What Is MRP in SAP?

Manufacturing Resources Planning (MRP) is a component of SAP's Enterprise Resource Management (ERP) systems. MRP is often implemented under an umbrella of other business management systems working to optimize supply chains, accounting, and Customer Relations Management (CRM).

History

SAP was formed in Germany by ex-IBM engineers with a vision of real-time business data processing in the 1970s.Through the 1980s and 1990s, SAPs products evolved to include MRP.

Definition

MRP combines people, computer systems and manufacturing methods to to help plan and optimize manufacturing resources at multiple levels of a company's manufacturing operations.

Function

MRP uses real-time manufacturing data to generate automated supply orders and maintain accurate product shipping schedules. In many cases, MRP systems contain embedded work process and procedure documentation to help employees perform day-to-day tasks.

Types

MRP systems are often implemented as one of several types of lean manufacturing systems. Common lean systems that can be implemented with the help of an ERP system include Kanban, Kaizen, Just in Time (JIT), and 5S (Sort, Set in order, Shine, Standardize, and Sustain) systems.

Business Sizes

MRP systems have historically only been implemented in large manufacturing operations with complex production lines, supply chains, and distribution networks. However, SAP and many other ERP software suppliers are now offering systems optimized for small and medium sized manufacturing ventures.

References

• SAP Global: History
• Toolbox for IT: Manufacturing Resource Planning
• Lean Manufacturing Japan: MRP (Materials Requirements Planning)

Resources

• Read this Article in Spanish
• Graphic Products: What is 5S?
• Value Based Management: Kaizen Philosophy & Kaizen Method
• Graphic Products: What is Kanban?