IT systems in production management

From CEOpedia | Management online
IT systems in production management
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The development of information systems enabled in the 1960s the creation of MRP standard. IT systems was thus tightly integrated with organization, management, production and logistics system.

In the second half of the 70s and early 80s Closed Loop MRP standard was developed, which of an even higher extent depended on appropriate solutions in organization of production. Introduced in the 1980s MRP II standard is huge step in development. It enables planning and control not only in production but also in sales and marketing activities. It is also integrated with financial and HR management..


MRP II framework developed by the APICS (American Production and Inventory Control Society) lists the following key assumptions:

  • planning of sales and production in different timeframes, including rolling planning. Developing of production schedule while maintaining minimum inventory. Introducing Just in time management and acceptance of orders, supervise their implementation and operations, including in particular support for logistics and EDI (Electronic Document Interchange)
  • inspection of material flows, including delivery and quality control,
  • inventory management and production in progress management, in order to minimize the cost (cost management),
  • financial management through efficient monitoring and reporting of unit production costs.


The next generation of information systems, which are available on the market today are marked with the following names:

  • MRP Systems,
  • Closed Loop MRP system,
  • MRP II system,
  • ERP Systems


Author: Krzysztof Wozniak