Industry Night: Manufacturing – MRP & Production Planning Software
The manufacturing industry has become more competitive than ever—trying to keep costs low and efficiencies high is of the utmost importance in today’s economic climate. In order to drive efficiencies throughout the production process, its important to deploy the right manufacturing software for your company.
Depending on what you make, when you make, what you buy and when you buy, you will need material requirements planning (MRP) and/or production planning and scheduling software.
However, it can be confusing to distinguish between the two. Production planning and scheduling software uses more complex mathematical models, making it more sophisticated. While both forms of software handle bill of materials (BOM), inventory control, procurement, production forecasting, job costing, procurement scheduling, process scheduling and finite capacity planning, only production planning and scheduling software is capable of finite capacity scheduling, production planning and workflow visualization.
MRP software is ideal for manufacturers with high volumes of similar products, or few products, but can struggle with production planning, frequent quantity change and large variation in the type of products produced. Production planning and scheduling software addresses some of these shortcomings, but works in conjunction with MRP software and is more concerned with operations rather than materials. Thus, production planning and scheduling software is made for expanding the functionality of MRP software, focusing on factors in production limitations, modeling multiple production scenarios, accounting for lead times for ordered parts and prioritizing jobs from highest to lowest profitability.
Both MRP and production planning and scheduling applications are used to create more efficient planning processes, but the amount of detail that each application can handle differs, so it’s important to understand your needs as a manufacturer vs. the capacity of the software.