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FAQ - What functionality / modules would you expect in MRP, MRPII (Manufacturing Resource Planning) or ERP (Enterprise Resource Planning)?

The history of the development of ERP:

1960 IBM developed MRP (material requirements planning) and launched their RPS (Requirements Planning System) program.

1972 Oliver Wight, Joe Orlicky and George Plossel defined MRPII (manufacturing resource planning) which added master scheduling, sales and operations planning and capacity planning to MRP

1985 ERP (enterprise resource planning) systems introduced - MRPII plus other business functions such as human resources

1990+ APS (advanced planning systems) introduced - MRPII plus finite capacity planning and scheduling.

Typical MRP II modules

  • Bill of Materials
  • Order Management
  • Rough Cut Capacity Planning
  • Material Requirements Planning
  • Capacity Requirements Planning
  • Purchasing
  • Inventory Management
  • Shop Floor Control
  • Forecasting/ Demand Management
  • Master Production Scheduling
  • Product Costing
  • Financials (G/L, A/P, A/R)

Functionality added to MRPII to create ERP

  • Product Configuration
  • Distribution Requirements Planning
  • Quality Assurance/Management
  • Customer Service Management
  • Human Resources Management
  • Flexible Report Writer
  • Multi-site and Multi-National (Tiers 1&2)

Functionality claimed in many ERPs but usually only partial ("Best of Breed" still dominate these areas)

  • Sales and Operations Planning
  • Finite Scheduling
  • Maintenance Management
  • Warehouse Management
  • Transportation Management
  • Supply Chain Execution Management
  • Manufacturing Execution Systems

For more information see the ERP Survival Guide .