A New Approach to MRP Functioning in Make-to-Order Manufacture.

Abstract

Because of the unique requirements in the industry dealing with long lead time, custom-made products cannot be satisfied by either MRP or Critical Path systems alone, but necessitate a combination of features of both. MRP is capable of handling manufacturing tasks in great detail, but it is not designed to accomodate non-material related items. Further, schedules generated by MRP do not reflect the flexibility desired in varying amounts in every manufacturing contract. Critical Path, also known as Network Analysis, can handle activities of any nature. It provides flexibility in scheduling activity and caters for resource and cashflow scheduling and other features usually not present in typical MRP systems. A combined MRP/Network Analysis system for use in a make-to-order manufacturing environment is described. The paper examines in detail the experience gained from a leading compressor manufacturer whose most functional requirements were finally met by the proposed model.