a. Were company Y successful, or unsuccessful, in the introduction of MRP II? b. Did company Y identify all of the factors relevant to the introduction of the system at the outset and, if not, what did they miss? c. What were the organizational impacts of the MRP II and how well were they managed? On the basis of the conducted interviews of the different department heads of Company Y, the introduction of MRP II was rather unsuccessful. he system may have provided a common database, may have reduced time spent pulling information together as well as defending various data in various departments, may have provided better information system as designed and may have made inventory much easier but however, crucial objectives of the company in the introduction of the MRP II system were not achieved and have eventually made some serious problems that may have made the system technically ineffective. Among the problems was teamwork and team building.
This factor is very common in company Y and important since this has to take place for the system to be effective, the team has to focus on common objectives between and within various departments of the organization itself, majority of the department heads are pointing to the production department which is practically the core of the company since company Y is into production of chemicals, the production department tends to do things on their own way resisting and disregarding the system and how it should work in the first place, this has gotten the company with stock accuracy as well as inventory imbalances making the system completely useless.
Another problem is insufficient and ineffective training, discipline and lack of appreciation to all people in the organization including the managers about the whole system, this problem has restrained their aim to better use the people who were not fully utilized as the people did not fully understand the aims and objectives in the introduction of a new system and practically how the system should work, not knowing what they are supposed to do resulting in work dependence, as training was mostly insufficient and ineffective understanding the system relies on self study when most of them were resistant to learning and in understanding the new system, most of them do not cooperate and coordinate properly with other departments as they would continually insist in doing the work the old way causing a lot of problems and preventing the organization in achieving one of its goals.
Regarding the MRP II package, the MIS department have never been satisfied, according to Smith, the MIS manager, “it was unworkable”; “ it was flawed in logic and flawed in program” in which only 8% of all the software programs in the system were used so most of it was a waste. Viewing the introduction of MRP II system, most of it was probably done incorrectly and was a mistake relying much on perceptions of people not well informed about programs and systems and viewing the package would work in all fields and not on critical analysis on what system best fits the certain site since all 3 sites are producing different chemicals with different system requirements.
Company Y, with its large organization size, having 4 different sites with different product operations, the company had missed making further analysis of the operations and its system requirements having decided in buying a packaged software, they certainly missed the fact that a package cannot fully cater all needs of such different areas of operation. Another concern according to the MIS department, is that with packaged software, they have a life cycle and in time needs modifying more and more and there will come a point in time when maintenance of that software is not anymore viable and needs to be cut off. Having the project decided by the people of the organization, the MIS department has been out numbered and choice wasn’t open to them as part of a very large group. The large group is understood to be not in the field of programming and decision was laid on their hands. So in the event of decision making, it was definitely a mistake.
Buying the MRP II package, although it was part of their policy to buy packages but it has made a lot of confusion in various departments causing operational problems, because there are occasions that packages don’t do the job. The MIS department has to make a lot of changes in the system itself which was also done incorrectly in the first place. They have been very helpful but then what they did was they looked at the area after they had changed the system. They should have looked and studied all the areas/departments first before proceeding with the design and the changes. They must fully understand of how different areas of the sites work before changing the system.