{"id":3816,"date":"2019-10-08T10:37:33","date_gmt":"2019-10-08T10:37:33","guid":{"rendered":"https:\/\/www.mrpeasy.com\/blog\/?p=3816"},"modified":"2020-12-31T11:27:28","modified_gmt":"2020-12-31T11:27:28","slug":"7-signs-that-show-you-need-to-start-using-mrp-system","status":"publish","type":"post","link":"https:\/\/www.mrpeasy.com\/blog\/7-signs-that-show-you-need-to-start-using-mrp-system\/","title":{"rendered":"7 Signs That Show You Need to Start Using an MRP System"},"content":{"rendered":"\n<p>You can see how your organization has significantly grown within the last periods. More staff, more tools and maybe you have incorporated more machinery or new technology. <\/p>\n\n\n\n<!--more-->\n\n\n\n<p>Yet, it often happens that computer systems do not change. There are delays in product delivery and hidden costs emerge as a result of not having an MRP system or, in the best case, keeping an outdated one.<\/p>\n\n\n\n<p><em>You can also listen to this article:<\/em><\/p>\n\n\n\n<iframe loading=\"lazy\" title=\"7 Signs That Show You Need to Start Using an MRP System\" height=\"122\" width=\"100%\" style=\"border: none;\" scrolling=\"no\" data-name=\"pb-iframe-player\" src=\"https:\/\/www.podbean.com\/media\/player\/ejj6j-cfa576?from=pb6admin&#038;download=1&#038;version=1&#038;auto=0&#038;share=1&#038;download=1&#038;rtl=0&#038;fonts=Helvetica&#038;skin=1&#038;pfauth=&#038;btn-skin=103\"><\/iframe>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img loading=\"lazy\" decoding=\"async\" width=\"500\" height=\"333\" src=\"https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2019\/10\/7-signs-that-show-you-need-to-start-using-MRP-system.jpg\" alt=\"7 signs that show you need to start using MRP system\" class=\"wp-image-3826\" srcset=\"https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2019\/10\/7-signs-that-show-you-need-to-start-using-MRP-system.jpg 500w, https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2019\/10\/7-signs-that-show-you-need-to-start-using-MRP-system-300x200.jpg 300w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/figure><\/div>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #343333;color:#343333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #343333;color:#343333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.mrpeasy.com\/blog\/7-signs-that-show-you-need-to-start-using-mrp-system\/#Sign_1_The_famous_Excel_or_spreadsheet_is_the_heart_of_your_organization\" >Sign #1: The famous Excel or spreadsheet is the heart of your organization<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.mrpeasy.com\/blog\/7-signs-that-show-you-need-to-start-using-mrp-system\/#Sign_2_Information_updates_are_the_headache_and_need_excess_of_communication\" >Sign #2: Information updates are the headache and need excess of communication&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.mrpeasy.com\/blog\/7-signs-that-show-you-need-to-start-using-mrp-system\/#Sign_3_The_organization_handles_different_figures\" >Sign #3: The organization handles different figures<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.mrpeasy.com\/blog\/7-signs-that-show-you-need-to-start-using-mrp-system\/#Sign_4_There_are_complications_when_several_users_need_to_use_the_same_software_simultaneously\" >Sign #4: There are complications when several users need to use the same software simultaneously<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.mrpeasy.com\/blog\/7-signs-that-show-you-need-to-start-using-mrp-system\/#Sign_5_There_is_an_excess_of_administrative_waste_or_the_administrative_inefficiency_is_the_new_problem\" >Sign #5: There is an excess of administrative waste or the administrative inefficiency is the new problem<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.mrpeasy.com\/blog\/7-signs-that-show-you-need-to-start-using-mrp-system\/#Sign_6_Data_scalability_makes_up_a_limitation\" >Sign #6: Data scalability makes up a limitation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.mrpeasy.com\/blog\/7-signs-that-show-you-need-to-start-using-mrp-system\/#Sign_7_There_is_no_integration_between_organizational_areas\" >Sign #7: There is no integration between organizational areas<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Sign_1_The_famous_Excel_or_spreadsheet_is_the_heart_of_your_organization\"><\/span>Sign #1: The famous Excel or spreadsheet is the heart of your organization<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>True,\nthe spreadsheet is a flexible and effective tool. But, you have realized that\nthis tool has lost the strength of its dawn.<\/p>\n\n\n\n<p>The\nspreadsheets have accessibility issues. It is necessary to perform regular\nback-ups or save changes continuously so as not to lose information and working\ntime. There are countless cases in which hours of work were lost because the\nlast version was not saved correctly.<\/p>\n\n\n\n<p>You may\nalso find it familiar or have heard many times of the loss of information by\noverlapping the files and having no way to access the previous ones. This\nimplies not only uneasiness to the user, but also a problem to the entire\norganization using that information. For example, the team of a certain\nproduction line is waiting for the production program.