Success and Failure of MRP II Implementation

SUMMARY This paper assesses the reasons for the success or failure of manufacturing resource planning (MRPII) implementation projects. It begins by discussing the literature and research on success and failure of these systems and presents evidence from cases prepared by the authors. The paper is not concerned to prescribe ‘best practice’ for MRP implementation. The first section reviews the relevant literature and concludes that there is a divergence of opinion as to what constitutes success, raising questions on the usefulness of current methods of establishing whether implementation is successful. The latter section of the paper uses results from longitudinal (process) research carried out by the authors. This starts with a discussion of what counts for success. The discussion highlights the importance of understanding the full potential of MRPII in effecting change of organizational structures, cultures and practice. Several factors that contribute towards MRPII failure are next considered. Finally,‘big bang’style implementations, such as those recommended by the Ollie Wight organization, are most likely to be successful if the organization follows a strategic approach to planning. There also needs to be a high degree of fit between organizational structure, culture and the demands of the MRPII system.