Setting MRP Parameters and Optimizing the Production Planning Process

Abstract

This article describes a methodical framework that combines two specific methods of Lean management, namely the ABC method and the MRP planning method. The article further argues that combining the ABC inventory method with subsequent MRP planning is beneficial if the combination is implemented in practice. To demonstrate the benefits, the framework is tested using a case study company. The presented case-study problem is to reduce the number of changeover downtimes in the environment of an engineering production company. The researched company deals with the problem of setting up production lines in a way to minimize the number of downtimes within one work shift. Within the solution, four possible variants of the production plan are presented. By combining the ABC and MRP methods, up to four changeovers can be saved, which in financial terms represents a saving of about EUR 450,000 per year.