{"id":830,"date":"2017-11-02T15:48:05","date_gmt":"2017-11-02T15:48:05","guid":{"rendered":"https:\/\/www.mrpeasy.com\/blog\/?p=830"},"modified":"2023-01-24T13:45:00","modified_gmt":"2023-01-24T13:45:00","slug":"mrp-system-3","status":"publish","type":"post","link":"https:\/\/www.mrpeasy.com\/blog\/mrp-system-3\/","title":{"rendered":"MRP System Series #5: What Makes a Good MRP System?"},"content":{"rendered":"\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"960\" height=\"720\" src=\"https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2020\/12\/MRP_System_No.2.jpg\" alt=\"\" class=\"wp-image-6946\" srcset=\"https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2020\/12\/MRP_System_No.2.jpg 960w, https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2020\/12\/MRP_System_No.2-300x225.jpg 300w, https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2020\/12\/MRP_System_No.2-768x576.jpg 768w\" sizes=\"auto, (max-width: 960px) 100vw, 960px\" \/><\/figure>\n\n\n\n<p>An <a href=\"https:\/\/www.mrpeasy.com\/mrp-system\/\">MRP system<\/a> is basically an ERP system for manufacturers. It is the central application for managing core operations, such as production planning and reporting, procurement, sales and inventory.<\/p>\n\n\n\n<!--more-->\n\n\n\n<p>The idea is to have everyone under one roof in a single digital room. Firstly, to have an accurate and reliable inventory overview in real-time through automation of routine tasks, and secondly, to have better communication, so it would be possible to make more informed decisions.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #343333;color:#343333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #343333;color:#343333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.mrpeasy.com\/blog\/mrp-system-3\/#A_good_MRP_system_should_be\" >A good MRP system should be:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.mrpeasy.com\/blog\/mrp-system-3\/#Overall_a_good_MRP_system_benefits_the_business_and_helps_to_realize\" >Overall, a good MRP system benefits the business and helps to realize:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.mrpeasy.com\/blog\/mrp-system-3\/#The_critical_core_functions_of_a_good_MRP_system_are\" >The critical core functions of a good MRP system are:<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.mrpeasy.com\/blog\/mrp-system-3\/#MRP_system_series\" >MRP system series:<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"A_good_MRP_system_should_be\"><\/span><strong>A good MRP system should be:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ol class=\"wp-block-list\"><li><strong>Easy to use<\/strong>: It\u2019s a tool that should make everyone\u2019s life simpler. It is going to save time and money, if even the least tech-savvy dinosaur can be taught to use it in a reasonable timeframe, or even better, can learn it on his\/her own. Manufacturing workers are often not highly qualified in IT (why should they be?), so the simpler the tool is to understand and apply, the better.<\/li><li><strong>Easy to maintain: A<\/strong>gain, the main objective of a manufacturing company is to produce goods and earn money from the sales of these goods. Therefore, a company shouldn\u2019t need a separate IT team, or department, just to keep one software tool running \u2013 this is a big expense.<\/li><li><strong>Easily available:<\/strong> This tool should be available when you need it and where you need it. It\u2019s of limited use if it sits on a desktop computer in an office 100 yards from the shop-floor. It needs to be accessible &#8211; right on spot where\/when needed, within everyone\u2019s\u2019 reach &#8211; a single connected, real-time system with many access points.<\/li><\/ol>\n\n\n<div class=\"banner-v2\">\n    <p class=\"banner-v2__desc\">Looking for an easy-to-use and affordable MRP system?<\/p>\n    <a class=\"banner-v2__link\" href=\"https:\/\/www.mrpeasy.com\/sign-up\/\" target=\"_blank\" data-ga-event=\"blog_signup_banner_blue\">Try MRPeasy for free<\/a>\n<\/div>\t\t<style>.banner-v2 {\n    float: right;\n    display: flex;\n    flex-direction: column;\n    justify-content: center;\n    align-items: center;\n    padding: 40px 32px;\n    gap: 16px;\n    width: 356px;\n    height: 205px;\n    background: linear-gradient(199.68deg, #6084E5 13.17%, #5FA7DD 82.1%);\n    border-radius: 4px;\n    margin-left: 12px;\n    margin-bottom: 12px;\n    margin-top: 15px;\n}\n\n@media (max-width: 767.98px) {\n    .banner-v2 {\n         width: 100%;\n         height: 173px;\n         margin-bottom: 0;\n         margin-left: 0;\n    }\n}\n\n.single__content p.banner-v2__desc {\n    margin: 0 !important;\n}\n\np.banner-v2__desc {\n    width: 292px;\n    font-style: normal;\n    font-weight: 700;\n    font-size: 22px;\n    line-height: 29px !important;\n    text-align: center;\n    color: #FFFFFF;\n    margin: 0 !important;\n    order: 0 !important;\n}\n\n.single__content a.banner-v2__link {\n    color: #FFFFFF !important;\n}\n\n.single__content a.banner-v2__link:hover {\n    color: #003557 !important;\n}\n\na.banner-v2__link {\n    display: flex;\n    justify-content: center;\n    align-items: center;\n    width: 181px;\n    height: 51px;\n    padding: 18px 0;\n    border-radius: 4px;\n    background: #003557;\n    font-weight: 700;\n    font-size: 16px;\n    color: #FFFFFF !important;\n    text-decoration: none !important;\n    order: 1 !important;\n}\n\n.banner-v2__link:hover {\n    background: white;\n    color: #003557 !important;\n}<\/style>\n\t\t\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Overall_a_good_MRP_system_benefits_the_business_and_helps_to_realize\"><\/span><strong>Overall, a good MRP system benefits the business and helps to realize:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ol class=\"wp-block-list\"><li>Better communication and decisions<\/li><li>Higher productivity<\/li><li>Shorter lead times<\/li><li>Lower production cost<\/li><li>Less human-error<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_critical_core_functions_of_a_good_MRP_system_are\"><\/span><strong>The critical core functions of a good MRP system are:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ol class=\"wp-block-list\"><li>Material planning and production scheduling<\/li><li>Production control and shop-floor reporting<\/li><li>Inventory management<\/li><li>Procurement<\/li><li>Sales and order fulfillment<\/li><li>Product costing<\/li><\/ol>\n\n\n\n<p>The manufacturing software is not only for production or inventory planning; it is also for other operations. <strong>Here\u2019s a breakdown of the benefits that people in different roles receive:<\/strong><\/p>\n\n\n\n<ol class=\"wp-block-list\"><li><strong>Sales<\/strong>: Has a real-time overview of the status of every order, plus can accurately estimate delivery time and cost with a click of a button, which will save hours and headaches.