Materials Management

Materials Management

1. ERP

   • Definition of ERP
     • ERP is a software system that helps you manage your entire business, including finance, human resources, manufacturing, supply chain, services, purchasing, and more.
   • Why is ERP important?
     • Sometimes described as "the central nervous system of an enterprise," an ERP system provides the automation, integration and intelligence essential to efficiently run all day-to-day business operations. Most or all of an organization's data must reside in the ERP system to provide a single source of truth across the business.
   • How do ERP systems work?
     • An ERP system - also called an ERP suite - is composed of integrated modules or business applications that talk to each other and share a common database.

2. MRP 1 y 2

   • MRP I and MRP II: What are they and how do they differ?
     • Any company requires planning for all levels of production, as well as impeccable control of costs, product or service quality and processes.
   • How did MRP come about?
     • In the mid-1960s, industries in the United States went through a period of tremendous growth. As a result, many companies producing to fill small orders found themselves, in the blink of an eye, with a large potential market. However, the great ocean that separated the continents caused an unusual problem for the growing industries: How could they meet all this demand without large investments? -Remember that during those years, many companies were still small.
       • What is MRP I?
         • The acronym MRP has different meanings for each problem. As a result, there are MRP I and MRP II. MRP I translates as Material Requirements Planning. Therefore, it is a system that allows to look at production and material calculation. MRP I is closely related to the procurement of materials for companies, so it is defined as a kind of automation of inventory replenishment.
         • What are the differences between MRP I and MRP II?
           • Efficiency The use of any of these systems usually depends on the complexity of the company's needs. However, MRP II is considered the best option, because it is the most current (with a difference of 20 years with MRP I). If MRP II is chosen, several problems are solved, from the delivery of the finished product to the arrival of the raw material in the inventory. On the other hand, when the investment is extremely high or if the purchasing or inventory needs are very simple, MRP I is the right choice.
   • What is MRP II?
     • MRP II stands for Manufacturing Resource Planning, a system that goes beyond MRP I, as it allows anticipating any kind of future needs of the company based on the purchasing history. In other words, it is a system that, rather than being based on automating purchases, also generates lists of suggestions.

3. MPS

   • Companies need to keep control of certain aspects related to the products to be manufactured, among them to list when they will be produced and how many products will be manufactured. Precisely, it is the Production Master Plan (PMP) the program that will be in charge of listing all these elements. Therefore, it is crucial for production planning, since it defines the delivery dates of the products and then calculates how many units can be manufactured in a given time.
     • What is the MPS?
       • The Master Production Schedule, also known as Master Production Schedule or MPS, is a schedule that shows what products will be produced and specifies in what quantities over a period of time. It is a schedule generated from the disaggregation of aggregate production planning, which will be responsible for guiding production actions over approximately 6 to 12 months normally on a weekly basis, taking into account existing orders. In other words, the master production plan is a schedule containing everything that will be produced and when it will be produced.
   • Benefits
     • 1. Optimize production capacity For the production linkage to be really efficient, it must be planned. Therefore, the master production schedule through calculations made thanks to high technologies, accounts for the time, quantity and personnel capacity available to carry out this production. In addition, the master production schedule tries to align the production by giving priority to the most urgent work orders in order to optimize the entire production flow through well-defined steps. 2. Avoid losses It is important to be clear that without prior planning, any company or industry could have huge financial losses, both in the delivery of products and in their respective manufacturing.