Failure to plan is planning to fail is quite a common phrase in our day-to-day lives. MRP, an acronym for Manufacturing Resource Planning software was the first genuine attempt to bring various software tools, like materials forecast to actual manufacturing techniques. MRP software is often considered to be a subset of the enterprise resource planning. It often covers the period from when a product is made, raw materials shortlisted and purchased, resources are pinpointed, to when production is actually planned. After this, manufacturing execution systems then take over. Check out here the basic functions of MRP software are; production forecasting, inventory procurement and control, material costing, process scheduling applications, and procurement schedules.
Of all other functions, material costing is usually the main function. It determines what is manufactured versus what was actually bought. Material costing often works with an inventory system so as to look at the quantities at hand as well as lead times for any parts that should be ordered. In addition, production logs are also checked so as to establish the lead times for the fabrication of any sub-assemblies.
Statii suggest many benefits of MRP Software
Whether incorporated in other systems or used as a stand-alone system, MRP software provides an array of benefits as compared to the less formal manufacturing planning systems.
1. Better Resource Allocation and Planning
One great strength about MRP software systems is that they provide better data as well as greater insight into the real costs of your inventory, labor and equipment, and the exact time costs for every step of the planning and manufacturing process.
2. Greener Operations
Better tracking and planning of manufacturing processes results in operations which generate less crap and less waste, consequently minimizing the environmental impact of organizations that utilize these systems. In addition, since most of the documentation is stored electronically, there is reduced waste paper.
3. Integration With Some Accounting Systems
The primary function of MRP software is to decide what you should purchase and when you should do it. Integrating such software with the general inventory will make it easier for any company to keep track of their inventory costs and also determine lead times.
While MRP software could be beneficial in many industrial applications, the truth is that it also has limitations which could result in problems if not properly addressed. Planning is often based on possibilities and thus ignores current limitations. The resource and inventory planning are mostly based on assumptions that all things are running as expected. As such, care should be taken so that there is no over-allocation of resources.