Advantages and Disadvantages of MRP and MRP II

12/10/18 12:43 PM

In the past, resource planning was a much more complex task that called for manual information input by project managers. For many of these manufacturing operations, these resources were categorized as employees, equipment, facilities, and materials. As technology has advanced through the years, MRP has become a much more simple and strategic process in proper resource management. Advantages and Disadvantages of MRP and MRP IIThese advancements in technology have allowed project managers to effectively manage resources through visual and automatic production scheduling. Whether you are using Material Requirements Planning or Manufacturing Resource Planning (MRP II), it can bring a substantial amount of benefits to your manufacturing operation. Before implementing MRP or MRP II, there are various disadvantages and advantages associated with the software.

Advantages of MRP and MRP II

The advantages of MRP and MRP II include the following :

On time availability of materials needed for production

Little excessive inventory (reduced greatly)

Delivery times are enhanced dramatically

Optimal utilization of manufacturing resources

Business data collection for analysis and optimized planning

Disadvantages of MRP and MRP II

While MRP is beneficial to all manufacturers, it is more suitable for make-to-stock manufacturers

MRP requires clean records and precise data entering

While make-to-order manufacturers benefit from this software, it only benefits them to the extent where their production lots are medium to large and the product does not vary much

Advanced Planning and Scheduling Software

Advanced Planning and Scheduling (APS) software has become a must for modern-day manufacturing operations due to customer demand for increased product mix and fast delivery combined with downward cost pressures. APS can be quickly integrated with a ERP/MRP software to fill gaps where these system lack planning and scheduling flexibility and accuracy. Advanced Planning and Scheduling (APS) helps planners save time while providing greater agility in updating ever-changing priorities, production schedules, and inventory plans.

Create optimized schedules balancing production efficiency and delivery performance

Maximize output on bottleneck resources to increase revenue

Synchronize supply with demand to reduce inventories

Provide company-wide visibility to capacity

Enable scenario data-driven decision making

Implementation of Advanced Planning and Scheduling (APS) software will take your manufacturing operations to the next level of production efficiency, taking advantage of the operational data you already have in your ERP.

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Topics: MRP

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