Manufacturing resource planning, known as MRP, is a system used to plan manufacturers’ resources effectively. It is the point of the decision-making system. The manufacturing process includes different types of integrated domains, and this system centralizes and processes such information. It includes various manufacturers’ data, such as the details of the employees and their financial necessities.
Enterprise resource planning (ERP) was invented from the concept of both MRP I and MRP II. It is used mainly by manufacturers to integrate different domains of the business. An ERP management information system can include various disciplines like planning, marketing, purchasing, sales, inventory, finance, and human resources. Its uses are mainly bounded as software. Many applications have been invented till now but adapting the idea of ERP.
The Concept of Manufacturing Resource Planning-
MRP is a system used to make a noteworthy plan of the resources. It also helps to make a fruitful production schedule by using the maximum resources and also looks after to minimize the cost of production.
A sales forecast helps to get an idea of the expected demand for the product. Using such a forecast, the manufacturers can get the actual amount of raw materials. Quantity, quality, and expected delivery time can also be forecasted. The number of labor and machines needed to be involved can also be cased. Fabricating asset arranging shows up at the ideal request amount and recurrence for unrefined substances by adding the typical use for an arranged renewal lead time with the security stock. It is expected to safeguard against stock-outs.
What is MRP II?
The evolution of MRP II gets back to 1980 when there was a need for software for an accounting system. MRP I was already there for forecasting manufacturing details, but MRP II includes accounts and makes a forecast about the requirements. It is a computer-based system that provides real-time schedules using data, raw materials, and labor availability.
MRP II is used as an extensive comprehensive system of ERP. It also extends the spectrum of MRP I. MRP II is now used widely to improve productivity. The actual cause of inventing MRP II is to collaborate between account system upcoming requirements. The invention of MRP II fulfilled this necessity.
How Enterprise Resource Planning Is Different From MRP?
ERP or Enterprise Resource Planning is invented to collaborate data with all spheres of business processes. Unlike MRP I and MRP II, ERP is a more complicated and popular system than the previous two. It integrates manufacturing data or account system and the whole manufacturing process. Most importantly, it looks after the relationship between customer and producer, which is the best of any company.
Difference Between MRP I and MRP II
- MRP II has evolved to replace MRP I. MRP II involves all the functionality, including production schedule and inventory tracking, unlike MRP one.
- MRP II works as a kind of human resource for the manufacturer. It gives a holistic view of the availability of machines and labor.
- The forecasting power of MRP II is much more effective than MRP I. The operating system is also straightforward; entering the data into the system will show a downstream effect. It also provides feedback on the whole procedure, which isn’t available in MRP I.
This is a brief view of MRP I and MRP II. MRP I was used previously, but with time MRP II evolved, which suppressed the II and was invented as a variable for accounts. Still, it now represents a holistic view of the company’s operating systems and abilities. MRP II is still used in many manufacturing companies as it can include every sphere, from human resources to customer relationship management.
