Affiliation:
1. Total Technology, University of Manchester Institute of Science and Technology
Abstract
This paper describes the application of the discounted cash flow (DCF) techniques for MRP evaluation, as discussed in the companion paper (1), by means of an ‘in-depth’ case study of a medium sized, small batch engineering company. The results demonstrate that the benefits of material requirements planning (MRP) are company-wide, and that when these benefits are quantified, the financial case for MRP is greatly strengthened. The paper also shows that MRP should not be viewed within the restricted concept of a technique which only improves shop floor efficiency. The use of the evaluation techniques within a number of major companies reveals that the ‘company-wide’ return on investment is much greater than has been previously suggested, and that the greatest potential benefits of MRP accrue outside production.
Reference10 articles.
1. Primrose P. L., Hoey J., Leonard R. A methodology for incorporating the ‘company-wide’ benefits of MRP within a discounted cash flow investment analysis. Proc. Instn Mech. Engrs, Part B, this issue.
2. New C. Latest trends in MRP. The 18th European Technical Conference on Production and Inventory Control, Birmingham 3–5 Nov. 1983 (BPICS).
3. Why computerised production control systems continue to disappoint
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