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Sign_2_Information_updates_are_the_headache_and_need_excess_of_communication\"><\/span>Sign #2: Information updates are the headache and need excess of communication&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Prices, costs, and formulas were set in the previous period (month, quarter, year, etc.). Yet, the person in charge of the area (commercial, costs, procurement, etc.) doesn&#8217;t have time to upload the new information into the system. <strong>The possibility of receiving updated information becomes a nightmare. And even after the main variables have been modified, there are still related parameters in need of modification. Consequently, the staff needs to:&nbsp;<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Make an excessive\namount of phone calls to reduce the uncertainty<\/li><li>Wait for the last\nemail to get the last status report&nbsp;<\/li><li>Have additional\nmeetings to ensure the data and figures are updated<\/li><\/ul>\n\n\n\n<p>The\nupdated information would be the same across an integrated system if you had\none. The staff can get the required information with minimum communication and\nno need to make further inquiries.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Sign_3_The_organization_handles_different_figures\"><\/span>Sign #3: The organization handles different figures<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Each\ndepartment has its tables, statistics, and expectations. The information often\nis not the same between departments and it is necessary to add meeting hours to\nconfirm the figures. This implies an excessive amount of time is lost by\nmanagers and administrators, who could well use it to add value to the\norganization.<\/p>\n\n\n\n<p>The introduction of an <a href=\"https:\/\/www.mrpeasy.com\/mrp-system\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"MRP System (opens in a new tab)\">MRP System<\/a> will help to standardize the same information. It also compiles reports to understand the current situation, the statistics, and the evolution over the last periods. It reports the budget, the inventory levels, the production volumes, the product turnover, the sales volumes and more.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Sign_4_There_are_complications_when_several_users_need_to_use_the_same_software_simultaneously\"><\/span>Sign #4: There are complications when several users need to use the same software simultaneously<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>The users are several and the time is now. Does it happen to your team that there are overlaps for the use of the software? The effects are immediate:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Deprivation of the real-time\ninformation<\/li><li>Loss of\nadministrative man-hours<\/li><li>Losses of man-hours for\nthe whole organization<\/li><li>Outdated information\nleads to erroneous results<\/li><\/ul>\n\n\n\n<p><strong>The MRP systems, either on-premise or cloud-based, can solve this problem:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Everyone can report their\ntasks in real-time and simultaneously<\/li><li>The system can be\naccessed from alternative devices (i.e. smartphones, tablets, and\/or apps)<\/li><li>The framework and\nthe configurations are user-friendly<\/li><\/ul>\n\n\n\n<p>MRP systems (<a href=\"https:\/\/www.mrpeasy.com\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"especially Cloud-based MRP (opens in a new tab)\">especially Cloud-based MRP<\/a>) ease the development of the tasks of the members of your organization.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Sign_5_There_is_an_excess_of_administrative_waste_or_the_administrative_inefficiency_is_the_new_problem\"><\/span>Sign #5: There is an excess of administrative waste or the administrative inefficiency is the new problem<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>This is a problem for the organization in general. Imagine that the production floor needs to produce the next batch of products. There are many reasons that there&#8217;s no progress with the <a href=\"https:\/\/www.mrpeasy.com\/production-planning\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"production plan (opens in a new tab)\">production plan<\/a> as scheduled:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The parameters of\nthe equipment have changed<\/li><li>The proportion or\nquality of the materials has been modified<\/li><li>The warehouse simply\ndoes not have the required material<\/li><\/ul>\n\n\n\n<p><strong>What are the effects?&nbsp;<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Operational downtime<\/li><li>Idle labor and\nmachinery<\/li><li>Lost\nproduction&nbsp;<\/li><li>Administrative staff\nmust re-schedule everything in a hurry<\/li><li>Lost sales<\/li><li>Unsatisfied\ncustomers<\/li><\/ul>\n\n\n\n<p>MRP\nsystems increase the administrative efficiency in planning, doing, checking and\nmonitoring stages.