The Demand Driven Adaptive Enterprise. Carol Ptak

world. This oneway direction limits the ability to drive any meaningful adaptation and additionally, any attempt at periodic reconciliation is incredibly painful. For example, every MRP run results in massive cascading schedule changes as date and quantity changes at higher levels affect all connected lower level components. This is an effect called nervousness and leaves most companies in a huge dilemma about how often they run MRP and how much they can actually trust its output, causing planners to export data to spreadsheets in an attempt to find the truth.

      At a higher level, monthly S&OP updates create massive shifts at the beginning of every month that are then compounded by new MRP runs. Planning personnel struggle to stabilize the requirements picture and plans only to have the new version of the prescribed future reality dropped into their laps at the beginning of the next month. In convention, this makes tactical reconciliation more akin to a constant and repetitive cycle of tactical demolition and reconstruction; both are incredibly messy, wasteful, and cause great confusion.

      Convention and Flow-Based Operating Models