2019

PRECISELY WRONG - Why Conventional Planning Fails and How to Fix it

Great success of seminar and IDW on Demand Driven MRP with Carol Ptak, Partner of Demand Driven Institute.

+100 Supply Chain professionals attended the seminar and IDW organized by our school.

Contact us to receive the seminar presentation. Anne Simone Pfister -  Email: a.pfister@advanceschool.ch

SEMINAR PROGRAM

Planners and buyers that interact with MRP every day know that something is very wrong.  They may not be able to explain exactly why but they know that if they did exactly what MRP told them to do it would have disastrous consequences for their company and for their career.  So, constant, costly and error prone workarounds and adjustments are made.  Have we all been fooled?  Was the promise of MRP only a mirage? 

What if there was one fatal flaw in MRP that makes it completely incapable of conveying relevant information?  What if correcting this one fatal flaw allowed the promise of MRP to be attained?

At the heart of most supply chains lies a planning tool called Material Requirements Planning (MRP).  Invented in the 1950s, codified in the 1960s and commercialized in the 1970s MRP became THE way of life for supply order generation and synchronization.  What used to take teams of people weeks to plan could be done overnight with incredible precision.  As products and supply chains became more complex this precise synchronization capability seemed more valuable than ever and the potential seemed limitless. But has all this technology really provided improved results?

Part 1: The MRP Revolution

• How MRP Works
• The New Normal
• Evidence of a Problem

Part 2: Determining What is Relevant for Planning

• The Need for Flow

Part 3: MRP and the Bullwhip Effect

• Distortions to Relevant Information
• Distortions to Relevant Materials
• Batching Complications
• The Core Problem of the Bullwhip Effect

Part 4: The Power of Decoupling

• Using Decoupling Points
• Decoupling Point Criteria for Long-Term Success Demand Driven MRP