Manufacturing Resource Planning (MRP)

What is Manufacturing Resource Planning?

As the name suggests, Manufacture resource planning meaning refers to the process of planning your resources for effective management. Basically, it is the information system that is specifically designed to manage information about the Manufacturing resources, cost, designs, engineering, and more. Manufacturing resource planning is the upgraded version of the material requirement planning. The former can be defined as the centralized system that holds a significant amount of manufacturing data, including employee’s details and the business’ financial requirements.

MRP II has evolved into the Enterprise Resource Planning (ERP) software, which is used to automate the management and manufacturing operations. ERP system focuses on resource planning, production, cost, shipping, inventory, employees, sales, and other aspects of management. MRP II and ERP are automated software applications that are designed to Handle data and streamline management operations.

How Does the MRP II Help the Manufacturing Industry?

Manufacture resource planning is a machine-based solution that is mainly used to develop the production schedule. The system needs real-time and accurate data to help streamline the manufacturing process. Gone are the days when MRP II was used widely across the manufacturing Industry. Today, it is considered as a module of the enterprise resource planning software.

MRP I was the first software solution that automated the productivity and management for large-scale corporations. It is the sales-forecast solution that can coordinate the production of the Raw Materials with the available resources and labors. During the 1980s, producers and people working in the manufacturing industry realized the importance of an automated software system that featured Accounting solutions. That’s when the manufacturing resource planning software solution was launched. The system had a broad Range of features (in addition to the functions offered by the MRP I). It was seen as an extension to the material requirement planning.

MRP II Vs MRP I

MRP II was the replacement of the MRP I solution in many ways. It had all the functionalities of the material requirement planning system as well as additional features, such as inventory forecasting and accounting modules. Manufacturing resource planning helps the manufacturers with marketing, finances, billing, inventory, sales forecast, logistics, cost of production, and more. The MRP II software system had both machine and personnel’s operating capacity.

The main features offered by the material requirement planning software were inventory forecasting, production scheduling, and bills of materials. MRP II, on the other hand, has all the features of this software with additional functions. It offered quality assurance, accounting and finance, demand forecasting, and more. The MRP I and MRP II software apps still have a high demand in the manufacturing industry. The manufacturer can use this software system as a stand-alone app or as a module of the ERP. Either way, this automated manufacturing software system can help you with forecasting, inventory tracking, sales management, and other operations. It can automate a wide range of management tasks seamlessly.