ERP Software

MRP Software Systems

Businesses that need answers to questions such as:  What items are required?  How many are required? and, When are they required? -need to implement an MRP Software System.

MRP, or Material requirements planning, is a production planning and inventory control system used to manage manufacturing processes. The purpose of MRP Software Systems can be divided into three general areas: to ensure materials are available for production so that products can be available to be delivered to customers; maintain the lowest possible level of inventory while still accomplishing the above, and plan manufacturing activities, delivery schedules, and purchasing.

A business that does not have a production plan in place operates with the constant risk that too many raw materials have been purchased, or perhaps the wrong materials were bought, or possibly the company will not have enough materials on hand to complete an order promptly. It also sometimes happens that the materials bought have an expiration date and that day comes before the material can be utilized. These are all costly risks; not only in terms of money spent and wasted, but in terms of customers and possibly even future customers lost.

In addition to materials planning, MRP Software Systems also help plants run smoother in other ways.  MRP can answer the question of when production for a certain order should begin. Starting too early may leave a manufacturing plant with product no one wants while starting production too late may result in missed order deadlines. Planning materials and production cycles correctly will also mean that employees on the payroll are working and that overtime will not have to be added to the production cost.   

MRP Software Systems work by taking all of the following data into account before calculations and forecasts are made: end items being produced, sometimes called the Bill of Materials; how much is required at a time; how much is required at a time; time when the quantities are required to meet demand; shelf life of stored materials; inventory status records that include numbers of net materials already on hand and materials on order from suppliers; details of the materials, components and sub-assemblies required to make each product; planning data such as routings, labor and machine standards, quality and testing standards, pull/work cell and push commands, lot sizing (fixed, lot-for-lot, economic order quantity), scrap percentages, and other inputs.

Businesses looking for an MRP Software System would do well to first decide which areas of the company’s processes need to be managed better because it is always better to find software customized, as much as possible, to fit specific needs.

Written by :

Amy Cruz