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Orlicky's Material Requirements Planning, Third Edition 3rd Edition

35 customer reviews
ISBN-13: 978-0071755634
ISBN-10: 0071755632
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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:, 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).


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Product Details

  • Hardcover: 544 pages
  • Publisher: McGraw-Hill Education; 3 edition (June 1, 2011)
  • Language: English
  • ISBN-10: 0071755632
  • ISBN-13: 978-0071755634
  • Product Dimensions: 7.7 x 1.4 x 9.8 inches
  • Shipping Weight: 2.3 pounds (View shipping rates and policies)
  • Average Customer Review: 4.8 out of 5 stars  See all reviews (35 customer reviews)
  • Amazon Best Sellers Rank: #136,279 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

22 of 22 people found the following review helpful By ToCPaddy on June 9, 2011
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 By Erik Bush on June 3, 2011
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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22 of 23 people found the following review helpful By John Ricketts on 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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17 of 17 people found the following review helpful By Steve Jackson on June 3, 2011
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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