Material Requirements Planning (MRP) is a methodology that translates master schedule requirements for end items into time-phased requirements for subassemblies, components, and raw materials. Enterprise Resource Planning (ERP) is a computerized system designed to connect all parts of a business organization as well as key portions of its supply chain to a single database for information sharing.
As a consultant working in the area of business analysis, you are expected to make recommendations to clients regarding the optimization of business operations, including production, material control, quality, and delivery. In order to convey a sense of professionalism, self-efficacy, and value to the client, you have decided to create a detailed report that outlines the key components of MRP to recommend or caution against the installation of an MRP system.
Since your services are rewarded primarily by the effective launch of MRP within the client's organization, you want to define certain business characteristics that are likely to undermine or block the effective application of MRP so that you will recognize and avoid consulting agreements that carry a high risk of failure. Knowing in advance, what these undesirable characteristics are puts you in a position to adjust your promise to deliver accurately or withdraw your name from the list of potential vendors for the client.
Include the following in your report:
- A list of business operating characteristics best aligned with MRP (where MRP is most effective).
- A list of operating characteristics that render MRP ineffective or undesirable (when should a client notimplement MRP).
- Benefits of implementing or improving MRP in an organization (list at least 8 key areas of expected improvement, such as reduced lead times).
- Five selected items from your list of 8 expected improvements, along with descriptions about how a companion ERP (Enterprise Resource Planning) system might be used to link certain functional areas or operational activities to achieve and maximize each expected improvement effectively. This requires, for each of the five items, a minimum of two paragraphs that:
- Identify the functional area(s) that are favorably affected by the benefit.
- Describe ERP data elements (types of information) that serve as inputs and outputs of the ERP and MRP systems.
- Provide a real-world example that clearly reveals how the chosen improvement item influenced each functional area in one or more of these five key scorecard categories: Safety, Quality, Delivery, Cost, and Employee Morale.
- A summary of your thoughts on MRP.
Support your paper with at least five (5) scholarly or peer-reviewed sources. In addition to these specified resources, other appropriate scholarly resources, including older articles, may be included.