Search Results for: supply-planning

  • When MRP is Applicable or When is MRP Appropriate?

    … ERP, but simply reviewed the opinions of manufacturers, which favored the continued implementation of ERP. While not necessarily true or well researched, it is a good example of the common thinking out in industry.
    All companies must maintain a full BOM and explode this BOM using MRP or using other supply planning/production planning methods to accomplish the same objective. This is normally proposed even for companies that outsource their manufacturing.

    However, is this always the case? For companies that perform their production, some supply and production planning system – be it MRP or MRP substitute – is necessary. The last few …

  • How MRP Works

    … We include not only how MRP works but some of the history of MRP.
    Our References for This Article
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    How MRP Works
    Materials Requirements Planning, or MRP, was the first supply planning method to be computerized. MRP can create purchase requisitions and initial production requisitions. However, MRP does not have the information necessary to schedule production and is unaware of production constraints. For this reason, I like to call MRP a method for “initial” planning only, and production requisitions created …

  • How to Solve MRP Problems

    … of MRP. However, to do this, it is necessary to use a method that “can see the entire supply network.” MRP cannot see outside of a single location — that is its design. Multi-plant planning is rated by Brightwork Research & Analysis as one of the two most sophisticated functionalities in supply planning. The only known application which performs multi-plant planning is PlanetTogether, and this is one of the three Superplant functionalities. Turning on multi-plant planning is a desirable goal, but it is more involved than merely using MRP functionality.
    Problem 4: Other Systems
    “This means that other systems …

  • The Weak General Knowledge of MRP Systems

    … are managing. However, this is not the only problem. Suppose someone were to come to me and ask if person XYZ were the right person to control a planning group. And they were to tell me that this person had a good knowledge of the technical aspects of demand planning, supply planning, and production planning and further that they were savvy in supply chain software and able to manage people, I would still have another question, and that question would be…

    “Do they have the confidence and a demonstrated history of pushing back on bad ideas?”

    This is because they …

  • What is MRP and ERP Systems?

    … and DRP (Distribution Requirements Planning – DRP pushes product through the supply chain, while MRP pulls product into the manufacturing company. It is a few of the only planning procedures are used in the ERP system.
    MRP and ERP Systems
    MRP runs from within an ERP system or from an external supply planning system.
    How to Improve the Use of MRP
    A company can begin with just one or a few licenses of a specialized MRP system to run MRP and see the results before taking the plunge and implementing the system. This approach has little risk. We estimate that a …

  • How Do You Calculate a Forecast?

    … that had many complex methods, but in most cases, the forecasting system applied simple methods. The reason is that more complex forecasting methods require a strong pattern. However, these strong patterns are rarer and rarer in modern product datasets. 
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    *Crostons’ Intermittent is a complex method, but when supply planning is accounted for, it is often the case that Crostons’ adds little value over a level forecast. 
    The broader focus in our view should be on forecast error measurement. Yet, this is the weakest area of more forecasting departments. We think a significant reason for this is a …

  • How Can Forecast Error Be Reduced?

    … Forecast Model Assignment and Profiling Analysis.
    This company wanted to move to “advanced forecasting methods” and funded a project to do just this. However, notice the results of the forecast model assignment below.
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    Notice the distribution of the forecast methods over the data set. This was performed with a forecasting system with many complex methods, but the forecasting system applied simple methods in most cases. (*Crostons’ Intermittent is a complex method, but when supply planning is accounted for, it is often the case that Crostons’ adds little value over a level forecast.)

    This company had a …

  • Next Steps for the Potential Customers Reviewing the Brightwork Explorer

    … format. This copies demand history and the forecast. This would probably take a few hours of an analyst’s time.

    We need previous forecasts because this is all rearward looking. So you could choose a demand period interval of the past 8 months. But the interval and number of periods are up to you.
    The system can accept any number of periods, but in the early stage, we are trying to minimize the amount of data that has to be copied and generated.
    For supply planning or parameter improvement, we need more data. The reality of that data is up

  • How To Reduce Your SAP Investment

    … a combination depending upon the application in question. When we had our application created, we received responses from development entities that recommended Java when it was not the best language for the application’s needs. Those who develop in a particular language recommend that language, so it is critical to get unbiased advice on the language or languages to use before beginning development.
    Reducing the SAP ERP Footprint
    The only desirable functionality within SAP ECC or S/4HANA is the financial module.
    If one looks at the functionality of sales order management, demand planning, supply planning, production scheduling, pricing, inventory

  • Introduction to Brightwork SAP Support

    … of what we offer, include, but are not limited to the following:

    All Upgrades (DS, LC, OS, Kernel, Security, Patches, Ehp)
    User Security Self Help Templates
    Third Party Software Integration (with our Brisk Integration)
    UX development
    APO Security Patches
    APO Database Refresh
    APO Monitoring
    Core Interface CIF Monitoring
    APO HANA Migration
    APO Hardware Migration
    BW Realignment Management
    BW Security Patches
    Reporting with BOBJ and Tableau other BI
    Supply Chain Control Tower
    Mobile Applications for Demand and Supply Planners
    Notifications and Alerts of Critical Situations etc.
    Management Summaries of Demand and Supply Planning

    Notice that many of these items are not