In manufacturing, developing a plan for your resources is vital to your operation. Without resource planning, your operation will have a much more challenging time managing various areas within your supply chain such as inventory, production, and output. This is why utilizing a materials requirement planning (MRP) system can efficiently manage materials within production, making it much easier for project managers to order and organize materials waiting to be assembled.
Through materials requirement 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.
Material Requirement Planning (MRP) Functions
Utilizing a systemic approach, the system is able to efficiently keep production up to schedule through data analysis and simple integration. Although the system cannot run a production facility all on its own, it still is able to maintain a steady flow of materials throughout the supply chain through decision-making capabilities. Various functions of an MRP system include the following:
- Inventory Management: Arguably the main objective of an MRP system, the feature is to ensure that materials are available at a moment’s notice. This eliminates the need for manual-entered data and is able to carry out material orders with ease. It also is able to alert the facility when products are ready to be delivered.
- Cost Reduction: In correlation with inventory management, cost is reduced significantly. Through ensuring a steady flow of inventory, holding and untimely-delivery cost are reduced, ultimately bringing more revenue into the operation.
- Production Optimization: Although the main goal of MRP is to oversee and manage materials, it benefits the rest of the system as well. As materials are flowing throughout the supply chain, equipment and employees are able to work at a much faster and efficient rate as well.
Implementing an MRP system can be extremely beneficial to your production facility, but as mentioned previously, the system 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 (APS) with Materials Requirements Planning (MRP)
Advanced planning and scheduling software (APS) can be integrated with an MRP system with ease. Through diverse features, APS software offers as an extension of your MRP system and can efficiently optimize production within your facility. Various features of APS include the following:
- Resource Scheduling
- Schedule Optimization
- Capacity Planning
- Order Management