There are many advantages of implementing an MRP system; here are a few of them:
• MRP enhances productivity
• Eliminates inefficiencies
• Increases customer responsiveness
• Reduces Raw Material Inventory
The right Material Requirements Planning program can provide major time-saving benefits. Free up your human resources for more profitable tasks by enabling improved resource control. Choosing the appropriate software can make a massive difference in the efficiency of your manufacturing processes
MRP is a systematic approach to management and planning that allows manufacturers to develop production plans and order materials as required by the plan.
MRP leverages planning and management to minimize the amount of cash invested in the manufacturing process at any given time. Keeping unnecessary inventory on hand is expensive and inherently wasteful. MRP helps you avoid costly overstocks. Conversely, inventory shortages can stop the manufacturing process and lead to employees being sent home or working on other less productive tasks. MRP solves these issues by ensuring the proper materials are always on hand.
Material Requirement Planning programs provide a time-dependant picture of future requirements. Automated planning of material requirements allows you to consistently meet customer due dates..
The MRP process, in a simplified form, takes the following shape:
1. The sales department provides reports forecasting future orders.
2. The forecasted data is integrated with information regarding orders already in-process.
3. The Bill of Materials module is consulted to determine raw material requirements.
4. Purchase orders are scheduled using the following criteria:
• Preferred vendor information
• Delivery time considerations
• Pricing
5. The master production plan is scheduled.
6. The production plan is executed.