If you’re considering investing in (MRP), you’re probably already aware of some potential benefits to your business. That’s why Katana’s MRP System, the all-in-one solution, gives you total control over all production and sales processes. So you can make sure your product has the highest quality and reaches the customer easily. Track the life of your product from start to finish: raw materials, operational tasks, finished product, and order delivery. All from all-in-one solution!
The mrp software is mainly used in the fabrication and manufacturing industries. This system is a kind of inventory control. This means that companies anticipate the demand for customer products, the fabrication or manufacturer predicts the quantity and type of products they buy, as well as the amount of material to produce them. Then they push the products to the consumers.
This is in contrast to a suction system where the customer places an order first. The main drawback of a push system is its vulnerability when revenue varies. In this scenario, the predictions become inaccurate, resulting in a shortage of stock or overstocking for manufacturing.
The inventory is divided into two categories, independent and dependent demand. Independent demand is indeed a craving for finished or completed products, for instance, cell phones or perhaps automobiles, while dependent demand is actually the demand for incomplete parts, mechanism or just assemblies, for instance, car tires or maybe phone screens.
The Three Most Important Questions You Should Ask When Planning Dependent Demand Are:
Which components do we need?
How much of each component do we need?
When do we need the components?
When determining how much material your product requires, demand planning differs from consumption-based planning (CBP). The scheduling logic uses information received directly from customers or sales forecasting and calculates material requirements based on the dependencies of other materials. CBP only calculates material requirements using historical consumption data.
Katana MRP software synchronizes the flow of materials, components, and parts in a tiered order system, taking into account the production plan. It combines and tracks hundreds of variables, including:
- Sales orders
- Purchase orders
- Shortage of materials
- Due dates
- Expedited orders
- Marketplace demand
- Bill of material and more
For all companies, the Katana MRP software has some common goals. This includes inventory that is minimal but high enough to meet the customer’s requirements and that you plan all activities, including purchasing, delivery, and manufacturing.
There are a few terms that appear repeatedly in MRP. Some terms refer to MRP as a concept, others to MRP software. These terms are as follows:
Item: In material requirements planning, an item is a name or maybe code number employed for the event you are actually scheduling.
Low-Level Code: This is the lowest code of an item in the bill of materials and indicates the order in which items are executed through a dispatching process. It uses low-level code (LLC) simply because an MRP tool recognizes as well as links the level at which an article shows in the very product chain, and employs it to schedule the appropriate time to meet all the requirements of the system.
Lot size: The lot size is the very number of units you actually order all through production.
The Lead Time: This is actually the time it takes to assemble or perhaps manufacture a product from the start to finish. Two types of lead periods or times are the order and production time. The order waiting time is the time from the beginning of the purchase to the receipt of the purchase. Manufacturing lead time is the time it takes the company to complete a product from start to finish.
(PD) Past Due: This is the time when you consider overdue orders.
(GR)Gross requests: You generate this very MRP using the forecasting model of the number of units produced, the quantity of material needed for each unit produced, the current stock and the stock ordered. This is the total demand for an item in a given period.
(PR)Planned Receipts: These are the open orders for products that the company currently has but has not yet fulfilled.
(ND) Net Demand: You generate this MRP using the main schedule based on gross demand, available stock, and other quantities. This is the actual and required amount that needs to be produced in a given period of time.
(POR) Planned Order Receipts: The number of orders in a time period that is expected to be received, this order planning prevents the stock from falling below the required threshold.
(PORL) Planned Order Releases: This is the quantity you want to sort by a period; this is compensated by BY for the delivery time.
(CLT) Cumulative Lead Time: This is the longest time that the product develops. You can calculate it by looking at each bill of material and finding out which one is the longest.
(PT) Product Tree: This is a visual representation of the bill of materials that shows the quantity of each part and the number of parts you need to make the product.
In fact, you may even be developing your business case based on cost savings and associated efficiency.
From stricter inventory management to tighter production planning, to improved traceability features, these benefits are just some of the reasons to continue. However, an advantage of the MRP software is often overlooked, although this will have a very positive effect on your business.
What is it? The ability to offer customer service much better than ever is important because satisfied customers are more likely to buy again as well as refer to others. All this is good news for your final balance.
Katana MRP solutions, the line of reasoning is firm in the manufacturing process. The three main goals are often cited as:
- Make sure materials and products are available when needed
- Keep the supply of materials and products at the lowest possible level
- Plan of manufacturing activities, delivery times and purchasing activities
The Katana MRP software enables you to get a complete picture of what’s happening in your factory, even if you’re actually far from your workshop. Know exactly when you want to make more products or simply order more materials. Katana’s MRP system automatically updates material and product inventory based on its sales and production activities, you receive alerts when stocks are below critical levels.