Page 457 - Orlicky's Material Requirements Planning

C HAP TE R 26

Demand-Driven Planning

The volume of material requirements planning (MRP) reschedule messages can seem
impossible to work before more changes occur and the process begins again. Frequently,
critical actions are missed or incomplete pictures are painted. Most purchasing, materi-
als, and fulfillment organizations have limited capacity and trust when it comes to sort-
ing through the current demand signals and planned orders generated by MRP. A signif-
icant understanding of MRP logic is required to even begin to understand the implica-
tions of a reschedule message. At times, it is easier to just leave it alone rather than risk
really disrupting the operation. However, ignoring some of these messages will generate
the need for expensive corrective actions at a later time (e.g., expedites, premium freight,
overtime, etc.). Clearly, all action messages are not created equal.
Generating, coordinating, and prioritizing actionable material signals becomes
much simpler when the environment is modeled in a demand-driven way. The current
inventory status is evaluated for potential negative impacts. Flags are set for alert that
meet specific spike criteria against open supply orders and demand allocations that
include future sales orders. Planners then have the ability to see quickly where the sig-
nals are really coming from and react appropriately before they get into trouble. This bet-
ter matches the current intuition of the planners, and now they have real visibility to
establish correct and comprehensive priorities.

PART PLANNING DESIGNATIONS
There are five different part planning designations in demand-driven MRP (DDMRP). All
these designations still will have actively synchronized replenishment lead time (ASRLT)
applied to them if appropriate. The five designations focus attention on the parts that are
the most critical or strategic and bring designation-specific tools to bear when appropri-
ate. These designations are:

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