Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Takt Times
An ERP Mystery
Schedule of events, 4
An ERP mystery, 1
In this issue
Technical bulletin
The 3C alternative to
MRP-II
By Jim Ayers
This article is an excerpt from
Jim Ayers forthcoming book,
Handbook of Supply Chain
Management to be published by
St. Lucie Press. It includes a
review of the 3C alternative
for managing inventory in supply
chains.
Three managers from Lucent Technologies in Spain M. Fernndez-Raada,
X. Gurrola-Gal, and Enrique Lpez-Tello
have devised and road tested a
simplified tool for optimizing supply
chain performance, which they called
3C and describe as an alternative to
MRP-II in a book they published, also
with St. Lucie Press this year.
3C stands for Capacity, Commonality,
and Consumption. The method is an
alternative to the reliance on forecasts
inherent in the MRP methodology, which
they view as a flawed approach.
(Continued on page 2)
(Continued on page 2)
(Continued on page 2)
The 3C alternative to
MRP-II
(Continued from Page 1)
Product
Part A
Part B
Part C
Part D
Capacity
Y
1
2
1
10
Inventory
Target
Z
1
1
20
1
1
3
20
20
30
20
10
An ERP Mystery
(Continued from Page 1)
sales for it, but catches up the following
morning.
As we can see in Table 1, as we go up the
chain in the following columns, this
small perturbation in sales is amplified at
each link by the planning logic, resulting
in the plant ordering 36 units one period
and 305 the next. When we get to the
supplier, the fluctuations are so wild that
it ends up not ordering at all in period 5
and creating a shortage in period 6.
While this example is contrived, the above
discussion between buyer and supplier
actually occurred. And it is not an isolated
incident. The phenomenon of perturbations being amplified up the supply chain
S uppl C ha i Li
y
n nk
Cust omer
Dist . cent er
P eri
od
1
2
3
2
3
4
S ta rti i
ng nventory 3 0 0 3 0 0 29 7 3 0 0 3 0 0 28 8
S al
es 10 0
99
10 1 10 0
9 6 10 7
E nd i i
ng nventory 20 0 20 1 19 6 20 0 20 4
18 1
Ta rget i
nventory 3 0 0 29 7 3 0 3 3 0 0 28 8 3 21
Q ua nti ord ered 10 0 9 6 10 7 10 0 8 4 14 0
ty
Pla nt
S upplier
3
4
5
4
5
6
3 0 0 3 0 0 25 2 3 0 0 3 0 0 26 4
10 0
8 4 14 0 10 0
3 6 26 4
20 0 216
112 20 0 26 4
0
3 0 0 25 2 4 20 3 0 0 10 8 79 2
10 0 3 6 3 0 8 10 0
0 79 2
One units
worth of
matching
components
at every
operation of
every feeder
line
One unit of
product moving
to the next
operation with
every beat of the
takt time
Takt Times
Newsletter/technical bulletin from MMTI, the
Manufacturing Management and Technology Institute
396 Shasta Drive, Palo Alto, CA 94306-4541
Tel: (650)856-8928 FAX:(650)858-1873
Michel Baudin . . . . . . . . . . . . . . . . . . . . . . . . . Member
Crispin Vincenti-Brown . . . . . . . . . . . . . . . . . . Member
Hormoz Mogarei . . . . . . . . . . . . . . . . . . . . . . . Member
Jim Patell . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Member
http://www.mmt-inst.com
http://www.mmt-inst.com
Copyright 1999