Orlicky's Material Requirements Planning

✍ Scribed by Carol A. Ptak; Chad J. Smith

• Publisher: McGraw-Hill Education
• Year: 2011
• Tongue: English
• Leaves: 545
• Edition: 3
• Category: Library

✦ Synopsis

The classic MRP work up-to-date with new information on supply chain synchronization Thoroughly revised, "Orlicky's Material Requirements Planning, Third Edition" reviews the poor business results embedded in most of today's business systems; discusses the core problems causing the results; presents and discusses an alternative pull structure for planning and controlling materials flow; and presents initial results from actual implementations. This new edition reveals the next evolutionary step for materials and supply chain synchronization in the modern manufacturing landscape. This update describes: A solution to a chronic MRP-related problem that plagues many manufacturers: shortages of materials, components that block the smooth flow of work through the plant A competitive edge through strategic lead time reductions Significant reductions in total inventory investment Significant increases in service levels

This new edition helps companies tackle three pervasive problems: unacceptable inventory performance; unacceptable service level performance; and high related expenses and waste.

New to This Edition: New section on manufacturing as the heart of the supply chain management, and specific challenges in the 21st century Covers supply chain management (SCM) and distribution requirements planning (DRP) Discusses the impact of Lean and the Toyota Production System Update of integration software Reviews the emergence of demand-driven strategies and the MRP conflict Introduces the new concept of ASR (Actively Synchronized Replenishment) and explains how to incorporate it into business processes Explains positioning and how Six Sigma can help achieve results In-depth discussion of buffers how to size, maintain, and adjust them New chapter on using MRP tools across the supply chain to enable pull-based approaches New case studies which illustrating the techniques described in the book

Comprehensive coverage: The Whole and Its Parts; Manufacturing as a Process; Inventory Management; Prerequisites of MRP 3.0; Traditional Methodology; MRP Logic; Keeping MRP Up to Date; Lot Sizing and Safety Stock; Data Requirements and Management; MRP 3.0; Traditional MRP in Today's Environment; MRP 3.0 Component 1Strategic Inventory Positioning; Component 2Buffer Level Profiling; Component 3Dynamic Buffer Maintenance; Component 4Pull-Based Demand Generation; Component 5Highly Visible and Collaborative Execution; Dynamic Buffer Level Profiling; ASR Demand Generation; Applications; Developing Valid Inputs; Making Outputs Useful; Demand Driven Philosophies and MRP; Engineer to Order Environments; Lessons of the Past; Present State; The Future of MRP 3.0"

