To leverage manufacturing productivity with MRP one has to understand where MRP came from and precisely what it means. Material Requirements Planning (MRP) began out of necessity in the early 1970s. Many MRP systems are software based. So yes, a computer and some software packages is advised. What does it mean to leverage manufacturing productivity with MRP? Three goals are in mind right off the cuff:

• Limit your on site stock, thus optimizing the space you have available.
• Planned manufacturing allowing for more efficient production.
• Materials and products are made readily accessible for production and delivery to customers.

Storing only a small amount of stock is something most manufacturers recognize as important. Even so this means walking a very thin line. Running out of material results in downtime and can cause problems like lost wages and non-productive time which can raise the manufacturer's labor costs. By planning ahead, the necessary materials can be made available much more effectively than with stockpiling. The other added advantage to this is that it will maximize your space; more room available for production and less for storage means increased money per square yard.

Planning manufacturing in advance may be problematic and, if based on prior production levels, often inaccurate. Because of this, the ability to plan an accurate production agenda and a materials list and intended labor costs is now a necessity for many manufacturers.

Having the necessary readily available when they are required is the best way to leverage manufacturing productivity with MRP. If you buy materials according to precise productivity and production information, this will increase the bottom-line, decrease wastefulness and increase floor space as well as optimize labor.

If you start to leverage manufacturing productivity with MRP you will often have 2 outputs from the majority of the MRP programs out there; schedule and ordering.

Scheduling is based on a number of key factors, all of which should be programed in, such as time spent on various production operations, material handling needs and several others. Once this is inputted the MRP program will create a production schedule for you This will only be a suggestion however and you may be able to improve upon it. This will give you a good starting point to work around.

Ordering is another recomendation that a good MRP software will make. This can also be easily augmented some based on personal knowledge. The important thing is that there is less chance of error when an ordering schedule is made. Also when there are several parts and materials coming in from different suppliers, an ordering schedule can serve to simplify the process.

Leveraging manufacturing productivity with MRP is simple and effective, and is now becoming invaluable to manufacturers. Knowing this and understanding the process in better detail will help management to use their time and that of their employees to greater effect and increase profit margins. In this way everyone is a winner.