Recovering From MRP Problems and Troubled Implementations

Key Takeaways

• Many companies struggle with MRP accuracy due to inconsistent processes, unreliable data, and workarounds that undermine planning logic.

• Effective recovery requires a structured diagnostic, targeted fixes, and evaluating whether the current system can support complex production needs.
  

• Sustaining improvements depends on ongoing governance, standardized processes, and clear ownership of data and system usage.

In production-centric organizations, the expectations for material requirements planning (MRP) systems are straightforward: anticipate material needs, optimize inventory, and support a seamless production schedule. Yet in reality, many companies find themselves dealing with persistent MRP problems.

Whether you are managing a legacy system or have just completed an MPR or ERP rollout, production scheduling issues and inventory issues can be the canary in the coalmine for deeper problems.

As independent ERP consultants, we often engage with clients after the system has gone live, but before it delivers on its promises. This is where recovery begins.

When MRP Goes Sideways: Recognizing the Warning Signs

Executives typically first notice something is wrong when production delays increase or planners revert to spreadsheets. These are symptoms of MRP failure, not causes. For many companies, the root cause is actually that MRP logic is being applied to processes that were never standardized.

A recent Panorama engagement with an industrial machinery manufacturer illustrates this. Before we helped them select a new manufacturing ERP system, the company relied heavily on tribal knowledge for scheduling and used a patchwork of systems.

Inventory wasn’t consistently connected to the legacy ERP system, production numbers weren’t validated until items reached packing, and the warehouse lacked consistent structure. These conditions prevented planners from trusting system-generated signals, since the underlying data itself varied by department and process—exactly the kind of environment where planning logic breaks down because the supporting processes were never standardized.

How to Fix MRP Problems

1. Conduct a Tactical MRP Diagnostic

Before attempting sweeping fixes, your organization should isolate the root causes of MRP problems. This requires a cross-functional diagnostic that goes beyond IT.

A good diagnostic covers:

• Master Data Integrity: Are item masters, routings, and bills of materials (BOMs) current and accurate?
• System Configuration: Do planning parameters reflect actual business rules?
• Process Design: Are procurement and production processes standardized across locations?
• User Behavior: Are planners and buyers using the system as intended, or working around it?

In the machinery manufacturer’s case, our diagnostic revealed obvious disconnects: inventory tracked in separate systems, scheduling handled manually on a whiteboard, and quality checks that occurred too late to influence production planning. Each of these issues directly undermined the system’s ability to produce valid recommendations.

These micro-errors snowball until the entire planning engine becomes unreliable.

2. Fix the Right Problems in the Right Order

Executives should frame MRP recovery like any digital transformation effort: prioritize changes by business impact and implementation feasibility.

We recommend creating a focused MRP recovery plan that includes:

• A top-five issue list tied to KPIs, such as schedule adherence, inventory turns, and customer fill rate
• Assigned ownership for data, configuration, and process remediation
• Time-boxed pilots to validate changes before scaling

For the machinery manufacturer, improvements we prioritized included centralizing inventory tracking within the ERP system and defining standard planning processes across departments. These changes would establish the foundation for more accurate material planning and reduced reliance on spreadsheets.

3. Determine What to Do When the MRP Problem Is Structural

In some cases, your MRP, ERP, or SCM system may lack the functionality required for your manufacturing environment. We frequently encounter companies whose production scenarios exceed the capabilities of their current system.

When the MRP failure is structural, recovery may require:

• Implementing an advanced planning module
• Rationalizing product structures and routings
• Initiating a partial reimplementation
• Selecting a new system that better aligns with operational complexity

In the machinery manufacturer’s engagement, Panorama helped evaluate whether to upgrade the existing system or adopt an entirely new platform capable of unifying scheduling, quality, maintenance, and manufacturing execution.

Ultimately, the company determined that selecting a more modern, integrated system would enable it to connect inventory, production, and equipment data.

4. Determine The Role of Governance

Even after MRP functionality improves, it will degrade again without ongoing governance. Executive leaders should ensure that ownership of planning logic, master data, and system use is clearly defined.

Key actions include:

• Establishing a manufacturing planning governance board
• Scheduling quarterly MRP audits
• Embedding planning KPIs into operational scorecards

Modern systems may provide advanced planning analytics and workflow tools, but sustained success requires internal accountability.

Learn More About Recovering from MRP Problems

Recovering from MRP problems is a strategic opportunity to recalibrate planning across the business. Accurate material planning supports agility, profitability, and customer trust.

If your organization is struggling with production scheduling issues or is unsure how to fix MRP problems within your current system, our independent ERP experts are ready to help. Contact us below to learn more.