Material Requirement Planning – Synchronized MRP Software

Material requirements planning (MRP) comprises all organization’s processes and systems for calculating the materials and components needed to manufacture a product. The MRP system involves cataloging materials and components in the factory, identifying needs of additional materials and components, and scheduling their production or purchasing products and semi-finished products.

The MRP system’s objective is to increase the efficiency and flexibility of production processes. Material requirements planning is executed via dedicated production resource management software, such as the DELMIA Ortems APS system, which considers additional production limitations together with the synchronized MRP.

Bill of materials (BOM) is the list of raw materials, components, parts and their quantities required to manufacture the end product.

Safety stock is an additional quantity of goods stored in the warehouse to reduce the risk of the goods running out of stock. Safety stock serves as a buffer stock when sales are greater than planned and/or the supplier cannot deliver additional units within the required time.

Sales and operations planning (S&OP)? is the process of defining the strategy for achieving the organization’s goals that allows for finding a middle-ground solution satisfying the demands of teams across sales, marketing, finances, operations, and logistics. The use of S&OP helps reduce excess inventory and improve the company’s operations, ultimately resulting in cost decrease.

Supply planning comprises the entire planning process including distribution, production, and supply chain based on demand forecasting, all while factoring in capacity limitations and material availability. The objective of this process is to plan the supply that best meets the demand for the product/service offered.

DELMIA Ortems Synchronized Requirements Planner (SRP) is a solution that allows for creating multilevel bills of materials (BOMs) and joint production orders for semi-finished products used in many end products. SRP facilitates production planning and extensive production scheduling within the single planning system (APS). The solution creates orders for all BOM levels while factoring in the availability of machinery, equipment, operations, and materials under limited performance conditions.

Maintenance management services is a department in a manufacturing company created to ensure that the plant’s technical infrastructure, i.e., machinery, equipment, and installation, are always available and enable the right use of the infrastructure. The department is also often responsible for machinery maintenance, inspections and repairs, the equipment register, and occupational safety and health management.

Traceability is the ability and process of monitoring and tracking the product and its origin of goods across all stages of the supply chain.

Working stock is the amount of materials and number of components that make up inventory required to be available at specific time to ensure effective production optimization.