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21 of 21 people found the following review helpful
5.0 out of 5 stars DDMRP - The right driver at the controls - Customer Demand, June 9, 2011
This review is from: Orlicky's Material Requirements Planning 3/E (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
5.0 out of 5 stars Groundbreaking insights for manufacturing and supply chain, June 3, 2011
This review is from: Orlicky's Material Requirements Planning 3/E (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
By 
John Ricketts (Clarendon Hills, IL United States) - See all my reviews
This review is from: Orlicky's Material Requirements Planning 3/E (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
5.0 out of 5 stars Why our Planning systems are broken, and the practical fix - in detail, June 3, 2011
This review is from: Orlicky's Material Requirements Planning 3/E (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.

In effect, this book pulls MRP into the 21st century, and explains how the MRP logic is both more necessary than ever in many environments - basically, as a requirements calculator to perform the heavy lifting in complex environments subject to constantly changing realities - as well as how it's become more damaging than ever, because of the impact of the volatility and the variability that have increased so comprehensively in recent years.

The book also explains - with a great deal of support - exactly how Lean thinking, as it's been applied in the West, has often made the problem even worse. And why the calls to turn-off the MRP systems in many companies going through the Lean transformation could be the worst path those companies could take - especially when there's a much faster, much more powerful solution that reconciles - without compromise - the "Pull" demands from the Lean advocates with the MRP justifications of the material planners and purchasers. Both "sides" are proven right, and both sides can have their crucial needs met.

Perhaps best of all, in the current climate of "movements" and "tribes," the solution proposed in this book doesn't have to, or try to, take sides. It's simply pragmatic. Those aspects of MRP logic that still provide value are at the core; but elements of Distribution Requirements Planning (DRP) are reflected also, while Theory of Constraints concepts are used as the basis for protecting against volatility, and Lean concepts are reflected in terms of the shape of the performance improvements - low inventory, high velocity, high visibility, reduced costs, and great customer service.

On my web site, in a survey of manufacturing managers and practitioners taken over several months, more than 60% of respondents said inventory performance issues had been a problem for years; 50% said service levels had been unsatisfactory for years; 57% said expediting expenses had been a problem for years; and most telling of all, 56% said these problems had survived multiple implementations of manufacturing systems. In fact, 59% said there were too many "workarounds" that employees have devised precisely because they couldn't perform their work effectively within those formal planning systems. And the list of systems they are using is a who's who of the modern ERP world.

These are precisely the core performance problems addressed head-on within this book; and exactly why the book is a must-read.
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13 of 13 people found the following review helpful
5.0 out of 5 stars This should be the blueprint for future software development, June 29, 2011
By 
David Luckner (Fairfield, CT USA) - See all my reviews
This review is from: Orlicky's Material Requirements Planning 3/E (Hardcover)
This book is very unique. It covers the past, the present and the future of MRP. The authors' ability to clearly explain and detail the why and where traditional planning tactics are breaking down is vital for readers to understand the magnitude of the problem and the need for dramatic change. The blueprint for the future of MRP (Demand Driven MRP) that is laid out in this book is truly remarkable; even revolutionary. My comments come from the perspective of a senior ERP sales professional that has sold multiple ERP product lines for many years. I was often first inline to see the customer dissatisfaction and inappropriateness of what was being offered as a solution. What is presented here is a necessary and fresh break from the past that ERP/MRP/DRP software providers should pay attention to and software users should demand. This is a must read for anyone in supply chain, formal planning, operations and continuous improvement.
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13 of 13 people found the following review helpful
5.0 out of 5 stars Welcome DDMRP!!! A new way of thinking, June 26, 2011
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This review is from: Orlicky's Material Requirements Planning 3/E (Hardcover)
Well done! This book is going to bring alignment to the Operational Excellence (LSS) Team and Supply Chain with its understanding of what MRP is suppose to do and what it is capable of doing, BUT realizes change was needed from the traditional way of MRP thinking to adapt to a more dynamic business environment.

My schooling and career has exposed me to MRP but wouldn't call myself a true supporter of it, I find myself very often getting push back on trying to eliminate the need to forecast and let it be the driving force behind our business decisions, such as scheduling and inventory control. I have more of a Lean Six Sigma background, and have been waiting for something like this to come along for a long time! Welcome DDMRP!!!

Chad and Carol do an excellence job of explaining how MRP came to be what it is today and why the change is needed with great explanation and examples.

