Leveraging Manufacturing Productivity With MRP/ERP/MIS

MRP and MRP II

Two things define MRP. In a manufacturing environment, it can refer to computer application software, or Material Requirements Planning. It is then simply referred to as MRP. The software assists in material tracking involved in the manufacturing of the product. It is important to note the materials’ focus in MRP when speaking of Material Requirements Planning. Manufacturing Resource Planning also is references as MRP, and is then referred to as MRP II. MRP II still involves a computer software application but focuses on all of the organizational resources and looks at capacity scenarios/worst-case demand. A few of the points that it takes into account are sales, Product scheduling, MRP, commercial planning and execution support systems. MRP II focuses on the people involved in maintaining a manufacturing environment. MRP in the computer system sense is but one part of MRP II.

MRP II Benefits

MRP II benefits include design and management improvements to financial arena improvements. For management, MRP II provides a systematic method for everyone in the business to follow so that everyone is on the same page in how to manage the business and events that cause company problems. Management of records becomes better improved in an environment for MRP II. Customer needs are of the highest importance and faster deliveries occur when MRP II system adherence occurs. If deliveries are faster, there is quicker cash flow. Inventories and production systems become controlled better as do schedules. These are just some of the examples of the advantages of MRP II system implementation in an environment for manufacturing.

ERP and MIS

ERP is enterprise resource planning and takes into account the expansive topics of operations, commercial issues such as marketing and commercial planning, finance, distribution, and materials. Under operations, ERP handles capacity requirements, the flow of work orders, simulation and engineering changes, manufacturing systems such as for support, and the data management for the product is handled in the category of operations as well. In the ERP commercial category is commercial planning, preparing systems for marketing, and conducting sales forecasts. In the finance category, accounts receivable, accounts payable and financial planning are handled. In the materials phase, inventory management is handled as is the scheduling and MRP. The phase of distribution handles the distribution systems of the product. An ERP system also handles human resources. MIS is a management information system. Both ERPs and MRPs manage software level information and are therefore in the category of management information systems.

Measurements

Measurements can be used to ensure that the MRP II steps taken are functioning. Using MRP systems can help grow the bottom line for organizations that practice it. It can also help in business productivity and in inventory monitoring.

MRP and CAM Integration

A capability that is relatively new is an MRP system that can act by itself but can also act with a computer aided manufacturing (CAM) system-integration of the two is possible. Usually, an MRP system will handle all of the material ordering. The CNC programmer then must review the orders from the MRP system to translate them him or herself and input the information and drawing into the CAM system. Having a system that is automated where the MRP system communicates all information that is necessary with the CAM system will save time on inputting data manually into the CAM system and human error prevention will be aided.

There is much to gain from using ERP and MRP systems. There is always room for advancement in a company and these valuable tools could help any business become more successful.

Marc Anderes is the Vice President of Operations of Maloya Laser which specializes in Laser Cutting and Metal Manufacturing with advanced laser technologies, servicing machinery, aerospace, medical, scientific and transportation needs.