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Abstract
Edbro plc is o medium-sized manufacturer of hydraulic rams, and the company has made many investments in advanced manufacturing technology (AMT), including shop floor data collection to provide closed-loop MRP. In the factory AMT has resulted in islands of automation and the company now wishes to integrate these islands using automated guided vehicles (AGVs).
The case study relates to transforming a process-oriented approach into a product form of organization with respect to material flow in the system. The paper gives an analysis of the constraints which traditionally generate process forms of material flows within an MRP production planning and control system. It also shows that in the case of Edbro plc, a functional layout of facilities, and complex part routings using MRP, does not give sufficient financial benefits to justify the use of AGV units to assist the material handling system. Conversely, when the organization of material flow is based on a product principle, then the correct usage of AGVs brings a financially attractive, and well-integrated solution to meeting consumer delivery needs.