Industries

MRP For Subcontract Manufacturing

Work to customer drawings, often with customer-supplied material, against call-off schedules the customer can amend.

Operational Characteristics

1.
A meaningful proportion of material is customer-supplied or free-issue, and must never be valued as though you bought it.
2.
Demand arrives as schedules and call-offs rather than as discrete orders.
3.
The same part may be made for several customers to slightly different requirements.
4.
On-time delivery performance is measured by the customer, and they will quote it back at you.

Customer material is received into stock and picked up by costing as though it were purchased. Job margin is wrong, and so is the stock valuation.

A schedule is agreed, then amended. Making to the original and shipping to the amendment is how finished stock accumulates.

The customer reports your OTIF. Disagreeing with it requires your own record of promised date against actual despatch, by line.

1.
Enquiry, quotation and sales order
Customer account defaults and a recorded contract review, so what was agreed is on the order rather than in an email.
2.
Material requirements planning
Accepted demand is compared against stock, open production and purchase balances, with every recommendation linked to the demand behind it.
3.
Despatch and certificates
Consignments record what actually left against the order lines they satisfy, providing a record of quantities and despatch dates.

A tailored walkthrough follows one of your jobs from customer demand through planning, production, quality and despatch.