Mrp Ii.pptx

Manufacturing Resource Planning

Introduction Manufacturing resource planning evolved from material requirement planning in the 1980s. It abbreviated as MRP-ΙΙ to distinguish from MRP. Oliver Wight and Walter Goddard developed manufacturing resource planning from MRP.

Why MRP II? A method for the effective planning of all resources of manufacturing- • Financial accounting incorporated • Sales • Operations Planning • Simulate capacity requirements of different possible Master Production Schedules. MRP 2 is the incremental information integration business process strategy implemented using hardware and modular software application linked to central database that store business data and information.

Features of MRP II Fluctuation of forecast is taken into account by including simulation of MPS.

• MRP2 is a total company management concept for using more human resources effectively. • The MRP2 is carried out by a synergistic combination of computer and human resources. • The integration extends from strategic to operational level and encompasses long term planning up to short term control.

Benefits of MRP II • Increased direct labour productivity • High accuracy of inventory and manufacturing capacity • Effective interaction between different functions due to common databases and improved information flow • Quicker implementation of engineering changes

• Simulation capability to test what-if scenarios in a risk free environment • Company focus shifts from crisis management to process control

Functional Benefits • For Manufacturing Functions: • Better control of inventories

• Improved scheduling • Productive relationships with suppliers • For Financial and Costing Functions : • Reduced working capital for inventory

• Improved cash flow through quicker deliveries • Accurate inventory records • Timely and valid cost and profitability information • For Design / Engineering Functions :

• Improved design control • Better quality and quality control