THE MRPII SYSTEM – Coursework Example

Integrated Manufacturing Resources Planning Integrated Manufacturing Resources Planning Material requirement planning (MRP) is a technique that aids an organization manages manufacturing processes. It involves plans on production that ensures the necessary production materials are available, manufacturing activities are well outlined, a clear delivery schedules is in place as well as the purchasing activities. It also assists in controlling the inventory by ensuring there is maintained as low as possible (Chu et al, 2000). Integrated manufacturing resources planning (MRP II), on the other hand, is a computerized system that unlike material requirement planning it includes additional procedures such as labor, marketing and finances in managing manufacturing processes. A more integrated manufacturing resource planning is more effective than a material requirement planning.
Integrated manufacturing resource planning could be considered to have evolved from material requirement planning system only that it is designed to consolidate, integrate and process most of the information involved in manufacturing actives. It tries to integrate other functional areas in the manufacturing system. It is beneficial to an organization in the following three ways (Turek, 2014). MRP II brings out standardize business processes using automated methods that in turn improves accuracy and control of inventories. It also enables organization improve in scheduling which in turn help establish productive relationships between them and suppliers. Secondly, MRP II helps improve design and engineering which is translated in the quality and quality control of the product. Lastly, in the finance and cost the organization is able to reduces the working inventory capital and improve cash flow by making quick deliveries. However, it is also important to note constrains involved in implementing MRP II. The information must be accurate since any errors made will automatically be reflected in the planning process.
In conclusion, the organization should also consider using a enterprise resource planning (ERP) which is an extended management system of MRP II that further integrates processes such as distribution process, supply chain, price and service management. However, it is clear that the benefits of introducing MRP II in place of MRP outweigh any disadvantages that may be experienced.
References
Chu, B, Tolone, W., Long, J., Wilhelm, R., Peng, Y., & Matthews M. (2000). Towards Intelligent Integrated Manufacturing Planning-Execution. The International Journal of Agile Manufacturing. Retrieved from [PDF] http://aisl.umbc.edu/resources/242.pdf 8th 2014
Turek, B. (2014). Advantages & Disadvantages of MRP II. Retrieved from http://www.ehow.com/info_8401517_advantages-disadvantages-mrp-ii.html#ixzz319t40ZFj 8th 2014