Or why is amis-delta needed - surely MRP does all this?
Most people talk about inventory reduction, Inventory Matters focuses on inventory optimisation, meaning that you need just enough - so you may need more than you currently have for some items, less for other items.
Materials Requirement Planning (MRP) is an execution tool. It manages the relationship between supply and demand, converting the customer / forecast demand into detail component / raw materials requirements.
Most systems rely on the planners setting the key batching and safety rules (up to 10 rules per part). When the demand is changed by the customer / forecast, the MRP system makes recommendations to the planner to move / cancel orders to keep the supply and demand balanced. The planner is required to approve and implement these actions.
This places a lot of responsibility and workload on the planners’ shoulders often without the benefit of any guidance on what is appropriate.
On a day to day basis the planners are generally focused on keeping the manufacturing running smoothly (shortages and expedites) and ensuring parts are ordered in good time.
- If materials arrive early, it is in effect one thing less to worry about
- If he buys larger batches, he may get a cost reduction and it will run out less often
- If the safety stock is too high, it will not cause the planner a shortage
So there is little motivation to focus on the key actions required to reduce inventory.
amis–delta will test these three areas and identify where the levels potentially require adjustment. Because it is inventory value based it will focus on the critical few rather than the trivial many. So it does not deluge the planner with additional actions.
The net result is that it assists the management in providing focus to their planner to ensure that they make effective use of the limited amount of time they get to focus on inventory management.
To view Geoff Relph's full presentation delivered at the launch of the new amis-delta software please follow this link: amis-delta inventory management launch presentation
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