MRP Software Systems

Materials Requirement Planning or MRP is viewed as the Grand-daddy of manufacturing computer software systems. Devised in the US in the 1960s, MRP software systems allowed users to "batch" sales orders, and, through the concept of bills of materials, which identified the individual parts required to build quite often complex products, to generate purchase orders for suppliers.

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It made the job of ensuring that materials could be made available to fulfil sales orders a whole lot easier, thus ensuring that the factory was kept constantly running.

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Then came Manufacturing Resource Planning or MRPII software, which in the 1970s moved the whole game on somewhat. Because the production planning aspects of MRP are related to most other functions of a company, its scope was expanded to integrate with the order processing, billing, shop floor scheduling, and personnel and machine utilisation activities of the company. These newer MRP II software systems contain the classic MRP software scheduling function as their centrepiece, but they may also include a module that collects sales and customer order data and generates an MPS (Master Production Schedule) for future end product requirements.

In addition, an MRPII software system may further convert information from the material requirements plans into specific work schedules for departments and machines, evaluate department workloads and capacity conditions, generate shipping documents and customer invoices, and produce management reports on production and financial performance.

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Typically, these systems have a feedback mechanism (and are therefore called closed-loop MRP software) so that if department, machine, or personnel capacity limits are exceeded, the material requirements plans and corresponding production schedules are revised to stay within capacity limits.

Hints and tips about implementing IT projects

Identifying the Business Requirements
A planned and structured approach to identifying the business requirements is essential to for any IT projects to succeed. Note:.- if achievement of benefits is not planned it will not take place.

If you're replacing an existing system, you will already have a clear understanding of your business needs and expected benefits, in which case iTSHOWCASE events can provide you with an ideal opportunity to find out which suppliers can help you.

Evaluating the Options for Sourcing the Solution
Arriving at a sourcing decision for an Information System (IS) should be seen as a culmination of a series of iterative reviews to assess the relative risk, cost and benefit of the options. The further the solution moves from a standard package, the higher the risk and the greater your reliance on the capability of the team. iTSHOWCASE events enable you to identify the products that most closely match your requirements.

Managing the Supplier Relationship
Management of supplier relationships is vital to the success of any Information Systems (IS) programme. The supplier may be required to support the system throughout its life expectancy; key suppliers will be involved in a number of projects. Senior management attention to building relationships with strategic suppliers can bring significant rewards.

Supplier relationships are mainly about people. At iTSHOWCASE events you'll meet potential suppliers face-to-face.

Select the Supplier
A structured, planned and well-informed approach is required to finding, assessing and selecting a solution and supplier. Your choice of supplier is likely to be a critical factor in your ability to deliver business benefits from Information Systems (IS), so you must get it right.