"Class A certification is a tremendous recognition, however, the true measure of our efforts is the impact our MRP II implementation is having on our ability to provide even better service to our customers," said Dale Kline, worldwide business manager for aviation fluids, Solutia. "By successfully implementing the MRP II management system, we've been able to raise our on-time delivery against first promise to levels that are consistently above 95 percent."
MRP II is an integrated business-wide management system that enables people to run their businesses with high levels of customer service and productivity while lowering costs and inventories. The system is based on highly efficient integrated planning, which Solutia achieved by implementing world-class business processes, educating employees, and using enterprise resource planning software to share information. Specifically, Solutia used SAP enterprise resource planning software to fully integrate all MRP II processes, which facilitated organizational alignment around a single plan and common performance measures.
In addition to improving its customer service results, Solutia's Aviation Fluids business improved its supplier relationships as a result of successful MRP II implementation. Essentially, MRP II has enabled the business to provide suppliers with a more predictable stream of orders, because it can now optimize production scheduling based on more accurate sales and operations forecasts.
"Of the many thousands of companies that implement MRP II, only a very small number actually accomplish Class A status," said Brant Slade, managing principal, Oliver Wight Americas, Inc. "Its commitment to the Class A process and to internal education enabled the business to combine leading-edge technology with excellent work processes to achieve outstanding bottom-line results. In particular, its extensive use of coaches improved the process while building internal expertise."
To achieve Class A status, a company must meet all criteria as defined by the Oliver Wight ABCD Checklist, which evaluates how effectively a firm uses its operational and management processes.