The Differences Between ERP VS MRP

Some of you are probably already familiar with ERP or Enterprise Resource Planning. But what about MRP? Have you ever heard about MRP? MRP stands for Material Requirements Planning. This software system involves the right production planning and schedule and supply controlling. It is an integral part of the manufacturing process management. Most MRP systems are software-based, but this system is also able to be done manually. So, what are actually the differences between ERP VS MRP?


ERP and MRP are related to each other in businesses. ERP is the development of MRP II and MRP II is the second generation development of MRP which adds additional factors such as long-term planning, master scheduling, shop floor control, and rough-cut capacity planning. ERP and MRP have several similar functions, but ERP has some other functions which are not included in MRP. ERP has the ability to integrate various types of data which are collected from different departments of a company. While MRP is an independent program, so that it is not designed to integrate the types of data which are not used in the material requirements planning.

ERP and MRP are also different in terms of technical requirements or database relational, the use of object-oriented programming languages, computer software techniques that help their development tools, servers, and different system capabilities. Another difference is that MRP only calculates material planning projections based on the explosion stage from the bill of material. On the other hand, the ERP system is able to calculate all of the business management systems, and philosophy and evaluation at all levels. ERP system knowledge has a purpose to connect requirements and supply planning. So that resources are able to be used as effective and efficient as possible which are owned by the producers, suppliers, and consumers. While MRP system has a purpose to find out the components and materials needed in order to fulfill the needs of production planning.

MRP is basically a solution tool that is used in production planning and also in supply controlling. MRP system combines data and information from the production schedule with the data from inventory and bill elements which are needed to build a product. While ERP is basically about how to manage the available resources in a business or company. ERP system is recognized for coordinating resources, information, and procedures in a business or a company. This system is a general database that offers interface, figures, and facts in every division in an organization or company. ERP includes a number of areas in a company, including human resources. Human resources in this term mean payroll, timesheets, and training. The system also involves supply chains which need purchasing, scheduling, and supply controlling; project management that includes time and cost management, and many more.
ERP system is commonly used in a lot of companies because it offers a lot of benefits. This system is considered to be able to offer immortal solutions for process management and operational activities. Those are the differences between ERP VS MRP.

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