Manufacturing resource

planning
(MRP II)
NISHA BHATT
02302082013
MTech R&A

WHAT IS MRPII
Manufacturing Resource
Planning (MRP II) is defined by
the American Production and
Inventory Control Society
(APICS) as a method for the
effective planning of all the
resources of a manufacturing
company .

KEY FEATURES OF MRP-II

MRP II is an expanded approach to
production resource planning,
involving other areas of a firm in the
planning process and enabling
capacity requirements planning.
ERP, however, is an integration of
financial, manufacturing and human
resources on a single computer
system (standardized record
keeping).

KEY FEATURES CONT..

Expands scope of materials planning to
include capacity requirements planning
Involves other functional areas of an
organization in the planning process
Evolved from MRP because
manufacturers recognized additional
needs
It has simulation capabilities that enable
predictions to be made beforehand.

How it is different from MRP

It is closed loop MRP
By closed loop we mean that the
various functions in production
planning and control such as capacity
planning ,inventory management and
shop floor control have all been
integrated into a single system.
It provides a number of additional
features:

Additional features
Priority Planning: rush jobs can be
brought forward in time and others
put back in time.
Necessary adjustments made to
material delivery schedules.
Integration Of Various Functions
Feedback :from vendors, production
shops, stores etc.

OBJECTIVES OF MRP II
Increase efficiency of
manufacturing plant
Serve the customer better by
avoiding unnecessary delays
Manage inventory better

Historical Perspective
ERP- Enterprise
Resource Planning
MRP II Manufacturing
Resource Planning
MRP material
requirements
planning

Basic modules in MRP II

Master Production Schedule(MPS)
Item master data (technical data)
Bill of Materials(BOM) (technical data)
Production resources data
(manufacturing technical data)
Inventories and orders (inventory
control)
or
MRP(Material resource planning)
Shop floor data collection
Capacity planning

FLOW CHART

MARKET DEMAND

Finance

Marketin
g

PRODUCTION PLAN

Rough Out Capacity Planning

Master Production
Schedule

MRP

Capacity requirement
planning

Problem
s?

Problems?

Requirements Schedules

Manufacturin
g

Benefits of MRP II
Better control of inventories
Improved scheduling
Productive relationships with suppliers
For design / engineering:
Improved design control
Better quality and quality control
For financial and costing:
Reducedworking capitalfor inventory
Improved cash flow through quicker deliveries
Accurate inventory records

CONCLUSION
MRP is concerned primarily with
manufacturing materials while
MRPII is concerned with the
coordination of the entire
manufacturing production,
including materials, finance, and
human relations. The goal of
MRPII is to provide consistent
data to all players in the
manufacturing process as the

Criticism
MRP and MRP II, as well as the planning modules in
current APS and ERP systems, are actually sets of
heuristics.
Better production plans could be obtained by
optimization over more powerful mathematical
programming models, usually integer programming
models.
While Authors acknowledge that the use of
heuristics, like those prescribed by MRP and MRP II,
were necessary in the past due to lack of
computational power to solve complex optimization
models, this is no longer true.