CLASS A PERFORMANCE COMPANIES REAP SIGNIFICANT BENEFITS FROM MRP Operations Management Assignment Help

CLASS A PERFORMANCE COMPANIES REAP SIGNIFICANT BENEFITS FROM MRP

Those firms that have achieved excellence in implementing MRP are designated Class A companies. Usted below are –
several Class A companies and the benefits they have achieved

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to job runs that alternate output products and do not include continuous processes such as petroleum or steel.
As you can see in the exhibit, MRP is most valuable to companies involved in assembly operations and least valuable to those in fabrication. Another factor that affects the. degree of benefit gained from an MRP system is the number of level in the product. The greater the number of levels, the greater the benefit of MRP. One more point to note: MRP typically does not work well in companies that produce a  low number of units annually. This is especially true for companies producing complex expensive products requiring advanced research  nd design. Under such circumstances, experience has shown that lead times tend to be too long and too uncertain. and the product configuration too complex for MRP to handle. These types of companies need the control features that network scheduling techniques offer. and thus would be better off using project scheduling methods (covered previously in Chapter .

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