Recording intermediate and final results in detail helps management

If you consider the possibilities for a business organization to additionally create or, realize for itself, in terms of control of the business organization as a whole, and based on detailed data and information recorded in the ERP system by such an MRP mechanism, you will perhaps come to astonishing conclusions. This method and way of working creates special and positive side effects: –

With additional analysis and report programs, you can determine and calculate how well, as a business organization, you are able to meet all demand for products in all Customer Orders, and work orders, at any point in time.

• You can express that as a percentage; the percentage of covered sales orders compared to the total sales orders currently running in the ERP system, for example.
• And you can do that with work orders too; how well are all requested materials and components covered, expressed as a percentage of the total number of work orders that exert that demand for materials and components. Not only with finished product work orders, but also semi-finished product work orders. Additionally, you can also do this with Purchase Orders, for instance.
• It could answer the question: how well is the entire set of pending Purchase Orders, expressed as a percentage, able to meet all requirements and needs for items, materials and components and what percentage of all pending Purchase Orders ‘does not actually serve anything?’ In a well-functioning company, that has its planning in order, this percentage should be zero.
• And if you were to run such a type of MRP function every day, you could additionally plot that data in a trend analysis, over time, and use it for Key Performance Indicators (KPIs) to determine the qualitative and quantitative performance of these processes within the organisation.

This allows for meaningful answers to the management question: “How well is the organization actually doing and where should adjustments be made?” I am not aware of an ERP system where the standard MRP function is able to produce such data and answer such questions.