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E-grāmata: 3c: A Proven Alternative to MRPII for Optimizing Supply Chain Performance

(Consultant, Madrid, Spain), (Consultant, Alpharetta, Georgia, USA), (Consultant, Doylestown, Pennsylvania, USA)
  • Formāts: 266 pages
  • Izdošanas datums: 01-Nov-2024
  • Izdevniecība: CRC Press Inc
  • Valoda: eng
  • ISBN-13: 9781040288863
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  • Formāts: 266 pages
  • Izdošanas datums: 01-Nov-2024
  • Izdevniecība: CRC Press Inc
  • Valoda: eng
  • ISBN-13: 9781040288863
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Lack of materials or goods to satisfy customer orders under current market conditions represents an extremely costly and important problem facing businesses today. This is a problem that companies have spent hundreds of millions of dollars trying to solve. This book introduces a new theory, 3C, which will solve these problems. The authors, experts from Lucent Technologies, discuss in detail the relationship between the 3Cs - capacity, commonality, and consumption - and how this relationship can revolutionize your business. You will learn how to: reduce overhead expense and improve shipping performance by using the business capacity as the basis for materials planning; reduce investments in inventory by using the commonality of components; obtain dramatic improvements in the lead time of customer orders by using the actual consumption of materials instead of inaccurate sales forecasts as the basis for purchasing. The new and exciting techniques based on 3C generate immediate business benefits, for example: executing the purchasing function with a new criteria and formulae that can eliminate material shortages and significantly improve shipping performance, sales volumes, operating expense and company image. 3C-A Proven Alternative to MRPII for Optimizing Supply Chain Performance gives you the knowledge and practical guidelines to better manage end-to-end Supply Chains and eliminate the expensive and annoying problem of material shortages that most businesses suffer.

Features
PART I: THE PROBLEM
The Materials Management Function Is in Trouble
3(12)
MRP Struggling to Support Modern Supply Chains
... The Way Things Used to Be
... But Then Trouble Began
... Attempts to Alleviate Trouble Began
... Have These Attempts Worked?
MRP at the Core of ERP
... More Trouble on the Horizon
The Root Cause of the Struggle
Minimum Requirements for a Solution
15(8)
Let the Customer Drive the System
The Material Supply Function
Elimination of Material Shortages
Elimination of Stock-Outs
Total Customer Service
PART II: THE SOLUTION
Reviewing and Learning from the Champions
23(34)
Aunt Anita Explaining 3C
Make to Stock (MTS) Case
Make to Order (MTO) Case
Jem's Toy Business
The Basics of the 3c Theory
57(30)
The Challenge
The 3C Solution
Capacity
Commonality
Consumption
The MRPII Solution
The Synchronized MRP Solution
Comparing Performances
Supply Chains Under 3c
87(18)
Supply Chains --- Definition
The 3C Approach to Engineering the Supply Chain
The First Step --- Characterization of the Chain
The Second Step --- Determining the Capacity of the Chain
The Third Step --- The Step Rule to Control Flow Through the Chain
The Fourth Step --- Optimization of the Chain
Supply Chains --- Optimization
Is 3C Always Better Than MRP?
105(26)
Varying Commonality and Forecast Accuracy
The 0% Forecast Accuracy Case
Under Perfect Commonality (Scenario FA 00:CIND 1.0)
Under Less Than Perfect Commonality (Scenario FA 00:CIND 0.8)
Under Remaining Less Than Perfect Commonality (Scenarios FA 00: CIND 0.6--0.0)
The 50 and 100% Forecast Accuracy Cases
Summary of Results --- Sensitivity Analyses to Forecast Accuracy at Different Levels of Commonality
Related to 3C
Related to MRP
Conclusions
Varying Sales Density
About Our Experimentation
The MRP Model
The 3C Model
High Commonality Case
Low Commonality Case
Complete Absence of Commonality
When MRP Is Equal to 3C
Bottom Line Impact
Summary of Results of Sensitivity Analyses to Sales Density
The 3C Path
131(16)
Background
Motivation
3C --- Discovered By Materials Management Practitioners, Not Information Technology People
Greenfield and Re-Engineering Principles
How Come No One Thought of This Before?
Integrated Pull Principles
3C --- The Customer Driven Supply Chain
3C Results
Delivery Performance and Turnover Ratio
Operating Expenses
What's next for 3C
The MRP Path
147(16)
Background
Assessment of Current Status
MRP Results
Cost/Benefit
Sales Forecasts
Material Shortages and Stock-Outs
Frozen Plans
MRP Tradeoffs
What's Next For MRP
No Change, No Gain
``Informitis''
Faster Computers
Next Century Strategies
163(16)
Full-Enterprise Models
Learning from Past Experiences
The Global Markets Brought an Urgency
Capitalizing on Your Local Experts' Minds
Complexity --- A Real Concern
Enterprise First & Clean Later (EF&CL)
Clean First & Enterprise Later (CF&EL)
Speed of Change
Divide and Conquer
Making the Decision
PART III: THE THEORY
The 3C Theory
179(34)
What it Is and What it Isn't. What it Does and What it Doesn't Do
Important 3C Mechanisms and Controls
To Manage Capacity
Bill of Materials (BOM)
Maximum Sales Rate (MSR)
Globally Combined Limitation
Table of Pulls (TOP)
To Make Full Use of Commonality
Commonality --- The Powerful Strategy
The 3C Rate Bill (RBILL) --- Simplest Case
The 3C Rate Bill (RBILL) --- Generic Case
Commonality Index (CIND)
Commonality Index (CIND) --- Example
To Manage Consumption
Time Between Purchases (TBP)
Quantity Maximum (Qmax) --- Definition
Quantity Zero (Q0) --- Definition
System Utilization (ψ)
To Continuously Optimize the Business
Marginal Contribution Rate (MCR)
Sales Density (δ)
New Practices, New Results
Lead Times of Customer Orders Reduced
Material Shortages Drastically Reduced
Summarizing the Main Differences
New Practical Rules --- Putting it All Together
Planning Cycles Become Obsolete
Continuous Planning
Reduction of Suppliers' Lead Times Loses Importance
Bureaucracy Out, Simplicity In (Operating Expenses Down)
Conclusions
Glossary 213(2)
Appendix A 215(6)
Appendix B 221(12)
Index 233


F Xavier Gurrola-Gal, Miguel Fernandez-Ranada; Enrique Lopez-Tello