What Went Wrong? - The Rise of the Computer
5 important questions on What Went Wrong? - The Rise of the Computer
According to Kanet and many others, what is fundamentally wrong with MRP?
It is based on a flawed model.
Why is a fixed-lead-time assumption, at best, only an approximation of reality? In other words: why are lead times not fixed in reality?
Lead times are dependent on the loading of a plant.
The higher the loading, the higher the congestion and flow times through the plant. So the higher the loading, the higher the lead times.
This means a plant can only have fixed lead-times when capacity is infinite, which is impossible.
Why is highly flexible labor better suited to MRP than fixed labor, in a production plant?
Flexible labor allows for capacity to be adjusted over a wider range than fixed labor. This means that plant ''loading'' and capacity can be kept more stable (i.e. by calling in extra workers at busy times (high loading)). The more stable a production environment, the better an MRP system works.
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For the success of an MRP system, when doesn't it matter whether a production plant has highly flexible labor or fixed labor?
When labor has very little impact on capacity. For example in highly automated or robotized plants.
For which company would an MRP system probably work best? Why?
A: a company that produces furniture
B: a company that produces umbrellas
A: a company that produces furniture.
The demand for furniture is most probably pretty stable all year round.
The demand for umbrellas however, is probably biggest in autumn and smallest in summer. Since MRP systems tend to work better with stable demand, it should work best in case A.
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