Material Requirements Planning
MRP Software for Manufacturers
Material Requirements Planning works out what to buy and make, and when. Here is how MRP works, where it stops, and what UK manufacturers add to close the gap on the shop floor.
Definition
What is Material Requirements Planning (MRP)?
Material Requirements Planning (MRP) is a planning method and software that makes sure the right materials and components are available when production needs them. MRP takes demand from sales orders and forecasts, explodes your bills of materials, checks stock, and calculates what to buy or make and when.
MRP is a planning tool. It answers the question of what should happen next week. It does not tell you which job is running right now, or whether it is running late.
How it works
How does MRP work in a factory?
Starts with demand
Takes customer orders and forecasts to determine which finished goods are needed and by which dates.
Explodes the bill of materials
Uses your BOMs to break finished items down into every component and raw material required.
Checks inventory and supply
Looks at stock on hand, open purchase orders and work in progress to see what is already covered.
Generates planned orders
Suggests new purchase orders and production orders with recommended dates and quantities.
Capabilities
Core functions of MRP
- ✓Demand and forecast handling
- ✓BOM management and explosion
- ✓Inventory and availability checks
- ✓Purchase planning and suggested purchase orders
- ✓Work order creation and rescheduling
- ✓Basic capacity checks, in some systems
- ✓Lead time and reorder point management
- ✓Supplier requirement scheduling
Benefits
Benefits of MRP for manufacturers
Fewer material shortages
Clearer visibility of what is needed and when, so jobs are not held up waiting for parts.
Reduced excess stock
Less guesswork and less over-ordering to cover uncertainty.
Smoother production
Fewer last-minute schedule changes caused by missing components.
Better supplier planning
A clear forward view of requirements and timings to share with suppliers.
Where it fits
MRP vs MES vs ERP: where does MRP fit?
MRP is the planning layer. It sits between the commercial system of record and what actually happens on the floor.
| Layer | What it does | Its job |
|---|---|---|
| ERP | Finance, sales, purchasing and high-level planning | The commercial system of record |
| MRP | What to buy and make, and when, from demand and BOMs | Planning, working from planned data |
| MES | What is actually happening on the floor right now | Execution, working from live events |
The gap
Limitations of MRP, and where you need more
- ✓MRP works from planned data, not live shop floor events
- ✓It does not show which job is actually running, or stopped, right now
- ✓It does not capture labour, machine time or quality events per operation
- ✓It struggles in high-mix environments where the plan changes daily
- ✓Job costing stays theoretical until someone reconciles it by hand
- ✓Delivery promises rely on the plan being followed, not on evidence that it was
DynamxMFG
DynamxMFG bridges the gaps between your ERP, MRP and MES
Stop losing margin to unplanned overtime, scrap and manual admin. DynamxMFG turns the hours your team spends on spreadsheets into productive capacity, and goes live in 90 days rather than 12 to 18 months.
Live in 90 days
A UK team configures DynamxMFG around how your factory actually runs, then gets you live in 90 days.
Keep your ERP
DynamxMFG sits alongside Sage, Xero, QuickBooks and Business Central rather than replacing them.
Built for SMEs
No enterprise implementation programme and no in-house IT team required.
Questions
MRP software questions, answered
What is the difference between MRP and ERP?
MRP is focused on materials: what to buy and make, and when, based on demand and bills of materials. ERP is broader business management software covering finance, sales, purchasing and inventory, and often includes MRP as one module. MRP is a function; ERP is a system of record.
What is the difference between MRP and MES?
MRP plans what should happen and when. An MES records what is actually happening on the shop floor as it happens. MRP works from planned data and an MES works from live events, which is why manufacturers running only MRP often cannot see whether the plan is being met until after the fact.
Is MRP enough on its own?
For planning materials, often yes. For running production, usually not. MRP will tell you a job should have started on Tuesday, but not that it is still sitting at the previous operation. Most manufacturers fill that gap with spreadsheets, whiteboards or an MES.
Can I keep my MRP and add shop floor tracking?
Yes. DynamxMFG adds live execution and job costing alongside your existing planning and finance systems rather than replacing them, and integrates with Sage, Xero, QuickBooks and Microsoft Business Central.
Does MRP handle changes after a job is released?
Traditional MRP typically does not allow the bill of materials to be modified once a work order has been released. DynamxMFG supports dynamic BOM modification after release, which matters for bespoke and make-to-order work where the specification changes mid-build.
How long does MRP software take to implement?
It varies widely with scope. A full ERP with MRP typically takes 12 to 18 months. DynamxMFG is designed to go live in 90 days from kick-off because it targets the shop floor rather than replacing your whole finance system.
Related reading
Read next
Background reading on MRP software from the DynamxMFG glossary and blog.
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