AMERICAN PRODUCTION & INVENTORY CONTROL SOCIETY, INC

AP\CS

Twenty-ninth Annual International Conference ProceedingsOctober 20-24,1986 • St. Louis, Missouri

Table of Contents

Manufacturing Resource Planning

Preventive Maintenance Planning with an MRP II SystemRoland H. Raeker, CFPIM 1

Handshake Versus Foxhole ManagementDavid W. Buker, CFPIM 4

Microcomputer Systems for Small Manufacturers

Scott Hamilton 7

Fifth Generation Manufacturing Resource Planning:The Coming Revolution in Manufacturing LogisticsJohn J. Kanet, CFPIM 10

Conference Room Pilot:A Powerful Implementation and Training Tool

William E. Pendleton, CFPIMJohn P. Balderson, CFPIM 13

Applying MRP II to Remanufacturing: A Case StudyDavid A. Bentley, CFPIM, CSP

Stanley R. Rothstein, CPIMR. L Witt 18

Why Don't We Call It Sales and Operations Planning,Not Production Planning?F. John Sari, CFPIM 22

MRP Implementation in a Cosmetics Company:A Case Study of Renee Laboratories

Ellis J. Camp, CPIM 25

MRP II Evaluation and Selection: A Case Study at VolkswagenJames C. UsherCarl L Huett, CPIM 29

Large System Benefits for the Small Manufacturing Environment

Steven M. Boeder, CPIM 32

Production Planning: Key to Manufacturing StabilityArnold E. Rowland, CFPIM 37

Maintenance Can Be Managed: A Practical RX

David G. Jahnig, PE, CPIM

Lawrence P. Ettkin, CFPIM 40

After MRP II, What Next?

George R. lemmolo, CFPIM 44

MRP II in the Aerospace/Defense Industry:Will It Survive the Next Five Years?

Ronald N. Sullivan, CFPIM 49

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A Manufacturing Planning and Control System Simulator

Using Spreadsheet ProgramsStephen A. De Lurgio, Ph.D., CFPIM

Jiguang Zhao 53

Is Your Inventory in Between Plants?

Paul Linthorst, CFPIM 57

MRP II Education and Training: A Case StudyEdward J. BishopEarle J. Craigie, CFPIM 60

Master Planning and Demand Management

Just-in-Time Demand

Richard C. Ling, CFPIM 64

The Multiplier Effect

Jack B.\Harrison, CFPIM 66

Why Not Include Service Parts When \bu Master Schedule?

William X Jones, CFPIM 69\

A Fresh Look at Linking Plans with Schedules:

Tying Master Scheduling to Production PlanningLloyd Andreas, CFPIM 72

A Step Beyond: Advanced Techniques for Master SchedulingA. J. Muegel, CFPIMR.M.Ryan 77

The Role of Sales and Marketing in Planning and SchedulingJohn R. Dougherty, CFPIM

Christopher Gray, CFPIM 80

Master Schedule: Key to Success

Robert H. Murphy, CFPIM 84

Forgotten Importance of Simpler Forecasting TechniquesVince K. Gulati, CPIMStephen H. Knowlton, CPA, CMC 88

Master Planning Simulation: Playing the "What If Game

Samuel S. Sulser, CPIM 91

Master Scheduling and Final Assembly Scheduling:Whafs the Difference?

Michael G. Tincher, CPIM 94

777e New APICS "Practical Forecasting" Training AidMartin R Edelman, CMC, CPIM 97

77?e Role of P&IC in Product Discontinuance

Andru M. Peters 99

A Day in the Life of the Master Scheduler

Frederick W. Formon, CPIM 103

How to Master Production Schedule in a JIT Environment

Jeff Moran, CPIM 106

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Materials Requirements Planning

Why Listen to a Class "B" Company?Bob Fiedler, CPIM

Ray Elwell, CPIM ,111

Creation of a Material Planning Function to Support MRPImplementation: A Case StudyWilliam R. Muns, CPIM 115

MRP for Smaller Businesses:

A Case Study of Successful ImplementationFrank W. Swanson, CPIM 118

MRP II and JIT Make a Tough, Competitive Combination

John J. Civerolo 120

Project Management: A Plan for Implementation Success

Edward V. Lieggi, Sr., CFPIM 125

The Systems of the Future for the Factories of the Future

Thomsa H. Goodrich, CPIM

John R. Lischefska, CPIM 128

Increase Your Profits by Managing Your Constraints

Donald M. Birk, CFPIM 132

Organizing the Team: A Win or Lose PropositionJoseph La Monica 137

Why Is MRP So Difficult in Aerospace/Defense?Rob Pfunder, CFPIM 140

Push vs. Pull: Which is Best? Let's Eliminate the Confusion

Andre J. Martin 145

Two MRP Turnaround Case Studies

Kirk L. Prather, CFPIM 148

MRP/D: The Defense Industry's Key to Higher Production OutputCarleton F. Kilmer, CFPIMAlexander Lengyel, CPIM 151

