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The European Journal of Applied Economics

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2406-2588
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Project Scheduling Method with Time Using Mrp System – A Case Study: Construction Project in Libya / Metoda Planiranja Projekata U U Funkciji Vremena Korišćenjem Mrp Sistema – Studija Slučaja Građevinskog Projekta U Libiji

Abdallah Ali Imetieg
  • Corresponding author
  • Singidunum University, Department for Postgraduate Studies, Ph.D Candidate 32 Danijelova Street, Belgrade, Serbia
  • Email:
/ Miroslav Lutovac
  • Singidunum University, Faculty of Tehnical Sciences 32 Danijelova Street, Belgrade, Serbia
Published Online: 2015-05-09 | DOI: https://doi.org/10.5937/ejae12-7815

Abstract

Materials Requirements and Planning (MRP) is a system of production planning and inventory control, which is used to manage manufacturing processes. Most MRP systems are software-based and are used to ensure that the materials are available for production, that the products are available for delivery to customers, that the lowest possible material and product level is maintained in store, as well as to plan delivery schedules and purchasing activities. Upon completion of scheduling, begins the process of follow-up, which includes the achievement of the project goals in terms of quantity, quality and costs in accordance with deadlines. MRP system was applied to project of 5000 housing units in Solug area, which is close to Benghazi city, Libya, with the aim to provide necessary cash flow to pay dues on time without delay to all involved project sub-contractors and material suppliers, to ensure the smooth flow of operations, as well as to diminish costs by reduction of temporary storages and rented areas. There is a correlation between time and cost of each activity. If the required time is shorter than the scheduled time of the certain activity, it would demand more resources, which further leads to the increase in direct costs of the given activity. Therefore, the output of MRP is important since commands are issued through planning in order to launch the suggested orders with the required quantities and within the limited time period.

Rezime

Sistemi za planiranje materijalnih potreba preduzeća (MRP) su sistemi koji omogućavaju efektivno planiranje proizvodnje i kontrolu zaliha, a koji se koriste u upravljanju proizvodnim procesima. Većina ovakvih sistema bazira se na softverskim rešenjima. Njihova funkcija jeste da obezbede raspoloživost materijalnih resursa za proizvodnju, dostupnost gotovih proizvoda klijentima, kao i minimalno zadržavanje zaliha u magacinima i radnjama, a sve to za potrebe planiranja rasporeda isporuke i aktivnosti nabavke. Nakon izrade rasporeda slede aktivnosti koje bi trebalo da ispune očekivane projektne ciljeve u smislu količine, kvaliteta i troškova u skladu sa vremenskim rokovima. MRP sistem primenjen je na projektu od 5000 stambenih jedinica u Solug oblasti u blizini grada Bengazi u Libiji, sa ciljem pružanja neophodnog novčanog toka kako bi se isplatili svi podizvođači na projektu bez odlaganja i osiguralo nesmetano poslovanje i izbegli nepotrebni troškovi smanjenjem broja privremenih skladišta i iznajmljenih prostora. Postoji korelacija između vremena i troškova za svaku aktivnost. Naime, ako je potrebno vreme za određenu aktivnost kraće od planiranog, to će zahtevati veću količinu resursa, što dovodi do povećanja direktnih troškova date aktivnosti. Učinak MRP sistema je od velikog značaja zato što se naredbe izdaju kroz planiranje kako bi se pokrenule očekivane nabavke prema zahtevanim količinama u ograničenom vremenu.

Keywords: Materials Requirements and Planning (MRP); cost; quality; scheduling process; project management; Libya

Ključne reči: Sistemi za planiranje materijalnih potreba preduzeća (MRP); troškovi; kvalitet; raspored; upravljanje projektom; Libija

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About the article

Received: 2015-02-10

Accepted: 2015-04-15

Published Online: 2015-05-09

Published in Print: 2015-04-01


Citation Information: The European Journal of Applied Economics, ISSN (Online) 2406-2588, DOI: https://doi.org/10.5937/ejae12-7815.

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© by Abdallah Ali Imetieg. This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License. BY-NC-ND 3.0

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