MRP (or material requirements planning) is a system – either software-based or pen-and-paper – that is a central component of production planning, scheduling, and inventory. An MRP system is often part of a larger enterprise resource planning (ERP) system and is responsible for of the production planning process. MRP is most frequently executed as part of the manufacturing process.
WHAT WILL AN MRP SYSTEM DO?
MRP operate on a few key objectives. They strive to ensure materials are available for production, including meeting a critical timeline, delivery objectives, and understanding shelf life. Second, they aim to ensure that these materials are ready for delivery to customers. Third, MRP maintains the lowest possible inventory level of material, components and product levels to guarantee lower cost, maximum efficiency and stability. Finally, MRP software assists in production planning, manufacturing processes, delivery schedules, and purchasing activities.
CRITICAL QUESTIONS
MRP most clearly help solve these questions:
- What items are required?
- How many are required?
- When are they required?
- Can the demand be met?
REQUIRED DATA FOR SETUP
The first step in setting up a complete MRP, is to input the necessary requirements data. From there, the system analyzes and standardizes the data, automating the process. You will need to know the finished good, production quantity vs. order quantity, delivery targets, inventory statuses, routing and processing , , quality & testing standards, lead & lag time, and possibly lot sizing techniques or scrap percentages. This may seem like a lot of setup work, but intelligent MRP software will be able to guide you through the automation process with ease.
Ready to learn more about how you can reduce cost, improve lead times and customer satisfaction all through automation with material requirements planning software? Contact an SMe Software MRP expert today by visiting www.SMARTerManager.com or calling (877) 762-7766.
