Supply Chain Management (SCM)

SCM –Material Requirement Planning (MRP)

• MRP is the heart of our ERP software. The entire SCM department of your company will react to information produced by our MRP. MRP works on three inputs – Item Master and Bill of Material (BOM) from the Design module and Dispatch Plan from the SCM module
  
  
• Details of all items (finished products, assemblies, bought-outs) are recorded in the Item master. These include item code, name, purchase unit, stocking unit, conversion factor, rate, balance quantity, minimum stock, reorder quantity, specification number, overstocking tolerance, purchase lead days etc. There are more than 40 information parameters which can be filled depending upon the need.
  
• Bills of Materials (BOM) in parent child relationship are logged into the system along with manufacturing lead days. Any number of assemblies - subassemblies can be accommodated. Thus even a very complex product can be handled by the software
  
  
• The user can enter the Dispatch plan into the software, or we can also directly get it from the Sales module as per your requirements
  
  
• A complex and foolproof logic has been built into the software to do the “MRP Run”. We have spent considerable time and effort in perfecting this algorithm. The outcome of the MRP run is:
  • Indents showing what items should be procured in what quantities and on what dates.
  • Work Orders showing what items to manufacture in what quantities and on what dates.
    
    
• Material requirements for the entire company are derived by the system after considering the dispatch plan, item master and BOM.
  
  
• Material availabilities for the entire company are derived by the system after considering pending work orders, purchase orders, indents, work-in-process inventory and available stocks
• For each item, shortages are worked out and new indents are generated if the item is a boughtout or new work orders are generated if the item is to be manufacturing on the shop floor.
  
  
• When many sub-processes (assemblies/subassemblies) are involved, this becomes an extremely complicated exercise, impossible to be handled manually or even with commonly available programming tools.
  
  
• Requirement plan for any item can be displayed with just a Mouse click.
  
  
• The MRP is sensitive to changes in the design or dispatch plans. Indications are given to postpone, expedite or cancel existing pending POs and WOs. This can offer further major savings in Inventory carrying costs.
  
  
• Un-released indents and W/Os are canceled before arriving at fresh requirements automatically. As a result, MRP can be repeated any number of times with changes in dispatch plans.
  
  
• Considering available stocks and BOM, a report showing “possible components or batches of a particular product” can be produced with just a Mouse Click. This report also indicates the extent of inventory imbalance and costs involved in balancing the inventory for manufacturing any product.
  
  
• List of bought out components of any complex assembly with procurement cost estimate can be obtained with just a press of the Mouse button.
  
  
• We sincerely consider MRP module as our show-piece reflecting our creative genius and years of hard work. It is the most crucial piece in the Integrated System Jigsaw Puzzle which we have now put together!