Business Considerations
Business Considerations
In this section, you learn how to identify some key business considerations before setting up MRP and CRP in QAD Enterprise Applications.
There are several business issues to consider before using MRP and CRP:
• Planning parameters
• Kanban
• Batch processing
• Cumulative lead times
This section does not discuss all potential issues, but presents some issues to generate thought and discussion.
Planning Parameters
You set these planning parameters in Item Planning Maintenance (1.4.7) and Item-Site Planning Maintenance (1.4.17).
Definition
Planning parameters are established for each item in your database; they govern the way MRP handles the items.
Why Consider?
MRP is only as accurate as the data it processes; 98% or greater accuracy in your planning parameters is required for best results.
Functionality in QAD Enterprise Applications
The item planning data is the most used information in your database.
Setup Implications
• Inaccurate data can be catastrophic
• A good clean-up of the database is always worthwhile
Kanban
Definition
A Japanese method of production and inventory control first developed and used at Toyota.
• Designed for day-to-day, on-floor control of production and inventory, it relies on a series of control triggers, typically a visual one in the form of cards
• Kanban is the predecessor of Just-in-Time (JIT)
Kanban is an appropriate way to schedule a plant when you use advanced repetitive with single-step routings or multiple steps with a milestone at the last operation. Otherwise, you need a repetitive exploded schedule in place to net the work in process.
Why Consider?
Many companies use it. Some QAD customers use kanban in their plants and MRP to create supplier schedules. You can set up separate buyer/planner codes to apply to kanban and non-kanban items.
Setup Implications
Planning parameters in Item Planning Maintenance (1.4.7) can be set to meet kanban needs.
• Set Order Policy to POQ with a period of one or two days
• Avoid order modifiers or use them to set Kanban quantity
QAD Enterprise Applications offer several production options including Kanban, Flow manufacturing, Repetitive Line Scheduling, and Sequenced Line Scheduling. Which of these methods you choose to use has a significant impact on setting your planning parameters. This choice in turn has a significant impact on how MRP calculates requirements.
Before setting planning parameters for an item, it is necessary to understand the total manufacturing environment for all items at all sites. Different items may be processed differently at different sites.
Batch Processing
Definition
A computer technique where transactions are accumulated and processed together.
Why Consider?
MRP runs can take a long time. Schedule MRP at reasonable intervals, depending on:
How often you require change
How often your suppliers need updates
The length of your MRP horizon
Cumulative Lead Times
Definition
The time required to produce an item, based on component lead times.
Why Consider?
• MRP considers component lead times in generating its plan
• Inaccurate lead times result in faulty plans
• MRP horizon must be at least one day longer than longest cumulative lead-time
Discussed in Training Guide: Product Structures and Formulas.
