Effective synchronization of MRP to production during a lean transformation

Abstract

Raytheon - Network Centric Systems (NCS) division develops and produces mission solutions for networking, command and control, battlespace awareness, and air traffic management. The facility in Largo, Florida, produces radios and their associated equipment for programs in the NCS division. The Largo facility uses traditional Material Resource Planning (MRP) systems to drive supply chain and production output. This push system runs directly against lean principles of flow and pull during Raytheon's continuous lean improvements. This tension makes the lean transition difficult for all aspects of the business. This thesis specifically examines the reduction in throughput variability that comes with lean controls and shows that the lean principles of flow, pull and pursuit of perfection help MRP be more accurate by providing the stability required for the MRP system. This is especially important during the transition between a classic MRP push system and the more efficient use of material planning available in a lean organization. Results of the alignment between operations and MRP include lower lead times, lower inventory and lower cost production. This thesis also explores the fundamental cultural, structural and political issues with implementing certain lean changes and the effects of these issues on variability of the system.