Cutting Edge Technology

MRP Systems

MRP or manufacturing resource planning or material requirement planning is a popular software system used in the manufacturing industry. This technology sets manufacturing applications apart from other types of business software on the market. MRP is a subset of enterprise resource planning or ERP software. The important functions of an MRP system include production forecasting, material costing, inventory control, procurement schedule, and process scheduling applications. Material costing is the core function of such a system. It will actually determine what is made and what is bought in your industrial organization. These systems are usually run on premise. A small shop may have a single user system while a large organization may have workstations throughout the premises. On the other hand, cloud-based MRP systems are also becoming popular in this day and age. This article provides information on the best MRP systems on the market.
Buying the best MRP system for your organization isn’t an easy task. There are many things to consider when doing so. The first step is to decide what type of buyer you are. There are three main groups of buyers out there, and over 90% of buyers will fall into one of these groups.

  • The small manufacturer – A small manufacturer will have a limited budget and IT resources. Such a business will need a small business MRP solution that is cost-effective as well as easy to implement. If you are on a tight budget, you can check out the free MRP software on the market. These systems are based on open source models. Some small manufacturers may need the full features of the system while other manufacturers may need only a couple of features such as the production inventory control or resource planning features.
  • Departmental buyer – The departmental buyer may need this type of software system for specific functionality such as the ability to interface with a departmental procurement system.
  • Full-suite buyer – These buyers need the full system with all its features. They may need a system that includes work-in-progress, estimating, and accounting features. This type of system can automatically turn an estimate into a budget for project management purposes. Some of the suites that are preferred by these buyers include Microsoft Dynamics, Sage ERP, SAP, and Oracle.

MRP systems come with many benefits to a manufacturing facility. Some of the most important benefits include:

  1. Better planning & resource allocation – You get better data and greater insight into the actual costs of inventory, labor, and equipment. You will get the actual costs for each step of the production process with such a software system. That way you can better plan the production process and allocate the right resources at all times.
  2. Integration with accounting systems – The most important feature of an MRP system is to inform the manufacturer what to buy and when to buy it. Integrating the system with other accounting software will let you easily track inventory costs and determine lead times.
  3. Better operations – An MRP system will help improve the operational efficiency of your organization. It will help generate less waste and crap and reduce the environmental impact of the organization. On the other hand, with more documents kept electronically, the system will reduce waste paper and cut the cost of buying paper for your company. These are some of the important benefits of investing in an MRP system.

Manufacturing resource planning or MRP systems have become quite popular with manufacturing facilities in this day and age. There are many important things to consider when you are buying the best MRP software on the market.