MRP II is an integrated approach to planning all resources in a manufacturing company. From there, it goes beyond just the basic Material Requirements Planning (MRP) it covers with additional functions including production scheduling, capacity planning, and business planning. Our solution encompasses the entire production cycle, and enables manufacturers to efficiently handle everything from raw material procurement to final product delivery.

Introduction to MRP II

MRP II logiistical systems is an computer based systems help manifacturers to calulate and deliver orders. It encompasses multiple functions — inventory control, production scheduling, and capacity planning, among them — and coordinates availability of sufficient materials at the right time to meet demand from customers. MRP II is extensively modified from its predecessor, MRP, which was primarily centered around material requirements and the status of inventory; it accounts for financial planning and enables the simulation of “what-if” scenarios.

Starting the MRP II Process

MRP II process starts with creating the Master Production Schedule (MPS). The Master Production Schedule (MPS ): outlines what products need to be made, in what quantities and when. It is based on customer orders, demand forecasts, and internal needs. Where all rescheduling and planning activities build on.

AnswersDetail Steps in the MRP II Process

Bill of Materials (BOM) Explosion: In this step, each product is decomposed into its individual components and subassemblies as described in the BOM. The BOM presents a hierarchical view of the product where it describes the quantity of components required. The process of explosion makes sure that all required materials have been recognized for procurement and manufacturing.

Material requirements planning (MRP): Based on information provided by both the BOM and the MPS, the system then creates a schedule for the materials required to meet the production schedule. It calculates the amounts needed and when to purchase or manufacture each part. This preventive step ensures that materials are readily available without the costs of holding excessive inventory and preventing production stoppages.

Capacity Requirements Planning (CRP)—CRP determines whether the production facilities and work centers of the company can deliver on the production schedules. The process takes into account parameters like machine availability, labor resources, and work center capabilities. If there is a gap between capacity and requirement, rescheduling of production is done or adjustment of capacity is also done through overtime or outsourcing.

Production Scheduling: Detailed schedules are created for the shop floor in this phase. This includes sequencing work orders, allocating resources, and establishing start and finish dates for each operation. The objective is to maximize the efficiency of work-in-progress moving through the system in order to have produced products when needed whilst keeping the operation efficient (utilising resources at maximum levels).

Execution and Feedback: With the schedules in place, production activities kick off. During execution, data is collected on performance indicators like production output, quality levels, and utilization statistics. This feedback is critical to tracking progress, recognizing problems and implementing corrections to stay aligned with production plans.

MRP II (Manufacturing Resources Planning) Tools and Software

MRP II is generally enabled by a software system designed for this purpose and will integrate all of the different manufacturing functions. These systems abound in modules for inventory management and production planning as well as scheduling and capacity planning. Notable MRP II software solutions are:

  • SAP ERP: An enterprise resource planning system that provides MRP II functionality for material management, production planning, and financial integration.
  • MRPeasy: A cloud-based MRP solution made for small to medium-sized manufacturers with tools for production planning, inventory management and CRM.
  • Siemens Opcenter: Advanced planning and scheduling capabilities, integrates MRP II with real-time manufacturing execution

These process tools allow different manufacturing processes to become interconnected and help ensure data integrity and real-time visibility across the organization.

Conclusion

MRP II is best operationally defined as the composite of MVP and encompassing information systems covering materials planning, capacity scheduling, and shop floor control. Manufacturers use advanced software tools to improve production processes, resource utilization, and overall operational efficiency.

Sources

  1. MRP II: How can it help you manage your supply chain?
  2. Manufacturing resource planning (MRP II)
  3. What is MRP? The Key to Efficient Manufacturing
  4. 7 Best MRP Software for Small Manufacturers