I would recommend this book to anyone from Supply Chain, Finance, and Operation functions as well as a Lean/TOC function to help seek to understand how there is a win/win for the entire enterprise.
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13 of 13 people found the following review helpful
5.0 out of 5 stars Applause from one of the original MRPers, June 25, 2011
By 
Bob L. Reary (Phoenix, AZ USA) - See all my reviews
(REAL NAME)   
This review is from: Orlicky's Material Requirements Planning 3/E (Hardcover)
For those of us who participated in the MRP revolution in the early days, Orlicky's book was essential reading. Dick Ling and John Sari had me read it in 1975 while Dick was inventing Master Production Scheduling. I think no other book in my entire career provided for me and my peers as good a framework for helping manufacturing companies improve their operations and return more value, and for giving us productive and extremely useful work.

Over the years many things changed in manufacturing thinking, and conflicts arose. For instance: should planning be king (advanced planning), or execution (JIT/Lean)? Orlicky even in the early days had helped us to at least establish a formal process for synchronizing planning and execution, something that had never been done before.

But now, Carol and Chad have, with the Third Edition, put us in a new vantage point--one where all the conflicts can finally be resolved because these two great thinkers are masters at getting to the science behind the concepts. They show us how modern MRP practitioners can apply powerful and pragmatic solutions and some brilliant new directions, undertaken without the tired compromises we have dealt with for 2 decades or more. That is what the new Orlicky book does. It takes us to new ground. It shows us how to turn our uncertain world of markets and logistics and processes into a stronger tool, and not just an obstacle to be overcome.

Carol and Chad: as one of the original MRPers, I applaud you and thank you for your work, and for advancing, with this book, our science more than any other has done in many years.
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13 of 13 people found the following review helpful
5.0 out of 5 stars The future of American manufacturing, June 22, 2011
By 
This review is from: Orlicky's Material Requirements Planning 3/E (Hardcover)
Carol and Chad have done a masterful job in updating this manufacturing classic. Manufacturing professionals would be well served to study this book, understand the implications not only to manufacturing efficiency but more importantly to our ability to complete as an industrial nation on the global stage. In addition to revising key parts of the manufacturing process to improve efficiency, the book addresses how technology evolution plays a key role in focusing on what matters most; delivering quality products on time at the highest possible margin.

This comprehensive text will, in my opinion, become THE new standard for anyone who wants to get ahead in manufacturing.
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13 of 13 people found the following review helpful
5.0 out of 5 stars DDMRP is the next step for supply chain synchronization, June 20, 2011
This review is from: Orlicky's Material Requirements Planning 3/E (Hardcover)
This book lays out the next revolution of MRP (Material Requirements Planning) and what's necessary for supply chain synchronization in our fast moving volatile global economy. The authors, Chad and Carol do an excellent job of outlining the strategies and tactics that will be needed to successfully manage inventories; from your suppliers, through manufacturing, out to distribution.

The book provides a solid review of MRP and not only discusses what needs to change, but also provides some of the challenges you may experience while making the change. The case studies provided clearly show the dramatic results that can be obtained improving order fill rates and shortening lead times in the supply chain, while at the same time reducing total inventories. This is generally unheard of, and considered not possible by most executives.

Anyone involved in the strategic development and/or the day-to-day tactical execution of your supply chain -- buyers/purchasers, planners, production managers, senior managers-- should read this book.
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10 of 10 people found the following review helpful
5.0 out of 5 stars A New Paradigm, July 21, 2011
This review is from: Orlicky's Material Requirements Planning 3/E (Hardcover)
This book is truly exceptional. Early chapters cover the history of MRP, the great benefits it brought to manufacturing in the past and the continuing need for its capabilities today. There is also in-depth discussion of its shortcomings in current practice. The examples of records structures, system logic, inventory management and order action methods are complete and described in a particularly lucid writing style. There are numerous examples of difficult exception situations that arise. The narrative is brilliant and integrates with excellent graphic figures that are easy to follow throughout.

In later chapters the book proceeds to new generation methods that solve many of the existing problems in manufacturing and supply chains. Both historical issues and the emerging global requirement for agility are addressed convincingly. A new Demand Driven Material Requirements Planning (DDMRP) approach is presented emphasizing pull production, strategic inventory positioning, and insightful use of buffers with "decoupled explosions" to shorten lead times, With this there is also a dampening of the nervousness and bull whip effect found in traditional systems. All in all the presentation of new methods is crisp and reflects both deep insight and thorough homework by authors Carol Ptak and Chad Smith.

This book has much to call the serious student to its pages. It is for the business professional, the academic and an excellent choice as a text in operations management. It is in short the best book in this subject area that I have ever seen.
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Orlicky's Material Requirements Planning 3/E
Orlicky's Material Requirements Planning 3/E by Carol A. Ptak (Hardcover - May 11, 2011)
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