Using MRP to Increase Manufacturing Productivity

If you work in the manufacturing business today, I suggest you strongly consider improving manufacturing productivity with MRP. MRP (Manufacturing Resource Planning) is a way to organize all aspects of the production process, including production schedules, costs, billing, inventory and more into an complete system in an attempt to optimize the manufacturing process. Most manufacturers today make use of some kind of MRP program, and those that don't will quickly find themselves falling behind the more efficient operations of their competitors.

The earliest MRP programs started being used by companies during the 1970s and 1980s. They were largely based on Toyota's highly effective manufacturing program and comprised of a number of information outputs and inputs that would help manufacturers create an effective manufacturing plan that would make sure that products were ready to be shipped on time. Designed to make manufacturing operations run more smoothly, it took into account such factors as the demand for specific products, the materials required to manufacture them, when the products were wanted, how much time would take to produce the products, and much more. The nineteen-eighties saw the first MRP computer programs and manufacturers have never looked back since.

Currently, most manufacturers use MRP computer applications. It's a rare company indeed that doesn't use a computer system to plan their shipping, ordering and manufacturing processes. MRP systems today are very customizable, so that manufacturers can create an MRP system using modular software components which address only the particular demands of their own organization.

Most MRP systems include features that will produce or simplify existing production plans, bills of materials, purchase management systems, planning of material requirements, shop floor management, cost reporting and control, and capacity planning. These systems will also handle a great deal of the planning process for both small and large manufacturing businesses, being capable of isolating material needs and inventory of numerous sites simultaniously. These kinds of features are often available even on basic MRP programs.

You may want to have custom MRP systems put in place to increase the manufacturing productivity of your organization. Some of the common custom features used by most MRP programs include: an accounting system or general ledger, project management, estimation aids, technical records, distribution requirement planning, CAD/CAM or CAPP programs, and sales order management. Depending on your operation, you may need to use just some of these features with your MRP system. Modern MRP software packages are highly modular, allowing you to only add the programs which will be useful in increasing your manufacturing productivity.

The best attribute of modern MRP programs is that they help with increasing manufacturing productivity by helping the manufacturer optimize his timetable, buy only the materials needed, when they are needed (avoiding overstocking of products and materials), and to manage the whole manufacturing process including the order of materials to the shipping of the final product. Modern MRP systems are designed to be flexible, allowing them to adjust to changing conditions as you run a manufacturing company in real time.

Marc Anderes is a co-founder of Maloya Laser which specializes in Laser Cutting and Metal Manufacturing with state-of-the-art laser systems, servicing medical, aerospace, scientific and transportation requirements.