Enhancing Lean Concept in precast concrete manufacturing with advanced Material Requirements Planning System

Companies operating in the construction industry, like many other companies in the manufacturing industries, in order to maintain their position on the global market, optimize inventories and the production processes. The need to minimize costs and maximize profits from manufacturing, while maintaining a high quality of products means that the "Lean manufacturing" concept must be implemented in all departments of the precast concrete production company. Delivery of prefabricated elements to construction sites is currently carried out based on detailed delivery schedules. These conditions mean that the "Just in time manufacturing" methodology is implemented in the precast concrete production companies. The high costs associated with the need to maintain stocks and resulting from the cost of creating the inventory and cost of maintaining the inventory are certainly not without significance. Achieving these goals is not possible only through detailed production planning, accurate cost determination, better use of storage and manufacturing infrastructure and forecasting sales volumes. In this case, considering the current reduction of inventories, accurate determination of delivery times of raw materials and semi-finished products is also important. The purpose of this paper is to present the method of planning material requirements for precast concrete manufacturing plants based on the MRP (Material Requirement Planning) system. © 2018 The Authors. Published by Diamond Congress Ltd. Peer-review under responsibility of the scientific committee of the Creative Construction Conference 2018.