what is mrp system

mrp system is material requirements planning, which is the abbreviation of "Material Requirement Planning"; mrp refers to taking each item as the planning object and the completion period as the time based on the affiliation and quantity relationship of items at each level of the product structure. Baseline inverted planning distinguishes the order in which each item is released according to the length of the lead time. It is a material planning management model within an industrial manufacturing enterprise.

The operating environment of this tutorial: Windows 10 system, DELL G3 computer.

What is the mrp system

MRP (Material Requirement Planning) refers to the subordination and quantity relationship of items at each level of the product structure, with each item as the planning object, and the completion period It is a time-based inverted planning, which distinguishes the order in which each item is released according to the length of the lead time. It is a material planning management model within an industrial manufacturing enterprise.

MRP is a practical technology based on the product generation schedule, which consists of the product's manufacturing data and inventory status, and calculates the demand and demand time of the required materials through computers to determine the material processing progress and ordering schedule. . MRP is centered on production planning, organically linking the activities of production, supply, marketing and other aspects related to material management to form an information management system that solves the problem of disconnection between production, supply and marketing. It can be said that MPR is a management method, a practical technology and an information management system.

MRP is a system designed and used for manufacturing inventory management information processing. It solves how to achieve manufacturing inventory management goals. The challenge of getting the materials you need in the right quantity at the right time. MRP is the prototype of today's well-known ERP, and the inventory management ideas of MRP and ERP originated from solving the basic equations of the manufacturing industry.

Basic Principles of MRP

MPR’s management philosophy emphasizes “demand orientation, supply determined by demand”. According to different sources of demand, materials within the enterprise can be divided into two types: independent demand and related demand. Independent demand refers to external demand whose quantity and time are determined by the market or customers, such as products ordered by customers, spare parts required for after-sales maintenance, etc.; related demand refers to independent demand materials based on the structural relationship between materials. The demand generated, for example, the demand for semi-finished products, parts, raw materials, etc.

The basic tasks of MRP are:

(1) Derive the demand quantity and demand time (related demand) of related materials (raw materials, parts, etc.) from the production plan (independent demand) of the final product );

(2) Determine the time to start production (ordering) based on the material's demand time and production (ordering) cycle.

The basic logic of MRP is:

(1) Develop a Master Production Schedule (MPS) based on independent needs, that is, clarify what to produce, how much to produce, and when to order the goods? MPS is the basis for MRP development;

(2) You must know the manufacturing data, such as Bill of Material (BOM), process route, etc., that is, clearly what will be used and how long will it take to complete? Only by knowing these data can the MPS be expanded;

(3) At the same time, the inventory information must be known to accurately calculate the purchase quantity of parts, that is, it is clear what is already available and when will it be available for use?

Finally, the recommended production plan and purchasing plan are obtained through MRP calculation, that is, what is still missing and when will the (order) be placed?

The main goal of MRP

The main goal of the MRP system is to control the enterprise's inventory level and determine the production priority of products. Meet the delivery time requirements and maximize the efficiency of production operations. The details can be summarized as the following points:

(1) Purchase the appropriate quantity and variety of parts, choose the right time to order, and maintain the lowest inventory level as much as possible;

(2) Timely Obtain various raw materials and parts required for production to ensure timely supply of products required by users;

(3) Plan the production activities and procurement activities of the enterprise so that the self-made parts produced by each department and the outsourced parts purchased Parts and assembly requirements are precisely aligned in terms of time and quantity.

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