International Journal of Quality Innovation

Korean Society for Quality Management (한국품질경영학회)
권호 표지

Corporate Reengineering for MRPII Implementation: Via a Hierarchical Modelling Approach

  • Chan, Jimmy S.F. (Engineering Mechanics, Materials and Design, School of Science and Technology, The Open University of Hong Kong) ;
  • Chau K.Y. (Timax Electronics and Machinery Co.,) ;
  • Chan, Y.K. (Six Sigma Institute)
  • Published : 2005.08.01
Download PDF
⟨ Previous Next ⟩

Abstract

Manufacturing Resources 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 these MRPII systems, however, many companies experienced failure (Turbide, 1996) 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 (IDEF). 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% reduction in errors for maintaining the bills of materials system; 99% reduction in time to carry out material requirement planning; and 70% reduction in time previously taken for non-productive discussions.

Keywords

References

  1. Carr, D. K. and Johansson, H. J.(1995), Best Practices in Reengineering: What Works and What Doesn't in the Reengineering Process, New York: McGraw-Hill, pp. 3-6
  2. Davenport, T. H.(1993), Process Innovation: Reengineering Work Through Information Technology, Boston: Harvard Business School Press
  3. Davenport, T. H. and Beers, M. C.(1995), 'Managing Information About Process,' Journal of Management Information, Systems/ Summer, Vol. 12 No. 1, pp. 57-80
  4. Gray, C. D.(1987), The Right Choice: A Complete Guide to Evaluating, Selecting and Installing MRPII Software, Vermont: Oliver Wight Limited Publication
  5. Hammer, M. and Champy, J.(1993), Reengineering The Corporation: A Manifesto for Business Evolution, London: Nicholas Brealey, pp. 17-47
  6. Hammer, M. and Champy, J.(1993), Reengineering The Corporation: A Manifesto for Business Evolution, London: Nicholas Brealey, pp. 83-101
  7. Hammer, M. and Champy, J.(1993), Reengineering The Corporation: A Manifesto for Business Evolution, London: Nicholas Brealey, p. 201
  8. Hammer, M.(1990), 'Reengineering Work: Don't Automate, obliterate,' Harvard Business Review, July-August, pp. 104-112
  9. Hill, S. C. and Robinson, L. A.(1995), A concise Guide to the IDEFO Technique: A Practical Technique for Business Process Reengineering, (WA: Enterprise Technology Concepts, Chapter 15
  10. Kappelhoff, R.(1997), 'Integration of ERP to the final control elements,' ISA Transaction, Vol. 36, No.4, pp. 229-238 https://doi.org/10.1016/S0019-0578(97)00017-7
  11. Kettinger, W. J. and Grover, V.(1995), 'Toward a Theory of Business Process Change Management,' Journal of Management Information Systems, Summer, Vol. 12, No. 1, pp. 9-30
  12. Landvater, D. V. and Gray, C. D.(1989), MRPII Standard System: A Handbook for Manufacturing Software Survival, New York: John Wiley and Son
  13. Lo, Y. F., Ip, W. H. and Yung, K. L.(1997), 'A Structural Approach to the Development and Implementation of MRPII,' Journal of The Institute of Engineers, Singapore, Vol. 37, No. 4
  14. Luber, A. D.(1995), Solving Business Problems with MRPII, 2nd ed., Boston: Digital Press, pp. 6-8
  15. Luber, A. D.(1995), Solving Business Problems with MRPII, 2nd ed., Boston: Digital Press, pp. 229-238
  16. Luber, A. D.(1995), Solving Business Problems with MRPII, 2nd ed., Boston: Digital Press, pp. 308-309
  17. Luber, A. D.(1995), Solving Business Problems with MRPII, 2nd ed., Boston: Digital Press
  18. Luscombe, M.(1993), Integrating the Business, MRPII: A Practical Guide for Managers, Oxford: Butterworth-Heinemann, Preface
  19. Macarthur, P. J., Crosslin R. L., and Warren, J. R.(1994), 'A Strategy for Evaluating Alternative Information System Designs for Business Process Reengineering,' International Journal of Information Management, 14, pp. 237-251 https://doi.org/10.1016/0268-4012(94)90002-7
  20. Maglitta, J.(1994), 'Reengineering the Workplace: Rocks in the Gears,' Computerworld, October 3, p. 96
  21. Malhotra, Y.(1998), 'Business Process Redesign: An Overview,' IEEE Engineering Management Review, Vol. 26, No. 3
  22. Malhotra, Y., 'Role of Information Technology in Managing Organizational Change and Organizational Interdependence,' WWW document, URL http://www.brint.com/papers/ change/
  23. Manganelli, R. L. and Klein, M. M.(1994), The Reengineering Handbook: A Step-by-step Guide to Business Transformation, New York: Amacom, 7-8, pp. 19-26
  24. Marca, D. A. and McGowan, C. L.(1988), IDEF0/SADT: Business Process and Enterprise Modeling, Califorinia: Eclectic Solutions, Chapter 13
  25. Marca, D. A. and McGowan, C. L.(1988), IDEF0/SADT: Business Process and Enterprise Modeling, Califorinia: Eclectic Solutions, preface section, 7-8
  26. Moore, J. F.(1993), 'Predators and Prey: A New Ecology of Competition,' Harvard Business Review, May-June, pp. 75-86
  27. Nwabueze, U. and Kanji, G. K.(1997), 'A Systems Management Approach for Business Process Re-engineering,' Journal of Management Information Systems, Vol. 8, No. 5, pp. 284-285
  28. Peters, T. and Austin, N.(1985), A Passion for Excellence: The Leadership Difference, Fontana/Collins
