Designing a Rate-Based Planning Process
Rate-based planning (rbp) is a significant departure from conventional S&OP and the conventional scheduling practices of MRP (material requirements planning), as imbedded in all ERP (enterprise resource planning) systems. Using RBP can have a transformational impact on your business, increasing cash flow and delighting your customers with excellent service.
MRP, JIT, and the so-called pull systems that ERP has added all start the production process when a new order comes in and trips a replenishment signal, either a safety-stock level or a Kanban trigger. This trigger is not limited to any capacity consideration, nor is it sensitive to order trends; it just starts new production even when the ...