How can you analyze MRP output reports to improve production efficiency?

1 Check the accuracy of inputs

Before you can trust the outputs of your MRP system, you need to make sure that the inputs are accurate and up-to-date. This means verifying the bills of materials, inventory levels, and demand forecasts regularly and correcting any errors or discrepancies. You also need to update your MRP system with any changes in your production plans, such as new orders, cancellations, or modifications. By ensuring the accuracy of inputs, you can avoid overstocking, understocking, or misallocating your resources.

3 Review the exception messages

Another useful output of your MRP system is the exception message report, which alerts you to any problems or deviations from your production plan. For example, an exception message may indicate that a material is out of stock, a supplier is late, a machine is broken, or a customer has changed their order. By reviewing the exception messages, you can prioritize and resolve the issues that affect your production efficiency and customer satisfaction. You can also use the exception messages to improve your production processes and prevent future problems.

4 Evaluate the performance indicators

A third output of your MRP system is the performance indicator report, which measures how well your production system is meeting your goals and objectives. For example, some common performance indicators are lead time, cycle time, throughput, quality, and profitability. By evaluating these indicators, you can assess the strengths and weaknesses of your production system and identify areas for improvement. You can also use the performance indicators to benchmark your performance against your competitors or industry standards.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?