Difference Between MRP (ERP) or Kanban?
IN this article, we will discuess the Difference Between MRP (ERP) or Kanban? MRP in conventional MRP procedures, manufacture quantities and dates are calculated in accordance with real customer/planned self-governing requirements and therefore the required quantity and dates of the components are calculated by exploding the bill of fabric. The manufacture quantities are often compiled for various requirements.
The creation of lot sizes relies on the designated lot sizing procedure. In each production level, the lots are usually produced completely before being passed on for further processing. The dates calculated in MRP are the results of a detailed planning endure this production level whether or not it’s not known exactly when the material is required for the next production level at the time of the look run. The material is pushed through production on the premise of those dates (PUSH PRINCIPLE). This often ends up in queue times before production is often started or until the fabric is often processed further. These queue times are planned as increased lead times or floats in planning and are seldom undercut. This leads to high inventory and longer lead times in production.
In KANBAN methods no separate, higher-level planning is used to control the material flow through production. In its place, the work focus further down the line (demand source) requests material from the previous work center (supply source) only when it is obligatory (PULLPRINCIPLE). For this purpose, a control cycle is generated – with a fixed number of kanbans(cards) – between the supply source and the demand source. Every kanban signifies a precise material quantity and typically signifies a container (however, this need not be the case).
When the material quantity of a kanban has been expended, it is given the status EMPTY and is sent to the supply source. The kanban is the signal for the supply source to go ahead and produce the quantity of material recorded on the kanban. Once production is complete, the material is transported to the demand source which authorizes the receipt of the material by setting the status back to FULL. The lot size is determined by the kanbans and this quantity is produced by the supply source in one run. The entire manufacture quantity is premeditated by the total number of kanbans sent to the supply source within a predefined period. Replacement frequency is based on real consumption. It means that if additional material is necessary, the kanbans simply mingle between the supply source and the demand source more rapidly.
If a smaller amount material is necessary, the kanbans mingle more slowly. If no material is necessary, then all the kanbans will remain at the demand source with the material, meaning that all of the components required to start producing the corresponding assembly are available. There is not ever more material in movement than is defined by the number of kanbans in the control cycle and all of the production levels that are measured using KANBAN techniques are always in a position to start production.Difference Between MRP (ERP) or Kanban is as follow.
Where MRP (ERP) works best?
- MRP is by its very nature a forward-looking system.
- MRP can be very effective in an environment with a great deal of variability.
- MRP is recognised an engine to drive an integrated enterprise-wide information system. Purchasing and logistics activities were similarly being integrated with fundamental internal materials management principles into an enterprise-wide approach.
Where MRP is not as effective.
- MRP is a predictive system. It does not reflect to customer’s demand (easy to get overproduction).
- A company takes MRP suggestions and acts on them without too much review is very risky.
- MRP won’t fully support the cost-cutting.
- MRP needs lots of data for production management.
- MRP generates high overhead.
- MRP builds high work-in-process.
- MRP’s lead times are fixed.
- MRP creates potential quality hazard.
Where Kanban works best?
- Kanban is a very reactive system.
- Very little is planned ahead. Instead, Kanban causes replacement of material used in a totally reactive mode.
- Kanban works best in a highly stable and predictable environment.
Where it is not as effective?
- Kanban can quickly fail in a highly volatile environment because of the reactive nature of the system.
- Volatility in customer demand, processing problems, and extensive changes in product designs make it very difficult for a Kanban system to work effectively.