ERP Business Processes Contained in the PLANNING OF MATERIAL REQUIREMENTS (MRP) ERP Software Module
4ETO:
4
ETO
Home PageWhat is ETO?
ETO Links
Suggest a Link
Contact 4
ETO
Previous Page
ERP:
ERP Software Modules
ERP Business Processes
ERP Dictionary A-Z
ERP Dictionary by Category
Papers & Articles:
Index of Articles
Supply Chain Optimisation
S&OP and SCM
SCO Software
CIM Seminar
ERP Training
ERP Education
To view the business processes supported under a different ERP software system module view the ERP Software Modules page and click the link to the appropriate module. The ERP business processes listed on this page pertain to PLANNING OF MATERIAL REQUIREMENTS (MRP).
ERP software systems comprise a variety of software modules, each of these ERP modules houses a set of business processes that the particular ERP software package supports. A useful starting point for compiling an ERP software system spec / RFQ / RFI / ITT is listing the required system functionality, or business processes, that an ERP software system would need to support in order to be considered as viable for ERP system selection and implementation. The list of ERP business process listed below relates to the PLANNING OF MATERIAL REQUIREMENTS (MRP) module of ERP software packages. View the high level ERP Software Modules page to see a list of other ERP system modules that encompass the various business processes required of a modern integrated ERP software package.
The standard ERP system business processes for PLANNING OF MATERIAL REQUIREMENTS (MRP) are tabulated later on this page - the ERP business processes are descibed in more detail than on the ERP System Processes page. Next to each description of the ERP processes for PLANNING OF MATERIAL REQUIREMENTS (MRP) here are the explanations as to why each particular business prcess may be important / relevant.
Central to any ERP software package is the PLANNING OF MATERIAL REQUIREMENTS (MRP) software module - it is the cornerstone of an effective and integrated ERP software package. The below list of business processes can be used as first pass list of ERP software system functional requirements for your business in the area of PLANNING OF MATERIAL REQUIREMENTS (MRP) that can be utilised to arrive at a broad brush ERP system spec of required functionality to assist your ERP selection process and subsequent implementation.
PLANNING OF MATERIAL REQUIREMENTS (MRP) ERP Business Processes |
|
ERP Business Process |
ERP Process Explanation |
| Ensure that appropriate order policies for materials are in operation (ROP, 2-bin, Kanban, lot for lot, period of supply, economic batch quantities). | The MRP style of planning material requirements is not appropriate to all situations. Other approaches to material management may be better (i.e. simpler / cheaper), especially for less expensive, more common inventory items. |
| Calculate the material requirements. | This is undertaken to determine how many of which parts etc. are required to be purchased / produced by what dates. (This may be done using regenerative or net change processing.) |
| Change existing purchasing and manufacturing orders as a result of planning. | Carried out to reflect changing priorities as a result of new orders being incorporated into the plans (i.e. rescheduling existing orders may be required). |
| Generate shop (manufacturing) orders. | Creation of planned manufacturing orders when they are due for appropriate authorisation or automatic release. |
| Maintain details of lead times, (manufacturing and purchasing), batch sizes and buffer stocks. | Carried out in order to retain all pertinent information for the planning of material requirements which needs to be handy for planners and to communicate to manufacturing and purchasing. |
| Manage and confirm firm planned orders. | Ensure that firm planned customer orders take precedence and are not altered in any replanning activities. This can also helps with answering order enquiries. |
| Monitor performance of the planning of material requirements function. | Carried out to see how quickly and accurately the material requirements are planned. Measured by parts availability, shortages and accuracy of information and so on. |
| Maintain the MRP system parameters relating to time horizons. | Time horizons are essential to MRP as they are used to mark out when changes can be made and actions should be taken (i.e. allocation horizon (when plans committed to specific orders), overdue horizon (time before late orders are chased), release horizon (when orders are physically released) and review horizon (total MRP which is considered)). |
| Operate MRP system. | |
| Trace items back to the ultimate parent (i.e. pegging). | Carried out by using single-level "where-used" capability to trace sources of parts (to find out why a particular part must be expedited, what happens if it is not done, which other orders are impacted by the changes etc.) This allows shuffling, replanning and expediting without having to alter the MPS. |
If you would like to comment on or add to this page about the PLANNING OF MATERIAL REQUIREMENTS (MRP) module of ERP System Processes or have any questions about ERP software selection or ERP system implementation then please complete the form below and we will do our best to help.
Note that after submitting the form this page about the ERP business processes associated with the 'PLANNING OF MATERIAL REQUIREMENTS (MRP)' module of ERP software packages will reload.
The
4 ETO
web site is being used to fulfil three purposes, firstly, it is a vehicle
to recruit engineer to order manufacturers to take part in the research project
concerned
with improving how ETO manufacturing companies plan production and manage their
jobs / projects. Secondly, the
4ETO
web site is being used a means of disseminating the results of the research
project as well as good practices employed by successful engineer-to-order
manufacturers. Thirdly, the
4ETO
site will be developed into a portal site for ETO manufacturers. |
Please contact Austen Jones with any questions, comments or suggestions.
Last Updated: 27-Mar-2008