Did We Throw Away CASH on Bad Software?

A Control System Perspectivethe real differentiator is the nature of the
system-type. A push system is a feed-forward
Software can be a real pain. But before your tearcontrol system where as a pull system is a
the rest of your hair out or call your softwarefeed-back control system.
vendor in frustration you might want to thinkFor those whom have spent time and energy
about some of the nasty little details that canimplementing a so-called closed loop MRP system,
cause the pain to begin with. The concepts belowand constantly frustrated by the results, you can
are not necessarily life changing. Yet manytake solace in that there is a big difference in
manufacturing specialists have ignored them andcalling something ‘closed-loop and actually
have needlessly suffered as a consequence.having a true feed-back system.
Recall that the first iteration of MRP in the late
First, let me be clear that software programmers60’s was followed very closely by
and providers are NOT evil people. In fact, I am‘revised’ versions called “Closed-Loop
amazed and quite proud of how dedicated theyMRP” in the early 70’s. It became
are and how much progress has been madeapparent that without some feedback mechanism
during the last three decades. Unfortunately, likebuilt into the system it was unworkable. By the
any automated system, there are inherent80’s the inclusion of several feedback
limitations to what these systems can and can'tmodules (i.e. shop floor control and input/output
do. The purpose of this article is to help youcontrol) was necessary to assure the planning side
understand that how you think about yourwas kept valid. And from Closed MRP a new
operations and organize your work is as much ofimproved methodology manufacturing resource
a factor for success of a softwareplanning (MRP II) emerged to dominate U.S.
implementation as what code you choose anddiscrete manufacturing in the 80’s and
how you choose to configure it.90’s.
Special Note: Up until now, I may have given youUnfortunately, the term ‘closed-loop’ was
the impression that ERP (Enterprise Resourcea bit of an exaggeration. Yes, the system
Planning) is synonymous with MRP (Materialtechnically has a feedback loop. It is self correcting
Requirements Planning) and MRP II (Manufacturingover time, but that’s the catch - how much
Resource Planning); although I realize that they aretime?
distinct. I will address this in more detail later.In an effective control system, the feedback has
Here is some background...to be time relevant. For example, in your
I once worked in a process-based companycar’s cruise control system, the feedback is
where several process engineers worked to keepvirtually ‘real-time’. As the car senses a
the complex process operational. Over lunch onehill, it adjusts quickly. Imagine, if the delay
day, the engineers were discussing the pros andbetween heading down hill and easing off the
cons of feed-forward and feed back controlthrottle was two minutes? Would you define this
systems. Not being a process engineer, theyas being “in control”?
were eager to rid me of my ignorance.Yet, this is exactly what happens in MRP II, the
A feed-forward control system uses pre-definedfeedback is simply not responsive to the real
inputs to manage the system. A good example ofworld changes that impact production.
a feed-forward system would be your typicalThus despite the implied ‘closed loop’
lawn sprinkler arrangement. You determine howname tag, MRP II is in practice a feed forward
much water you want, the time of day to startsystem, with occasionally tweaks after the fact.
the watering, which part of the lawn goes firstBack to the sprinkler analogy, if we do hit a rainy
etc. All in all a very nice set up, unless of course,period, we may adjust the sprinkler system
it rains. I’m sure many of us have seenaccordingly – but usually, a dollar short and a
sprinklers running in the rain and wondered why.day late.
That’s the pitfall of a feed forward system; itContrast that to a pull system. Here the system
assumes that certain operating conditions arefeedback is based on the material status itself
predictable.– if an upstream resource has insufficient
A feed back system, on the other hand, takesinventory, it automatically sends the signal to the
information of the existing process (oftendownstream operation to stop. In this case the
real-time) and adjusts inputs accordingly. Forinformation and material are one in the same. Pull
example, in the sprinkler system example above,is a true closed loop system since the feedback
if we placed a moisture sensor to detect themechanism is time relevant and the signal is very
current lawn moisture content, and programmedclear.
the sensor to allow water only below some setThe real difference between push and pull is not
point, we would than have a feed-back controlwhether we are building to ‘demand’ or
system. Feed-back systems are much moreto ‘forecast’. Rather the difference is
effective when the environment has severalbecause PUSH is inherently a feed-forward
variables. The downside is that feedback systemssystem. So, let’s be clear that the primary
tend to be more complex.differentiator between Push and Pull is not what
Recently, a client of mine was enthusiasticallytriggers the process, but what mechanism is used
espousing the virtues of moving away from ato control it. In MRP II, the ‘feedback’
traditional pull planning system (MRP)mechanism is generally unreliable or not timely and
and towards a Kanban-based Pull system. He saidthus is better described as a feed forward
that using actual customer demand, as opposedsystem. Pull systems (whether Kanban, or Drum
to the master production schedule, would be aBuffer Rope) are designed to adjust to immediate
blessing. But you may know the familiar story…conditions.
“this will be GRRR-E-A-T once some of theHere are a few things to keep in mind:
kinks are worked out for getting it in place!”- Purge and clean up any WIP that is physically on
But the devil of these things is ALWAYS in thethe floor and assure that the necessary MRP
details.transactions reflect this reality.
Working with clients over the years I hear this- If you have a resource that is at or near its
quite a bit. Push is passé while Pull is ‘in’capacity, use this resource to implement traditional
because Pull is synched to true demand. CheckingInput-Output control. The concept of Input-Output
the APICS dictionary we get: PUSHcontrol is valid, but is too complex if used in more
-“production of items at times required by athan a couple of key resources. Pick one or two
given schedule planned in advance” and PULL -strategic resources and use these to pace the
“the production of items only as demandedinputs into the system.
for use or to replace those taken for use”.- Do not release new orders into the system
The great debate between so-calledwithout validating that existing orders were
“Push” systems such as MRP andactually completed and out of the system.
“Pull” systems such as Kanban is old news.- Avoid the temptation of releasing any work that
Most practitioners by now would likely agree thatdoes not have all the needed material or resource
demand pull is superior to push in that lead-time istime, since this order will invariably end up stalled
reduced, work in progress (WIP) is reduced etc.in the process and add to confusion on the floor.
However, the actual reason for the overallKnowing that MRP is not a true closed loop
superiority, at least in terms of scheduling finalsystem can help guide improvement efforts. Here
assembly, is not what the common wisdom holds,is what you can do to improve your existing MRP:
it really has much less to do withThe real secret of Kanban as a scheduling tool is
‘demand’ as it does within its inherent ability to choke off release of new
‘feedback”.orders. This automatic ability of restricting WIP is
So, what does this have to do with Push and Pullthe real Trump card of Pull. And while MRP is not
planning systems?as robust in doing this, with some awareness of
Despite the conventional wisdom that Pull andthe importance of input-output control at least
Push is differentiated by the nature of demand,you will be heading in the right direction.