MRP Definition

Material Requirements Planning - (MRP) A system for effectively managing material requirements in a manufacturing process.  Information systems have long been an important part of the manufacturing environment. In the 1960s, manufacturers developed Material Requirements Planning. According to the American Production and Inventory Control Society, Inc. (APICS), MRP is a set of techniques that uses bill of material data, inventory data, and the master production schedule to calculate requirements for materials. It makes recommendations to reorder materials. Furthermore, because it is time-phased, it makes recommendations to reschedule open orders when due dates and need dates are not in phase. Time-phased MRP begins with the items listed on the Master Production Schedule and determines the quantity of all components and materials required to fabricate those items and the date that the components and material are required. Time-phased MRP is accomplished by exploding the bill of material, adjusting for inventory quantities on hand or on order and offsetting the net requirements by the appropriate lead times.
 

MRP Services

Bilocon controls our internal manufacturing processes with full featured MRP (Material Requirements Planning) software and carefully crafted internal operating procedures for production planning and execution.   

We offer our customers the smooth production cycle flow that results from keeping inventory low but well planned to meet the customer’s forecast needs.  Several of our customers have taken advantage of the reduced overall manufacturing cost realized by using our integrated MRP system on their products. 

The foremost advantage of our MRP system is that it provides a structured way of controlling your inventory.  Not only is the planned production flow more smooth but if there is a sudden spike in sales you can find out at a keystroke what parts would be needed to build a given number of additional units beyond the currently forecast requirements. 

Bilocon can also provide purchasing services to help keep your inventory costs down while keeping stock levels tuned for maximum ROI.

 Turn Key

 Basic features of the plan

• We stock your parts in our stockroom
• You supply a production forecast
• We kit your parts per your requirements
• Bilocon or you build the product
• Bilocon or you purchase the parts

 To take advantage of this option you would need to supply Bilocon with the following information: 

• Bills of material for your assemblies
• Your typical lead time for each part
• Your forecast for required build completion dates
• When Bilocon buys the parts we need to know what latitude we have on second sourcing the parts and the information required to identify potential manufacturers for the parts.

 Kitted

 Basic features of the plan

• Your company stocks the parts
• Your company buys the parts
• You supply Bilocon a production forecast
• Bilocon supplies you a list of parts and their required dock dates

 To take advantage of this option you would need to supply Bilocon with the following information: 

• Bills of material for your assemblies
• Your typical lead time for each part
• Your forecast for required build completion dates

Bilocon is willing to adjust either plan to meet your companies’ particular needs.  The combination of our extensive product documentation experience and years of purchasing experience can save you money. 

Let us start today on a plan to save you money, email or just give us a call to discuss your needs.

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