This article provides a "head-to-head" comparison of MRP against its
most prominent contender, the controversial 3C. Two intrinsically
different Material Management^phi-losophies are rigorously tested
and compared. Our benchmark method provides a "yardstick" that
could also be used to make further performance comparisons as other
alternatives emerge. Our presentation is based on actual facts and
experiences from real businesses and rigorous scientific analysis
techniques. We intend to provide proof and understanding of the
improvements that 3C claims are possible and under what
circumstances they can be obtained.
Field experts have addressed the need to revise and possibly
replace the current MM systems; the need for change is due to the
presence of ever-more-demanding customers and aggressive
competition. Until now, businesses were relatively safe because, in
a strange way, they all were equally affected by the same
unfortunate disadvantages; all facing the same problems,
suspiciously caused by the increasing inadequacy of the now
two-decades old MRP-based systems. Not until recently, however, had
anyone yet come up with a better alternative that would change the
status of things. This and previous publications attempt to explain
3C which, as of today, is the only serious alternative to MRP.
3C was created with the specific purpose of supporting the MM
function of the top-performing businesses that will survive the
tough economic battle of the 90's, while getting prepared to benefit
from the opportunities of the new century.
3C was designed and developed under a "green-field" framework in
which all decisions and actions were ruled by nothing but "good-old"
common business principles. First and foremost, the objective was to
define and implement an MM system that would give the business a
real competitive advantage through two dominant factors: "Total
Customer Service" and "rock-bottom Operating Cost." The objective
was accomplished by creating and working under an environment in
which challenging traditional wisdom was not only allowed, it was
encouraged! We also practised an almost fanatic strive for
excellence, simplicity, and transparency and eagerly tried to
design fool-proof and self-controlled processes. While almost
everyone else would label the framework as "motherhood and apple
pie," the developers of 3C chose to take the whole issue very
seriously. With full commitment, the framework elements were driven
and exercised at obsessively high radical extremes.
All of a sudden, the existence and justification of every single
traditional and institutionalized MM business function was being
questioned and meticulously scrutinized. The approach left no stone
unturned. Bold and revolutionary ideas flourished, many MM
functions and activities,
traditionally and commonly accepted as critical and necessary,
simply vanished as 3C evolved. 3C completely reengineered the MM
function; the current tedious and frustrating MRP activities are
replaced with a radically different type of work that is performed
with total focus on Customer Service, Quality and Cost Performance.
3C has now a sustained unquestionable successful 3 years record. We
share the latest facts in this paper.
To be Continued
For balance of this article, click on the below link:
Lean Manufacturing Articles and go to Series 01
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