The Main Reason So Many Companies Struggle with Scheduling
Do you know why so many companies are failing to find planning and scheduling solutions that actually work? It comes down to one flawed assumption. Their current solutions treat production lead times as a fixed variable.
The truth, as I’ve seen across countless global manufacturers this year, is that lead times are anything but consistent. They are chaotic variables impacted by a multitude of risks—large demand spikes, supplier disruptions, machine breakdowns, and unexpected resource constraints. If the stability of your schedule relies on dates calculated using a lead time, you are doomed to fail.
This is why I am such a big fan of the Demand-Driven Operating Model (DDOM). By using lean principles to create a pull system and incorporating Control Point Scheduling inspired by the Theory of Constraints (TOC) to manage bottlenecks, a DDOM focuses on what is essential, not what is late.
This process enables planners and schedulers to build stable, reliable plans that don’t constantly change. It’s a proven way to navigate the chaos and create schedules that can handle the unpredictable nature of modern manufacturing.
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4 个月The lack of a closed-loop between Demand and Supply Planning is a persistent challenge that can significantly impact an organization's overall performance. As you mentioned, the assumption of fixed lead times in MRP systems can be particularly problematic, especially in today's volatile and uncertain environments. It's time to reevaluate our reliance on these traditional planning methods and embrace more agile approaches.
Logistics Systems Engineering at Orizen
4 个月Thanks Kevin. Quick question. Regarding resource planning, what have you found the average utilisation % that is being used these days?
Go back to Basics. It clearly identified problem. MRP/ MRPII/ ERP' MRP runs doesn't have CustomerOrder v/s forecast order distinction at all levels of BOM of Manufactured item. Prioritisation of Material allocation & Capacity allocation cannot be done with these MRP programs since there is no( Customer order priority) overrides over dates. Depending on Material or Capacity intensive Discrete mfg operation, put hard pegging of either using override solution & pushback dates to look schedule realistic
Striving to make supply chains flow
4 个月Lead times are variable because of variability. What you’re doing with your post is like saying ?my dinner doesn’t taste good because there are bad cooks“. Duh! Don’t use bad cooks to make better food. And don’t use fixed lead times if you want to have more scheduling attainment. And please don’t make it sound like DDMRP is the solution for all just because it doesn’t use fixed lead times.
Demand Driven Thought Leader
4 个月This assumption of fixed lead times is a basic pillar of MRP and its assumption of full allocation for every parent order release. In the first book on MRP even Orlicky recognized the challenge with the assumption of full allocation but like many after him he assumed the computational power and precision would negate the challenge in the future. NOPE! This was the whole point of the book Precisely Wrong (amazon.com/Precisely-Wrong-Conventional-Planning-Systems/dp/0831136189)