What Is MRP | Material Requirements Planning

MRP stands for Material Requirement Planning. Integrated with ERP, MRP makes it possible to keep company resources under control and ensure that materials are never lacking in production.
According to the dictates of Lean Manufacturing MRP and ERP should only be used for the medium and long term. Pull system tools such as Kanban should be used for daily scheduling.
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✏️ Here is the transcript of the video
MRP stands for Material Requirements Planning and is a software used in manufacturing and production.
Its main purpose is to manage the supply chain and ensure that the right materials are available at the right time to produce a product.
▶ How MRP helps companies
MRP helps companies keep track of their inventory levels and forecast future demand for their products.
It also considers the lead time required to receive materials from suppliers and the time it takes to manufacture a product.
Based on this information, MRP generates a production schedule and ensures that there are enough materials to meet the production schedule.
MRP also helps in reducing inventory costs by optimizing the use of raw materials and reducing the amount of unused or slow-moving inventory.
It also helps in reducing lead time by identifying the most efficient production schedule and reducing the amount of time spent waiting for materials to arrive.
It is very important to emphasize that a correct LEAN approach suggests using MRP software to make medium- and long-term forecasts and manage short-term production with pull and visual management systems, e.g. the Kanban System.
▶ MRP and ERP
MRP can be integrated with other systems such as ERP (Enterprise Resource Planning) to provide a complete picture of a company's operations.
This integration helps in reducing manual data entry and eliminates errors that can occur when data is entered manually.
▶ Conclusions
In conclusion, MRP is a crucial tool for companies in the manufacturing and production industries.
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