Introduction
Kirkstall Precision Engineering is currently using a material requirement planning (MRP) system, Access FactoryMaster. The business has implemented the MRP system to improve its inventory management and quality control. In particular, the organization relies on barcode scanners to ensure that material management is accurate, up to date, and paperless (Kirkstall Precision Engineering, 2020). The MRP system also allows the business to use Gantt charts to create and manage schedules. Kirkstall Precision Engineering (2020) expects to save more than £20,000 and achieve a 20% turnover growth with the help of Access FactoryMaster. Thus, it is challenging to overestimate the significance of this MRP system for the business.
Effect of MRP Systems
It is worth admitting that MRP systems typically offer significant advantages, and many scholarly studies prove it. For example, the article by dos Santos et al. (2020) shows that positive effects include reducing information processing time, achieving higher reliability of calculations, meeting delivery times, and others. Simultaneously, MRP systems also allow businesses to reduce waste and improve strategic planning (Akintokunbo & Obom, 2021). That is why one can conclude that these systems contribute to improved work performance.
Inputs, Process, and Outputs of MRP Processing
When it comes to MRP processing, specific inputs, outputs, and processes are involved. The inputs are typically the master production schedule, bill of materials, and inventory status file. All these documents and data are entered into the system that analyzes and processes them. After that, specific outputs are presented, including planned orders receipts, planned order releases, rescheduling notices, cancelation notices, and others. This information demonstrates that MRP systems refer to comprehensive information management processes.
Conclusions
The executive brief has demonstrated that a material requirement planning system is a significant element for a business. This phenomenon results in significant advantages, including reduced information processing time, decreased waste, improved strategic planning, and others. Sufficient evidence demonstrates that Kirkstall Precision Engineering essentially benefits from its Access FactoryMaster, which represents a real-life example of how a material requirement planning system improves business operations. That is why organizations should use this approach to achieve many benefits.
References
Akintokunbo, O., & Obom, O. (2021). Material requirement planning and supply chain performance of oil and gas firms in Rivers state, Nigeria. American Journal of Supply Chain Management, 6(2), 10-25.
dos Santos Alves, M., Barboza, D. V., Bella, R. L. F., Silva, W. R., & Meiriño, M. J. (2020). Material requirement planning in a rubber micro-operation. Research, Society and Development, 9(8), 1-17.
Kirkstall Precision Engineering. (2020). How Access FactoryMaster is helping Kirkstall Precision Engineering expand infrastructure and improve productivity.