Precisely Wrong
Why Conventional Planning Systems Fail
Carol Ptak and Chad Smith
INDUSTRIAL PRESS, INC.
Industrial Press, Inc.
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Author: Carol Ptak and Chad Smith
Title: Precisely Wrong: Why Conventional Planning Systems Fail
Library of Congress Control Number: 2017954824
© by Industrial Press, Inc.
All rights reserved. Published in 2018.
Printed in the United States of America.
ISBN (print): 978-0-8311-3618-5
ISBN (ePUB): 978-0-8311-9450-5
ISBN (eMOBI): 978-0-8311-9451-2
ISBN (ePDF): 978-0-8311-9449-9
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Copy Editor: Judy Duguid
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Contents
About the Demand Driven Institute
The Current Planning Challenge
The Objective and History of Planning
The Need for Flow—The True Purpose of Planning
The Rise of Complexity and Volatility
How Conventional Planning Works
The Conventional Planning Schema
Determining Quantity Requirements
Determining Timing Requirements
The Perfect Plan
Executing Perfection—The User Experience
Distribution Requirements Planning
Connecting MRP and DRP
Summary
CHAPTER 3
The Core Problem of the Bullwhip
Distortions to Relevant Information
Distortions to Relevant Materials
Batching Policies—Amplifying Distortions
The Failure of Safety Stock
Summarizing the Challenge
PART 2
A New Direction
