Cases

A Diagnostic Study of Custom MRP II system for a Market Leader in Glass Line Equipment

Challenge

The client, a market leader in glass line equipment was not clear of the use of custom MRP II systems. There was a significant delay in implementation (2 years overrun) and the top management was confused as to whether to continue the implementation of a customised MRP II system or to implement a packaged solution. The client turned to UC to have a clear understanding of the benefits of implementing MRP II systems to improve its capacity utilisation.

Approach 

To conduct the detailed study of the MRP II system for the client, UC adopted the following approach:

  • Determined the causes of the following delays in implementation -

    1) Lack of top management ownership for implementing the MRP II systems

    2) Lack of adequate end-user involvement, training and understaffed departments to implement the change

    3) Continuous changes in functional specifications to impact the implementation schedules

    4) Inaccurate Bill of Materials(BOM), absence of integrity between BOM and product drawings, and duplicate item codes impacting all modules

    5) Capacity requirements planning module, though designed and developed, was not implemented due to order backlogs

  • Assessed benefits of implementing MRP II systems in terms of inventory reduction, material movement and capacity utilisation
  • Rated the MRP II system against an ideal MRP II functionality checklist

Imapct

The client received a recommendation, on the basis of the benefits assessment and functionality rating, to continue the MRP II implementation. A ‘core change team’ was also set up to manage the change and to ensure that the causes for delay were overcome.