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    Understanding the Key Differences Between MPS, MRP, and CRP

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    Hunan Puka Engineering
    ·July 10, 2025
    ·11 min read
    Understanding the Key Differences Between MPS, MRP, and CRP
    Image Source: pexels

    You often see MPS MRP CRP used together in product manufacturing. Each of these systems—MPS MRP CRP—has a specific role. MPS MRP CRP starts with MPS, which helps you plan what products to make and when to make them. Then, MRP in the MPS MRP CRP process checks what materials are needed for production. CRP, as part of MPS MRP CRP, ensures you have enough machines and workers available. Using MPS MRP CRP together helps you complete production on schedule. The table below explains how each part of MPS MRP CRP supports the manufacturing process:

    Function

    Description

    Master Production Scheduling (MPS)

    MPS in the MPS MRP CRP system creates a clear plan for what to produce, when, and in what quantity. It helps manage resources and inventory to meet customer demand.

    Material Requirements Planning (MRP)

    MRP, as part of MPS MRP CRP, determines the materials needed based on the production plan. It ensures you have the right materials at the right time.

    Capacity Requirement Planning (CRP)

    CRP in MPS MRP CRP checks if you have enough machines and labor to meet production needs. It helps schedule work and identifies any capacity issues that could cause delays.

    By understanding how MPS MRP CRP work together, you can make smarter decisions for your factory and supply chain.

    Key Takeaways

    • MPS helps you decide what to make and when. It lets you meet what customers want. It also keeps your inventory small.

    • MRP figures out what materials you need to make products. It makes sure you have the right parts on time. This stops delays from happening.

    • CRP checks if you have enough machines and workers. It helps you use your resources well. It also stops things from slowing down.

    • Use MPS when you plan for the near future. Use MRP and CRP for plans that are farther away. This way, your production stays flexible and works well.

    • Update your systems and data often. This stops problems like missing deadlines or having too much inventory. It helps your factory work without trouble.

    MPS MRP CRP Overview

    MPS MRP CRP Overview
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    MPS Defined

    The Master Production Schedule (MPS) helps you choose what to make. It tells you when to make products and how many to make. MPS helps you plan so you meet customer needs. It also helps you keep inventory low. The main goals of MPS are to set due dates, help customers get products on time, and keep production steady. You can see these goals in the table below:

    Objective

    Description

    Inventory Control

    Keeps inventory small to save money and stop waste.

    Setting Up Due Dates

    Makes clear deadlines for finished products.

    Customer Service

    Helps you give products to customers on time.

    Scheduling

    Builds a plan for making products.

    Stabilize Production

    Stops last-minute changes and surprises.

    MPS MRP CRP starts with MPS because you need a plan first. You need this plan before you order materials or check your factory’s capacity.

    MRP Defined

    Material Requirements Planning (MRP) helps you know what materials you need. It looks at each part and tells you when to order or make it. This system works best for things that need other parts, like a bike with wheels and a frame. MRP uses planning buckets to check supply and demand in set times. It also sends alerts if you need to act fast, like speeding up an order. MRP can use old data to guess what you will need later.

    CRP Defined

    Capacity Requirements Planning (CRP) checks if your factory has enough machines and workers. It makes sure you can finish jobs planned by MPS and MRP. CRP helps you match your resources to what you need. You can use CRP to:

    MPS MRP CRP work together to help you plan, order, and make products well.

    How They Work

    MPS Process

    You begin with the Master Production Schedule (MPS). This system helps you pick what to make. It also helps you decide how many to make and when. MPS looks at what customers want or what you think they will buy. Most companies change their MPS every week. Here is a simple way to use MPS:

    1. Gather facts about what you are making and what customers want.

    2. Make a plan that shows what you will make and when.

    3. Tell your team about the plan and set easy-to-follow goals.

    4. Check the plan often and change it if you need to.

    MPS gives you a clear plan to follow. This plan helps you with the next steps in MPS MRP CRP.

    MRP Process

    Material Requirements Planning (MRP) comes after MPS. MRP helps you know what parts and materials you need. It looks at the things you need to build each product. MRP checks these needs every day to keep up with changes.

    An MRP system lets you see what you have in stock right now. It helps you keep the right amount of parts and plan your work well.

    If you make bikes, you need to watch parts like tires and seats. MRP checks your parts and tells you when to get more. This keeps your work moving without stopping.

