Theme "Mastering Change-Evolution to Success" is fitting to my
presentation on How to optimize your Resources in a Changing
Environment using MRP II.
America is experiencing an Industrial Revolution. The opening of
the borders that is taking place among the countries through the
different treaties that have been signed last year like The North
America Free Trade Agreement (NAFTA) between Canada, Mexico and the
United States of America; The Andean Pact; and The G-3 signed this
year between Colombia, Mexico and Venezuela, just to name a few, is
making products accessible to all markets without the need to pay
duties, therefore creating a competitive environment for all the
In order to compete
and prosper in this climate you need to optimize your resources by
using appropriate systems, educated and trained personnel and data
accuracy that will put you in a position of strength to take
advantage of this changing environment. This will entail cost
reductions, better quality, and on time shipments—in other words
putting the customer first.
MRP II is that
system. Let's explore what MRP II is and what the benefits are that
you could receive if you successfully implement an MRP II system.
There is the erroneous notion that MRP II is a computer system; but
that is not the case. MRP II is a management system for the
manufacturing industry. It is a people system. It is a set of tools
that uses the computer to administer more effectively all the
resources of a manufacturing company. MRP II is a critical tool for
companies to obtain the success they are seeking.
MRP II could be a
great simplifier for a complex business that is seeking uniformity
and consistency in the day-today operations of their
business—consistency of rules, definitions, performance
measurements, and execution of existing policies and procedures. A
company will receive from this principle a significant benefit
throughout its operations.
ABC's of MRP II
What do we need to implement MRP II ?
• DATA INTEGRITY
Personnel are a
company's must precious asset. Contrary to many beliefs, it is not
the computer and software that can make a company achieve class A.
It is what the personnel do and how they do it, that will determine
if a company attains a class A, B, C, or D status. If success were
based on computer and software every company would be class A, and
that is not the case. The computer and software arejust tools; by
themselves the tools will not accomplish the desired results. It is
people learning to use the tools and using them properly that will
give you the desired results.
Accurate data are
another important requirement for MRP II. If you don't have accurate
data even the most sophisticated system will fail to give you the
If the need to
educate and train the personnel and to have accurate data is not
recognized by the top management of your company, then it will be an
uphill battle every time you have to request funds to carry it out.
It is imperative for the success of the implementation that the top
management of the company understands what MRP II is, the cost
involved in implementing it, and the benefits that will be derived
from this implementation. You will not achieve class A without the
support of the top management of your company.
Let's look at the
chart that shows the different components of MRP II.
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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