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MRP Success
Part 1 of 3


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Implementing a Manufacturing Planning and Control Sys­tem in an enterprise is a major undertaking. Accomplish­ing this in a manufacturing company is an enormous effort. It involves people, processes, procedures, and policies throughout the enterprise.

Thousands of companies have spent hundreds of millions of dollars on hardware, software, education and training for these systems, planning for and expecting paybacks and benefits. All too often companies have not realized these benefits or paybacks.

This presentation will provide a simple and effective tool to measure what has been done and what needs to be done in your company to achieve the promised paybacks.

Session participants will examine and measure them­selves in Twelve Critical Success Factors, the Potholes on the Road to Successful MRPII. This will enable them to measure the completeness and quality of their efforts. They can take this methodology back to their company and use the process with their management team to identify and correct the Potholes. This step is critical to identifying differences in understanding, perceptions and attitude. Completing this step is the starting point for establishing priorities and renewing efforts.

Typical Expected Paybacks—MRP II

There is no hard and fast rule for paybacks. Several of the companies I have worked with have achieved benefits and paybacks such as:

• On-Time Delivery +25%
• MPS Performance +43%
• Manufacturing Lead times - 44%
• WIP Inventory
• Percent Defects
• Customer Returns - 86%
• Productivity +29%
• Sales +35%

Other typical paybacks have been:

• Purchased Materials - 20%
• Total Inventory - 50%
• Stockouts/Shortages - 90%
• Overtime - 85%
• Premium Cost Shipments - 95%
• Inventory Turns +26%

Critical Success Factors

We will review and evaluate the following twelve success factors:

1. Top Management Education and Awareness
2. Executive Vision and Plan
3. Justification
4. Commitment
5. Executive Steering Body
6. Project Leader and Team
7. User Involvement and Buy-in
8. Professional Guidance
9. Project Team Education
10. Solution Selection
11. Implementation
12. Performance Monitoring

We'll discuss several scenarios and parameters for each of these factors and you will then assess your efforts and mark yourself on the chart.

You should assess yourselves on a scale of 1 to 5; 1 is low and 5 is high. The scenarios and parameters presented are scaled as 1, 3 and 5. However you may score yourselves anywhere within the scale of 1 to 5.

To be Continued

For balance of this article, click on the below link:

Lean Manufacturing Articles and go to Series 01


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