Corporate Reengineering for MRPII Implementation: Via a Hierarchical Modelling Approach

Abstract

Manufacturing Resource Planning (MRPII) is one kind of manufacturing information system that can help manufacturing companies gain competitive advantages. It is estimated that more than one hundred MRPII systems are available in the market, many of them are mature enough to solve most operational issues in accordance with users’ requirements. More often than not, many of these systems provide more functions than a company expects. Manufacturing companies worldwide have attempted to implement thse MRPII systems, however, many companies experienced failure due to managerial rather than technical issues. The authors propose an approach utilising a roadmap to integrate BPR and the MRPII implementation in order to overcome this difficulty. A detail road map is developed to guide this implementation, which is designed using a hierarchical analysis technique known as Integrated DEFinition Method (IDE). IDEF is a systematic manufacturing management and integration‐modeling tool. The proposed approach is implemented and illustrated using a reference company and the results indicated that 66 per cent reduction in errors for maintaining the bills of materials system; 99 per cent reduction in time to carry out material requirement planning; and 70 per cent reduction in time previously taken for non‐productive discussions.

Citation

Chang, J.S.F., Chau, K.Y. and Chan, Y.K. (2005), "Corporate Reengineering for MRPII Implementation: Via a Hierarchical Modelling Approach", Asian Journal on Quality, Vol. 6 No. 2, pp. 59-89. https://doi.org/10.1108/15982688200500014