    CRP Process

    Capacity Requirements Planning (CRP) checks if you have enough machines and workers. CRP looks at the jobs from MRP and matches them to your resources. You use CRP to find problems before they slow you down.

    Stage

    Description

    Interaction

    MPS

    Has the main plan for what to make.

    Starts the MRP by showing what is needed.

    MRP

    Plans when and how much to order.

    Tells CRP what resources are needed.

    CRP

    Checks if you have enough workers and machines.

    Shows if you need to change your plan or get more resources.

    You can see how MPS MRP CRP work as a team. MPS makes the plan, MRP checks parts, and CRP checks if you can do the work.

    MPS MRP CRP Differences

    Scope

    You need to know the scope of each system to use them well. Each one covers a different part of your production process. The table below shows how the scope changes from MPS to MRP to CRP:

    System

    Scope Description

    MPS

    Generates an anticipated build schedule based on demand forecasts and firm orders, detailing order quantities for each item with independent demand.

    MRP

    Manages material requirements by starting with item demand, adjusting for existing inventory, and scheduling production based on lead times.

    CRP

    Checks capacity against production plans from MRP, using detailed inputs like planned order releases and existing work-in-process quantities to assess capacity utilization.

    MPS focuses on what you need to make and when. MRP looks at what materials you need to meet the plan. CRP checks if you have enough machines and workers to do the job. You can see that MPS MRP CRP each play a unique role in your factory.

    You also need to think about the planning horizon and detail level. The table below helps you compare:

    Planning Method

    Planning Horizon

    Detail Level

    MPS

    3-6 months

    High

    MRP

    Longer

    Broader

    CRP

    Longer

    Broader

    MPS gives you a detailed plan for the next few months. MRP and CRP look further ahead but with less detail.

    Tip: Use MPS for short-term, detailed planning. Use MRP and CRP for longer-term, broader planning.

    Inputs & Outputs

    Each system uses different information and gives you different results. You need to know what goes in and what comes out to keep your process running smoothly.

    Type of Evidence

    Description

    Inputs

    Master production schedule, bill of materials, inventory records

    Outputs

    Planned order releases, order release notices, exception reports

    • MPS uses sales forecasts and customer orders as inputs. It gives you a schedule for finished products.

    • MRP takes the MPS plan, bill of materials, and inventory records. It tells you what parts to order and when.

    • CRP uses planned order releases from MRP and current work-in-process data. It shows you if you have enough capacity or if you need to adjust your plan.

    If you want your systems to work together, you must keep your data accurate and up to date. Problems with data can cause delays, extra costs, or missed orders.

    Note: Regular data checks and using integrated software help you avoid mistakes and keep your production on track.

    Timing

    Timing is important for each system. You need to know how often to update your plans and when to run each process.

    Parameters

    MRP

    MPS

    Duration

    Runs daily to gather ideas about required materials and plan accordingly.

    Runs weekly based on sales order/service order and forecasts for that period.

    • You usually update MPS every week. This helps you react to changes in customer demand.

    • MRP runs every day. It checks what materials you need and updates your orders.

    • CRP works with both MPS and MRP. It checks if your resources match your plans and helps you fix problems before they slow you down.

    You should update your schedules often to keep up with changes in your business. This keeps your factory flexible and ready for anything.

    If you do not connect your systems well, you may face problems. For example:

    • Your production schedule may not match your real capacity.

    • You might order too many or too few materials.

    • You could miss customer deadlines.

    To avoid these issues, follow best practices:

    1. Research and choose the right software for your needs.

    2. List what you want your system to do.

    3. Set clear goals for your planning process.

    4. Check your current systems and find gaps.

    5. Get your team involved early.

    6. Prepare everyone for changes.

    7. Make sure your data moves smoothly between systems.

    New technology, like AI and IoT, can help you make better plans. These tools give you real-time data and help you adjust quickly. When you use MPS MRP CRP together with modern tools, you can make your factory more efficient and competitive.

    Application Scenarios

    Application Scenarios
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    When to Use MPS

    You use Master Production Scheduling (MPS) to plan what to make and when. MPS is helpful if customer orders change a lot or if demand goes up and down with the seasons. For example, a clothing factory can use MPS to get ready for winter by checking last year’s sales. If you start selling a new drink, MPS helps you change your schedule for sales events. MPS also works well in car, electronics, and food factories. It helps you keep less inventory and keeps production steady.