✦ Table of Contents

Cover
Title Page
Copyright Page
Contents
Foreword
Preface
Part 1 Perspective
Chapter 1 Overview
Orlicky’s Vision
Focus and Organization of This Book
Bibliography
Chapter 2 MRP in the Modern World
Key Questions for Planning and Flexibility
Dealing with Variability
Materials or Capacity: Where to Focus First?
Chapter 3 The Four Critical Questions Answered
Question 1: Relevance of MRP
Question 2: MRP—Flawed Approach or Poorly Applied?
Question 3: The MRP Conflict with Lean or Pull
Question 4: MRP Progress in the Last 30 Years?
Part 2 Concepts
Chapter 4 Inventory in a Manufacturing Environment
Manufacturing Inventories
Distribution Inventory
The Logic of Manufacturing
Order-Point Versus MRP Systems
The Paradox of Inventory Management
A Distribution Positioning Example
Summary
Bibliography
Chapter 5 Principles of Materials Requirements Planning
Time Phasing
Inventory System Categories
Prerequisites and Assumptions of MRP
Part Numbers
Bills of Material (BOMs)
Applicability of MRP Methods
Bibliography
Chapter 6 The Material Requirements Planning System
Objectives of the System
The Purpose of the System
System Inputs and Outputs
Factors Affecting the Computation of Requirements
Chapter 7 Processing Logic
Inventory Status
Techniques of Time Phasing
Gross and Net Requirements
Coverage of Net Requirements
Explosion of Requirements
Time-Phased Order Point
Entry of External-Item Demand
System Nervousness
Bibliography
Chapter 8 Lot Sizing
Costs in Lot Sizing
Lot-Sizing Techniques
Lot-Size Adjustments
Evaluating Lot-Sizing Techniques
Bibliography
Chapter 9 System Records and Files
The Time-Phased Record
Updating Inventory Records
The Database
Input-Data Integrity
Bibliography
Part 3 Managing with the MRP System
Chapter 10 A New Way of Looking at Things
Planned Versus Actual Manufacturing Lead Time
Safety Stock in a New Light
A Fresh Look at Queues
Work-in-Process Revisited
Total Planning Hierarchy
Bibliography
Chapter 11 Product Definition
Assignment of Identities to Inventory Items
Product Model Designations
Modular Bills of Material
Pseudo-BOMs
Interface to Order Entry
Bibliography
Chapter 12 Master Production Schedule
Master Production Scheduling Concepts
The Final Assembly Schedule
Functions of Master Production Scheduling
MPS Development
Closing the Loop
Management and Organizational Aspects
Bibliography
Chapter 13 More Than an Inventory Control System
Use of System Outputs
An Inventory Planning and Control System
A Priority Planning System
Determining Capacity Requirements
Chapter 14 System Effectiveness: A Function of Design and Use
Critical System Design Features
The System and the Inventory Planner
Chapter 15 Industry Effect on MRP
Project Manufacturing Company
Make to Stock
Make to Order
Assemble to Order
Make to Stock/Assemble to Order
Chapter 16 Project Manufacturing
Project Life Cycles
Projects in MRP
Capacity Deployment
Material Allocation
Summary
Project Management Resources
Chapter 17 Remanufacturing
Remanufacturing Similarities and Differences
Managing Remanufacturing Material
Remanufacturing Bills of Materials
Remanufacturing Routings
Remanufacturing Inventory Management
Terms Related to the Remanufacturing Industry
Chapter 18 Process Industry Application
Process Industry Overview
Process-Flow Scheduling
MRP System Requirements
Summary
Chapter 19 Repetitive Manufacturing Application
General Repetitive Application
Kanban
Rate-Based Scheduling
Production-Sales-Inventory Analysis
Backflush
Period Costing
High-Volume Mixed-Model Manufacturing
Configurators
Summary
Chapter 20 Sales and Operations Planning
What’s in a Name?
Traditional Sales and Operations Planning
S&OP, the Unifier—Traditional S&OP Challenged
S&OP, the Reconciler and Integrator
Knowledge and Know-How Versus Drowning in Data
Uncertainty Versus a Single Set of Numbers
S&OP as the Aligner to Success and Future Sustainability
Discoveries Leading to Breakthrough S&OP
Application of S&OP to Various Environments
Summary
About the Authors
Bibliography
Part 4 Looking Backward and Forward
Chapter 21 Historical Context
Pre-MRP Inventory Control
The Story of MRP
Evolution of the Art
Evolution of MRP and Planning Systems
Planning, Execution, and Control
Chapter 22 Blueprint for the Future: Demand-Driven MRP Logic
The MRP Conflict
Demand-Driven MRP Introduction
The Five Primary Components of Demand-Driven MRP
Chapter 23 Strategic Inventory Positioning
ASR Lead Time: A New Type of Lead Time
ASRLT and Matrix BOMs
Chapter 24 Buffer Profiles and Level Determination
Inventory: Asset or Liability Revisited
Buffer Profiles
Buffer Zones
Calculating Buffer Levels
Buffer Level Summary
Summary
Chapter 25 Dynamic Buffers
Recalculated Adjustments
Planned Adjustments
Manual Adjustments
Chapter 26 Demand-Driven Planning
Part Planning Designations
The DDMRP Process
Supply Generation for Stocked Items
Supply Generation for Nonstocked Items
Decoupled Explosion
Chapter 27 Highly Visible and Collaborative Execution
Challenging Priority by Due Date
Buffer Status Alerts
Synchronization Alerts
Execution Collaboration
Chapter 28 Demand-Driven Material Requirements Planning (DDMRP) Performance Reporting and Analytics
Oregon Freeze Dry Results
LeTourneau Technologies Results
Chapter 29 DDMRP Future
Research Opportunities
Prediction of the Future
Success Leveraging Technology
Appendix A: Joseph Orlicky’s Contributions to Material Requirements Planning
Appendix B: Definitions: APICS Terms and Their Place in DDMRP
Appendix C: New Terms in Demand-Driven Material Requirements Planning
Appendix D: To My Best Recollection: The Eras of Material Requirements Planning (MRP) with Packaged Software
Index
A
B
C
D
E
F
G
H
I
J
K
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M
N
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P
Q
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T
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