"A TIME PHASED PRIORITY PLANNING TECHNIQUE THAT CALCULATES MATERIAL REQUIREMENTS AND SCHEDULES SUPPLY TO MEET CHANGING DEMAND ACROSS ALL PRODUCTS AND PARTS IN ONE OR MORE PLANTS"

Netmation has consultants available with significant experience with installing and customizing MRP software. What follows is an overview of the type of results you should be getting from your MRP system. Many manufactures have found valuable input by having an un-biased consultant review there existing operations and make suggestions as to how they can better achieve the Productivity Improvements MRP can deliver.

Industry has classified the following levels:

CLASS A

• Operate in a closed loop mode
• Management uses system to run business
• MRP provides game plan for sales, finance, manufacturing purchasing, and engineering
• No shortage list

CLASS B

• Successfully use system for production and inventory control, not closed loop
• Rely to much on shortage list, still expediting
• Receiving some benefits from scheduling

CLASS C

• Use MRP only for inventory, no scheduling
• Master schedule overstated
• Shortage list is driving force

CLASS D

• MRP only working in the data processing department

Productivity Improvements
As a manufacturing becomes more and more efficient in their MRP implementation the following benefits will continuously improve.

• Reduced Inventory with fewer (none) shortages
• Improved Customer Service
• Improved Direct Labor Productivity
• Reduced Purchasing Cost
• Reduced Traffic Cost
• Reduced Obsolescence
• Reduced Overtime
• Having the numbers to run the business
• Having accountability throughout the organization
• Improved Quality of Life

When measuring results it will depend on how good a job of implementation you did. Non of this happens naturally, MRP is the tool. Why should executives care ? MRP Gives Executives "CONTROL". The ability to control a dynamic growing business.