The idea that material inventory must be managed such that it meets production demand as accurately as possible is a basic principle of manufacturing. Stemming from the material requirements planning software introduced in the 1970s, manufacturing resource planning (MRP II) systems emerged in the 1980s and evolved beyond the relatively static metrics that drove early inventory and procurement planning by integrating more complex and dynamic data points, such as staffing levels, machine capacity and financial data to help managers more accurately plan inventory and production scheduling.
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MRP II is an extension of material requirements planning (MRP or MRP I), a materials management and inventory control system. Like its predecessor, MRP II is a push system which, driven by demand forecasts and the master production schedule, pushes product to market versus pulling it when orders are placed.
Most MRP II systems deliver all of the functionality of an MRP system. But in addition to offering master production scheduling, bill of materials (BOM) and inventory tracking, MRP II provides functionality within logistics, marketing and general finance. For example, MRP II is able to account for variables that MRP is not – including machine and personnel capacity – providing a more realistic and holistic representation of a company’s operating capabilities. Many MRP II solutions also offer simulation features that allow operators to enter variables and see the downstream effect. Because of its ability to provide feedback on a given operation, MRP II is sometimes referred to as a closed-loop system.
MRP II systems are still in wide use by manufacturing companies today, and can either be found as stand-alone solutions, or as part of an enterprise resource planning (ERP) system.
As its name implies, manufacturing resource planning is a method and tool to coordinate the resources involved throughout the manufacturing process for maximum efficiency, including material, human, machine and financial resources. By synchronizing these critical production elements, manufacturers can optimize output and reduce waste, thereby achieving a competitive advantage. MRP II is particularly useful for companies that make to stock versus make to order.
The benefits of an MRP II system include:
An MRP II system is a critical cog in the wheel of your manufacturing operations. And while it offers enhanced functionality beyond MRP I, it is still limited in scope and requires significant manual effort to extract, interpret and document the manufacturing data it produces. MasterControl Manufacturing Excellence solutions have been designed to complement and enhance other manufacturing solutions, including MRP II. By connecting your manufacturing processes, systems and data, MasterControl Manufacturing Excellence serves as a gatekeeper to ensure the data you base critical manufacturing decisions upon is accurate, compliant and accessible.
MasterControl Manufacturing Excellence software enables manufacturers to:
For more information about MasterControl Manufacturing Excellence and how it augments your MRP II system, please contact a MasterControl representative.