MRP II stands for
Manufacturing Resources Planning, a computer
modelling technique for analysing and controlling complicated
Manufacturing operations. When the manufacturing data has been
collected (parts, assemblies, resources) the lead time and cost
of every component can be predicted under any manufacturing
conditions. As soon as an order is received the workload on the
manufacturing organisation and the delivery time can be
calculated. MRP II systems also keep track of
customers, suppliers and accounting functions. Inventory can be
purchased and assemblies made "Just in Time". The
records kept by an MRP system highlight
inadequacies such as overloaded production centres and delays by
suppliers. The effect of new orders, changes in capacity,
shortages, delays and a myriad of other disturbances are
calculated and tracked with confidence.
The major effects that an MRP II system will
have on a manufacturing operation will be:
- Reduced inventory.
- Accurately predicted delivery times.
- Accurate costing at every stage of the manufacturing process.
- Improved use of manufacturing facilities.
- Faster response to changing conditions.
- Control of every stage of production.
Diagram demonstrating how Manufacturing Resources Planning works |
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