Material Positioning Analysis: more than just a new kind of MRP
The current way of working, nor the concept behind it existing in current ERP systems with standard MRP is no longer adequate. Much more can be done with material requirement planning than current standard MRP provides for industrial organizations working with ERPs in the 21st century.
I have called the concept and function Material Positioning Analysis (MPA), because of the analysis possibilities offered by the approach as well as the way in which materials, components, semi-finished products and raw materials are placed and positioned in the business production process by the program, and by the function, and have registered it at the Benelux Office for Intellectual Property.
Through the proof-of-concept test, it is my considered opinion that it can completely replace the MRP mechanism and the MRP function in ERP systems. The preconditions under which this function operates are the same as those that also apply to standard MRP.
In the ERP system, all stocks listed therein must be accurate and reliable and must correspond to the actual physical stock in the warehouses. The article table and BOM table must be in order and properly maintained. The parameters that are set in the article table for each article in the ERP database in order to run MRP properly and optimally also apply here. Here too, in the event of shortages, so-called Planned orders can arise, which, before they are converted into real work orders and purchase orders, can be assessed by material planners and purchasers. The Material Planning Window and the mechanism to convert Planned Orders into real ones are still valid here as well, and in principle, MPA is possible with all ERP systems that have standard MRP.
There is one caveat, however. Business organizations that would like to work with MPA must fully switch to the new mechanism. It is not possible to do both standard MRP and MPA simultaneously, as it would duplicate the Planned orders, so that ultimately the material coverage would never be correct should they be converted to ‘real’ orders.