** ERP FACTORY SOFT CO., LTD. (THAILAND) **
**We are a team of software developers (Software House) specializing in manufacturing software directly for industrial factories. Currently, our main office is located in Thailand. We are the real experts in manufacturing, whether it's production planning, MRP systems, or production scheduling (Production Scheduling, Advance Planning), and overall system control within the factory.**
**We provide comprehensive ERP/MRP SYSTEM solutions for factories, including the following main systems:**
1. **Purchase Management System (PURCHASE)**
2. **Sales Management System (SALES)**
3. **Production Planning and Material Calculation System (MPS/MRP SYSTEM) (MATERIAL REQUIREMENT PLANNING) to prepare materials before production**
4. **Inventory Management System and Barcode System (INVENTORY SYSTEM)**
5. **Shop Floor Control System for tracking production processes in the factory, recording work status (OK, NG) from production**
6. **Outsourcing Control System for managing external production processes (e.g., outsourcing to suppliers) (OUTSOURCING)**
7. **Real-Time Production Tracking System**
8. **Packing System for product packaging and Barcode/QR Code (PACKING SYSTEM)**
9. **Invoicing System (INVOICING)**
10. **Barcode/QR Code-based Control System for all mentioned systems**
11. **Advanced Production Planning and Production Scheduling System (ADVANCED PLANNING, PRODUCTION SCHEDULING) (addon systems)**
12. Other systems such as workforce efficiency calculation (OEE), cost management (COSTING), MRP calculation for tooling for component and assembly factories in automotive, electronics assembly, and other complex manufacturing facilities
*** Benefits of MRP system (Material Requirements Planning) Please see below Page **
***If you are interested in DEMO SOFTWARE, custom programming for customer-specific factory needs, or for further inquiries, please contact us at Tel: 089-0035991 or Email : erpbillion@yahoo.com
### Benefits of an MRP (Material Requirements Planning) System for Manufacturing Plants
**Benefits of an MRP System:**
1. **Enhanced Production Efficiency:**
- The MRP system helps manufacturing plants plan production effectively by accurately calculating the required material quantities and scheduling orders precisely.
2. **Reduction of Material Shortages:**
- By forecasting material requirements, the MRP system minimizes the risk of material shortages that could halt production.
3. **Improved Inventory Control:**
- The MRP system enables efficient inventory management, reducing the risk of excess or insufficient inventory.
4. **Reduced Production Costs:**
- Minimizing unnecessary inventory lowers storage and handling costs, as well as the risk of obsolescence.
5. **Better Customer Service:**
- The MRP system ensures timely delivery of products to customers, increasing customer satisfaction and trust.
6. **Enhanced Planning and Decision-Making:**
- Managers can utilize MRP data for accurate strategic planning and decision-making.
**Consequences of Not Having an MRP System:**
1. **Material Shortages:**
- Without an MRP system, material shortages can occur, causing production delays and preventing timely delivery to customers.
2. **Excessive Inventory:**
- Manufacturing plants might over-order materials, resulting in excessive inventory and increased storage costs.
3. **Poor Inventory Management:**
- Lack of an MRP system leads to disorganized inventory management, potentially causing expired or damaged materials.
4. **Higher Production Costs:**
- Inefficient inventory and production management result in higher production costs and lost competitive advantage.
5. **Lower Production Efficiency:**
- Plants may face unstructured production processes and poor planning, leading to decreased production efficiency.
The Impact of Incorrect MRP Calculation on Manufacturing Plants
If a company uses incorrect MRP (Material Requirements Planning) calculations, it can significantly harm the manufacturing plant in several ways:
Inaccurate Production Planning
Material Shortages: Incorrect MRP calculations can lead to material shortages, causing production delays or halts.
Excessive Material Orders: Overestimating material needs results in excessive inventory, increasing storage costs and taking up unnecessary space.
Improper Inventory Management
Overstocked Inventory: Excessive inventory increases storage and handling costs and risks material degradation or obsolescence.
Insufficient Inventory: Insufficient inventory can prevent the plant from fulfilling customer orders promptly, leading to customer dissatisfaction and lost business opportunities.
Erroneous Order Management
Untimely Orders: Ordering materials too late or too early disrupts the planned production schedule.
Incorrect Orders: Ordering incorrect materials causes delays and additional costs in returning or sourcing the correct items.
Inefficient Production Management
Production Interruptions: Incorrect MRP calculations can lead to production halts due to material shortages or misaligned production with customer demand.
Resource Misallocation: Inefficient use of machinery and labor increases production costs.
Delayed Customer Order Fulfillment
Late Deliveries: Miscalculations in MRP can lead to delayed deliveries, causing customer dissatisfaction and loss of trust.
Stockouts: When products are unavailable, customers may turn to competitors.
Increased Costs and Financial Losses
Higher Production Costs: Inefficient resource usage due to incorrect MRP increases production costs.
Financial Losses: Poor inventory and production management can lead to significant financial losses.
Poor Management and Employee Dissatisfaction
Employee Dissatisfaction: Disruptions in the production process can lead to employee stress and dissatisfaction.
Management Difficulties: Incorrect MRP calculations complicate production and resource management, making it more challenging.
Summary:
Using incorrect MRP calculations can negatively impact production planning, inventory management, order management, production efficiency, customer order fulfillment, and increase costs and financial losses. It also complicates management and causes employee dissatisfaction. Accurate and precise MRP calculations are crucial for manufacturing plants to operate smoothly and efficiently.