Lead Time Reduction and the Limits of MRP

MRP’s Limitations

Last time, we talked about how a visualized production schedule can help you respond to due dates faster than doing it manually. Now let us discuss one of the most important areas of lean manufacturing – reduction of lead times.

In today’s fast-paced business atmosphere, it is imperative that businesses strive to reduce the gap between the receipt of an order to shipment. Thus, many companies have come to the realization of development and implementation of systems, in which the old, traditional methods couldn’t accomplish.

MRP1

Material Requirements Planning or MRP, for many years, has been utilized by many businesses to improve the production efficiency and products delivery. But one of the limitations of MRP has been its deterministic, fixed view of lead time – it does not take into account, for example, the capacity of each factory’s machine. Also, materials order placement, a fundamental feature of MRP, is most of the time, performed much earlier than necessary resulting in an exorbitant increase in inventory. In production management terms, this is called Infinite Capacity Scheduling.

These shortcomings of Material Requirements Planning or MRP,  has been successfully corrected by Finite Capacity Scheduling, one of the features of an Advanced Planning and Scheduling software (luckily, you can download a trial version, too)- to read further, please click here

free trial

 

6 Responses to Lead Time Reduction and the Limits of MRP

  1. Millard says:

    Its like you read my mind! You appear to know so much about this, like
    you wrote the book in it or something. I think that you could do with a few
    pics to drive the message home a little bit, but instead of that,
    this is wonderful blog. A great read. I’ll definitely be back.

  2. asprova says:

    Hello Millard. Thank you for your feedback. I’m sure pictures will help breathe some life into our blogs – thank you for your recommendation.

  3. Pingback: Efficient Machinery Assignment « Asprova

  4. Wow, wonderful blog layout! How long have you been blogging for?
    you make blogging look easy. The overall look of your site is magnificent, let alone the content!

  5. James says:

    Really helpful! Continue to post great articles, please. Your design looks good, too!

  6. Pingback: Lead time reduction: what are its effects? | Asprova

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