BusinessDictionary.com defines MRP (materials requirements planning) as a, “Computerized ordering and scheduling system for manufacturing and fabrication industries, it uses bill of materials data, inventory data, and master production schedule to project what material is required, when, and in what quantity.”  This process, now automated, has been a basic component of the manufacturing industry since the first human carved out a wheel and figured out that it needed a mate.

Materials Requirements Planning Software

MRP Software, better than an abacus

That manufacturer knew that in order to produce the other wheel it was necessary to accumulate the component parts and materials before that part could be made. And, if it had been agreed that the wheel maker would make some for his neighbor in exchange for meat or a service, additional materials would have to be acquired in a timely fashion taking in to account how much time was needed to make the wheel(s) and deliver the item/s by the agreed upon date.

So the core process remains the same but the means by which each step is managed and recorded has changed in tandem with technology advancements through the years.  The computer long ago took the place of the abacus and manual ledger. Transactions and planning in a manufacturing environment occur with the help of MRP software.  MRP software packages focus primarily on manufacturing operations while ERP (enterprise resource planning) solutions are more generalized (and more expensive) business software systems.

Process and discreet manufacturing operations use MRP systems to run their operations. Process manufacturing is recipe or formula based manufacturing involving liquid materials – the end product cannot be broken down into its component parts and reconstructed. Good examples of process manufacturing would be food and beverages, paint, dyes and pharmaceuticals. Discreet manufacturing is virtually everything else – toys, cars and so on – if they were to be disassembled, it would be possible to break them down into the component parts.

MRP software can be highly specialized for formula based manufacturing or general in nature. MRP software stores production schedules, BOMs (Bills of Material), supplier information and other data to facilitate the order, production and delivery processes. Fulfillment of orders, receipts, material handling and inventory information can all be processed through the MRP system.  

In addition, modern MRP systems are expected to interface with the Internet.  Often, customers and suppliers have dedicated portals set up to allow them to check the status their order for greater efficiency.  So, depending upon configuration and customizations, the customer or vendor can be provided with a snap shot of their account and/or order any time they need one.  In addition, account details can be viewed and billing issues addressed or questions answered with greater expediency.

In the right hands, an abacus was once the tool of innovation but as is the tendency of humankind there is always a better mousetrap to become the next greatest thing. At its core, manufacturing and planning remain the same, however, the tools with which the job is done evolves as humans evolve in knowledge and technology. Materials resource planning software is the latest and the greatest development for the process and discreet manufacturing industries.