Manufacturing Resource Planning is defined by APICS as 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 and extension of closed-loop MRP.
This is not exclusively a software function, but a marriage of people skills, dedication to data base accuracy, and computer resources. It is a total company management concept for using human resources more productively.
Paper-based information systems and non-integrated computer systems that provide paper or disk outputs result in many information errors, including missing data, redundant data, numerical errors that result from being incorrectly keyed into the system, incorrect calculations based on numerical errors, and bad decisions based on incorrect or old data. In addition, some data is unreliable in non-integrated systems because the same data is categorized differently in the individual databases used by different functional areas.
MRP systems can provide:
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Better control of inventories
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Improved scheduling
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Productive relationships with suppliers
For Design / Engineering:
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Improved design control
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Better quality and quality control
For Financial and Costing:
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Reduced working capital for inventory
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Improved cash flow through quicker deliveries
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Accurate inventory records