MRPII integrates all aspects of the manufacturing process, including sales, materials, finance, and human resources. As a result, the MRPII system benefits your business with better control of inventories, precise scheduling, and improved cash flow through quicker deliveries. Moreover, it fosters good practices in business processes.
MRPII systems aim to achieve efficient planning of all enterprise resources (including financial and human resources). The main essence of the MRPII concept is that forecasting, sales, planning, and production control are carried out throughout the entire product's life cycle, from the purchase of raw materials to the shipment of products to the consumer.
Let's start with a bit of history and theory. The concept of MRP II was established in the 80s, but at that time, computer systems and database technologies were not advanced enough to make it viable in the production environment. The MRPII standard was developed and maintained by the American Production and Inventory Control Society (APICS). APICS's "MRPII Standard System" document describes the basic requirements for production information systems. According to the paper, the ERP system should implement at least some of these 16 functions. ERP system that complies with the demand classified as MRPII compliant.
Here are 16 cornerstones of MRPII:
1. Sales order management and planning (Sales analysis and forecasting).
2. Master production schedule (MPS).
3. Item master data.
4. Bill of material (BOM).
5. Production resources data (manufacturing technical data).
5. Inventories and orders (inventory control).
6. Purchasing management.
7. Material requirements planning (MRP).
8. Shop floor control (SFC).
9. Capacity requirements planning (CRP).
10. Incoming inspection / inline inspection / final inspection.
11. Traceability.
12. Tooling management.
13. Distribution resource planning (DRP).
14. Routings.
15. Standard costing.
16. Cost reporting/management.
Conclusion:
Streamlining processes leads to increased production efficiency, lower costs, and improved product quality. The production manager and project managers receive real-time information and can implement streamlined routine processes, and senior management can set and monitor KPIs.