So remember earlier I talked about planning, right. And planning for a meal. This is where MRP really gets into the planning aspect. Material requirements, planning what materials are required for you to plan your product is the question that impacts. So we're going to look at in this video the differences between MRP MRP 2 and ERP. So first, MRP is material requirements planning, and it is really about getting the right amount of material at the right place, at the right time to support production and the things that you are producing. It includes three important things the master schedule file, right Bill of material, which is just the list of the material and inventory files. Where are your inventory levels? So again, MRP is really our simple system for you. Well, I don't want to say is simple, but is a system in which you can plan for production. Remember, this is about your raw material. This is not the master production schedule producing your finished goods. This is about everything that goes into those finished goods products. You have to plan for the raw material right on one side. Then you have to produce that product once you receive all of your raw material. So the one difference I could say between MRP, MRP two and ERP is the level of bandwidth that these programs can handle. These are just software systems, right, that manage data. The more data you need manage, the bigger the system you have to be. Consider MRP, level one, MRP two, level two, and ERP being level three. Now, there are other systems out there, but for the sake of this course, we're only talking about these three. So when we graduate from MRP two, MRP two MRP two is actually manufacturing resource planning, right? So there are other aspects of plan that goes into MRP two. When we look at MRP, this is all about getting our material. Can we track it in the system? Do we know when we will receive it? Right? But when things get a little bit more complex and we want to add forecasting into the mix or we want to add some marketing and sales into the mix, then we have to graduate from that MRP to that MRP two system. So when we look at production planning, demand and forecasting analysis, we can't do that in an MRP system. We have to go to an MRP two system. Again, manufacturing resource planning. We're looking at production. And because we're looking at production, we need a more robust system that can do more than just track inventory for us right now. When do we actually go to an ERP system, enterprise resource planning system? An ERP system is used by most of the bigger companies today because it's just best to have one place to go to where everyone in the organization can access data. And that's the key thing, is assess ability when everyone in the organization needs to use the same system to access data, especially when you have a ton of customers and you have a customer ID. I'm in Georgia. I can look at your data by typing in your customer ID and the CEO of the company. But well, forget I'm the CEO of the company. Someone else in the company is in California and they're typing in your your ID and they can see the same information enterprise resource planning. Now you can do some of that stuff in the MRP or P2 system. But the key with the ERP system is managing more data. When you have so much data you have to track and think this builds is more than just the production planning and the material requirements planning, human resources and managing employee data, maybe even student data. A ton more information goes into enterprise system. So key takeaways, if you're just trying to produce a product, track your material, receive your material on time. An MRP system will do the job. When you bring in production, planning and forecasting, it's time to upgrade from that MRP to that MRP two system. And then if you need even more aspects of your organization all in one place, key takeaway Everyone in your organization needs to access the data. You want to graduate to an ERP or enterprise resource planning system.