Definition

Manufacturing resource planning (MRP II)

Part of the Business software glossary:

Manufacturing resource planning (MRP II) is an integrated method of operational and financial planning for manufacturing companies. MRP II serves as an extension of MRP (closed loop manufacturing resource planning, also abbreviated as CLMRP).

The typical MRP II system employs a modular organizational structure. Modules keep track of, and regulate, specific characteristics and functions of the entire organization. Examples include, but are not limited to, the following:

  • Product design
  • Product specifications
  • QC (quality control)
  • QA (quality assurance)
  • Shop floor control
  • Order management
  • Purchasing
  • Inventory
  • Cost calculation
  • Cost reporting
  • General accounting
  • Cash flow
  • Tax calculation
  • Tax payments

The MRP II process is carried out by a synergistic combination of computer and human resources. The MRP II differs fundamentally from point contact planning, in which individual characteristics and functions have their own dedicated systems.

This was last updated in August 2012
Contributor(s): Stan Gibilisco
Posted by: Margaret Rouse

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