Development of a Material Requirements Planning Extension Tool for a Multinational Automotive Seating Company

The present thesis addresses the development, integration, and evaluation of an extension tool designed to enhance the capabilities of the existing Material Requirements Planning (MRP) system at Lear Corporation. Conducted in a real-world industrial setting, the study specifically focuses on the AutoTech supplier and aims to provide scalable solutions applicable to other suppliers and plants within Lear Corporation. The development of this tool is driven by inherent limitations in the current MRP system, which struggles to meet the specific needs of daily suppliers with high volumes. The primary goal of this research is to improve the efficiency of material planning processes by reducing time consumption, human errors, and inefficient resource utilization. The MRP Extension Tool comprises two components: one ensures the accuracy of input data, while the other, the Accelerator, addresses logistical challenges by scheduling materials over a ten-day period, subdividing truckloads within a day, and verifying customer demand against capacity. A specialized macro also integrates the tool with the QAD MRP system. Evaluated from February to June 2024, the tool reduced material planning time by 80%, leading to significant labor cost savings and increased capacity for managing multiple suppliers. Planning-related exceptions dropped from an average of 10 per month to 2.33 per month, and special transports due to planning errors were notably reduced. Future activities are proposed to further enhance the tool's capabilities, including the automation of material allocation processes, adaptation for different container types, and extension to other MRP systems used within Lear Corporation. In conclusion, the MRP Extension Tool developed in this thesis significantly improves material planning. This research not only provides practical solutions for current challenges but also lays the foundation for ongoing advancements in supply chain management technologies, aligning with Lear Corporation's commitment to continuous process improvement and innovation.