Challenges to sustainable Manufacturing Resource Planning implementation in SMEs: An exploratory study

For manufacturing SMEs, Manufacturing Resource Planning (MRP II) systems can offer a multitude of benefits, but equally the potential exists to negatively affect the firms. Research that has explicitly focused on the motivations individual firms have for implementation and the challenges that may be encountered is limited. This study provides a review of some commercially available MRP II systems suitable for manufacturing SME’s, and a consideration of the implications of cloud-based and locally-hosted implementations. Through a series of director-level interviews this exploratory study of five Welsh manufacturing SMEs sought to understand their perceptions of MRP II, with a particular focus on the expected challenges for implementation and opportunities for improvements. It is found that there is much demand for SMEs to implement MRP II, from which competitive advantage is expected. Furthermore, it is highlighted that managerial knowledge of MRP II systems is low, and there is an identified requirement for private and public sector training. In terms of implementation, an important gap in managerial knowledge of Business Process Reengineering is identified, hindering manufacturing SME managers in the design of processes that are amendable to application within the constraints of MRP II systems.