How to know what, when and how much to buy in your industry with PCP and MRP

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The sales order was registered in your industry, the purchases were made based on the list of materials for your products, however, in the middle of the production process, the material is not in the correct quantity in your stock. And now, what to do? If you identified yourself with this problem, know that it affects most Brazilian industries. With that in mind, I would like to share with you a list of 4 fundamental tips for you to know exactly what, when and how much to buy for your industry, using PCP and MRP . Keep reading and find out: 1. Standardize your product registration This is an old fight that has a huge impact on inventory control and, naturally, on the effectiveness of purchases for your production. Standardize your product registration to achieve the following objectives: Create routines that establish how product registration should be done Ensuring that the process is carried out even without its main person in charge Increase the quality of work performed Even if you don't have a standardized process for your product registration team, check out some tips to avoid the most common problems in this process: Establish the main characteristics of your products (purchased or manufactured) and create a simple logic for your registration. Example of standardized description: *Product type* *Width* *Height*. Centralize the responsibility for registering certain types of products.

For example: the purchasing sector could be responsible for the registration of raw materials, the commercial sector for the registration of finished products, etc. Link products that Decision Maker Email List have the same productive purpose, but that have different codes depending on the supplier to a central code. Periodically (monthly, quarterly) inventory raw materials and identify inconsistencies. See more tips in the article 5 essential tips for efficient inventory control 2. Establish your list of materials considering losses in the production process Considering exactly what should be spent on the production process can be one of the main causes of unexpected material shortages. Therefore, analyze your production history for the last 12 months to define a percentage of losses for each raw material in your material list.

Example of calculation to determine material losses in the production process: End of period inventory = beginning of period inventory + incoming invoices – standard consumption of the item in the production process – Losses Losses = stock at the beginning of the period – stock at the end of the period + incoming invoices – standard consumption of the item in the production process Calculation example to determine the standard consumption of the item in the production process: Total products manufactured in the period * quantity of raw material for the production of 1 unit of the manufactured product. To calculate the percentage of losses just finish with the following calculation: Standard losses/consumption of the item in the production process. Understand better with a complete example: In this example you will see how to calculate percentage losses of raw material A used in the production of finished product 1 and finished product 2 . To produce 1 unit of finished product 1 is required: 10 units of raw material A 20 units of raw material B 05 units of raw material C To produce 1 unit of finished product 2 it is necessary: 05 units of raw material A 15 units of raw material B 10 units of raw material D In the period of 1 year of activities, the production of 100 units of finished product 1 and 150 units of finished product 2 was identified.