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If you work in the manufacturing industry, you should consider using MRP to increase manufacturing productivity. MRP (Manufacturing Resource Planning) is a way of managing every aspect of the production process, including inventory, production schedules, billing, and costs into an complete system in order to better manage the manufacturing process. Almost all manufacturers today employ some sort of MRP program, and unless you do too, you could find the efficiency and productivity of your organization falling behind the competition.

An early type of MRP started being used by manufacturers during the 1970s and 80s. Largely based on Toyota’s highly effective manufacturing program, it comprised of a series of information outputs and inputs which would help manufacturers create a detailed manufacturing plan that would ensure that products were ready to be shipped on time. It took a lot of the guess work out of the manufacturing process and took into account such factors as the demand for certain products, when the products were needed, the materials needed to produce them, the time it took to produce the products, and more. Since the 80s, these systems have been largely computerized.

Currently, most manufacturers use MRP computer software. Almost every company will use a computer system to organize their manufacturing process and their ordering and shipping of parts and materials. MRP systems today are extremely customizable, so manufacturers can set up an MRP system using modular software components which address only the specific demands of their organization.

Virtually all MRP programs have functions that produce or simplify existing production plans, bills of materials, purchase management, material requirement planning, shop floor management, cost reporting, and capacity planning. Today’s systems will also handle some of the planning process for manufacturing firms both small and large, being able to manage inventory and material requirements of several sites concurrently. These sorts of features are available even on basic MRP programs.

You may want to have custom MRP systems put in place to increase the manufacturing productivity of your company. Some of the common custom features that are available with most MRP applications include: accounts payable and receivable, a general ledger, DRP, project management, estimation aids, technical records, CAD/CAM and CAPP programs, and sales order management. Depending on your operation, you might want your MRP system to use several of these functions. Modern MRP applications are very modular, allowing you to only add those programs that will be helpful to you in optimizing your manufacturing productivity.

Perhaps the best feature of modern MRP systems is that they help with increasing manufacturing productivity by helping the manufacturer optimize his schedule, order only the materials needed, when they are needed (avoiding overstocking of products and materials), and to coordinate the entire manufacturing process from the order of materials to the shipping of the final product. Modern MRP systems have been designed to be flexible, and are able to adjust to the changing needs of your organization.

Marc Anderes is a co-founder of Maloya Laser that is dedicated to Laser Cutting and Metal Manufacturing with advanced laser systems, for medical, aerospace, scientific and transportation needs.

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