MRP doesn’t work well today
Every argument you can give, every tweak that you perform, every data export and re-analysis that you explore that prevents MRP from failing, is exactly my point. The system doesn’t work as it is today.
Tag: Supply Chain
Every argument you can give, every tweak that you perform, every data export and re-analysis that you explore that prevents MRP from failing, is exactly my point. The system doesn’t work as it is today.
First, recognize that Inventory is your leverage point. Having the right inventory in the right positions is the first step. Traditional MRP assumes that you wait for a customer order, get the required inventory (no more, no less) and after shipping, you have no inventory left.
It doesn’t matter if you’re in upper management or deep in the trenches, neither side seems to be able to see the perspective of the other. Is the gap between these positions just too great? Is one side or the other incapable? Are we attempting to achieve opposite goals? Or are we speaking different languages?
The way we thought at the time made it seem true, but we sometimes aren’t able to connect the newly acquired information with the old knowledge. One I’m thinking about is related to supply chain, purchasing and inventory management.
I’m hearing about more and more companies that have a Learning and Development Director position (or similar). There is a recognition that adding learning and development initiatives as an afterthought is not working. We need to make it a strategic initiative. But still, why?
The world is abuzz with speculation about the coming effects of Artificial Intelligence. Will robots take over the world? Will my coffee machine figure out the right ratio of coffee to water?
It starts with planning and scheduling, doesn’t it? Deciding the dates to travel is maybe the first thing. That involves several potential allies. You don’t walk to the airport empty-handed and pick the next random destination. Sounds fun, but no, that’s not how it’s usually done.
What is it that makes something a Supply Chain? Is it simply viewpoint? Everywhere I look I see supply chain. The computer I use, the chair I sit in, the painting on my wall, the books on my shelf, all came into being and then to me via some facet of a Supply Chain.
I get these crazy thoughts that perhaps sometimes we are going about things the wrong way. Or maybe it is clearer to say we are starting at the wrong end. To achieve any goal, there are always at least two approaches to take. Should I start with the target and determine how it can be achieved? Or should I start with a process or behavioral change and see how much improvement I can make?
What are the things that, if we could find them, would make Supply Chain Management a whole lot easier? In fact, they are the things for which some of us search our entire careers. Have a look at my list of three. Let me know if you agree or if you have additional holy grails that you seek.
What if we could segment the precision, with built-in connectivity between the segments, rather than forcing the entire operation into a step by step linear process?
We can embrace the complexity and build a system where everyone is judged on the preciseness of their input and their output. Aligning the various complexities along the various steps of a process so that each step is exactly and precisely in line with the preceding and proceeding steps. Sound simple?
What does it mean to be over-qualified? When I was hiring people, I was always eager to find those who may one day replace me or even surpass me. Why would I want to hire someone that was only capable of meeting the current requirements?
During our phone conversation yesterday, when you asked me how long before we could ship our product to you, I went about researching the lead time for our top selling product.
Traditional MRP has become the focus of Buyers, Planners, and Schedulers with input from Sales and Customer Service and output impacting operations, shipping, and logistics.
Years ago, at one of our APICS meetings, we had a meteorologist from a local television station as our guest speaker. I figured it would be interesting, but I never figured that her first words would be like a beacon in the darkness and a goal for which I have been striving ever since.
We all can agree that having the right amount of inventory is valuable. Yet most businesses have too much of the wrong stuff and too little of the right stuff.