Can the establishment of smart factories address the application challenges of MRP functionality?

The construction of smart factories, along with the digital transformation of factory operations, can address the application challenges of MRP functions.

Time:2023-08-04

In the process of building our smart factory, the following issues are commonly encountered when using the MRP functionality of ERP:

  • MRP cannot fulfill material collection for all items within the factory. Some materials cannot be automatically ordered via MRP due to precision in BOM usage, material form constraints, or procurement cycle limitations.
  • Factors such as varying master data accuracy, inventory discrepancies, and production data delays lead to insufficiently precise MRP calculation results.

3. Despite high data accuracy and system utilization, short-term material shortages or prolonged inventory turnover times may still occur with MRP-based procurement.

Smart Factory

Causes of the above issues and their solutions:

1. Constrained by material characteristics, the typical solution to the inability of MRP to collect all factory materials is to determine order quantities and delivery timings based on on-site inventory and production forecasts. However, as BOM usage precision and production planning accuracy improve, system-driven ordering may become feasible in the future.

2. With the development of the smart factory and the digital transformation of factory operations, the accuracy and timeliness of master data will improve alongside business precision, thereby addressing the issue of imprecise MRP calculations.

3. Further advancements in smart factory construction can be made by innovating the system architecture, data modeling, and processing logic of ERP or MRP, ultimately resolving the problem of inaccurate MRP calculation results.

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