MRP system

✅ Why this step ensures you have the right parts—at the right time

You can’t build what you don’t have.

An MRP (Material Requirements Planning) system helps you track what materials and components are needed, when they’re needed, and whether you have enough on hand. It links your product's Bill of Materials (BoM) to real-world stock levels and supplier lead times—turning design into action, and demand into delivery.

📘 What you’ll manage

  • What parts, materials, and components are required for each build
  • How much stock is available, reserved, or on order
  • When to trigger purchasing or production orders to meet demand
  • Supplier lead times and minimum order quantities
  • Shortages, risks, and timing mismatches before they become blockers

🛠️ Tools and methods

  • BoM-Driven Requirement Reports

    Convert production schedule into exact quantity needs per part.

  • Inventory Tracking

    Monitor on-hand, committed, and incoming stock for all components.

  • Lead Time Mapping

    Link each item to supplier timelines—highlight urgent or long-lead items.

  • Order Generation & PO Sync

    Auto-generate orders when parts drop below reorder point.

  • Shortage & Surplus Reports

    Identify where you’re overstocked, at risk, or need to expedite.

⚠️ Common MRP issues to avoid

  • Disconnected BoMs. Your MRP must reflect actual design—sync regularly from PLM or CAD.
  • Outdated inventory data. Inaccurate stock leads to production delays or overbuying.
  • Poor lead time visibility. One late item can delay the entire build.
  • No override rules. MRP systems need smart humans to catch edge cases or override logic.

💡 From supply chain teams

“We were always chasing parts—until MRP flagged long-lead items a month out. That visibility helped us build on time for the first time.”

– Hardware Ops Lead, Smart Energy Startup

💡 Use MRP alerts weekly—even a simple spreadsheet-based system helps pre-empt most inventory issues.

🔗 Helpful links & resources

✍️ Quick self-check

  • Do we know what parts are needed, when, and how many?
  • Are our BoMs and stock levels synced regularly?
  • Have we accounted for lead times and reorder points in our build schedule?
  • Is someone reviewing the system weekly—or catching issues before they hit production?

🎨 Visual concept (optional)

Illustration: A digital dashboard shows a part list with columns: “On Hand”, “Required”, “PO Status”, “Lead Time”. Some rows are flagged red (“Short – Order Now”). A calendar overlays production weeks and part arrival. A sticky note says “Fast-track connector? ETA too close.”

Visual shows how MRP systems connect inventory, purchasing, and production into one coordinated flow—before parts become problems.
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