Materials Requirement Planning Essay Example | Topics and Well Written Essays - 750 words

Materials Requirement Planning - Essay ExampleOne of these long term benefits of materials havements planning is the occurrence that the softw ar involved in materials requirement planning shall serve as a facilitator for the company to take down benefit more from commonality because at every point in cartridge holder, inventory organization is dismission to be under taken by the software to ensure that the right allocation of materials and products are in place for mathematical product to begin. The system of having to undertake product and material inventory manually and mechanically would therefore be taken care of. Role of commonality and how it benefits the company Going through the models of commonality available to Schwinn Bicycle Company, there are two major roles that the system offer be verbalise to be playing for the company. The firstborn has to do with the benefit of overcoming market pressure and the second has to do with assurance of cost reduction for manuf acturers. On the benefit of overcoming market pressure, it can be seen that the major idea behind commonality is the ability to interchange comp unrivallednts and parts of the bicycles produced with others (The Guardian, 2012). What this means to rate of production is that at any point in time, manufacturers are non obliged to look for the exact component or part that would fit into a specific field of the bicycle in the line of production. Subsequently, the time that spent on searching for parts is incorporated into the genuine production time. In a typical example, the search for replacements for make as against aluminum and aluminum as against titanium can easily be taken care of through the functioning of commonality. Ideally therefore, manufacturers are afforded the luxury of dealing with materials as and when they are available to fit into a nonher component and not needs complete a search for a new component. What is more, the company is able to cut down on cost signifi cantly especially when it comes to the cost of labor. Indeed, commonality ensures cost benefit production in several(prenominal) ways (Gardener, 2001). In the case of Schwinn Bicycle Company, the company can have the luxury of depending on however a few laborers to get most parts of their production executed because the principle of commonality permits that one employee may play several roles on the production line especially when the use of common materials that can fit into other components are involved (Gardener, 2001). For example within the companys set up, it would not have to have an aluminum ripe as well as a steel expert for the production of crown race. This is because the very laborer who works with aluminum could be trained to work with steel and so the cost of employing two workers becomes saved for the company. Still on cost benefit, it can be said that anytime demand meets supply or even exceeds it because market pressure is beaten by means of commonality, producti vity goes high and this results in market revenue. The company therefore has the benefit of completing several units of bicycles within shorter time frames, sales of which translate into increase in revenue for the company. How materials requirement planning (MRP) is useful to Schwinn One major criticism that has often come up against companies in the line of commonality is their refusal to adhere to the basic principles of materials require