP Systems, Cyber Security, IT Structure, Web Applications, Business Operations, and Automation, please contact us at 864-991-5656 or email@example.com.