Page 497 - Orlicky's Material Requirements Planning

474 PART 4 Looking Backward and Forward

■ The buyer can attempt to expedite supply to synchronize with the release date of
the parent order.
■ The planner can push the release date of the parent order back in time to synchro-
nize with the incoming supply’s promise date. Attempts then could be made to
expedite the MO in an attempt to meet its promise date. Sales or customer service
may need to be alerted because this order is going directly to a customer.
Whatever the resolution, the good news is that the problem is known well in
advance of it actually occurring. In fact, MSAs should be triggered instantly or in “what
if” mode when promise dates change or are proposed to change.

Lead-Time Alerts

Figure 27-26 is a graphic depiction of the lead-time-managed (LTM) alert concept. A time-
line from late January to early June is at the top. The lead time of each part/order is dis-
played as a horizontal bar. The size of the bar is in proportion to the length of the lead
time. The last third of the bar is stratified by equal zones of green, yellow, and red. The
end of the bar is set to the promise date on the timeline. If the current date is 5/02, then
only one part (PPD) will generate a lead-time alert. On 5/02, Part PPD’s current lead-time
alert status is yellow.
Lead-time alerts are used to prompt personnel to check up on the status of critical
non-stocked parts before those parts become an issue. Lead-time-managed (LTM) items
are tracked, and at a defined point in the part’s lead time, personnel are prompted for fol-
low-up. Typically, this point is two-thirds of the way through the lead time of the part, as

FIGURE 27-26
Lead-time alerts concept.

Current Date: 5/2

February 1st March 1st April 1st May 1st June 1st

PPD G Y R

PPI

PPJ

PPF