Production and Resource Planning (MRP) Solutions
In production processes, competitive advantage comes from the ability to make the right material available at the right time. Excess inventory ties up capital, while material shortages can stop the production line. Establishing the right balance between these two extremes no longer depends on intuition; it requires data-driven planning. As an SAP Premier Partner, Hitsoft helps businesses use SAP Business One’s MRP capabilities to manage the entire production cycle on a single system, from material requirements planning and machine capacity management to workforce scheduling and financial reporting.
What Is MRP?
Material Requirements Planning (MRP) is a planning methodology that brings together production orders, sales orders, and inventory data to automatically calculate which materials are needed, when they are needed, and in what quantities.
In practice, there are two maturity levels:
- MRP — Material Requirements Planning
MRP uses the Bill of Materials (BOM), current inventory levels, and the production schedule to calculate material requirements. Its main objective is to maintain neither excess nor insufficient stock but to support just-in-time procurement and production planning. - MRP II — Manufacturing Resource Planning
MRP II expands the scope of MRP. In addition to material planning, it also includes machine capacity, workforce, and financial planning components within the system. In short, while MRP answers the question “What materials do I need, when, and in what quantity?”, MRP II focuses on “How can I optimise all my production resources?”
Core Components of the MRP Module
A properly functioning MRP system is built on the following data layers:
- Bill of Materials (BOM): The list and quantities of materials required for each product
- Production Routings: Which operation is performed on which machine, and how long does it take
- Inventory Data: Current stock, safety stock, and lead times
- Demand Plan: Sales orders and forecasting data
- Capacity Planning: Machine and workforce availability
- Financial Planning: Production cost, resource cost, and budget integration
Fully Integrated Shop Floor Management with SAP Production Planning
When production planning is managed manually, errors become inevitable. Capacity gaps can put delivery dates at risk, and planning processes may fall into a reactive cycle.
The SAP production planning module implemented by Hitsoft changes this equation. Demand generated from sales orders can be converted into production orders, material requirements, and supplier purchase orders. Once a production order is created, the system can reserve materials, perform capacity checks, and initiate cost calculations. Managers and planning teams can focus on control and decision-making, while routine calculations are transferred to the system.
Three areas stand out within the scope of MRP II:
- Machine Capacity: Production order planning without conflicts, with scheduling based on capacity constraints
- Workforce Planning: Integrated management of shift plans and personnel capacity with the production calendar
- Financial Planning: Real-time cost tracking and standard versus actual cost variance analysis
Inventory Optimization with the Material Requirements Planning (MRP) Module
MRP combines the Bill of Materials and real-time inventory data to calculate which materials should be ordered and when. Once lead times, minimum order quantities, and safety stock parameters are defined, SAP Business One MRP generates an up-to-date recommendation list each time it is run.
In industries with high traceability requirements, such as food, chemicals, and automotive, lot and serial number tracking can also be integrated into this structure. Every step from raw material receipt to final shipment can be recorded within the system.
Frequently Asked Questions About Production and Resource Planning
How does the forecasting feature contribute to planning?
How are MRP results reported financially?
Is serial number and lot-based traceability included in the MRP process?
