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THE MRP CONFLICT
The Problem
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 Bill of Material connections
in order to generate total net material requirements (demand orders that turn into
manufacturing orders or purchase orders). The more complex and integrated the product
structures and manufacturing facilities are, the more necessary MRP is for netting
and getting ahead of critical and long lead time parts. Most Purchasing, Manufacturing
and Production Control personnel realize this and are forced into a set of compromises
that just don't work.
Are any of these compromises visible in your environment?
- Manual Work Around Proliferation – Frequently companies try to work around
their MRP system by relying on stand alone, disconnected and highly customized extraction
tools like Excel® spreadsheets and Access® programs.
- Flatten the Bill of Material (BoM) – Sometimes companies try to simplify
the synchronization issue by flattening the Bills of Material.
- Make to Order Everything – Still other companies choose to place all of their
cash in raw material and purchased components and go completely make to order.
- More Efficient Forecasting – Other companies implement advanced forecasting
algorithms or hire more Planners in hopes of guessing better.
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Learn more about the problems associated with these compromises by downloading the
whitepaper, Beyond MRP, here.
The Solution
Actively Synchronized Replenishment – the way out of MRP Compromises!
Actively Synchronized Replenishment (ASR) provides no-compromise support for manufacturers
regardless of their preferred manufacturing technology. In a world of improvement
technology religions, ASR is agnostic. The heart of its power is simple - material
and component availability even in complex environments is tied to ACTUAL consumption.
This is essential to support pull-based scheduling and execution systems such as
Lean, and the Drum-Buffer-Rope technique of the Theory of Constraints; but it also
offers the potential for major performance improvement in companies which use MRP
in a traditional scheduling environment.
Actively Synchronized Replenishment (ASR) builds upon the traditional replenishment
approach of replacing what was taken to create a dynamic and effective pull-based
solution to answer the challenges of today's manufacturing landscape. In addition,
through a new approach in materials planning and execution, ASR is designed to directly
tie material availability and supply to ACTUAL consumption. This is a prerequisite
to effectively utilize pull-based scheduling and execution methods like Lean and
Drum-Buffer-Rope (DBR).
To learn more about the four main solution components of Actively Synchronized Replenishment,
download the whitepaper, Beyond MRP, here.
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The Tool
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Replenishment+® is the only materials PLANNING and EXECUTION tool in the world
designed from the ground up accomplish Actively Synchronized Replenishment. Learn
more about Replenishment+® here.
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CMG - Constraints Management Group - The Thoughtware People, Replenishment+ and
R+ are all registered trademarks of Constraints Management Group, LLC
DBR+ is a trademark of Constraints Management Group, LLC
Copyright © 2000-2008, Constraints Management Group, LLC.
ASR