Page 482 - Orlicky's Material Requirements Planning

CHAPTER 27 Highly Visible and Collaborative Execution 459

FIGURE 27-1
Order # Due Date Customer
Example of
orders prioritized PO 280-89 05/12 Super Tech
by date.
PO 279-84 05/12 Super Tech
PO 276-54 05/12 Super Tech

PO 281-21 05/14 Super Tech
PO 275-44 05/16 Super Tech

FIGURE 27-2
Order # OH Buffer Status Due Date Customer
Example of PO 275-44 3% (RED) 5/16 Super Tech
orders prioritized PO 281-21 17% (RED) 5/14 Super Tech
by buffer status.
PO 276-54 27% (RED) 5/12 Super Tech
PO 280-89 47% (YELLOW) 5/12 Super Tech
PO 279-84 54% (YELLOW) 5/12 Super Tech

The priority-by-due-date problem does not just affect the traditional customer-sup-
plier relationship; it has huge implications within a manufacturer as well. When building
orders to stock, there are different priorities for different orders. The shop floor usually
has visibility between stock orders and orders that go directly to customers.
Figure 27-3 illustrates two examples of what a manufacturing floor might see rela-
tive to manufacturing orders. In this case, we have included at least one order that is
going directly to a customer (MO number 12379). The upper chart depicts what it might
look like if the MRP system gave discrete due dates for stock orders. The lower chart is
what it might look like if the MRP system simply coded stock orders, “Due NOW.” Most
planning personnel would agree that the lower chart is more problematic for determin-

FIGURE 27-3
Order # Order Type Due Date Customer
Manufacturing MO 12367 Stock 5/12 Internal
orders prioritized MO 12379 MTO 5/12 SuperTech
by date. MO 12465 Stock 5/12 Internal
MO 12401 Stock 5/14 Internal
MO 12411 Stock 5/16 Internal

Order # Order Type Due Date Customer
MO 12367 Stock Due Now Internal
MO 12379 MTO 5/12 Internal
MO 12465 Stock Due Now Super Tech
MO 12401 Stock Due Now Internal
MO 12411 Stock Due Now Internal