MRP, MRP II and ERP software packages are typically PC-based systems aimed at helping manufacturing businesses manage and control their production as efficiently as possible.
Any MRP/MRP II/ERP system should streamline the entire production process from quotation to invoice and reduce your business administration. A good system should help the business owners stay in control of their business to make sure they can manufacture quality parts that are right first time, delivered on time and sold at the right price. A system is categorised based on what elements are included in the makeup of the software.
MRP (Material Requirements Planning) encompasses the least amount of core components. MRP systems typically allow the user to manage material stocks, create production plans/schedules based on the lead times of their suppliers, reduce inventory levels and improve purchasing procedures.
For an MRP system to be able to help a company, good data must be input. This data should include a forecast of what needs to be produced in the next couple of months, customer and purchase orders, Bills of Materials (BOMs), showing which materials are used to build each product and in what quantities, details of current materials (including reorder requirements and minimum and maximum quantities) and stock currently held.
MRP II (Manufacturing Resource Planning) includes the features described above for MRP but is expanded to include machine capacity scheduling, demand forecasting, quality assurance and general accounting. MRP II systems would therefore describe themselves as providing effective planning for all resources within a manufacturing company.
ERP (Enterprise Resource Planning) software adds to the modules found in an MRP II system with the intention to manage an entire organisation. ERP adds core financials, Customer Relationship Management (CRM), supply chain management, human resources, enterprise asset tracking, marketing automation and project management, often in real-time.
If you are looking to incorporate a planning system into your organisation, you may be wondering which type of system you should go for. PSL Datatrack’s belief is that one size doesn’t fit all, as business requirements vary tremendously and may not necessarily even slot into any of the terms above.
Systems that are too small and cannot be extended can prevent business expansion without being replaced, whilst systems that are designed for larger businesses can be onerous to use in a smaller business. It is important to assess your requirements and invest in a product that suits your style and size of business. Systems should be able to be extended as and when needs arise.
PSL Datatrack is a modular system designed to be scalable, offering a range of features so businesses can pick and choose what is right for them and is best defined as ‘Production Control Software’ as it incorporates features from all of the MRP/MRP II/ERP definitions, including:
- Quotations
- Sales Orders (Works Orders, Component Stocks, Deliveries)
- Purchasing (Purchase Orders, Goods Received, Material Stocks)
- Planning (Process Layouts, Work In Progress, Sequential Scheduler, Tool Definitions, Bill Of Tools)
- Shop Floor (Shop Floor Data Collection, Time and Attendance)
- Quality (Gauge Calibration, Non Conformance)
- Financial (Invoicing & Credit Notes, Job Costing, Purchase Invoicing, Multi-Currency)
- Management (CRM/Tasks, Real-Time Status Boards)
A good MRP/MRP II/ERP/Production Control System must also provide total traceability to defined standards and there is no basis on which this can be deviated from in order for the industry to maintain the safety record that it must have, particularly for the aerospace sector (whether for commercial or military purposes).
The supply chain must be monitored at all levels and information must be available about every last component in an aircraft. Managing this without a system would historically have been a massive task involving high overhead costs. With the current drive to keep/make commercial air travel affordable an efficient system is a necessity for both pricing and safety.
Any system used in an industry, such as aerospace, that requires full traceability of parts must enable the company using it to keep accurate detailed records about every supplier used, their accreditations and their track record for producing parts without non-conformances. With this information being recorded to a defined level it does not matter where the supplier is located around the world, as long as they can deliver the parts on time, to the right standard and at the right price.
Any good system will help manage supply requirements to make sure they are available Just-In-Time (JIT) and avoid the costly business of stock holding. Suppliers need a system to make sure they can meet these demanding delivery deadlines.
PSL Datatrack is a system with a proven track record for customers needing to meet AS9100 and ISO 9001 accreditations. By achieving this, no manufacturing business is too small to meet these exacting standards to supply fully traceable parts to any industry.
To conclude, this blog article should help distinguish the differences between MRP, MRP II, ERP and Production Control Software. Before selecting a system, you should outline what your business requirements are and which type of software meets those criteria. It is vital to ensure that whatever software you choose, it is suited to your business and not just your budget!
PSL Datatrack is a highly configurable business product where the subcontractor and PSL effectively work in partnership to ensure the customer gets maximum benefit from the system. Please do not hesitate to contact us for more information on how we could help your business.
