Development of low cost MRP system within SME electronics company

Abstract

Many Thai SMEs are facing problems with production planning and inventory control. Some of these problems can be helped with a MRP system, but unfortunately many SMEs cannot afford a full commercial system. Also, a commercial system may not be appropriate, because it might be too complex for the problem at hand. This thesis details the development process for an MRP system within a SME electronics company, which has problems with its production planning and inventory control. It shows how the system is developed, using only the tools that are available to most SMEs. The stages of development included: • Planning • Data collection and analysis • Drafting of the overall system design specification • System design • Programming and testing The development of an MRP system is only the first step towards implementing the system. So the critical success factors that are usually considered when implementing a MRP system were also considered where applicable to ensure that the project was successful in its aims. Obtaining accurate data was an obstacle in an environment where many processes and data were not recorded. In some cases, such as obtaining leadtime data, there was no information recorded, but it was not practical to obtain the data by the most accurate means, so an alternative source had to be sought. After a system validation by the management within the SME, it was concluded that there was no expenditure in terms of hardware or software, and that the system fulfilled all the requirements set by the management.