Auditing Manufacturing Systems 

6. Investigate the problems.

7. Analyze the root causes of the problems.

8. Identify solutions.

9. Select solutions.

10. Solve the problems.

11. Confirm results. Congratulate, recognize and reward (nonfinancially).

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12. Repeat the cycle.

Useful problem-solving tools that should be used in the 12-step QIP process are: brainstorming, flowcharting, Pareto analysis, check sheet, run charts, histograms, cause and effect diagrams, control charts and nominal group tech­nique.

The benefits and payoffs of MRP II reengineering exist in four broad categories:

1. Improvements in profits, resulting in increased sales.

2. Better control of working assets, resulting in a reduc­tion of excess raw material, WIP and finished goods' inventory carrying costs.

3. Lower inventory carrying costs and improved business practices mean less cost and fewer expenses.

4. Cash flow improvement.

Combining these four benefits will enable your company to reach the goals set for Return on Net Assets (RONA), net sales, contribution margin, reduction of fixed & variable cost, operating income, and higher customer & employee satisfaction. What is keeping your company from reengineering the MRP II business management pro­cesses, achieving these desired business results, and mak­ing your company a flexible competitor? Nothing but desire and commitment! Seize the opportunity. There are only three constraints—time, people and money. Why not take the time and your talented people and invest the money to significantly improve your company's business manage­ment processes? As the commercial says, "Just Do It!" You will love the results!

John Civerolo is President of J. J. Civerolo, Inc. and is a senior partner at Partners for Excellence, a consul ting firm

specializing in consulting and education for Manufacturing Resource Planning (MRP II) implementations while inte­grating the Total Quality Management (TQM), Distribu­tion Requirements Planning (DRP), Continuous Improve­ment (JIT), and People Involvement & Empowerment philosophies in a variety of manufacturing companies throughout the United States, Canada, Mexico, and Ger­many. He has been an active user, educator, and consultant for over twenty-six years. Previously, he was Vice Presi­dent of R.D. Garwood, Inc., for ten years and was associ­ated with Oliver Wight Companies for five years.

John was Director of Management Information Services, Internal MRP II Consultant, and Materials Manager at Sunbell Corporation in New Mexico. While there, he co-chaired the MRP II Task Force that helped Sunbell progress from a Class D user to a Class A MRP II user. Since leaving Sunbell in 1980, John has helped many companies achieve the same kind of success.

John holds a Bachelor's degree in mathematics from the University of New Mexico. He is a frequent speaker at professional society dinner meetings, APICS conferences, and universities. He has been Vice President of Education for the Albuquerque chapter of APICS.

John is the author of several widely read articles including:

— "Sales & Operations Planning Starter Kit" - coauthor

— "People Empowerment - How to Guarantee Success"

— "On-Time New Product Development - Fact or Fic­tion?"

— "Beware! Cycle Counting can be Hazardous to Inven­tory Record Accuracy"

— "Unloading the Overloaded Master Production Sched­ule"

— "MRP II & JIT Make a Tough, Competitive Combina­tion."

— "Demand Pull: What are the Prerequisites for Suc­cess?"

— "Listening—A Tough Competitive Weapon."

John is known as an industry leader in his field working with companies from entrepreneurial startups to Fortune 500 companies such as Mark IV, Dayco/Anchor Swan, Eastman Kodak, Eli Lilly, General Signal, Trane, Interbake Foods, and Reynolds.