CP-94:Materials Planning Got You Down? Use MRP!

Jonathan Davis, Deltek

Agenda» What is MRP?

» What are the Benefits?

» How MRP works in Costpoint

» Item Master & Project Controls

» MRP Options

» Action Messages

» Supply and Demand

» Costpoint’s MRP-Lite Functionality

» Q&A

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MRP 6 W’s » What is it?

» Material Requirements Planning is a production planning, scheduling, and inventory control system used to manage manufacturing processes

» Who is it for?» Typically companies in the manufacturing/assembly industry

» Where is it?» Available through the Advanced Manufacturing module within

Costpoint

» When do you use it?» Run periodically to ensure material is available for production

and finished goods are available for delivery

» Why is it important?» Fosters on time availability of the right materials required for

production

» How does it work?» MRP uses bills of materials, a master schedule and supply

information to calculate material needs

Benefits» Reduces component shortages when it is time to begin the

production process

» Facilitates minimizing excess inventory by time-phasing the parts you need and preventing the purchase of unnecessary material

» Defines the overall lead time which can be used to generate more realistic promise dates and enable timely delivery of manufactured goods to your customers

» Optimizes the use of manufacturing resources. Including shop floor employees, test equipment and shared machines

» Helps lower overhead rates due to decreased inventory costs and optimal use of production resources

» It’s FUN!

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Supply & Demand within Costpoint» Demand:

» Sales Orders

» Manufacturing Order Requirements

» Safety Stock Thresholds

» Inventory Reservations

» Forecasts

» Supply:» On-hand Inventory

» Purchase Requisitions

» Purchase Orders

» Planned Manufacturing Order Reliefs

» Transfer Reservations

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Q&A

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