Manufacturing
Manufacturing Resource Planning
Maintaining the right amount of inventory to satisfy production demand is the ultimate goal, and a significant challenge, for manufacturers. Since the 1980s, companies have used manufacturing resource planning to achieve this objective. These enterprise systems orchestrate the supply, flow and management of all resources – material, machine and human alike – involved in the production of a company’s goods. With the ability to account for dynamic and complex variables such as financial conditions, equipment capacity and staffing levels, manufacturing resource planning allows managers to confidently plan production jobs exactly when and where they are needed.
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What Is Manufacturing Resource Planning and What Are Its Benefits?
Manufacturing resource planning is both an enterprise-wide management concept and a software application whose purpose is to optimize the relationship between raw materials, personnel and equipment to achieve the greatest possible operational efficiency and productivity.
Manufacturing resource planning systems are based on the then-groundbreaking material requirements planning (MRP or MRP I) software that emerged and became widespread in the 1970s for inventory control, purchasing, and materials management. These early enterprise software systems used relatively static data points, such as historic demand, to determine current and future inventory levels and procurement planning. Manufacturing resource planning systems, on the other hand, have evolved to incorporate more complex and dynamic metrics, including financial data, machine and equipment capacity, and staffing levels to enable production managers to more accurately plan inventory and schedule production. Furthermore, they often deliver simulation capabilities that allow operators to see the downstream effect of different actions.
Benefits of MRP
Most manufacturing resource planning systems offer the same inventory tracking, production scheduling and bill of materials (BOM) functionality as MRP systems, but also deliver more sophisticated capabilities within logistics, general finance and marketing. Manufacturing resource planning is widely used by manufacturing companies across the globe, either as a stand-alone solution or as a module in an enterprise resource planning (ERP) system.
The benefits of a manufacturing resource planning system include:
- Capturing and providing real-time production data to manufacturing teams.
- Synchronizing production scheduling with staffing levels, machine capacity and material availability.
- Coordinating raw material purchasing with production demand.
- Providing accurate cost-of-production details to accounting and finance.
Learn More About MasterControl Manufacturing Excellence
For more information about MasterControl Manufacturing Excellence and how it can improve your manufacturing resource planning system, please contact a MasterControl representative.
