ABSTRACT
This case study describes a familiar situation in many manufacturing companies. It includes the breakdown of processes for managing production in periods of peak demand. The author was a manager brought in to solve the problem. His approach included a number of elements described in this book:
A focus on final demand rather than forecasts to sort out the chaos
Use of a “drumbeat” to get supply chain partners on the same page
The role of MRP/ERP in planning production requirements
Coordinating the efforts of supply chain partners
The semiconductor equipment industry periodically goes through wide swings in demand. These swings, ranging from 50 percent drops to 100 percent increases on the upturn can severely test any supply chain. This case describes the problems encountered by a component supplier
in this industry trying to keep up with the expansion phase of one of these cycles.
