Material flow execution function

Material flow in the production process is very important. It affects the duration of orders and the cost of its production. This flow performs the function of providing materials for ongoing production, which allows you to optimize machine downtime due to lack of material. At the same time, it reduces or eliminates the costs caused by these downtime. The material flow function streamlines the production process. This process is monitored from the moment when raw material is obtained until the finished product is sold to the customer. Thanks to the constant flow of material, we are able to provide material for production at every stage of the production process. Its constant monitoring allows us to analyze its inventory and prevent the phenomenon of "frozen capital" in the form of excess inventory. The production process can then be based on production for a customer order and not on mass production where we produce material for storage. The material flow function is designed to supply:

• Production - the needed material
• Sales - the necessary goods
• Business activities - the necessary tools and all supporting materials

The material flow is addiction to on the market demand from customers.

MRP system

MRP means Material Requirement Planning. This system helps to introduce and maintain material flow in the process. It presents the relationship between the production process and material demand. His task is to strive to optimize machine downtime as a result of waiting for material. This system is based on ensuring material requirements in accordance with the production process schedule. On its basis it is determined what material is needed for production and in what quantity. These requirements are divided in time to ensure continuous production at every stage of the process. This system monitors every element that is part of the final product. It calculates the date when we should deliver the material and start production so that a fully complete finished product is produced by the deadline. The production plan is based on the demand reported on the market, from which you know what types of materials and goods will be needed for production or sales. The advantage of the MRP system is the ability to maintain inventory at minimum levels and the ability to liquidate them at all possible stages of the process. This allows us to reduce storage costs and effectively use the resulting free space. Through this system, we can control material orders submitted at various stages of the process. We have the ability to analyze the risk that may occur during the production process e.g. absence of material or see a decrease in demand for a given good or service. It forces a quick response to the situation and immediate solution of the problem by correcting the process.

MFA and MFCA methodology

There are two types of flow analysis methodology:

• MFA - Material Flow Analysis
• MFCA - Material Flow Cost Accounting

Material flow modeling is designed to positively affect the efficiency and effectiveness of the production process. This analysis optimizes the consumption of materials and energy to a minimum and helps in managing the waste obtained. To start the analysis, specify the goal you want to achieve to be able to give direction to your activities. This analysis should be presented in the form of a Petri net, on the basis of which material flow models are created. This model shows all types of material or goods flows between different process units. The MFCA method is a tool whose task is to determine the costs arising from the flow of materials. It applies to the production system but also to the entire enterprise. It obtains information from the acquisition of material for the process to the sale of finished products. It specify the costs associated with obtaining the material, its consumption and consumption energy. It also involves system costs. All cost statements should be presented in the form of charts or diagrams to better illustrate in which part of the process we bear the highest costs. As a result, we have the ability to quickly respond to a loss of money and take action to eliminate the causes of costs.

Examples of Material flow execution function

• First example of material flow execution function is in the manufacturing industry. In this industry, material flow is used to ensure that the raw materials are available for the production process. The flow of material is tracked from the moment it is purchased, to when it is used in production, and finally when it is shipped to the customer. It is important to ensure that all of the materials are available when needed, as this can impact the production schedule.
• Second example of material flow execution function is in the agricultural industry. In this industry, material flow is used to ensure that the products are available for sale. The flow of material is tracked from the moment it is harvested, to when it is packaged, and finally when it is shipped to the customer. It is important to ensure that all of the products are available when needed, as this can impact the sale of the product.
• Third example of material flow execution function is in the transportation industry. In this industry, material flow is used to ensure that the vehicles are available for transport. The flow of material is tracked from the moment it is purchased, to when it is used in transport, and finally when it is delivered to the customer. It is important to ensure that all of the vehicles are available when needed, as this can impact the delivery schedule.

Advantages of Material flow execution function

One of the main advantages of material flow execution function is that it provides a streamlined production process. It helps to reduce waste and increase efficiency. Below are some of the key benefits of implementing material flow in the production process:

• Improved inventory management: Material flow execution helps to ensure that the right materials are available for production at all times. This can help to reduce the risk of inventory shortages or overstocking, which can lead to cost savings.
• Reduced production costs: By streamlining the production process, material flow can help to reduce the cost of production by minimizing waste and machine downtime.
• Faster turnaround times: By providing materials for production on a just-in-time basis, material flow can help to reduce the time it takes to complete an order.
• Increased customer satisfaction: By reducing the lead time of orders, material flow can help to increase customer satisfaction by providing them with their orders faster.

Limitations of Material flow execution function

The material flow execution function has several limitations that should be considered when developing and implementing this process. These limitations include:

• Resource constraints - The material flow process requires resources such as personnel, machines and materials. The availability of these resources will affect the ability of the process to function properly.
• Time constraints - Material flow requires a certain amount of time and can be complicated if deadlines are not met.
• Cost constraints - The cost of implementing the material flow process must be taken into account. The cost of additional equipment and personnel must be factored in.
• Compatibility issues - The material flow process must be compatible with existing systems and processes. This can be difficult to achieve and may require additional adjustments.
• Limited scalability - The material flow process may not be able to handle large increases in production, as it is designed for small to medium-sized production runs.

Overall, the material flow execution function is an important part of the production process. However, it is important to be aware of the limitations of this process, in order to ensure its successful implementation.

Other approaches related to Material flow execution function

• An effective material flow requires the development of efficient and reliable systems for the procurement of raw materials, the transport of components and intermediate products, the storage of material, the distribution of products and the sale of finished goods.
• Automated inventory management systems are used to ensure that the right products are in the right places at the right times. Systems such as barcode scanning and RFID tags can help to identify and track materials.
• The use of lean production techniques can help to reduce waste and maximize the efficiency of the material flow process. This includes methods such as just-in-time production, 5S, and Kaizen.
• Visibility of information is also important for effective material flow. This means that all stakeholders in the process should have access to up-to-date information about the status of the material flow process.

In conclusion, an effective material flow requires efficient and reliable systems for procurement, transport, storage, distribution, and sale of goods. Automated inventory management systems, lean production techniques, and visibility of information are all important components of an effective material flow process.

Footnotes

Material flow execution function — recommended articles

Dependent demand — Distribution cost — Departmental planning — Optimization of the production run-length — Pull system — Coordinative function of logistics — Material stream — Line balancing — Optimization of transport

References

• An Ch., Fromm H. (2005), Supply Chain Management on Demand. Strategies, Technologies, Applications, Springer
• Bocij P., Chaffey D., Greasley A., Hickie S. (2006), Business Information Systems. Technology, Development and Management for the e-business. The Third Editions, Person Education Limited
• Mabert, V.A. (2007), The early road to material requirements planning. Journal of Op-erations Management25(2), Elsevier B.V.
• Mengersen K. L., Robert C., Titterington M. (2011), Mixtures: Estimation and Applications, John Wiley & Sons, Ltd
• Schouten T. (2018), Material availability planning in a low volume environmenta case study at ASML, Eindhoven University of Technology
• Yahya, T., Riwaydi (2012), The design Model of Environment Management Accounting (EMA) Using Material Flow Cost Accounting (MFCA), (Case Study in PT. Semen Padang), Lacsit Press

Author: Marcelina Rusinek