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Resource Planning

Resource planning is a combination of materials and capac­ity planning driven by the MPS. The material plan relates to what raw materials, components and subassemblies are required to support the MPS. The capacity plan relates to the number of machine and labor hours required to support the same MPS, along with "Q" management. These plans rely on specific files of information in the data base, specifically; the bill of material, on hand and on order file for MRP and the routing file for CRP. The ability to successfully complete these plans depends directly on the levels of accuracy contained in these data base files.

Performance Measurement

Relates to the level of success achieved from this particular plan. Did we achieve the goals we planned for in each of the foregoing planning areas? Since Manufacturing is not a perfect science, a goal of 95% is considered laudable perfor­mance. Performance Measurement deals primarily with "results." The results achieved from the execution of the plans made. Measurements come after execution, how­ever, planning for a specific level of success comes as part of the planning premise and is done beforehand.

The next area of discussion involves the execution of the plans made during the planning cycle. The first given is that while the planning cycle is a monthly, by family, weekly by code time frame, the execution cycle is a daily, almost hourly time frame. Further, while the planning premise is MRP II, the execution premise will be JIT. Therefore, let us examine the concepts and principles of this philosophy and in somewhat more detail than the better known one of MRP II. What is JIT and why has it proven to be so successful? JIT is a philosophy that has as its primary premise the elimination of all waste. Waste can be recognized or eliminated as a part of the planning, but, reveals itself best during the execution process. JIT, therefore is an execution premise. What is "Waste" and where is it found? Waste is anything other than the minimal amount of materials, equipment, space, labor, energy and workers' time required to successfully produce a product. The elimination, of all waste in execution involves the incorporation of certain themes. There are: Continuous improvement, development of people, synchro­nization, simplicity, flexibility, visibility and teamwork.

The functions or areas of action that bring this elimination of waste to fruition in all areas are the following:


While the implementation of MRP II concepts and prin­ciples involve a considerable amount of education, the level and audience for JIT education is much broader and goes much deeper in the organization. Also, the presumption is that most manufacturers who utilize MRP II Systems to address the planning premise have already done that element of training. The switch to a JIT method of execution involves an entire new training scenario.


The concept of housekeeping involves much more than just keeping the place clean. It includes the old adage: "A place for everything and everything in its place," and that place is importan too. It also makes the first basic inroads into employee involvement.


Quality today is a given. It is the "ante" that you bring to the table in order to play in the game. What is important
here is the source of the quality. Under JIT, the source of quality is defined as the individual worker and his/her performance the first time a function is performed.

Setup Reduction

This function is directed at change over time and the ability or flexibility to go from product to product very quickly thereby improving production time and facility utilization. It primarily involves tooling, machine functions, and the modification of behavior in this area between engineering and operating personnel.

Process Flow

This function addresses the flow of work through all phases of the manufacturing process. This includes both the paperwork and material flow, the alignment of work cen­ters and just about everything that takes place from the time an order or demand is received, until it ships out the door of the factory. In a make-to-stock (DRP) environment, it would also include the distribution network.

To be Continued

For balance of this article, click on the below link:
Lean Manufacturing Articles and go to Series 02



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