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Orlicky's Material Requirements Planning 3/E [Hardcover]

by Carol Ptak, Chad Smith
5.0 out of 5 stars  See all reviews (28 customer reviews)

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Book Description

May 11, 2011 0071755632 978-0071755634 3

"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.

Coverage includes:

  • 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
  • Remanufacturing
  • 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.


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Editorial Reviews

About the Author

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).


Product Details

  • Hardcover: 546 pages
  • Publisher: McGraw-Hill Professional; 3 edition (May 11, 2011)
  • Language: English
  • ISBN-10: 0071755632
  • ISBN-13: 978-0071755634
  • Product Dimensions: 9.4 x 7.5 x 1.4 inches
  • Shipping Weight: 2.3 pounds (View shipping rates and policies)
  • Average Customer Review: 5.0 out of 5 stars  See all reviews (28 customer reviews)
  • Amazon Best Sellers Rank: #54,867 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews
21 of 21 people found the following review helpful
Format:Hardcover
This new edition very lucidly replaces inventory from the driver seat with customer demand. This ground breaking approach - that combines best practices of Theory of Constraints and Lean - answers questions that most Planning personnel have, regardless of size and industry and what type of MRP they are currently using. And the best part is that the concepts (along with matching technology tools) outlined in this book have been implemented across industries with astonishing results. DDMRP approach covers the whole gamut of supply chain - purchase parts, all through the bill of materials to finished goods and finally to distribution. The bottom line results are counter intuitive - higher service levels, while inventories go down! That is something no executive would like to leave it on the table. Hence a must read for executives in Sales, Operations and Financial disciplines.
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20 of 20 people found the following review helpful
Format:Hardcover
The heart of any supply chain is manufacturing and this book provides a major advance in strategies and tactics for managing the flow of materials through a manufacturing company. In spite of the market buzz in recent years about the importance of Supply Chain performance little has been done to address the shortcomings of traditional material requirements planning (MRP) tactics and technology.

Chad Smith and Carol Ptak have addressed the shortcomings in MRP in their book. They have brought forward the key insights that will allow companies to achieve substantial improvements in order fill rates, compress order lead times while concurrently reducing their inventories and working capital. They have described in very clear terms the core challenges that exist today and the changes that must be implemented to achieve substantial and sustainable performance improvements. It should be noted that they have worked with a wide range of companies who've applied their tactics and achieved incredible results.

This book will be a key tool for material planners, procurement leaders, plant managers and senior manufacturing executives alike.

I highly recommend this book.
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21 of 22 people found the following review helpful
5.0 out of 5 stars Fresh thinking on MRP May 29, 2011
Format:Hardcover
Orlicky's MRP has been an authoritative source of information about Material Requirements Planning for decades. I remember how the first edition, with its distinctive orange cover, changed manufacturing and inventory control by showing how computers could automate calculations and record keeping that were previously impractical. Nearly two decades later, Plossl's second edition incorporated innovations such as Just-in-Time Manufacturing and Total Quality Management.

In the decades since the second edition, however, profound changes have occurred in the fields of manufacturing and inventory control, and in the information technology that supports them. Global supply chains and global markets today require different management practices from those that used to prevail. Lean Manufacturing and Six Sigma are no longer novelties. And IT today can do things that Orlicky and Plossl could not have envisioned.

In the third edition, Carol Ptak and Chad Smith show how recent insights are once again altering how MRP is implemented and used. For instance, driving parts requirements completely through the bill of materials is now known to be unnecessary, and sometimes counter-productive, because it contributes to excess inventory in some areas while simultaneously creating shortages elsewhere. The solution, demand driven planning, is covered in this edition, as well as synchronized replenishment, project manufacturing, process manufacturing, remanufacturing, and more.

I was able to review the third edition before it was published, so I know that it introduces a considerable amount of new material. For anyone wanting to know where cutting edge thinking is on MRP nowadays, this is it.
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15 of 15 people found the following review helpful
Format:Hardcover
Very few manufacturing or supply chain executives, practitioners or IT specialists realize that under the hood of the leading-edge, (multi) million dollar ERP systems in use in their factories or their supply chain there's a chunk of logic created more than 50 years ago that is NOT aging well, and that largely condemns many of them to a life sentence of trying to fix their broken planning systems without knowing even where to start.

This new edition of Orlicky's classic book is the first text I'm aware of that highlights the problem with absolute clarity (and some very blunt talk), explains exactly how the problem emerged, explains exactly the nature and scale of the multiple performance issues that companies are experiencing as a result (and which type of companies suffer the most), then offers a roadmap - 150 detailed pages that are worth many times the price of the book, by themselves - of exactly what has to be changed, and what it needs to be changed to, in order to fix the systems and make the problems shrink or even disappear.

More, as proof of concept, the authors can name those companies that have indeed applied the fix, and achieved superb results that their executives are proud to describe and to explain in public, in conferences and in videos. Substantial inventory reduction, with extremely high order fill rates and customer service levels, with reduced operating expenses. The holy trinity of the manufacturing and supply chain world, implemented repeatedly in real, often complex, manufacturing environments.
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Most Recent Customer Reviews
5.0 out of 5 stars reason + how to = action !
I am gratuated from Industrial Engineering in 1991. I am a product of old thinking school, ie aware of MRP I and heard about MRP II, that is all. Read more
Published 18 days ago by Utkan Uluçay
5.0 out of 5 stars Changing your perspective
For the last 15 years people have been trying to solve the forecasting and planning dilemma by using creative implementations of advanced planning and optimization systems (APS). Read more
Published 2 months ago by Ryan Rhoades
5.0 out of 5 stars The Quantum Leap in Materials Management
Carol and Chad, in the 3rd edition of Orlicky's well know text on material planning, are providing us with the Quantum Leap we have been looking for in providing us with tools to... Read more
Published 2 months ago by KenT
5.0 out of 5 stars It isn't light reading, but it is authoritative.
While a great approach to solving problems, esp in manufacturing, TOC (Theory of Constraints) lacks a well-documented base of experience. Read more
Published 7 months ago by Steve R
4.0 out of 5 stars Great book
It is up to date. It incorporates both supply chain points of view; it allows practitioners to walk both side of the MRP programming logic, finite and limitless planning
Published 8 months ago by William H. Délano
5.0 out of 5 stars A must read for all SCM professionals
This is the most comprehensive book on the topic of MRP, since Joseph Orlicky's Material Requirements Planning (MRP) book that has been an authoritative source of information about... Read more
Published 15 months ago by Chaim
5.0 out of 5 stars A must have, must read, must study for anyone interested in supply...
For sure, the book opens a door to the future of operations and supply chain management. As usual, these advancements seem obvious and common sense once you read them. Read more
Published 15 months ago by David Poveda
5.0 out of 5 stars FANTASTIC
A great in depth understanding of MRP by Orlicky. A great read to get a full insight on the overall and I depth understanding of the process. An excellent great value buy.
Published 17 months ago by Jason Puszkar
5.0 out of 5 stars Just because you build it, does not mean they will come...
In a world where the consumer has the power to name their design, their price and their delivery it is more important than ever for manufacturing to understand what to build, and... Read more
Published on October 20, 2011 by Lindsey Fountain
5.0 out of 5 stars Great Book!
Great Book, I really enjoyed it. I have read the new chapters/content multiple times. It is well written and easy to follow, not so dry like some of it's counterparts. Read more
Published on October 17, 2011 by Todd Colyer
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