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Material Requirements Planning (MRP)

Material Requirements Planning (MRP) helps manufacturers calculate material needs, manage inventory and support production schedules. Learn how MRP works and how it connects with frontline work execution.
What is MRP

What is Material Requirements Planning (MRP)?

Material Requirements Planning (MRP) is a system used by manufacturers to calculate which materials and components are needed for production, how much is required and when they need to be available.

MRP helps manufacturers plan purchasing, inventory and production activities so materials are available when needed without holding unnecessary stock.

It uses information such as production schedules, bills of materials (BOMs), current inventory levels and supplier lead times to determine material requirements.

For example, if a manufacturer needs to produce 500 units of a product, an MRP system can calculate the components required, check existing stock and identify what needs to be purchased or produced to meet the planned schedule.

MRP is commonly used in discrete manufacturing, where products are assembled from multiple components, although it can also support other manufacturing environments.

Why is Material Requirements Planning Important?

Manufacturers need the right materials in the right quantities at the right time to keep production running efficiently.

When material planning is inaccurate, production can be delayed by missing components, while excess purchasing can increase storage costs and tie up working capital.

MRP helps manufacturers:

  • Reduce material shortages and production delays
  • Improve inventory management
  • Avoid unnecessary stock and waste
  • Plan purchasing and supplier deliveries
  • Coordinate materials with production schedules
  • Improve visibility into future material requirements
  • Support more efficient use of manufacturing resources

However, the effectiveness of MRP depends on the accuracy of the information used to calculate requirements. Outdated inventory figures, incorrect bills of materials or delays in reporting production activity can all affect planning decisions.

How Does an MRP System Work?

An MRP system starts with a production plan that identifies what needs to be manufactured and when.

It then uses the bill of materials to determine the components and quantities required for each finished product. By comparing these requirements with existing inventory and scheduled deliveries, the system identifies any shortages.

Supplier and production lead times are used to calculate when materials need to be ordered or manufactured to support the production schedule.

As production plans, stock levels or delivery dates change, MRP calculations can be updated to reflect the new requirements.

For example, if a component delivery is delayed, the system can help planners understand which production orders may be affected and whether purchasing or scheduling adjustments are needed.

This makes MRP an important part of coordinating material availability with manufacturing demand.

MRP vs ERP: What’s the Difference?

Material Requirements Planning and Enterprise Resource Planning (ERP) are closely related, but they have different areas of emphasis.

MRP focuses specifically on calculating material requirements and supporting production planning. It helps manufacturers determine what components are needed, how much stock is available and when additional materials must be ordered or produced.

ERP covers a wider range of business activities, including finance, procurement, inventory, supply chain management, production planning and human resources.

Many modern ERP systems include MRP functionality, allowing material planning to connect with purchasing, inventory and financial processes.

In simple terms, MRP helps manufacturers plan the materials needed for production, while ERP connects those requirements with wider business operations.

MRP vs Work Execution Layer: What’s the Difference?

MRP and a Work Execution Layer support different but connected parts of manufacturing operations.

MRP focuses on planning material requirements. It helps determine which materials should be available to support a production order and when they are needed.

A Work Execution Layer focuses on how frontline tasks are carried out. It provides workers with instructions, checks and information while capturing evidence of the activities completed during production.

For example, MRP may calculate the components needed to assemble a product, while a Work Execution Layer can guide an operator through the assembly process and capture quality checks, measurements and confirmations.

The information generated during execution can help provide greater visibility into production activity, particularly when connected with existing manufacturing systems.

The distinction is not absolute, as some manufacturing platforms combine planning, operator guidance and execution capabilities. The important consideration is whether both material planning and frontline work are supported effectively.

Why is Work Execution Data Important for MRP?

MRP systems rely on accurate information about material availability, production progress and demand.

However, some of the information needed to maintain accurate planning originates from activities carried out on the factory floor.

If production issues, failed quality checks or incomplete work are reported late, planners may be working with an outdated picture of operations.

Capturing Work Execution Data as tasks are completed can help reduce these information gaps.

For example, structured reports from assembly, inspections and production changeovers can provide useful evidence about completed work, quality issues and operational delays.

When relevant information is connected with manufacturing systems, it can support better coordination between production planning and frontline activities.

How WorkfloPlus Complements MRP

WorkfloPlus provides a Work Execution Layer that helps manufacturers carry out frontline activities consistently while capturing reliable operational data.

Workers can follow guided digital instructions for assembly, inspections, quality checks, maintenance and production changeovers using mobile devices, tablets, desktops or supported smart glasses.

Photographs, measurements, timestamps, signatures and other evidence can be captured directly within each workflow, creating instant job reports and a traceable history of completed work.

WorkfloPlus can connect with wider manufacturing and business systems through supported integrations and APIs, allowing relevant execution information to contribute to operational reporting and existing processes.

Rather than replacing MRP, WorkfloPlus complements material planning by helping manufacturers connect production requirements with the work being carried out on the factory floor.

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