Wednesday, June 22, 2016

ERP for Material Planning

ERP for Material Planning

Today majority of the organizations, especially in the manufacturing sector and companies in the Oil and Gas industry are looking for an ERP system that has been tightly and efficiently integrated with a Material Planning module. Time has been evolved from ERP for MRP or Material Resource Planning to ERP for Manufacturing with the Material Planning as a important module.
Organizations use Material Planning as a strategy in lean manufacturing, where only the necessary level of inventory is maintained for just-in-time manufacturing. To be successful, lean manufacturing requires constant attention to detail and automation at the right points in the supply chain to ensure high levels of efficiency. These capabilities are where Material Planning excels.
ERP system can be extensively used in many verticals including manufacturing and other project-based industries such as Construction and Infrastructure as well as Oil and Gas industry. One facet of ERP that it has the potential to create great efficiency for a company is material requirements planning (MRP). Material Planning is the part of ERP that deals specifically with the control and management of manufacturing inventories and the products produced by those inventories.

One of the primary functions of ERP for Material Planning is to assist in accurate material forecasting. This requires integration with manufacturing activities, such as inventory levels, production schedules, and customer demand. The eresource ERP takes all these aspects of manufacturing, combined with a few others such as inventory lead times, and then forecasts the level at which inventory should be purchased and manufactured. This helps ensure that customer demand is realized and that out-of-stock situations are reduced.

Material Planning module in our ERP system help you reduce the amount of wastage of materials is the another primary function.. eresource ERP system combines data from current production levels and customer demand to determine the optimum level of materials and finished products. Another use of material planning module in our ERP system is the floor control and scheduling. The data used by Material Planning module to forecast materials and reduce waste can also be used to manage and maintain shop floor control and manufacturing scheduling.

Apart from the manufacturing and infrastructure development industry, Oil and Gas industry is which could benefit tremendously from eresource ERP and its material planning module. MRP helps organizations gain control of manufacturing processes, which helps those organizations get closer to the practice of lean manufacturing. In today's markets, lean manufacturing needs to be commonplace, not something that's implemented as a last resort. Without a reliable ERP system that has been intelligently integrated with an material planning module these industries will find it hard to compete in an ever tightening market...Read More

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