What is MRP Software?
Material Requirements Planning (MRP) software manages material requirements for manufacturing processes.
MRP software is often called material requirements planning or MRP II software. It is the core software solution that sets manufacturing software apart from other forms of business software.
MRP tools are a subset of enterprise resource planning (ERP) tools.
It is effectively a solution that covers the periods from:
- production planning and development
- identifying and sourcing the raw materials, and
- beginning of the first production steps
After that point, manufacturing execution systems (MES) take over given they’re most involved in monitoring the production process itself.
ERP effectively combines tools of both MRP and MES systems.
ERP focuses on the entire manufacturing process over time, from finding raw materials to delivering the finished goods to customers and accepting payments. Namely, ERP focuses on a broader range of jobs over a longer view horizon.
MRP focuses on extracting efficiencies within the course of a task or job.
Materials costing is typically the core function, as it determines what is made versus what is purchased. Materials costing works within the context of the inventory system to check what quantities are available and the lead times for parts. Moreover, fabricating sub-assemblies requires lead times; accordingly, production logs are also a part of of MRP systems.
MRP basic features
MRP systems should include:
- Materials costing (core)
- Inventory control
- Inventory procurement
- Process scheduling applications
- Production forecasting