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<\/a><\/p>\nAs we can see, manual planning of material needs is diminutive when the product being manufactured is simple \u2013 in this example we know the remaining 2,000 barrels needed to fulfill the total 5,000 pen order would need to be ordered such that the barrels arrive on day 14 of this project. This would reduce inventory carrying costs while ensuring production schedule is met. If the BOM, inventory levels, or product schedule changes in this example, it is very simple to correct the ordering processes to handle the change and keep a consistent material plan.<\/p>\n
However, as product complexity increases, more material is needed, more suppliers are required, purchase orders multiply, and production schedules grow longer. Defense manufacturing companies started adopting computerized MRP systems in the 1970\u2019s to handle this increased complexity. [7] Constant innovations to MRP systems since then have resulted in advanced suites that use software to scan in\/scan out material to keep an accurate count of inventory, read engineering drawings and automatically populate a BOM, and create a production schedule. The outputs of this system include inventory pull lists for a warehouse clerk to deliver to the production floor as well as purchasing orders scheduled so material comes just in time for production need. [8]<\/p>\n
At Textron Marine and Land Systems though, their home-grown, MS-DOS based MRP system has a fraction of these capabilities. For example, the schedule is based on stagnant data entry. This means when production is delayed all work activity start\/finish dates need to be manually reprogrammed to account for the shift in schedule. The bill of materials is created by manufacturing engineers who take engineering design drawings and manually input the quantity of each part or material needed \u2013 should the design change the BOM must be updated manually. Inventory is manually counted on a quarterly basis, with often large discrepancies in actual and expected inventory levels. What results from this outdated system is a lack of clarity into material needs and status which creates a financial impact through increased inventory carrying costs and production delays from not ordering the appropriate amount of material or ordering it too late to meet schedule. [9] After TMLS\u2019s 80 years of success within the defense manufacturing industry however, proponents of this home-grown system argue not to \u2018fix\u2019 what isn\u2019t broken.<\/p>\n
With the recent financial loss due to \u2018production issues\u2019 in hindsight, do the short-term costs and impending culture change that come with implementing an advanced MRP system outweigh the long-term benefits of the efficiencies promised?<\/p>\n
<\/p>\n
(753 words)<\/p>\n
<\/p>\n
References<\/h3>\n
[1] Textron, Inc. (2017). Form 10-Q 2017. Retrieved from Mergent Online database<\/p>\n
[2] Strader, F. and Rutter, N. (2017).\u00a0Textron Wins Canada’s Tactical Armoured Patrol Vehicle Program. [online] Newswire.ca. Available at: http:\/\/www.newswire.ca\/news-releases\/textron-wins-canadas-tactical-armoured-patrol-vehicle-program-510347701.html [Accessed 15 Nov. 2017].<\/p>\n
[3] Textron, Inc. (2017). End of the year financial report for 2016. Providence, RI<\/p>\n
[4] Comptroller General of the United States. Impediments to Reducing the Costs of Weapon Systems. Report to Congress (PSAD-80-6), Washington DC.<\/p>\n
[5] Deloitte Consulting (2016).\u00a0The next era in aerospace and defense: How to outperform in an environment of innovative disruption.<\/p>\n
[6] Volman, T., Berry, W., & Whybark, D. (1992). Manufacturing Planning and Control Systems, Third Edition.<\/em> Burr Ridge, IL.<\/p>\n[7] Magad E.L., Amos J.M. (1989) The Impact of Material Requirements Planning and Distribution Requirements Planning on Materials Management. In: Total Materials Management. Competitive Manufacturing Series. Springer, Boston, MA<\/p>\n
[8] Orlicky, J. A. (1988).\u00a0Material requirements planning: the new way of life in production and inventory management. New York, NY, etc.: McGraw-Hill.<\/p>\n
[9] Karim, Akram Jalal. (2011). The significance of management information systems for enhancing strategic and tactical planning.\u00a0JISTEM – Journal of Information Systems and Technology Management,\u00a08(2), 459-470.\u00a0https:\/\/dx.doi.org\/10.4301\/S1807-17752011000200011<\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
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<\/a><\/p>\n