The modernization of Merit Brass

The Merit Brass Company embarked on a modernization program at midyear 1990. Its goal was to improve customer service as economically as possible, since customer service is the most important variable in the industry. The company had outgrown its people-intensive systems and needed to implement management science methodologies to elevate it to the next level of performance. The new integrated management system relied on four major methodologies: statistical forecasting, cellular manufacturing, manufacturing (and purchasing) resource planning (MRP), and finished goods inventory management. At a modest cost and in record time, the company completed the implementation of all four components. The effects proved to be both synergistic and dramatic. The company has made major improvements in customer service while reducing costs.