MRP software

What is MRP? In this page, you are going to learn what it is and how you can benefit from using MRP software.

What is Manufacturing Resource Planning?

Manufacturing Resource Planning or MRP can be defined as the method for efficient planning of the entire resources of a certain manufacturing corporation. Preferably, MRP deals with operational preparation in units, economic planning, and it comes with a simulation ability to reply “what if” inquiries and the extension of a closed-loop MRP. It is not entirely a software task but it’s about the supervision of people expertise and it demands a commitment to database accuracy, as well as in adequate computer resources. This is an entire company management notion for applying company and human resources more effectively.

Major Features and Functions

MRP II isn’t a proprietary software system so it could take different forms. It is nearly unfeasible to envision a MRP system that is not using a personal computer. However, this system may be based on in-house or purchased-licensed software. Almost each MRP system is modular in creation. Characteristic fundamental modules in the MRP II system are:

  • Item master information or technical data
  • Master production schedule or MPS
  • BOM or Bill of Materials (technical data)
  • Fabrication resources data (industrialized technical data)
  • Orders and inventories (inventory control)
  • Material requirements planning or MRP
  • Purchasing supervision
  • SFC or shop floor control
  • Standard costing (rate control)
  • Capacity preparation or CRP (capacity requirements planning)
  • Standard costing (rate control)
  • Cost management or reporting (cost control)

Together with support system like:

  • Lot traceability
  • Business preparation
  • Contract management
  • Engineering rate control
  • Tool management
  • Configuration management
  • Sales forecasting and analysis
  • FCS or Finite capacity scheduling

And linked systems like:

  • Accounts billed (purchase ledger)
  • General ledger
  • Accounts receivable (sales ledger)
  • DRP or distribution requirements planning
  • Sales order supervision
  • Automated warehouse supervision
  • Technical records
  • Project management
  • Computer-aided design or computer aided manufacturing
  • CAPP
  • Estimating

The MRP II system assimilates all these modules as one so that the modules will employ common data as well as the freely exchange data, in a way how the industrialized enterprise can and must operate. Therefore, the approach of MRP II is very dissimilar from the so called point solution approach in which individual systems should be deployed so as to help a company in planning, controlling or managing an activity. For a company that plans to incorporate its other sectors with its manufacturing supervision, ERP software is important.

What are Advantages of Using a MRP System?

A MRP II system can give:

  • Improved control of inventories
  • Enhanced scheduling
  • Productive relationships w/ suppliers

For engineering or design:

  • Enhanced design control
  • Improved quality & quality control

For costing and financial:

  • Decreased working capital for inventory
  • Better cash flow over faster deliveries
  • Precise inventory records

MRP II systems were applied in different manufacturing industries. You may find some industries require specialized functions in regulated manufacturing like food and pharmaceuticals. Other industries could afford to ignore the facilities needed by others.

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