Complexity and Precision – Part Two
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?
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?
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?
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.
Today, companies of all sizes and industries are solving their inventory firefighting chaos by using Demand Driven Material Requirements Planning, a method to model, plan and manage supply chains while protecting and promoting flow.
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.
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?
Reality #1: We live in an imprecise world. Challenge #1: We have flawed data and inaccurate forecasts. Misconception #1. We think the right thing to
And since I imagine none of you would be happy without a gas gauge, then I ask you, “Why do you think Safety Stock is sufficient to manage millions of dollars’ worth of inventory?”
the more steps you have, the less likely your calculations will be completely predictable.
So, why are we still applying the solution when we no longer are facing the problem? There are only two possible answers to that.
We are looking at the wrong end of the problem.
If you’re frustrated and unable to see the path forward, it starts with inventory management and fixing the inadequate systems you’ve been forced to work with. Once you see the solution that I’ll present to you, you will never be able to “unsee” it.
Your goal is to maximize the money kept in the Saving’s account. And therefore, minimize the money in your Checking account. But don’t let the checking balance drop below zero.
Looking back, I don’t know what took me so long to realize that I have outgrown you. You never had an adaptable planning process – you only work if there is no variability.
We know intuitively that we must be agile in order to meet the changing and volatile customer demand. Why do we continue to insist that precision and the resulting chaotic emergencies are the best way to achieve agility?
