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.
Demand Driven MRP results in having the right amount of inventory for strategic parts. Because it creates decoupling points that absorb the variability of the bullwhip effect, I have less surprises regarding inventory. And if I focus on having the right inventory, I can eliminate shortages by only buying the parts I need. At the same time, I can allow the excess inventory to reach its proper level.
Material Requirements Planning (MRP) has been the solution that has allowed manufacturing companies to manage their inventories and their production schedules for around 50 years.
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.
