How can you use MRP to optimize production for a specific product line?

2 Create a bill of materials

A bill of materials (BOM) is a document that lists all the raw materials, components, subassemblies, and finished goods that are needed to produce a product. It also shows the quantity, unit of measure, and hierarchy of each item. You need to create a BOM for each product in your product line, as well as for the product line as a whole. A BOM helps you estimate the material costs, track the inventory levels, and plan the purchasing and production orders.

3 Develop a master production schedule

A master production schedule (MPS) is a plan that specifies the quantity and timing of each product that you want to produce in a given period. It is based on your demand forecasts, inventory policies, and production capacity. You need to develop an MPS for your product line, taking into account the availability of materials, resources, and facilities. An MPS helps you balance the supply and demand, allocate the resources efficiently, and meet the customer expectations.

4 Run an MRP explosion

An MRP explosion is a process that converts the MPS into a detailed schedule of material and resource requirements for each product in your product line. It uses the BOM and the inventory records to calculate the net requirements, lot sizes, order dates, and due dates of each item. You need to run an MRP explosion for your product line, using a software system that can handle the complexity and variability of your products. An MRP explosion helps you optimize the material flow, reduce the waste and costs, and improve the quality and delivery.

5 Monitor and control the production

The final step is to monitor and control the production of your product line, according to the MRP plan. You need to track the actual performance of your materials, resources, and processes, and compare it with the planned performance. You also need to update the MRP system with any changes or deviations that occur in the demand, supply, or production conditions. You need to monitor and control the production of your product line, using various tools and techniques, such as dashboards, reports, alerts, and feedback. This helps you identify and resolve any issues or problems, and adjust the plan as needed.

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?