Orlicky's Material Requirements Planning 3/E
"The definitive reference for the next generation of manufacturing practitioners and leaders." -- From the Foreword by Dave Turbide, CFPIM, CMfgE, CIRM, CSCP
"Finally, MRP has been brought into our new age where, in order to fight for increased share and profitability, manufacturers must not only cope with market volatility and supply chain variability, they must embrace it as a competitive weapon." -- Bob Reary, Fellow-level Certificate, APICS
A fully revised and updated edition of the landmark work on material requirements planning (MRP), Orlicky's Material Requirements Planning, Third Edition focuses on the new rules required to effectively support a manufacturing operation using MRP systems in the twenty-first century. This authoritative resource offers proven solutions that help you gain the competitive edge through strategic lead time reductions, substantial reductions in total inventory investment, and significant increases in service levels. This is an indispensable tool for manufacturing practitioners and anyone preparing for CPIM certification.
- Inventory in a manufacturing environment
- Principles of MRP
- MRP system
- Processing logic
- Lot sizing
- System records and files
- Product definition
- Master production schedule
- Inventory planning and control system
- System effectiveness
- Industry effect on MRP
- Project manufacturing
- Process industry application
- Repetitive manufacturing application
- Sales and operations planning
- Evolution of MRP and planning systems
- Demand driven MRP (DDMRP) logic
- Strategic inventory positioning
- Dynamic buffers
- Demand driven planning
- Highly visible and collaborative execution
- DDMRP performance reporting and analytics
- DDMRP future
Building on the pioneering work of Joseph Orlicky, this new edition of the classic text on material requirements planning (MRP) reveals the next evolutionary step for materials and supply chain synchronization in the modern manufacturing landscape.
Orlicky's Material Requirements Planning, Third Edition reviews the poor business results embedded in many of today's manufacturing systems, discusses the core problems causing these results, explains an alternative pull structure for planning and controlling materials flow, and presents results from actual implementations.
This thoroughly updated edition offers comprehensive coverage of MRP, describes the current state of the MRP application, and identifies the fundamental changes required to achieve sustainable success given the current global circumstances and technology options. This state-of-the art guide articulates the next generation of MRP logic--demand driven MRP (DDMRP)--and provides a roadmap for the near and distant future for this critical manufacturing management tool.
Carol Ptak is currently a partner with the Demand Driven Institute, and was most recently at Pacific Lutheran University as Visiting Professor and Distinguished Executive in Residence. Previously, she was vice president and global industry executive for manufacturing and distribution industries at PeopleSoft where she developed the concept of demand driven manufacturing (DDM). Ms. Ptak spent four years at IBM Corporation culminating in the position of global SMB segment executive.
Chad Smith is cofounder and managing partner of Constraints Management Group, a services and technology company specializing in pull-based manufacturing, materials, and project management systems for mid-range and large manufacturers. He has been at the forefront of developing and articulating demand driven MRP and is also an internationally recognized expert on the theory of constraints (TOC).
Carol and Chad founded the Demand Driven Institute, an organization devoted to the proliferation and further development of demand driven strategies and tactics in industry.
Table of contents
Foreword by David Turbide
Part 1: Perspective
Chapter 1. Overview
Chapter 2. MRP in the Modern World
Chapter 3. The Four Critical Questions Answered
Part 2: Concepts
Chapter 4. Inventory in a Manufacturing Environment
Chapter 5. Principles of Materials Requirements Planning
Chapter 6. The Material Requirements Planning System
Chapter 7. Processing Logic
Chapter 8. Lot Sizing
Chapter 9. System Records and Files
Part 3: Managing with the MRP System
Chapter 10. A New Way of Looking at Things
Chapter 11. Product Definition
Chapter 12. Master Production Schedule
Chapter 13. More Than an Inventory Control System
Chapter 14. System Effectiveness: A Function of Design and Use
Chapter 15. Industry Effect on MRP
Chapter 16. Project Manufacturing
Chapter 17. Remanufacturing
Chapter 18. Process Industry Application
Chapter 19. Repetitive Manufacturing Application
Chapter 20. Sales and Operations Planning
Part 4: Looking Backward and Forward
Chapter 21. Historical Context
Chapter 22. Blueprint for the Future: Demand-Driven MRP Logic
Chapter 23. Strategic Inventory Positioning
Chapter 24. Buffer Profiles and Level Determination
Chapter 25. Dynamic Buffers
Chapter 26. Demand-Driven Planning
Chapter 27. Highly Visible and Collaborative Execution
Chapter 28. Demand-Driven Material Requirements Planning (DDMRP)
Chapter 29. DDMRP Future
Appendix A. Joseph Orlicky's Contributions to Material Requirements Planning
Appendix B. Definitions: APICS Terms and Their Place in DDMRP
Appendix C. New Terms in Demand-Driven Material Requirements Planning
Appendix D. To My Best Recollection: The Eras of Material Requirements Planning (MRP) with Packaged Software
Carol Ptak is currently freelancing and was most recently at Pacific Lutheran University as Visiting Professor and Distinguished Executive in Residence after years of executive management experience at PeopleSoft and IBM Corporation as well as many years of consulting expertise. Previously, Ptak served as the vice president and global industry executive for manufacturing and distribution industries at PeopleSoft. Here she developed the concept of Demand Driven Manufacturing (DDM) as an overall product and marketing strategy to align product development, market awareness and demand generation. Her innovative approach is credited with significantly improving the company’s position in the manufacturing industry software market and earned her national recognition in publications such as CFO Magazine and the New York Times. Prior to her accomplished record at PeopleSoft, Ptak spent four years at IBM Corporation starting as a member of the worldwide ERP/SCM solutions sales team and quickly rising to the position of global SMB segment executive. From 1993-98, Ptak owned Eagle Enterprises, a consulting firm that promotes company-wide excellence through education and successful implementation.
Chad Smith is the co-founder and Managing Partner of Constraints Management Group (CMG: www.thoughtwarepeople.com), a services and technology company specializing in pull-based manufacturing, materials, and project management systems for mid-range and large manufacturers. Clients include LeTourneau Technologies, Boeing, Intel, Erickson Air-Crane, Siemens, IBM, The Charles Machine Works (Ditch Witch), and Oregon Freeze Dry. Chad and his partners have been at the forefront of developing and articulating Demand Driven MRP. Chad is also an internationally recognized expert in the Theory of Constraints (TOC).