While manual tracking efforts were sufficient in the beginning, your growing staff, resources, machinery and sales are quickly making you realize that it may be time for an update. MRP is a computer-based inventory management system designed to improve productivity for businesses, yet many companies worry whether or not they are in a position to implement one.
This is why our MCDA CCG team of business advisors have put together this guide explaining MRP, signs that it’s time to implement one, and how it can help your business.
What Is MRP?
MRP (Material Requirements Planning) systems are tools for calculating the raw materials, sub-assemblies, and components a manufacturer needs to create a product.
MRP systems perform this task by observing current levels of raw materials and components, identifying which inventory is low and needs to be reordered, and scheduling the purchasing of these materials.
Wide technological advancements of MRP systems have developed the software to be able to support all kinds of manufacturing workflows, providing ample flexibility for organizations.
Continue reading for signs that tell it may be time to implement MRP in your organization.
#1. You Are Exhausting Your Spreadsheets
While the spreadsheet is a powerful and effective tool, your dependence on this manual system is putting you at a clear disadvantage with its accessibility issues. To avoid losing information, you must ensure that changes are regularly being saved and back-ups are being performed. We have seen many instances where information is lost when files are overlapped -burying or losing the previous ones. This implies not only uneasiness to the user, but also a problem to the entire organization using that information.
#2. Communication Surplus
When information has been set in the previous period -month, quarter, year, etc.-. the person in charge of the area may have not had time to upload it into the new system-thus finding themselves in a nightmare situation.
To modify the changes, the staff has to start making an excessive amount of phone calls, get the last status report, hold additional meetings to ensure information is updated.
With an integrated system like MRP, the updated information would be the same across the board, saving your staff the time they would have to spend on excess communication.
Sign #3: Different Department Data
Each department within your organization has its own statistics and objectives, and if there is no integrated platform to share the figures, you have to confirm them in excess meeting hours. With the introduction of a MRP system, you could save this excess time and use it to add value to the company.
It also compiles reports to understand the current situation, the statistics, and the evolution over the last periods. It reports the budget, the inventory levels, the production volumes, the product turnover, the sales volumes and more.
#4. Administrative Inefficiency
When changing parameters and lack of required materials continue to delay operations because of disparate systems, you will immediately see the effects within your establishment. Effects such as downtime, idle machinery, lost production, last minute rescheduling, all equate to lost sales and unsatisfied customers.
MRP systems increase the administrative efficiency in planning, doing, checking and monitoring stages.
#5. Simultaneous Malfunction
Sometimes, several users will need to use the current software at the same time, and if you don’t have an integrated system built for this, the excess usage can quickly damage your operations. These effects can be loss of real time information, loss of labor hours, and significant errors due to outdated information.
MRP user-friendly systems can solve this problem by allowing everyone to simultaneously report their tasks in real time, allowing users to access the system from other devices, and easing the development of staff member tasks.
#6. Limited Ability to Scale
MRP systems allow a significant level of flexibility to continuously support your growing company. Regardless of the number of MRP users, you can improve the productivity of your staff by managing your productive and administrative processes from anywhere in the world in real-time.
MRP systems solve growing challenges by saving time and money while optimizing your resources and new processes.
If you identify with any of the organizational gaps above, it’s probably time to consider implementing an appropriate MRP system. With this functional, integrative tool, all members within your organization will have access to real time information – improving productivity, increasing efficiency, and reducing costs.
While successful MRP implementation will take your organization to the next level, an unsuccessful attempt can be devastating for everyone involved. To ensure your success, consider connecting with genuine individuals for their expertise and guidance throughout this process.
Our team here at MCDA CCG, INC. have helped numerous businesses throughout each phase of implementation, by identifying any process-hindering weaknesses, delivering ongoing recommendations for execution, and providing future support beyond implementation to help you take full advantage of your new system.
If you are still on the fence about whether or not MRP is right for you, in the middle of implementation, or not seeing adequate results, we encourage you to give our office headquarters in Placentia, Orange County, California, a call at no charge to you! In our discussion, we can explore your current situation to help point you in the right direction.