There are several attributes that contribute to a smooth production flow of a firm. These factors are dependent on several independent resources. These have to carefully aligned and utilized in such a way that it streamlines the overall production flow. In such situations, Manufacturing Resource Planning is used.

It is an integrated method where operational and financial details are used for planning purposes. The planning is further divided into several sections. To name a few are:

Manufacturing Resource Planning
  • Product specifications
  • Quality assurance
  • Tax calculation
  • Accounting
  • Cost calculation

Resource planning is a combined effort of computers and human resources. There are several benefits to this system. To list a few are,

  1. It helps in identifying any potential glitches beforehand and helps to smoothen out unexpected production halts.
  2. Helps in planning the production from several aspects making it more reliable.
  3. Helps is collating the required resources such as raw materials, manpower and so on which is a part of the resource scheduling.
  4. A part of it includes cost control and inventory management.

Get more definitions about manufacturing resource planning (MRP II) and other ERP related terms here.


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