MRP is Significant But Not Sufficient
Planning systems (MRP/ERP/APS), with their item orientation, are well suited to provide the data regarding individual inventory items. But as significant as inventory information is to your business, it is not sufficient to meet today's need for actionable information required for rapid decision making. Faced with shrinking decision windows manufacturers need immediate insight into their operations on demand.
Planning systems (MRP/ERP/APS), with their item orientation, fall short in meeting the need for quick, ad hoc backlog analysis necessary to determine who needs to focus on what now to prevent problems later today, tomorrow, next week or even next month. Planning systems (MRP/ERP/APS) fall short because they suffer from 3 "character flaws":
- Extended Processing Cycles.
Because planning systems tend to require significant computing resources they are nearly always run between Midnight and 5am "tomorrow" morning.
- Requirement Source Blindness.
The first step for essentially every planning system is to sum the item requirements. The summation process results in a database devoid of individual requirment's quantity or source - customer or shop order, forecast or inventory policy.
- Item Isolation.
Planning systems process each individual item in near total isolation but operations personnel think in terms of matched sets - to make that assembly requires this list of components.
The unfortunate aspect of these MRP Character Flaws is the constraint they place on your organization is unrecognized.
They’re constraints because they prevent you from efficiently and effectively meeting commitments you’ve made to customers. They are unrecognized because it is assumed this is the way it has to be - they’ve become the accepted norm.
But make no mistake these unrecognized constraints and their work arounds impact your delivery process from the very minute you accept a customer order. Coupled with decision window shrinkage, the effort to support these hidden constraints hinder your ability to handle the myriad of complex decisions faced by manufacturing management every day.