History of Computer Planning Systems

MRP I (1970’s) Materials Requirements Planning
MRP II (1980’s) Manufacturing Resources Planning
DRP (Late 1980’s) Distribution Resources Planning
ERP (1990’s) Enterprise Resources Planning
MRP
Inventory Data – time phased net requirements
Master Production Schedule – used actual demand
BOM – exploded to lower level requirements.

MRP – a set of techniques which used BOM’s, inventory data and the MPS to calculate requirements for materials.
• Makes recommendations to release replenishment orders for material.
• Makes recommendations to reschedule open orders when due dates and need dates are not in phase.
Provided a short–range plan to cover material requirements that were needed to make a product. Material Planning Operations analyzed demand from all operations, including:
Central and satellite distribution centers and warehouses rate–based repetitive manufactured items, process and discrete manufactured items engineer–to–order contracted items, maintenance/ repair, operational items for plant and equipment maintenance, supplier–managed inventory.

Master Production Scheduling (MPS)

A schedule of items and quantities that a company expects to manufacture. In MRP it used actual demand.

Material Planning (MRP)

Used the master production schedule, the bill of materials, and inventory records to calculate time–phased net requirements for every item, and created a plan for covering material requirements.
MRP II
Forecasting
Comprehensive formulae to plan the future
Resources Planning (CRP)
Labor and machine capacity analysis
Manufacturing Cost Accounting
Integrate costing and manufacturing
Production Activity Control
Feedback mechanisms

MRP II is a method for the effective planning of all resource of a manufacturing company. Ideally, it addresses operational planning in units, financial planning in dollars, and has simulation capability to answer what if questions. It is made up of a variety of functions, each linked together: business planning, forecasting, production planning, master production scheduling, material requirements planning, capacity requirements planning, cost accounting, shop floor control, and the execution support systems for capacity and material. Output from these systems would be integrated with financial reports such as the business plan, purchase commitment reports, shipping budget, inventory projections in dollars, etc.
Management system based on network scheduling
Organized Common sense
DRP
Independent Demand Planning
Non–manufacturing Based (Distribution)
Advanced Warehouse Operations.

Distribution Requirements Planning (DRP) Plans and controls the distribution of finished goods based upon demand. In addition, DRP provides centralized control of distribution inventories and creates a coordinated replenishment plan.
Total Business Solution
Human Capital Management
Provide Education, Training and Inspired Leadership
Process and Information Improvements
Business Process Re–engineering & Best Practices
Leveraging Technology & Innovation
Oracle, JD Edwards, Microsoft, iQ4Bis, Lean Enterprise Intelligence System® and Lean Execution®
ERP
• Multi–Branch / Plant Planning
• Ties the entire business together
• Integrates MPS Automatically
• Pull System versus Push System
• Allows demand to flow through the system thus reducing inventory
• Forward Planning versus Rearward Planning.

The Manufacturing and Distribution Planning system is a part of Enterprise Requirements Planning and Execution (ERPx). ERPx allows you to coordinate your inventory, raw materials, and labor resources to deliver products according to a managed schedule. This closed–loop manufacturing system helps manage your data and optimize resources across your entire manufacturing and distribution logistics environment. ERPx formalizes the activities of company and operations planning, as well as the execution of those plans.