by Kim H Pries
When we are engaged in prototype development during the early to late middle phases of our new product delivery process, we usually purchase components through maintenance, repairs, and operation (MRO) purchasing. This type of purchasing is managed on an as-needed basis, and often, is not automated. We purchase the parts we need in relatively small quantities because we are not yet in production. At this point in our process, this approach is reasonable and effective. The part cost is high but we are not at risk of having any parts we need to throw away.
As we move through the process, however, we reach a point where we begin to transition from prototypes to sellable products. For these products, we most commonly use manufacturing resource planning (MRP) purchasing, which is nearly always automated. As developers, we have seen huge discontinuities in delivery when shifting from MRO to MRP purchasing. MRP purchasing has some different characteristics:
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