Designing the closed loop elements of a. material requirements planning system in a low volume, make-to-order company (with case study)

This paper describes how material requirements planning (MRP) can provide a working solution to job shop scheduling problems. In particular, the critical factors relating to resource and capacity management are examined within a low volume, make-to-order company. A rough cut capacity planning (RCCP) module is described which, when used with a detailed capacity management methodology, has enabled the collaborating company to achieve substantial savings in work-in-progress (WIP), a marked reduction in machining lead times and viable control over customer lead times. Finally, an MRP production methodology is described, which allows such concepts as unit cost justification and machine utilisation to be re-examined.