"Micro" MRP l\ User Audit Results: Is It Working?HorstJ. Paul 156

MRP by Contract

Odell Richardson, CPIM 159

MRP II in a Custom Fabrication Environment

William E. Lamberty, CPIM 162

Material Requirements Planning; Aerospace/Job ShopChip Long 166

Capacity Management

The Major Issues of Capacity Requirements PlanningNeville P. May, FBPICS, FIPC 170

Capacity Planning and Execution:The Other Half of the EquationMel Nelson, CPIM 173

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Capacity Management: An Integrated ApproachStephen R Machon, Jr., CPIMEarl C. Young, CPIM 178

Capacity Management: Managing Today While

Planning for the Future

Frederick L Thome, CFPIM 182

Tooling: The Frontier of Capacity ManagementMark Kupferberg, CFPIM 186

Rough-Cut Capacity Planning Using SpreadsheetsJohn H. Blackstone, Jr., CFPIM 190

Operation Sequencing: Scheduling for On-Time DeliveryRichard J. Bruun, CPIM 192

Operations Sequencing: A Key to Shbp Floor Control

Harold E. Searl, CPIM 194

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Production Activity Control

Flat Bills of Material with Production Activity Control

Terry Lunn, CFPIM 197

Factory Focus Through Data Collection

Alphedor J. Perreault, CPIM 201

Beyond MRP: The Coming Revolution on Shop Floor Is CAM

Jonathan J. Golovin 206

Shop Floor Control: The Unfulfilled Promise

George J. Miller, CPIM 210

Production Activity Control Basics: The Key to PaybackPaul B. Lavallee, CFPIM 216

An Alternative to the Exact Determination of Queue Time

Randy Eisenbach, CFPIM 222

Identifying the Principles of Effective Production Activity Control

Steven A. Melnyk, Ph.D., CPIM

Phillip L. Carter, Ph.D., CFPIM 227

Bar Codes a Concept Whose Time Has Come:

Or Look Out the Japanese Have Discovered Bar Codes

Robert W. Brooks, CPIM 233

Inventory Management

How to Set Up an Effective Inventory Accuracy ProgramVinnie Chopra, CPIM 238

The Limits of Cycle CountingJan B. Young, CFPIM 241

X American Production & Inventory Control Society

Synchronized Inventory: Survival Made Profitable

Donald J. Mayer, CFPIM ....244

AS/RS Implementation at a Large Defense Contractor

Richard L Umble 247

What Are the First Steps to 95% Inventory Accuracy?Chester N. Childers, CPIM 252

Microcomputer-Based Systems: They're for Big Companies Too

Philip L. Allor, CFPIM 255

Bar Code Applications in MRO Stores

Rick Handley, CPIM 258

Inventory: Asset or Liability?Mike Hunter, CFPIM 261

Reducing Inventories for a Company in a Depressed IndustryRichard W. White 266

Controlling Floor Stock: An Approach That Works

George E. Murdock, CFPIM 268

Meeting the Materials Management ChallengeWithin the Context of Government ContractingSusan Keim, CPIM 271

Determining Appropriate Inventory Levels

Jeff South, CFPIM 274

Up Your Accuracy: Using Control-Group Cycle CountingRandall J. Roman, CFPIM 278

The Buyer/Planner PartnershipGeorge N. Wells, CPIM 282

Cycle Count Your Work-in-Process:

Closing the Loop on Data IntegrityAl Eckerdt, CPIM ...

284

Material Control and the Small Repetitive Manufacturer

C. Burt Caldwell, CPIM 287

JUST-IN-TlME I

The Direct Route to JIT

Ed Heard, CFPIM 290

Low Volume/High Mix JIT

William A. Sandras, Jr., CFPIM 295

Just-inTime Manufacturing: An Update on Japan 1986

Kenneth J. McGuire, CFPIM 300

Management Policy Changes: Musts for JIT

Julie A. Heard 304

Measuring Labor Effectiveness in a Just-in-Time Environment

Ken Wantuck, CFPIM 310

Toyota Versus Nissan: '

Two Approaches to Resource Planning and SchedulingWalter E. Goddard 313

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Implementing Just-in-Time (JIT):Opportunities, Concerns, and a Strategy for Success

Preston W. Blevins, FBPICS, CPIM 318

Lessons From the JIT Journey: A Case StudyMichael S. Spencer, CPIM 326

Supplying Just-in-Time to NUMMI: A Case StudyJohn W. Kinsey, CFPIM 331

How to Gain a Competitive Edge That Is Second to None

R. Dave Garwood

Darryl Landvater 335

Demand-Pull Principles and Practice

Roger B. Brooks, CFPIMCharlene Adair 338

The Factory in 1990: Will It Be Dark and Empty?John F. Proud, CFPIM 344

JIT Applications in the Job Shop Environment

James P. Kelleher, CFPIM 348

One Day at a Time:

