Description
Instructions
As a consultant working in the area of business analysis, you are expected to make recommendations to clients regarding the optimization of business operations, including production, material control, quality, and delivery. In order to convey a sense of professionalism, self-efficacy, and value to the client, you have decided to create a detailed report that outlines the key components of MRP to recommend or caution against the installation of an MRP system.
Since your services are rewarded primarily by the effective launch of MRP within the client's organization, you want to define certain business characteristics that are likely to undermine or block the effective application of MRP so that you will recognize and avoid consulting agreements that carry a high risk of failure. Knowing in advance what these undesirable characteristics are puts you in a position to adjust your promise to deliver accurately or withdraw your name from the list of potential vendors for the client.
Include the following in your report:
- A list of business operating characteristics that are best aligned with MRP (where MRP is most effective).
- A list of operating characteristics that render MRP ineffective or undesirable (when should a client not implement MRP).
- Benefits of implementing or improving MRP in an organization (list at least 15 key areas of expected improvement, such as reduced lead times).
- Five selected items from your list of 15 expected improvements, along with descriptions about how a companion ERP (Enterprise Resource Planning) system might be used to link certain functional areas or operational activities to achieve and maximize each expected improvement effectively. This requires, for each of the five items, a minimum of two paragraphs that:
- Identify the functional area(s) that are favorably affected by the benefit.
- Describe ERP data elements (types of information) that serve as inputs and outputs of the ERP and MRP systems.
- Provide a real-world example that clearly reveals how the chosen improvement item influenced each functional area in one or more of these five key scorecard categories: Safety, Quality, Delivery, Cost, and Employee Morale.
- A summary of your thoughts on MRP.
Length: 5-7 pages, not including assignment coversheet, title page, and reference page(s). Use topic section headings for each criterion listed above.
Explanation & Answer
Attached.
Running head: THE PRODUCTION STRATEGY
The Production Strategy
Student Name
Institution Affiliation
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THE PRODUCTION STRATEGY
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Business operating characteristics that are best aligned with MRP
Firstly for the MRP to be successfully integrated there needs to be proper planning in the
organization. Proper planning enables the production department to make better
decisions.
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The organization should also ensure that data is accurate in terms of forecasted demand
and needs, bill of materials, and accurate inventory records.
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The organization should also ensure that production costs are well calculated to ensure
that losses are avoided. The bill of materials depicts the costs and materials required for
the production of a single unit of product.
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The procurement department also needs to have a holistic view of the inventory levels
against the products demanded. The control over the inventory is crucial for the MRP.
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The production department should have a production schedule in conjunction guided by
the inventory levels; product demands to make better decisions regarding production
material needed and the available orders.
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Sales orders can also affect the effectiveness of material resource planning. Sales orders
should be consistent and predictable to enable efficient planning.
II.
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Operating characteristics that render MRP ineffective or undesirable
The lack of inventory planning and management will hinder the effectiveness of the MRP
system and as a result, make the planning process difficult due to the lack of forecasting.
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Poor planning and coordination will reduce the synergy that is required for the various
departments to coordinate in managing orders and materials.
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Forecasting of demand should correspond with the material that will meet the production
needs and hence there is a need to ensure that there is a balance to avoid surplus.
THE PRODUCTION STRATEGY
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In some cases, the MRP system is installed in faulty systems and software. It is crucial to
ensure that the system's operating environment is optimal and compatible.
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The MRP system may fa...