<br>Plus, once the customer calls, there\u2019s no need to run to the production manager and upset everyone &#8211; just reply: \u201c<em> Jones, I have been keeping my eyes on your order, it will be shipped on time. It is in production right now. Thank you for ordering!<\/em>\u201d<\/li><li><strong>Production manager<\/strong>: Can easily schedule operations knowing that work stations are not over booked, materials will be available and procurement notified, if necessary. A real-time overview of the production schedule, inventory, demand and the shop-floor guarantee better decisions.<\/li><li><strong>Shop-floor worker:<\/strong> Knows what needs to be done, where and in which order. Paper-free reporting saves time and provides clarity (perhaps, above all, no more deciphering of illegible handwriting!).<\/li><li><strong>Procurement<\/strong>: Knows what needs to be procured, based on low inventory levels or demand from sales or production. The software displays purchase requirements and can even automatically generate purchase orders. Having vendor information and purchase terms (prices, lead times, etc.) in one place avoids many mistakes.<\/li><li><strong>Inventory: <\/strong>As everyone\u2019s actions directly affect the inventory, all information is in constant movement. There is a clear overview of what is on hand, what is available, what is booked, what is expected to arrive, when, what is already promised to someone, etc. Plus, information, such as where are items located, in what batches, what is the history of items etc, is constantly updated \u2013 real time.<\/li><li><strong>Management and Finances<\/strong>: Have clear real-time reports on stock movements, stock balance, product cost, COGS and cost-profit information. Even more, the MRP system accurately estimates product cost before production and, once in production, the system automatically calculates the actual cost based on shop-floor reporting and actual material consumption.<\/li><\/ol>\n\n\n<div class=\"banner-v1\">\n    <div class=\"banner__text\">\n        <div class=\"banner-v1__title\">Take full control of your manufacturing operations<\/div>\n        <div class=\"banner-v1__desc\">MRPeasy users report a 54% average improvement in the overall performance of their manufacturing business.<\/div>\n        <div><a class=\"banner-v1__link\" href=\"https:\/\/www.mrpeasy.com\/sign-up\/\" target=\"_blank\" data-ga-event=\"blog_signup_banner_white\">Try for free<\/a><\/div>\n    <\/div>\n    <div class=\"banner__img\">\n        <img decoding=\"async\" src=\"https:\/\/www.mrpeasy.com\/blog\/wp-content\/themes\/mrpeasy\/assets\/images\/banner.svg\" alt=\"banner\">\n    <\/div>\n<\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"MRP_system_series\"><\/span><strong>MRP system series:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><a href=\"https:\/\/www.mrpeasy.com\/blog\/mrp-system-4\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">MRP System Series #7: The right attitude for MRP system implementation<\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/www.mrpeasy.com\/blog\/manufacturing-software-3\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">MRP system Series #6:&nbsp;Implementing Manufacturing Software. Benefits from Process Changes<\/a><\/p>\n\n\n\n<p>MRP System Series #5: What Makes a Good MRP System?<\/p>\n\n\n\n<p><a href=\"https:\/\/www.mrpeasy.com\/blog\/mrp-system-2\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">MRP System Series #4: How Much Detail to Input into the MRP System?<\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/www.mrpeasy.com\/blog\/manufacturing-software-2\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"MRP System Series #3: Top 5 Mistakes in Implementing Manufacturing Software (opens in a new tab)\">MRP System Series #3: Top 5 Mistakes in Implementing Manufacturing Software<\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/www.mrpeasy.com\/blog\/mrp-system-mrp-erp\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">MRP System Series #2: What is the difference between MRP and ERP?<\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/www.mrpeasy.com\/blog\/mrp\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">MRP System Series #1: What is MRP?<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>An MRP system is basically an ERP system for manufacturers. It is the central application for managing core operations, such as production planning and reporting, procurement, sales and inventory.<\/p>\n","protected":false},"author":1,"featured_media":834,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[90,94],"tags":[17],"class_list":["post-830","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-choosing-a-software","category-tips","tag-mrp-system"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>MRP System Series #5: What Makes a Good MRP System? - MRPeasy<\/title>\n<meta name=\"description\" content=\"What do you really need in a good MRP software? Take a look at what are the necessary functions and what are complementary.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.mrpeasy.com\/blog\/mrp-system-3\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"MRP System Series #5: What Makes a Good MRP System? - MRPeasy\" \/>\n<meta property=\"og:description\" content=\"What do you really need in a good MRP software? 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