ABSTRACT

In this chapter we will cover flow and FIFO instead of BOM levels, pull systems instead of MRP, long-term planning, short-term planning and execution, and gross explosions versus netting.

We have already addressed independent demand materials in the previous chapter. –is chapter presents a radically different answer to how to plan and control dependent demand material than the traditional approach supported by enterprise resource planning (ERP) systems. –is new approach revolves around basic Lean principles, such as making material flow, visual factory, and pull. Combined, they eliminate the need for material requirements planning (MRP) as a primary tool for controlling dependent demand material.