A study of Manufacturing Resources Planning (MRPII) implementation in China

In manufacturing organizations, the largest and most important information systems are Manufacturing Resources Planning (MRPII) systems. These systems, in use in the US since the 1970s, have been implemented by an increasing number of Chinese companies. In this study, we evaluate the factors of influence and benefits realized by Chinese firms through MRPII. Based on survey responses from 93 companies in China, we analysed the factors that significantly influence the benefits of MRP, using the Additivity and Variance Stabilization (AVAS) and the Projection Pursuit Regression (PPR) methods. Applying AVAS and PPR methods established the functional relationship between the benefits achieved and the extent to which problems are encountered in implementation, the degree of involvement by different functional areas during the implementation and the number of functional modules used.