Material Requirements Planning (MRP) can be a daunting concept to discuss for implementation at your company. Many companies have software that has the capabilities to facilitate MRP but the users simply don’t have the knowledge on how to set it up properly. The larger MRP challenge beyond the lack of setup knowledge is how to actually utilize the information the system provides to support “make” and “buy” decisions.
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As your company grows, and you begin warehousing your products, it is important to look into various options for creating the efficient process. This is why most businesses turn to a Warehouse Management System.
But what is a warehouse management system?
Warehouse Management System Defined
A warehouse management system (or WMS) is a software application that assists users in any day-to-day tasks within a warehouse. The goal is to give management the information it needs in order to efficiently control how materials move throughout a warehouse system.
Knowing where your products are and where they need to go at all times is how you run a successful business. Because of this, material management is considered the basis of manufacturing and production.
Because of the important role that material management plays into a businesses success, we have compiled three tips that we believe will dramatically help you to improve your current material management operations.
Any organization that makes a product has to create a plan for what to make, when to make it, how much to make, where to make it, and what is required to make it (resources and materials). The challenge is what tools to use to get the best plan possible and, once you have a plan, how to schedule the production.
The business dictionary defines production planning as, "The administrative process that takes place within a manufacturing business and which involves making sure that sufficient raw materials, staff and other necessary items are procured and ready to create finished products according to the schedule specified. A typical large manufacturing business engaging in production planning will aim to maximize profitability while maintaining a satisfied consumer base."
The objectives of a good production planning process can be broken down by the following: