MRP II
Manufacturing Resource Planning (MRP II) is a material requirements planning method that includes warehouse, supply, sales, and production management functions. It also allows the inclusion of accounting and financial management functions in a single system.
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How MRP II works
MRP II relies on three basic principles: hierarchy, interactivity, and integration.
Hierarchical means that each link in the production chain is assigned its own level, the totality of which forms a hierarchical ladder. Enterprise activities are planned from the upper stages; at the same time, a reliable feedback mechanism functions.
The interactivity of the MRP II system is provided by the simulation unit embedded in it. The essence of interactivity is the ability to analyze and predict the development of events.
Integration consists in combining many aspects of the organization's activities, including production planning, production supply, product sales, execution of the production plan, cost accounting and other functions of the enterprise.
MRP Modules II System
The production resource planning system consists of many modules, as a result of which the user receives a wide range of capabilities.
- Sales and activity planning provides a link between strategic and detailed planning, as well as regulations for other plans and schedules.
- Demand management implements the connection between demand forecasting, work with customer orders, distribution, movement of materials and assembly units between the company's production sites.
- The main production schedule fixes the production plan based on the nomenclature items of independent demand, determining the volume and timing of production.
- Material Requirements Planning.
- The specification subsystem contains the regulatory information required for proper planning.
- The inventory transaction subsystem maintains the inventory data of the item items.
- The Scheduled Open Order Receipts subsystem is used to work with orders that have not yet been completed.
- Operational production management assigns a way to prioritize the management and execution parties.
- Capacity requirements planning.
- I/O material flow control controls the execution of the capacity usage plan.
- Supply management monitors the execution of the purchase plan and converts purchase requisitions into purchase orders.
- Distribution resource planning provides planning when an enterprise has a geographically distributed structure with several remote sites.
- Purchasing.
- Interface with financial planning.
- Performance Measurement.
- Simulation:
See also
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