New Thoughts to the Supply Chain thru MRP

Chad Smith of the Constraints Management Group was the guest on the Business901 Podcast. Chad is currently writing the third revised edition of Orlickys Materials Requirements Planning with Carol Ptak (a former B901 Podcast Guest).

Excerpt from the podcast:

Joe: My customers are not only looking for shortened cycles but they’re also looking for more customization. We need customization and shorter supply chain cycles. That is reality today. Am I wrong?

Chad: No, you are exactly right. That is why I caution people that are in the Lean community or in the TOC community to understand that the solution is not inward facing. It is outward facing. It is the interface or the integration between linkages in the supply chain and that commonly occurs from the manufacture to distributor or manufacture to customer and then manufacture back to all its suppliers.

And let’s face it. Let’s be real here. Global capacity is exceeding global demand right now. So looking for better scheduling techniques inside of four walls, instead of looking for better synchronization techniques across a supply chain or a product structure. In my opinion, is the wrong way to go.

There is a prerequisite order here to getting better. The prerequisite order is…listen to the podcast

Chad Smith is the co-founder and Managing Partner of Constraints Management Group (CMG), a services and technology company specializing in pull-based manufacturing, materials and project management systems for mid-range and large manufacturers. Chad has a wide range of experience in successfully applying pull-based systems within a diverse scope of organizations and industries.

Since the late 1990’s Chad and his partners at CMG have been at the forefront of developing and articulating the concepts behind Actively Synchronized Replenishment as well as building ASR compliant technology (Replenishment+®). Additionally, Chad is an internationally recognized expert in the application and development of the Theory of Constraints (TOC).

This is a podcast that you do not want to miss!