review the traditional purchasing organization we find many
inefficiencies. A good example is when the customer calls to
increase the demand. Typically the customer MRP planner calls the
buyer who in turn calls the sales person who then calls his MRP
planner. If there are any questions, such as will a partial order
meet the requirements, the dialog can move back and forth through
the chain consuming huge amounts of time and effort. The buyer and
sales person provide no value. Wouldn't it be much easier for the
two MRP planners to talk to one another?
planners talkback and forth, what does the buyer and the sales
person do? The buyer should refocus his/her energy on leading teams
to work on cost reductions, quality improvements, lead time
reductions and on time delivery from the supplier. This means
getting to know the supplier much better which the buyer now has
time to do. This process benefits both supplier and customer.
sales person is no longer required to sell the account. However,
there is a job to be done. That job is technical liaison. The
customer still needs someone to support them technically. This adds
value and must be done to stay competitive.
list of how to reengineer MRP II goes on almost endlessly. In fact,
if you follow Hammer and Champy's recommendation, the instant you
have no more ideas you can use from other companies, you need to
start with a clean sheet of paper and start creating your own method
to reengineer how the company operates. There should be no holds
barred. In fact, if you looked at the basic concept of MRP II, it is
looking forward to determine what the companies resource
requirements are going to be and effectively communicating this
throughout the company to assure a high quality product, produced on
time, in the shortest time, and at the least cost. That makes the
reengineering MRP II clean sheet really clean.
Once individuals inside
the company realize that their MRP system is in need of
reengineering they are often uncertain how to get started. This is
indeed a serious question, because unless there is complete top
management support or better said leadership to change how a company
operates, there will be minor if any change. The question is how to
get top management to understand that huge improvements can be made
if they change the way they utilize the MRP II system to help
control the business. Education is the only way the understanding
can be achieved. Education can come in many flavors. One method is
to get management to attend a class taught by experts that have
experience using all the reengineering concepts we have talked about
and many more. Another option is to do an assessment of your MRP II
system again by an experienced group. This group will also be able
to quantify the improvement to the bottom line that the assessment
identifies. A third method is to visit another
company that has successfully implemented many of the above ideas to
see how a Class A MRPII company can operate. In fact, the best
method is to do a combination of all three. Pick whichever one that
you think management is most likely to participate in and start
there. If all else fails get documentation of the results other
companies have achieved and present that to top management. Often it
takes a long time to get management's attention but persistence and
good timing usually win out.
Properly operated MRP
II processes allow a company to surge ahead of the competition.
Starting with a process that many companies have proven to work, is
not only a good approach, but the right approach. The real road
block to applying reengineering to MRP II is mastering the art of
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