INTRODUCTION: "To manage is to forecast, and plan, to organise, to command, to co-ordinate and to control" - Henri Fayol.
In this report three forms of planning that are employed by companies to organise their resources are examined. The three types are: 1. MRP - Material Requirements Planning 2. MRPII - Manufacturing Resource Planning 3. ERP - Enterprise Resource Planning.
Each one of the above was examined by definition, the way they differ to the others, and the advantages and disadvantages associated with them.
To manage an organisation is essentially to do as Henri Fayol suggests above and MRP, MRPII and ERP help to do so. They each have their own merits and demerits and its up to a company to decide which one suits their needs more or will be more effective for them.
By planning effectively, a company wishes to achieve their business goals efficiently so that customers are satisfied and the company makes a profit and can therefore grow.
One of the three above should enable a company to accomplish this.
In implementing any of aforementioned, the company must be prepared to make some changes. As with all new procedures carried out extensive research and training must be undertaken to ensure a successful result.
MRP: Material Requirements Planning provides a logical and easily understood approach to find out what goods need to be produced, when and the related tools and techniques need to do it. It focuses on the co-ordination of materials to meet production requirements while minimising inventory and preventing shortages. Fundamentally it is knowing when to order and how much to order.
With regard to timing and knowing when to order, the system always orders as late as possible, never before it needs to while never planning to be out of stock.