Material Requirement Planning (MRP) is highly used in the manufacturing industry, and is essential to production planning and inventory management in the manufacturing process. The main goal is to maintain sufficient levels of inventory to make sure that the necessary materials are always readily available as required.
The main objectives of MRP include:
• Maintaining the lowest amount of inventory possible
• Making sure materials are always available for production
• Generate and plan delivery schedules and manufacturing activities
Who Benefits From MRP? How is it Used?
Material requirement planning is advantageous to manufacturing firms that make use of assembly lines to create their products. MRP software is implemented to track and organize inventories, and to make sure that the necessary products and parts are in place when an order is taken. This system can boost profitability, shorten lead times, improve productivity, and allow businesses to be proactive in their inventory management practices.
Material requirement planning requires the following components to be present in order to work effectively:
✓ A bill of material (BOM) needs to be provided for the end product, and each step in the manufacturing process.
✓ All products and materials must be in the warehouse and ready for production;
✓ Inventory levels need to be consistently monitored to ensure levels remain low;
✓ All aspects of the manufacturing process need to be planned out and approved by upper level management.
How Can Businesses Benefit From MRP?
Material requirement planning can help manufacturing firms plan out the production schedule and identify precisely when materials should be ordered for specific products. MRP systems save businesses a significant amount of time and money, and simplify the planning process. They also facilitate inventory management, and help ensure that products are delivered on time.
An MRP system can revolutionize a firm’s warehouse and operational procedures, and is specifically designed to help companies interested in material requirement planning. MRP software can help manage the balance between supply and demand, and provide an analysis of a business’s inventory situation.
Oneir Solutions offers manufacturing companies an innovative MRP system that can help reduce inventory, increase productivity, and boost cash flow. It’s part of an effective Enterprise Resource Planning (ERP) solution for manufacturers.
Contact Oneir Solutions Inc today to learn how your company can benefit from our MRP solutions.
