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Sunday, August 12, 2007

MRP, MRPII & ERP, a brief definition...

MRP, MRPII, and ERP are something look similar especialy for newbie in ERP, these are a brief definition about MRP, MRPII and ERP.

A system for effectively managing material requirements in a manufacturing process. Information systems have long been an important part of the manufacturing environment. In the 1960s, manufacturers developed Material Requirements Planning (MRP). According to the American Production and Inventory Control Society, Inc. (APICS), MRP is a set of techniques that uses bill of material data, inventory data, and the master production schedule to calculate requirements for materials. It makes recommendations to reorder materials. Furthermore, because it is time-phased, it makes recommendations to reschedule open orders when due dates and need dates are not in phase. Time-phased MRP begins with the items listed on the Master Production Schedule and determines the quantity of all components and materials required to fabricate those items and the date that the components and material are required. Time-phased MRP is accomplished by exploding the bill of material, adjusting for inventory quantities on hand or on order and offsetting the net requirements by the appropriate lead times.

A system based on MRP which allows manufacturers to optimise materials, procurement, manufacturing processes, etc., and provide financial and planning reports. In the late 1970s and early 1980s, manufacturers integrated MRP and other manufacturing and business functions. This renaissance is commonly known as Manufacturing Resource Planning (MRP II). According to the American Production and Inventory Control Society, Inc. (APICS), MRP II is a method for the effective planning of all resources of a manufacturing company. Ideally, it addresses operational planning in units, financial planning in dollars, and has a simulation capability to answer "what if" questions. It includes business planning, sales and operations planning, production scheduling, material requirements planning (MRP), capacity requirements planning, and the execution support systems for capacity and material. Output from these systems is integrated with financial reports such as the business plan, purchase commitment report, shipping budget, and inventory projections in dollars. Manufacturing resource planning is a direct outgrowth and extension of closed-loop MRP.

Any software system designed to support and automate the business processes of medium and large businesses. This may include manufacturing, distribution, personnel, project management, payroll, and financials.
ERP Systems are accounting-oriented information systems for identifying and planning the enterprise-wide resources needed to take, make, distribute, and account for customer orders. ERP systems were originally extensions of MRP II systems, but have since widened their scope. An
ERP Systems also differs from the typical MRP II system in technical requirements such as relational database, use of object oriented programming language, computer aided software engineering tools in development, client/server architecture, and open system portability.

for  ERP Training info, please contact: training@alphamedia.co.id

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