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3c: A Proven Alternative to MRPII for Optimizing Supply Chain Performance

authors

Miguel Fernandez-Ranada
F Xavier Gurrola-Gal
Enrique Lopez-Tello

data

Product: book
ISBN-10: 1-57444-271-6
ISBN-13: 9781574442717
Publisher: CRC
Country:
Year: June 25, 1999
Edition: 1
Size: 15.95 x 23.60 x 2.03cm
Number of pages: 272
Weight: 499gr
Binding: hardback

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Product Description
Lack of materials or goods to satisfy customer orders under current market conditions represents an extremely costly and important problem facing businesses today. This is a problem that companies have spent hundreds of millions of dollars trying to solve. This book introduces a new theory, 3C, which will solve these problems. The authors, experts from Lucent Technologies, discuss in detail the relationship between the 3Cs – capacity, commonality, and consumption – and how this relationship can revolutionize your business. You will learn how to: reduce overhead expense and improve shipping performance by using the business capacity as the basis for materials planning; reduce investments in inventory by using the commonality of components; obtain dramatic improvements in the lead time of customer orders by using the actual consumption of materials instead of inaccurate sales forecasts as the basis for purchasing. The new and exciting techniques based on 3C generate immediate business benefits, for example: executing the purchasing function with a new criteria and formulae that can eliminate material shortages and significantly improve shipping performance, sales volumes, operating expense and company image.3C-A Proven Alternative to MRPII for Optimizing Supply Chain Performance gives you the knowledge and practical guidelines to better manage end-to-end Supply Chains and eliminate the expensive and annoying problem of material shortages that most businesses suffer.Features

reviews

Straight to the point 5 star rating

I strongly recommend this reading. This book proves wrong the idea of many industries and businesses that only with great amounts of money can the problem of shortages be solved. I like the simplicity of the 3C theory and will try to practice it in our business as much as we can. We certainly don't have the money to buy one of those highly expensive ERP solutions. This makes perfect sense for small businesses, like ours, that just want to have better customer service while keeping operating expenses low. Finally a solution that anyone can use to save money. I also like the easy going style of the book. It was fun to read.

Theory & Application of 3C 4 star rating

Having experienced some of 3C first hand, I can testify that the approach is valid and useful. However, like most new things, it takes time to digest and to translate the theory to practice. One size does not fit all. The good thing is that you don't need a lot of expensive »experts« to implement. You do need people with basic factory functional competence, common sense, open minds, and management willing to »stay the course.«

The 3C method is a fresh and intersting approach to age-old problems. Its initial success lies in the opportunity (excuse) to challenge the old ways and assumptions, with both suppliers and customers, using common sense approaches. This usually results in resetting customer expectations (a good thing!), to which 3C provides some ready answers.

However, one should be careful in not getting too wrapped up in the belief 3C is a »silver bullet« that will solve all their operting problems. In this regard, 3C is no different than the rest. Applied to a factory, without careful thought and involvement of all functional departments, 3C could be ruinous. However, this is just as if you gave a new teenage driver a book on driving, the keys to the family car, and wishing him well! 3C is powerful stuff!

Great book! 4 star rating

The book is definitely great for material management practitioner. It is easy to read, more like the style of the famous »The Goal«, and it triggers critical thinking, which one can use in the day in and day out operations! Highly recommend it!

No thanks, I'll keep my MRP … 3 star rating

. And now we have a new »Silver Bullet,« or at least that was what the authors would have you believe! But is 3C the greatest thing since sliced bread? To be sure, it does have something to offer. Unfortunately, a reading of this book will not answer all your questions because:

»Although not complicated, because of space and time constraints, we will leave all detailed explanations pertaining to implementation to future separate publications.« (p 62)

The technique that »3C« is to replace is called Material Requirements Planning (MRP). It is a technique for determining what supplies you will need in order to build what you have decided to build. It was NEVER meant to determine what you are capable of building, that was left to Capacity Requirements Planning (CRP). It was NEVER intended to predict what you should build, that was left to Master Scheduling (MPS). It was only designed to simplify the ordering / reordering process, by flagging the parts which must be given special consideration.

3C doesn't eliminate forecasting, it doesn't address the complexity of accounting for new product startup, and it doesn't work when each product has its own unique bottleneck. For example, assume that two products use aluminum sheet. Product A uses a shear to cut the aluminum into rectangles and product B uses a punch press to cut the aluminum into circles. These two cutting techniques are the respective bottlenecks for these two products. 3C would suggest that you stock enough aluminum sheet to provide for the product that consumes the most aluminum sheet, and ignore the other.

The authors unfairly criticize MRP by saying:

»The lack of success before 3C was due to the unfortunate fact that MRP methodologies are completely blind to commonality and consequently are unable to exploit it in any way.« (p 63)

But MPS, which drives MRP has powerful tools to »aggregate« demand. This means that common parts (say, lug-nuts) are ordered against a forecast for vehicles, long before the forecast is refined to include cars, trucks and SUVs. When an order for a red SUV is processed, 20 lug-nuts are available.

One piece of fancy footwork, is 3C's technique of setting a »Maximum Sales Rate« (MSR), and not »allowing« sales beyond that. I wonder if the customer who is refused would agree that represents »100% customer service!«

And last but not least, the website listed in the book has been closed and there currently are no »subsequent publications« available to fill the gaps left by this incomplete work. .

The answer is in front of us ! 5 star rating

In these days, companies struggle through costly software implementations: APS, decision support tools … The search for the »Holy Grail« in Supply Chain Management drives operations management decisions. Yet, the bottom line not always improves.

This book tells you: »Keep It Simple«. Use your money wisely and don't waste one more minute. The answer is right in front of your nose.

Its stile reminds you of Goldratt. It is aggressive, to the point, and easy to read. But most of all it tells you how.

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last update: 9/6/2010
URL: http://www.book-info.com/isbn/1-57444-271-6.htm