MRP stands for two related terms: Material Requirements Planning (MRP), a software-based manufacturing inventory control/production planning system; and Manufacturing Resource Planning (MRP II), a planning method for all of the manufacturer's resources. Manufacturers must have an effective plan to get their products to the customer as quickly as possible.
There are the top three uses of the MRP resources for small manufacturers:
- To control and plan the types and amounts of materials they produce.
- To ensure that all products meet the customers' demands for the product, the customers' deadlines, and at an inexpensive cost.
- To plan an expedient and growth-driven accounting process.
Inputting info for output schedulesMRP software means you input the master production schedule, inventory status records, bills of materials, and planning data, then you receive the output of recommended production and purchasing schedules.
Double-check your numbersRemember, the dependability of your outputs depends on the accuracy of your input numbers and information. Take the extra time to train your employees to ensure their attention to detail.
Combine the best MRP with the best employeesMRP is not without its downside, because it's only as accurate as the people who input the data. Ensuring accurate data entry is vital to its success.
Use all of your resources for planningMRP and MRP II are only two ways to control product output. Make sure you have appropriate provisions to accommodate your resource requirements, including sales goals that fit, vendor relationships, ability to foresee inventory shortages, audits, accurate cash flow estimations, and quality control enforcement and inspection.
- Don't get confused: MRP is not the same as ERP, which is enterprise based planning, and designed for the Big Manufacturers.
- Use just-your-size solutions: MPR is not just for the big manufacturers anymore. Today's small business can get MRP software for a reasonable price and in a practical application designed for a simple PC.
- Make sure materials are available: Before you plan to use materials, ensure that they're on hand for production.
- Find the best solution: MRP that allows you to track raw materials, sub-assemblies, and completed assemblies.