Theory of Constraints Handbook - James Cox Iii [224]
While some manufacturers turn to various technologies and process improvement approaches to reduce variability in individual processes on the shop floor, the reality is that variability and volatility are rising dramatically when you examine the bigger picture. No longer can a company compete simply by looking internally. Now a company must consider the entire enterprise as well as the supply chain within which it operates. Today’s manufacturing operations are far more susceptible to disruptions throughout their internal operations and external supply chain due to:
Global sourcing and demand
Shortened product life cycles
Shortened customer tolerance time
New materials
More product complexity and customization
Demands for leaner inventories
Inaccurate forecasts
Material shortages
Complex synchronization issues
More product variety
Long lead time parts/components
More offshore suppliers
The bottom line is that these factors combine to create an environment where planning scenarios that are more complex exist and those scenarios often come with higher stakes attached.
In Table 12-1, we outline the organizational effects of typical MRP implementation attributes.
Table 12.1 The Organizational Effects of Typical MRP Attributes
As defined in the APICS Dictionary and taught in APICS education, these basic MRP attributes and functions are well understood. The limitations and implementation issues have been the subject of many APICS dinner meetings and conference presentations over the lifetime of the technology. One only needs to examine the APICS international conference proceedings from the past three decades and you will discover a variety of proposed solutions and workarounds. The early pioneers like Ollie Wight, George Plossl, Dave Garwood, and Walt Goddard provided many ideas that were built upon as practitioners continued to struggle with these issues. These suggested policies, procedures, and workarounds, however, can contain functionality that has nothing to do with MRP. Sometimes this additional functionality simply moves the pain points to another part of the organization. Many times, the additional functionality does not overcome limitations that are more fundamental and design issues that tend to go unaddressed.
Conventional MRP implementations just do not fit the new pull-based manufacturing and materials solutions required to be fast, lean, and flexible in today’s hypercompetitive environment. Users are frustrated because they cannot complete their work inside the system. To get the job done, they extract data to Excel® or Access®. Even worse, they use manual sticky notes and manual scheduling white boards. Gone is the desired integration driving the investment in the formal system. In the effort to get the job done at any level, the IT landscape is more complicated and the costs to support it constantly increase.
The MRP Conflict Today
Does your company work within its formal planning system or does your company work around this system? Does it try to do both at the same time? Are spreadsheets, sticky notes, and manual tracking systems still alive and well in your operations even though you have implemented an MRP or ERP system in the last 10 years?
When it comes to truly effective materials management, most Purchasing, Manufacturing, and Production Control personnel frequently feel like their hands are bound and tied. MRP’s power has always been its ability to manage BOM connections in order to generate total net material requirements (demand orders that turn into manufacturing orders or purchase orders). The more complex and