Both MRP and MRP II have nearly the same name and both are related to manufacturing. What’s the difference between the two terms?
MRP stands for material requirements planning and it is used in the management of manufacturing processes. An MRP system can be carried out manually with paper and pencil, but it is much more efficient to use a computer system, which eliminates the chance for errors such as mistakes in data entry. MRP II stands for manufacturing resource planning and it is a method to plan the resources in a manufacturing enterprise to effectively carry out all the manufacturing processes.
An MRP system involves the manufacturing materials and how to use them most effectively. MRP II, on the other hand, is an information system that coordinates all parts of the manufacturing process, including aspects such as finance, human resources, and others, in addition to materials.
Software packages are available to carry out the functions of both MRP and MRP II. The familiar enterprise resource planning (ERP) solutions have their roots in MRP and MRP II systems. Both MRP and MRP II were created to centralize relevant business data and integrate this data throughout all the departments of an enterprise. Having real-time, updated data available allows management to make informed decisions about their business and to run their business more efficiently.
MRP and MRP II systems can be used together, separately, or with an ERP system. Businesses that have chosen to use MRP or MRP II systems have been able to control their production lines more effectively and to use real-time data to make informed business decisions. These are just a few of the benefits that MRP and MRP II systems can deliver to a business. Both provide the tools you need to streamline your business and create a more efficient enterprise.