Manufacturing Resource Planning (MRP II) is a comprehensive, integrated information system designed to help businesses centralize, integrate, and process data for effective decision-making in scheduling, design engineering, inventory management, and cost control.
The Evolution of MRP II
Born from the early Materials Requirement Planning (MRP) systems, MRP II added integration aspects such as accounting and forecasting, evolving into a holistic tool central to effective manufacturing operations. Both MRP and MRP II serve as precursors to today’s extensive Enterprise Resource Planning (ERP) systems.
Understanding Manufacturing Resource Planning (MRP II)
MRP II is a computer-based system that creates detailed production schedules using real-time data. It assures that component materials arrive just in time when machines and labor are ready.
Key Takeaways
- Integrated Information System: MRP II enhances business control over scheduling, inventory, and cost management.
- Evolution from MRP: Extends the functionalities of Materials Requirement Planning systems.
- Foundation for ERP: MRP and MRP II pave the way for complex ERP systems widely used today.
The Transition from MRP I to MRP II
Initially, Materials Requirement Planning (MRP I) leveraged sales forecasts to schedule raw material deliveries and identify labor and machine requirements. By the 1980s, the need for more comprehensive software to integrate accounting and inventory forecasting led to the development of MRP II.
MRP II Software in Action
Some popular MRP II software solutions include:
- IQMS
- Fishbowl
- FactoryEdge
- Prodsmart
- abas
- Oracle Netsuite Manufacturing Edition
- Epicor
- S2K Enterprise
Comparing MRP I and MRP II
MRP II effectively supplanted MRP I by offering additional capabilities such as:
- Machine Capacity Scheduling: Ensures optimal use of manufacturing resources.
- Demand Forecasting: Enhances precision in predicting market needs.
- Quality Assurance: Integrates QA processes to maintain product standards.
- General Accounting: Merges financial functionalities, offering a holistic view of business health.
Due to these extended features, MRP II offers a simulation capability, allowing businesses to explore different scenarios and see their implications comprehensively.
MRP II and ERP Systems
While MRP II remains widely used, it’s often incorporated within broader ERP systems encompassing diverse functionalities beyond manufacturing, including human resources, customer relationship management, and enterprise asset management. These comprehensive ERP suites are the successors to MRP II systems, further pushing boundaries of what integrated information systems can accomplish.
Related Terms: ERP, Materials Requirement Planning, Inventory Management, Productivity, Human Resources.
