... 357
of an item as material is issued from stock, and increases the book inven-
tory as material is received into stock. The key concept here is that the
book record is updated together with the movement ... are often used to accomplish this. The purpose of
Rough-Cut Capacity Planning is to evaluate the plan prior to attempting
to implement it. Sometimes called Resour...
... recommend
against the deletion of tasks from any of the checklists. To do so
would weaken their ability to help monitor compliance with the
Proven Path.
Getting Ready 107
Q & A
WITH THE
A
UTHORS
T
OM
: ... knowing
how the business is being run today.
3. It will take a long time for the outsider to learn the products,
the processes, and the people—and it wil...
... is the people. It s people who’ll make it work.
Education is fundamental to making it happen. It s teaching the
people how to use the tools, and getting them to believe they can
work with the tools ... difficulties with the software
supplier, etc.).
The Torchbearer
The term torchbearer refers very specifically to that executive with
assigned top-level responsi...
... are:
• To accelerate and strengthen the change process begun in the
outsider-led classes.
• To equip these operating managers with the tools to reach the
critical mass.
• To develop detailed definitions ...
Initial Education 157
Operations Planning, Rough-Cut Capacity Planning, and master
scheduling. It s essential that they see how these tools will work
within the comp...
... on the shelf inside the
stockroom, within the counting tolerance. Don’t go to the pilot and
cutover steps without it.
There are a few more things to consider about counting toler-
ances. The ... down the bins, writing down
numbers, and putting them into the computer. What happens to in-
ventory accuracy? It drops. What happens to accountability? There’s
not much left...
... the rest of the items are cut over to ERP.
The pilot must be successful to go to cutover, and visible success
supports behavior change. Therefore, make sure the other planning
folks can see the ... can see the success.
C
UTOVER
Once the live pilot is working well and the users are comfortable with
it, it s time to cut over the rest of the items onto the...
... people use
the latter term when referring to themselves shipping to their cus-
tomers, while they’ll use VMI for the process of their suppliers ship-
ping to them. With either term, the process ...
I
T
E
M
H
I
G
H
L
O
W
Low Criticality
High Cost
III
Low Criticality
Low Cost
I
High Criticality
High Cost
IV
High Criticality
Low Cost
PURCHASED ITEM CHARACTERISTICS
CRITICALITY OF...
... means running the business with the ERP set of
tools, which tends not to change.
However, business conditions do change. It s necessary periodi-
cally to match up the tools (ERP) to today’s business ... companies with real time connections. How-
ever, without the knowledge and time offered via ERP, the high
speed of the Internet can simply raise expectations with limi...
... 329
D
EMAND
M
ANAGEMENT
Forecasting/Sales Planning
Forecasting/sales planning is the process of predicting what items
the sales department expects to sell and the specific tasks they are go-
ing to take to hit the forecast. The sales ... opera-
tion replaces the need to have expensive inventory scattered around
the country.
In either case, the company has the oppo...
... adding resources to the critical path tasks
.
Critical path: the longest path through the project network; the sequence of activities that defines the mini-
mum time required to complete the project.
CRUD ... identified by the BABOK; focuses on
collaborating with the technical and quality assurance teams to ensure that the solution built satisfies the
requirements...