Implementing JIT in a High Tech Company, A Case StudyV. G. Lippa, CFPIM 352

The JIT Starter Kit for Design EngineeringDavid A. Waliszewski, CPIM 358

JUST-IN-TlME II

From Traditional Manufacturing to JIT

Nicholas M. Testa, Jr., CFPIM 361

JIT: Just in Time or Just Inviting Trouble

David L. Baer, CPIM 366

JIT: Not Just for the Factory!Randall J. Benson, CFPIM 370

Material Handling and bead Time Reduction:

Common Threads Through MRP II, JIT, and CIM

Tom Bechtel, CPIM 375

Vendors as Just-in-Time Partners

Kenneth J. Howser, PE, CPIM 378

SMED Equals Higher ProductivityMichael J. Stickler, CPIM 381

Performance Measurements:The Key to Continuous ImprovementsMichael P. Novitsky, CPIM 386

Overcoming Cultural Barriers to JIT

Ernest C. Huge, CFPIM

Jeffrey W. Sipes, CPIM 389

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Distribution/Logistics and Warehousing

Distribution Management in the 1980s

Alan Dunn, CPIM 394

Installing a "Push" Distribution SystemPeter A. Sawchuck, CFPIM 399

MRP/DRP: Who Is driving Whom?Paul C. Hanson, CPIM 402

How DRP Fits with MPS and MRP -

Lloyd A. Buchholz, CPIM 404

Warehouse Consolidation: A Positive ExperienceJohn A. Gibert, CPIMFrank I. Epps 407

The Path of Flow Dynamics of Network Distribution

Robert L. VanDeMark 412

Stockroom Productivity Using a Manual SystemRoger R Buckley, CPIM 416

Inventory Accuracy: A People PerspectiveMichael P. Clark, CPIM - 418

Computer Integrated Manufacturing

Long-Range Systems Planning for CIM

Jim Mottern, CPIM 421

Technological Options for Computer Integrated ManufacturingWilliam a Lee, Ph.D., CFPIM 424

CIM: APICS' New Frontier?

Woodrow W. Chamberlain,...

429

The Role of Expert System Technology in P&IC

Larry Mannis, CFPIMJohn Morris, CPIM 433

Synchronized Manufacturing: The CAM of the CIM FlywheelRobert B. Vollum, CFPIM 438

Ifs Interfacing, Not Integrating!Joseph L Aiello, CPIM 443

Managing Integrated Manufacturing TechnologiesGus Berger, CPIM 446

FMS/CIM and Work Force ManagementCharles G. Andrew, CFPIM 451

CIM: Alchemy or Chemistry?James A. Jacobs, CPIM 457

Operational Strategy IntegrationOwen R. Burger 459

! Schedule Execution in the Factory of the Future:

Simple or Complex?James W. Branam, CPIM 462

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Move Over Mainframe: Make Way for the Micro

Lester S. ShindelmanCarter C. Utzig 467

GAD Systems for Small Design DepartmentsC. H. "Pete" Link

.472

The Design and Implementation of Flexible

Manufacturing SystemsDonald J. Agostino, CPIM 475

MRP Megatrends: Is CIM Creating a Need for MRP II?

Wilford E. Dunn

Eugene V. Lemberger 478

New Guidelines for Selecting and JustifyingFactory Automation ProjectsLawrence T. Michaels, CPIM 483

Operations Management

Integratedvurchasing Systems: A Realitya J. Bastow, CPM, CPIM 486

PDQ: Purchasing to Support Manufacturing, or"Where's the Req?"John R Flavin, CPIMThomas H. Fuller, Jr., CFPIM

....490

MRP II Won't Schedule the Factory of the Future

Hal Mather, CFPIM.... 495

The New Ballgame: JIT PurchasingBob Parmelee, CPIM 498

"For Sale": The Plant That Did Not Work Together^'

.

Patrick J. Delaney, CPIM 504

Dealing with Management Styles:From Recognition to Task AccomplishmentDennis Fisher, CPIM 508

Controlling Overhead: The Hidden Cost

William G. Savage, CFPIM 512

Improvement Through Performance Measurement

James K. Wiggins, CPIM 514

How to Get Started with Quality ManagementJeffrey H. Cooper, CPIM 517

Total Quality Control:Key Ingredient in the Successful JIT RecipeRobert E. Olsen, CPIM 519

The Role Total Quality Control Plays in Our Business

Michael W. Gozzo, CPIM 522

How to Really Create and Maintain Accurate Bills of MaterialsDonald N. Frank, CPIM .. 524