    Scenario

    Description

    Assemble-to-Order with Long Lead Time Components

    You build custom bikes and use MPS to plan so you have slow-to-arrive parts ready.

    Seasonal Demand

    You make winter clothes and use MPS to get ready for busy times, while MRP makes sure you have materials.

    Promotional Demand

    You launch a new drink and use MPS to change your plans, while MRP gets the ingredients and packaging.

    MPS lets you change plans easily in job shops. It helps you manage both step-by-step and batch production.

    When to Use MRP

    You use Material Requirements Planning (MRP) to control parts and materials for things with many pieces. MRP is good if you make things like cars or electronics with lots of parts. It helps you watch your inventory and guess what you need, so you do not run out or have too much. MRP is important in places with strict rules, like food, medicine, and car factories.

    • MRP helps you keep data right and inventory correct.

    • It helps you plan when to make things and order parts.

    • You can find slow spots and work better.

    • MRP makes it easier for teams to talk to each other.

    If you have many small parts or need to handle lots of pieces, MRP is a good pick. You get more control over your supply chain and how things are made.

    When to Use CRP

    You use Capacity Requirements Planning (CRP) to match your machines and workers to your plan. CRP helps you check if you have enough people and equipment for each job. It is useful in car factories, big machine shops, and places that make things only when ordered.

    Industry

    Use Case Description

    Automotive

    Match assembly lines to changing orders for better production.

    Industrial Manufacturing

    Give machines and workers to different jobs as needed.

    General Manufacturing

    Match jobs to resources and find slow spots.

    Make to Order

    Use rough planning to handle workloads and keep on schedule.

    CRP helps you find problems early, plan for busy times, and keep customers happy by being on time. If you want to use machines and workers better, CRP is the tool to use.

    You now know that MPS, MRP, and CRP help your factory in different ways. MPS tells you what to make. MRP helps you manage your materials. CRP checks if you have enough resources. The table below shows how each system makes your work better:

    Aspect

    MPS

    MRP

    CRP

    Purpose

    Guides production

    Determines material needs

    Optimizes resource use

    Focus

    Scheduling

    Inventory

    Capacity planning

    Efficiency Contribution

    Matches demand and supply

    Reduces shortages and waste

    Streamlines production

    To choose the best system, follow these steps:

    1. Figure out what problem you need to fix.

    2. Pick the planning method that fits your needs.

    3. Collect all your important data.

    4. Get your team to help you.

    5. Look at your choices and compare them.

    6. Start your plan and use it.

    7. Check how things went and make changes next time.

    When you use the right planning system for your goals, you give better service, save money, and help your business grow.

    FAQ

    What is the main difference between MPS, MRP, and CRP?

    You use MPS to plan what products to make. MRP helps you figure out what materials you need. CRP checks if you have enough machines and workers to finish the job.

    Can you use MPS MRP CRP together in one factory?

    You can use all three systems together. MPS MRP CRP work as a team. They help you plan, order materials, and check your resources so you finish production on time.

    How often should you update each system?

    You update MPS every week to match customer demand. You run MRP every day to keep track of materials. You use CRP when you need to check if your machines and workers can handle the work.

    Do you need special software for MPS MRP CRP?

    You can use special software to run these systems. Software helps you keep your data correct and makes planning easier. Many factories use software to connect MPS MRP CRP for better results.

    What happens if you do not use these systems?

    You may run out of materials or have too much inventory. You might not finish jobs on time. Using MPS MRP CRP helps you avoid these problems and keeps your factory running smoothly.

    See Also

    Decoding PPAP: Essential Insights for Quality Production

    Demystifying MSA: A Guide to Measurement System Analysis

    Exploring PPM Concepts Within IATF 16949 Certification

    Differentiating Inert and Reactive Molds: Key Insights

    Boosting Efficiency in Engineering Through Quick Response Techniques

    About Hunan Puka

    Established in 2016 and based in Hunan, China, with a liaison point in Berlin, we are a Tier 2 supplier for the automobile industry. We specialize in the production of customized aluminum die-casting parts designed for machines with a closing force ranging from 280 to 1250 tons, with subsequent manufacturing process CNC machining and surface treatment. Our commitment to quality is reflected in our accredited quality management system, certified by ISO9001:2015 and IATF16949:2016 standards.