PC-based MRP II software selection for the small hi-tech manufacturing firm

Abstract

This research details those steps that are involved with choosing the appropriate MRP II software for a small hi-tech manufacturer located in the upper midwestern portion of Wisconsin. The literature reviews and defines the objectives of material requirements planning. It reveals why materials requirements planning is a key element of the strategic business plan. It states why small companies choose to hire a consultant to narrow down the selection of software available to a manageable field of potential software selections; and why the final selection should always be done by a team of users within the company. The challenges associated with software selection in a small company are numerous, including overcoming internal fear of change and how to solicit the employees “buy-in.” MRP II software is a considerable expense to any company. The transition of current policies and procedures, the implementation time, and the training are all important elements of the cost and these elements are discussed in determining the appropriate software for a company. A search for existing surveys and ratings on PC-based MRP II software packages was completed. These surveys and ratings were the instruments used to narrow down the preliminary software packages to seven. Suppliers of the seven packages were contacted and received a questionnaire regarding costs, implementation times, training and follow-up support. The response to these questions provided the information necessary to narrow down the field to five packages. A “needs analysis” was done by creating a process chart of the manufacturing resource planning flow to indicate which departments should have representatives on the project team for software selection. The team members constructed a list of functions the software needs to perform and created a survey of qualitative questions using the quality tool training method called nominal group technique. The survey questions were asked of professionals within other organizations using the top software packages to help identify potential problem areas. These are negotiated in the request for quote phase of the project. This final step of the project results in the three software packages that the researcher will recommend. The research benefits any small manufacturing company considering the purchase of MRP II software. It details why the selection is important, who should be involved, and what steps are necessary to do a good job. Choosing and implementing new MRP II software is a costly venture and a company needs to make the right decision. What a company does not know could cost them a great deal of money. This paper serves as a guide to the appropriate steps in MRP II software selection.