ERP & MRP - What Do They Have To Do With Each Other?Erp MRP software are two closely related methods of planning in business. MRP stands for Material Requirements Planning, and is an inventory control and production planning system that's used in management of manufacturing processes. Occasionally, this system may be done by hand, but it's almost always software based in recent years. MRP systems must meet three important objectives at the same time. They have to make sure that all products and materials are available when they need to be, while maintaining as little inventory as possible and planning delivery schedules, purchasing and manufacturing. If that sounds like a tall order, it's because it is. Every manufacturer has to deal with the fact that customers want products in less time than making them requires. Keeping a huge inventory would fix this, but it's inefficient. Balancing the inventory levels with customer demand can be tricky. This is why a system is required. The weak point in most MRP systems is data integrity - if anything is wrong with the inventory data, master production schedule or bill of materials data, the output won't work properly. A minimum of ninety-nine percent data integrity is required. MRP systems also require users to say how long manufacturing will take. The system assumes the lead time is the same every time the item is made, no matter how many of them are being made or at what time. This can also cause problems. These issues are why other systems have been developed. MRP2 systems can help take care of some of the problems in data that a regular MRP system can't deal with. However, the next step after that is ERP, or Enterprise Resource Planning. Instead of just covering materials, this system covers the entire enterprise, coordinating and managing all information, resources and functions. These company wide computer systems tpyically communicate on a LAN, and come in modules which allow them to be easily reconfigured without data loss. ERP & MRP are extremely important to the functioning of many businesses. Without them, it would be impossible to effectively keep track of what's going where and what is actually needed. They might not be obvious in most cases, but we'd definitely notice if they weren't there! A good ERP or MRP system is vital to the operation of any large business. While a single shop might not require one, any business with multiple locations and large scale manufacturing isn't going to do well without some kind of management system. Take the time to consider one for your business, and know what they're good for. ERP & MRP make a huge difference.
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