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Manufacturing (MRP)
Erwin van der Ploeg Erwin van der Ploeg 3 min read

What is MRP I and MRP II?

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What does MRP mean? MRP stands for Material Requirements Planning, or planning the material requirements for producing products.

MRP is often part of a ERP-system in which MRP integrates into stock and purchasing. The basis of an MRP system is the BoM, which stands for Bill of Material. The BoM contains the raw materials, components that are necessary for producing the end product. The BoM also determines which routing the production process goes through.

Explanation MRP1 and MRP2 scheme

MRP I

Plan the material requirements

With MRP I, it remains with calculating and planning which raw materials are needed at what time. Raw materials themselves can also be semifinished products, but ultimately the calculation leads to the purchase of raw materials.

MRP II

​Plan your production process

MRP II goes much further. MRP II contains all the functions of MRP I, but adds important components. The abbreviation is the same, but has a different meaning. MRP I is about material needs, but MRP II stands for Manufacturing Resource Planning. It is no longer just about planning enough material, but it encompasses planning the entire production process.. 

Machine planning

MRP II adds functions for managing the machines. What is the availability, capacity and effectiveness of the machine is recorded to make a better planning of the production of the end product. 

PLM

Use is made to change the composition or production method of a product Product Lifetime Management (PLM). A PLM is often part of MRP II in order to plan and manage changes, but also to be able to track them historically.

Quality

Quality is also a part of MRP II. Often, control points are built into the production process, and checks are performed cyclically, randomly, or periodically. The results of the quality control are recorded in the system or can lead to an immediate production halt to carry out corrections directly.

Time registration

Based on the BoM, it is known in advance which raw materials/components are used for production, as well as which people and machines are used. Based on this data, it is possible to make a preliminary calculation of the cost price of the product to be produced.

By adding time registration to the production process, it is possible to measure the effectiveness of people and machines and to make a subsequent calculation of the produced product.

Odoo MRP II

Odoo is all MRP II. Odoo has succeeded in integrating all the necessary functionalities Odoo and that simple and clear. Odoo MRP has been expanded with Odoo Quality, Odoo PLM and Odoo Maintenance, together they form a complete MRP II system.

Erwin van der Ploeg

Erwin van der Ploeg

Algemeen Directeur

Erwin van der Ploeg is the owner of Odoo Experts and helps companies work smarter with Odoo. As an entrepreneur and Odoo specialist, he writes about Odoo, ERP, AI, automation, and digitalization. In doing so, he combines years of practical experience with a healthy dose of stubbornness and a clear vision: software should make processes simpler, not more complicated.

Expertise

Odoo implementation Process optimization Integrations

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