A major food manufacturer wanted to improve the efficiency of the purchasing department.
Although BOM’s were maintained on the system, the current stock replenishment system involved multiple manual processes and extensive use of spreadsheets. This proved extremely time consuming and prone to error. In addition, a lot of data was not available and buyers had to interrogate the system before making any decisions.
After in-depth analysis and many discussions, it was decided that using MRP was not practical, mainly because of the quality of the system data. IMS proposed simulating the MRP process on a report. The process was as follows:
- The Company forecast was uploaded to the server.
- A utility was created to transfer it to the AS400.
- The forecast was ‘blown’ though the bill of material to calculate the materials required.
- A report was developed to display all of the required data e.g. supplier, stock levels, previous usage, outstanding orders, etc.
This exercise enabled the Company to identify a lot of data errors and correct them e.g. incorrect UOM’s, BOM’s, preferred supplier, etc.
As a result of IMS’ input and support the revised report has not only significantly improved the efficiency of the purchasing department, but it has also aided central buying.
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