Using MRP for Purchasing

Configuration Process Automatically creating Purchase Orders Managing Vendors Managing Raw Materials Analyzing MRP results

MRP is a production planning and inventory control system used by companies to manage their manufacturing processes. MRP systems are designed to ensure materials are available for production and to ensure products are available for delivery to customers. In addition, MRP helps companies maintain the lowest possible material and product levels, plan manufacturing activities and manage delivery schedules.

DEACOM’s MRP approach is to provide a filtered list of only those items requiring action by the user. These items include those that are purchased from outside suppliers and subassemblies that are components of other items produced internally. For information on the basics of MRP, refer to Understanding MRP Basics and for advanced information, refer to Understanding Advanced MRP.

Configuration

Refer to the Configuring Options for Use in MRP page and the Managing Raw Material Item Masters page for setup information.

Process

Automatically creating Purchase Orders

Within MRP, users can put all selected items on a single Purchase Order. The quantity on the PO is set to reach the maximum inventory quantity. The multiples of PO quantity from the Item Master MRP tab are enforced. The user must select a valid Vendor unless MRP was filtered by Vendor. The "MRP Order Type" field in Purchasing > Options controls what the default order type will be - either Requisition or regular Purchase Order. Having new POs default to Requisitions is useful in situations where Work Flows exist to control when/how POs are created and approved. More information on these topics can be found on the Configuring Requisitions, Entering Purchase Orders, and Configuring Work Flows pages.

Managing Vendors

DEACOM offers the ability to define specific Vendor Parts that contain their own lead times, minimum PO quantities, unique part numbers, and descriptions, as well as pricing information that can be set with specific valid from and expiration dates. This information can be used by purchasing users when ordering supplies and can help when using the optimize prices feature in DEACOM to determine the best possible price for specific items. The Vendor Part Cross Reference also allows users to identify a preferred Vendor which can be displayed when running MRP reports. If cross references exist, the system will use the information on the cross reference when entering orders for the selected item and this specific Vendor.

Managing Raw Materials

The DEACOM Item Master record contains several fields that must be populated for items to be correctly evaluated by MRP. Examples of these fields include minimum/maximum quantities, minimum purchasable quantities, lead times, and the "Include in MRP" flag. In addition, Item Master records may contain Facility specific MRP settings, configured via Facility Part Cross References. If running MRP for a specific Facility and Facility-specific MRP information is present and set as active, then this information will be used instead of the information located on the Item Master MRP tab. Additional information on the setup of Item Masters is available via Designing a Part Numbering System and Creating Parts.

Analyzing MRP results

When run with the default display setting of Suggested > 0, the Time-Phased MRP report contains items Suggested by MRP for action. Each column will display the information used to calculate the suggested quantity considering inventory and Purchase Order minimum/maximum quantities. Information specific to the impact of suggestions on Raw Materials, Finished Goods, etc. is available on the Understanding MRP Basics page.