SOP, MRP II & ERP

 

Sales and operations planning is a process where executive level management regularly meet and review projections for demand, supply, and the resulting financial impact. SOP is a decision-making process that makes certain that tactical plans in every business area are in line with the overall view of the company's business plan. SOP is a cross-functional business plan that involves sales and marketing, product development, operations, and senior management.

Benefits of Sales and Operations Planning

 1) It provides means of updating the strategic business plan as conditions change.

2) Improve inventory

3) Increase promotional planning

4) Great visibility of the demand and supply across the enterprise 

5) Increased accuracy in budget forecasting, and an improved product lifecycle management process.

Manufacturing Resource Planning

Manufacturing Resource Planning (MRP II) is an integrated information system used by businesses. Manufacturing Resource Planning (MRP II) evolved from early Materials Requirement Planning (MRP) systems by including the integration of additional data, such as employee and financial needs. 

MRP II provides coordination between marketing and production. Marketing, finance and production agree on a total workable plan expressed in the production plan. Marketing managers and production managers  may change master production schedule to meet changes in forecast demand and senior management may adjust the production plan to reflect overall changes in demand or resources, all this work through the MRP II system. It provides the mechanism for coordinating the efforts of marketing, finance, production and other departments. MRP II is a method for the effective planning of all resources of manufacturing company.

Enterprise  Resource Planning

As MRP systems evolved, they tended to take advantage of two changing conditions:

1) Computer and information technologies (IT) becoming significantly faster, more reliable, and more powerful. People in most companies had become at least comfortable, but often very familiar, with the advantages in speed, accuracy, and capability of integrated computer-based management systems.

2) Movement toward integration of knowledge and decision making in all aspects of direct and indirect functions and areas that impact material flow and material management.