Education 101: MRP

MATERIALS REQUIREMENT PLANNING

mrp

 

An MRP system entails a computer _ based system used to synchronize the supply of material, components and subassemblies with production planning and scheduling so that inventory may be limited to the absolute minimum.

Definition: An MRP system is a computerized information system that integrates the scheduling and control of materials through logically related records, procedures and decisions rules with the master production schedule _ (MPS) into time phased net requirements for each inventory item.

The MRP system uses planned production to determine what and how much should be ordered, when to order and on what date delivery should take place.

MRP 1 INPUTS

The following inputs are essential for the successful implementation of materials requirements.

  • A master production schedule (MPS) ; this specifies the firms requirements for final products by time period
  • A bill of materials (BOM); this is for each final product in the MPS which defines the components that the final assembly process needs to complete that product.
  • Inventory status file; this provides information on the status of all incoming components.
  • The planned lead time of every process required. These represent the real time needed to produce a product.

CHARACTERISTICS OF MRP1 SYSTEM

  • It uses electronic data-processing equipment to calculate in advance the inventory requirements for a particular period.
  • Inventory holding is reduced to a bare minimum by synchronizing materials flow and production scheduling
  • The MRPs is guiding tool for MRP System
  • The demand for materials can be calculated by means of MRP system which is more reliable than forecasting
  • The MRP system eminently suited to the supply of production materials in enterprises.

NOTE:

MANUFACTURING RESOURCE PLANNING (MRPII)

MRPII has been defined as a system built around materials requirement planning and also including the additional planning functions of production scheduling and capacity requirement planning

MRP II has wider implications than materials requirement planning. MRP II is concerned with virtually any resource entering into production including manpower, machinery and money in addition to materials. The development of the MRP system into MRPII system has produced a useful aid for the entire management of business.

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