What is Manufacturing Resources Planning (MRP II)?

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.

How MRP II works:

Business Planning
Production Planning
Master Production Scheduling
Material Requirements Planning
Capacity Requirements Planning
Executing Capacity Plans
Executing Material Plans

Diagram demonstrating how Manufacturing Resources Planning works




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