The parameters nobody has revisited since go live
Lead time, safety stock, lot size, planning time fence, scrap factor. A handful of parameters per item, across an entire material master, and almost always a single default applied across the lot during implementation because there was no time to do better. The result is a material requirements run that orders too early for the fast movers and too late for the awkward ones. Planners then override it item by item, which works while the planner is there and stops working the week they take leave.
Correcting it is a data exercise before it is a configuration exercise. Actual supplier performance is measured from receipt history rather than asked for. Demand variability is calculated per item, so safety stock reflects how erratic the item really is instead of a flat allowance. Lot sizes are checked against changeover and against storage, because an economic order quantity that will not fit in the warehouse is not economic. Items are then segmented, so planner attention goes to what carries the value and the volatility.
Then the parameters need a review cycle with a named owner, because they decay quietly. A supplier who was reliable when the file was built may not be now. Demand shifts. A new product changes the mix and the shared tooling. We prefer a quarterly review driven by exception reporting, where the system nominates the items whose behaviour has moved outside the assumptions, over a full recalculation that consumes a month and is then never repeated.
- Lead times derived from receipt history rather than from the purchase contract
- Safety stock set per item from measured demand variability rather than a flat allowance
- Lot sizes checked against changeover cost and against physical storage
- Items segmented so planner attention follows value and volatility
- Exception driven parameter review with a named owner and a fixed cycle