28 Nov 2022

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Tassia Electronics: Material Requirements Planning

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Academic level: College

Paper type: Research Paper

Words: 611

Pages: 1

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Tassia Electronics is a medium company specializing in manufacturing electronics products. Tassia Electronics has eighty employees at the company’s main offices with twenty outlets in fifteen states. The company’s annual turnover is valued at twenty million dollars. Tassia Electronics specializes in manufacturing digital electronics, embedded systems, integrated circuits as well as power electronics.

Our company’s production schedule is determined by inventory money, production costs, the supply of materials as well as customer needs. The company depends on the sales department to meet consumer demands since when the sales department makes a sale, the production department moves to forecast demands to be in a position to meet new demand. Tassia’s production schedule pits the company in a position to control and plan manufacturing which translates to overall company planning. Planning manufacturing enables the company to make legitimate commitments to make deliveries to customers and our outlet’s warehouses. The company is at the moment able to manufacture fifty units of digital electronics, twenty embedded systems, thirty integrated circuits, and sixty power electronics.

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Tassia Electronics has an active procurement department charged with ordering supplies. The department keeps inventory records for all departments making it easy to order supplies from a central point as well as ensuring monitoring is done to prevent wastage and pilferage. The electronics company arranges for delivery of its orders from suppliers under an agreement to get a two percent discount on all purchases.

Available software 

Material requirements planning 

A company can employ a material requirements planning system to undertake planning for production; inventory as well as scheduling to enable a manufacturing company to manage its manufacturing processes better (Ravindran, 2016). The software for planning essentially is advantageous in ensuring that a company has adequate material for production with a plan to deliver products to customers on demand. A company may benefit from material requirement planning software since it will be able to maintain materials and products at the lowest possible levels. The material requirement planning system is faced with data integrity challenges since inaccuracies in inventory data will have an impact on manufacturing, purchasing, and scheduling activities.

Enterprise resource planning 

Enterprise resource planning is a management software used to store, collect as well as interpreting data in a business set up. An enterprise resource planning system ensures that an up to date database of business processes is maintained tracking cash, production capacity, and raw materials available. The system has several advantages for example; the data on such a system is shared across all departments providing useful data while operating in real time providing a consistent overview of the resources status (Ravindran, 2016). However, in enterprise resource planning, it can be problematic to customize the system with a risk of sharing sensitive information across departments.

Capacity planning system 

Demand for products fluctuates at times making it difficult for a company to plan adequately. A company that experiences spikes in demand may require using a capacity planning system to adequately plan for fluctuations in demand especially with a make-to-order set up of business (Ravindran, 2016). A capacity planning system is advantageous in mitigating bottlenecks created by fluctuations in demands.

Accounts software 

The accounting process is usually a taxing process which if not well handled may lead to losses for a company. Companies can adopt accounting software that enables recording and processing accounting transactions since they are fast in executing accounting processes with automation of analysis and reports consequently reducing errors. However, according to Shepherd (2015), accounting systems are more expensive than paper accounting systems with specialized support being required.

Ordering systems 

Businesses can integrate ordering software to manage orders, tracking shipments as well as tracking order status. Ordering systems are advantageous since they can give a real-time update of events while handling multiple orders.

Enterprise feedback management 

Providing feedback to a company is crucial in helping an organization better serve their customers. An enterprise feedback management system is helpful to a company since analysis can be undertaken within a limited time. However, the system may harbor bias from customers.

References

Ravindran, A. R. (2016). Operations research and management science handbook . Crc Press.

Shepherd, R. W. (2015). Theory of cost and production functions (Vol. 2951). Princeton University Press.

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StudyBounty. (2023, September 16). Tassia Electronics: Material Requirements Planning .
https://studybounty.com/tassia-electronics-material-requirements-planning-research-paper

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