Question: A key factor affecting the material requirements planning is upper management's support for their team. It is essential that training for all users is conducted

A key factor affecting the material requirements planning is upper management's support for their team. It is essential that training for all users is conducted at the time of implementation and throughout the use of the programming. Company strategies must align with the programming capabilities and how uncertainty and disruptions affect the data collected. Material planning centered around customer demand, manufacturing order size, the capacity needed, the ability to project and forecast demand, and the warehouse capacity are features of the programming.

Inaccuracy can occur with input errors and affect the integrity of the data. It is vital that individuals who are responsible for the collection of data input it as information is supplied so that information within the system is at real-time levels. Managers of each department should also do cycle counts to ensure that those numbers align with those within the material requirement planning (MRP) system. The comparison of what the MRP programming claims is in inventory must be checked and verified so that raw materials needed for production have been received and are available to use.

Other issues that can cause inaccuracies within the MRP programming pertain to lead times. Lead times can change due to the shipment and receiving of the raw materials from suppliers, thus changing the projected scheduling lead times at the beginning of the production process. Quantity levels can be impacted as well when items are delayed in shipment, are placed on backorder, or are not available from a supplier. Uncertainty and disruptions within the supply chain can cause this inaccuracy in the projected inventory levels when inputting into the system. Company leaders and users must continue to update inventory levels, conduct cycle counts, and train staff to make sure that any items placed or removed from inventory are scanned at the time of receiving and shipping.

One way to ensure that inaccuracies are limited is to provide training to staff members and have hard copies of all paperwork regarding purchasing, receiving, and shipping stored and available for review.

Provide examples of potential differences between the information system and the physical reality of your department. What are the consequences of some of these mismatches?

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