Problems in Implementing MRP Systems

Though the underlying principle of an MRP system is simple, many times the implementation fails due to the following reasons:

• Inadequate employee training and involvement

• Use of inaccurate and or obsolete data

• Inappropriate product environment                  

Inadequate Employee Training and Involvement

Inadequate employee training and involvement is one of the major obstacles in implementing MRP systems. If the employees are not trained properly, they will not be able to understand the system and hence cannot use it properly. In order to derive maximum benefits from an MRP system, employees should be made aware of all the functionalities provided by the system. While installing an MRP system, employees' suggestions should be taken into consideration. Workers' involvement helps create better systems and injects a sense of ownership among them.

Use of Inaccurate and Obsolete Data

An MRP system cannot yield good results if the data is either inaccurate or obsolete. In other words, the system will not yield the desired results if the BOM records are not updated regularly. To improve the accuracy of the system each inventory item should be assigned with a unique item code so that it can be identified easily and the complexities in data maintenance is reduced. Common items required in the production of different products are identified and pooled together into a single category to avoid discrepancies in inventory management. The inventory database should be updated on a regular basis to ensure timely and accurate recording of all transactions (i.e. receipt and withdrawal of materials).

Inappropriate Product Environment

The success of an MRP system usually depends on the product environment. The system is useful only when an organization needs to purchase many items, a majority of which are components and parts. The demand pattern of these items should be dependent in nature and irregular in timing. Moreover, the lead times for purchase of these items should be consistent. If any of these criteria are not satisfied, the functioning of the system may not be economical and satisfactory.

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