Dave,

100% right!

-----Original Message-----
From: mapics-l-bounces@xxxxxxxxxxxx [mailto:mapics-l-bounces@xxxxxxxxxxxx]
On Behalf Of Dave Turbide
Sent: Thursday, April 10, 2008 1:31 PM
To: mapics-l@xxxxxxxxxxxx
Subject: Re: [MAPICS-L] MRP

Good advice from all the list members who responded. Proves the value of
this list.



Don't be too put off by the accuracy requirements - they ARE important but
not show-stoppers if you can't get that good.

MRP is designed with "buffers" that you can use to compensate for those
things that you don't know (like forecast inaccuracy) and can't control
(like inventory inaccuracy). The main buffers are shrinkage, safety stock,
'padded' bill-of-material quantities, 'padded' lead times, and lot sizing.
Each has its own purpose and each will generate more inventory. So, if you
are not in as much control as you'd like, crank in the buffers and the
system will allow you to function with minimal shortages but will not help
you achieve the win-win of fewer shortages with lower inventory.

The key to success with MRP is to recognize your shortcomings, use the
appropriate buffers to get started (this, in part, generates the inventory
increase you were told to expect), then improve your accuracy and control.
THEN REDUCE THE BUFFERS. This last step is one that many MRP users forget
(or don't understand) and is the cause for much MRP 'failure'.



Good luck and do let us all know how it's going.



Feel free to contact me directly if I can be of any help.

Dave Turbide

dave@xxxxxxxxxxxxxxx

www.daveturbide.com <http://www.daveturbide.com/>



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