American Production & Inventory Control Society

On Target: Overhead Cost

Raymond L Martin, Ph.D., CPM, CPIM 527

Just-in-Time: A Boon or Boondoggle in PurchasingRobert A. Stahl, CPIM 530

Productivity: Not Only the Responsibility of the Production Une

Donald J. Green, CFPIM 533

Planning Ain't the Same as Doing: Doing Is What Pays the Bills

Barry E. Blood, CPIM 538

Functional Interfaces,

Classification Coding for Group Technologyand Standardization

John N. Petroff, CPIM 540

Closed Loop Engineering Change Control

Craig Phillips, CFPIM 545

Product Designs Initiate Excess and Obsolete InventoryTom Little 549

Management's Role (Responsibility) in ForecastingThomas C. Detscher 552

Forecasting Fundamentals

Dolores A. Brosky, CPIM 554

MRP II and Sales Order ManagementMary Kay Wells, CPIM 559

Customer Service by Objectives: The Road to Excellence

Larry "Jake" Wolfe, CPIM 563

Implementing a Cost Management System in a

Japanese Automotive SupplierJames A. Jonas, CFPIM 565

Financial and Manufacturing Management:Partners in ProfitabilityAllan R. Kauth, CPIM 570

Computer Integrated Cost Accounting:New Concepts, New Methods

Robert A. Bonsack, CPIM 572

Incorporating Customer Service in the Corporate Culture

Carolyn Farr, CPIMSarah Wenzel, CPIM 576

Building and Maintaining a Good Client/Vendor RelationshipJack O'Connor, CDP, CPIMRick Schwieter 580

Sales and Materials: Natural Enemies or Allies

Wilson B. Grab 583

Manufacturing Accounting System for the Factory of the Future

Mehran Sepehri, Ph.D., CPIM 588

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uosr Accounting: Flexibility Required to Support Just-in-Time

Laymond Harrier, CRM ..59,

The Cost Accountant's Role in an MRP II ImplementationRobert J. Sellani, CPIM .

596

Executive Management Issues

What I Learned to Use in Materials Management from

Teaching Quality Improvement Courses

Peter W. Langford, CFPIM 599

Manufacturing: A Team Sport . » .

Richard W. Malko, CFPIM 602

Management—Art or Science: The TheoryEliyahu iyi. Goldratt 604

Managerrient—Art or Science: A Case StudyRobert E,W CFPIM 605

Manufacturing Strategy: A Full Partner in Business PlanningLewis J. Soloway, CPIM 606

Why We Let the Users Select the System: A Case StudyPaul N. Funk, CPIM 610

An Executive Perspective: Planning Today for the

.Information Needs of the Future

Larry J. ShunAlton C. Todd, CFPIM 616

MRP, JIT, CIM: Choosing the "Right" StrategyTerry R. Schultz, CFPIM 620

Manufacturing Strategy: The Next Frontier

Thomas F. Wallace 623

Case Study: Application of JIT to Total Business

S. S. Cherukuri, CPIMR. A. Judd 627

Change Performance Measures First

Steven A. Souza, CFPIM 631

New Horizons for Production and Inventory Control

Henry H. Jordan, CMC, CFPIM 634

Manufacturing Excellence: Pulling the Pieces TogetherAnn Marucheck, Ph.D.Ronald Pannesi, Ph.D., CPIMSarah Wenzel, CPIM 637

MRP for Competitive AdvantageThomas H. Slaight, CPIM 64.1

Productivity Through PeopleRickTitone 643

American Production & Inventory Control Society

Professional Development

How to Develop and Implement a SuccessfulEducation/Training ProgramDale A. Smith, CPIM 645

Training for the 90s: JIT, TQC, CIM

Peter L. Grieco, Jr. 648

ChangemastersE. M. "Mac" Barnett, CFPIM 651

innovation in Education

Scott A. Levin, CPIM 654

How to GeUthe Most Out of Video Education

Paul M. Elliott, CPIM 658

Dealing with Organizational Conflict

Gary A. Landis, CPIM . 663

Professional Development: A Bi-Directional ApproachE J. Russo 667

Educating for MRP II Systems Installation

Larry Gildea, CPIM 670

Special Presentations

Making the Stripes Earn Their Way:How to Implement Integrated Bar CodingEugene E Baker, CMC 673

New Developments in Forecasting:A Live Video Demonstration

Richard P., Artes, CPIM

Leroy D. Reinhart, CFPIM 686

Is a Computer Necessary?Gerhard Plenert, CPIM 690

Special Presentations

JIT Update: A Japan Study Mission ReportJ. Thomas Brown, CFPIM 694

Professional Logistics Education and Training in an

Electronics/Appliances Multinational

Hans E. van Goor, CPIM 697

The "P' in Productivity is PeopleL 0. Smith, CPIM 701

Lead Time: The Root of All Evils

Warwick R. Johnson, CFPIM 704

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