Flashy Flashers, Inc – Case Study Example

Flashy Flashers Flashy Flashers, the automotive components producing company decided to initiate a full-fledged ERP system in orderto improve its total business functions. As the initial step of this process, a new MRP system was launched last year under the supervision of Kathryn Marley, the vice president of operation and supply chain management. Although the MRP system has been working well for the last one year, Marley decided to seek further improvements. The production and inventory control manager, the shop supervisor, and the purchasing manager put forward their own suggestions and complaints regarding the current processes.
The production and inventory control manager reminds her about the significance of introducing a system of priority planning. The current system does not provide accurate information about the priority and capacity. Although there is a MRP explosion each week, that provides the company with new material requirement plan, which only helps to identify when new orders need to be launched. Therefore, if there is a proper priority planning, cost of operation can be reduced. According to the shop supervisor, the lacking work consistency makes them either too busy or idle. Sometimes, in order to meet the immediate needs, everyone in the shop has to work overtime. This situation makes receipt information in the MRP records rather inaccurate and confuses the planners. Therefore, according to the shop manager, company has to make the workstations consistently busy. The purchasing manager’s opinion is that the MRP plan sometimes does not allow the planned lead time; and there are discrepancies between the MRP records and the real lead times spent on planned order releases for purchased items.