Material Requirements Planning is a time phased priority-planning technique that calculates material requirements and schedules supply to meet demand across all products and parts in one or more plants.
Information Technology plays a major role in designing and implementing Material
Requirements Planning systems and processes as it provides information about manufacturing needs (linked with customer demand) as well as information about inventory levels. MRP techniques focus on optimizing inventory. MRP techniques are used to explode bills of material, to calculate net material requirements and plan future production.
This report focuses on MRP and MRPII systems.MRPII stands for Manufacturing Resource Planning and represents an extension of MRP.MRPII points to computer based planning and scheduling designed to improve management’scontrol of manufacturing and its support functions. MRPII maps an extension of MRP tocapture all manufacturing requirements including materials, human resources, scheduling,etc.
History
Prior to MRP, and before computers dominated industry, reorder-point/reorder-quantity (ROP/ROQ) type methods like EOQ (Economic Order Quantity) had been used in manufacturing and inventory management. In 1964, Joseph Orlicky as a response to the TOYOTA Manufacturing Program, developed Material Requirements Planning (MRP). First company to use MRP was Black & Decker in 1964, with Dick Alban as project leader. In 1983 Oliver Wight developed MRP into manufacturing resource planning (MRP II).[1] Orlicky's book is entitled The New Way of Life in Production and Inventory Management (1975). By 1975, MRP was implemented in 150 companies. This number had grown to about 8,000 by 1981. In the 1980s, Joe Orlicky's MRP evolved into Oliver Wight's manufacturing resource planning (MRP II) which brings master scheduling, rough-cut capacity planning, capacity requirements planning, S&OP in 1983 and other concepts to classical MRP. By