, in Spanish the Planification of Requirements of Material, is a system that helps
plan the necessary materials
and to manage stocks
following the needs of of the company (according to market demand). In other words, this system guides you on
when the company needs more raw materials
, and how much.
It is a way to planr the production process and inventory control in order for the company to become
as efficient as possible.
The objective of MRP is to know when have a certain amount of materials at the exact moment to power produce.
What is the function of MRP?
MRP uses the results of the planning run (in terms of materials and stocks) and with this data, issues orders for purchasing. All this serves to improve procurement errors and control the production process.
Nearly all MRP systems are managed through a software
software, although it can also be done manually.
What are the objectives of MRP?
Any company seeks to deliver to its customers an finished product by the agreed deadline. For this to go well, it is very important to plan and optimize the work. as much as possible. That’s what MRP is for. The main objectives of using an MRP are:
Have all products available at the times they are needed.
In other words, make sure that materials are available at the time of production.
In this way, the process will flow smoothly and delivery deadlines will be met perfectly.
the levels of
(both material and finished products).
Improve and optimize the planning of the production, materials and purchases that the company
that the company has to make.
The MRP plans production, purchasing and delivery schedules.
What does an MRP take into account for calculate how much material is needed?
- The product to be manufactured
- The material required for the manufacturing processes
- The current stock
- Sales and purchase orders
- Production orders (to find out how much material you are going to consume)
In addition, the MPR will generate a
Master Production Plan
which indicates how many products to make and when to make them in order to reach the stipulated deadline. This plan gives a recommendation on materials: how much material we should have (Suggested Purchase Orders (SPO)), how much to make (Suggested Orders (SOP)), how much to make (SOP), how much to make (SOP), and how much to make (SOP). Production (FSO)) and how much material is to be ordered from vendors (External Supplier Orders (ESO)).
Thanks to this information,
any company will be able to anticipate its requirements
and get the exact stock.
Benefits of MRP in manufacturing processes
Savings: Thanks to the information provided, there will be no unnecessary stock. That is to say, only the following will be purchased and producedor just.
By creating greater process efficiency, there will be no raw material wastage and better stock control.
If you plan and purchase what you are going to need with the right lead time, you won’t have to wait for the material to arrive, thus reducing manufacturing time.
All companies that decide to incorporate operations are seeing a return on investment
return on investment
(both in savings, as of efficiency and image).
In Cedesa we have a wide variety of services to help companies in their management, in addition we also offer custom software, where we create custom solutions for companies.