Orlicky's Material Requirements Planning, Third Edition by: Carol Ptak, Chad Smith – Book Information

Orlicky’s Material Requirements Planning, Third Edition

by: Carol Ptak, Chad Smith

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A fully revised and updated edition of the landmark work on material requirements planning (MRP), Orlicky’s Material Requirements Planning, Third Edition focuses on the new rules required to effectively support a manufacturing operation using MRP systems in the twenty-first century. This authoritative resource offers proven solutions that help you gain the competitive edge through strategic lead time reductions, substantial reductions in total inventory investment, and significant increases in service levels.
Building on the pioneering work of Joseph Orlicky, this new edition of the classic text on material requirements planning (MRP) reveals the next evolutionary step for materials and supply chain synchronization in the modern manufacturing landscape.

Orlicky’s Material Requirements Planning, Third Edition  explains an alternative pull structure for planning and controlling materials flow, and presents results from actual implementations. This thoroughly updated edition offers comprehensive coverage of MRP, describes the current state of the MRP application, and identifies the fundamental changes required to achieve sustainable success given the current global circumstances and technology options. This state-of-the art guide articulates the next generation of MRP logic—demand driven MRP (DDMRP)—and provides a roadmap for the near and distant future for this critical manufacturing management tool.

Table of Contents

A. About the Authors
B. Foreword
C. Preface
1. Overview
2. MRP in the Modern World
3. The Four Critical Questions Answered
4. Inventory in a Manufacturing Environment
5. Principles of Materials Requirements Planning
6. The Material Requirements Planning System
7. Processing Logic
8. Lot Sizing
9. System Records and Files
10. A New Way of Looking at Things
11. Product Definition
12. Master Production Schedule
13. More Than an Inventory Control System
14. System Effectiveness: A Function of Design and Use
15. Industry Effect on MRP
16. Project Manufacturing
17. Remanufacturing
18. Process Industry Application
19. Repetitive Manufacturing Application
20. Sales and Operations Planning
21. Historical Context
22. Blueprint for the Future: Demand-Driven MRP Logic
23. Strategic Inventory Positioning
24. Buffer Profiles and Level Determination
25. Dynamic Buffers
26. Demand-Driven Planning
27. Highly Visible and Collaborative Execution
28. Demand-Driven Material Requirements Planning (DDMRP) Performance Reporting and Analytics
29. DDMRP Future
A. Joseph Orlicky’s Contributions to Material Requirements Planning
B. Definitions: APICS Terms and Their Place in DDMRP
C. New Terms in Demand-Driven Material Requirements Planning
D. To My Best Recollection: The Eras of Material Requirements Planning with Packaged Software
Tools & Media
figure (283)
table (12)
graph (2)

Expanded Table of Contents

A. About the Authors
B. Foreword
C. Preface
SCOPE FOR THIS EDITION
ABOUT THE COLLABORATION
1. Overview
ORLICKY’S VISION
FOCUS AND ORGANIZATION OF THIS BOOK
BIBLIOGRAPHY

2. MRP in the Modern World
KEY QUESTIONS FOR PLANNING AND FLEXIBILITY
DEALING WITH VARIABILITY
MATERIALS OR CAPACITY: WHERE TO FOCUS FIRST?

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?

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

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

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

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

8. Lot Sizing
COSTS IN LOT SIZING
LOT-SIZING TECHNIQUES
LOT-SIZE ADJUSTMENTS
EVALUATING LOT-SIZING TECHNIQUES
BIBLIOGRAPHY

9. System Records and Files
THE TIME-PHASED RECORD
UPDATING INVENTORY RECORDS
THE DATABASE
INPUT-DATA INTEGRITY
BIBLIOGRAPHY

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

11. Product Definition
ASSIGNMENT OF IDENTITIES TO INVENTORY ITEMS
PRODUCT MODEL DESIGNATIONS
MODULAR BILLS OF MATERIAL
PSEUDO-BOMS
INTERFACE TO ORDER ENTRY
BIBLIOGRAPHY

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

13. More Than an Inventory Control System
USE OF SYSTEM OUTPUTS
AN INVENTORY PLANNING AND CONTROL SYSTEM
A PRIORITY PLANNING SYSTEM
DETERMINING CAPACITY REQUIREMENTS

14. System Effectiveness: A Function of Design and Use
CRITICAL SYSTEM DESIGN FEATURES
THE SYSTEM AND THE INVENTORY PLANNER

15. Industry Effect on MRP
PROJECT MANUFACTURING COMPANY
MAKE TO STOCK
MAKE TO ORDER
ASSEMBLE TO ORDER
MAKE TO STOCK/ASSEMBLE TO ORDER

16. Project Manufacturing
PROJECT LIFE CYCLES
PROJECTS IN MRP
CAPACITY DEPLOYMENT
MATERIAL ALLOCATION
SUMMARY
PROJECT MANAGEMENT RESOURCES

17. Remanufacturing
REMANUFACTURING SIMILARITIES AND DIFFERENCES
MANAGING REMANUFACTURING MATERIAL
REMANUFACTURING BILLS OF MATERIALS
REMANUFACTURING ROUTINGS
REMANUFACTURING INVENTORY MANAGEMENT
TERMS RELATED TO THE REMANUFACTURING INDUSTRY1

18. Process Industry Application
PROCESS INDUSTRY OVERVIEW
PROCESS-FLOW SCHEDULING
MRP SYSTEM REQUIREMENTS
SUMMARY

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

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

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

22. Blueprint for the Future: Demand-Driven MRP Logic
THE MRP CONFLICT
DEMAND-DRIVEN MRP INTRODUCTION
THE FIVE PRIMARY COMPONENTS OF DEMAND-DRIVEN MRP

23. Strategic Inventory Positioning
ASR LEAD TIME: A NEW TYPE OF LEAD TIME
ASRLT AND MATRIX BOMS
24. Buffer Profiles and Level Determination
INVENTORY: ASSET OR LIABILITY REVISITED
BUFFER PROFILES
BUFFER ZONES
CALCULATING BUFFER LEVELS
BUFFER LEVEL SUMMARY
SUMMARY
25. Dynamic Buffers
RECALCULATED ADJUSTMENTS
PLANNED ADJUSTMENTS
MANUAL ADJUSTMENTS
26. Demand-Driven Planning
PART PLANNING DESIGNATIONS
THE DDMRP PROCESS
SUPPLY GENERATION FOR STOCKED ITEMS
SUPPLY GENERATION FOR NONSTOCKED ITEMS
DECOUPLED EXPLOSION
27. Highly Visible and Collaborative Execution
CHALLENGING PRIORITY BY DUE DATE
BUFFER STATUS ALERTS
SYNCHRONIZATION ALERTS
EXECUTION COLLABORATION
28. Demand-Driven Material Requirements Planning (DDMRP) Performance Reporting and Analytics
OREGON FREEZE DRY RESULTS
LETOURNEAU TECHNOLOGIES RESULTS
29. DDMRP Future
RESEARCH OPPORTUNITIES
PREDICTION OF THE FUTURE
SUCCESS LEVERAGING TECHNOLOGY
A. Joseph Orlicky’s Contributions to Material Requirements Planning
B. Definitions: APICS Terms and Their Place in DDMRP
C. New Terms in Demand-Driven Material Requirements Planning
D. To My Best Recollection: The Eras of Material Requirements Planning with Packaged Software
Book Details
Title: Orlicky’s Material Requirements Planning, Third Edition

Publisher: McGraw-Hill Education: New York, Chicago, San Francisco, Lisbon, London, Madrid, Mexico City, Milan, New Delhi, San Juan, Seoul, Singapore, Sydney, Toronto

Copyright / Pub. Date: 2011 McGraw-Hill Education, LLC

ISBN: 9780071755634

Authors:

Carol Ptak is currently a partner with the Demand Driven Institute, and was most recently at Pacific Lutheran University as Visiting Professor and Distinguished Executive in Residence. Previously, she was vice president and global industry executive for manufacturing and distribution industries at PeopleSoft where she developed the concept of demand driven manufacturing (DDM). Ms. Ptak spent four years at IBM Corporation culminating in the position of global SMB segment executive.

Chad Smith is cofounder and managing partner of Constraints Management Group, a services and technology company specializing in pull-based manufacturing, materials, and project management systems for mid-range and large manufacturers. He has been at the forefront of developing and articulating demand driven MRP and is also an internationally recognized expert on the theory of constraints (TOC) Carol and Chad founded the Demand Driven Institute, an organization devoted to the proliferation and further development of demand driven strategies and tactics in industry.