The Importance of Materials Requirements Planning

2/15/19 3:06 PM

In a manufacturing operation, developing a plan for resources within your operation is a must. Resource planning enables you to manage various areas of your supply chain much more effectively, such as inventory, production, and output. Without raw materials being transferred throughout the supply chain adequately, then this will lead to complications within production such as being unable to fulfill customer orders or either having potential inventory issues.The Importance of Material Requirements Planning This is why materials requirements planning (MRP) is essential within manufacturing operations and can make it much easier for operations to manage orders and organize materials waiting to be assembled. Through materials requirements planning (MRP), the need for for manual materials planning is eliminated and the system is then able to carry out an efficient strategy. MRP has enabled manufacturers to consistently keep up with growing demand, and has led to many benefits within operations.

Benefits of Materials Requirements Planning (MRP)

The benefits of materials requirements planning include the following:

  • Inventory Levels - MRP enables inventory managers to be able to reduce the level of component parts and raw materials inventory. MRP systems work backward from production scheduling, in which it determines the amount of inventory needed to meet overall production demand. Ultimately, MRP manages inventory levels and lowers the amount of cost that is dedicated to holding inventory.
  • Purchasing Planning - This portion of the software pertains to what inventory is needed in order to meet demand. Any information pertaining to how much material is needed in order to meet product demand will help managers plan for any future facilities expansion.
  • Production Planning - Production of finished goods is dependent on availability of raw materials and component parts. MRP is able to identify shortages in inventory times in order that managers can then shift production assets to the manufacturer of other items that have those parts on hand.
  • Work Scheduling - MRP systems are able to provide a concise visual representation of inventory available for the production process. Managers can then use this information to schedule labor to meet needs of the overall process without overstaffing the production line.

Implementing an MRP system can be extremely beneficial to your production facility, but the software is not enough by itself. As manufacturers are looking for ways to enhance production, many are coming to the same solution - advanced planning and scheduling software (APS).

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: Material Requirement Planning


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