Download Directing the Flow of Product: A Guide to Improving Supply by Jeffrey H Schutt PDF

By Jeffrey H Schutt

As well as reviewing the state-of-the paintings in creation and distribution making plans, this consultant current rules and techniques in which companies, together with digital businesses, can layout how one can plan their operations.

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5. Identify the system’s constraints. Decide how to exploit the system’s constraints. Subordinate everything else to the above decision. Elevate the system’s constraints. If in the previous steps a constraint has been broken, go back to step 1. TOC has helped raise the level of discourse substantially in product flow planning because it focuses on elements that MRP neglects. Whereas MRP tries to downplay the importance of capacity constraints, TOC points out correctly that planning product flow is, in fact, all about managing around constraints.

The “best” planning approach for an organization will probably continue to change, both because it will evolve as we try to perfect it and because it will need to be adapted (and occasionally rethought from top to bottom) as the business changes. For example, a shift from primarily North American suppliers to East Asian suppliers creates an entirely different planning problem because of the very different lead times involved. And a shift of some production from those East Asian suppliers to suppliers in Mexico (to, say, shorten lead times) can shift planning requirements yet again.

MRP II represents the most precisely defined “universal” structure for product flow planning that has ever been created. It was advocated by most experts and was the basis for the “MRP Crusade” promoted by the American Production and Inventory Control Society in the 1970s and 1980s. Much packaged software was created by many providers to implement this standard specification (the earliest MRP software had generally been custom coded by an enterprise’s own information technology group). These MRP II software packages grew to include the software to track inventory and manage customer orders as well, that is, to perform some of the core day-to-day transactions by which the business was executed — not just planning anymore.

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