PrecisionParts manufactured 2,500+ automotive component SKUs using 85 CNC machines. Legacy MRP couldn't handle capacity constraints, creating unrealistic schedules. $4.8M excess inventory masked poor planning while material stockouts caused delays.
Implemented SAP Business One with manufacturing add-on, integrating CAD/CAM, BOMs, and real-time machine status. Advanced algorithms considered capacity, tools, materials, and operator skills for realistic production schedules.
The production planning system revolutionized manufacturing operations. Material requirements planning reduced raw material inventory by 38% while eliminating stockouts. Finite capacity scheduling optimized machine utilization from 64% to 89%. Lead times decreased from 18 days to 10 days, enabling faster customer turnaround.
MRP analyzed forecasts and orders to generate time-phased material requirements. Multi-level BOMs exploded to calculate gross requirements. System suggested optimal purchase orders balancing carrying costs. EDI integration automated procurement. Inventory turns improved from 4.2x to 9.8x annually.
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