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Sign_6_Data_scalability_makes_up_a_limitation\"><\/span>Sign #6: Data scalability makes up a limitation<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>MRP\nsystems allow a high level of flexibility despite the increase in the number of\noperations and users. MRP systems offer degrees of freedom to scale regardless\nof the number of users. Again, here it is possible to significantly improve the\nproductivity of human capital. Managing your productive and administrative\nprocesses from anywhere in the world in real-time.<\/p>\n\n\n\n<p>If you\nare expanding to new regions, you will need to redefine the distribution\ncenters, the human capital, the inventories levels, etc.&nbsp;<\/p>\n\n\n\n<p><strong>MRP systems solve scalability challenges&nbsp;<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Save time and\nmoney&nbsp;<\/li><li>Optimize and\nintegrate all the resources<\/li><li>Organize and\nautomate the new processes<\/li><li>Identify easily the\nareas for improvement<\/li><li>Facilitate\ncommunication throughout the organization and environment<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Sign_7_There_is_no_integration_between_organizational_areas\"><\/span>Sign #7: There is no integration between organizational areas<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Let\u2019s see a classical example when <a rel=\"noreferrer noopener\" aria-label=\"Supply Chain Planning (opens in a new tab)\" href=\"https:\/\/en.wikipedia.org\/wiki\/Supply-chain_management\" target=\"_blank\">Supply Chain Planning<\/a> runs the <a href=\"https:\/\/www.mrpeasy.com\/material-requirements-planning\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"MRP (opens in a new tab)\">MRP<\/a>. It&#8217;s necessary to explore the <a rel=\"noreferrer noopener\" aria-label=\"Master Production Schedule (opens in a new tab)\" href=\"https:\/\/www.mrpeasy.com\/blog\/what-is-master-production-schedule\/\" target=\"_blank\">Master Production Schedule<\/a> (MPS) to quantify the necessary resources and times. And the questions are:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>What is the\nproduction plan?<\/li><li>What is the\nnecessary amount of labor?<\/li><li>What is the quantity\nof materials required and their required arrival times?<\/li><li>What materials will\nbe missing and need sourcing?<\/li><li>How is it possible\nto integrate all this information with the accounting &amp; financial systems?<\/li><\/ul>\n\n\n\n<p>Another\ntypical example is when the commercial department needs to set or achieve sales\ngoals. For instance, when it needs to connect the sales with inventories and\ninvoicing systems:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>What\u2019s the product\navailability at present and the expected available to promise level at the end\nof the next period?<\/li><li>Is it possible to\ndeliver the product mix and volume to the customers on time?<\/li><li>Is it possible to\ncover all the market regions?<\/li><li>Is there any updated\ncost information of materials from which it\u2019s possible to set a new profitable\nprice?<\/li><li>Is it possible to\nintegrate the supply chain systems to the commercial, accounting, and financial\nprocesses?<\/li><\/ul>\n\n\n\n<p>Often these needs are not met by traditional tools and need an introduction of an MRP system. It will encompass the flow of demand and solve all the previous questions.<\/p>\n\n\n\n<p><em>You may also like the infographic about <\/em><a rel=\"noreferrer noopener\" aria-label=\"Top 7 Mistakes When Searching MRP\/ERP Software (opens in a new tab)\" href=\"https:\/\/www.mrpeasy.com\/blog\/infographic-top-mistakes-when-searching-mrp-erp-software\/\" target=\"_blank\"><em> Top 7 Mistakes When Searching MRP\/ERP Software<\/em><\/a><em>.<\/em><\/p>\n\n\n\n<p>If you have identified with any of these signals, it is probably the time to analyze the implementation of an appropriate MRP system. The managers, the analysts and all the members of your organization will use up-to-date, real-time and standardized information. It&#8217;s time to work with administrative efficiency and reflect on the general efficiency of your business.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>You can see how your organization has significantly grown within the last periods. More staff, more tools and maybe you have incorporated more machinery or new technology.<\/p>\n","protected":false},"author":4,"featured_media":3826,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[90,94],"tags":[106,4,17],"class_list":["post-3816","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-choosing-a-software","category-tips","tag-choosing-software","tag-manufacturing-software","tag-mrp-system"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>7 Signs That Show You Need to Start Using an MRP System - MRPeasy<\/title>\n<meta name=\"description\" content=\"Here are 7 signs that show you when it is probably time to analyze the implementation of an appropriate MRP system in your manufacturing business.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.mrpeasy.com\/blog\/7-signs-that-show-you-need-to-start-using-mrp-system\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"7 Signs That Show You Need to Start Using an MRP System - 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