IMPLEMENTATION STEPS

by
Brian Willcox CFPIM
of
Action MRPII
 
Last month I looked at the organisation needed to manage a successful implementation. This month I will go through the logical steps that should be followed, one by one.

The apparent steps at first glance are probably; choose the hardware, find a package, turn it on and all is well. Unfortunately a little more effort is required.

Experience has shown that the following steps need to be taken during the life of an implementation.
 

1. First Cut Education

It is essential that the top man and his first line understand what they are letting themselves in for. They are going to be party to the decision of whether to go the MRP route, and which system is taken to run their business. They need to know the principles involved and which questions to ask. The 2 day executive overview course is used for this.

The 5 day Full course is used for the project team to give the selected people a more detailed understanding of what is needed. The project team in conjunction with the executive are the people who define what the system must do and how it will do it. Therefore they need to understand it. 
 

2. Justification

The next step is to be sure the MRPII approach is the one that is best for your company and from a financial point of view, it is a good business investment. Are you prepared for the time, energy, disciplines and commitment it demands. If you are sure, the next step is to define exactly what this new system must be capable of to support your business. 
 

3. Statement of User Requirements

It is not uncommon to call in outside help to work with the project team to establish the real business needs. If this is not done, it is often found that the company's bad habits are just computerised. The resulting specification can be used during the next phase which is to choose the system.
 

4. System Selection

The first step is to decide which package would be suitable to meet the company's needs and only then can the hardware be selected. The decision to buy a package against in house development is not usually a major issue these days unless the company has some very unusual requirements. Normally a package can be found to meet most of a company's requirements. Many company's find it advantageous to obtain help from an outside knowledgeable independent consultant for this task as it has been compared to walking through a mine field. It is a major step and can be a costly one, if not careful.
 

5. Software Training

Once the software is chosen, the project team needs to go through full training with the software supplier. This is for them to understand the mechanics of the particular package chosen.
 

6. Match Company to the System

This is the big part of the job which many people do not consider and most of the software suppliers don't mention until the order is signed. It is often thought that you buy the system, load it onto the machine, turn a switch and it all happens. A great deal of work needs to be carried out before it can be used. It requires the project team to sit down and sort out field by field what is to be used and how it is to be used. They are effectively redefining how the company will operate and where major policy changes or reporting lines are to change, get agreement from the executive. This task normally takes several months to accomplish.
 

7. Module Training

Once the needs of the company have been defined and how the system will meet those needs has been agreed, then the next task is to train the other people within the company. The company has passed the point where it can use standard packaged training courses, as they are now using a specific software package and driving it with the decisions they have made as to which fields to use and the rules to be applied to those fields. The most beneficial approach to follow is to use the "train the trainer" approach with customised module courses. This means that a course is written following the logic of the software package and based on the decisions made as to how the company will use it. The course should also use the company's products and part numbers to make it easier to relate to. The courses should be run by the manager's for their own staff. The advantage is that the managers know the problems, the day to day handling of the business and when questions are asked can give an intelligent knowledgeable answer.
 

8. Simulation Training

To ensure that the end users are prepared and capable of using the new system on transfer day, hands on training needs to follow the module training. A copy of the system needs to be created on a small data base with a model company on it using the company's own products and then to orchestrate a daily session for the key users. This will probably last about an hour a day for about six weeks and each day the sessions get slightly more difficult until by the end of the six weeks the day to day problems are being created. It is run like a normal system with daily updates at night and the reports given to the relevant people the next morning. This means that they become practised in receiving the information, interpreting it and applying the logical thinking that the system demands. 
 

9. Pilot Run

A small part of the company is put live first to prove that the system does do what it was believed it would do and the proposed methods are practical. Should problems occur then all the company's resources can be used to rectify the situation with out it being a major catastrophe. Care must be taken that the pilot is run in an area which is relatively separate within the company, but has the complexity to test the system adequately.
 

10. Full Run

Once the pilot run has been successful for a few weeks and a month end has been accomplished, then it is time to convert the rest of the system. Once you are live it is a matter of maintaining and keeping the system up. It should be remembered that MRP is like anything else in manufacturing, if you take the pressure off, it stops. MRP needs daily maintenance to ensure that the information is valid, is being used correctly, then it will provide the service people demand of it.
 

11. Post Implementation Audit

Once the system is up and running, one needs to know if it is achieving its objectives. Certain savings and reductions were used to justify the project, so it should be checked that they have been obtained. If not, the project team need to put together an action plan to ensure the targets are met.
 
In summary, implementing an MRP system is hard work but very rewarding. The benefits are not just the financial gains but that the different heads of departments actually got together to resolve the best way of running the business. They will all have gone through a learning cycle and will now understand why things happen like they do. Whatever you do, remember that MRP is a "peoples" system and no matter what you do, it is the end users that decide in the end whether it will work or not.
 
September 1997
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