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Keywords MRP, Technology, Small-to-medium-sized firms, Implementation
Abstract This research seeks to provide an understanding of the MRP adoption process using classic adoption models for prediction. To this end, four classical adoption models were used to provide the foundation for the constructs tested in this study. The framework of research strives to investigate the relationships between benefit analysis, feasibility studies, organizational willingness and the mediating construct, MRP positive evaluation. A statistical analysis on a sample of 109 small and medium-sized firms was carried out which revealed that these constructs play an important role in the decision making process Leading, ultimately, to MRP adoption. The analysis has, thus, lent support to the adoption models considered and might provide useful indications to managers seeking to maximize the investment in MRP packages.
Introduction
Material requirements planning (MRP) systems help manufacturers determine precisely when and how much material to purchase and process based upon a time-phased analysis of sales orders, production orders, current inventory, and forecasts. They ensure that firms will always have sufficient inventory to meet production demands, but not more than necessary at any given time. MRP will even schedule purchase orders and/or production orders for just-in-time receipt.
MRP modules takes the guesswork out of purchasing by automatically calculating material requirements, and coordinating purchase orders and production orders for timely receipt. Unrealistic manufacturing plans can be easily identified, which may arise when there is not enough time to manufacture an intermediate for a target production date, or if a vendor is unlikely to deliver materials by the time they are required.
Since MRP determines requirements based upon master production schedule (MPS), the modules offer several ways to help keep schedule current. For instance, production orders may be scheduled based upon current customer orders and/or inventory levels, thus accommodating both "make to order" and "make to stock" procedures. The MPS can also include product forecasts, which may be calculated automatically using data from sales or production history.
Despite its simplicity, MRP systems hold great potential for making significant contributions in the quest for productivity that would allow small firms to compete in an international marketplace. However, in their zeal to quickly correct several decades of poor manufacturing practices, many small companies rushed to introduce MRP which they viewed...