Material Requirements Planning for Production

Material Requirements Planning for Production

Production BOMs can contain finished products (products with their own production BOM) or assembled components (products with their own Assembly BOM). Material Requirements Planning (MRP) can be performed with or without BOM explosion. In this article we will explain the recommended workflow for MRP for production.

MRP requires an add-on to your base subscription. Add the MRP module from the My subscription page. Users whose subscription dates from before 1 February 2024 will continue to have the same level of access to MRP as they previously held.

Note: Production BOMs and Production Orders are an advanced manufacturing feature. You will need to add the advanced manufacturing module and MRP module to your Cin7 Core base subscription to use this feature. See Getting Started with the Advanced Manufacturing module for more information.

Prerequisites

 

MRP Supply Setting: BOM explosion

A bill of materials (BOM) explosion displays the highest level of a production or assembly broken down into components at its lowest level. If the parent production or assembly contains components that also have a production or assembly BOM, the nested BOMs are also broken down into components.

If BOM explosion is not checked, Cin7 Core will not execute any decomposition or a production BOM or assembly BOM. Suggested supply orders will suggest production orders to meet demand, but no suggested supply orders will be created to meet demand for components and nested products.

Note: BOMs with auto-assembly/disassembly will generate suggested supply orders for the BOM components delivered to the assembly location. Suggested supply orders will not generate assembly order suggestions for products with auto-assemble/disassemble enabled.

If BOM explosion is checked, Cin7 Core will decompose a production BOM or assembly BOM to calculate the demand for nested products and components.

Recommended workflow to plan Production Orders

We recommend conducting MRP planning for manufacturing as a two step process in order to properly schedule orders around available production resource capacity.

In Step One, the user creates a master production schedule by running MRP without BOM explosion. Net, the user runs MRP with BOM explosion to meet demand for the production components.

Step One: Create Master Production Schedule

  1. Open MRP by going to Inventory → MRP.

  2. Make sure that MRP Supply Settings: BOM explosion is NOT checked. Select any other MRP parameters required for the run, and click Run to begin.

  3. Suggested supply orders will generate production order suggestions. This pure production demand, without demand for components and nested orders.

  4. Create these orders in Planned status.

  5. Use the Capacity Planner to rearrange the planned orders so resource allocation is optimized.

  6. We recommend to NOT release the production orders yet.

 

Step Two: Execute MRP for components

  1. After all planned orders are correctly scheduled, return to Inventory → MRP to execute a run for components.

  2. Make sure that MRP Supply Settings: BOM explosion is checked. Planned Production Orders should be selected as demand sourceand click Run to begin.

  3. MRP Run will be executed and generate suggested supply orders for nested products and components.

  4. Confirm the suggested supply orders for nested products and components to create purchase, transfer, and production orders in draft, planned, or authorized status.

  5. (Optional) Consolidate production orders and nested orders for convenience.

  6. Release production orders.

 

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