DIFFERENCE BETWEEN ERP & MRP

1. GROUP MEMBERS
 ANUSKHA DUBAL (03)
 NIKHIL BISHT (13)
 ANIL SHARMA (10)
 HARDEEP SINGH (06)

3. WHAT IS MRP?
 Computerized Inventory Control
 Production Planning System
 Management Information System
 Manufacturing Control System

4.  Job Shop Production
 Complex Products
 Assemble-to-Order Environments
 Discrete and Dependent Demand Items

5.  Inventory reduction.
 Reduction in production & delivery time.
 Increased efficiency.
 Faster response to market changes.
 Improved labour & equipment utilization.
 Better inventory planning & scheduling.
 Reduced inventory levels without reduced customer
service.

6. Master
Production
Schedule
Material
Requirements
Planning
Product
Structure
File
Item
Master
file
Planned
Order
Release
Work
orders
Purchase
Orders
Rescheduling
notices
OVERVIEW OF THE MRP SYSTEM

7. It collects information through….
1. Master Production Schedule (MPS),
2. The Bill of Material (BOM), ingredients for the end
product,
3. Inventory Data,
4. Balance on Hand (BOH),
5. Scheduled receipts,
6. Purchasing/Fabrication lead times

8.  First, the system helps ensure that the appropriate
materials are available for production and the
necessary products are available for customers to
avoid shortages.
 Second, MRP reduces waste by maintaining only the
lowest possible materials and product levels in stock.
 Lastly, an MRP system helps plan manufacturing
functions, delivery schedules and purchasing.

9.  Master Production Schedule
 Product Structure File
 Inventory Master File

10.  Bill of Materials:
It is a materials list that provides information useful to reconstruct the
manufacturing process. It is the master product definition that
contains “as designed” information

11.  Schedule of Finished Products
 Represents Production, not Demand
 Combination of Customer Orders and Demand
Forecasts
 What Needs to be Produced

12.  On-Hand Quantities
 On-Order Quantities
 Lot Sizes
 Safety Stock
 Lead Time
 Past-Usage Figures

13.  Is an information system that attempts to
integrate all departments and functions
across a company onto a single computer
system that can serve all those different
departments particular needs.
 Some of ERP’s functions include:
 Bookeeping and Accounting
 Human resource management
 Production planning
 Supply chain managemnt

14.  Scalability
 Improved Reporting
 Data quality
 Better CRM
 Improved data access
 Lower cost of operation
 Reduced complexity

15. POINTS MRP ERP
INDUSTRIES Manufacturing Company Any Company
BUSINESS PROCESS Refers to material planning
process
Refers to all business
process like manufacturing,
planning, finance,
inventory, order
management, etc.
TECHNOLOGY Includes business process-
enabling software
Includes supporting
technology such as
networks, databases and
hardware.
PROJECT SCOPE Narrow impact Broader impact