MRP II Key Terms

Learn about the components and terminology of an MRP II system

Manufacturing resource planning (MRPII) is a non-proprietary system for planning all the resources needed in a manufacturing environment. It integrates multiple elements into one unified and interconnected process. A high-quality MRPII requires long-term commitment from upper management and ongoing modification by users in order for it to function efficiently and effectively.

An MRPII system incorporates modules from virtually every function in a factory, from master production scheduling to document management and bill of materials. As you research MRPII, there are some acronyms and terms you will want to understand.

Master production schedule (MPS)

A master production schedule is a plan that includes everything necessary for production, including materials, staffing and inventory. The plan includes how much time it will take to complete essential processes, parts that will be required and any other resources that will be needed to optimize production. An MPS is a critical module within an MRPII system.

Capacity requirements planning (CRP)

Capacity requirements planning refers to the process of determining the factory production capacity necessary to make products and meet demand.

Material requirements planning (MRPI)

Material requirements planning is another module you will find within an MRPII system. It ensures that materials and products are available for production, while also managing inventory and planning purchasing activities.

Distribution resource planning (DRP)

Distribution resource planning is a method for planning orders within a supply chain. It enables the users to set parameters for inventory control and also to calculate time-phased inventory requirements. DRP is a key module included with MRPII software.

Document management system (DMS)

A document management system is another feature you will find in MRPII. A DMS tracks and stores electronic images of paper documents that are needed in a manufacturing environment.

Bill of materials (BOM)

The bill of materials is a list of everything needed in a factory to create a final product. A BOM is broken down by assemblies, sub-assemblies, components, sub-components, parts and the necessary quantities of each.

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