Today I'm going to talk a little bit about SysPro's MRP.
And in essence what the MRP engine does is it synthesizes different inputs
of data and consolidates them and gives us an output
which assists us in
making decisions and driving our business.
So let's go into a planning workspace.
The MRP engine
takes inputs from different sources
and I think one of the easiest place to see that is in the stock modeling program where
we can look at a stock code in a particular location
and that's quite pivotal in SysPro because stock items might behave very differently according to the location they're in.
The demand profile might be different and
the input data is certainly different.
In this location we have an opening stock,
we have some existing supply that has not been received yet,
we have some sales which have not been dispatched yet,
and then we have a forecast.
So these are our base inputs
and MRP will then look at those inputs and give us a suggested outcome.
And the suggested outcome in this location is that we
require additional stock in June.
An additional input in the inventory optimization module is a modeling of how much cover I require for this item.
This item I want 90 odd days cover which creates a suggested minimum and maximum.
And as an additional input MRP will attempt to keep my stock between the min and max.
So this is a
calculation which then gives me a suggested output at a single product and location point of view.
What might be an additional complexity is the fact that I have products in different locations and there might be some dependency between those locations.
So if I go and look at a product with a more complex supply chain I can see here that
I have certain demand warehouses which are subsidiaries and there's a relationship between these warehouses and MRP needs to understand that relationship and understand what the stock holding profile looks like in these subsidiary warehouses and
under what terms it can draw stock down from a parent warehouse.
We're talking here about demand and
depending on the environment you're in your demand might be for a
item which you procure and merely distribute or it could be for a manufactured item.
And in that case our outputs take
one of three main forms.
Our purchase orders are for items which are bought and sold or raw materials which are required in the production process.
Our job review is an MRP summary of what needs to be made and the supply chain review is a summary of what needs to be made.
So
let's start off with the purchase order review.
Now as I said the purchase order review
is a summary of
all the demand and outputs
in every single location for every single product.
And if I run that review the system will allow me to see that summarized in whichever format I require.
So in this case I've summarized the data by supplier and I can see by supplier
all the different products which are procured from these different suppliers.
I can even look at the details of one of these items in particular and go and run a requirements planning query because the system has suggested a requirement and this is effectively the validation of that
suggestion.
So the requirements planning query then allows me to view the details
of that requirement and I can see here it's the synthesis of a forecast,
some
purchase orders that are inbound,
some goods in transit which are being shipped to different warehouses.
I've got some sales demand.
So
this is a real world
application of MRP looking at these different supply and demand points
and giving me a net
output of that which is effectively
my supply quantity.
So that's just a validation
of what's happening at a detail line level of this item in this location.
But what we're seeing here is a summary of all items which I need to procure from this particular supplier.
Likewise we get a summary output from a jobbing point of view.
So I can see here that I need to manufacture and the system very similarly allows me to have a summarized suggested
job output to say
if we were to meet
our requirements we would need to produce the following products in the following quantities by the following dates.
And I've grouped them by stock location.
And then finally is the supply chain review.
So this is a review of all items which need to be moved into subsidiary locations
so that
we can retain our optimal stock levels in those locations.
So
this is across purchased and made items to be able to move these items so that they are in the correct location at the correct point in time.
So that's just been a summary on the inputs and the potential outputs of the MRP system.
And the
MRP once again sits at the heart of many different modules.
And as we can see from the various inputs we have stock information coming from our stock modules.
We have procurement information from procurement and purchasing,
sales, forecasting, etc.
So
it is literally the funnel which all of that information can be processed through to give us a sensible output from a procurement,
jobbing and supply chain point of view.
Thanks very much.