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pc/MRP for a small manufacturing business

Jan Kimmell's Profile

I would like to find other manufacturing finance people who are using a pc/ MRP system for a manufacturing business to share experiences, best practices, etc.

Answers

Jeff Taylor
Title: CFO
Company: Communications Co.
(CFO, Communications Co.) |

Pardon the dumb question, but is pc/MRP a software platform for MRP?

John Herndon
Title: Senior Consultant
Company: NOWCFO
(Senior Consultant, NOWCFO) |

No such thing as a dumb question.

MRP is Material Resource Planning. It allows a manuf entity to project inventory needs based on build times, pending orders, capacity, etc. The process is typically owned by the Manufacturing Group and partnered with the Cost Accounting Department.

Jan Kimmell
Title: Controller
Company:
(Controller, ) |

Jeff pc/MRP is a MRP & inventory control systemf or small businesses. It is quite inexpensive and has limited functionality. But, it is what I have to work with.

Jeff Taylor
Title: CFO
Company: Communications Co.
(CFO, Communications Co.) |

Ahhh, it's this system: http://www.pcmrp.com/. Sorry, used MRP systems (mostly Oracle) for years, but not this one.

James Godfrey
Title: V.P., CFO
Company: In between
(V.P., CFO, In between) |

I've implemented a couple. Depending on your business needs, I think, if you have the option, step up to an ERP system (it should have an MRP module within). In today's world, your business has to be nimble. The last situation I was in, we would have been out of business without the forward scheduling capability of my ERP. We had a long supply chain, and the ability to plan our production and assembly around that was imperative. It was also critical to have inventories well under control, in stock and on the way.

Please do not make the mistake that many do; letting the finance function choose an "accounting system" without consideration of the operations of the entire business. If you do the latter, you can save the cost of the software many times over. Think also about product costing, and work order costing. These are very important as you keep and eye on productivity and profitability by line and customer.

Lastly, I don't think, in a normal manufacturing, contracting, or distribution business you will outgrow a good PC based system until you get into the $100M to $300M range. Even then, most will adapt to an upgraded database engine to improve your productivity.

I spent something less than $100K fully installed on a $15M business and it paid for itself quickly. When the business grew to $50M, we were cruising with the same admin staff while our performance beat the pants off the competition.

Search carefully,

Sanford Rich
Title: Managing Director
Company: Whitemarsh Capital Advisors LLC
(Managing Director, Whitemarsh Capital Advisors LLC) |

Consider the NetSuite ERP offering which includes Rootstock MRP, www.rootstocksoftware.com. This Software as a Service alternative can be scaled with a growing business and includes significant functionality which also can be scaled down and up with requirements. I am an investor in Rootstock. It is being launched by NetSuite in a broad marketing effort in the next month or so.

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