| 1. ManEx Minute - 10 - MRP Filtering |
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October 15, 2008
Issue 10
Greetings,
We have read your responses from the survey two weeks ago and are beginning to implement suggestions.
Don't forget to checkout the redesigned " Make YOUR Mark" section. Each issue will contain a topic with open ended questions related to future business case topics. Please take a moment to review the topic and provide your insights. This way the case solutions will have even more value and application to your business.
Additionally, we are switching to a biweekly delivery schedule to allow for more reader participation.
For this issue, we address how to filter MRP results to ensure you complete critical purchases for a job.
As always, we look forward to your participation and feedback as you gain new insights and become a more effective provider of Electronic Manufacturing Services.
Sincerely,
David Sharp
ManEx, Inc.
Business Case - Material Requirements Planning
North Eastern Company* (N.E. Company) continuously strives to provide quality on-time products and services. Their efforts are paying off with an increase in orders despite the current economic conditions.
One of the recent orders is from a long-standing customer for which they have had issues with late and hard to find components, but they have delivered as promised for several months now and the customer's confidence is increasing.
Although they delivered the last few orders on-time, purchasing had to expedite several parts missed in the ordering process, which significantly reduced profitability for those jobs. Margins are already tight so the buyers need to be sure all parts are ordered on-time.
What tools are available for N.E. Company to ensure all parts are ordered as needed? Is there a way for buyers to verify all components for an assembly are on order without going through the BoM item by item? How can the buyers increase their overall purchasing efficiency while monitoring individual projects?
* Company name has been changed.
Business Case Solutions
- Run MRP by Assembly - Many systems will allow users to run MRP at the specific assembly level...
Read the full Business Case Solution
ManEx Case Solution
Within ManEx, users are able to filter MRP demands by assembly. When the system or user refreshes MRP, it refreshes information for all demands and orders...
Read the full ManEx Case Solution
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| Please share your ideas and insights on a topic below. Use the questions to direct your response. You can submit your thoughts to mym@manex.com by clicking the topic title. Where appropriate and space permitting, we will post responses in a future newsletter so all may benefit.
How do you currently handle excess inventory?
What issues have you had with your current method?
What other methods have you tried?
What is the value of excess inventory currently on your books?
What is required to check the status of an order?
What tools are available to quickly gather this information?
How accurate and current is the information?
What are you doing to increase efficiency in this area?
To suggest a new topic please send an email to mym@manex.com.
To see additional topics, please click here.
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ManEx Minute is a weekly email distributed by ManEx, Inc.
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Developing with YOU in mind! |
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| 1.1. Business Case Solutions - 10 - MRP Filtering |
Business Case Solutions
- Run MRP by Assembly - Many systems will allow users to run MRP at the specific assembly level. This allows buyers to refresh MRP after the order is entered into the system and again periodically throughout the purchasing process. Refreshing MRP at the assembly level will allow buyers to monitor the status of each part and ensure that parts are ordered and scheduled as needed. However, if MRP is refreshed for only the assembly, then they buyer may not know of other demand for the same parts and would therefore need to place an additional order for the same part once they begin work on that project.
- Excel File - Using a separate excel spreadsheet to track the parts is a common method for micro-managing the process for each assembly. This gives buyers visibility of each part and allows them to respond more proactively to changes or issues. However, this system will work only if the buyer keeps the spreadsheet up to date. This means double data-entry and increases the likelihood of human error. Additionally, if the buyer has too many parts to order and not enough time, they are likely to postpone updating the separate spreadsheet, which completely eliminates the benefit and effectiveness of this option.
- Custom and Standard Reports - Depending on system capabilities and specific needs, standard and custom reports may give buyers the information they need to ensure all parts are ordered on-time and according to quoted pricing. If a project warrants extra monitoring, this can be an excellent method for control inventory flow.
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| 1.2. ManEx Solution - 10 - MRP Filtering |
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ManEx Case Solution
Within ManEx, users are able to filter MRP demands by assembly. When the system or user refreshes MRP, it refreshes information for all demands and orders. This increases buyer efficiency by allowing him to purchase for all demands for a given component in a single purchase order. This also increases buying power by increasing the purchase quantity, and minimizes inventory by consolidating demand as much as possible.
Once all purchase orders are placed, buyers can monitor the status of the component orders in the Open PO Status screen. This allows buyers to filter the open orders by buyer, late parts, parts requiring expediting, and by WO* or Project**.
Used in combination with the other materials management tools, these tools make it possible for buyers to order all parts in a timely manner and reduce the need for expediting components.
NE Company is using the MRP to reduce time spent placing orders and has created custom reports to facilitate monitoring individual assemblies. With the addition of filtering MRP by assembly, NE company has been able to effectively monitor each assembly and ensure the purchasing process does not increase the cost of fulfilling the orders.
*Parts must be allocated to the WO
**Parts must be allocated to the Project
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