ERP Software

MRP Planning Software

MRP stands for Materials Requirements Planning or Manufacturing Resource Planning. It is not unusual for these two to be confused, but in reality they are quite different from one another.  MRP Planning Software is primarily an inventory management and production planning system used extensively within the manufacturing industry to manage specific manufacturing processes. This type of software is a critical technological asset for companies in the manufacturing industry. Ultimately, MRP Planning Software determines what assemblies must be built and what materials must be purchased, and when, in order to have the right number of finished, quality products on hand by the dates requested by customers.

Manufacturing Resource Planning Software, on the other hand, is designed to integrate all production data in order to make a manufacturing plant run more efficiently, accelerating productivity and increasing profit. The goal of Manufacturing Resource Planning software is a bit closer to ERP software in that it makes the flow of information between all business functions a smoother and easier process.

Manufacturers all tend to face the common problem that customers want, and often need, products to be available in a shorter time than it typically takes the manufacturer to make them. A business that purchases too much of a particular item used in their manufacturing process, or buys the wrong item, will end up suffering economically because they will be unable to meet contracts to supply products by an agreed date or price. This is true regardless of the types of products being manufactured.

There is no question that avoiding these problems requires a lot of pre-planning and follow-up problem solving for a manufacturer, which is why Manufacturers use MRP Planning Software to help them plan purchasing cycles, calculate material requirements, and coordinate personnel and machine workloads. To be totally successful, however, the material resource planning software requires accurate inventory information, bill of materials detail, and master production schedules.  Therefore, a huge concern with any MRP Planning Software is the integrity of the data that was entered into the system.

MRP Planning Software also provides many other benefits, and some of them are crucial. For example, its ability to: reduce inventory held in storage by allowing items to be ordered as needed; eliminate production idle time with better planning of schedules; improve customer satisfaction by shortening order times; forecast possible inventory shortages before they occur; and, automate the creation of shop floor plans, work orders, and purchase orders.

Written by :

Amy Cruz