Supercharged Supply Chains

CHAPTER 6Manage MRP: Do Not Let MRP Manage You (Do Not Let the Tail Wag the Dog)

In Chapter 2, Get the Basics Right: Eliminate the Churn, there was discussion about the constant complaints associated with computerized planning and control systems. Supply Chain guru Oliver Wight had a simple planning logic: “Tell me what you want, what you already have, and I will tell you what to get” is perfectly stated and the answer will never change unless you change or mismanage the data in the planning system.

FIGURE 6.1 Business Excellence Planning

Previous chapters (Inventory: Essential to Know What You Have, Bill of Material: A Solid Foundation, and Routings: Accuracy Required for Valid Plans), have described how to achieve and sustain the minimum required accuracy thresholds necessary for planning systems to recommend valid plans (accurate and achievable). This chapter introduces the basics of Material Requirements Planning (MRP) planning systems and how to best utilize their capabilities. Future chapters will present the drivers of MRP – Integrated Business Planning (IBP) and Master Scheduling. Also presented are chapters covering critical MRP inputs (Demand Planning) and outputs (Capacity Planning, Internal and External Scheduling (i.e. Supplier Scheduling), and Financials), which address all the elements in Business Excellence Planning, Figure 6.1. In Chapter 18 the importance ...