  29. Senge, P. M., Kleiner, A., Roberts, C., Ross, R. B. and Smith, B. J.(1994), The Fifth Discipline Fieldbook: Strategies and Tools for Building a Learning Organization, London: Nicholas Brealey
  30. Swatman, P. M. C., Swatman, P. A, and Fowler, D. C.(1994), 'A Model of EDI Integration and Strategic Business Reengineering,' Journal of Strategic Information systems, Vol. 3, No. 1, pp. 41-60 https://doi.org/10.1016/0963-8687(94)90005-1
  31. Tapscott, D. and Caston, A.(1993), Paradigm Shift: The New Promise of Information Technology, New York: McGraw-Hill, pp. 3-4
  32. Tapscott, D. and Caston, A.(1993), Paradigm Shift: The New Promise of Information Technology, New York: McGraw-Hill, pp. 62-63
  33. Tapscott, D. and Caston, A.(1993), Paradigm Shift: The New Promise of Information Technology, New York: McGraw-Hill, pp. 14-27
  34. Tapscott, D. and Caston, A.(1993), Paradigm Shift: The New Promise of Information Technology, New York: McGraw-Hill, p. 218
  35. Tenner, A R. and DeToro, I. J.(1997), Process Redesign: The Implementation Guide for Managers, Addison Weslery
  36. Venkatraman, N.(1994), 'IT-Enabled Business Transformation: From Automation to Business Scope Redefinition,' Sloan Management Review, Winter, pp. 73-87
  37. Vollmann, T. E., Berry W. L., and Whybark, D. C.(1992), Manufacturing Planning and Control Systems, 3rd ed., New York: Irwin Professional Publishing, pp. 67-70
  38. Vollmann, T. E., Berry W. L., and Whybark, D. C.(1992), Manufacturing Planning and Control Systems, 3rd ed., New York: Irwin Professional Publishing
  39. Vollmann, T. E., Berry W. L., and Whybark, D. C.(1992), Manufacturing Planning and Control Systems, 3rd ed. New York: Irwin Professional Publishing, pp. 14-55
  40. Wallace, T. F.(1990), MRPII: Making It Happen, The Implementers' Guide to Success with Manufacturing Resource Planning, 2nd Ed., Vermont: Oliver Wight Publications, pp. 209-237
  41. Wallace, T. F.(1990), MRPII: Making It Happen, The Implementers' Guide to Success with Manufacturing Resource Planning, 2nd Ed. Vermont: Oliver Wight Publications, pp. 5-11
  42. Wallace, T. F.(1990), MRPII: Making It Happen, The Implementers' Guide to Success with Manufacturing Resource Planning, 2nd Ed., Vermont: Oliver Wight Publications
  43. Wallace, T. F.(1990), MRPII: Making It Happen, The Implementers' Guide to Success with Manufacturing Resource Planning, 2nd Ed., Vermont: Oliver Wight Publications, pp. 158-160
  44. Wight, O.(1993), The Executive's Guide to Successful MRPII, revised ed., Vermont: Oliver Wight Publications, p. 1
  45. Report on Industrial Automation Study(1992), Prepared by Hong Kong Productivity Council for Industry Department, March
  46. Orlicky, J. A, Material requirements Planning, McGraw-Hill, New York, NY, p. 175
  47. Plossl, G.(1994), Orlicky's Material Requirements Planning, McGraw Hill, New York, NY
  48. Correl, J. G. and Edson, N. W(1990), Gaining Control Capacity Management and Scheduling, Oliver Wight publications, Brattleboro, VT
  49. Van Veen, K A(1992), Modelling Product Structure By Generic Bills of Material, Elsevier Science Publisher
  50. Ang, J. S. K., Sum, C. C., and yang, K. K.(1994), 'MRPII Company Profile and implementation Problems: a Singapore experience,' International Journal of Production Economics, Vol. 34
  51. Lau, K. H. and Ip, W. H.(1993), 'Implementation of an MRPII System: a case Study for a Hong Kong Manufacturer,' Proceeding of the sixth International Manufacturing Conference with China
  52. Turbide, D. A.(1996), Why systems Fail and How To Make Sure Yours Doesn't, Industrial Press inc., New York, NY
  53. White, E. M., Anderson, J. C., Schroeder, R. G., and Tupy, S. E.(1982), 'A study of the MRPII implementation process,' Journal of Operations Management, Vol. 2, No. 3
  54. Cox, J. F. and Clark, S. J.(1984), 'Problems in Implementing and Operating a Manufacturing Resource Planning Information System,' Journal of Management Information System, Vol. 1, No. 1
  55. Bums, O. M. and Tumipspeed, D. L.(1991), 'Critical Success Factors in Manufacturing Resource Planning Implementation,' International Journal of operation and Production Management, Vol. 11, No. 4 https://doi.org/10.1108/EUM0000000001282
  56. Turnispeed, D. L. and Bum, O. M., and Riggs, W. E.(1992), 'An Implementation analysis of MRPII Systems: a focus on the human variable,' Production and Inventory Management Journal, First quarter
  57. Wisnosky, D. E.(1987), 'ICAM Foundation for Next Generation Factories,' Industrial Engineering
  58. Hargove, S. K.(1995), 'A System Approach to Fixture Planning and Design,' International Journal of Advanced manufacturing Technology, Vol. 10
  59. Colquhoun, G. J., Gamble, J. D., and Brains, R. W.(1989), 'The Use of IDEF0 to Link Design and Manufacturing in a CIM Environment,' International Journal of Operations and Production Management, Vol. 9 No. 4
  60. Yung, K. L., Ip, A. W. H. and Chan, D. C. K.(1998), 'Mechanism for the integration of TQM and MRPII,' Computer Integrated Manufacturing Systems, Vol. 11 No. 4, pp. 291-296 https://doi.org/10.1016/S0951-5240(98)00027-5