Basic Concepts of Materials Requirements Planning (MRP)

6/11/19 10:30 AM

Within manufacturing, developing a plan for your resources is essential for your manufacturing operation. Without proper resource planning, your operation will have a much more challenging time managing various areas within your supply chain such as inventory, production, and output. Utilizing a materials requirements planning (MRP) system can efficiently manage materials within production, ultimately making it much easier for project managers to order and organize materials that are in need of being assembled.

Basic Concepts of Materials Requirements Planning (MRP)

Through adequate materials requirements planning (MRP), the need for manual materials planning is eliminated and the system is able to successfully carry out an efficient strategy. MRP has become a vital component in allowing manufacturers to keep up with a consistently growing demand. MRP software can easily aid your manufacturing operation, but it is essential to understand the basic concepts of materials requirements planning (MRP). Therefore, within this blog we will discuss the basic concepts of materials requirements planning (MRP).

Basic Concepts of MRP (Material Requirements Planning)

Before implementing the software, taking a look at the basic concepts is a must. Therefore, here are the basic concepts of materials requirements planning (MRP):

  • Lumpy Demand - Manufacturing is frequently completed intermittently in lots or models of one or the other kind. Components or parts of a finished product are only required during the manufacturing of a product. Ultimately, this means that there could be a substantial amount of demand for inventory occasionally and none at other times, which may make the demand “lumpy”. When demand comes in large gaps, it is categorized as lumpy demand. MRP plays a rather large role in dealing with lumpy demand-driven inventory situations.
  • Lead Time - The amount of time that elapses between the start and completion of a product is a lead time. Lead time is examined closely within manufacturing, supply chain management, and project management, as many companies want to reduce the amount of time that it takes to deliver products to the market. In business, lead time minimization is preferred.
  • Time Phasing - This signifies adding time schedule to material inventory position by recording and storing details on either planning periods or particular dates, with which the relevant quantities are linked. These details could be expanded by incorporating data on demand and availability of materials.

A software that can easily aid with the concepts of materials requirements planning (MRP) is PlanetTogether’s Advanced Planning and Scheduling Software (APS). Advanced Planning and Scheduling Software (APS) is a visual production planning software that allows manufacturers to easily view their production process as a whole. The software offers various features such as finite capacity scheduling, gantt drag and drop, what if scenarios, and more. Advanced Planning and Scheduling Software (APS) has become a must for manufacturers around the globe that are seeking to boost efficiency within their manufacturing operation and take their production facility to the next level. Advanced Planning and Scheduling Software (APS) can easily be implemented into manufacturing operations around the globe.

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: materials planning


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