One key variable that is difficult to control is the integrity of accounting for materials.
The key for success in mass production is consistency and control of variables. One key variable that is difficult to control is the integrity of accounting for materials.
Not all materials are used in the way that MRP intended and they are often used for products other than those intended. In addition to simple materials issues, demand patterns to the factory have changed significantly in recent years.
Customers can now order their products on-line, without ever going to a store. Distribution warehouses have moved towards central storage factory warehouses for direct customer shipment. The lead-time between short-term customer demand changed and the demand pattern that the factory sees is now much tighter than ever before.
ERP & MRP cycles therefore need to work in much shorter time frames, often with a greater number of models and variants. Inventory accuracy becomes a much more critical issue. In this White Paper (click here to download), you will learn: