Page 404 - Orlicky's Material Requirements Planning

CHAPTER 21 Historical Context 383

the same vehicle can be used in myriad ways to achieve the different objectives
of a number of users with varied interests and to react to changes. This is not to
say that a concept may not fit a wide variety of businesses but rather that the
application will be unique company by company.
The tools of planning, execution, and control include many techniques
and tools usable in many ways. Selecting and applying the right tools is impor-
tant for success, but a sound strategy for directing their use is vital for manu-
facturing enterprises to remain competitive.
3. Do not commit any flexible resource to a specific use until the latest possible moment.
All resources used in manufacturing have flexibility, some more than others.
People can handle a wide variety of tasks and acquire new skills. Materials
can be made into many different items. Machinery can produce a myriad of
parts and products. Money can buy an almost unlimited variety of goods and
services. Fuels and energy have many uses. But once a resource has been con-
sumed in the production or procurement of some specific material, component,
product, or facility, its flexibility has been lost. This will be highlighted in depth
later in this book.
Plans cover future occurrences, subject to “the slings and arrows of outra-
geous fortune.” They undoubtedly will change, and the amount and effects of
changes will be more severe as planning horizons lengthen. The later specific
allocations of resources are made, the fewer the changes are necessary, the less
severe their effects, and the less waste of resources. The strategy just stated
derives from the first principle in this list and explains the sources of benefits of
faster flows of materials and information.
Each organizational group within a company has its own functions and
objectives, but its plans and actions must be communicated to and coordinated
with those of other groups through integrated systems. Mislabeled “informa-
tion systems,” these really process only data. Information is the fraction of such
data with specific use by or meaning to people doing their work. Data-process-
ing systems must be designed to produce needed information for users in prop-
er formats. Behaving as if soft data are precise leads to huge and costly syn-
chronization problems.
Planning and execution data are very different. For example, plans show
that an order for 50 pieces of a component is to be released on week 26, six
weeks hence, and is due to be completed by week 30. The actual dates the
order is released and due probably will be earlier or later, and even the quanti-
ty can be changed. Planning data, called soft data, look precise but often are
changed.
If a decision has been made to start an order for one of this component’s
parents in week 23, this is a firm need date for the component. If work has
started on 24 pieces, this too is firm. Execution data need to be precise; they are
hard data.