What is Manufacturing Resource Planning?

What is Manufacturing Resource Planning?

Without a doubt, manufacturing your own goods is a good sign that your business is finally starting to grow. As good as it may seem, there’s a lot of things that need to be considered before you can start producing your first product. One of the most important, if not the most important aspect of the manufacturing industry is the system that will be put into place to ensure the smooth implementation of its operation.

With this, an integrated information system like Manufacturing Resource Planning (MRP II) may come in handy. MRP II is a computer-based software that can build a custom-made operating platform using real-time information to manage the production of component materials with labor and machine availability. MRP II is widely used as a standalone system, but also as a component of broader software, the Enterprise Resource Planning (ERP).

Manufacturing Resource Planning (MRP II) is developed from an earlier software called Materials Requirement Planning (MRP) systems by incorporating other important additional data such as personnel and financial information. The end result is a system that is intended to consolidate and process information for effective decision making in production scheduling, design work, inventory tracking, and cost monitoring in the manufacturing department.

Advantages of Using Manufacturing Resource Planning (MRP II) System:

  • Provides up-to-date, complete information that can be used by the organization in central functions such as business development, managerial level decision-making, and production workflow.
  • Minimize general workforce and achieve maximum efficiency once the MRP II system is already being implemented correctly.
  • Information from MRP II allows the top level management to plan in advance, and predict how such planning can impact the business’s profitability.
  • Planning with the assistance of MRP II helps the business to become more efficient, thus eliminating needless expenditures while taking full advantage of overall income.
  • MRP II is a highly competitive tool that is unquestionably a better option than the manual system of stock control using spreadsheet.
  • A completely automated MRP II software efficiently and effortlessly creates a production plan which helps the business save labor, time, and fund.

Which Business Should Consider Manufacturing Resource Planning (MRP II) System?

The most ideal production business models that will significantly benefit from MRP II are those that include a lot of assembly lines for their products. Nevertheless, whether you’re an SME who’s either involved in manufacturing simple or multi-part products, the integration of MRP II into your present operations will significantly improve your business’s output, resulting to increase in revenues as the bottom line.

A well-implemented Manufacturing Resource Planning system can ultimately lead to the following progressive results:

  • Stock levels are minimized, therefore reducing inventory costs.
  • Effectively decrease the volume of Work in Progress (WIP) inventory.
  • Successfully improve consumer experience & consumer service by eliminating late arrival of orders.
  • Enhance the workforce productivity throughout the manufacturing stage.
  • Support the business in coping up with the product demand changes at a faster and more efficient level.

The MRP II software is implemented by a combination of technology and human collaboration, which are both important to effectively utilize the manufacturing aspect of your business. If you’re a company involved in the manufacturing business, you may contact Quadrant Alpha, one of the best business software development companies in the Philippines.