The Conference Theme "Mastering Change-Evolution to Success" is fitting to my presentation on How to optimize your Resources in a Changing Environment using MRP II.

Today, Latin 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 companies.

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 ?

• PERSONNEL
• DATA INTEGRITY
• SOFTWARE/COMPUTER

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 desired results.

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