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MRPII systems

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DB- The materials manager is very familiar with older material requirements planning (MRP) systems, as well as more integrated manufacturing resource planning (MRPII) systems. In fact, he is quite proud of the way the MRPII system works; his entire team has worked hard and has achieved schedule accuracy of over 98% and inventory accuracy of over 97%. He is also proud that as a result of this kind of change to the more modern MRPII systems, the firm's inventory turnover has improved from 2.1 to 4.2; quite an achievement in his eyes and the CEO's.

He asked you to meet with his own materials management team to discuss the following specific points:

Your understanding of the pros and cons of MRPII systems, citing at least two Web sources.
How could any new system be better than an MRPII system?

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Solution Preview

My understanding of the pros of MRPII systems are that it can enable a company to reduce costs and increase revenues. MRPII has software for purchasing, inventory, materials requirements, planning, shop floor scheduling, customer data entry, and financial accounting. The main pros are that there is standardization and automation leading to improvements in cost reduction and increases in revenues(1). The pros of MRPII are that it allows employees to perform better and see the information related to their jobs. The advantages of MRPII are that it improves the peripheral influences on the efficiency of the manufacturing environment. In my opinion MRPII applies Just in Time concept to labor availability and capacity. MRPII improves coordination to such an ...

Solution Summary

Integrated manufacturing resource planning is explained in a structured manner in this response. The answer includes references used.