Inventory accuracy is essential for net demand calculations


MRP cannot function without an accurate inventory, which is essential for the net demand calculations that drive job and PO generation.  If you are operating with an unreliable inventory, you will be unable to use DBA with any success.  There are two key practices you can implement to remedy this problem:

  

Remedy #1 - Make BOM accuracy an absolute requirement


Make BOM accuracy an absolute requirement in your company culture.  Whenever BOM errors are encountered during the course of a job, make sure the parent BOM gets corrected for the benefit of future jobs.  BOM errors are the source of many inventory problems.

  

Remedy #2 - Issue materials to jobs in real time


Issue materials to jobs in real time within the Work Center Schedule instead of after the fact at time of job receipt.  This takes no extra time because it must be done at some point anyway and in most cases only a few clicks using the Pre-Fill option.  Real time job issues eliminate delays to job receipts and will engender user confidence that inventory numbers are reliable.