The main emphasis of this article is to increase productivity of a small sized manufacturing company or a service provider by choosing a right MRP system; the software that has been specially developed to accommodate the needs of a small business.
There are numerous vendors on the market with MRP/ERP software systems for almost every type of business. Brand name software companies encourage customers to buy their products and position themselves as “established, stable suppliers with a vision”. There is also a huge potential in new names that bring their solutions on the market, which are more reasonably priced and easier to implement.
Part of increasing the productivity is more efficient work of a purchasing department. An MRP system calculates derived demand of all components based on the demand of customers and production needs; lead time and safety stock levels for all purchased items are also taken into consideration. Purchase orders are generated for amount that is needed, allowing the company keep inventory level for purchased items is as low as possible.
When the production department knows the delivery date of purchased items, it can start scheduling the manufacturing process based on availability and capacity of production lines and work centers.
An MRP system can be used not only as a manufacturing and inventory control system but it also provides various reports on sales, production, and warehouse operations. The more precise the information is entered into the MRP system, the more accurate and detailed reports it generates, providing the management with up-to-date information on all aspects of daily operations and giving the means to run the business more effectively.